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Management Discussion & Analysis

Glenmark Team Across The Globe

Global Environment

The overall global growth is projected to reach 3.9% in 2018 and 2019, in line with the forecast of the April 2018 World Economic Outlook (WEO), but the expansion is becoming less even, and risks to the outlook are mounting. The rate of expansion appears to have peaked in some major economies and growth has become less synchronised. In the United States, near-term momentum is strengthening in line with the April WEO forecast, and the US dollar has appreciated. Growth projections have been revised down for the Euro area, Japan, and the United Kingdom, reflecting negative surprises to activity in early 2018. Among emerging market and developing economies, growth prospects are also becoming more uneven, amid rising oil prices, higher yields in the United States, escalating trade tensions, and market pressures on the currencies of some economies with weaker fundamentals. India continues to remain as the fastest growing major economy in the world as per the Central Statistics Organisation (CSO) and International Monetary Fund (IMF). India's GDP is estimated to have increased by 6.6% in 2017-18 and is expected to grow at 7.3% in 2018-19.

Global Pharma Scenario

After a modest recovery on the back of multiple headwinds, the overall outlook for global pharmaceutical market is expected to improve considerably going forward. As per various research published by Deloitte and EvaluatePharma, the global prescription drug sales are forecast to grow at an annual compound rate of 6.5% over the next five years and worldwide sales are expected to be USD 1.06 Tn by the year 2022. Multiple factors are fueling the significantly improved outlook in the next five years.

Many research-based pharmaceutical companies are turning the tide with growth in revenue and profits, although such growth is still lower than historical levels witnessed by these companies. Consolidation amongst the larger players in the generics markets and greater focus on developing novel, cutting-edge therapies which can ultimately garner a premium in the market will be two key factors that would support the ongoing recovery in investments in the sector. While some companies may still face challenges in the near future, the industry is also expected to expand its reach further particularly in emerging markets. Due to proliferating economies and strong growth rates, many emerging market countries are now ranked amongst the Top 20 pharmaceutical markets in the world. However, some of these markets could come under some pricing pressures due to various government interventions to bring down overall healthcare expenses.

According to World Industry Report by IBISWorld, global generic drug sales are expected to make up 29.2% of the total pharmaceutical sales worldwide in 2022, compared to approximately 28% in 2017. Generic medicines already account for more than 80% (by volume) of all drugs dispensed across the world, and increased focus on bringing down healthcare expenditures would continue to help drive growth in generics markets.

Innovation is expected to be a key driver for growth in worldwide pharmaceutical markets, and R&D investments are expected to grow at a rate higher than historical levels. According to EvaluatePharma, total R&D spend is expected to reach USD 181 Bn in 2022, compared to USD 156.7 Bn in 2016. Unlike the past, smaller niche companies focused on development of new drugs in areas of high unmet medical need are driving significant innovation. However bringing a drug to the market remains an expensive proposition, and this remains a major industry challenge. To counter this, large pharmaceutical companies and small niche R&D-focused organisations are partnering to overcome these challenges. Furthermore, there has been an increase in the number of approvals which also helps companies bring their innovation more quickly to the market.

Today many novel biologics are already approved for various therapy areas and indications, and such treatment options are predicted to comprise more that 25%-30% of the global pharmaceutical market by 2022. An emerging growth story has been development of biosimilars, potentially leading to another upcoming patent cliff. Access to biosimilars has increased significantly, especially in markets like Europe and emerging economies. Moreover, regulatory agencies have also evolved to ensure biosimilars gain approval and are adopted by the medical community, while ensuring efficacy and safety of patients remains the key focus area.

Over the next few years, emerging new technologies are expected to create a transformative opportunity for the global pharmaceutical industry. Companies will look to build an organisation capable of adapting to imbibe such technologies and create greater competitive advantage for themselves while also ensuring patients continue to get access to high quality treatment options.

Financial Summary
Material Consumed and Purchase of Traded Goods

Cost of material consumed including finished goods purchased were at ₹ 30,385.67 Mn in FY 2017- 18 as against ₹ 26,143.26 Mn in FY 2016-17 and as a percentage to sale of products was at 33.87% in FY 2017-18 as against 29.15% in FY 2016-17.

Employee Cost

Employee cost was at ₹ 18,718.41 Mn in FY 2017-18 as against ₹ 16,408.06 Mn in FY 2016-17, an increase of 14.08% mainly attributed to increase in heads count due to expansion of business and inflationary trends prevailing in the markets in which the Company operates.

