Tata Global Beverages - Business Standard

2QFY2014 Result Update | FMCG November 25, 2013

Tata Global Beverages

NEUTRAL

Performance Highlights

CMP Target Price

Quarterly results - Consolidated (` cr) Y/E March Revenue EBITDA

Adjusted PAT

Investment Period

2QFY14

2QFY13

% yoy

1QFY14

% qoq

1,906

1,843

3.5

1,796

6.1

131

143

(8.5)

190

(31.2)

6.9

7.8

(90)bp

10.6

(371)bp

126

130

(3.2)

91

38.8

OPM (%)

`142 -

Source: Company, Angel Research

-

Stock Info Sector

FMCG

Market Cap (` cr)

8,778

Net Debt (` cr)

498

Beta

1.0

52 Week High / Low

174/122

For 2QFY2014 Tata Global Beverages (TGBL) posted a 3.2% yoy de-growth in bottom-line to `126cr, due to higher advertising expenses as the company simultaneously launched five marketing campaigns. We maintain our Neutral view on the stock.

Avg. Daily Volume

369,977

Key highlights: For 2QFY2014 TGBL posted a muted 4% yoy growth in its topline to `1,906cr aided largely by Indian operations. Overall, the top-line growth was impacted due to the restructuring of Canadian operations from distributor based to direct sales model. The tea business posted a top-line growth of 4%, while the coffee business remained flat yoy. The OPM fell by 90bp yoy to 6.9%, impacted primarily by higher advertisement expenses. The Adjusted PAT fell by 3.2% yoy to `126cr. However, the reported PAT rose by 51% yoy to `180cr due to net exceptional gains of `92cr. Exceptional items included `192cr of profit on sale of property in Bangalore, investment related loss of `21cr, cost related to business restructuring of `41cr, `11cr of inventory write off, `11cr of post retirement benefit obligation, and product development and brand amortization costs amounting to `16cr.

Reuters Code

TGBL.BO

Bloomberg Code

TGBL@IN

Outlook and valuation: Over FY2013-15, we expect the company to post a CAGR of 9.5% and 14.9% in its top-line and bottom-line, respectively. At the current market price, the stock is trading at 16.6x FY2015E earnings. We maintain our Neutral view on the stock.

Face Value (`)

1

BSE Sensex

20,217

Nifty

5,995

Shareholding Pattern (%) Promoters

35.1

MF / Banks / Indian Fls

16.8

FII / NRIs / OCBs

22.3

Indian Public / Others

25.8

Abs. (%) Sensex TGBL

3m

1yr

10.4

9.2

(2.7) (11.3)

3yr 1.3 18.6

Key Financials (Consolidated) Y/E March (` cr)

FY2012

FY2013

FY2014E

FY2015E

6,585

7,270

7,852

8,716

% chg

10.1

10.4

8.0

11.0

Net Profit

333

402

466

530

% chg

36.0

20.7

15.9

13.9

EBITDA (%)

8.8

9.5

10.4

10.5

EPS (`)

5.4

6.5

7.5

8.6

P/E (x)

26.4

21.9

18.9

16.6

P/BV (x)

1.9

1.8

1.7

1.6

RoE (%)

7.9

7.8

10.8

9.6

RoCE (%)

7.1

8.1

9.4

10.2

EV/Sales (x)

1.3

1.2

1.1

0.9

14.6

12.9

10.3

9.0

Net Sales

EV/EBITDA (x)

V Srinivasan 022-39357800 [email protected]

Source: Company, Angel Research: Note: CMP as on November 22, 2013

Please refer to important disclosures at the end of this report

1

TGBL | 2QFY2014 Result Update

Exhibit 1: Quarterly performance (Consolidated) Y/E March (` cr) Net Sales

2QFY14

2QFY13

% chg (yoy)

1QFY14

% chg (qoq)

1HFY2014

1HFY2013

% chg

1,906

1,843

3.5

1,796

6.1

3,702

3,557

4.1

0.7

1.6

Consumption of RM

944

937

(% of Sales)

49.5

50.8

Staff Costs

201

177

(% of Sales)

10.5

9.6

Other Expenses

631

586

(% of Sales)

