Integrated Diagnostics Holdings Plc

3^rd Quarter Results

Tuesday, 16 November 2021

Integrated Diagnostics Holdings Plc reports another set of record-breaking results on the back of strong demand across its entire portfolio

(Cairo and London) Integrated Diagnostics Holdings ("IDH," "the Group," or "the Company"), a leading consumer healthcare company with operations in Egypt, Jordan, Sudan and Nigeria, released today its reviewed financial statements and operational performance for the nine-month period ended 30 September 2021, reporting revenue of EGP 3,767 million, up 126% from the comparable period of 2020. Profitability remained at an all-time high, with normalised EBITDA¹ growing 180% year-on-year to reach EGP 1,992 million, and net profit recording a three-fold year-on-year increase recording EGP 1,148 million in 9M 2021. IDH's nine-month results were bolstered by a record-breaking third quarter which saw the Company outperform its already remarkable results from the first and second quarters of this year to deliver revenue and net profit quarter-on-quarter growth of 27% and 47%, respectively.

Financial Results

Key Operational Indicators

1 Normalised EBITDA is calculated as operating profit plus depreciation and amortization and excluding one-off fees incurred in 9M 2021 (EGP 29.0 million) related to the Company's dual listing on the EGX completed in May 2021.

2 Operating Profit excludes one-off fees incurred in 9M 2021 (EGP 29.0 million) related to the Company's dual listing on the EGX completed in May 2021.
 

Introduction

i.    Financial Highlights

·    Revenue increased by an impressive 126% year-on-year in 9M 2021 to EGP 3,767 million on the back of strong results across both the Company's Covid-19-related³ and conventional tests portfolios. Top-line growth for the period was supported by a 33% year-on-year increase in tests performed coupled with a 70% year-on-year rise in average price per test. Controlling for Covid-19-related tests, IDH's top-line expanded a solid 30% year-on-year in 9M 2021 as the Company's conventional test offering continues to pick up steam following widespread shutdowns and lockdowns at the early onset of covid. In Q3 2021, IDH outperformed its already impressive results from the first and second quarters of this year to deliver quarter-on-quarter revenue growth of 27% and year-on-year revenue growth of 105%.

·    Covid-19-related tests include both core Covid-19 tests (Polymerase Chain Reaction (PCR), Antigen, and Antibody) as well as other routine inflammatory and clotting markers including, but not limited to, Complete Blood Picture, Erythrocyte Sedimentation Rate (ESR), D-Dimer, Ferritin and C-reactive Protein (CRP), which the Company opted to include in the classification as "other Covid-19-related tests" due to the strong rise in demand for these tests witnessed following the outbreak of Covid-19. More specifically, during 9M 2021 core Covid-19 tests made up 42% of consolidated revenue, while other Covid-19-related tests made a 9% contribution to consolidated revenue for the nine-month period.

·    Consolidated revenues continued to be supported by IDH's house call service in Egypt and Jordan. Revenue generated by the service expanded 146% year-on-year in 9M 2021, with its contribution to total revenue reaching 20% versus 19% in 9M 2020. Through its house call service, IDH successfully served over 944 thousand patients in 9M 2021 (up 69% versus 9M 2020), performing 4.9 million tests (up 34% year-on-year). In response to the service's increasingly popularity, the Company has been expanding its house call capabilities and in 9M 2021 was able to carry out an average of 3,500 house call visits per day, up remarkably from the 2,000 visits per day performed in 9M 2020.

·    Gross Profit recorded EGP 2,167 million in 9M 2021, up 161% year-on-year, with gross profit margin at 58% or an eight percentage points expansion versus last year. Improved gross profitability for the period came on the back strong top-line growth and the subsequent dilution of fixed costs for the period such as direct salaries and wages and other expenses. On a quarterly basis, gross profit recorded EGP 861 million, up 29% from Q2 2021 and with an associated margin of 58% versus 57% last quarter.

·    Operating Profit⁴ posted a strong 217% year-on-year rise in 9M 2021 to EGP 1,823 million. Operating profit margin expanded an impressive 14 percentage points to reach 48% in 9M 2021 versus 34% this time last year. The remarkable growth in operating profit was supported by strong gross profitability for the period. Operating profitability was further buoyed by the normalisation of provisions booked in 9M 2021, which stood at EGP 18 million down from the EGP 36 million in 9M 2020 that had been booked to account for expected credit losses in accordance with IFRS 9.

