`S1ephanie Price, CFA
`Van11 Choyah
`1 (416) 594-7047
`1 (416) 956-3229
`VaM.CIIoy8@abc.oom
`Stephaoie~oom
`
`Valeant Pharmaceuticals
`International
`Solid results; I ncreased Guidance
`What's The Event
`
`Valeant reported solid Q2 results t hat were ahead of consensus on
`all metrics. Organic growth was above expectations, margins were
`strong and cash flow was robust. The only near-term headwinds are
`F/X and "genericization" (Xenazine and Targretin), which are being
`more than offset by organic growth.
`
`Implicatio n s
`
`We have increased our F2015 and F2016 forecast s to account for the
`roll-out of the I BS-D indication and the recent Amoun acquisition.
`We see continued organic growth (primarily in U.S. dermatology and
`B+L) and believe the company is poised for additional acquisitions.
`I n the near term, tuck- ins are probable, with another sizeable
`acquisition becoming more likely as Valeant pays down debt . Valeant
`remains SO-rated w it h a $275 price target, up from $250.
`
`Stock Rating
`
`Sector Weighting:
`Key Ratios and Statistics
`12-18 mo. Price Target
`VRX-NYSE (7123/15)
`
`Key Indices:
`52-week Range
`Shares Outstanding
`Float
`Avg. Daily Trading VoL
`Market Capitalization
`Dividend/Div Yield
`Fiscal Year Ends
`Book Value
`2016 ROE (E)
`Net Debt
`Common Equity
`
`E ARNI NGS UPDATE
`July 23, 2015
`Healthcare - Canada
`
`SE CTO R O UTPERF ORMER
`MAR K ET WEI GH T
`
`$275.00
`$250.14
`
`S&P!TSX60
`$106 03.$250.14
`344.4M
`330.5M Shrs
`2,275,037
`$86,148.2M
`Nil / Nil
`December
`$21.05 per Shr
`33.0%
`$17,752.4M
`$7,249.9M
`
`EBITDA ($min)
`Current
`Prior
`Estimates !Dec. 31!
`EPS (Cash}-Curr
`EPS (Cash}-Prior
`Valuation !Dec. 31!
`EVIEBIIDA-Curr
`EVIEBIIDA-Prior
`P/EPS (Cash)-Curr
`P/EPS (Cash)-Prior
`
`2016
`2015
`2014
`2013
`$2952.4A $3981.3A $5503.4E $7494.5E
`$5156.6E $7371.8E
`2015
`2016
`$11.66E $16.69E
`$11.06E $16.09E
`
`2013
`$624A
`
`2014
`$8.34A
`
`35.2x
`
`40.1x
`
`26.1x
`
`30.0x
`
`18.9x
`20.1x
`21.5x
`22.6x
`
`13.9x
`14.1x
`15.0x
`15.5x
`
`Company Description
`Valeant is a leading specialty ~rrnaceutical provider. The ~Y focuses
`on p!'ClOOcts with limited patent risk sWI as generics, over-the-munter,
`topicals and devices.
`www.valeant.cn:rV
`
`AH figures in US dollars, unless othf!IWise stated.
`CIBC World Markets does and seeks to do business with companies covered in it s research reports. As a result, investors
`should be aware that the firm may have a conflict of interest t hat could affect t he objectivity of this report.
`I nvestors should consi der this report as only a single factor in making t heir invest ment decision.
`See " Important Disclosures" section at the end of this report for important required disclosures, including potential
`conflicts of interest. See "Price Target Calculation" and " Key Risks to Price Target" sections at the end of this report,
`where applicable.
`Find c BC research on Bloomberg, Reuters, firstcall.oom
`and ResearmC'.<>n!r.llrill<wm mm
`
`C BC WOIId M<Utets Inc, P.O. Box 500, 161 Bay Street, Brookfield Place, Toronto, canada MSJ 2S8 (416) 594-7000
`
`15-1370150 2015
`
`PAGE 1 OF 10
`
`SENJU EXHIBIT 2235
`INNOPHARMA v SENJU
`IPR2015-00903
`
`
`
`Sector Outperformer
`Stephanie Price, CFA (416-594-7047) Stephanie.Price@cibc.ca
`Varun Choyah, (416-956-3229) Varun.Choyah@cibc.ca
`
`Company Profile
`Valeant Phannaceuticals is a diverse, decentralized specially ~aceutical canpany engaged in
`fle bmulation, clinical Esting, registration, manufacture and cOI'Ilmercialization of ~aceutical
`products. The canpany has a diverse product ~io, wi1h a bcus on br<11ded ~rmaceuticals,
`brcrlded generics and CN er-fle..coll'lter procklcts in key areas such as dermatology, neurology,
`inEclious diseases, ophtlalmdogy, oncology and consumer products.
