Firstrand Limited JSE : FSR Johannesburg, South Africa Common Shares ZAR

Due Diligence Research Report, 1.10.2018

FirstRand Limited JSE : FSR Johannesburg, South Africa Common Shares ZAR

This report outlines the opinions of analysts covering the security listed above. A security snapshot is provided in the executive summary with an appropriate consensus rating.

Ivan Struk, Head of Research, [email protected], +43 681 8161 2104 Ivan Pavlovic, Analyst, [email protected], +381 64 4062 124

Press & Publications General Inquiries [email protected] [email protected] +1 (917) 26 77 980 +1 (917) 26 77 980

Please consider our disclaimer page provided at the end of the document.

Table of Contents

EXECUTIVE SUMMARY - 3 -

MARKET CAPITALIZATION - 4 -

PROFITABILITY - 6 -

COMPETITORS - 7 - EXISTING RETAIL BANKS - 7 - NEW ENTRANTS - 7 -

VALUATION MULTIPLES - 8 -

BALANCE SHEET - 9 -

HISTORICAL PERFORMANCE - 11 -

EXPECTATIONS - 12 - TECHNOLOGY DRIVEN REVENUES - 12 - MACROECONOMIC OUTLOOK - 13 - EMPLOYMENT TRENDS REMAIN A CONCERN. - 13 -

RISKS - 15 - FOREIGN EXCHANGE RISK - 15 - POLITICAL UNCERTAINTY - 15 - NEW ENTRANTS - 15 -

DISCLAIMER: - 16 -

APPENDIX - 17 -

Executive Summary

FirstRand Group Limited is a South African financial services provider with a diverse scope of operations that covers full-service commercial banking and investment banking and asset management services across South Africa and many other sub-Saharan regions. Increasingly favourable market expectations facilitating growth across the region coupled with the company’s solid track record make these company securities attractive for investors. This report analyses the company’s performance, profitability, while comparing and scoring competitors within the region.

The South African Banking sector consists of several major banking institutions that all compete for market capitalization. FirstRand has the largest market share, boasting a 27.15 B USD market cap1, however according to the South African Reserve Bank Standard Bank is the largest bank by asset value.

South African Banking Sector Market Capitalization of Largest Institutions (USD Bn)

30.00

25.00 27.15 20.00

15.00 19.81

10.00 9.01 9.15 5.00 7.75 7.19 0.00 FirstRand Capitec Bank Standard Bank Absa Group Nedbank Group Investec Holdings Group

Banks in South Africa Market Capitalization by Assets (USD M)

$100,000 $90,000 $80,000 $70,000 $60,000 $50,000 $40,000 $30,000 $20,000 $10,000 $- Standard FirstRand Absa Nedbank Investec Capitec Others Bank Bank Assets (USD Mil) $87,385 $78,046 $68,480 $62,117 $28,920 $6,061 $6,881

FirstRand LTD is effectively one of the largest financial holding companies in South Africa. The company includes six subsidiaries that make up a portfolio of companies covering the full scope of financial management in South Africa, United Kingdom, and sub-Saharan Africa.

v FirstRand Bank Limited (FRB): Representing subsidiaries consistent of bank divisions, branches, and representative offices across Africa and the rest of the world.

v FirstRand EMA Holdings (Pty) Limited (FREMA): This group is consistent of commercial banking institutions across Africa.

v FirstRand International Limited (Guernsey) (FRI): The UK banking division, only consisting of Aldermore Group plc.

1 https://www.bloomberg.com/quote/FSR:SJ

v FirstRand Insurance Holdings (Pty) Limited: FirstRand’s division group which encompasses all of the company’s insurance service operations.

v FirstRand Investment Management Holdings Limited: Investment activities and services and asset management. This group includes Ashburton Management, which provides commercial mutual funds and money market funds internationally.

v FirstRand Investment Holdings (Pty) Limited (FRIHL): This group consists of all other operations of FirstRand, which includes Private Equity initiatives, securities and market instruments, and a joint venture with RMB Morgan Stanley.