Other Expenses

Other expenses includes manufacturing overheads, selling and marketing expenses, administrative and general expenses and R&D expenses.

Other expenses decreased to ₹ 25,772.89 Mn in FY 2017-18 as against ₹ 28,938.49 Mn in FY 2016-17, a decrease of 10.94%.

Finance Costs

Interest expenses increased to ₹ 2,855.67 Mn in FY 2017-18 as against ₹ 2,373.18 Mn in FY 2016-17.

Profit After Tax

Profit after tax for FY 2017-18 was at ₹ 8,038.70 Mn as against FY 2016-17 was at ₹ 11,087.53 Mn.


The Board has recommended a final dividend of 200% (` 2 per equity share of ` 1 each) on the equity share capital as at March 31, 2018 subject to the approval of shareholders.

Equity Capital

There is no movement in equity share capital during the FY 2017-18.

Trade Payables

Trade payables increased to ₹ 18,697.84 Mn in FY 2017-18 from ₹ 17,432.21 Mn in FY 2016-17.

Current Tax Liabilities

Current tax liabilities increased to ₹ 284.26 Mn in FY 2017-18 from ₹ 256.55 Mn in FY 2016-17.

Short-term Borrowings

Short term borrowings increased to ₹ 2,950.44 Mn in FY 2017-18 from ₹ 1,871.89 Mn in FY 2016-17.

Other Current liabilities

Other current liabilities increased to ` 3,579.74 Mn in FY 2017-18 from ` 3,329.30 Mn in FY 2016-17.

Trade Receivables (Net)

Trade receivables decreased to ₹ 23,318.07 Mn in FY 2017-18 from ₹ 24,043.20 Mn in FY 2016-17.


Inventory decreased to ₹ 20,305.85 Mn in FY 2017-18 from ₹ 21,390.50 Mn in FY 2016-17.

Other Current Assets

Other current assets increased to ` 10,059.67 Mn in FY 2017-18 from ₹ 9,154.89 Mn in FY 2016-17.

Property, plant and equipment (Excluding CWIP)

The gross block of property, plant and equipment increased to ₹ 28,167.58 Mn in FY 2017-18 from ₹ 25,607.68 Mn in FY 2016-17.

Other Intangible Assets (Excluding CWIP and Goodwill)

The gross block of other intangible assets increased to ₹ 24,990.85 Mn in FY 2017-18 from ₹ 21,612.57 Mn in FY 2016-17.

Business Environment
India Formulations

During the year under review, the India Formulations (IF) business performed well, registering revenue of ₹ 25,142.52 Mn (USD 390.47 Mn) as against ₹ 23,037.77 Mn (USD 344 Mn), recording a growth of 9.14%.

As per IQVIA MAT March 2018, Glenmark's India business is ranked 13th with a market share of 2.29%. Glenmark is the 2nd fastest growing company as per MAT March 2018 (among the Top 20 companies).

This growth has been driven by a strong performance of leading brands, resulting in market share improvement across therapeutic categories.

Growth across Therapeutic Categories

The India business strengthened itself in the following segments with growth in market share from IQVIA MAT March 2017 to MAT March 2018 respectively:

  • Derma therapy market share increased from 9.17% to 9.20%
  • Respiratory therapy market share rose from 4.52% to 4.75%
  • Cardiac therapy market share increased from 3.97% to 4.26%
Brands in IPM Top 300

Glenmark has eight brands among the Top 300 Brands in the Indian Pharmaceutical Market:

  • Glenmark's brand Telma (Telmisartan) secured its position among the Top 50 brands in IPM and is currently ranked 46th
  • Telma-H (Telmisartan Hydrochloride) ranked 57 in IPM, closing a value growth of 12.75% over the last year
  • Glenmark's brands Candid (IPM rank 115), Candid-B (IPM rank 128), Ascoril+ (IPM rank 138), Telma-AM (IPM rank 152) and Ascoril-LS (IPM rank 157) are some of the other brands among the Top 200 in the IPM 300 brands league