`
`3,000
`
`2,500
`
`2,000
`
`'W e
`~
`~ 1,500
`55
`~
`0::
`
`1,000
`
`500
`
`-
`
`LTM EBITDA Margin
`
`Solid results; Inc reased Guidance- July 23, 2015
`
`Valeant Pharmaceuticals
`VRX-NYSE
`7/23/15
`12· To 18- Month Price Target:
`Health care· Canada
`Sector Weighting:
`All figures in USD millions, except per share data.
`Key Statistics
`
`250.14
`$275.00
`
`Market Weight
`
`250.14 Net Cash (Deb~
`344.4 Enle!prise Value
`86,148.2
`F2014A
`
`F2015E
`
`(17,752.4)
`103,900.6
`
`F2016E
`
`30.0x
`26.1x
`
`21.5x
`15.9x
`F2014A
`
`48.2%
`11.1%
`~96
`3.75
`F2014A
`
`8,263.5
`43.2%
`2,272
`3,981
`1,685
`947
`1,093
`180
`912
`2,850
`$8.34
`F2014A
`
`2,103
`(367)
`1,736
`$5.18
`2"A.
`F2014A
`
`21.5x
`18.9x
`
`18.1x
`15.2x
`F2015E
`
`50.3%
`5.3%
`$8.48
`4.11
`F2015E
`
`10,938.3
`324%
`3,004
`5,503
`2,163
`1,442
`675
`97
`578
`4,090
`$11.66
`F2015E
`
`2,425
`(330)
`2,095
`$6.12
`2"A.
`F2015E
`
`2,903
`18,960
`38,977
`25,521
`31,950
`7,027
`
`15.0x
`13.9x
`
`15.1x
`12.4x
`F2016E
`
`53.3%
`24.1%
`$19.65
`2.37
`F2016E
`
`14,068.0
`28.6%
`3,728
`7,495
`2,342
`1,257
`3,574
`179
`3,396
`5,925
`$16.69
`F2016E
`
`5,085
`(220)
`4,865
`$14.13
`6%
`F2016E
`
`6,768
`16,618
`42,299
`24,521
`31,876
`10,423
`
`Share Price (US$)
`Shares Outstanding
`Market Capitalization
`Key Multiples
`
`Valeant
`PIE
`EVIEBIIDA
`Peers (Average)
`PIE
`EVIEBIIDA
`Profitability
`
`EBIIDA Margin
`Net Margin
`Cash per Share
`NetDebVEBIIDA
`Income Statement
`
`Sales
`Growth (yly)
`Operating Expenses
`Adjusted EBITDA
`Amortization
`Interest & Other
`EBT
`locome Tax
`Netlocome
`Adj. Net Income
`Cash EPS
`Free Cash Flow
`
`Cash FloN From Operations
`Capital Ex pendtures
`Free Cash Flow
`Free Cash Flow Per Share
`Free Cash Flow Yield
`Balance Sheet
`
`Cash & ST lnvesrnents
`323
`Goodwil & Intangibles
`20,602
`Total Assets
`26,353
`15,255
`Debt
`Total Liabiliies
`20,919
`5,435
`Shareholdel's E~ily
`Source: Company reports and CIBC WMd Maltels Inc.
`
`PAGE2 OF 10
`
`
`
`Solid re sults; Increa s ed Guida nce -July 23, 2015
`
`Q2 Results
`Valeant (VRX-SO) reported strong Q2/15 results that showed good organic
`growth ( 19%), solid adjusted gross margins (up 500 bps Y/Y) and strong cash
`f low.
