Company Update | Automobile

February 22, 2012

MRF
Performance Highlights
Y/E Sept. (` cr) Net sales EBITDA EBITDA margin (%) Reported PAT 1QSY12 2,875 258 9.0 113 1QSY11 2,167 243 11.2 103 % chg (yoy) 32.7 5.9 (226)bp 9.7 4QSY11 % chg (qoq) 2,620 181 6.9 395 9.8 42.6 206bp (71.4)

BUY
CMP Target Price
Investment Period
Stock Info Sector Market Cap (` cr) Beta 52 Week High / Low Avg. Daily Volume Face Value (`) BSE Sensex Nifty Reuters Code Bloomberg Code Automobile 3,988 0.7 10,005 / 5,527 4,727 10 18,145 5,505 MRF.BO MRF IN

`9,407 `11,343
12 Months

Source: Company, Angel Research

MRF reported revenue growth of 32.7% yoy to `2,875cr during 1QSY2012. The companys EBITDA margin contracted by 226bp yoy to 9.0% from 11.2% in 1QSY2011 on account of increased raw-material cost on the back of higher rubber prices. The company reported net profit growth of 9.7% yoy to `113cr in 1QSY2012 as compared to `103cr in 1QSY2011. Increasing demand and radialization to improve future prospects for MRF: Growing demand in the tyre industry is expected to give a momentum to the companys revenue going forward, since MRF is a market leader in the Indian tyre market. Moreover, we expect the companys EBITDA margin to expand due to an industry shift to radialization across all tyre segments. Also, rubber prices have declined by ~31% from `243/kg in April 2011 to `185/kg as on February 20, 2012 this would further lead to margin expansion. Thus, we expect EBITDA margin to expand by 186bp over SY2011-13E, from 8.3% in SY2011 to 10.1% in SY2013E. Outlook and valuation: We expect MRFs revenue to post an 18.6% CAGR over SY2011-13E, aided by a conservative 8.5% CAGR volume growth and a ~7.5% increase in realization over the same period. However, adjusted net profit is expected to witness a CAGR of 25% over SY2011-13E to `534cr. At `9,407, MRF is trading at PE of 7.5x its SY2013E earnings. We maintain our Buy recommendation on the stock with a revised target price of `11,343, based on a target P/E of 9.0x for SY2013E earnings.

Shareholding Pattern (%) Promoters MF / Banks / Indian Fls FII / NRIs / OCBs Indian Public / Others 27.0 12.0 26.2 34.8

Abs. (%) Sensex MRF

3m 13.0 45.2

1yr

3yr

(0.8) 105.7 61.6 471.6

Key financials
Y/E Sept. (` cr) Net Sales % chg Net Profit % chg EBITDA (%) EPS (`) P/E (x) P/BV (x) RoE (%) RoIC (%) EV/Sales (x) EV/EBITDA (x)
Source: Company, Angel Research

SY2010 7,453 31.6 348 39.7 11.0 820 11.5 2.4 22.8 28.0 0.7 6.4

SY2011 9,743 30.7 343 0.0 8.3 808 11.6 1.7 14.9 16.0 0.6 8.3

SY2012E 11,883 22.0 456 33.1 9.6 1,076 8.7 1.5 16.5 20.3 0.6 5.8

SY2013E 13,710 15.4 534 17.2 10.1 1,260 7.5 1.2 17.3 18.2 0.5 5.2

Shareen Batatawala
+91- 22- 3935 7800 Ext: 6849 shareen.batatawala@angelbroking.com

Please refer to important disclosures at the end of this report

MRF | Company Update

Exhibit 1: 1QSY2012 performance

Y/E Sept. (` cr) Net Sales Net raw material (% of Sales) Staff Costs (% of Sales) Other Expenses (% of Sales) Total Expenditure Operating Profit OPM Interest Depreciation Other Income PBT (% of Sales) Tax (% of PBT) Extraordinary income Reported PAT PATM Equity capital (cr) EPS (`)
Source: Company, Angel Research