·    Normalised EBITDA⁵ increased 180% year-on-year to EGP 1,992 million in 9M 2021, while EBITDA margin expanded 10 percentage points to record 53% for the period. Strong EBITDA profitability was supported by the Company's remarkable top-line growth and the subsequent dilution of its fixed costs. In Q3 2021, normalised EBITDA reached EGP 790 million, up a solid 31% from last quarter's figure. Normalised EBITDA margin stood at 54% for the quarter compared to 52% in Q2 2021.

·    Net Profit recorded EGP 1,148 million in 9M 2021, a three-fold increase from the same period of last year. Net profit margin stood at 30% versus 22% in 9M 2020. Net profit growth comes on the back of strong EBITDA level profitability and despite the Company booking EGP 29 million in one-off fees related to its dual-listing in May 2021. On a quarterly basis, net profit stood at EGP 480 million, up 47% quarter-on-quarter and with an associated margin of 33% in Q3 2021 versus 28% the previous quarter.

·    Full-year guidance: IDH is on track to deliver record high revenues of around EGP 4.9 billion in FY 2021 (representing year-on-year growth above the 80% mark) with a normalised EBITDA margin⁵ in the 50% range. The record-breaking performance is set to be supported by the strong and sustained recovery witnessed by IDH's conventional business coupled with robust contributions coming from its Covid-19-related test offering in both Egypt and Jordan.

³ Covid-19-related tests include both core Covid-19 tests (Polymerase Chain Reaction (PCR), Antigen, and Antibody) as well as other routine inflammatory and clotting markers including, but not limited to, Complete Blood Picture, Erythrocyte Sedimentation Rate (ESR), D-Dimer, Ferritin and C-reactive Protein (CRP), which the Company opted to include in the classification as "other Covid-19-related tests" due to the strong rise in demand for these tests witnessed following the outbreak of Covid-19.

⁴ Operating Profit excludes one-off fees incurred in 9M 2021 (EGP 29.0 million) related to the Company's dual listing on the EGX completed in May 2021.

⁵ Normalised EBITDA is calculated as operating profit plus depreciation and amortization and minus one-off fees incurred in 9M 2021 (EGP 29 million) related to the Company's EGX listing completed in May 2021.

ii.  Operational Highlights

·    IDH's branch network stood at 507 branches as of 30 September 2021, up from 481 branches and 495 branches as of 31 December 2020 and 30 June 2021, respectively.

·    Total tests performed increased 33% year-on-year to reach 25.0 million in 9M 2021. Test volume growth came on the back of both strong demand for IDH's Covid-19-related⁶ test offering coupled with a 20% year-on-year increase in conventional tests performed by the Group during the nine-month period. During the third quarter of the year, IDH performed 8.6 million tests, up 5% from the previous quarter supported by both higher Covid-19-related and conventional tests performed during the quarter.

·    Average revenue per test increased 70% year-on-year to EGP 151 in 9M 2021. Controlling for the generally higher value Covid-19-related⁶ tests, average revenue per test records an 8% increase versus last year.

·    Total patients served reached 7.5 million in 9M 2021, an increase of 56% from the comparable period of last year. Meanwhile, average test per patient declined to 3.3 in 9M 2021 from 3.9 last year as an increasing number of patients visit the Group's labs for single Covid-19 tests (PCR, Antigen and Antibody).

·    IDH's Egyptian operations generated revenue of EGP 3,122 million, up 122% from 9M 2020 as both patient and test volumes posted solid year-on-year expansions for the period. The country's top-line growth continued to be supported by both Covid-19-related⁶ and conventional tests, and was further bolstered by the Group's house call service which in 9M 2021 contributed 23% of Egypt's top-line versus 20% in 9M 2020. Controlling for Covid-19-related contributions in 9M 2021, revenue increased 30% year-on-year driven by a 21% increase in conventional tests performed versus last year.

·    Al-Borg Scan reported revenue of EGP 31 million, up 92% increase compared to 9M 2020. Top-line growth at the venture was supported by a 75% year-on-year rise in tests performed. To capitalise on the rising patient demand for IDH's radiology service, the Group inaugurated a third Al-Borg Scan branch in of the end of September 2021, with an additional two branches set to come online over the coming six months.