13.5

887

6.4

1,831

1,802

49.4

0.2

49.4

50.7

187

7.5

387

353

10.4

1.3

10.5

9.9

7.7

532

18.6

1,164

1,093

9.8 6.5

33.1

31.8

29.6

11.7

31.4

30.7

Total Expenditure

1,776

1,700

4.5

1,606

10.5

3,382

3,248

4.1

Operating Profit

130.6

142.8

(8.5)

189.8

(31.2)

320

309

3.6

OPM

6.9

7.8

(90)bp

10.6

(371)bp

8.7

8.7

(4)bp

18.1

11.0

65.4

20.4

(11.0)

39

32

19.8

Depreciation & Amortisation

31

25

25.3

29

9.1

60

50

20.4

Other Income

60

52

13.7

36

67.0

95

85

11.5

Recurring PBT

141

159

(11.6)

176

(20.2)

317

313

1.4

113.7

(16.6)

57.2

197

17.9

431

296

11.0

11.1

11.6

8.3

61

17.6

134

70

31.0

31.1

23.7

Interest

Extraordinary Income/(Expense)

92

(11)

PBT after Extra-ordinary items

233

148

(% of Sales)

12.2

8.0

72

20

31.0

13.5

(15.4)

20.7

15.0

(0.4)

35.2

4.1

11.7

(9.3)

(5.2)

5.2

Adjusted PAT

126

130

217

212

PATM

180

119

112

292

196

7

7

5

6

6

62

62

62

62

62

Provision for Taxation (% of PBT) Minority Interest Profit/( Loss) from Associates

Equity shares (cr) EPS (`)

21

260.9

(3.2)

91

38.8

45.5 90.9

2.2


Exhibit 2: 2QFY2014 Actual vs Angel estimates (` cr)

Actual

Angel Est

Revenue

1,906

1,937

(1.6)

OPM (%)

6.9

9.3

(245)bp

126

120

5.1

PAT

% Diff


November 25, 2013

2


Moderate operational performance TGBL posted a 3.5% yoy improvement in its consolidated net sales to `1,906cr, aided by a 4.3% yoy growth in top-line of the tea business. The coffee business posted a flat performance on the top-line front. South Asia operations: The domestic tea business (South Asia operations) posted a top-line growth of 18%, aided by both volume and value growth. Various consumer promotion activities were undertaken to drive sales growth. In India (which accounts for the majority of the South Asian operations), the company launched the “Power of 49” marketing campaign to empower women (constituting 49% of total electorate) and highlight the role they can play in elections. Australia: The profitability of Australian operations remains robust. Tetleys new pyramid range has been successfully launched and sales are off to a promising start. USA: Eight o’ Clock coffee was re-launched with a new pack design, new blends and new marketing campaign. The partnership with Keurig continues to result in healthy distribution gain. Operating profits have increased significantly for the US coffee business. Canada: The restructuring of Canadian sales and distribution operations has been completed. Overall operations in the country, which were affected due to the restructuring activity, are expected to pick up going ahead. Europe, Middle East and Africa: The market for black tea (80% market share) continued to decline in the UK. However, market for other variants such as green tea, Red bush tea, decafinated tea continued to grow. Sales during the quarter were also affected due to the hot summer in the UK. Tea pigs, a super premium tea brand, posted a significant growth in sales during the quarter. France witnessed significant improvement in top-line and margins. Business in other countries like Portugal, Spain, Poland and Czech republic too posted recovery. Tetley tea was launched in the Middle East during the quarter.

Non-branded Business: Tata Coffee’s (TGBL’s subsidiary) plantations recorded a good quarter. Kannan Devan tea plantation and Assam plantation too posted significant profit increases, aided by higher crop, productivity, and better tea prices. Tata Coffee commissioned a new instant coffee facility in Theni.

Other businesses The Water business posted a significant improvement during the quarter. 500ml pet bottles of Tata Water Plus were launched in Tamil Nadu and Andhra Pradesh. The Himalayan water business too continued to grow with gains in Delhi and noncore markets. Tata Starbucks continues to receive good reception from customers. The total number of outlets has increased to 27. The first outlet in Pune was inaugurated during the quarter. TGBL entered into an agreement with Tata Realty and Infrastructure for developing its property in Bangalore.