1QSY12 2,875 2,110 73.4 118 4.1 390 13.6 2,618 258 9.0 32 65 3.9 165 5.7 52 31.5 113 3.9 4 266.2

1QSY11 2,167 1,509 69.6 100 4.6 315 14.5 1,924 243 11.2 21 76 4.8 151 7.0 48 31.9 103 4.7 4 242.7

yoy chg (%) 32.7 39.8 17.9 24.0 36.1 5.9 52.1 (14.5) (17.3) 9.0 7.6

4QSY11 2620 1,921 73.3 120 4.6 398 15.2 2,439 181 6.9 27 68 2.7 88 3.4 177 201.1 (484.1)

qoq chg (%) 9.8 9.8 (1.8) (1.8) 7.3 42.6 19.2 (5.2) 47.2 86.8 (70.7)

SY11 9,743 7,107 72.9 447 4.6 1385 14.2 8,938 805 8.3 93 248 25 489 5.0 274 56.0 404.2

SY10 7,453 5,015 67.3 371 5.0 1249 16.8 6,636 817 11.0 63 261 42 535 7.2 181 33.8 0.0 354 4.8 4 835.2

% chg 30.7 41.7 20.3 10.8 34.7 (1.4) 47.4 (5.0) (39.7) (8.5) 51.9

9.7

(573) (21.9) 4

(119.7)

619 6.4 4

74.9

9.7

(1,352)

(119.7)

1,461

74.9

Stable rubber price + Better realization = Normalized OPM

During 1QSY2012, MRF reported a 32.7% yoy increase in its revenue, from `2,167cr in 1QSY2011 to `2,875cr in 1QSY2012, on the back of increased realization. Furthermore, the companys EBITDA margin expanded by 206bp on a sequential basis to 9.0% from 6.9% in 4QSY2011 on account of a ~31% decline in rubber prices from April 2011 to February 2012. Net profit increased by 9.7% yoy to `113cr in 1QSY2012 from `103cr in 1QSY2011.

February 22, 2012

MRF | Company Update

Investment rationale
Indian tyre industry Demand, a growth driver
The Indian tyre industry has a size of `30,000cr (as of September 2011), of which exports contribute `3600cr. The industry is classified into commercial vehicle tyres (71%) and passenger vehicle tyres (22%). Commercial vehicle tyres include medium and heavy commercial vehicles (MHCV, 55%), light commercial vehicles (LCV, 8%) and tractors (8%). Passenger vehicle tyres include passenger cars and MUVs (12%), motorcycles (7%) and scooters (3%). The three major segments of the tyre industry are original equipment (OE, 26%), replacement (63%) and exports (11%). The performance of the industry is influenced by the replacement segment due to a larger share of truck tyres (71%) in the product mix. The industry is a raw-material intensive industry, with raw material constituting about 66% of sales turnover and 70% of operational cost.

Exhibit 2: Tyre industry statistics

FY2011
Current capacity (MT/day) Current capacity (MT/year) Current sales (` cr) Revenue per MT (`) Investment per TPD@ (` cr) FY201114E CAGR for volume sales Total capacity by FY2014E (MT) Capacity added (MT) Total investment (` cr) Debt (` cr) Equity (` cr) Net profit in FY2011E (` cr) Net profit in FY2014E (` cr) Market capitalisation* (` cr) PE for FY2014E (x) 9% 2,930,466 667,608 11,569 5,785 7,231 950 2,410 9,348 3.9 6,429 2,262,857 59,507 262,972 6.1

Source: Angel Research; Note: Industry includes Apollo Tyres, MRF, Goodyear India, JK Tyre and CEAT, @TPD stands for tonne per day, *As on February 22, 2012

The current capacity of the tyre industry in India is ~22.6lakh MTPA with an assumption of 352 working days, thus leading to revenue per MT of `2.6lakh. Assuming a 9% CAGR for the next three years, the capacity is expected to increase by ~6.7lakh tonnes to ~29.3lakh tonnes in FY2014E. Currently, investment for expansion of one TPD is `6.1cr, of which `5cr is capex requirement and `1.1cr is working capital requirement. Hence, the total investment required for the next three years is `11,569cr. With the assumption of 1:1 debt-equity ratio and 20% dividend payout for the next three years, net profit for FY2014E is expected to stand at `2,410cr, resulting in PE of 3.9x its earnings.