The total scope of operations for FirstRand spans India, China, United Kingdom, South Africa, and many other sub-Saharan nations. The company has almost doubled its market capitalization within Africa over the last 5 years.

Profitability

Covering all areas of the financial sector in Africa’s emerging economies comes with challenges of operations of scale, but despite this large capitalization the company continues to remain the most profitable financial holding company within the region.

Standard Bank Group Capitec Bank Holdings FirstRand Limited Consolidated Income 1H2018 June 30th, 2018 June 30th, 2018 Statements All values millions. ZAR USD adj, ZAR USD adj, ZAR USD adj, Net Interest income 29,150 2,061.59 11,290 798.47 51,254 3,624.86 Non-interest income 22,030 1,558.04 919 64.99 2,441 172.64 Income from Investment 11,360 803.42 873 61.74 10,321 729.94 Management and Life Insurance Activities Transaction fee income 6,925 489.76 28,250 1,997.93

Total Income before operating 62,540 4,423.04 20,007 1,414.96 92,266 6,525.36 expenses

Operating expenses from (29,205) (2,065.48) (6,364) (450.08) banking activities Operating expenses from (8,691) (614.66) investment management and life insurance activities Operating expenses from (1,798) (127.16) transaction fees Operating expenses from (412) (29.14) loan fees Total Operating Expenses (37,896) (2,680.13) (8,574) (606.38) (47,664) (3,370.96) Net income before capital items 24,644 1,742.91 11,433 808.58 44,602 3,154.40 and equity accounted earnings

Net provision for doubtful debts (5,280) (373.42) charge Credit impairment charges (3,999) (282.82) (8,567) (605.89) Non-trading and capital related 46 3.25 items Share of post-tax profit from 360 25.46 3 0.21 914 64.64 associates and joint ventures Other (expense)/income (1) (0.07)

Net income before indirect 21,051 1,488.80 6,155 435.30 36,949 2,613.16 taxation Indirect Taxation (1,208) (85.43) (1,077) (76.17)

Net income before direct taxation 19,843 1,403.36 6,155 435.30 35,872 2,536.99 Direct Taxation (4,510) (318.96) (1,685) (119.17) (7,865) (556.24)

Profit for the period 15,333 1,084.40 4,470 316.13 28,007 1,980.75

Despite Standard Bank Group’s larger asset capitalization, FirstRand has significantly more lending activity. Standard Bank’s income statement appears to be further diversified, however FirstRand remains positioned well to grow their operations further in their subsidiary portfolios. Despite the fact that other banking groups have more relative value from non-interest incomes, FirstRand remains more effective, with a higher profit margin.

The profit margin for Standard Bank Group, Capitec Bank Holdings, and FirstRand Limited for the indicated periods is 25%, 22%, and 30% respectively. Additionally, FirstRand has more income attributable to its joint ventures.

Existing Retail Banks

The South African - and sub-Saharan – financial sector is an increasingly competitive emerging market. Many Western banking consumer-end processes have still not been fully implemented in the region.

Standard Bank Group is the largest banking group within the region, attributing significant revenues to its non-lending activities. Moody’s Investor Service affirmed its subprime Ba1 rating of Standard Bank in March 2018. Standard Bank Group has the most branches throughout the region, and the most employees.

Absa Bank Group has the most ATMs and cashpoints, 8 885 as of 20172. In terms of footprint, FirstRand has a relatively low end-user market presence, with the fewest brick-and-mortar branches from its competitors. However, FNB (First National Bank), FRB subsidiary, has made claims that its digital presence and lack of physical points of sale for services such as loans and insurance have not impeded it’s growing customer base. FNB is currently has the largest digital banking presence in South Africa, positioned much better than competitors for e-banking growth across the region.