Glenmark Nashik Team

In the dermatology therapy, Glenmark launched
  • Nourkrin® Woman tablets, through an exclusive licensing agreement with the Denmarkheadquartered firm, Pharma Medico. Nourkrin® Woman contains Marilex®, a unique and proprietary scientific formula, rich in specific Proteoglycans (PG) essential for hair follicle development, which helps in normalising, supporting and maintaining the hair growth cycle
  • ADALY, a biosimilar of Adalimumab, under a licensing agreement with the Zydus group for the treatment of Plaque Psoriasis and Rheumatoid Arthritis. ADALY is a TNF inhibiting, anti-inflammatory biologic that binds to tumor necrosis factor (TNFalpha) and reduces inflammatory response. Globally, Adalimumab is the number one selling pharmaceutical product
  • Apremilast, an advanced oral and safe treatment for Psoriasis
  • La Shield Spray
In respiratory therapy, Glenmark launched
  • Nebzmart G - India's first Glycopyrronium Nebulizing Solution for moderate to severe COPD
  • Bye llergy, a brand of Bepotastine Besilate , which is a Japanese molecule introduced for the first time in India for perennial allergic rhinitis
Glenmark also launched
  • AKYNZEO®, an oral fixed combination of netupitant 300 mg and palonosetron 0.5 mg in capsule form, is used for prevention of Chemotherapyinduced Nausea and Vomiting (CINV). To introduce AKYNZEO® in India and Nepal, Glenmark has an exclusive licensing agreement with Helsinn Group, a Swiss pharmaceutical group focused on building quality cancer care products
  • X-Met G, a fixed dose combination of Glimepiride 1/2 mg + Metformin 500 SR for the treatment of Type 2 Diabetes Mellitus
  • Kwitz® Nicotine Gum, a Nicotine Replacement Therapy (NRT) in India to help smokers in smoking cessation
  • Mumfer Max (Ferric Pyrophosphate and combination), technologically advanced iron with Nanonized Liposomal technology
Marketing Initiatives

Taking a step beyond product promotion, Glenmark has taken various initiatives to enhance the knowledge of doctors in different therapy areas and conducted several awareness programmes for patient education.

Doctor and Patient Education Programmes
  • The Glenmark Enabled Expert Exchange (GEEX) continued to gain a good response. This is a unique platform for the fraternity of dermatologists in India to share their clinical acumen, expertise and experience while managing patients of acne in day to day clinical practice
  • Glenmark actively conducts patient education and detection camps for disorders and diseases impacting large population. More than 5 lakh patients were screened for hypertension at 24,000 Hypertension Detection Squad camps. More than 1.5 lakh patients were screened for determining their Bone Mineral Density (BMD) and awareness was created to build better bone movement
  • Glenmark has been providing service to pregnant patients by conducting 500 Hemoglobin camps and screening minimum 10-15 patients per camp every month. During the year, 4,500 camps were organised and more than 5,000 patients were tested for hemoglobin
  • On World Diabetes Day, 89 walkathons were organised across India to encourage healthy living and over 4,500 patients participated. During the year, 211 camps were conducted across India and 11,500 patients were screened for diabetes
India - Glenmark Consumer Care Business

Glenmark forayed into the overthe- counter (OTC) space a few years ago. In a short time, the Company has built a sizeable OTC business driven by its three major brands operating in the consumer space now - Candid, VWash Plus and Scalpe+. Candid Dusting Powder, the 30-year-old flagship brand of the Company is now a leading product even in the OTC business.

Through the introduction of its brand VWash Plus, Glenmark has successfully created the female intimate hygiene category in India. The Company further expanded its product offering through the introduction of VWash Wow Sanitary Napkins. VWash's extension in to the ₹ 3,500 Cr sanitary napkin category further propels the brand towards its vision of 'Owning the Intimate Hygiene Space'.

Glenmark Goa Team

Glenmark India Formulation's Leadership Team

VWash WOW has been very well received across the sales channels within three months of launch.

Over a short period of time, Glenmark's Consumer Care business has grown its topline in excess of ₹ 150 Cr. As per IQVIA MAT March 2018, Glenmark's leading brand Candid Dusting Powder recorded 18.1% value growth and market share of about 56%. Scalpe+ Anti Dandruff Shampoo is also ranked No. 1 in its operating market with a market share of 15% as per MAT March 2018. The VWash Plus brand recorded value growth of 24% and a market share of 42% for FY18 across all sales channels.

USA Formulations

During the year, Glenmark Pharmaceuticals Inc., USA registered a revenue of ₹ 32,075.72 Mn (USD 498.14 Mn) from the sale of finished dosage formulations for FY18 as against ` 37,006.63 Mn (USD 552.58 Mn) for the previous year, recording a decrease of 13.32%.