`
`Organic growth continues to come in well above expectations: this is the
`fourth consecutive quarter organic growth came in above 15% (we had been
`forecasting 12%). The outperformance was driven by the U.S. business,
`including contact lenses (BioTrue and Ultra), dermatology (Jublia/Luzu),
`ophthalmology Rx (Lotemax/Prolensa), neuro/generics and dental. With Valeant
`adding additional production lines for the contact lenses business and recently
`introducing a larger (8mL) Jublia package, we expect organic growth to continue
`in the near term, offsetting headwinds from the genericization of Xenazine and
`Targretin (expected in August and Ju ly, respectively).
`
`IBS-D FDA approval drove increased guidance: As expected, Valeant
`increased its F2015 revenue and cash EPS guidance (by 4% and 5% at the mid(cid:173)
`point, respectively) to reflect expected uptake of the IBS- D indication post FDA
`approval in May . At this point, the indication is in soft launch and we expect a
`f ull customer launch in September post approval of Valeant's marketing plan for
`the drug. We believe peak sales for the indication are in the $1 billion range.
`
`Amoun acquisition strengthens presence the Middle East: The Amoun
`acquisition (announced last week) adds ~$225 m in in revenue, doubling
`Valeant's business in the Middle East and North Africa. We see the Middle East
`as attractive given limited patent r isk, predominantly cash pay markets and
`strong growth (GDP and population) . Amoun also brings manufacturing facilities
`and we believe that Valeant may be able to consolidate some operations in the
`region .
`
`Expect tuck-ins to continue: With net leverage of 5.5x, we believe that
`Valeant will focus on tuck- ins as it pays down its debt (target of 4.0x by the end
`of 2016) . We view tuck-ins as accretive uses of cash, with little competition for
`most deals (leading to lower multiples) and Valeant's added scale allowing it to
`significantly reduce costs. For example, Dendreon, which Valeant bought out of
`bankruptcy proceedings in February, achieved a gross margin of 64% and an
`operating margin of 40% in Q2/15 .
`
`Our F2015 and F2016 forecasts have risen, primarily due to the roll-out of
`the IBS- D indication and the recent Amoun acquisition (expected to close in
`Q4/15) . We expect the IBS- D indication to help with Salix's inventory levels and
`expect average wholesaler inventory to be below 1.5 months by the end of this
`year (with gross margins approaching 80%) .
`
`Exhibit 1. Financial Summary
`
`Revenues (Smln.)
`8,263
`
`EBITDA (Smln.)
`3,981
`
`Adjusted EPS
`8.34
`
`10,938
`10,524
`10,494
`
`5,503
`5,157
`5,454
`
`7,495
`7,372
`7,259
`
`11 .66
`11 .06
`11 .15
`
`16.69
`16.09
`15.52
`
`14,068
`13,844
`12,697
`Consensus
`Source: Company reports and CIBC World Markets Inc.
`
`201 4A
`2015E
`CIBC est. - new
`CIBC esl - prior
`
`Consensus
`2016E
`CIBC est. - new
`CIBC esl- prior
`
`PAGE3 OF 10
`
`
`
`Solid results; I ncreased Guida nce -J uly 23, 2015
`
`Price Target Calculation
`We calculate Valeant's price target of $275 based on a 15x EV/2016E EBITDA
`multiple and the forward-looking capital structure. The 15x multiple is slightly
`higher than Valeant's historical two- point premium to peers (currently trading at
`~12 . 5x) given increased growth opportunities. The valuation is supported by our
`discounted cash flow (DCF) calculation, which uses a 9.20% weighted-average
`cost of capital (WACC), a 20% tax rate post 2016, and a terminal growth rate of
`1.5%.
`
`Key Risks To Price Target
`Ability To Scale: Valeant has grown significantly over the past few years.
`While the company has done a solid job managing growth to date, we
`believe a key risk is the company's ability to manage and support its rapid
`growth, and the challenges and difficulties associated with managing a
`larger, more complex business represent key risks to Valeant.
`
`Ability To Acquire : We see Valeant's ability to continue finding and
`completing suitably priced acquisitions as a key issue. As the company
`grows, it will have to make more and/or larger acquisitions to maintain its
`pace of growth. If the company is unable to identify suitable acquisition
`partners, the timelines for the execution of the company's acquisition
`strategy could be extended.
`
`Patent Cliff: The company faces generic competition on a number of its
`drugs. We expect generic competition on Valeant's products to be a key risk
`to price target.