South African consulting firm Consulta reported customers remain satisfied with FNB’s services as it retains the shared no.2 spot alongside African Bank Limited (locally controlled by the South African Reserve Bank)3. Capitec remains on the no.1 spot of customer satisfaction in 2017/18, while Absa continues to lose customers in 2018; previously losing 300,000 customers in 2017.

New Entrants

The South African Reserve Bank (SARB) has recently issued a new banking licenses to several new commercial banks for the first time in 20 years. The new entrants to the market are Discovery Bank, Bank Zero, Tyme Digital, African Bank, and Postbank. Discovery offers the threat to the existing market leaders as it has for years cooperated with FNB and FirstRand, offering card services to clients. Expected to launch its full-service bank in late 2018 – the bank is poised to take over approximately 200,000 client accounts from FNB – pending competition approval. However, regardless of whether Discovery is able to gain the entrance it desires, FNB will remain on track to remain a top performer. Bank Zero, scheduled to begin operations in early 2019, is expected to operate as mutual savings bank and should pose little risk to FirstRand’s operations. Tyme Digital, owned by Commonwealth Bank of Australia, is still gauging their entrance to the market and represent little threat to existing members. Postbank, already providing savings accounts and fixed- term deposits, has experienced licensing issues, but is expected to meet SARB’s full-service banking requirements by spring 2019.

With decline in satisfaction from existing major full-service banks the entrance of new banks into the market is expected. However, the transitioning period and the current states of the new market players remains too early to pose any competitive risk in the short-term. FirstRand has demonstrated positive results distinguishing it from the competition, gaining market share from competitors amidst unstable economic circumstances.

2 https://businesstech.co.za/news/banking/182873/battle-of-the-banks-how-sas-big-five-banks- compare/ 3 https://businesstech.co.za/news/banking/230121/the-best-and-worst-banks-in-south-africa-in- 2018/

METRIC STANDARD BANK CAPITEC FIRSTRAND LIMITED TRAILING P/E RATIO 18.49 26.50 13.59 BLOOMBERG (BEST) P/E RATIO * 9.05 19.13 11.96 NET PROFIT MARGIN 25% 22% 30% EARNINGS PER SHARE $0.67 $2.73 $0.35 * PE estimate discrepancies due to accounting periods used and audited/unaudited financial results.

Capitec has remained an investor staple due to its high RoA and RoE and generally conservative stance on leveraged operations. It is also a consumer favourite bank, attracting retail and institutional investment. However, FirstRand Limited remains more profitable, with a lower P/E ratio. Earnings per share from the last accounting cycle could be better, however given the current price of the shares trending below 100-EMA level, the asset remains a value due to expected favouring market circumstances.

FIRSTRAND LIMITED BALANCE SHEET Audited at Adj. USD M June 30th 2018 ASSETS CASH 96,024 6,791 DERIVATIVE ASSETS 42,499 3,006 TRADING ASSETS HEDGING PORTFOLIO ASSETS PLEDGED ASSETS COMMODITIES 13,424 949 INVESTMENTS 209,870 14,843 FINANCIAL INVESTMENTS 209,004 14,781 TERM DEPOSIT INVESTMENTS HELD TO MATURITY INVESTMENTS 112 8 INVESTMENT PROPERTY 754 53 CURRENT AND DEFFERED TAX ASSETS 3,262 231 CURRENT INCOME TAX ASSETS 378 27 DEFFERED INCOME TAX ASSETS 2,884 204 LOANS AND ADVANCES 1,121,227 79,297 - TO CUSTOMERS - TO GROUP COMPANIES - TO BANKS INSURANCE ASSETS 84 6 OTHER ASSETS AND RECEIVABLES 9,920 702 OTHER RECEIVABLES 9,884 699 DEFINED BENEFIT POST-EMPLOYMENT ASSETS 36 3 INVESTMENT AND INTEREST IN ASSOCIATES AND JOINT VENTURES 7,217 510 ASSOCIATES 5,537 392 JOINT VENTURES 1,680 119 PROPERTY AND EQUIPMENT 17,936 1,268 GOODWILL & INTANGIBLE ASSETS 10,847 767

