This document is downloaded from CityU Institutional Repository,

Run Run Shaw Library, City University of Hong Kong.

Title Capital structure analysis of Tesla Motors, Inc.

Author(s) Liu, Ruoxi (劉若曦); Wang, Hao (王昊); Xue, Jiayi (薛嘉怡); Xu,

Xiaowei (徐瀟煒); Xie, Yanting (解艷婷)

Citation

Liu, R., Wang, H., Xue, J., Xu, X., & Xie, Y. (2014). Capital structure analysis of Tesla Motors, Inc. (Outstanding Academic Papers by Students (OAPS)). Retrieved from City University of Hong Kong, CityU Institutional Repository.

Issue Date 2014

URL http://hdl.handle.net/2031/7485

Rights This work is protected by copyright. Reproduction or distribution of the work in any format is prohibited without written permission of the copyright owner. Access is unrestricted.

CAPITAL STRUCTURE ANALYSIS OF TESLA MOTORS, INC.

by

Ruoxi LIU Hao WANG Jiayi XUE

Xiaowei XU Yanting XIE

Department of Economics and Finance City University of Hong Kong

2014

Table of Contents Company Profile .................................................................................................................................................. 2

Company Background ..................................................................................................................................... 2

Product Strategies ........................................................................................................................................... 2

SWOT Analysis ................................................................................................................................................. 3

Competitors in the Same Industry....................................................................................................................... 4

Industry Background ....................................................................................................................................... 4

Competitor Background .................................................................................................................................. 4

Competition in Green Vehicle Markets ........................................................................................................... 5

Capital Structure .................................................................................................................................................. 6

Ratio Analysis .................................................................................................................................................. 6

Working Capital Management ........................................................................................................................ 7

Sources of Finance .......................................................................................................................................... 9

Business Forecast for the Next 5 Years ............................................................................................................. 10

Summary ............................................................................................................................................................ 11

Appendix ............................................................................................................................................................ 12

Appendix 1: Timeline of Tesla’s Major Events .............................................................................................. 12

Appendix 2: Direct Competitor Comparison ................................................................................................. 12

Appendix 3: Top 10 Manufacturers in the Industry by Market Share .......................................................... 13

Appendix 4: Electric Vehicles of Other Manufacturers ................................................................................. 13

Appendix 5: Other Types of Energy-Saving Cars ........................................................................................... 13

Appendix 6: Debt to Equity Ratio .................................................................................................................. 14

Appendix 7: Debt to Market Cap Ratio ......................................................................................................... 15

Appendix 8: Average Long-term Debt to Average Total Assets Ratio........................................................... 15

Appendix 9: Net Working Capital .................................................................................................................. 16

Appendix 10: Operating Cycle and Cash Cycle .............................................................................................. 17

Appendix 11: Short-Term Financial Policy .................................................................................................... 18

Appendix 12: Free Cash Flow ........................................................................................................................ 18

Appendix 13: Cash Management .................................................................................................................. 19

Appendix 14: Debt Financing History of Tesla .............................................................................................. 19

Appendix 15: Equity Financing History of Tesla ............................................................................................ 20

Appendix 16: Growth Rate for the Past 5 Years............................................................................................ 20

Appendix 17: Revenue Growth Rate Forecast .............................................................................................. 20

Appendix 18: Operating Expense Growth Rate Forecast .............................................................................. 21

Appendix 19: Gross Profit Growth Rate Forecast ......................................................................................... 21

Appendix 20: Projection for the Next 5 Years ............................................................................................... 21

Bibliography ....................................................................................................................................................... 22

1

Company Profile

Company Background Incorporated in 2003, Tesla Motors, Inc. is a leading American automotive company named after

electrical engineer and physicist Nikola Tesla. Tesla designs, develops, manufactures and sells high-

end fully electric vehicles and advanced electric vehicle powertrain. Meanwhile, it has established its

own selling network, service centers and supercharger stations globally.

In March 2008, Tesla launched the first all-electric sport car, the Tesla Roadster. In May, the first

store was opened in Los Angeles, California. The partnership with Daimler AG commenced efforts

in 2008 too. It began with the development agreement of a battery pack and charger for Daimler’s

Smart Fortwo Electric Drive. In January 2010, Tesla filed an initial public offering (IPO) and was

remarked as the first modern American car company to go public despite Ford Motor in 1960s.