`
`PAGE40F10
`
`
`
`Solid res ults; Increa s e d Guida nce - July 23, 2 015
`
`Our EBITDA ($min) estimates are shown below:
`
`2013 Current
`2014 Current
`2015 Prior
`2015 Current
`2016 Prior
`2016 Current
`
`1 Qtr.
`
`$571.6A
`$890.0A
`$1026.6A
`$1026.6A
`
`2Qtr.
`
`$569.5A
`$933.1A
`$1099.5E
`$1320.7A
`
`3Qtr.
`
`$756.8A
`$1005.4A
`$1438.5E
`$1407.9E
`
`4 Qtr.
`
`$1054.5A
`$1152.8A
`$1592.0E
`$1748.3E
`
`Our CASHEPS estimates are shown below:
`
`2013 Current
`2014 Current
`2015 Prior
`2015 Current
`2016 Prior
`2016 Current
`
`1 Qtr.
`
`$1.30A
`$1.76A
`$2.36A
`$2.36A
`
`2Qtr.
`
`$1.34A
`$1.91A
`$2.47E
`$2.56A
`
`3Qtr.
`
`$1.43A
`$2.11A
`$2.90E
`$2.91 E
`
`4 Qtr.
`
`$2.15A
`$2.58A
`$3.32E
`$3.82E
`
`Yearly
`
`$2952.4A
`$3981.3A
`$5156.6E
`$5503.4E
`$7371.8E
`$7494.5E
`
`Yearly
`
`$6.24A
`$8.34A
`$11.06E
`$11.66E
`$16.09E
`$16.69E
`
`PAGE50F10
`
`
`
`Solid res ults; I ncreased Guidance - July 23, 2015
`
`IMPORTANT DISCLOSURES:
`
`Analyst Certification: Each CIBC World Markets research analyst nam ed on the front page of this research report, or
`at the beginning of any subsection hereof, hereby certifies that (i) the recomm endations and opinions expressed herein
`accurately reflect such research analyst's personal views about the company and securities that are the subject of this
`report and all other companies and securities mentioned in this report that are covered by such research analyst and (ii)
`no part of the research analyst's compensation was, is, or will be, directly or indirectly, related to the specific
`recommendations or views expressed by such research analyst in this report.
`
`Potential Conflicts of Interest: Equity research analysts employed by CIBC World Markets are compensated f rom
`revenues generated by various CIBC World Markets businesses, including the CIBC World Markets Investment Banking
`Department. Research analysts do not receive compensation based upon revenues from specific investment banking
`transactions. CIBC World Markets generally prohibits any research analyst and any member of his or her household from
`executing t rades in the securities of a company that such research analyst covers. Additionally, CIBC World Markets
`generally prohibits any research analyst from serving as an officer, director or advisory board member of a company t hat
`such analyst covers.
`
`In addition to 1% ownership positions in covered companies that are required to be specifically disclosed in this report,
`CIBC World Markets may have a long position of less than 1% or a short position or deal as principal in the securities
`discussed herein, related secu rities or in options, futures or other derivative instruments based thereon.
`
`Recipients of this report are advised that any or all of the foregoing arrangem ents, as well as more specif ic disclosures
`set forth below, m ay at tim es give rise to potential conflicts of interest.
`
`Important Disclosure Footnotes for Valeant Pharmaceuticals
`International (VRX)
`
`Valeant Pharmaceuticals International is a client for which a CIBC World Markets company has performed
`investment banking services in the past 12 months.
`CIBC World Markets Inc. has received compensation for investment banking services from Valeant
`Pharm aceuticals International in the past 12 months.
`CIBC World Markets Inc. expects to receive or intends to seek compensation for investment banking
`services from Valeant Pharmaceuticals International in the next 3 m onths.
`Valeant Pharmaceuticals International is a client for which a CIBC World Markets company has performed
`non- investment banking, non- securities- related services in the past 12 months.
`CIBC World Markets Corp. has received compensation for non-investment banking, non-securities- related
`services from Valeant Pharmaceuticals International in the past 12 m onths.
`CIBC World Markets Corp., CIBC World Markets Inc., and their affiliates, in the aggregate, beneficially
`own 1% or m ore of a class of equity secu rities issued by Valeant Pharmaceuticals International.
`An executive committee member or director of Canadian I mperial Bank of Commerce ("CIBC"), the
`parent company to CIBC World Markets Inc. and CIBC World Markets Corp., or a m ember of his/her
`household is an officer, director or advisory board member of this company or one of its subsidiaries.
