l Equity Research l

5 March 2014

Indonesia l Emerging Companies

Sido Muncul

NOT RATED
Standard Chartered Equity Research does not cover this company
and nothing herein should be interpreted to be a recommendation
or price target with respect to the company.

NON-COVERED COMPANY VISIT NOTE

PRICE as at 4 March 2014

IDR 885.00
Key points
Sido Muncul is the market leader in Indonesias traditional
herbal medicines market. Capricorn Indonesia Consult
estimates that the companys Tolak Angin brand had a 75%
market share by sales in the herbal cold remedy segment in
2012.

Bloomberg code:

Est. free float (%)

19% Net debt (cash) (IDR bn)

The company is also the leading producer of a powdered

energy drink, under the Kuku Bima brand, with a 43%
market share by sales in 2012, according to IMS.

Established

1975 Historical EPS (IDR)

Listed

2013 EPS 3-year CAGR (%)

NA

NA EPS 7-year CAGR (%)

NA

Sido Munculs revenue grew at a CAGR of 13% over 201012. Management is aiming to maintain revenue growth at
15-16% p.a. over next three years and is planning to deepen
the penetration of its products in modern trade.

Auditors, since

SIDO IJ PER, historical (x)

Mkt cap (USD mn)

12m range (IDR)
3m value traded (USD mn)
No. of shares (m)

NM ROE (%)

Secondary placement
Year-end

Stephen Hui
Stephen.Hui@sc.com
+65 6596 8514

-9
(112)
26

37

Dec DPS 3-year CAGR (%)

NA

Hidayat family 81%

Major shareholder
Source: Annual report

Source: FactSet

Alvin.Witirto@sc.com
+65 6596 8530

30

BDO Historical DPS (IDR)

Why we visited Sido Muncul

Sido Muncul plans to more than double the monthly production
capacity of Tolak Angin to 150mn sachets in 2016 from 70mn
sachets in 2013. Management is also planning to triple the
contribution of modern trade to c.15% of revenue in 2016, from
c.5% in 2012. The company was recently listed on the Indonesia
Stock Exchange in December 2013. It is the first herbal medicine
producer to be listed in Indonesia.

Alvin Witirto

10.3

15,000 Net gearing (%)

Share price performance (Bt)

Read-across to other companies

Within the regional herbal medicines sector, Eu Yan Sang trades
at a lower 2012 PER of 21x than Sido Munculs 34x. Eu Yan is the
leading herbal medicine player in ASEAN and Hong Kong.

4.2

580-895 PBR, historical (x)

What Sido Muncul does (and why)

Sido Muncul is the leading player in traditional herbal medicine
(Jamu) in Indonesia, best known for its Tolak Angin brand of
herbal remedy for cold. Capricorn estimates that the company had
a 75% market share in the herbal cold remedy segment in 2012.
The company is also the market leader in powdered energy drinks
with a 43% market share by sales in 2012, according to IMS.

Sido Muncul

JAKARTA COMPOSITE INDEX (Rebased)

950
900
850
800
750
700
650
Dec-13

Mar-14

Revenue breakdown by segment

3,000

Energy drink

Herbal medicine

Health drinks

Others

Candy & drinks

2,500

231

2,000
IDR bn

Valuations and share price performance

Sido Muncul shares rose 53% since their listing in December
2013, outperforming the Indonesia pharmaceutical sector and the
JCI index, which rose 10% and 19% during the same period. The
stock has traded at a historical PER of 34.4x, compared with 32.5x
for its peers in the Indonesian consumer health sector. Currently,
the street is not covering the stock.

34.6

1,158 Yield, historical (%)

140
1,500

265

587

784

1,202

1,339

1,265

2010

2011

2012

483

1,000
500
0

Source: Company

Important disclosures can be found in the Disclosures Appendix

All rights reserved. Standard Chartered Bank 2014

http://research.standardchartered.com

Equity Research l Sido Muncul

Analyst visit note

Background. Sido Muncul began producing traditional herbal
remedies in 1940. It was established by Mrs. Rahkmat Sulistio
as a home industry. The Hidayat family remains the
controlling shareholder of the company with a combined
ownership interest of 81%. The largest shareholder is Desy
Sulistio Hidayat (40%), the matriarch of the Hidayat family,
followed by her children, Irwan Hidayat, Sofyan Hidayat,
Johan Hidayat, David Hidayat and Sandra Linata Hidayat with
8.1% ownership stakes each.

