Agriculture - IBEF

Agriculture

MARCH

2013

For updated information, please visit www.ibef.org

1

Agriculture

MARCH

2013

Contents  Advantage India  Market overview and trends  Growth drivers  Success stories: Green Revolution, Rallis India  Opportunities  Useful information


2

Agriculture

MARCH

2013

Advantage India Robust demand

Attractive opportunities

•

A large population is the key driver of demand for agricultural products

•

Rising urban and rural incomes have also aided demand growth

•

External demand has also been growing especially from key markets like the Middle East

Advantage India

1960-61

High proportion of arable land (55 per cent or 182.3 million hectares)

•

Leading producer of jute, pulses; second-largest producer of wheat, paddy, fruits and vegetables

Food grain production: 69.3 million tonnes

Increasing demand for agricultural inputs such as hybrid seeds and fertilisers

•

Promising opportunities in storage facilities; potential storage capacity expansion of 35 million tonnes under the 11th Five Year Plan

Food grain production: 257.4 million tonnes

Policy support

Competitive advantages •

•

2011-12E

•

Government is increasing Minimum Support Prices (MSPs) to ensure higher crop production

•

Launched National Food Security Mission (NFSM) to increase production of rice, wheat and pulses

Source: Ministry of Agriculture, World Bank, FAOSTAT, Aranca Research Note: E - Estimate


ADVANTAGE INDIA

3

Agriculture

MARCH

2013



4

Agriculture

MARCH

2013

Evolution of agriculture in India 2000 onwards

1980-2000

1960-80 • Expanding cereal production

• Increase in population and strong income growth amplified the demand for food grains

• Pioneering work of agricultural scientists and efforts of farmers led to Green Revolution

• MNC players brought in • Economic reforms better technology introduced; greater encouragement to exports • Rise in institutional credit for agriculture • Surplus of production of agricultural commodities • Government launched over domestic demand NFSM to increase

• High Yield Variety (HYV) of seeds, increased use of fertilizers and irrigation • Low growth in crop and resulted in a significant grain production (0.4 spike in production and 0.1 per cent p.a.)

production of rice, wheat • India thus emerged as a and pulses net exporter of agricultural products • Commodity exchanges helped in fair pricing of commodities

1950s

• Stagnation in agriculture

•

Food grain production of 59.2 mt in 1952–53, with a yield of 579.8 kg/ha

• Attained food security and reduced import of food grains


Source: RBI, Ministry of Agriculture, Aranca Research Notes: NFSM - National Food Security Mission, MNC - Multi National Company, mt - metric tonne, p.a. - per annum MARKET OVERVIEW AND TRENDS

5

Agriculture

MARCH

2013

Growth in agriculture … (1/2)

→

GDP of agriculture and allied sectors in India reached USD 151.8 billion in FY12

→

According to the Central Statistical Organisation (CSO), the agriculture sector is estimated to have grown by 2.5 per cent in FY12

GDP by value added-size of agriculture and allied activities (USD billion) 151.8 147.7 138.0

→

Agriculture is the primary source of livelihood for about 58 per cent of India’s population

136.5

136.6

FY08

FY09

129.0

Note: GDP - Gross Domestic Product

FY07

FY10

FY11

FY12

Source: Ministry of Agriculture, Aranca Research


MARKET OVERVIEW AND TRENDS

6

Agriculture

MARCH

2013

Growth in agriculture … (2/2)

→

At USD29.6 billion, agriculture accounted for 7.1 per cent of total Gross Capital Formation in FY11

→

Under the FY13 Union Budget, planned outlay for various schemes under the Dept of Agriculture and Cooperation (DAC) has been fixed at USD 4.2 billion

Gross Capital Formation in agriculture and allied activities (USD billion) 29.6

19.2 →

26.5

27.3

FY09

FY10

22.0

Allocation to the Rashtriya Krishi Vikas Yojana (RKV Y) in the FY13 budget has been increased to USD 1.9 billion, a rise of about 19 per cent from the previous financial year Note: RKVY is a central government scheme providing funds to state governments to spend on agriculture

FY07

FY08

FY11




7

Agriculture

MARCH

2013

Major seasons: Kharif and Rabi … (1/2)

→

There are two major agricultural seasons in India Kharif and Rabi

→

Kharif season lasts from April to September (summer); rice (paddy) is the season’s main crop