February 22, 2012

MRF | Company Update

Radialization to drive profitability in the long term

Radialization in the commercial tyre segment is 1518% compared to 98% in the passenger vehicle tyre segment. Radial tyres are priced 20-25% higher than crossply tyres. Capital expenditure required for radialization is expected to reduce profitability in the short term. However, in the long term, we expect EBITDA margins to expand.

Exhibit 3: DuPont analysis of cross-ply tyres vs. radial tyres

` cr per TPD Investment per tonne (less) Accumulated depreciation Net investment per tonne Working capital per tonne Total investment Sales Expenses Operating profit Depreciation Interest cost PBT Tax PAT OPM (%) RoE (%) RoCE (%)
Source: Angel Research

Cross-ply 2.0 1.0 1.0 0.9 1.9 4.6 4.2 0.4 0.1 0.1 0.2 0.1 0.1 9.0 13.6 15.8

Radial 5.0 5.0 1.1 6.1 5.5 4.4 1.1 0.2 0.3 0.6 0.2 0.4 20.6 13.6 15.8

Manufacturing of radial tyres is far more capital intensive than cross-ply tyres as investment per TPD for radial is almost 3.2x of cross-ply at `6.1cr. Radial tyres are priced ~20% higher than cross-ply tyres. Taking into account the differences in capital requirements and the consequent impact on asset turnover, interest costs and depreciation, to generate similar RoCE and RoE, tyre companies would need to earn EBITDA margin of ~21% as compared to about 9% being earned on cross-ply tyres. This assumption also implies a 5% higher operating expense per TPD in absolute terms for radials. Hence, we expect margins to increase in the long term, thus leading to a 25% CAGR in net profit over SY2011-13E.

February 22, 2012

MRF | Company Update

Financial performance
Exhibit 4: Key assumptions
SY2012E Change in tyre realization Change in rubber price
Source: Angel Research

SY2013E 5.0 5.0

6.0 -

Exhibit 5: Change in estimates

Y/E Sept. Net sales (` cr) OPM (%) EPS (`)
Source: Angel Research

Earlier estimates SY2012E 11,368 8.5 972 SY2013E 12,685 9.3 1,206

Revised estimates SY2012E 11,883 9.6 1,076 SY2013E 13,710 10.1 1,260

% chg SY2012E 4.5 116bp 10.7 SY2013E 8.1 86bp 4.5

Improved tyre realization to help post better revenue

We expect MRF to post a revenue CAGR of 18.6% over SY2011-13E, from `9,743cr in SY2011 to `13,710cr in SY2013E, on the back of improved tyre realization.

Exhibit 6: Revenue and revenue growth

16000 14000 12000 10000 35 30 25

(` cr)

8000 6000 4000 2000 0 SY2008 SY2009 SY2010 SY2011E SY2012E SY2013E Revenue (LHS) Revenue growth (RHS)

15 10 5 0

Source: Company, Angel Research

February 22, 2012

(%)

20

MRF | Company Update

Expansion in EBITDA margin to improve profits

We expect the companys EBITDA margin to improve by 186bp over SY2011-13E, on account of stable rubber prices. Even though prices of other raw materials are witnessing an uptrend, their impact on the companys EBITDA margin is minimal, as rubber constitutes 66% of total raw-material cost. Change in the method of depreciation to straight line has led to lower depreciation cost (percent of gross block), which would add to profitability. Hence, we expect net profit to post a 25% CAGR over SY2011-13E.