Panasonic, as being a supplier of battery cells for Tesla’s battery packs, collaborated with Tesla on

the development of new electric vehicle cells in early 2010. Then they have built up a long-term

preferential supply and demand agreement in 2013. Started from July 2010, Tesla entered into an

agreement with Toyota Motor Corporation to develop an electric powertrain for Toyota RAV4. The

validated powertrain system included battery, power electronics module, motor, gearbox and

associated software, which will be integrated into an electric vehicle version of Toyota RAV4.

Currently Mode X, with a dual motor all-wheel drive system and Gem III, with lower price point as

the third generation electric vehicle, are under development. The sales volume of Tesla Roadsters

was around 2,500 in over 30 countries by January 2012, while as of December 2013, 25,000 Model S

were delivered.

Product Strategies From 2013, Tesla sells vehicles through its own sales and service network. It also builds a network

of Superchargers in the United States, Europe and other international markets to allow Model S

owners to travel long distances without worrying about charging their cars. Besides, two product

programs were in effect to attract and protect customers.

2

Leasing program In 2010, Tesla permitted qualifying customers to lease the Tesla Roadster for generally 36 months,

after which time they have the option of either returning the vehicle to Tesla or purchasing it for a

predetermined residual value. It uses a third party provider to administer the back office services,

including billing and collections, of the leases.

Resale value guarantee From 2013, customers who purchase Model S have the option of selling their vehicle back to Tesla

during the period of 36 to 39 months following delivery for a pre-determined resale value. This

structure allows customers to enjoy the Model S ownership without concern for its resale value.

SWOT Analysis

Strengths Tesla’s products and services are environmentally friendly. The technology research in the area of

electric transmissions and drive train is quite advanced. Besides, it receives high reputation in the

industry as it won the 2010 Automotive Executive of the Year Innovator Award. Another significant

strength is that Tesla’s selling prices are relatively low compared to cars in the same class.

Weaknesses However, compared to engine powered vehicles, the prices of their products are high. Also, its

economy of scale has not been achieved because of high costs of production and small sales volume.

Moreover, it is quite difficult for Tesla to enter a new market, as it requires construction of electric

battery charging stations. Most importantly, Tesla relies on other companies for some core

technologies. For example, it relies on Panasonic for battery cells in battery packs.

Opportunities First of all, there are accelerating public attention and government supports on green vehicles. As the

prices of oil and gasoline are skyrocketing, low cost of an electric car is an advantage. Besides, there

are more developing lithium-ion batteries and other energy technologies, which Tesla can use for

developing more advanced battery technology.

3

Threats Competition is intensifying, as there are many types of green vehicles, like powered cars, natural gas,

or ethanol. Besides, the prices for raw metals are increasing, which will lift the costs for auto

manufacturers and result in squeezed profits for the companies. In addition, Tesla wants to be able to

produce, distribute and sell its cars to average people, but it seems difficult to achieve due to their

current business model. Lastly, the sales price fluctuates because of the risks coming from the

development of battery system, including the unstable partnership with Panasonic and the limited

source of raw materials.

Competitors in the Same Industry

Industry Background Tesla belongs to the automotive manufacturing industry, which is reported to be one of the most

important economic sectors in terms of revenue. In 2012, this industry generated about $87 billion in

revenue and $2.1 billion in profit.

This industry prospered since the second industrial revolution. Not only the developed countries are

demanding for more cars, but also the developing countries especially the emerging markets are the

major market for auto makers to expand their businesses. From 2010 to 2015, there is an expected

annual growth rate of 5.5%.

Tesla’s market capital is above the industry level (See Appendix 2), while its net income is negative,

which indicates Tesla is a young growing company in this industry.

Competitor Background We choose General Motor and Toyota for detailed analysis.

General Motor (GM) There are three advantages of GM.

First, General Motor has long business history and has established a worldwide presence. So it has

rich experience in marketing, selling in many markets that enable it has good understanding of target

markets and customers. Second, General Motor has a strong brand portfolio. It has 18 brands in total,

4

and there are 4 amongst 18 are the most selling brands--- Cadillac, GMC, Chevrolet and Buick, and

they account for 80% of GM’s sales. Third, General Motor also adjusts to the market trend and

customers’ needs to develop green vehicles such as its biodiesel-based GMC Sierra 2500 Pickups.

