Commercial Flooring Market Overview

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Flooring Industry Analysis

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#1E Interface Investor Presentation JUNE 2019#2Interface® Forward Looking Statements and Non-GAAP Measures This presentation contains forward-looking statements, including, in particular, statements about Interface's plans, strategies and prospects. These are based on the Company's current assumptions, expectations and projections about future events. Although Interface believes that the expectations reflected in these forward-looking statements are reasonable, the Company can give no assurance that these expectations will prove to be correct or that savings or other benefits anticipated in the forward-looking statements will be achieved. Important factors, some of which may be beyond the Company's control, that could cause actual results to differ materially from management's expectations include the matters discussed under the heading "Risk Factors" included in the Company's Quarterly Report on Form 10-Q for the period ended March 31, 2019 and its most recent Annual Report on Form 10-K, which discussions are hereby incorporated by reference. Forward-looking statements in this presentation include, without limitation, the information set forth on the slide titled "Growth and Value Creation Strategy", the section of this presentation titled "Growth and Value Creation" and the slide titled "Investment Thesis". Other forward-looking statements can be identified by words such as "may," "expect," "forecast," "anticipate,” “intend," "plan," "believe," "could," "seek," "project," "estimate," "target," and similar expressions. Forward-looking statements speak only as of the date made. The Company assumes no responsibility to update or revise forward- looking statements and cautions listeners and meeting attendees not to place undue reliance on any such statements. This presentation includes certain financial measures not calculated in accordance with U.S. GAAP. They may be different from similarly titled non-GAAP measures used by other companies, and should not be used as a substitute for, or considered superior to, GAAP measures. Reconciliations to the most directly comparable GAAP measures appear in the Appendix. page 2#3Interface at a Glance Interface is a global leader of commercial flooring solutions including carpet tile, luxury vinyl tile (LVT) and rubber flooring. Headquartered in Atlanta, GA 7 manufacturing locations on 4 continents 4,100 global employees Sales in over 110 countries New Product Vitality Index** of 38% All products are Carbon Neutral ($ in millions, except EPS) 2017 2018 Net Sales $996 $1,180 Adj Operating Income* $119 $134 Adj EPS (Diluted)* $1.18 $1.49 Net Debt* $538 $210 Proforma Adj EBITDA % of Net Sales* 16% Net Debt / Proforma Adj EBITDA* ROIC* 2.6x 15% Proforma Adj EBITDA* page 3 APAC Americas 15% 55% 30% EMEA Non-Office Interface® * See Appendix for a reconciliation of Non-GAAP figures Corporate Office 47% 53% ** New Product Vitality represents products launched in the past three years and custom products Note: Geographic breakdown and segment figures represent proforma FYE 2018 sales for Interface and nora combined#4Investment Thesis VALUE DRIVERS . Strong brands that are participating in growth areas of the industry MID-TERM OBJECTIVES (4-6 years) • Positioned for growth in a $34 billion global category: - Leading share in carpet tile with ~22% of the segment - Leading share in rubber with ~-30% of the segment 42% • - Growing share in LVT with ~2% of the segment Attractive and expanding margin structure ⚫ Global