Candies & drinks (11% of revenue, 5% of gross profit)

Industry overview. During 2008-12, Indonesians herbal

medicine consumption grew at a CAGR of 34% by volume
and 16% by sales, according to Capricorns estimates.
Euromonitor estimates that the herbal medicines sales could
grow at a CAGR of 10% to USD 800mn in 2017 from USD
500mn in 2012.

Health drinks & others (3% of revenue, 5% of gross profit)

Business segments. The company has 200 products across

five categories herbal medicines, energy drinks, health
drinks, candies and supplements. The herbal medicines and
energy drinks categories accounted for c.84% of revenue in
2012.

The segment has second highest gross profit margin at

57%. Management expects this segment to deliver revenue
growth of 20-25% p.a. in the next three years.

Distribution. Sido Muncul distributes its products through

160,000 wholesalers covering 76 cities in Indonesia.
Management believes that the eastern Indonesian market still
has a significant potential from a distribution standpoint.
Herbal medicines (33% of 2012 revenue; 56% of gross
profit)
Sido Munculs flagship product in this segment is Tolak
Angin, which accounts for 85% of this segments revenue.
This segment is the companys most-profitable business,
given its 65% gross profit margin, compared with the
consolidated businesss gross profit margin of 38%.
Tolak Angin is a household name in Indonesia. It was
frequently featured as a top brand in the herbal medicines
segment by Frontier Consulting Group, Markeeters and
MarkPlus Insight during 2011-12.
Management sees this segment as Sido Munculs growth
driver over the next few years. It expects revenue from this
segment to increase by 20% p.a. in the next three years.

Sido Muncul produces instant functional coffee products,

such as ginseng coffee and ginger coffee, under the Kuku
Bima and Sido Muncul brands, respectively.
The segment, which also includes candy products, carries
a 16% gross profit margin. Management expects revenue
from this segment to increase by 10-15% p.a. in the next
three years.

The segment caters to Sido Munculs portfolio of instant

herbal drink products, which are largely sold in powdered
sachets. Several key brands under this segment are Jahe
Wangi, Alang Sari, Kunyit Asama and Beras Kencur. These
products are targeted largely at the mid-segment.

The segment also includes around 50 SKU of herbal

supplement products. Management said these products are
sold through drug store chains, and are targeted at the midto-upper segment.
Strong growth outlook. Management expects to maintain
Sido Munculs revenue growth at 15-16% p.a. over 2014-15,
driven by volume growth in the herbal medicines segment and
improved growth performance of its energy drink segment. It
believes that higher penetration into the modern trade
channel, which accounted for only c.5% of total revenue in
2012, will also sustain the double-digit revenue growth.
Management said it aims for the earnings growth to be at
least in line with revenue growth over the same period.
Exposure to imported raw materials. Sido Munculs herbal
medicine products largely rely on locally sourced raw material,
and only 10-15% of COGS is attributable to imported raw
material. However, its energy drink business is much more
dependent on imported raw materials, which account for
c.90% of COGS. Management said this is partly the reason
for its lower gross profit margin.

The companys flagship brand within this segment is its

Kuku Bima energy drink, which is targeted at the low
income segment. Management said the products
positioning is also reflected in the greater reliance on the
traditional trade channel in distributing this product.

Expansion plan and capex. Management said it has set a

capex budget of IDR 219bn for 2014 and IDR 137bn for 2015.
It is planning to double the production capacity for the flagship
product, Tolak Angin, to 140-150mn sachets per month in
2016. Management estimates its 10-hectare factory to cost
IDR 196bn. In addition, it also plans to expand its herb
extraction plant and warehouse facilities.

Although this segment was the largest contributor of

revenue in 2012 with 43%, it contributed only 35% of gross
profit, given its low gross profit margin of 25%. This is partly
due to lower price points of the products in this segment.

Net cash position. Sido Muncul had a net cash of IDR 112bn
in 2012. Management expects the company to remain in net
cash position in 2014, as its capex could be fully funded with
the IPO proceeds.

Management expects the segments revenue growth to be

flat in 2014, until it introduces ready-to-drink products that
are gaining popularity in the market.

Dividend policy. Sido Muncul maintains a dividend policy of

distributing at least 20% of net profit.