→

Rabi season lasts from October to March (winter); wheat is the season’s main crop

Production of food grains (million tonnes) in Kharif and Rabi seasons

109.8

116.3

123.6

117.2

114.2

121.0

118.1

104.0

121.1

129.9

FY08

FY09

FY10

FY11

FY12E

Kharif

Rabi

Source: Ministry of Agriculture, Aranca Research Note: E - Second advanced estimates for FY12



8

Agriculture

MARCH

2013

Major seasons: Kharif and Rabi … (2/2)

Area sown in FY12* (lakh hectares) Rabi

Kharif

13 39

74

Wheat

37

Paddy

91 Pulses

83 289

Oil seeds

Oilseeds 405

122

Jowar Maize 140

Pulses Cotton Bajra

115

Rice 169

Maize

Source: Ministry of Agriculture, Aranca Research Note: * - Figures for 2012 are as per second advanced estimates



9

Agriculture

MARCH

2013

Exports of Indian agricultural products … (1/2)

→

→

India is among the 15 leading exporters of agricultural products in the world; the country accounted for 1.7 per cent of global agricultural trade in 2010

Agricultural exports from India (USD billion) 37.4

Total agricultural exports from India expanded at a CAGR of 24.1 per cent (to USD37.4 billion) over FY0712(P) Note: P - Provisional estimate (for FY12); CAGR - Compound annual growth rate

24.2 18.4

17.5

17.7

FY08

FY09

FY10

12.7

FY07

FY11

FY12P

Source: Ministry of Agriculture, World Trade Organization, Aranca Research



10

Agriculture

MARCH

2013

Exports of Indian agricultural products … (2/2) Key agricultural and allied sector exports from India in FY12 (USD billion) 5.0 4.5 2.9

2.7

2.5

1.9

Fruits & Vegetables

Sugar

Spices

Oil meals

Note: P - Provisional Estimate

Meat and preparations

As part of a conscious strategy, the government monitors the flow of exports of agricultural products depending on domestic demand and availability

Cotton

→

Rice

1.2

0.9

0.9

0.7

Other cereals

Cotton and meat were the next largest export items in terms of value; they accounted for 12.0 per cent and 7.7 per cent respectively of total agricultural exports in FY12(P)

Cashew

→

India exported rice worth USD5.0 billion in FY12(P) accounting for nearly 13.3 per cent of total agricultural exports

Tea

→




11

Agriculture

MARCH

2013

Key agricultural states and their contributions Punjab and Haryana were the key states of green revolution and continue to be large producers of food grains

Uttar Pradesh - largest producer of wheat 14.34 million tonnes Assam is India’s largest producer of tea

Gujarat - largest producer of cotton 7.99 million bales

Karnataka - largest producer of maize 3.01 million tonnes

West Bengal - largest producer of rice 14.34 million tonnes

Madhya Pradesh - largest producer of pulses 4.30 million tonnes

Source: Department of Agriculture & Cooperation Note: All figures as of 2009-10



12

Agriculture

MARCH

2013



13

Agriculture

MARCH

2013

Growth drivers of Indian agriculture •

Population and income growth

Demand-side drivers

Growth drivers

•

Hybrid and genetically modified seeds

•

Mechanisation

•

Irrigational facilities

Supply-side drivers

Policy support

•

Institutional credit

•

Increasing MSPs

•

Favourable policies

Notes: MSP - Minimum Support Price


GROWTH DRIVERS

14

Agriculture

MARCH

2013

A large population ensures high demand for agricultural products

→

→

India, the second-most populated country in the world, has to meet food consumption needs of around 1,210 million people This is a key demand driver of agricultural growth in the country

Population of India (million) 1,400 1,210 1,200

1,029

1,000

846

800 600

548

683

400 200 0 FY71

FY81

FY91

FY01

FY11

Source: Census of India 2011, Aranca Research


GROWTH DRIVERS

15

Agriculture

MARCH

2013

Income growth also driving agriculture demand

→

Per capita income at factor cost (USD)

Domestic demand for agricultural and allied products has not only been rising due to rising population, but also as a result of greater consumption by a wealthier population

1,270 1,111

→

961

Over FY07-12, India’s per capita income increased at a CAGR of 14.3 per cent (to USD1,270)