footprint with manufacturing on four continents • Strong track record of value creation 16% Adjusted EBITDA CAGR page 4 ADJUSTED EBITDA* ($ in millions) 16% CAGR $210 $186 $157 $142 $152 $116 2014 2015 2016 2017 * See Appendix for a reconciliation of Non-GAAP figures 2018 Proforma 2018* Gross Profit Margin 15% Operating Income Margin 19% EBITDA Margin Interface®#5Investment Highlights: Who We Are COOL BLUE FOOD Interface® leading global provider of commercial flooring solutions most valuable brand in the flooring category strongest global sales & marketing capabilities global manufacturing footprint and industry-leading gross margins engaged, customer-centric culture, focused on performance and galvanized around our sustainability mission#6Growth and Value Creation Strategy Interface's vision is to become the world's most valuable interior products & services company Grow the Core Carpet Tile Business page 6 Build a Resilient Flooring Business Execute Supply Chain Productivity Optimize SG&A Resources Lead a World-Changing Sustainability Movement Centered Around Mission Zero and Climate Take Back. Ⓡ mission +CLIMATE TAKE BACK™ Interface®#7Interface Positioning#8• Leading Global Provider of Flooring Solutions Interface participates in the $34 Billion Global Commercial Flooring segment We are the global share leader in the $4.6 Billion Carpet Tile segment which continues to take share from broadloom • We entered the high growth $3.0 Billion LVT segment in 2017 Interface® • We entered the $0.9 Billion Rubber flooring segment with our acquisition of nora, the category leader Our served market has expanded from ~$4.2 Billion a couple of years ago to an estimated $8.5 Billion today GLOBAL COMMERCIAL FLOORING SEGMENT (in Billions) Hard Surface Wood $4.7 Other Resilient $2.9 Laminate $2.7 Soft Surface Broadloom $5.4 $0.9 Ceramic Tile $10.1 LVT $3.0 Rubber Other Carpet Tile page 8 $4.6 Source: Management estimates#9Participating in Attractive Commercial Flooring Segments . Interface serves growing segments of hard and soft surface with the highest margins GLOBAL COMMERCIAL FLOORING: SEGMENT SIZE vs FORECASTED GROWTH and GROSS MARGIN page 9 Est. CAGR thru 2020 6% 5% 4% 3% Wood $4.7B 2% 1% Broadloom $5.4B LVT $3.0B Ceramic Tile $10.1B Other Resilient $2.9B Rubber $0.9B Laminate $2.7B Carpet Tile $4.6B 0% 90 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% Gross Margin Source: Management estimates Interface®#10. Premium Player in the Specified Channel Interface competes on design, sustainability and innovation, commanding a premium price point and industry leading margins • Interface is the share leader in the specified and end user channels of commercial carpet tile which are highly influenced by Architects & Designers INTERFACE GLOBAL SHARE OF CARPET TILE PRICE CATEGORIES 100 00 90 volume in millions of square meters 40 800 30 60 50 50 60 2800 70 ■Interface ■ Total GLOBAL CARPET TILE SEGMENT BY CHANNEL End User 20 220 10 17% 42% 9% Specified Dealer 0 Low End Mid-Range High End Source: Management estimates Other Interface®#11Attractive Product Portfolio Carpet Tile • • • Biomimicry-inspired random design (i2) High recycled content No glue installation (Tac Tiles®) Faster, more profitable installation for contractors • Easily recycled (ReEntryⓇ program) • • Carbon neutral (Carbon Neutral Floors TM) Luxury Vinyl Tile (LVT) • Creative design freedom Complements and enhances our carpet tile portfolio - No transition strips needed Same sizes as our carpet tiles High acoustic value (Sound Choice TM backing) Carbon neutral (Carbon Neutral Floors TM) Rubber • noramentⓇ - sheet rubber • . noraplanⓇ-modular rubber tiles • Ideal for hygienic, safe flooring applications Extremely durable with strong chemical resistance • Carbon neutral (Carbon Neutral Floors TM) page 11 Interface®#12Modular Product Offering Benefits of Modular ● Creative design freedom No glue, no pad • Lower cost to change • Produces less waste • Faster, more profitable installation for contractors Easier to reconfigure and maintain Selective replacement page 12 Interface®#13Global Sales and Manufacturing Platform • Sales in over 110 countries . 