·    Wayak reported standalone revenues of EGP 6.6 million in 9M 2021, up from EGP 2.1 million this time last year. The venture's standalone EBITDA losses continued to narrow reaching EGP 1.1 million in 9M 2021 from EGP 6.4 million in 9M 2020, supported by management's cost optimisation strategy.

·    In Jordan, revenue expanded 172% year-on-year during 9M 2021 supported by solid growth in both tests performed and average price per test. Covid-19-related tests made up 62% of the country's top-line with the contribution further bolstered by Biolab's multiple revenue-sharing partnerships with Amman's Queen Alia International Airport (QAIA), Aqaba's King Hussein International Airport (KHIA) and Aqaba Port. The agreements, which see Biolab operate multiple testing stations primarily offering Covid-19-related tests, generated a total of EGP 141 million in 9M 2021, contributing 24% to Jordan's top-line. In parallel, demand for Biolab's conventional test offering continues to increase steadily, with the number of conventional tests performed and revenue generated during 9M 2021 increasing 32% and 35% year-on-year, respectively.

·    In Nigeria, revenues expanded 62% year-on-year (65% in NGN terms) in 9M 2021 supported by a 24% and 43% year-on-year increase in patients served and tests performed, respectively. Echo-Lab's revenues have been posting consistent quarter-on-quarter growth since the start of the year, and when combined with the successful cost optimisation strategy implemented by the venture's new management team, see Echo-Lab on track to turn EBITDA positive early next year.

⁶ Covid-19-related tests include both core Covid-19 tests (Polymerase Chain Reaction (PCR), Antigen, and Antibody) as well as other routine inflammatory and clotting markers including, but not limited to, Complete Blood Picture, Erythrocyte Sedimentation Rate (ESR), D-Dimer, Ferritin and C-reactive Protein (CRP), which the Company opted to include in the classification as "other Covid-19-related tests" due to the strong rise in demand for these tests witnessed following the outbreak of Covid-19.

iii. Management Commentary

Commenting on the Group's performance, IDH Chief Executive Officer Dr. Hend El-Sherbini said: "As we near the end of what is shaping out to be another record-breaking year for IDH, I am delighted to present to you a new set of impressive financial and operational results. During the third quarter of 2021, we successfully built on an already remarkable first half of the year to report our highest ever revenue and net profit figures for a single quarter. More specifically, during Q3 2021 we recorded top- and bottom-line quarter-on-quarter growth of 27% and 47%, respectively, an outstanding performance which was supported by growing demand across our entire offering. While our Covid-19-related⁷ offering continued to make a significant contribution to consolidated revenue, we also witnessed a robust contribution coming from our traditional offering with conventional revenues for Q3 2021 and 9M 2021 up 19% and 30% year-on-year, respectively. It is also worth highlighting that our conventional test volumes are back to pre-Covid-19 levels on both a quarterly and year-to-date basis, and in 9M 2021 recorded a 3% increase versus the same nine months of 2019 once adjusting for the impact of the 100 Million Healthy Lives campaign.⁸

Since the start of the year, we have displayed a remarkable ability to adapt to changing market and demand dynamics and consistently cater to the evolving needs of our growing patient base. In the third quarter, we continued to effectively care for both our conventional and Covid-19 patients leveraging an expanded branch network, a ramped up house call service, and a growing digital presence to make our services increasingly accessible and our payment methods increasingly convenient. On the one hand, we are continuing to serve our Covid-19 patients by ensuring we are well-equipped to handle peaks in demand when infection rates increase, while promptly adapting our offering to the requirements of patients. Over the course of the year, IDH secured multiple partnerships with international air carriers and regional healthcare providers like National Air Services (NAS) and Pure Health UAE to conduct PCR testing for passengers traveling from Egypt to other regional destinations. We also offer PCR testing for passengers on a walk-in basis, with the Company being the first lab in Egypt to provide QR codes on travel certificates. This enabled us to not only to play an important role in supporting the recovery of international travel, but also ensured that we successfully captured a leading market share for the service. On the other hand, despite the challenges posed by the pandemic, we have never lost sight of the needs of our conventional patients, continuing to care for them even at the height of the Covid-19 crisis. Our efforts have focused on expanding our service offering and delivery capabilities, as well as organising special campaigns to raise healthcare awareness specifically targeting patients suffering from chronic diseases, a particularly vulnerable category in light of the ongoing pandemic.