`
`PAGE60F10
`
`
`
`Solid resu lts; Increased Guidance- July 23, 2015
`
`CIBC World Markets Inc. Stock Rating System
`
`Description
`
`Abbreviation Rating
`Stock Ratings
`Stock is expected to outperform the sector during the next 12-18 months.
`Sector Outperformer
`SO
`Stock is expected to perform in line with t he sector during the next 12-18 months.
`Sector Performer
`SP
`Sector Underperformer Stock is expected to underperform the sector during t he next 12-18 months.
`SU
`Not Rated
`CIBC World Markets does not maintain an investment recommendation on t he stock.
`NR
`Restricted
`CIBC World Markets is restricted (due to potential conflict of interest) from rating the stock.
`R
`Sector Weightings (note: Broader market averages refer to S&P 500 in the U.S. and S&P/ TSX Composite in Canada.)
`0
`Overweight
`Sector is expected to outperform the broader market averages.
`Market Weight
`Sector is expected to equal the performance of t he broader market averages.
`M
`U
`Underweight
`Sector is expected to underperform t he broader market averages.
`NA
`None
`Sector rating is not applicable.
`"Speculative" indicates that an investment in t his security involves a high amount of risk due to volatility and/or liquidity issues.
`
`Ratings Distribution*: CIBC World Markets Inc. Coverage Universe
`Inv. Banking Relationships
`Sector Outperformer (Buy)
`Sector Performer (Hold/Neutral)
`Sector Underperformer (Sell)
`Restricted
`
`Count
`157
`163
`38
`8
`
`Percent
`42.8%
`44.4%
`10.4%
`2.2%
`
`(as of 23 Jul 2015)
`Sector Out performer (Buy)
`Sector Performer (Hold/Neutral)
`Sector Underperformer (Sell)
`Restricted
`
`Count
`149
`155
`33
`8
`
`Count
`1
`1
`0
`0
`
`Percent
`94.9%
`95.1%
`86.8%
`100.0%
`
`Percent
`100.0%
`100.0%
`0.0%
`0.0%
`
`Ratings Distribution: Healthcare - Canada Coverage Universe
`Inv. Banking Relationships
`Percent
`Count
`(as of 23 Jul 2015)
`Sector Outperformer (Buy)
`50.0%
`1
`Sector Outperformer (Buy)
`Sector Performer (Hold/Neutral)
`50.0%
`1
`Sector Performer (Hold/Neutral)
`Sector Underperformer (Sell)
`0.0%
`0
`Sector Underperformer (Sell)
`Restricted
`0.0%
`0
`Restricted
`Healthcare - Canada Sector includes the following tickers: CCT, VRX.
`
`*Although the investment recommendations within the three-tiered, relative stock rating system utilized by CIBC World Markets Inc.
`do not correlate to buy, hold and sell recommendations, for t he purposes of complying with NYSE and NASD rules, CIBC World
`Markets Inc. has assigned buy ratings to securities rated Sector Outperformer, hold ratings to securities rated Sector Performer, and
`sell ratings to securities rated Sector Underperformer without taking into consideration the analyst's sector weighting.
`
`Important disclosures requi red by IIROC Rule 3400, can be obtained by visiting CIBC World Markets Inc. on the web at
`http://researchcentral.cibcwm.com. Important disclosures for each issuer can be found using the "Coverage" tab on the
`top left of the Research Central home page. Access to the system for rating investment opportunities and our
`dissemination policy, can be found under 'Quick Links' on bottom right side of the Research Central homepage. These
`important disclosures can also be obtained by writing to CIBC World Markets Inc., Brookfield Place, 161 Bay Street, 4th
`Floor, Toronto, Ontario MSJ 258, Attention: Research Disclosures Request
`
`PAGE70F10
`
`
`
`Solid results; Increase d Guidance - July 23, 2015
`
`CIBC World Markets Inc. Price Chart
`
`HISTORICAL PERFORMANCE Of CIIC WORLD MARKETS INC. RECOMMENDATIONS FOR
`VALEANT PHARMACEUTICALS INTERNATIONAL (VRX)
`
`350.00
`
`3)0.00
`
`3.00
`
`2.25
`
`1.50
`
`0 .75
`
`0.00
`
`c
`~
`ii
`
`.5 . E
`
`~
`
`~
`0
`~
`0
`~
`0
`
`"'
`
`~
`0
`~
`0
`<:!