849 746 650

→

Indian agriculture has also benefitted from rising external demand and the sector’s wider participation in the global economy

FY07

FY08

FY09

FY10

FY11

FY12

Source: Central Statistical Organisation, Aranca Research


GROWTH DRIVERS

16

Agriculture

MARCH

2013

Growing area under irrigation … (1/2)

→

Area under irrigation (million hectares)

India’s irrigation potential has steadily increased over the years; as of March 2010 it stood at 108.2 million hectares compared to 81.1 million hectares in FY92

86.4 76.6

→

In FY11, aided by central government funding, individual states generated additional irrigation potential of 0.6 million hectares under the Accelerated Irrigation Benefit Programme (AIBP)

63.2

49.8

63.3

55.1 48.0

38.7

38.2 31.1

FY71

FY81

FY91

Gross irrigated area

FY01

FY10P

Net irrigated area

Source: Ministry of Agriculture, Aranca Research Note: P is Provisional Estimate


GROWTH DRIVERS

17

Agriculture

MARCH

2013

Growing area under irrigation … (2/2)

→

Gross irrigated area under food grains is estimated to have grown to 58.6 million hectares in FY10(P)

→

Of the wide variety of crops in India, rice and wheat are the most irrigated

Gross irrigated area under food grains (‘000 hectares) 58,641 53,609 44,866 37,851

→

With growing investments in irrigation, the dependence on monsoons has declined considerably over the years

30,117

FY71

FY81

FY91

FY01

FY10P

Source: Ministry of Agriculture, Aranca Research Note: P is Provisional


GROWTH DRIVERS

18

Agriculture

MARCH

2013

Increasing mechanisation of farming … (1/2)

→

→

→

Number of tractors sold

Mechanisation helps in raising farm income by increasing productivity and limiting post-harvest losses Growing sales of tractors and tillers in India reflect the increasing level of mechanisation in farming; over FY07-12 tractor sales is expected to rise at a CAGR of 11.4 per cent

605,092 545,109 393,836 352,835

346,501

342,836

FY07

FY08

FY09

India is the largest manufacturer of tractors in the world, accounting for about one-third of global production* Source: ‘State of Indian Agriculture 2011-12’ by the Dept of Agriculture and Cooperation (DAC)

FY10

FY11

FY12E

Source: Department of Agriculture and Cooperation, ICRA Aranca Research Note: E - Estimates


GROWTH DRIVERS

19

Agriculture

MARCH

2013

Increasing mechanisation of farming … (2/2)

→

Number of tillers sold

Sale of tillers increased at a CAGR of 22 per cent over FY07-11

55,000 →

The government has set up a number of Farm Machinery Training and Testing Institutes to train farmers on the operation and maintenance of agricultural equipment

39,900

38,794

35,294 26,135 24,791

→

DAC proposes to initiate National Mission on Agricultural Mechanisation (NMAM) to spread the benefits of mechanisation among all levels of farmers especially small and marginal ones FY07 Notes: DAC - Dept. of Agriculture and Cooperation

FY08

FY09

FY10

FY11

Apr - Dec 2011

Source: Department of Agriculture and Cooperation, Aranca Research


GROWTH DRIVERS

20

Agriculture

MARCH

2013

Improved yield and resistance from hybrid seeds … (1/2)

→

→

The size of India’s seed industry was about USD1.6 billion (estimate) in FY10 There has been strong growth in the use of hybrid seeds due to their high yield and resistance

Production of seeds (‘000 tonnes) 200

3,500 3,000

150

2,500 2,000

100 →

Usage of hybrid seeds has been more prevalent in cash crops than food crops

1,500 1,000

50

500 0

0 FY07

FY08 FY09 FY10 FY11P Breeder seed production ('000 tonnes) Foundation seed production ('000 tonnes) Certified seed production('000 tonnes) ( RHS)

Source: Ministry of Agriculture, Aranca Research P - Provisional Estimate


GROWTH DRIVERS

21

Agriculture

MARCH

2013

Improved yield and resistance from hybrid seeds … (2/2)

→

Food grain yields (kg/hectare)

Usage of hybrid seeds has boosted the yield of food grains to 1,993 kg/hectare in FY12 from 1,023 kg/ hectare in FY81

1,921 →

The government has been playing a proactive role in promoting greater use of hybrid seeds; it encourages private seed companies by providing a subsidy of 25 per cent of the capital cost subject to a maximum of USD50,000 per unit