November 25, 2013

3


Exhibit 3: Top-line performance 2,400

20.0 18.0

2,000

16.0 14.0 10.0

(%)

1,906

1,796

1,811

1,902

1,715

400

1,793

800

1,612

1,200

1,843

1,724

12.0

1,456

(` cr)

1,600

8.0 6.0 4.0 2.0

-

0.0 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 Top-line (LHS) yoy growth (RHS)


OPM at 6.9% The company’s OPM fell by 90bp yoy to 6.9%, impacted primarily by higher advertisement expenses as the company simultaneously launched five marketing campaigns during the quarter. While the tea business posted a 12.3% yoy growth in its profits, the coffee business posted a 28.6% yoy de-growth in profits. The Adjusted PAT fell by 3.2% yoy to `126cr. However, the reported PAT rose by 51% yoy to `180cr due to net exceptional gains of `92cr. Exceptional items included `192cr of profit on sale of property in Bangalore, investment related loss of `21cr, cost related to business restructuring of `41cr, `11cr of inventory write off, `11cr of post retirement benefit obligation, and product development and brand amortization costs amounting to `16cr.

Exhibit 4: Segmental performance Y/E March (` cr)

2QFY14

2QFY13

%chg yoy

1QFY14

%chg qoq

1HFY14

1HFY13

% chg

1,370

1,314

4.3

1,317

4.0

2,688

2,545

5.6

540

535

0.9

469

15.2

1008

1006

0.3

23

15

52.8

28

(14.7)

51

40

28.8

3

0

-

0

-

0

0

20.0

1,936

1,865

3.8

1,814

6.8

3,747

3,590

4.4

122

108

12.3

144

(15.5)

268

242

10.6

Coffee and Other Produce

60

84

(28.6)

84

(28.4)

111

140

(20.6)

Others

(6)

(9)

-

(13)

-

(19)

(16)

-

176

184

(4.4)

215

(18.5)

360

366

(1.6)

8.9

8.3

10.0

9.5

Sales Tea Coffee and Other Produce Others Unallocated Net Income from operations EBIT Tea

Total EBIT (%) Tea Coffee and Other Produce Others

November 25, 2013

10.9

11.1

15.8

17.9

11.0

13.9

(27.2)

(58.4)

(46.5)

(37.6)

(41.5)

4


Exhibit 5: OPM performance 12 10

(%)

8

9.6 7.3

6

10

10

9.9

10.2 10.6

7.8 6.9

6.6

4 2 0 1Q12

2Q12

3Q12

4Q12

1Q13

2Q13

3Q13

4Q13

1Q14

2Q14


Investment rationale 

Growth opportunity: TGBL holds a strong growth potential with increasing consumption of healthy beverages in India and globally. Acquisitions and strategic partnerships with global beverage giants like PepsiCo and Starbucks offer a huge market potential for TGBL, as it can develop and market products in local as well as global markets. The TGBL – Starbucks JV recently inaugurated the first store of Starbucks Coffee – Tata Alliance in Mumbai. The JV plans to scale up its operations quickly going ahead. Through its JV with Pepsico, TGBL has also entered the water business. It has launched two brands - Tata Gluco Plus and Tata Water Plus - in select cities in India. The initial response to the water brands has been encouraging with Tata Water Plus becoming the largest selling bottled water company in Chennai.



Focus on branded products to lead to healthy margins: TGBL has shifted its focus from plantation activities to branded beverages. In the long run this is expected to lead to rationalization in TGBL’s operating cost structure, thus leading to healthy operating margins for it. While TGBL’s focus on volume growth remains intact, selective price increases and stable ad spends will further aid in margin improvement.

Outlook and valuation Over FY2013-15, we expect the company to post a CAGR of 9.5% and 14.9% in its top-line and bottom-line, respectively. At the current market price, the stock is trading at 16.6x FY2015E earnings. We maintain our Neutral view on the stock.

November 25, 2013

5


Exhibit 6: One-year forward PE

Nov-13

Aug-13

May-13

Feb-13

Nov-12

Aug-12

May-12

Feb-12

Nov-11

Aug-11

May-11

Feb-11

Nov-10

Aug-10

May-10

Feb-10

Nov-09

Aug-09

Feb-09

May-09

Nov-08

50.0 45.0 40.0 35.0 30.0 25.0 20.0 15.0 10.0 5.0 -

Source: Bloomberg, Angel Research; Note: Blue line represents 5-yr average

Exhibit 7: Peer valuation Company

Reco

Mcap

CMP

TP

(` cr)

(`)

(`)

Upside

P/E (x)

EV/Sales (x)

RoE (%)

CAGR #

(%)

FY14E

FY15E

FY14E

FY15E

FY14E

FY15E

Sales

EPS

Asian Paints

Neutral

48,747

508

-

-

38.5

32.4

3.8

3.2

35.1

32.6

15.6

16.2

Britannia

Accum.