Exhibit 7: EBITDA margin to bounce back

1600 1400 1200 1000 14 12 10

Exhibit 8: PAT and PAT growth

600 500 400 100 80 60 40 20 0 (20) (40) SY2008 SY2009 SY2010 SY2011E SY2012E SY2013E PAT (LHS) PAT growth (RHS)

(` cr)

(` cr)

(%)

800 600 400 200 0 SY2008 SY2009 SY2010 SY2011E SY2012E SY2013E EBITDA (LHS) EBITDA margin (RHS)

6 4 2 0 200 100 0

Source: Company, Angel Research

Source: Company, Angel Research

Outlook and valuation

We have revised our revenue and earnings estimates upwards due to increased prices of tyres and stabilizing rubber prices. At current levels, the stock is trading at PE of 7.5x SY2013E and P/B of 1.2x for SY2013E. We maintain our Buy recommendation on the stock with a revised target price of `11,343, based on a target P/E of 9.0x for SY2013E.

Exhibit 9: One-year forward P/E

15,000 12,000 9,000

(`)

6,000 3,000 0 Feb-07

Feb-08 Price

Feb-09 2x 5x

Feb-10 8x

Feb-11 11x

Feb-12

Source: Company, Angel Research

February 22, 2012

(%)

300

MRF | Company Update

Exhibit 10: Relative valuation

Year end Apollo Tyres MRF
Source: Company

Sales (` cr) 13,580 13,710

OPM (%) 10.2 10.1

PAT (` cr) 556 534

EPS (`) 11.0 1260.3

ROE (%) 12.9 17.3

P/E (x) 7.1 7.5

P/BV (x) 1.2 1.2

EV/EBITDA (x) 4.6 5.2

EV/Sales (x) 0.5 0.5

FY2013E SY2013E

Risks
Volatile rubber prices: Rubber is the major raw material used in the manufacture of tyres. Rubber price was at a high of `243/kg in April 2011; however, prices have come down to `185/kg as on February 20, 2012. Increased volatility in rubber prices would have a direct impact on the companys EBITDA margin and consequently the profit. Exhibit 11: Rubber price trend
300 250 200 12 9 6

(`/kg)

150 100 50 0

0 (3) (6) (9)

Rubber price
Source: Rubber Board (*MTD)

Change in price (%)

February 22, 2012

*Feb-12

Mar-11

Aug-11

May-11

Nov-11

Dec-11

Apr-11

Jul-11

Feb-11

Sep-11

Oct-11

Jun-11

Jan-12

(%)

MRF | Company Update

The company
MRF manufactures rubber products such as tyres, tubes, flaps, tread rubber and conveyor belts. The company is a market leader in the tyre industry with a ~30% market share currently.

Exhibit 12: Market share (India)

25.0 20.0 15.0 10.0 5.0 0.0 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10

Apollo tyres

MRF Ltd

JK tyres

Ceat tyres

Goodyear Tyres

Source: Industry, CRISIL Research

MRF is also a leader in the passenger car tyre segment with a 20.3% market share and holds a second position in the MHCV segment with a ~19.5% market share.

Exhibit 13: Product mix (tonnes)

Tractor 10% LCV 9% OTR 3% Motorcycle 10% Scooter 5%

MUV 2% MHCV 49%

Passenger cars 12%

Source: Industry, CRISIL Research

February 22, 2012

MRF | Company Update

Profit & Loss Statement (Standalone)