TOTAL ASSETS 1,518,886 107,421

LIABILITIES DERIVATIVE LIABILITIES 50,954 3,604 TRADING LIABILITIES 9,999 707 CURRENT & DEFFERED TAX LIABILITIES 1,915 135 CURRENT TAX LIABILITIES 438 31 DEFFERED TAX LIABILITIES 1,477 104 DEPOSITS AND DEBT FUNDING 1,267,448 89,638 DEPOSITS FROM BANKS DEPOSITS FROM CUSTOMERS TIER II LIABILITIES 28,439 2,011 SUBORDINATED DEBT BORROWED FUNDS DEBT SECURITIES IN ISSUE WHOLESALE FUNDING HEDGING PORTFOLIO LIABILITIES POLICY HOLDERS LIABILITIES 4,593 325 EMPLOYEE LIABILITIES 11,534 816 PROVISIONS AND OTHER LIABILITIES 26,609 1,882 PROVISIONS 19,620 1,388 OTHER LIABILITIES 6,989 494

TOTAL LIABILITIES 1,401,491 99,118

EQUITY EQUITY ATTRIBUTABLE TO ORDINARY SHAREHOLDERS 56 4 ORDINARY SHARE PREMIUM 8,056 570 EQUITY ATTRIBUTABLE TO PREFERRED SHAREHOLDERS 4,519 320 PREFERENCE SHARE PREMIUM EQUITY ATTRIBUTABLE OTHER EQUITY INSTRUMENTS HOLDERS 1,250 88 EQUITY ATTRIBUTABLE NON-CONTROLLING INTEREST HOLDERS 4,004 283 RETAINED EARNINGS FOREIGN CURRENCY TRANSLATION RESERVE CASH FLOW HEDGE RESERVE OTHER RESERVES 112,934 7,987

TOTAL EQUITY 130,819 9,252 TOTAL LIABILITIES AND EQUITY 1,532,310 108,370

Evaluating the company’s financial position yields insight into the financial health of this company, and a closer look into gauging why it remains competitive. The company has a very healthy cash balance making up 6% of its total assets. It has the highest aggregate lending activity between major South African banks.4

Standard Bank Capitec FirstRand Limited Debt to Equity Ratio 9.83 3.50 10.71 Total Asset to Debt Ratio 1.10 1.29 1.08 Net Interest to Total Income Ratio 0.47 0.56 0.56 Propriety Ratio 0.09 0.22 0.09 Return on Equity (ROE) % 8% 24% 21% Return on Assets (ROA) % 1% 5% 2%

FirstRand posts higher debt to equity ratio and a lower asset to debt ratio – signifying a leveraged higher than average leveraged position. However, with generally high total asset ratios across the sector this signifies that the entire sector is conducting lending activities under higher risks of insolvency should customers demand their deposits. Standard Bank and FirstRand’s propriety ratio also suggests high amount of lending not backed entirely by proper capitalization, and is indicative of the companies borrowing a lot of capital.

Capitec remains the most risk averse of the three examined banks, however it is still able to generate the highest return on equity. FirstRand was able to generate 21% ROE, and 2% ROA, demonstrating good returns – although not as good as Capitec lower levered results.

FirstRand is still well positioned within this market to grow its operations and remain profitable, there are no immediate risks arising from debt, however it is a factor that warrants monitoring in order to ensure that the debt does not reach problematic levels.

4 Appendix 1.1: Standard Bank, Capitec, and FirstRand financial statements compared.

The asset, currently priced at 61.70 ZAR per share, is trading below its 200-day moving average. However, historically, given emerging market currency uncertainties and the strength of the US Dollar, the stock has performed poorly YTD; fetching a -6.33% return. Over the broader 3 year span the security has returned +30%. Current instability in emerging markets has been priced in by the market, however expectations for future returns remain positive.