`....
`0
`
`~
`0
`~
`0
`~
`
`0
`
`~
`0
`~
`0
`~
`
`~
`~
`~
`0
`0
`0
`<:>!
`~
`~
`0
`0
`C>
`<:!
`<:!
`<:!
`"'
`~
`~
`0
`l ol11111e - Closing Price -. Price Targtt e Rating Change
`
`LEGEIID: -
`Currency: USO
`
`~
`0
`~
`0
`~
`0
`
`~
`0
`~
`0
`<:!
`"'
`0
`
`~
`0
`~
`0
`<:!
`"'
`0
`
`~
`0
`~
`0
`<:!
`0
`
`Coverage Change
`
`Restricted
`
`~
`0
`<:>!
`0
`<:!
`....
`0
`
`~
`~
`..
`0
`0
`<:>!
`~
`0
`0
`<:!
`<:!
`"'
`"'
`0
`0
`M~et Data Ptovkied By REUTERS .:t
`
`Historical stock price data and c orresponding CIBC WM price targets in th is graph may have been adjusted to acc ount for subse quent stock splits.
`
`HISTORICAL PERFORMANCE OF CIBC WORLD MARKETS INC. RECOMMENDATIONS FOR VALEANT
`PHARMACEUTICALS INTERNATIONAL (VRX)
`
`Change Type
`
`~
`
`••D
`..
`..
`..
`
`Closing Price
`130.97
`118.21
`154.10
`198.75
`214.06
`
`Rating
`so
`so
`so
`so
`so
`
`Price Target Coverage
`160.00 Stephanie Price, CFA
`155.00 Stephanie Price, CFA
`186.00 Stephanie Price, CFA
`219.00 Stephanie Price, CFA
`250.00 Stephanie Price, CFA
`
`Date
`05120/2014
`08101/2014
`01/08/2015
`02/2312015
`04/29/2015
`
`J11
`
`PAGE 80F 10
`
`
`
`Solid resu lts; I ncreased Guidance- Ju ly 23, 2015
`
`Legal Disclaimer
`
`This report is issued and approved for distribution by (a) in Canada, CIBC World Markets Inc., a member of the
`Investment Industry Regulatory Organization of Canada ("IlROC"), the Toronto Stock Exchange, t he TSX Venture
`Exchange and a Member of t he Canadian I nvestor Protection Fu nd, ( b) in the United Kingdom, CIBC World Markets pic, is
`Authorised by the Prudential Regulation Authority and regulated by t he Financial Conduct Authority and the Prudential
`Regulation Authority, (c) in Australia to wholesale clients only, CIBC Australia Ltd, a company regulated by t he ASIC with
`AFSL license number 240603 and ACN 000 067 256, and (d) in Japan, CIBC World Markets (Japan) Inc., a registered
`Type 1 Financial product provider with the registration number Director General of Kanto Finance Bu reau #218
`(collectively, " CIBC World Markets") and (e) in t he United States either by (i) CIBC World Markets Inc. for dist ribution
`only to U.S. Major Inst it utional Investors (" Mil") (as such term is defined in SEC Rule 15a-6) or (ii) CIBC World Markets
`Corp., a member of t he Financial Industry Regulatory Authority ("FINRA"). U.S. Mils receiving this report from CIBC
`World Markets Inc. (the Canadian broker-dealer) are required to effect transactions (other than negotiating their terms)
`in securities discussed in the report t hrough CIBC World Markets Corp. (the U.S. broker-dealer).
`This report is provided, for informational pu rposes only, to institutional investor and retail clients of CIBC World
`Markets in Canada, and does not constitute an offer or solicitation to buy or sell any securities discussed herein in any
`jurisdiction where such offer or solicitation would be prohibited . This document and any of t he products and information
`contained herein are not intended for the use of Retail investors in the United Kingdom. Such investors will not be able to
`enter into agreem ents or purchase products mentioned herein f rom CIBC World Markets pic. The comments and views
`expressed in th is document are meant for t he general interests of wholesale clients of CIBC Australia Ltd.