1,993

1,626 1,380 1,023

FY81

FY91

FY01

FY11

FY12

Source: Ministry of Agriculture, RBI, Aranca Research Note: E - Fourth advance estimates, E* - First advance estimates


GROWTH DRIVERS

22

Agriculture

MARCH

2013

Institutional credit to agriculture on a rise … (1/2)

→

Institutional credit to the agriculture sector increased at a CAGR of 18.1 per cent during FY07-11

Institutional credit to agriculture (USD billion) 69.3

→

→

59.5

Farmers are allowed to avail crop loans at an interest of 7 per cent In FY12, the government increased the interest subvention for timely repayment of crop loans to 3 per cent from 2 per cent in FY11

47.7 37.7 34.7

30.4 14.6

8.9 4.3 FY07

10.1 5.3 FY08

Commercial Banks

9.6

5.6

FY09

13.2

7.3

FY10

Cooperative Banks

9.2

FY11

10.4 5.7 1H FY12

Regional Rural Banks



GROWTH DRIVERS

23

Agriculture

MARCH

2013

Institutional credit to agriculture on a rise … (2/2)

→

Domestic banks (both private and public) are stipulated to provide almost one-fifth (18 per cent) of their net bank credit to agriculture

Share of institutional credit to agriculture

74.5% →

Banks are issuing Kisan Credit Card (KCC) to farmers to provide timely and adequate credit support; by the end of Oct, 2011, 107.8 million KCCs were issued to eligible farmers

52.6% 39.2% 15.7% 8.0% Co-operative Banks

9.8%

Regional Rural Banks FY01

Commercial Banks

FY11

Source: Annual report on Agriculture 2010-11, Aranca Research


GROWTH DRIVERS

24

Agriculture

MARCH

2013

Rising MSPs incentivise farming … (1/2)

→

→

MSP of rice (USD per quintal)

The Indian government increases MSPs regularly to incentivise farmers to enhance production of crops and ensure there is adequate supply The MSP for rice was raised by 15.5 per cent to USD26.0 per quintal in FY13 from USD22.5 per quintal in FY12

26.0 18.8

19.8

20.8

22.5

15.5

Note: MSP is Minimum Support Price

FY08

FY09

FY10

FY11

FY12

FY13



GROWTH DRIVERS

25

Agriculture

MARCH

2013

Rising MSPs incentivise farming … (2/2)

→

→

MSP of arhar (USD per quintal)

Government has increased the MSP of pulses significantly in the past three years to encourage production and thereby reduce the supply shortage

80.2 66.7

MSP for arhar increased 150 per cent to USD80.2 per tonnes in FY13 from USD32.3 per quintal in FY08

62.5 47.9 41.7 32.3

FY08

FY09

FY10

FY11

FY12

FY13



GROWTH DRIVERS

26

Agriculture

MARCH

2013

Favourable policies are supporting the sector growth … (1/2) • National Food Security Mission was launched in FY08 with an outlay of USD1.2

National Food Security Mission (NFSM)

billion during the 11th Five year plan • It aims at enhancing the production of rice, wheat and pulses by 10 million

tonnes, 8 million tonnes and 2 million tonnes by FY12

• Rajiv Krishi Vikas Yojana was launched in FY08 with an outlay of USD5.3 billion

Rajiv Krishi Vikas Yojana (RKVY)

during the 11th Five year plan • RKVY aims at incentivising states to increase outlays for agriculture and allied

activities there by creating an increased focus on agriculture

• 100 per cent Foreign Direct Investment (FDI) is allowed under automatic route in

Foreign Direct Investment (FDI)

storage and ware housing including cold storages • FDI policy for agriculture was amended to allow 100 per cent FDI under

automatic route for development of seeds Source: Ministry of Agriculture, Union Budget 2011-12, Aranca Research


GROWTH DRIVERS

27

Agriculture

MARCH

2013

Favourable policies are supporting the sector growth … (2/2) • Government has launched an initiative to spend USD 65.1 million to promote

Pulses villages

60,000 ‘pulses villages’ in rain fed areas for increasing crop productivity and strengthening market linkages

• Realising that scientific and technical breakthroughs are critical to increasing