However, two major disadvantages may slow its development. GM has large car recalls in recent

years. In 2012, it recalled 119,000 pickups due to missing hood latch and in the same year it recalled

its Chevrolet Volt due to battery problems. Car recalls is costly and also brand damaging. Moreover,

GM’s 18 brand portfolio also gives rise to brand dilution. Because its 18 brands are different in

quality and are sold in different markets, people find it difficult to identify which one belongs to GM.

So this lowers its brand awareness.

Toyota Motor (TM) TM benefits from three advantages. First, Toyota’s brand is the most valuable one in the automobile

industry at $30 billion. It is reputable for its innovative culture, environmentally friendly products

and good quality. Second, Toyota has a strong brand portfolio with 70 different models of cars under

its namesake brand. And this does not only enhance its brand awareness but also satisfy different

customers’ needs. Third, Toyota also provides green vehicles and it has an early movement

towards hybrid and efficient cars.

However, there are also two disadvantages. It has relatively weak presence in the emerging markets

while its main markets are in Japan, US and Europe. In terms of its sales, those in the new markets

account for a small part. In 2009-2010, it made call recalls of 9 million vehicles and in 2012, it

recalled 7.43 million cars.

Competition in Green Vehicle Markets Tesla’s products fall into the Electric Vehicle market segment. Currently, because of the lack of

charging infrastructure construction, it has a small sales volume. But thanks to the environmental

initiatives and rising fuel-economy standards, its future is bright with an expected 30% yearly growth

rate in recent years. And so far, many auto makers are entering this market. Under each subcategory

of Electric Vehicle, there are existing products posing threats to Tesla. (See Appendix 4) Besides the

5

electric vehicle market, there are also competitors adopting new technologies to produce energy-

saving cars. (See Appendix 5) Thus, Tesla is facing a severe competition in the industry.

Capital Structure

Ratio analysis, including Debt to Equity Ratio, Debt to Market Cap Ratio and Average Long-term

Debt to Average Total Assets Ratio, working capital management and Tesla’s source of financing

will be discussed in this section.

Ratio Analysis

Debt to Equity Ratio Despite the abnormal fluctuation in the first two quarters of 2012, the Debt to Equity ratio of Tesla is

similar to its competitors. The abnormal fluctuation mainly resulted by the changes in shareholders’

equity, which is contributed by the accumulated deficit. The shareholders’ equity of Tesla kept

decreasing from the third quarter of 2011, and until the third quarter of 2012, the accumulated deficit

resulted to a negative shareholders’ equity. This deficit was quickly recovered by the significant

increase in sales at the end of 2012 and 2013. Thus, according to the debt to equity ratio, the leverage

and risk level of Tesla is acceptable compared with its competitors in general, if its profitability can

continue.

Debt to Market Cap Ratio The Debt to Market Cap Ratio of Tesla is the lowest compared with GM and TOYOTA. This ratio

shows that the debt component of Tesla’s capital structure is generally below 20%, indicating the

financial fitness of Tesla.

Average Long-term Debt to Average Total Assets Ratio The Average Long-term Debt to Average Total Assets ratio measures the percentage of assets

financed with long-term debt. Around 40% of Toyota’s assets are financed with long-term debt,

while 10% to 20% GM’s assets are financed with long-term debt and the ratio is in an increasing

6

trend. As for Tesla, round 20% to 30% of the assets are financed with long-term debts. The unusual

increase in 2012 was resulted by Department of Energy (DOE) loan. Thus, the Average Long-term

Debt to Average Total Assets ratio of Tesla is acceptable compared with its competitors.

In conclusion, Tesla’s leverage and risk level is acceptable and the company is in financial fitness.

Working Capital Management

Net Working Capital From 2010 to 2013, the net working capital of Tesla is not stable and there is a significant fluctuation

during 2012 to 2013. This fluctuation happened to both current assets and current liabilities.

Among current assets items, the level of inventory increased as well as cash and cash equivalent. At

the end of 2011, the amount of inventory was $50.082 million, which increased to $268.504 million

in 2012, and reached as high as $342.355 million at the year end of 2013. As for cash and cash

equivalent, it increased significantly from $201.890 million in 2012 to $845.889 million in 2013.

For current liabilities items, there are also significant increases in accounts payables, accrued

liabilities, deferred revenue, and customer deposits.