In FY18, Glenmark was granted approval of 21 Abbreviated New Drug Applications (ANDA),comprising 18 final approvals and three tentative approvals. Notable approvals include Aprepitant Capsules USP, Atomoxetine Capsules USP, Nitroglycerin Sublingual Tablets and Propafenone Hydrochloride Extended-Release Capsules USP. The Company filed a total of 16 ANDA applications with the US FDA throughout the fiscal year.

On December 12, 2016, Glenmark announced the availability of Ezetimibe, the first and only generic version of ZETIA® (Merck) in the US for the treatment of high cholesterol. The availability of Ezetimibe is the result of a licensing partnership with Par Pharmaceutical, an Endo International plc operating company. Glenmark and its partner, Endo, were entitled to 180 days of generic drug exclusivity for Ezetimibe as provided for under Section 505(j)(5)(B)(iv) of the FD&C Act.

Products Launched In The US In Fy18

Glenmark's marketing portfolio through March 31, 2018 consists of 131 generic products authorised for distribution in the US market

Glenmark expects to begin commercial supplies of oral solid products manufactured at the Monroe facility from H2 FY19

Glenmark's Clinical Operations Team In The US

The exclusivity period for the generic version of ZETIA® ended in early June 2017.

During the second quarter, Glenmark entered into a development, license, manufacture and commercial supply agreement with Cyndea Pharma S.L., granting exclusive rights to use their technology for developing generic, soft-gelatin capsule formulations of certain pharmaceutical products. Under this agreement, Glenmark receives exclusive rights to the US and Canada markets for these soft-gelatin formulations in exchange for sharing development costs and profits from future sales. In addition, the agreement provides for the companies to add further soft-gelatin product candidates for development and commercialisation, as new branded, soft-gelatin, capsule-based drug products become available in the marketplace.

During the fourth quarter, Glenmark announced an exclusive agreement with Sam Chun Dang Pharm. Co. Ltd. (SCD) to develop, manufacture and market a portfolio of ophthalmic products in the US and Canada. Under this agreement, these products will be developed and manufactured by SCD in South Korea. Glenmark will seek all market authorisations and commercialise the products in North America. The Company targets to file around 6 ANDAs beginning in the first half of 2019 for the licensed SCD ophthalmic products. According to IQVIA sales figures, the US brand sales for the 6 products was approximately USD 1.7 Bn for CY17.

Glenmark's manufacturing facility in the US was commissioned in 2014 at Monroe Corporate Center, North Carolina. The facility received its first supplemental Abbreviated New Drug Application (sANDA) approval from the US FDA in June 2018. The approval covers: Atovaquone and Proguanil Hydrochloride Tablets, a generic version of GlaxoSmithKline's Malarone® Tablets. The Company expects to begin commercial supplies of oral solid products from H2 FY19. Glenmark also plans to file injectables and nebulizers from the Monroe facility during FY19.

Glenmark's marketing portfolio through March 31, 2018 consists of 131 generic products authorised for distribution in the US market. The Company currently has 62 applications pending in various stages of the approval process with the US FDA, of which 28 are Paragraph IV applications.

Pipeline as on August 6, 2018

1. All marketed products and any products authorised for distribution where Glenmark is the ANDA holder

2. Only those filings that have been accepted by the FDA are included

Note: Market Value (by product) is defined by the total sales generated for products in the GPI portfolio [source: IQVIA NSP June 2018]

Rest of the World

Glenmark's revenue from the ROW (Russia/CIS, Africa and Asia) region for the year under review was ₹ 10,992.24 Mn (USD 170.71 Mn) as against ₹ 9,887.86 Mn (USD 147.65 Mn) in the previous year, recording a 11.17%. increase.

Russia/ CIS Region

According to IQVIA MAT March 2018 data, Glenmark Russia shows de-growth of -5.7% in value versus overall market growth of 3.3% and ranks 41 per MAT March 2018 in the retail segment of the Russian pharmaceutical market. Lower than market growth is attributed to decline in demand for two key products: Ascoril, affected due to a low cough and cold season, and Oflomil nail lacquer, impacted by competitor activity and launch of new amorolfine generics.

As a result of the strong position of Glenmark Russia in the dermatology segment (retail), the Company continues to secure its position in this segment and ranks among the Top 10 derma companies present in the market, with MAT March 2018 rank being 9. Overall, Glenmark Russia today boasts of a strong product range of derma products covering most nosologies of the segment.