Energy drinks (53% of revenue, 35% of gross profit)

5 March 2014

Equity Research l Sido Muncul

Valuation
Figure 1: Peer comparison
3M avg
Price
Market value
Target Price
cap traded
Name

Ticker

Rating

(LCY) (LCY)

(USD
mn)

Sido Muncul

SIDO IJ

NR

890

1,151

(USD
mn)

Last

2 year
EPS

PER (x)

Div.
Yield ROCE
Price /
PEG sales EV/EBITDA
(%)
(%)

FYE FY0 FY1 FY2 CAGR 2 years

- 12/12 34.4

NA

FY0 FY0 FY1 FY2 FY1

FY1

NA

NA

NA

4.5 24.4 NA NA

NA

NA

Pharmaceutical & consumer health

Kalbe Farma

KLBF IJ

NR

1,430

5,780

7.5 12/12 38.6 34.6 29.2

15%

1.9

4.0 27.1 23.3 19.6

1.4

27.5

Tempo Scan

TSPC IJ

NR

3,345

1,298

0.2 12/12 24.0 21.8 16.7

20%

0.9

1.8 16.7 13.6 10.6

2.7

20.4

Kimia Farma

KAEF IJ

NR

735

352

NA

NA

NA

0.8 12.8 NA NA

NA

14.9

27.5 28.2 23.0

17%

1.4

2.2 18.9 18.4 15.1

2.0

20.9

0.3 12/13 19.9

Average

NA

Herbal medicine
Eu Yan Sang

EYSAN SP OP

0.85

294

0.2 06/13 20.7 17.3 15.6

15%

1.0

1.1 15.0 9.8 8.7

3.1

12.3

Hai-O

HAIO MK

NR

2.47

148

0.1 04/13 10.4 10.7

9.7

3%

2.9

1.7 6.0 5.8 5.4

5.1

20.4

Power Root

PWRT MK

NR

1.88

173

0.2 02/13 35.6 17.1

NA

NA

NA

1.9 19.5 11.8 NA

3.2

18.3

NR

11.42

1,221

2.3 12/12 29.3 43.1 26.0

6%

4.2

26.4 61.5 34.7 15.6

0.0

32.4

24.0 22.1 17.1

8%

2.7

7.8 25.5 15.5 9.9

2.9

20.9

Beijing Tong Ren Tang 8138 HK

1.03

Average
Note: Share prices as of 4 March 2013; Bloomberg estimates for NR stocks
Source: Bloomberg, Standard Chartered Research estimates

Key charts
Figure 2: Traditional herbal medicine sales and volume
Volume (RHS)

14

13

10

8.5

9.2

10.2

20

80%

15

7.2

100%

10

Volume (mn kg)

MArket size (IDR tn)

12

25

2
0

% market share by sales

Market size

Figure 3: Market share breakdown

0
2008

2009

2010

2011

Sido Muncul

Others

25%
57%

60%
40%

75%
43%

20%
0%

2012

Traditional herbal medicine

Energy drink

Source: Capricorn Indonesia Consult

Source: Capricorn Indonesia Consult, IMS ITMA

Figure 4: Revenue and gross profit breakdown 2012

Figure 5: Gross profit margin 2012

Energy drink

Herbal medicine

100%
265

Candy & drinks

Health drinks

Others

40%
20%

1,265
321

0%

5 March 2014

50%
40%
25%

30%

16%

20%

10%
0%

Revenue (IDR bn)

Source: Company

% gross profit margin

% Total

60%

513

57%

60%

80%
784

65%

70%

41

Gross profit (IDR bn)

Herbal medicine

Health drinks

Energy drink

Candy & drinks

Source: Company

Equity Research l Sido Muncul

Trend analysis and three-year financial data

Growth

Income statement (IDR bn)

Sales growth & earnings growth

Sales growth

Adj. Earnings growth

50%
40%
30%
20%
10%
0%
2011

2012

Year end: Dec

Sales revenue
Gross profit
EBITDA
Depreciation & amortisation
EBIT
Net interest (expense) / income
Others
Income tax
PAT
Minorities
Net income

2010
1,867
686
360
(24)
335
3
1
(102)
237
(0)
237

2011
2,198
878
468
(29)
439
11
5
(115)
340
(0)
340

2012
2,392
921
542
(38)
504
5
4
(126)
388
(0)
388

2010
335
(24)
(98)
(1,068)
(855)
(68)
(923)
(96)
(4)
10
(97)
1,258
149

2011
439
(29)
(18)
(65)
327
(143)
183
(111)
(1)
19
(160)
(87)
(156)