Incentivising agricultural research

agricultural productivity, the government in its FY13 budget has allocated USD41.7 million to incentivise research with rewards for institutions as well as research teams

• The government plans to set up a Regional Rural Bank Credit Refinance Fund

RRB Credit Refinance Fund

with a capital of USD2.1 billion to enhance the capacity of RRBs to disburse short term crop loans to small and marginal farmers • In its budget for FY13, the government raised the target for agricultural credit by

USD20.8 billion to USD119.8 billion Source: Ministry of Agriculture, Union Budget 2011-12, Aranca Research Note: RRB - Regional Rural Bank


GROWTH DRIVERS

28

Agriculture

MARCH

2013

Contents  Advantage India  Market overview and trends  Growth drivers  Success stories: Green revolution, Rallis India  Opportunities  Useful information


29

Agriculture

MARCH

2013

Green Revolution: India becomes selfsufficient in food grains →

The Green Revolution started around 1965 in India, especially in the states of Haryana and Punjab, to increase the production of food grains

→

The movement helped the country to reduce imports and become self-sufficient in food grains

→

Food grain production more than doubled to 150.4 million tonnes in FY86 from 72.4 million tonnes in FY66

→

Agricultural infrastructure improved during this period with dependence on monsoons going down due to better irrigation facilities Food grain production (million tonnes)

Double cropping existing farm land

150.4 121.0

129.6

FY76

FY81

108.4 Continued expansion of farming area

Green Revolution

High yielding seeds

Use of pesticides and fertilisers


72.4

FY66

FY71

FY86

Source: Handbook of Indian Statistics, Aranca Research SUCCESS STORIES: GREEN REVOLUTION, RALLIS INDIA

30

Agriculture

MARCH

2013

Rallis India: Leading player in agricultural inputs … (1/2) Salient characteristics •

Rallis is a leading player in the agricultural inputs business and the largest player in agri chemical business

•

Crop protection is the major segment for the company and it plans to expand its presence in seeds and PGN

•

As part of the above mentioned plans, Rallis acquired a research-led seeds company ‘Metahelix’ and launched a PGN product in the name of ‘Ralligold’

•

Rallis India has set up Rallis Farm Management services to undertake contract farming

•

Rallis Research centre has won the prestigious New Millennium Indian Technological Leadership Initiative award for a molecule discovery

Major business segments

Crop protection

Agri services Rallis

Contract farming

Seeds and PGN

Note: PGN - Plant Growth Nutrients


SUCCESS STORIES: GREEN REVOLUTION, RALLIS INDIA

31

Agriculture

MARCH

2013

Rallis India: Leading player in agricultural inputs … (2/2) Net sales (USD million)

Profit before taxes (USD million)

259.4 38.4

222.0 183.1

31.8

30.5

174.3

31.1

153.1

140.5

22.3

18.2

FY08

FY09

FY10

FY11

FY12

H1FY13

FY08

FY09

FY10

FY11

FY12

H1FY13

Source: Company website, Aranca Research


SUCCESS STORIES: GREEN REVOLUTION, RALLIS INDIA

32

Agriculture

MARCH

2013



33

Agriculture

MARCH

2013

Opportunities

Farm management services

• New agri business, which

provides inputs such as seeds, fertilisers along with providing advice and training farmers on latest agricultural practices • It introduces efficiencies

into the whole gamut of agri practices • Provides assistance to sell

products at appropriate prices

Agricultural inputs

• Limited arable land

against growing population makes agricultural inputs crucial • Huge opportunity exists

for agri input segments like seeds and plant growth nutrients • In India, commercial seeds

only account for minor percentage (25 per cent) and huge demand is expected for quality branded seeds

Logistics

• The 11th Five Year Plan

estimated a potential storage capacity expansion of 35 million tonnes • Cold storage capacity needs

to grow rapidly from the current level of 24 million tonnes • Private warehouse

operators are supported by multiple income streams, subsidy and available of credit Source: Rallis Annual Report, FCI, Aranca research Note: FCI - Food corporation of India


OPPORTUNITIES

34

Agriculture

MARCH

2013

Initiatives that will further prop up the sector

FDI in multi-brand retail

National Food Security Bill

• The government’s plan to allow up

to 51 per cent FDI in multi-brand retail (which is under discussion) will positively influence agriculture and enable its modernisation even further • Foreign investors are likely to bring

in efficiencies, especially in food supply chains; they are likely to invest in logistics such as warehouses and cold storages • Direct procurement from farmers

will likely result in higher prices for the farmer and lower ones for the consumer