Glenmark Ukraine Team

In the respiratory space, Glenmark continues to secure a strong position and ranks 4 per MAT March 2018 amongst the companies present on the expectorants market (retail segment) of the local pharmaceutical market. Key markets across the CIS region such as Ukraine and Kazakhstan recorded high double-digit secondary sales growth for the Company.

The advancement of respiratory portfolio is one of the key focuses at the moment, with new products expected to be launched and portfolio to be expanded. Momate Rhino Advance, a unique combination of mometasone + azelastine nasal spray on the local market, was launched in Uzbekistan and is indicated for the treatment of patients with seasonal allergic rhinitis. Momat Rino 60 and 120 doses nasal sprays were also launched in Uzbekistan. During the year, Glenmark launched Glenspray (mometasone) 50 mcg/120 doses and Glenspray (mometasone) 50 mcg/60 doses in Ukraine.

Glenmark Russia Team

Africa Region

The Africa business registered an average performance for the year under review. However, the subsidiaries of South Africa, Sudan and Kenya recorded good secondary sales.

During the year, Glenmark launched Dermikelp, VWash Plus, Tacroz and Tacroz F in Zambia; Tacroz and Telma H in Tanzania; Ascoril D, Teneligliptin and its combination with Metformin in Mauritius, Momate F in Uganda and Sertaconazole (Onabet) in Sudan.

Glenmark South Africa Team

Glenmark Asia Team

Asia Region

For the year under review, the Asia business recorded average growth. Malaysia and Cambodia have recorded an annual growth of 20% and 101% respectively.

During the year, Glenmark launched Tacroz, Dosetil and Momate NS in Philippines; Momate NS, Dermikelp and VWash in Malaysia and Konzert in Cambodia.

Europe Formulations

The revenue from Glenmark's Europe operations for FY18 was at ₹ 9,058.10 Mn (USD 140.67 Mn) as against ₹ 7,101.35 Mn (USD 106.04 Mn) recording a increase of 27.55%.

The Western European business continued expanding through increased penetration in the UK, Netherlands, Spain and further expansion of sales and product portfolio in Germany. The Company also expanded to the Nordic countries through a new legal entity in Sweden.

Glenmark Germany Team

Glenmark Poland Team

The overall regional growth was led by multiple new product launches across all key markets.

During the year, Glenmark was granted final approval by the Medicines and Healthcare products Regulatory Agency (MHRA) for Maloff Protect (250 mg/100 mg atovaquone/proguanil filmcoated tablets), an anti-malarial medication, as a pharmacy license in the UK. Maloff Protect contains atovaquone and proguanil hydrochloride and has been available only as a prescription medicine in the UK. This is the first approval of the molecule as OTC wherein patients will be able to purchase Maloff Protect without a prescription.

During the third quarter, Glenmark had successfully closed the decentralised registration procedure for generic Seretide® Accuhaler® in the Nordic region, including Sweden, Denmark, Norway, Finland and Iceland. This will be Glenmark's first inhaled respiratory product approval in Europe and re-enforces the Company's commitment in the respiratory area. The commercialisation of the product GLENMARK UK TEAM would depend on national approval as well as substitution and pricing approvals. This continues to emphasise Glenmark's focus in this complex product segment and in Europe.

Glenmark is the first generic company to receive regulatory approval for substitution in Denmark for its generic of Seretide® Accuhaler® and has subsequently launched the product.

Latin America

During the year under review, the Latin America business registered a revenue of ₹ 4,066.95 Mn (USD 63.16 Mn) as compared to ₹ 5,181.22 Mn (USD 77.37 Mn), recording a decline of 21.51%.

The overall performance in the region remained challenging particularly in larger markets such as Brazil and Mexico. Going forward, the Company is working towards ensuring approval for key pipeline products, particularly in the respiratory segment, to boost the overall market growth in Latin America.

During the year, NebZmart, NebZsol and Vocety were launched in Brazil. In Colombia, the Company strengthened its dermatology portfolio and introduced Glenpalene, Glenpalene C, Dermotil S, Glencort, Butemax and Clotridid. Momate AZ nasal spray was launched in the Caribbean region and Glenmark is the first generic alternative in the market offering this unique combination.



Revenue from sale of APIs to regulated and semi-regulated markets globally was ₹ 8,778.91 Mn (USD 136.34 Mn) during the year as against ₹ 8,094.10 Mn (USD 120.86 Mn) for the previous year, recording a 8.46% increase.