2012
504
(38)
(45)
(442)
(20)
4
(16)
(181)
(1)
43
(651)
1,095
289

2010
217
0
57
172
167
277
890
99
1
236
209
544
346
0
346
890

2011
307
0
326
206
208
122
1,169
155
1
253
224
633
535
0
535
1,169

2012
442
0
802
236
261
411
2,151
193
299
0
355
846
1,305
0
1,305
2,151

2010
16
NA.
37
(68)
23
15,000
68%
41%
-5%
-395%
-12%
41%
(120.6)

2011
23
43%
11
5
36
15,000
63%
43%
-5%
-380%
25%
32%
(41.4)

2012
26
14%
37
(13)
87
15,000
30%
24%
-8%
-481%
-9%
19%
(97.0)

Margins
Cash flow (IDR bn)

EBIT margin & sales growth

EBIT margin

22%

Net profit margin

20%
18%
16%
14%
12%
10%
2010

2011

2012

Cash flow
Op Cash Flow Generated & Capex
IDR bn

After-tax operational cash flow

Capex

400
200
0
-200
-400
-600
-800
-1,000
2010

Balance sheet (IDR bn)

2011

2012

Balance sheet
Net debt (cash) / equity
60%

Net debt/equity (%)

40%
20%
0%
-20%
2009

2010

2011

2012

Returns
ROE & ROCE
ROE

Post-tax ROCE

90%
70%
50%
30%
10%
2010
Source: Bloomberg

5 March 2014

2011

Year end: Dec

Operating profit
Depreciation & amortisation
Working capital
Others
Operational cash flow
Tax paid
After-tax operational cash flow
Capex
Net interest
Debt
Dividends
Others
Net flow

2012

Year end: Dec

Tangible assets
Other LT assets
Stocks
Debtors
Cash and liquid assets
Other ST assets
Total Assets
Current creditors
Current borrowings
Long-term borrowings
Others
Total liabilities
Shareholders funds
Minority interests
Equity
Total capital employed

Key data & ratio

Year end: Dec
EPS (IDR)
Chg %
DPS (IDR)
CFPS (IDR)
BVPS (IDR)
Wtd avg shares (m)
ROE (%)
Post-tax ROCE (%)
Capex/sales (%)
Capex/depreciation (%)
Net debt/equity (%)
Total debt/Total capital (%)
Net interest cover (x)
Source: Company, Bloomberg

Equity Research l Sido Muncul

Disclosures appendix
The information and opinions in this report were prepared by Standard Chartered Bank (Hong Kong) Limited, Standard Chartered Bank Singapore Branch, Standard
Chartered Securities (India) Limited, Standard Chartered Securities Korea Limited and/or one or more of its affiliates (together with its group of companies, SCB)
and the research analyst(s) named in this report. THIS RESEARCH HAS NOT BEEN PRODUCED IN THE UNITED STATES.
Analyst Certification Disclosure: The research analyst or analysts responsible for the content of this research report certify that: (1) the views expressed and
attributed to the research analyst or analysts in the research report accurately reflect their personal opinion(s) about the subject securities and issuers and/or other
subject matter as appropriate; and (2) no part of his or her compensation was, is or will be directly or indirectly related to the specific recommendations or views
contained in this research report. On a general basis, the efficacy of recommendations is a factor in the performance appraisals of analysts.
Where disclosure date appears below, this means the day prior to the report date. All share prices quoted are the closing price for the business day prior to the
date of the report, unless otherwise stated.

Recommendation Distribution and Investment Banking Relationships

% of covered companies
currently assigned this rating

% of companies assigned this rating with which SCB has provided

investment banking services over the past 12 months

OUTPERFORM

53.2%

14.5%

IN-LINE

35.2%

12.8%

UNDERPERFORM
As of 31 December 2013

11.6%

8.3%

Research Recommendation
Terminology
OUTPERFORM (OP)
IN-LINE (IL)
UNDERPERFORM (UP)

Definitions
The total return on the security is expected to outperform the relevant market index by 5% or more over the next 12 months
The total return on the security is not expected to outperform or underperform the relevant market index by 5% or more over the next
12 months
The total return on the security is expected to underperform the relevant market index by 5% or more over the next 12 months

SCB uses an investment horizon of 12 months for its price targets.