Looking at our geographies in more detail, I am pleased to note that Egypt, Jordan and Nigeria continued to report strong growth during the third quarter of the year. Highlights for Q3 2021 include the outstanding growth of Al-Borg Scan, the continued ramp up of our house call services and of our AI-focused subsidairy Wayak, and the important contributions coming from our revenue-sharing partnerships in Jordan. During the quarter, Al-Borg Scan reported year-on-year revenue growth of 52% and successfully rolled out its third branch located in the strategic East Cairo neighbourhood of Heliopolis. The launch comes as part of a wider ramp up strategy which in the coming six months will see us roll out an additional two branches. Meanwhile, our house call services in both Egypt and Jordan are continuing to record steady growth, and in Q3 2021 we served 39% more house call patients than in the comparable quarter of last year. Through our house call service, we are able to carry out more tests per patient than at our traditional branches, enabling us to deliver on an important pillar of our long-term growth strategy and further emphasising the significant potential offered by the service well beyond the end of the Covid-19 pandemic. Meanwhile, operations at Wayak continued to be ramped up effectively, with the venture's losses declining further, supported by strong top-line growth and management's cost optimisation strategy. In Jordan, our multiple revenue-sharing agreements with QAIA, KHIA and Aqaba Port, made a noteworthy 46% contribution to the country's topline for the quarter, with their positive impact on Biolab's top-line set to continue in the coming months as international travel recovers further. In Nigeria, EBITDA losses excluding a one-time adjustment continued their steady narrowing. Revenue at Echo-Lab has been consistently growing quarter-on-quarter throughout 2021, and when combined with the stellar work being done by the company's new management team to streamline operations, sees the venture on track to turn EBITDA positive early next year. Finally, in Sudan our results continued to be heavily impacted by the Sudanese Pound devaluation from earlier in the year. Moreover, we are continuing to monitor the mounting political and social unrest across the country, and our management team on the ground is well-prepared to take the necessary measures to protect our patients, staff, and operations.

Looking ahead, our strategic priorities remain unchanged as we continue assisting local authorities in their battle against Covid-19 while simultaneously pressing forward with our post-pandemic strategy and set the foundations for a new chapter of sustainable growth. On this front, during the quarter we launched our new loyalty programme specifically aimed at retaining the new patients we were able to acquire since the start of the pandemic. At the same time, we rolled out an additional 12 branches in Q3 2021, and remain on track to reach our target of 30 to 35 new branch rollouts in 2021. Our ability to consistently rollout new branches currently sees us operate the largest network of branches amongst private players in the country and enables us to maintain our leadership position in the market. We are also continuing to assess potential value-accretive acquisition opportunities in new markets across Africa, the Middle East, and Asia where we feel our business model is best-suited to capitalise on healthcare and consumer trends similar to those prevailing in our current markets of operation. Finally, while the ongoing global supply chain disruptions have had no impacts on our operations so far, we are keeping a close eye on the evolving situation and have taken proactive steps to build up our inventory to shield ourselves from any potential future disruptions. It is also worth highlighting that our test kits are purchased on fixed-price contracts with tenors ranging from five to seven years, providing effective protection from short-term price fluctuations.

In light of our most recent results, we are on track to post record revenues of around EGP 4.9 billion in FY 2021, representing a year-on-year growth above the 80% mark, with a normalised EBITDA margin⁹ in the 50% range. The record-breaking performance is expected to come on the back of strong and sustained recovery witnessed at our conventional business coupled with robust contributions from our Covid-19-related test offering in both Egypt and Jordan."

- End -

⁷ Covid-19-related tests include both core Covid-19 tests (Polymerase Chain Reaction (PCR), Antigen, and Antibody) as well as other routine inflammatory and clotting markers including, but not limited to, Complete Blood Picture, Erythrocyte Sedimentation Rate (ESR), D-Dimer, Ferritin and C-reactive Protein (CRP), which the Company opted to include in the classification as "other Covid-19-related tests" due to the strong rise in demand for these tests witnessed following the outbreak of Covid-19.

⁸ The 100 Million Healthy Lives Campaign which ran from November 2018 through June 2019. As part of the Campaign, the Group performed 2.4 million tests in 1H 2019.