APIs are the principal ingredients for finished dosages and are also known as bulk actives or bulk drugs. APIs become formulations when the dosage is administered by using additional inactive ingredients either in oral forms such as tablets, capsules, dry syrups or liquid orals or in sterile forms like injectable dry powder vials or liquid injectables.

Glenmark Upper Latin America Team

Glenmark forayed in to the API business in 2001 and over the last 15 years has built a large business based on strong product selection, focusing on key regulated markets and maintaining high operational efficiency and a strong compliance culture. The Company has robust R&D capabilities in API for developing an attractive pipeline and achieving cost efficiencies to overcome external market challenges.

The Company also markets and supplies its API products to leading generic manufacturers in the US, GLENMARK CZECH REPUBLIC TEAM Europe and Japan, in addition to fulfilling captive API requirements. Key APIs driving sales for Glenmark in FY18 were Perindopril, Lercanidipine, Amiodarone, Etoricoxib and Adapalene. During the year, Glenmark also successfully concluded the US FDA audit of the API plant at Mohol and is awaiting the EIR from the agency.

As on March 31, 2018, the Company has filed over 370 Global DMFs in various markets, including 103 USDMFs, 28 CEPs, 40 EUDMFs, 22 Canadian DMFs, 12 Japan DMFs, 13 Australian DMFs and other DMFs in various ROW countries.

Glenmark Czech Republic Team


Despite the challenging economic situation in most emerging markets, including the volatile currencies. Glenmark continues to remain positive on the long-term growth prospects in key emerging markets. The focus in emerging markets will be to continuously invest in product pipeline, namely in the areas of respiratory, dermatology and oncology therapy. While Glenmark will contain its new investments in emerging markets, it will continuously focus on building the product pipeline in these therapy areas. The US remains the most important market for Glenmark and the organisation continues to invest significantly in this market. All the incremental R&D resources are being invested in the US market and this region will be a key driver for growth in the future. On the generics front, Glenmark will continuously file products in the areas of dermatology and injectables, including complex injectables. On the discovery front, the pipeline is progressing well with several molecules in clinical or pre-clinical development.

The Company will also continue with its approach of out-licensing its molecules. Going ahead, the organisation will continue to lay equal emphasis on small molecules as well as biologics and will continue to focus on discovering primarily first-in-class molecules globally for unmet medical needs.

Our primary objective has always been to facilitate the Company's evolution from a generics organisation to a fully integrated, globally commercialised pharmaceutical company with innovative products. Glenmark has always been focused on a long-term growth strategy while meeting the short-term growth objectives. Today, we have a strong pipeline of products in the US, which primarily consists of differentiated products. We have built a robust India business and have set up a strong foundation for our future growth. In markets like Europe, we anticipate to grow in double digit over the next 3-4 years. The emerging markets (ex-India), though a small portion of the overall revenue, will also continue to grow.

Further, with six novel molecule and three specialty products in our R&D pipeline and with our end-to-end capabilities from R&D to full-scale manufacturing (both in small molecules and novel biologics), the Company enjoys a strong position in IP leadership and global footprint for rapid market penetration. Our complex generic portfolio will also play a significant role in Glenmark's growth strategy in various markets in which we operate and we continue to have complex generic products in our filed pipeline. Moreover, we would continue to develop more products in-house. Our strategy is to leverage both inhouse and external capabilities to develop our complex generic products portfolio to differentiate ourselves from the competitors.

A Snapshot Of Glenmark's Manufacturing Facility

Safe Harbour Statement

This report has been prepared by Glenmark Pharmaceuticals Ltd. The information, statements and analysis made in this report describing the Company's objectives, projections and estimates are forward looking statements and progressive within the meaning of applicable security laws and Regulations. Forward-looking statements may include words or phrases such as 'believes', 'expects', 'anticipates', 'intends', 'plans', 'foresees' or other words or phrases of similar import. Similarly, statements that describe objectives, plans or goals both for itself and for any of its business components also are forward-looking statements.

All such forward looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those contemplated. The analysis contained herein is based on numerous assumptions. Actual result may vary from those expressed or implied depending upon economic conditions, government policies and other incidental factors. No representation or warranty, either expressed or implied, is provided in relation to this report. This report should not be regarded by recipients as a substitute for the exercise of their own judgment.