The main reason for these changes is the enlarged investment in 2012 and the dramatic sales increase

in 2013. To match the prediction of sales increase in 2013, it is reasonable to see the rise in inventory

from 2012, which also explains the increase of accounts payable and accrued liabilities. And due to

Tesla’s policy that customers have to pay full amount of the car when ordering, Tesla’s cash and cash

equivalent, together with the deferred revenue and customer deposits, increased a lot.

Operating Cycle and Cash Cycle The operating cycle of Tesla is not stable, which reached as high as 456 days in 2012 and decreased

to as low as 80 days in 2013. There are two reasons contributed to the fluctuation: the projected

future sales increase made in 2012, and the huge sales in 2013. In the financial year of 2013, the

sales reached a growth rate of 418% compared with the last year, and increased from $385.7 million

7

to $1,997.8 million. As for cash flow, it shows a decreasing trend, which is a good signal, indicating

the increasing ability of Tesla to collect its cash.

Short-Term Financial Policy For GM and Toyota, the average current ratio was around 1.0 to 1.5 during past four years. However,

the current ratio of Tesla is generally higher than these two major competitors in most of the time.

Combined with the increasing inventory, which increased from $45.182 million in 2010 to $340.355

million in 2013, it reveals that Tesla is applying a relatively flexible short-term finance policy.

Free Cash Flow The free cash flow of Tesla was negative before June 30, 2013, which was resulted by the huge

investment expenditure during the beginning years. After June 30, 2013, the free cash flow became

positive, and Tesla starts being profitable.

Cash management Among the past four years, Tesla has increasing cash from financing and negative cash from

investing. This indicates that Tesla is conducting further expansion and having increasingly

investment. The positive cash flow from operation, indicating the positive profitability of Tesla’s

products. Combined the cash from financing, cash from investing, and cash flow from operation, the

total cash of Tesla is acceptable, despite the cash shortage happened in 2012. The cash shortage

problem got solved properly from the DOE loan. And considering its situation as a new company and

the good cash performance in 2013, currently, the cash management does not have significant issue

to raise our attention. However, with the development of the company, Tesla may have to pay more

attention to how to optimize the cash utilization in the future.

8

Sources of Finance

Debt Financing Appendix 14 summarizes debt financing history of Tesla up to February, 2014. Until the end of

2013, Tesla borrowed $1,125 million from the government and the public. And the major use of debt

is to develop new models, showing an alignment between finance policy and strategic development.

Department of Energy (DOE) Loan Facility Before Tesla was listed in NASDAQ, the company had faced difficulty finding investors as people

were worried about the future of electric vehicles. Thus, DOE loan facility was initiated under the

Advanced Technology Vehicles Manufacturing (ATVM) Incentive Program in January 2010. This

$465 million was fully drawn down by August 2012 and all outstanding amounts of $451.8 million

were cleared in May 2013, by the proceeds from sale of convertible debts.

Along with the loan facility, warrants regarding Series E convertible preferred stock were also issued

to DOE. After the 1-for-3 reverse stock split in May and IPO in June 2010, they transferred to buy up

to 3 million shares of common stocks. However, with full repayment, all warrants expired in 2013.

Convertible Senior Notes This $660 million convertible bond generated $648 million net proceeds. Its 1.5% coupon is paid

semiannually with 5-year maturity. The call option enable holders to buy 6.0306 shares of stocks

with $1000 bond, indicating a conversion price of $124.52. Normally, options can be exercised since

March 2018. However, three conditions can activate exercise practice before that. First, daily closing

prices of stock are no less than 130% of conversion price (i.e. $161.88) for 20 out of 30 trading days

within a fiscal quarter. It was met in 3rd quarter of 2013. Second, bond price is less than 5-day

average of stock closing prices for a consecutive 5 days. Third, specified distributions to

shareholders or corporate transactions happen. Under this condition, bondholders can also require

Tesla to increase the conversion rate. Beside call options, the note protects investors by requiring the

company to repurchase all principal plus occurred interests if there is a fundamental change before

maturity. All these conditions lower the borrowing cost but create restrictions on management.