⁹ Normalised EBITDA is calculated as operating profit plus depreciation and amortization and minus one-off fees incurred in 9M 2021 (EGP 29 million) related to the Company's EGX listing completed in May 2021.

¹⁰ Covid-19-related tests include both core Covid-19 tests (Polymerase Chain Reaction (PCR), Antigen, and Antibody) as well as other routine inflammatory and clotting markers including, but not limited to, Complete Blood Picture, Erythrocyte Sedimentation Rate (ESR), D-Dimer, Ferritin and C-reactive Protein (CRP), which the Company opted to include in the classification as "other Covid-19-related tests" due to the strong rise in demand for these tests witnessed following the outbreak of Covid-19.

Analyst and Investor Call Details

An analyst and investor call will be hosted at 1pm (UK) | 3pm (Egypt) on Thursday, 18 November 2021. You can access the call by clicking on this link, and you may dial in using the conference call details below:

• Event number: 2374 489 7777

• Event password: C5wWfFNBa46

For more information about the event, please contact: halaa@EFG-HERMES.com 

About Integrated Diagnostics Holdings (IDH)

IDH is a leading consumer healthcare company in the Middle East and Africa with operations in Egypt, Jordan, Sudan and Nigeria. The Group's core brands include Al Borg, Al Borg Scan and Al Mokhtabar in Egypt, as well as Biolab (Jordan), Ultralab and Al Mokhtabar Sudan (both in Sudan) and Echo-Lab (Nigeria). A long track record for quality and safety has earned the Company a trusted reputation, as well as internationally recognised accreditations for its portfolio of over 2,000 diagnostics tests. From its base of 507 branches as of 30 September 2021, IDH will continue to add laboratories through a Hub, Spoke and Spike business model that provides a scalable platform for efficient expansion. Beyond organic growth, the Group's expansion plans include acquisitions in new Middle Eastern, African, and East Asian markets where its model is well-suited to capitalise on similar healthcare and consumer trends and capture a significant share of fragmented markets. IDH has been a Jersey-registered entity with a Standard Listing on the Main Market of the London Stock Exchange (ticker: IDHC) since May 2015 with a secondary listing on the EGX since May 2021 (ticker: IDHC.CA).

Shareholder Information

LSE: IDHC.L

EGX: IDHC.CA

Bloomberg: IDHC:LN

Listed on LSE: May 2015

Listed on EGX: May 2021

Shares Outstanding: 600 million

Contact

Nancy Fahmy

Investor Relations Director

T: +20 (0)2 3345 5530 | M: +20 (0)12 2255 7445 | nancy.fahmy@idhcorp.com

Forward-Looking Statements

These results for the nine-month period ended 30 September 2021 have been prepared solely to provide additional information to shareholders to assess the group's performance in relation to its operations and growth potential. These results should not be relied upon by any other party or for any other reason. This communication contains certain forward-looking statements. A forward-looking statement is any statement that does not relate to historical facts and events, and can be identified by the use of such words and phrases as "according to estimates", "aims", "anticipates", "assumes", "believes", "could", "estimates", "expects", "forecasts", "intends", "is of the opinion", "may", "plans", "potential", "predicts", "projects", "should", "to the knowledge of", "will", "would" or, in each case their negatives or other similar expressions, which are intended to identify a statement as forward-looking. This applies, in particular, to statements containing information on future financial results, plans, or expectations regarding business and management, future growth or profitability and general economic and regulatory conditions and other matters affecting the Group.

Forward-looking statements reflect the current views of the Group's management ("Management") on future events, which are based on the assumptions of the Management and involve known and unknown risks, uncertainties and other factors that may cause the Group's actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by these forward-looking statements. The occurrence or non-occurrence of an assumption could cause the Group's actual financial condition and results of operations to differ materially from, or fail to meet expectations expressed or implied by, such forward-looking statements.

The Group's business is subject to a number of risks and uncertainties that could also cause a forward-looking statement, estimate or prediction to differ materially from those expressed or implied by the forward-looking statements contained in this communication. The information, opinions and forward-looking statements contained in this communication speak only as at its date and are subject to change without notice. The Group does not undertake any obligation to review, update, confirm or to release publicly any revisions to any forward-looking statements to reflect events that occur or circumstances that arise in relation to the content of this communication.
 