10,462

875

945

8

27.7

23.2

1.5

1.3

48.8

41.9

14.8

40.4

Colgate

Neutral

16,992

1,250

-

-

32.6

27.9

4.6

3.9

96.2

92.5

15.7

10.7

Dabur

Neutral

28,047

161

-

-

30.2

25.8

3.9

3.4

39.1

36.5

15.4

19.1

GCPL

Neutral

29,278

860

-

-

35.5

28.6

3.9

3.3

24.1

24.6

19.3

19.6

GSKCHL*

Neutral

18,612

4,426

-

-

36.6

30.6

4.7

3.9

34.0

33.3

17.6

19.7

HUL

Neutral

123,684

572

-

-

34.4

31.3

4.2

3.7

111.7

88.2

12.6

11.4

ITC

Neutral

243,612

308

-

-

28.0

24.1

6.4

5.4

36.1

34.9

14.3

16.8

Marico

Neutral

13,304

206

-

-

28.2

23.0

2.7

2.3

21.5

21.7

10.3

26.1

Nestle*

Neutral

52,718

5,468

-

-

44.6

36.6

5.6

4.7

56.1

50.3

14.4

14.3

TGBL

Neutral

8,778

142

-

-

18.9

16.6

1.1

0.9

10.8

9.6

9.5

14.9

#

Source: Company, Angel Research; Note: Denotes CAGR over FY2013-15E, *December Year Ending.

Company background TGBL has a strong portfolio of global and regional brands such as Tata Tea, Tetley, Eight O’Clock Coffee, Good Earth, Jemca, Grand Vitax and Himalayan. During the past decade, TGBL has made acquisitions in various countries in the tea, coffee, water and other beverages categories. Tea constitutes more than 70% of the company’s total turnover, coffee accounts for ~26%, and the rest is accounted by other activities. About 65% of the company’s sales are from outside India, ie from countries such as the US, UK, Czech Republic and Poland.

November 25, 2013

6


Profit & Loss Statement (Consolidated) Y/E March (` cr) Total operating income % chg

FY10

FY11

5,783

5,982

FY12

FY13

FY14E

FY15E

6,585 7,270

7,852

8,716

19.3

3.4

10.4

8.0

11.0

Total Expenditure

5,269

5,395

6,009 6,582

7,035

7,801

Cost of Materials

2,310

2,928

3,323 3,567

3,808

4,227

Advertising Exp

1,317

1,013

1,100 1,221

1,335

1,221

611

615

675

740

785

872

Others

1,031

840

911 1,054

1,107

1,481

EBITDA

514

587

576

688

817

915

(17.7)

14.4

(1.9)

19.4

18.7

12.1

8.9

9.8

8.8

9.5

10.4

10.5

103

99

96

105

113

125

Personnel

% chg (% of Net Sales) Depreciation& Amortisation EBIT

10.1

411

488

480

583

704

790

(21.9)

18.8

(1.6)

21.4

20.7

12.2

7.1

8.2

7.3

8.0

9.0

9.1

Interest & other Charges

149

121

70

84

97

90

Other Income

379

118

140

167

127

130

(% of PBT)

59.2

24.3

25.5

25.0

17.3

15.7

-

-

-

-

-

-

Recurring PBT

641

485

550

666

734

830

% chg

20.7

(24.3)

13.5

21.0

10.3

13.1

8

10

23

(28)

92

-

PBT (reported)

649

494

573

638

826

830

Tax

248

202

142

164

202

228

(% of PBT)

38.6

41.7

25.7

24.6

27.5

27.5

PAT (Adjusted)

393

283

409

502

532

602

33

20

(15)

(28)

10

15

% chg (% of Net Sales)

Share in profit of Associates

Prior Period & Extr.( Exp.)/Inc

Add: Share of earnings of asso. Less: Minority interest (MI) Adj. PAT after MI (reported) % chg Reported PAT