52-Week High 74.63 52-Week Low 49.68 200-Day Moving Average 62.14 Beta 1.87

Factored into this position are general assumptions and expectations for the growth of the South African financial sector. New entrants to the market, and the issuing of new full-service banking licenses serve as good indicator of bullish sentiment in the region.

Technology Driven Revenues

As infrastructure in underdeveloped regions continues to grow, the use of internet in South Africa has been rapidly increasing. According to the International Telecommunications Union, more than two million new internet users were recorded in 2017 – totalling to 30.81 million users in the year. The official internet penetration for South Africa remains still only at 54%, compared to other emerging economies; Russia, 78%; India, 65%; and China, 20%. Most internet users’ access in the region is attributed to lower smartphone prices, greatly impacting the increased popularity of mobile banking in South Africa. Based off the continued growth assumption revenues from non-lending activities such as transaction costs should continue to grow in the future.5

South Africa used to have a relatively low banking population, percentage of population that has access and makes use of financial institutions. In the last couple years the gap has shrunk, Ventures Africa estimating at least 75% of South Africa currently has access to banking services. FirstRand’s consumer banking services extend regionally beyond South Africa to other sub- Saharan nations where many nations fall below a 15% banking penetration rate – presenting great opportunities for revenues.6

Currency Expectations

Increased international trade tensions have been factored into the South African Rand’s (ZAR) price. Capital outflow and dollar dominance has forced a 20% YTD devaluation of the ZAR as well as most other emerging market currencies.

Short-term outlook may favour the dollar, however long-term values and expected settlement of account deficits point towards a stronger ZAR in 2019. Currency risk further explored in Risks.

5 https://mybroadband.co.za/news/broadband/247702-internet-penetration-in-south-africa.html 6 https://www.businessinsider.de/the-worlds-unbanked-population-in-6-charts-2017-8?op=1

Economic growth is set to strengthen in 2018-19, driven by increased business and consumer confidence. A favourable outlook in trading partners will benefit exports.

On April 1st VAT was increased from 14% to 15%, which is the first tax increase since 1993. Private consumption is expected to expand, albeit at a slightly lower rate than in 2017 and the first half of 2018 due to tax increases. Private Consumption Expenditure was reported at 60.11 USD bn in Mar 2018. This records an increase from the previous number of 52.34 USD bn for Dec 2017.

Inflation fell to around 4% at the beginning of 2018, following a slowdown in price increases for food and transport. In March 2018, the Reserve Bank reduced the repurchase rate from 6.75% to 6.5%. Inflation is projected to stabilise in the middle of the 3% - 6% target range, providing room for some monetary easing to support the economic rebound. A further reduction in the policy rate is projected to follow, reflecting an assumed stable strong exchange rate, which lessens the effect of the upward pressure from the VAT hike.

Monetary policy is projected to be moderately expansionary, which is appropriate to support growth. The government budget for 2018-19 remains tight, but tax reforms will create some fiscal room for much needed investment in higher education and social benefits. Network regulation reforms aimed to broaden competition can further support growth.

South Africa’s trade balance moved to a deficit of ZAR 4.66 bn in July from a revised ZAR 11.89 bn surplus in June. Exports fell by 2.7 percent on a month-on-month basis to ZAR 107.07 bn in July, while imports increased by 13.8 percent to ZAR 111.72 bn.

The budget released in February 2018 proposed several measures to contain the deficit. The VAT rise from 14% to 15% and the partial freezing of personal income tax brackets will increase revenues. Increases in social benefit and the introduction of fee-free higher education for new students will temper the effect of the VAT increase on incomes.

Employment trends remain a concern.