`This report has been prepared by the CIBC g roup and is issued in Hong Kong by Canadian Imperial Bank of
`Comm erce, Hong Kong Branch, a registered inst itution under t he Securities and Futures Ordinance, Cap 571 (the "SFO").
`This report is intended for "professional investors" only (within t he meaning of t he SFO) and has been prepared for
`general circulation and does not take into account the objectives, financial situation or needs of any recipient. Any
`recipient in Hong Kong who has any questions or requires further information on any matter arising from or rela t ing to
`th is report should contact Canadian Imperial Bank of Commerce, Hong Kong Branch at Suite 3602, Cheung Kong Centre,
`2 Queen's Road Central, Hong Kong (telephone number: +852 2841 6 111). Orders for Hong Kong listed securities will be
`executed by Canadian I mperial Bank of Commerce, Hong Kong Branch. Canadian Imperial Bank of Comm erce, Hong
`Kong Branch has entered into an arrangement with its broker-dealer affiliates worldwide to execute orders for securities
`listed outside of Hong Kong for Hong Kong clients.
`This report is intended for d istribution in Singapore solely to "institutional investors" (within the meanings of the
`Financial Advisers Act (Chapter 110 of Singapore)).
`The securities mentioned in t his report may not be suitable for all types of investors. This report does not take into
`account the investment objectives, financial situation or specific needs of any particular client of CIBC World Markets.
`Recipients should consider this report as only a single factor in making an investment decision and should not rely solely
`on investment recomm endations contained herein, if any, as a substit ution for the exercise of independent judgment of
`the m erits and risks of investments. The analyst writing t he report is not a person or company with actual, implied or
`apparent authority to act on behalf of any issuer mentioned in the report. Before making an investment decision with
`respect to any security recommended in this report, t he recipient should consider whether such recommendation is
`appropriate given the recipient's particular investment needs, objectives and financial circumstances. CIBC World
`Markets suggests t hat, prior to acting on any of t he recomm endations herein, Canadian retail clients of CIBC World
`Markets contact one of our client advisers in your jurisdiction to discuss your particular circumstances. Non-client
`recipients of this report who are not institutional investor clients of CIBC World Markets should consult with an
`independent financial advisor prior to m aking any investment decision based on t his report or for any necessary
`explanation of its contents. CIBC World Markets will not t reat non-client recipients as its clients solely by virtue of their
`receiving t his report.
`Past performance is not a guarantee of future results, and no representation or warranty, express or implied, is
`made regarding future perform ance of any security m entioned in t his report. The price of the securities m entioned in t his
`report and the income they produce m ay fluctuate and/or be adversely affected by exchange rates, and investors may
`realize losses on investments in such securities, including the loss of investment principal. CIBC World Markets accepts
`no liability for any loss arising from t he use of information contained in t his report, except to t he extent t hat liability may
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`Information, opinions and statistical data contained in t his report were obtained or derived from sources believed to
`be reliable, but CIBC World Markets does not represent t hat any such information, opinion or statistical data is accurate
`or complete (with t he exception of information contained in the I mportant Disclosures section of this report provided by
`CIBC World Markets or individual research analysts), and they should not be relied upon as such. All estim ates, opinions
`and recomm endations expressed herein constitute judgm ents as of t he date of this
`
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`Solid results; Incr eased Gui dance- July 23, 2015
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`Legal Disclaimer (Continued)
`
`report and are subject to change without notice.
`Nothing in this report constitutes legal, accounting or tax advice. Since the levels and bases of taxation can change,
`any reference in this report to the impact of taxation should not be construed as offering tax advice on the tax
`consequences of investments. As with any investment having potential tax implications, clients should consult with their
`own independent tax adviser .
`This report may provide addresses of, or contain hyperlinks to, Internet web sites. CIBC World Markets has not
`reviewed the linked Internet web site of any third party and takes no responsibility for the contents thereof. Each such
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`Although each company issuing this report is a wholly owned subsidiary of Canadian I mperial Bank of Commerce
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`or recommended to or pu rchased or sold in any client accounts (i) will not be insured by the Federal Deposit Insurance
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`investment risks, including possible loss of the principal invested . The CIBC t rademark is used under license.
`© 2015 CIBC World Markets Inc. All rights reserved. Unauthorized use, distribution, duplication or disclosure
`without the prior w ritten permission of CIBC World Markets is prohibited by law and may result in prosecution.
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