Additional information, including disclosures, with respect to any securities referred to herein will be available upon request. Requests should be sent to
scer@sc.com.
Global Disclaimer: Standard Chartered Bank and/or its affiliates ("SCB) makes no representation or warranty of any kind, express, implied or statutory regarding
this document or any information contained or referred to in the document. The information in this document is provided for information purposes only. It does not
constitute any offer, recommendation or solicitation to any person to enter into any transaction or adopt any hedging, trading or investment strategy, nor does it
constitute any prediction of likely future movements in rates or prices or represent that any such future movements will not exceed those shown in any illustration.
The stated price of the securities mentioned herein, if any, is as of the date indicated and is not any representation that any transaction can be effected at this price.
While all reasonable care has been taken in preparing this document, no responsibility or liability is accepted for errors of fact or for any opinion expressed herein.
The contents of this document may not be suitable for all investors as it has not been prepared with regard to the specific investment objectives or financial situation
of any particular person. Any investments discussed may not be suitable for all investors. Users of this document should seek professional advice regarding the
appropriateness of investing in any securities, financial instruments or investment strategies referred to in this document and should understand that statements
regarding future prospects may not be realised. Opinions, forecasts, assumptions, estimates, derived valuations, projections, and price target(s), if any, contained in
this document are as of the date indicated and are subject to change at any time without prior notice. Our recommendations are under constant review. The value
and income of any of the securities or financial instruments mentioned in this document can fall as well as rise and an investor may get back less than invested.
Future returns are not guaranteed, and a loss of original capital may be incurred. Foreign-currency denominated securities and financial instruments are subject to
fluctuation in exchange rates that could have a positive or adverse effect on the value, price or income of such securities and financial instruments. Past
performance is not indicative of comparable future results and no representation or warranty is made regarding future performance. While we endeavour to update
on a reasonable basis the information and opinions contained herein, there may be regulatory, compliance or other reasons that prevent us from doing so.
Accordingly, information may be available to us which is not reflected in this material, and we may have acted upon or used the information prior to or immediately
following its publication. SCB is not a legal or tax adviser, and is not purporting to provide legal or tax advice. Independe nt legal and/or tax advice should be sought
for any queries relating to the legal or tax implications of any investment. SCB, and/or a connected company, may have a position in any of the securities,
instruments or currencies mentioned in this document. SCB and/or any member of the SCB group of companies or its respective officers, directors, employee benefit
programmes or employees, including persons involved in the preparation or issuance of this document may at any time, to the extent permitted by applicable law
and/or regulation, be long or short any securities or financial instruments referred to in this document and on the website or have a material interest in any such
securities or related investment, or may be the only market maker in relation to such investments, or provide, or have provid ed advice, investment banking or other
services, to issuers of such investments. SCB has in place policies and procedures and physical information walls between its Research Department and differing
public and private business functions to help ensure confidential information, including inside information is not disclosed unless in line with its policies and
procedures and the rules of its regulators. Data, opinions and other information appearing herein may have been obtained from public sources. SCB makes no
representation or warranty as to the accuracy or completeness of such information obtained from public sources. You are advised to make your own independent
judgment (with the advice of your professional advisers as necessary) with respect to any matter contained herein and not rel y on this document as the basis for
making any trading, hedging or investment decision. SCB accepts no liability and will not be liable for any loss or damage arising directly or indirectly (including
special, incidental, consequential, punitive or exemplary damages) from use of this document, howsoever arising, and including any loss, damage or expense arising
from, but not limited to, any defect, error, imperfection, fault, mistake or inaccuracy with this document, its contents or associated services, or due to any
unavailability of the document or any part thereof or any contents or associated services. This material is for the use of intended recipients only and in any
jurisdiction in which distribution to private/retail customers would require registration or licensing of the distributor which the distributor does not currently have, this
document is intended solely for distribution to professional and institutional investors.
Country-Specific Disclosures - If you are receiving this document in any of the countries listed below, please note the following:
United Kingdom and European Economic Area: SCB is authorised in the United Kingdom by the Prudential Regulation Authority and regulated by the Financial
Conduct Authority and the Prudential Regulation Authority. This communication is not directed at Retail Clients in the European Economic Area as defined by
Directive 2004/39/EC. Nothing in this document constitutes a personal recommendation or investment advice as defined by Directive 2004/39/EC.
Australia: The Australian Financial Services Licence for Standard Chartered Bank is Licence No: 246833 with the following Australian Registered Business Number
(ARBN: 097571778). Australian investors should note that this document was prepared for wholesale clients only within the meaning of section 761G of the
Australian Corporations Act 2001 (Act) and the Corporations Regulations. This document is not directed at persons who are retail clients as defined in the
Australian Corporations Act 2001. Brazil: SCB disclosures pursuant to the Securities and Exchange Commission of Brazil (CVM) Instruction 483/10: This research
has not been produced in Brazil. The report has been prepared by the research analyst(s) in an autonomous and independent way, including in relation to SCB. THE
SECURITIES MENTIONED IN THIS DOCUMENT HAVE NOT BEEN AND WILL NOT BE REGISTERED PURSUANT TO THE REQUIREMENTS OF THE
5 March 2014