According to the figures from the Quarterly Employment Statistics (QES) survey, released by Statistics South Africa, the total number of jobs reported in the second quarter showed a decrease of 69 000, bringing the total number of people employed in the formal non-agricultural sector of South Africa to 9 748 000.

Figure 1: Employment in the non-agricultural sector June 2015 – June 2018. (Statistics South Africa)

Recent economic improvements have not yet translated into higher employment. Unemployment remains high, weighing on household consumption. Inequalities in income and opportunities continue to be high, partly as a result of the low quality of the education system, which contributes to low productivity and the lack of skilled labour.

Copyright © 2018 East Mill Capital of http://www.eastmillcapital.com - 13 - Growth remains fragile and exposed to policy uncertainty and external risks. Investment and the service sector are the main drivers of growth. Despite the advantageous political environment, policy uncertainties such as the governance of state enterprises remain an issue for investors.

Additionally, a potential land reform allowing land expropriation without compensation raises uncertainty about property rights, which could lead to a significant decline in investment. External downside risks relate to an increase in oil prices and to foreign trade tensions, in particular on commodities. In addition, higher interest rates in Europe and the United States could affect the financial market and the exchange rate through capital outflows. Alternatively, a quick implementation of proposed structural reforms could reduce remaining policy uncertainties and stimulate domestic demand through higher-than-expected investment.

Risks

Foreign Exchange Risk

The biggest risk for FirstRand Limited, as well as most South African securities remains the emerging markets foreign exchange risk. The South African Rand (ZAR) has been under pressure due to a strengthening US dollar.

The Rand has so far devalued 20% against the US dollar since the start of 2018. Worsened investor sentiment across emerging markets has cause increased investor outflow to affect the currency. However, expectations of increasingly better investor sentiment may see the ZAR test levels of 14.00 before the end of 2018.

FirstRand Limited is well aware of the impact that foreign exchange risk has on their operations, and attest they are well hedged.

Political Uncertainty

Investors in emerging markets must remain cautious of political uncertainty within South Africa that may affect asset pricing. Additionally, in South Africa’s neighbouring regions, and places of interest for First Rand are also subject to political uncertainty that may influence profitability.

New Entrants

The threat of new entrants to South Africa’s full-service banking sector has been reviewed and accounted for. While the eventuality remains that consumers will ultimately face more choices for financial services, these threats should not affect profitability in the immediate term. Divestment or re-evaluation is expected before pressure is put on FirstRand’s capitalization from new domestic banks.

Disclaimer:

East Mill Capital is an academic endeavour serving as a demonstrative tool in confirming the assumptions of the investment thesis.

Investment Thesis:

Select investments in public emerging markets equity and debt securities are able to yield outsized, risk-adjusted returns that outperform traditional western benchmarks.

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1.1: Consolidated Balance Sheets for FirstRand Limited, Capitec, and Standard Bank Group. The following data has been processed and consolidated from individual filings issued by the respective companies. Empty values do not necessarily reflect 0 balances, as companies choose the report their financial position through varying accounts.