9

Hedge transactions were conducted in 2013 with regard to options under convertible senior notes. At

most 5.3 million shares need to be issued to fulfill the exercise of call options. Tesla entered a

position to long call options to “purchase up to 5.3 million shares of our common stock at a price of

approximately $124.52 per share”. (TeslaMotors, 2013) In addition, the company sold another call

option with same conditions except raising the strike price to $184.48. Tesla fully hedged the option

position of bond and effectively raised the exercise price of call option by 48.15%. Hedge

transactions even generated a net proceed of $2.8 million because the proceeds from sale of options

exceed the cost of longing call. Tesla benefits from hedging for three reasons. It offsets the dilution

caused by call options, making less impact on stock price. It increases the attractiveness of

convertible notes, raising initial bond prices. Most importantly, it lowers the financial risk as it

decreases the probability of calls to be in the money.

Equity Financing Since 29 June, 2010, Tesla continuously issue new shares to the market. Total value of $1,127.47

million of common stocks was issued (Appendix 15), which is higher than debt financing ($1,125

million). This fact also explains the low Debt-to-Equity ratio of Tesla. However, its stock price still

jumped up a lot despite all dilution effect caused by new issuance of equity.

Business Forecast for the Next 5 Years Normally, people use either weighted average of the past few years’ data or regression line to predict

the future key financials for a company. Since Tesla is a new automobile company with only 11

years of development history, it is decided to forecast based on Tesla’s own plan for its product

development and how it is going to allocate its capital. The average data for the past 5 years are

found biased because it is highly dependent on years 2009 and 2013 when a new model was released

into the market resulting in a boost in sales. (See Appendix 16) Therefore, the chosen method for

future projection is reasonable.

10

Next, sales and expenses for the next 5 years are forecasted separately. In 2014, Tesla is going to

penetrate into new markets other than North America. It will deliver the incumbent models to Japan,

China, the United Kingdom and Australia. A new Model X is about to be released in the spring of

2015 and another new Model, Gen III, is going to be offered at an even higher volume than that of

Model S in 2017. All these market and product expansion plans will surely boost the sales.

Correspondingly, expenses are going to increase to help fulfill the expansion plans. The amount of

supercharger stations will triple in 2014 and more factories and offices are going to be built to

facilitate the new market penetration. R&D is going to become the majority of their expenses for the

next 3 years due to the design for Gen III. It is assumed that manufacturing facilities cannot be

shared over different models. So the cost of goods sold per unit of a new model would be higher at

the start of the manufacturing process and gradually reduce due to economies of scales.

EBIT (Earnings before Interest and Tax) for the next 5 years is obtained by using free cash flow.

(Appendix 20) It is negative until 2018. Based on the fact that it is difficult to obtain an intrinsic

value for Tesla, investors should keep an eye on the company’s product and capital development to

see if there is any growth opportunity for the company in the future.

Summary Tesla is facing escalating competition as more automakers are producing green vehicles. But the

company is still expanding its market under the prevailing environmental initiatives and massive

growth potential. More core technologies need to be controlled by Tesla itself, reducing the potential

threats. The company is in financial fitness currently and it should put more effort to smoothing the

working capital fluctuations. The financial policy is aligned with its product development as well as

Tesla’s strategic development. Market value and stock price have been greatly increasing despite

having a large amount of new shares being issued. Lastly, investors are advised to pay attention to

the company’s future product development strategy to grasp the potential growth opportunities.

11

Appendix

Appendix 1: Timeline of Tesla’s Major Events

Appendix 2: Direct Competitor Comparison

GM = General Motors Company Pvt1 = Pininfarina S.p.A. TM = Toyota Motor Corporation Industry = Auto Manufacturers - Major