1,100 sales & marketing professionals Global account management • Seven manufacturing locations on four continents Global supply chain management • Unique blend of efficiency and customization AMERICAS 55% of Net Sales EMEA 30% of Net Sales ASIA-PACIFC 15% of Net Sales Interface® Note: Figures represent proforma FYE 2018 for Interface and nora combined page 13 Carpet Tile Manufacturing Facility Rubber Manufacturing/Distribution Facility Showroom Location#14Diversified Customer Verticals BILLINGS BY SEGMENT 47% 53% Office ■ Non-Office CORPORATE OFFICE Highest penetration of carpet tile vs broadloom • Global Account management Emerging market penetration EDUCATION • K-12 and higher education ⚫ Second highest penetration of carpet tile vs • broadloom Second largest market for rubber HOSPITALITY • ⚫ Guest rooms, corridors and public spaces Named the brand standard or alternate at Hilton, Marriott, IHG and Choice Hotels properties HEALTHCARE • Hospitals, MOB, Assisted Living and Senior Living • Largest rubber market based on hygienic properties, chemical resistance and durability RETAIL Retail and bank branches • Significant opportunity for broadloom conversion page 14 Note: Figures represent proforma FYE 2018 sales for Interface and nora combined • High penetration of LVT Interface®#15Interface® Growth and Value Creation#16Growth and Value Creation Strategy Interface's vision is to become the world's most valuable interior products & services company Grow the Core Carpet Tile Business page 16 Build a Resilient Flooring Business Execute Supply Chain Productivity Optimize SG&A Resources Lead a World-Changing Sustainability Movement Centered Around Mission Zero and Climate Take Back. Ⓡ mission +CLIMATE TAKE BACK™ Interface®#17Grow the Core Carpet Tile Business • Enhance salesforce productivity - Execute on selling system transformation including reorganization, training and technology • . • . tools - Elevate and grow segments – Drive growth in priority segments including Corporate Office, Hospitality, Living and Education Optimize product portfolio – Expand our portfolio to increase the addressable market Lead the market in design and innovation - Continue to introduce innovative new products that energize and inspire Continue to develop brand love, commanding the strongest Net Promoter Score among A&D and End Users page 17 Interface®#18Build a Resilient Flooring Business • • Continue penetrating the high growth LVT segment, building on successful global LVT launch Integrate noraⓇ rubber flooring into our product portfolio • Leverage innovation pipeline • Expand global participation • Strategically expand product portfolio page 18 Interface®#19Resilient Flooring: nora Acquisition R noraⓇ nora is a leading global manufacturer of commercial rubber floorcovering systems for healthcare, education, life sciences, public buildings and other end markets page 19 Interface®#20Interface and nora Together Interface excluding nora Ⓡ Geographic Reach Segmentation page 20 APAC 15% EMEA 25% Non-office 40% Interface® + nora APAC 15% Americas 55% Americas 59% 30% EMEA 60% Office Americas EMEA APAC 15% 45% 55% 25% 85% 75% Non-office 47% 53% Office