Y/E Sept. (` cr) Gross sales Less: Excise duty Net Sales Other operating income Total operating income % chg Net Raw Materials Other Mfg costs Personnel Other Total Expenditure EBITDA % chg (% of Net Sales) Depreciation& Amortisation EBIT % chg (% of Net Sales) Interest & other charges Other Income (% of sales) PBT % chg Tax (% of PBT) PAT (reported) Extraordinary (Expense)/Inc. ADJ. PAT % chg (% of Net Sales) Basic EPS (`) Fully Diluted EPS (`) % chg 2.7 326.9 326.9 67 31.6 145 6 139 SY2008 5,716 671 5,045 5,045 14.8 3,458 496 270 414 4,638 406 (6.4) 8.1 170 237 (15.6) 4.7 66 41 0.8 211 SY2009 6,142 478 5,664 5,664 12.3 3,710 505 311 457 4,981 682 67.9 12.0 249 433 82.8 7.6 69 34 0.6 398 88.5 145 36.5 253 4 249 79.5 4.4 586.7 586.7 79.5 SY2010 8,080 628 7,453 7,453 31.6 5,015 693 371 557 6,636 817 19.7 11.0 261 556 28.4 7.5 63 42 0.6 535 34.2 181 33.8 354 7 348 39.7 4.7 819.6 819.6 39.7 SY2011 10,645 902 9,743 9,743 30.7 7,107 779 447 605 8,938 805 (1.4) 8.3 248 557 0.2 5.7 93 25 0.3 489 (8.5) 274 56.0 215 (404) 619 78.2 6.4 808.4 808.4 (1.4) SY2012E 12,916 1,033 11,883 11,883 22.0 8,337 1,046 570 784 10,738 1,145 42.3 9.6 322 823 47.8 6.9 178 36 0.3 681 39.1 225 33.0 456 456 (26.4) 3.8 1,075.7 1,075.7 33.1 SY2013E 14,902 1,192 13,710 13,710 15.4 9,540 1,206 658 919 12,323 1,387 21.2 10.1 418 969 17.7 7.1 214 43 0.3 798 17.2 263 33.0 534 534 17.2 3.9 1,260.3 1,260.3 17.2

February 22, 2012

MRF | Company Update

Balance Sheet (Standalone)

Y/E Sept. (` cr) SOURCES OF FUNDS Equity Share Capital Preference Capital Reserves& Surplus Equity share warrants Shareholders Funds Minority Interest Total Loans Deferred Tax Liability Total Liabilities APPLICATION OF FUNDS Gross Block Less: Acc. Depreciation Net Block Capital Work-in-Progress Goodwill Investments Current Assets Cash Loans & Advances Inventory Debtors Current liabilities Net Current Assets Mis. Exp. not written off Total Assets 2,423 1,556 867 444 69 1,997 102 300 984 610 996 1,001 2,380 2,734 1,801 934 285 149 1,388 60 98 650 580 734 654 2,021 3,368 2,039 1,329 498 73 2,095 45 127 1,111 811 964 1,131 3,030 3,832 1,860 1,971 1,135 73 3,148 57 256 1,526 1,308 1,602 1,545 4,725 4,981 2,182 2,799 908 73 3,927 244 258 1,830 1,595 1,853 2,074 5,854 6,476 2,601 3,875 636 73 4,513 264 297 2,111 1,841 2,127 2,386 6,970 1,121 1,249 10 2,380 1,361 672 (12) 2,021 1,691 1,354 (15) 3,030 2,298 2,285 142 4,725 2,741 2,971 142 5,854 3,263 3,565 142 6,970 4 1,117 4 1,357 4 1,686 4 2,294 4 2,737 4 3,259 SY2008 SY2009 SY2010 SY2011 SY2012E SY2013E

February 22, 2012

10

MRF | Company Update

Cash Flow Statement (Standalone)

Y/E Sept. (` cr)
Profit before tax Depreciation Change in Working Capital Other income Direct taxes paid Cash Flow from Operations (Inc.)/Dec. in Fixed Assets (Inc.)/Dec. in Investments Other income Others Cash Flow from Investing Issue of Equity Inc./(Dec.) in loans Dividend Paid (Incl. Tax) Others Cash Flow from Financing Inc./(Dec.) in Cash Opening Cash balances Closing Cash balances