CONSOLIDATED STATEMENTS OF STANDARD BANK CAPITEC FIRSTRAND LIMITED FINANCIAL POSITION ALL VALUES ZAR M UNLESS OTHERWISE 1H18 Adj. USD M Unaudited Adj. USD M Audited at Adj. USD M NOTED. Unaudited at August June 30th 2018 2018 ASSETS CASH 72,104 5,099 25,091 1,775 96,024 6,791 DERIVATIVE ASSETS 71,205 5,036 42,499 3,006 TRADING ASSETS 165,230 11,686 100 7 HEDGING PORTFOLIO ASSETS PLEDGED ASSETS 22,371 1,582 COMMODITIES 13,424 949 INVESTMENTS 564,068 39,893 14,309 1,012 209,870 14,843 FINANCIAL INVESTMENTS 531,883 37,617 209,004 14,781 TERM DEPOSIT INVESTMENTS 2,528 179 HELD TO MATURITY 11,781 833 112 8 INVESTMENTS INVESTMENT PROPERTY 32,185 2,276 - - 754 53 CURRENT AND DEFFERED TAX ASSETS 4,572 323 504 36 3,262 231 CURRENT INCOME TAX ASSETS 107 8 378 27 DEFFERED INCOME TAX ASSETS 397 28 2,884 204 LOANS AND ADVANCES 1,064,680 75,298 41,814 2,957 1,121,227 79,297 - TO CUSTOMERS - TO GROUP COMPANIES - TO BANKS INSURANCE ASSETS 7,159 506 245 17 84 6 OTHER ASSETS AND RECEIVABLES 25,274 1,787 722 51 9,920 702 OTHER RECEIVABLES 25,274 1,787 722 51 9,884 699 DEFINED BENEFIT POST- 36 3 EMPLOYMENT ASSETS INVESTMENT AND INTEREST IN 9,961 704 134 9 7,217 510 ASSOCIATES AND JOINT VENTURES ASSOCIATES 5,537 392 JOINT VENTURES 1,680 119 PROPERTY AND EQUIPMENT 16,354 1,157 1,755 124 17,936 1,268 GOODWILL & INTANGIBLE ASSETS 23,954 1,694 283 20 10,847 767

TOTAL ASSETS 2,046,932 144,766 84,957 6,008 1,518,886 107,421

LIABILITIES DERIVATIVE LIABILITIES 73,217 5,178 54 4 50,954 3,604 TRADING LIABILITIES 61,744 4,367 9,999 707 CURRENT & DEFFERED TAX LIABILITIES 8,556 605 1,915 135 CURRENT TAX LIABILITIES 438 31 DEFFERED TAX LIABILITIES 1,477 104 DEPOSITS AND DEBT FUNDING 1,266,584 89,577 57,824 4,090 1,267,448 89,638 DEPOSITS FROM BANKS DEPOSITS FROM CUSTOMERS TIER II LIABILITIES 23,187 1,640 28,439 2,011 SUBORDINATED DEBT 23,187 1,640 BORROWED FUNDS DEBT SECURITIES IN ISSUE

Copyright © 2018 East Mill Capital of http://www.eastmillcapital.com - 17 - WHOLESALE FUNDING 6,206 439 HEDGING PORTFOLIO LIABILITIES POLICY HOLDERS LIABILITIES 319,280 22,581 4,593 325 EMPLOYEE LIABILITIES 11,534 816 PROVISIONS AND OTHER LIABILITIES 105,286 7,446 1,981 140 26,609 1,882 PROVISIONS 67 5 19,620 1,388 OTHER LIABILITIES 1,914 135 6,989 494

TOTAL LIABILITIES 1,857,854 131,394 66,065 4,672 1,401,491 99,118

EQUITY EQUITY ATTRIBUTABLE TO ORDINARY 155,834 11,021 5,649 400 56 4 SHAREHOLDERS ORDINARY SHARE PREMIUM 8,056 570 EQUITY ATTRIBUTABLE TO PREFERRED 4,519 320 SHAREHOLDERS PREFERANCE SHARE PREMIUM EQUITY ATTRIBUTABLE OTHER EQUITY 9,047 640 1,250 88 INSTRUMENTS HOLDERS EQUITY ATTRIBUTABLE NON- 24,197 1,711 113 8 4,004 283 CONTROLLING INTEREST HOLDERS RETAINED EARNINGS 13,153 930 FOREIGN CURRENCY TRANSLATION 3 0 RESERVE CASHFLOW HEDGE RESERVE (26) (2) OTHER RESERVES 112,934 7,987

TOTAL EQUITY 189,078 13,372 18,892 1,336 130,819 9,252 TOTAL LIABILITIES AND EQUITY 2,046,932 144,766 84,957 6,008 1,532,310 108,370