36

58

61

72

77

87

390

245

333

402

466

530

-

(37)

36

21

16

14

399

254

355

373

558

530

(% of Net Sales)

6.9

4.3

5.4

5.1

7.1

6.1

Basic EPS (`)

6.3

4.0

5.4

6.5

7.5

8.6

Fully Diluted EPS (`)

6.3

4.0

5.4

6.5

7.5

8.6

% chg

0.0

(37.4)

35.7

20.7

15.9

13.9

Note: Some of the figures from FY2011 onwards are reclassified; hence not comparable with previous year numbers

November 25, 2013

7


Balance Sheet (Consolidated) Y/E March (` cr)

FY10

FY11

FY12

FY13

FY14E

FY15E

SOURCES OF FUNDS Equity Share Capital

62

62

62

62

62

62

Preference Capital

-

-

-

-

-

-

Reserves& Surplus

3,662

3,895

4,504

4,748

5,126

5,499

Shareholders’ Funds

3,723

3,957

4,566

4,810

5,187

5,561

Minority Interest

1,057

1,108

1,066

814

814

814

Total Loans

1,797

1,041

916

1,325

1,225

1,125

75

64

66

54

66

66

88

174

174

174

174

Deferred Tax Liability Long term Provisions Other long term liablities Total Liabilities

164

156

156

156

156

6,652

6,423

6,943

7,333

7,622

7,895

APPLICATION OF FUNDS Gross Block

1,470

1,538

1,731

1,867

2,050

2,276

Less: Acc. Depreciation

752

842

956

1,031

1,144

1,269

Net Block

718

697

775

836

906

1,007

47

44

49

91

51

57

2,929

3,062

3,469

3,598

3,598

3,598

519

591

600

578

745

772

91

86

86

86

86

Capital Work-in-Progress Goodwill Investments Long term loans and adv. Current Assets

3,998

3,280

3,300

3,605

3,818

4,070

Cash

1,904

997

736

698

899

924

653

717

820

876

915

915

Other

1,441

1,565

1,744

2,031

2,004

2,231

Current liabilities

1,560

1,342

1,336

1,461

1,582

1,695

Net Current Assets

2,438

1,938

1,964

2,144

2,236

2,375

-

-

-

-

-

-

6,652

6,423

6,943

7,333

7,622

7,895

Loans & Advances

Mis. Exp. not written off Total Assets


November 25, 2013

8


Cash Flow Statement (Consolidated) Y/E March (` cr)

FY10

FY11

FY12

FY13

FY14E

FY15E

Profit before tax

641

485

550

666

734

830

Depreciation

103

99

96

105

113

125

Change in Working Capital

42

(284)

(69)

(236)

14

(226)

Interest / Dividend (Net)

91

45

2

(4)

48

38

Direct taxes paid Others

248

202

142

164

202

228

(326)

(125)

(232)

(39)

(38)

(38)

Cash Flow from Operations

303

18

205

328

669

501

(Inc.)/ Dec. in Fixed Assets

(89)

(85)

(198)

(178)

(144)

(231)

(Inc.)/ Dec. in Investments

1,472

5

(10)

22

(167)

(27)

Cash Flow from Investing

1,384

(81)

(208)

(155)

(311)

(258)

-

(63)

0.1

(0)

-

-

Issue of Equity Inc./(Dec.) in loans

(634)

(591)

(134)

410

(100)

(100)

Dividend Paid (Incl. Tax)

146

145

123

119

119

119

Interest / Dividend (Net)

91

45

2

(4)

48

38

(871)

(845)

(259)

295

(267)

(257)

815

(907)

(261)

468

91

(14)

Opening Cash balances

1,089

1,904

997

736

698

899

Closing Cash balances

1,904

997

736

698

899

924

Cash Flow from Financing Inc./(Dec.) in Cash


November 25, 2013

9


Key Ratios Y/E March

FY10

FY11

FY12

FY13

FY14E

FY15E

P/E (on FDEPS)

22.4

35.8

26.4

21.9

18.9

16.6

P/CEPS

17.4

24.8

19.4

18.3

13.1

13.4

P/BV

2.4

2.2

1.9

1.8

1.7

1.6

Dividend yield (%)