• Under the proposed National Food

Security Bill, government guarantees beneficiaries a prescribed quantity of food grains at heavily-discounted prices • To meet the demand that could

emanate from implementation of the bill, the government will take measures to raise productivity • The government is likely to invest

more on the storage infrastructure, which will reduce wastage and thereby lead to lower prices

OPPORTUNITIES

35

Agriculture

MARCH

2013



36

Agriculture

MARCH

2013

Industry Associations … (1/2) Autonomous Bodies National Institute of Agricultural Extension Management Rajendranagar, Hyderabad - 500 030, Andhra Pradesh Phone: 040-24016702 to 706 Fax: 040-24015388 National Institute of Agricultural Marketing (NIAM) Bambala, Kota Road Jaipur - 302033, Rajasthan Phone: 0141-2770027 Fax: 0141-2771938, 2770027

Boards Central Insecticides Board and Registration Committee Machinary Store Building, N.H.IV Faridabad Phone: 0129-2413002 Coconut Development Board Kera Bhavan, SRVHS Road, Kochi Kerala - 682011 Phone: 0484-2376265, 2377267, 2376553 Fax: 0484-2377902 For updated information, please visit www.ibef.org

USEFUL INFORMATION

37

Agriculture

MARCH

2013

Industry Associations … (2/2) National Dairy Development Board (NDDB) PB No 40, Anand - 388 001 Phone: 02692-260148/260149/260160 Fax: 02692-260157 National Horticulture Board (NHB) Ministry of Agriculture, Government of India 85, Institutional Area, Sector-18 Gurgaon - 122015, Haryana National Oilseeds and Vegetable Oils Development Board (NOVOD) 86, Institutional Area, Sector-18 Gurgaon - 122015, Haryana Councils Indian Council of Agricultural Research (ICAR) Krishi Bhavan, New Delhi 110 114 Phone: 91-11-25846010


USEFUL INFORMATION

38

Agriculture

MARCH

2013

Glossary

→

AIBP: Accelerated Irrigation Benefit Programme

→

Breeder seeds: Seeds move from germplasm ( research) stage to breeder stage

→

CAGR: Compound annual growth rate

→

Certified/quality seeds: Foundation seeds are further multiplied to get certified seeds, which are sold to farmers

→

FMTTI: Farm Machinery Training and Testing Institutes

→

Foundation seeds: Breeder seeds are multiplied as foundation seeds

→

FY: Indian financial year (April to March) - FY12 implies April 2011 to March 2012

→

KCC: Kisan Credit card

→

MSP: Minimum Support Prices

→

NFSM: National Food security mission

→

NMAM: National Mission on Agricultural Mechanisation

→

PGN: Plant Growth Nutrients


→

RKVY: Rashtriya Krushi Vikas Yojana is a central government scheme providing funds to state governments to spend on agriculture

→

USD: US Dollar - Conversion rate used: USD 1 = INR 48

→

Wherever applicable, numbers have been rounded off to the nearest whole number

USEFUL INFORMATION

39

Agriculture

MARCH

2013

Disclaimer

India Brand Equity Foundation (IBEF) engaged Aranca to prepare this presentation and the same has been prepared by Aranca in consultation with IBEF. All rights reserved. All copyright in this presentation and related works is solely and exclusively owned by IBEF. The same may not be reproduced, wholly or in part in any material form (including photocopying or storing it in any medium by electronic means and whether or not transiently or incidentally to some other use of this presentation), modified or in any manner communicated to any third party except with the written approval of IBEF. This presentation is for information purposes only. While due care has been taken during the compilation of this


presentation to ensure that the information is accurate to the best of Aranca and IBEF’s knowledge and belief, the content is not to be construed in any manner whatsoever as a substitute for professional advice.

Aranca and IBEF neither recommend nor endorse any specific products or services that may have been mentioned in this presentation and nor do they assume any liability or responsibility for the outcome of decisions taken as a result of any reliance placed on this presentation. Neither Aranca nor IBEF shall be liable for any direct or indirect damages that may arise due to any act or omission on the part of the user due to any reliance placed or guidance taken from any portion of this presentation.

DISCLAIMER

40