Americas EMEA APAC 38% 37% 43% 62% 57% 63% Note: Figures represent proforma FYE 2018 sales for Interface and nora combined Interface®#21Execute Supply Chain Productivity • Execute Troup County Optimization plan which we expect to yield annualized savings of $30M • Implement a dynamic yarn strategy • Continue to deliver on productivity pipeline initiatives page 21 Interface®#22Purpose-Driven Culture Galvanized Around a Common Sustainability Mission GLOBESCAN SUSTAINABILITY SURVEY - 20+ YEAR HISTORY 1997 1998 1999 2000 2001 2002 2004 2005 2006 2007 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 page 22 Unilever Patagonia Interface IKEA Tesla Natura M&S Nestle#23Purpose-Driven Companies Outperform their Peer Sets • We commit to running our business in a way that creates a climate fit for life - and we call on others to do the same. . We expect to demonstrate that industry can operate with carbon negative business models. As a first step, we are the first global flooring manufacturer to offer carbon neutral carpet tile and LVT across our entire product range. mission Ⓡ の CLIMATE TAKE BACK LIVE ZERO Aim for zero negative impact on the environment LOVE CARBON Stop seeing carbon as the enemy and start using it as a resource ENERGY USE 43% RENEWABLE ENERGY 88% GHG EMISSIONS 96% WASTE TO LANDFILL 91% WATER INTAKE 88% RECYCLED & BIOBASED MATERIALS 58% PRODUCT CARBON FOOTPRINT 66% page 23 Reduction versus 1996 Baseline + Interface® LEAD THE INDUSTRIAL RE-REVOLUTION Transform industry into a force for the future we want LET NATURE COOL Support our biosphere's ability to regulate the climate#24Moving Toward a Carbon Negative Business Model All our products. Carbon neutral. The next step is up to you. Interface® WE HAVE THE LOWEST CARBON FOOTPRINT IN THE INDUSTRY Proof Positive Carpet Tile Prototype It is possible to make a product with the potential to reverse global warming. 7kg 1 VS CO₂ 2 kg#254 STAIRS Financial Performance Interface#26GAAP Financial Results RECENT QUARTER RECENT YEAR END ($ in millions, except EPS) First Quarter Fiscal Year End 2019 2018 Change 2018 2017 Change Net Sales $297.7 $240.6 24% $1,179.6 $996.4 18% Gross Profit 115.4 93.6 23% 424.4 386.0 10% % of Net Sales 38.8% 38.9% 36.0% 38.7% SG&A Expense % of Net Sales 99.0 70.6 40% 327.5 267.2 23% 33.3% 29.3% 27.8% 26.8% Operating Income 16.4 23.0 (29%) 76.4 111.6 (32%) % of Net Sales 5.5% 9.6% 6.5% 11.2% Net Income 7.1 15.1 (53%) 50.3 53.2 (6%) % of Net Sales 2.4% 6.3% 4.3% 5.3% EPS (Diluted) page 26 $0.12 $0.25 (52%) $0.84 $0.86 (2%) Interface®#27Adjusted Financial Results* RECENT QUARTER ($ in millions, except EPS) First Quarter RECENT YEAR END Fiscal Year End 2019 2018 Change 2018 2017 Change Net Sales $297.7 $240.6 24% $1,179.6 $996.4 18% Adjusted Gross Profit 117.3 93.6 25% 456.5 386.0 18% % of Net Sales 39.4% 38.9% 38.7% 38.7% Adjusted SG&A Expense* ** 99.0 70.6 40% 322.2 267.2 21% % of Net Sales 33.3% 29.3% 27.3% 26.8% Adjusted Operating Income 18.3 23.0 (20%) 134.3 118.9 13% % of Net Sales 6.1% 9.6% 11.4% 11.9% Adjusted Net Income 8.4 15.1 (44%) 89.0 73.1 22% % of Net Sales 2.8% 6.3% 7.5% 7.3% Adjusted EPS (Diluted) $0.14 $0.25 (44%) $1.49 $1.18 26% Adjusted EBITDA $31.4 $34.1 (8%) $186.1 $152.4 22% page 27 Interface® * See Appendix for a reconciliation on Non-GAAP figures ** No adjustments for first quarter 2019#28Organic Sales Growth · Organic sales were up 2% in Q1 2019 • nora sales were up 9% in Q1 2019 Q1 ORGANIC SALES* ($ in millions) $275 $250 $241 $225 $200 2% Growth FYE ORGANIC SALES* ($ in millions) $1,100 $992 $1,000 $246 $900 $800 $700 $175 $600 Q1 2018 Q1 2019 2017 page 28 7% Growth $1,059 2018 * See Appendix for a reconciliation