SY2008 SY2009 SY2010 SY2011 SY2012E SY2013E

211 170 (113) 67 (67) 269 (576) 12 41 (43) (566) 414 (10) (78) 326 29 73 102 398 249 305 40 (145) 847 (153) (73) 34 (41) (232) (577) (12) (67) (657) (42) 102 60 535 261 (492) 34 (181) 157 (844) 84 42 (68) (786) 682 (25) (43) 614 (15) 60 45 489 248 (403) 217 (274) 277 (1,101) 25 (35) (1,111) 931 (12) (73) 846 12 45 57 681 322 (342) (36) (225) 401 (922) 36 (887) 686 (13) 673 187 57 244 798 418 (293) (43) (263) 618 (1,222) 43 (1,179) 594 (13) 581 20 244 264

February 22, 2012

11

MRF | Company Update

Key Ratios
Y/E Sept.
Valuation Ratio (x) P/E (on FDEPS) P/CEPS P/BV Dividend yield (%) EV/Sales EV/EBITDA EV / Total Assets Per Share Data (`) EPS (Basic) EPS (fully diluted) Cash EPS DPS Book Value Dupont Analysis EBIT margin Tax retention ratio Asset turnover (x) ROIC (Post-tax) Cost of Debt (Post Tax) Leverage (x) Operating ROE Returns (%) ROCE (Pre-tax) Angel ROIC (Pre-tax) ROE Turnover ratios (x) Asset Turnover Inventory / Sales (days) Receivables (days) Payables (days) WC (ex-cash) (days) Solvency ratios (x) Net debt to equity Net debt to EBITDA Interest Coverage 1.0 2.7 3.6 0.3 0.7 6.3 0.7 1.5 8.8 0.9 2.7 6.0 1.0 2.3 4.6 1.0 2.3 4.5 2.3 71 44 78 61 2.2 42 37 54 48 2.4 54 40 53 41 2.7 57 49 65 48 2.7 57 49 63 51 2.4 57 49 63 53 11.2 14.7 13.2 19.6 26.1 20.0 21.9 28.0 22.8 11.8 16.0 14.9 15.5 20.3 16.5 15.1 18.2 17.3 4.7 0.7 2.8 9.1 4.3 1.0 13.8 7.6 0.6 3.7 17.9 4.6 0.3 22.4 7.5 0.7 3.1 15.0 4.1 0.7 23.0 5.7 0.7 2.8 11.0 2.8 0.9 18.7 6.9 0.7 2.6 11.9 4.5 1.0 19.0 7.1 0.7 2.3 10.8 4.4 1.0 17.2 326.9 326.9 23.4 586.7 586.7 29.2 819.6 819.6 58.3 808.4 808.4 25.0 1,075.7 1,075.7 1,834.9 30.0 6,464.9 1,260.3 1,260.3 2,247.4 30.0 7,695.3 28.8 12.9 3.6 0.2 1.0 12.5 2.1 16.0 8.0 2.9 0.3 0.8 6.5 2.2 11.5 6.6 2.4 0.6 0.7 6.4 1.7 11.6 6.8 1.7 0.3 0.6 8.3 1.3 8.7 5.1 1.5 0.3 0.6 5.8 1.1 7.5 4.2 1.2 0.3 0.5 5.2 1.0

SY2008 SY2009 SY2010 SY2011 SY2012E SY2013E

726.7 1,174.7 1,434.6 1,392.4 2,643.4 3,210.9 3,987.5 5,419.3

February 22, 2012

12

MRF | Company Update

Research Team Tel: 022 - 39357800

E-mail: research@angelbroking.com

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 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 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 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 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 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 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 Limited and its affiliates may have investment positions in the stocks recommended in this report.

Disclosure of Interest Statement 1. Analyst ownership of the stock 2. Angel and its Group companies ownership of the stock 3. Angel and its Group companies' Directors ownership of the stock 4. Broking relationship with company covered

MRF Ltd. No No No No

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

Ratings (Returns):

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

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

Neutral (-5 to 5%)

February 22, 2012

13