1.4

1.4

1.5

1.5

1.5

1.5

EV/Sales

1.4

1.4

1.3

1.2

1.1

0.9

15.8

14.1

14.6

12.9

10.3

9.0

1.2

1.3

1.2

1.2

1.1

1.1

EPS (Basic)

6.3

4.0

5.4

6.5

7.5

8.6

EPS (fully diluted)

6.3

4.0

5.4

6.5

7.5

8.6

Cash EPS

8.1

5.7

7.3

7.7

10.8

10.6

DPS

2.0

2.0

2.1

2.2

2.2

2.2

59.6

63.4

73.1

77.1

83.2

89.2

6.2

7.7

7.1

8.1

9.4

10.2

Valuation Ratio (x)

EV/EBITDA EV / Total Assets Per Share Data (`)

Book Value Returns (%) RoCE Angel ROIC (Pre-tax)

-

-

-

-

-

-

10.8

6.5

7.9

7.8

10.8

9.6

Asset Turnover (Gross Block)

4.1

4.0

3.9

4.0

3.9

3.9

Inventory / Sales (days)

53

61

62

64

63

58

Receivables (days)

31

33

34

34

35

35

Payables (days)

83

74

59

55

55

55

WC cycle (ex-cash) (days)

76

45

60

67

65

58

RoE Turnover ratios (x)


November 25, 2013

10


Research Team Tel: 022 - 39357800

E-mail: [email protected]

Website: www.angelbroking.com

DISCLAIMER This document is solely for the personal information of the recipient, and must not be singularly used as the basis of any investment decision. Nothing in this document should be construed as investment or financial advice. Each recipient of this document should make such investigations as they deem necessary to arrive at an independent evaluation of an investment in the securities of the companies referred to in this document (including the merits and risks involved), and should consult their own advisors to determine the merits and risks of such an investment. Angel Broking Pvt. Limited, its affiliates, directors, its proprietary trading and investment businesses may, from time to time, make investment decisions that are inconsistent with or contradictory to the recommendations expressed herein. The views contained in this document are those of the analyst, and the company may or may not subscribe to all the views expressed within. Reports based on technical and derivative analysis center on studying charts of a stock's price movement, outstanding positions and trading volume, as opposed to focusing on a company's fundamentals and, as such, may not match with a report on a company's fundamentals. The information in this document has been printed on the basis of publicly available information, internal data and other reliable sources believed to be true, but we do not represent that it is accurate or complete and it should not be relied on as such, as this document is for general guidance only. Angel Broking Pvt. Limited or any of its affiliates/ group companies shall not be in any way responsible for any loss or damage that may arise to any person from any inadvertent error in the information contained in this report. Angel Broking Pvt. Limited has not independently verified all the information contained within this document. Accordingly, we cannot testify, nor make any representation or warranty, express or implied, to the accuracy, contents or data contained within this document. While Angel Broking Pvt. Limited endeavours to update on a reasonable basis the information discussed in this material, there may be regulatory, compliance, or other reasons that prevent us from doing so. This document is being supplied to you solely for your information, and its contents, information or data may not be reproduced, redistributed or passed on, directly or indirectly. Angel Broking Pvt. Limited and its affiliates may seek to provide or have engaged in providing corporate finance, investment banking or other advisory services in a merger or specific transaction to the companies referred to in this report, as on the date of this report or in the past. Neither Angel Broking Pvt. Limited, nor its directors, employees or affiliates shall be liable for any loss or damage that may arise from or in connection with the use of this information. Note: Please refer to the important `Stock Holding Disclosure' report on the Angel website (Research Section). Also, please refer to the latest update on respective stocks for the disclosure status in respect of those stocks. Angel Broking Pvt. Limited and its affiliates may have investment positions in the stocks recommended in this report.

Disclosure of Interest Statement

Tata Global Beverages

1. Analyst ownership of the stock

No

2. Angel and its Group companies ownership of the stock

No

3. Angel and its Group companies' Directors ownership of the stock

No

4. Broking relationship with company covered

No

Note: We have not considered any Exposure below ` 1 lakh for Angel, its Group companies and Directors

Ratings (Returns):

November 25, 2013

Buy (> 15%) Reduce (-5% to -15%)

Accumulate (5% to 15%) Sell (< -15%)

Neutral (-5 to 5%)

11