on Non-GAAP figures Interface®#29Adjusted EBITDA Growth Adjusted EBITDA grew 22% in FYE 2018 page 29 FYE ADJUSTED EBITDA* ($ in millions) $200 $152 $150 $100 $50 $0 90 22% Growth $186 2017 2018 Interface® * See Appendix for a reconciliation on Non-GAAP figures#30Adjusted Earnings Per Share Our value creation strategy is generating double digit Adjusted EPS growth ADJUSTED EARNINGS PER SHARE (DILUTED)* page 30 $1.50 24% CAGR $1.25 $1.18 $1.10 $1.03 $1.00 $0.75 $0.62 $0.50 $0.25 $1.49 $0.00 2014 2015 2016 2017 2018 Interface® * See Appendix for a reconciliation on Non-GAAP figures#31Capitalization and Liquidity TOTAL DEBT ($ in millions) $700 $525 $350 $270 $230 $214 $175 NET DEBT ($ in millions) $642 $700 $619 $525 $350 $175 $138 $143 $105 $575 $538 $0 $0 2015 2016 2017 2018 Q1 2019 2015 2016 2017 2018 Q1 2019 ADJUSTED EBITDA* ($ in millions) NET DEBT / ADJUSTED EBITDA* 3.5x $250 $202 2.9x 2.8x 3.0x $186 $200 2.5x $157 $152 $142 $150 2.0x 1.5x $100 0.9x 0.9x 1.0x 0.7x $50 0.5x $0 0.0x 2015 2016 2017 2018 Proforma 2015 2016 2017 2018 LTM Q1 Proforma LTM Q1 2019* 2019* page 31 * See Appendix for a reconciliation on Non-GAAP figures Interface®#32Capital Allocation for Value Creation Interface® . • Investing in the business to fuel our value creation strategy while upholding a disciplined approach to capital allocation Maintaining strong liquidity with $254 million available under our revolving credit facility as of March 31, 2019 CAPITAL DEPLOYMENT PHILOSOPHY Reinvest in the Business Invest in strategic initiatives with high returns including organic growth opportunities, innovation, manufacturing productivity and salesforce effectiveness Utilize excess cash to opportunistically refinance or pay down debt Evaluate Leverage Optimize cost of capital and target Net Debt / Adjusted EBITDA below 3.0x Explore M&A Opportunities Opportunistically evaluate accretive M&A transactions Return Excess Cash to Shareowners Returned $30M to shareowners in 2018 via dividends and stock repurchases page 32#33Investment Highlights: Who We Are COOL BLUE FOOD Interface® leading global provider of commercial flooring solutions most valuable brand in the flooring category strongest global sales & marketing capabilities global manufacturing footprint and industry-leading gross margins engaged, customer-centric culture, focused on performance and galvanized around our sustainability mission#34Appendix#35Appendix: Reconciliation of Non-GAAP Figures page 35 ($ in millions, except per share amounts) Net Sales as Reported (GAAP) Impact of Changes in Currency nora Net Sales Specialty Retail Sales Organic Sales Gross Profit as Reported (GAAP) Purchase Accounting Amortization Adjusted Gross Profit SG&A Expenses as Reported (GAAP) Transaction Related Expenses Adjusted SG&A Expenses Operating Income as Reported (GAAP) Purchase Accounting Amortization Transaction Related Expenses Restructuring and Asset Impairment Charges Adjusted Operating Income Q1 2018 Q1 FYE 2019 2017 FYE 2018 $240.6 $297.7 $996.4 8.0 $1,179.6 (8.4) (60.1) (112.6) (4.7) $240.6 $245.6 $991.7 $1,058.6 $93.6 $115.4 $386.0 $424.4 1.9 32.1 $93.6 $117.3 $386.0 $456.5 $70.6 $99.0 $267.2 $327.5 (5.3) $70.6 $99.0 $267.2 $322.2 $23.0 $16.4 $111.6 $76.4 1.9 32.1 5.3 7.3 20.5 $23.0 $18.3 $118.9 $134.3 Net Income as Reported (GAAP) $15.1 $7.1 $53.2 $50.3 Purchase Accounting Amortization (after tax impact of $0.6m Q1 2019 and $9.3m in 2018) Transaction Related Expenses (after tax impact of $2.1m in 2018) 1.3 22.7 7.4 Tax Act Expense (Benefit) 15.2 (6.7) Restructuring and Asset Impairment Charges (after tax impact of $5.2m in 2018 and $2.6m in 2017) Adjusted Net Income 4.7 15.3 $15.1 $8.4 $73.1 $89.0 Diluted EPS as Reported (GAAP) $0.25 $0.12 $0.86 $0.84 Purchase Accounting Amortization (after tax impact of $0.6m Q1 2019 and $9.3m in 2018) Transaction Related Expenses (after tax impact of $2.1m in 2018) 0.02 0.38 0.12 Tax Act Expense (Benefit) 0.25 (0.11) Restructuring and Asset Impairment Charges (after tax impact of $2.6m in 2017 and $5.2m in 2018) Adjusted Diluted EPS 0.08 0.26 $0.25 $0.14 $1.18 $1.49 Interface®#36Appendix: Reconciliation of Non-GAAP Figures Diluted EPS as Reported (GAAP) Purchase Accounting (after tax impact of $0.6m Q1 2019 and $9.3m in 2018) Transaction Related Expenses (after tax impact of $2.1m in 2018) Tax Act Expense (Benefit) Restructuring and Asset Impairment Charges* LTM Q1 Q1 2014 2015 2016 2017 2018 Q1 2019 2018 2019 $0.37 $1.10 $0.83 $0.86 $0.84 $0.71 $0.25 $0.12 0.38 0.40 0.02 0.12 0.12 0.25 (0.11) (0.11) 0.13 0.12 0.20 0.08 0.26 0.26 Interface® Debt Retirement Expenses (net of tax impact of $0.6m in 2013 and $4.2m in 2014) Australia Fire Impact (net of tax impact of $0.2m in 2012 and $3.6m in 2013) Tax Dispute Resolution Adjusted Diluted EPS $0.62 $1.10 $1.03 $1.18 $1.49 $1.38 $0.25 $0.14 * Restructuring and Asset Impairment Charges are net of tax impact of $4.9m in 2012, $3.6m in 2014, $6.7m in 2016, and $2.6m in 2017 and $5.2m in 2018 ($ in millions) 2014 2015 2016 2017 2018 Q1 2019 Total Debt $263 $214 $270 $230 $619 $642 Less: Cash Net Debt (55) (76) (166) (87) (81) (67) $208 $138 $105 $143 $538 $575 LTM Q1 Q1 ($ in millions) 2014 2015 2016 2017 2018 Q1 2019 2018 2019 Net Income as Reported (GAAP) $25 $72 $54 $53 $50 $42 $15 $7 Taxes on Income Transaction Related Other Expense Interest Expense Depreciation & Amortization 11 33 25 47 5 1 5 2 - - - 4 4 - 21 6 6 7 15 20 31 31 31 30 39 42 Stock Compensation Amortization Transaction Related Expenses Purchase Accounting Amortization Debt Retirement Expenses 4 14 6 7 15 14 203 7 11 3 5 5 - 32 34 2 Restructuring and Asset Impairment Charges Adjusted EBITDA 12 12 $116 226 20 7 21 21 $157 $142 $152 $186 $183 $34 $31 Total Debt/ Net Income Net Debt / Adjusted EBITDA 10.6x 2.9x 5.0x 4.3x 12.3x 1.8x 0.9x 0.7x 0.9x 2.9x ($ in millions) Proforma nora Net Income prior to Interface Ownership Proforma nora taxes on income prior to Interface Ownership For the Period 1/1/2018 8/7/2018 For the Period 4/1/2018 - 8/7/2018 $2 $4 (0) Proforma nora interest expense prior to Interface Ownership 7 4 Proforma nora Depreciation and Amortization prior to Interface Ownership 8 6 Proforma nora other non-recurring charges prior to Interface Ownership 7 6 Proforma nora Adjusted Earnings before Taxes, Interest, Depreciation and Amortization $24 $19 Proforma Interface + nora (pre-acquisition) Adjusted Earnings before Taxes, Interest, Depreciation and Amortization (AEBITDA) $210 $202 Total Debt / Net Income Net Debt/ Proforma AEBITDA 12.3x 15.2x 2.6x 2.8x page 36#37Appendix: Reconciliation of Non-GAAP Figures page 37 ($ in millions) Net Sales as Reported (GAAP) Proforma nora Net Sales prior to Interface Ownership (1/1/2018 - 8/7/2018) Proforma 2018 Interface + nora (pre-acquisition) Net Sales 2018 $1,180 166 $1,345 ($ in millions) Operating Income as Reported (GAAP) Purchase Accounting Transaction Related Expenses Restructuring and Asset Impairment Charges Adjusted Operating Income Adjusted Tax Rate Net Operating Profit After Tax (NOPAT) ($ in millions) Shareholder's Equity Total Debt Cash Invested Capital Return on Invested Capital (ROIC) = NOPAT / Average Invested Capital 2018 $76 32 5 21 $134 24% $102 2017 2018 Average 330 355 342 230 619 424 (87) (81) (84) $473 $892 $683 15% Interface®

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