Group Operational & Financial Review

i.    Revenue and Cost Analysis

ii.  Balance Sheet Analysis

Assets

Property, Plant and Equipment

IDH held gross property, plant and equipment (PPE) of EGP 1,569 million as at 30 September 2021, up from the EGP 1,256 million as of 31 December 2020. Meanwhile, CAPEX outlays represented around 8% of consolidated revenues in 9M 2021. The increase in CAPEX outlays as a share of total revenue is partially due to the EGP 149 million in equipment related to the SPA (Reagent deals) and the EGP 48.7 million spent on a new radiology branch (CBP) during the period.

Total CAPEX Breakdown

Accounts Receivable and Provisions

As at 30 September 2021, accounts receivables' Days on Hand (DOH) stood at 107 days compared to 144 days at year-end 2020, continuing to highlight a sustained improvement in collections versus 2020. Accounts receivables' DOH is calculated based on credit revenues amounting to EGP 967 million during 9M 2021.

The receivables balance in Egypt and Jordan stood at EGP 376 million as of 30 September 2021. More specifically, in Egypt account receivables' DOH declined to 96 days as at 30 September 2021 compared to 145 days as at 31 December 2020. Accounts receivables' DOH for Egypt is calculated based on credit revenues amounting to EGP 812 million during 9M 2021. Meanwhile, in Jordan accounts receivables' DOH increased from 150 days to 172 days largely due to recent agreements with various airline companies as part of QAIA and KHIA agreements. Accounts receivables' DOH for Jordan is calculated based on credit revenues amounting to EGP 144 million during 9M 2021.

Provision for doubtful accounts established during the nine months to 30 September 2021 amounted to EGP 18 million, down from the EGP 36 million booked in the comparable nine-month period of last year.

Inventory

As at 30 September 2021, the Group's inventory balance reached EGP 190 million, up from EGP 100 million as at year-end 2020. Days Inventory Outstanding (DIO) decreased to 59 days as at 30 September 2021 from 72 days as at year-end 2020. The decline is mainly due to the high turnover of PCR testing for Covid-19.

Cash and Net Debt/Cash

IDH's cash balances increased to EGP 1,807 million as at 30 September 2021 compared to EGP 877 million as at 31 December 2020.

Net cash balance¹⁸ amounted to EGP 1,013 million as at 30 September 2021, an increase of 215% compared to EGP 321 million as at 31 December 2020.

Lease liabilities on property stood at EGP 475 million as at 30 September 2021 versus the EGP 390 million booked as at year-end 2020. The increase is attributable to the addition of new branches during 9M 2021 including Al-Borg Scan's third branch which came online at the start of October 2021. Meanwhile, financial obligations related to equipment recorded EGP 215 million as at 30 September 2021, up from EGP 69 million as at year-end 2020. This increase reflects the renewal of the Company's contracts and the addition of new equipment. Finally, the increase partially reflects a rise in the interest bearing debt related to IDH's two medium term facilities with Commercial International Bank (CIB) and Ahli United Bank of Egypt (AUBE). More specifically, IDH's interest bearing debt as at 30 September 2021 is split as EGP 27.2 million related to its medium term facility with CIB and EGP 76.1 million to its facility with AUBE. It is worth noting that interest bearing debt in both periods includes accrued interest.

¹⁸ The net cash balance is calculated as cash and cash equivalent balances less interest-bearing debt (medium term loans), finance lease and Right-of-use liabilities.

¹⁹ IDH's interest bearing debt as at 30 September 2021 is split as EGP 27.2 million related to its medium term facility with the Commercial International Bank (CIB) and EGP 76.1 million to its facility with Ahli United Bank Egypt (AUBE).

Liabilities

Accounts Payable

As at 30 September 2021, accounts payable balance stood at EGP 292 million up from EGP 178 million as at year-end 2020. However, the Group's days payable outstanding (DPO) stood at 95 days as at 30 September 2021 down from 127 days as year-end 2020. The decline primarily reflects the fact that PCR testing kit suppliers are paid within a period of 15 days.

iii. Cash Flow Analysis

Net cash flow from operating activities recorded EGP 1,641 million in 9M 2021 compared to EGP 370 million in 9M 2020, continuing to display the Company's strong cash generation ability.

-End-