Equity Research l Sido Muncul

SECURITIES AND EXCHANGE COMMISSION OF BRAZIL AND MAY NOT BE OFFERED OR SOLD IN BRAZIL EXCEPT PURSUANT TO AN APPLICABLE
EXEMPTION FROM THE REGISTRATION REQUIREMENTS AND IN COMPLIANCE WITH THE SECURITIES LAWS OF BRAZIL. Germany: In Germany, this
document is being distributed by Standard Chartered Bank Germany Branch which is also regulated by the Bundesanstalt fr Finanzdienstleistungsaufsicht (BaFin).
Hong Kong: This document, except for any portion advising on or facilitating any decision on futures contracts trading, is being distributed in Hong Kong by, and is
attributable to, Standard Chartered Bank (Hong Kong) Limited which is regulated by the Hong Kong Monetary Authority. India: This document is being distributed in
India by Standard Chartered Securities (India) Limited which is a SEBI registered broker and a member of the Bombay Stock Exchange Limited and The National
Stock Exchange of India Limited. Korea: This document is being distributed in Korea by, and is attributable to, Standard Chartered Securities Korea Limited which is
regulated by the Financial Supervisory Service. Malaysia: This document is being distributed in Malaysia by Standard Chartered Bank Malaysia Berhad only to
institutional investors or corporate customers. Recipients in Malaysia should contact Standard Chartered Bank Malaysia Berhad in relation to any matters arising
from, or in connection with, this document. Singapore: This document is being distributed in Singapore by Standard Chartered Bank Singapore Branch only to
accredited investors, expert investors or institutional investors, as defined in the Securities and Futures Act, Chapter 289 of Singapore. Recipients in Singapore
should contact Standard Chartered Bank Singapore Branch in relation to any matters arising from, or in connection with, this document. South Africa: SCB is
licensed as a Financial Services Provider in terms of Section 8 of the Financial Advisory and Intermediary Services Act 37 of 2002. SCB is a Registered Credit
Provider in terms of the National Credit Act 34 of 2005 under registration number NCRCP4. United States: Except for any documents relating to foreign exchange,
FX or global FX, Rates or Commodities, distribution of this document in the United States or to US persons is intended to be solely to major institutional investors as
defined in Rule 15a-6(a)(2) under the US Securities Act of 1934. All US persons that receive this document by their acceptance thereof represent and agree that
they are a major institutional investor and understand the risks involved in executing transactions in securities. Any US recipient of this document wanting additional
information or to effect any transaction in any security or financial instrument mentioned herein, must do so by contacting a registered representative of Standard
Chartered Securities (North America) Inc., 1095 Avenue of the Americas, New York, N.Y. 10036, US, tel + 1 212 667 0700. WE DO NOT OFFER OR SELL
SECURITIES TO U.S. PERSONS UNLESS EITHER (A) THOSE SECURITIES ARE REGISTERED FOR SALE WITH THE U.S. SECURITIES AND EXCHANGE
COMMISSION AND WITH ALL APPROPRIATE U.S. STATE AUTHORITIES; OR (B) THE SECURITIES OR THE SPECIFIC TRANSACTION QUALIFY FOR AN
EXEMPTION UNDER THE U.S. FEDERAL AND STATE SECURITIES LAWS NOR DO WE OFFER OR SELL SECURITIES TO U.S. PERSONS UNLESS (i) WE,
OUR AFFILIATED COMPANY AND THE APPROPRIATE PERSONNEL ARE PROPERLY REGISTERED OR LICENSED TO CONDUCT BUSINESS; OR (ii) WE,
OUR AFFILIATED COMPANY AND THE APPROPRIATE PERSONNEL QUALIFY FOR EXEMPTIONS UNDER APPLICABLE U.S. FEDERAL AND STATE LAWS.
Copyright 2014 Standard Chartered Bank and its affiliates. All rights reserved. All copyrights subsisting and arising out of all materials, text, articles and
information contained herein is the property of Standard Chartered Bank and/or its affiliates, and may not be reproduced, redistributed, amended, modified, adapted,
transmitted in any form, or translated in any way without the prior written permission of Standard Chartered Bank.

Click here to download the Standard Chartered Research app for iPad

5 March 2014