12

Appendix 3: Top 10 Manufacturers in the Industry by Market Share

Appendix 4: Electric Vehicles of Other Manufacturers

Appendix 5: Other Types of Energy-Saving Cars

13

Appendix 6: Debt to Equity Ratio

-400

-200

0

200

400

600

800

1000

1200

1400

Shareholders'equity Total Long Term Debt

14

Appendix 7: Debt to Market Cap Ratio

Appendix 8: Average Long-term Debt to Average Total Assets Ratio

0.000%

20.000%

40.000%

60.000%

80.000%

100.000%

120.000%

140.000%

160.000%

2010Q2

2010Q3

2010Q4

2011Q1

2011Q2

2011Q3

2011Q4

2012Q1

2012Q2

2012Q3

2012Q4

2013Q1

2013Q2

2013Q3

2013Q4

Tesla GM Toyota

15

Appendix 9: Net Working Capital

$-

$100,000

$200,000

$300,000

$400,000

$500,000

$600,000

$700,000

$800,000

$900,000

2010 2011 2012 2013

Current assets Cash and cash equivalents

Short-term marketable securities

Restricted cash

Accounts receivable

Inventory

$-

$50,000

$100,000

$150,000

$200,000

$250,000

$300,000

$350,000

2010 2011 2012 2013

Current Liabilities Accounts payable

Accrued liabilities

Deferred revenue

Capital lease obligations, currentportion

Customer deposits

Convertible debt, current portion

16

Appendix 10: Operating Cycle and Cash Cycle

In thousands December 31, December 31, December 31, December 31,

2010 2011 2012 2013

Accounts receivable $ 6,710 $ 9,539 $ 26,842 $ 49,109

Inventory 45,182 50,082 268,504 340,355

Accounts payable 8,951 56,141 303,382 303,969

Total revenues $ 111,943 $ 116,744 $ 204,242 $ 2,013,496

Total cost of revenues 102,408 86,013 142,647 1,557,234

2010 2011 2012 2013

Inventory Period 121.90 202.13 407.59 71.36

Accounts receivable period 21.88 29.82 47.97 8.90

Accounts payable period 78.48 180.55 459.97 71.18

Operating cycle 143.78 231.95 455.56 80.26

Cash Cycle 65.30 51.41 -4.40 9.08

2010

2011

2012

2013

-50.00 0.00 50.00 100.00 150.00 200.00 250.00 300.00 350.00 400.00 450.00 500.00

2010

2011

2012

2013

Operating cycle Cash Cycle

17

Appendix 11: Short-Term Financial Policy

Appendix 12: Free Cash Flow

Current Ratio

0

0.5

1

1.52

2.5

3

3.5

4

31-Mar-10

30-Jun-10

30-Sep-10

31-Dec-10

31-Mar-11

30-Jun-11

30-Sep-11

31-Dec-11

31-Mar-12

30-Jun-12

30-Sep-12

31-Dec-12

31-Mar-13

30-Jun-13

30-Sep-13

31-Dec-13

TESLA TOYOTA GM

Inventory

0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

400,000

2010 2011 2012 2013

Free Cash Flow

-200

-150

-100

-50

0

50

100

31-Mar-10

30-Jun-10

30-Sep-10

31-Dec-10

31-Mar-11

30-Jun-11

30-Sep-11

31-Dec-11

31-Mar-12

30-Jun-12

30-Sep-12

31-Dec-12

31-Mar-13

30-Jun-13

30-Sep-13

31-Dec-13

Free Cash Flow

18

Appendix 13: Cash Management

Appendix 14: Debt Financing History of Tesla

Time Creditor Type of Debt Amount Purpose (R&D)

Jan 2010 Department of

Energy

(DOE)

Loan + Warrant $465 million Model X

May 2013 Public Convertible Senior Notes $660 million Model X

GEM III

Feb 2014 Public Convertible debt $1,600 million GEM III

(Expansion to

World Market)

-400

-200

0

200

400

600

800

1000

31-Mar-10

30-Jun-10

30-Sep-10

31-Dec-10

31-Mar-11

30-Jun-11

30-Sep-11

31-Dec-11

31-Mar-12

30-Jun-12

30-Sep-12

31-Dec-12

31-Mar-13

30-Jun-13

30-Sep-13

31-Dec-13

Cash from Financing Cash from Investing Cash from Operations Total Cash Flow

19

Appendix 15: Equity Financing History of Tesla

Time Investor Price ($) Proceed ($ in million)

29 June 2010 Public (IPO) 17.00 184.47

June 2010 Toyota 17.00 50

Nov 2010 Panasonic 21.15 30

June 2011 Public 28.78 172.7

June 2011 Alon Musk (CEO) 28.78 59.1

Oct 2012 Public 28.25 222.1

May 2013 Public 92.24 355.1

May 2013 Alon Musk (CEO) 92.24 55

Total 1,127.47

Appendix 16: Growth Rate for the Past 5 Years

Appendix 17: Revenue Growth Rate Forecast

20

Appendix 18: Operating Expense Growth Rate Forecast

Appendix 19: Gross Profit Growth Rate Forecast

Appendix 20: Projection for the Next 5 Years

21

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