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BCBA Board Certification in Business Valuation(R) (BCBA)

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BCBA exam Dumps Source : Board Certification in Business Valuation(R) (BCBA)

Test Code : BCBA
Test Name : Board Certification in Business Valuation(R) (BCBA)
Vendor Name : Real-Estate
: 251 Real Questions

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Real-Estate Board Certification in Business

Roberts Markel Weinberg Butler Hailey Has Most Attorneys in Texas who're Board licensed in property owners association law | killexams.com Real Questions and Pass4sure dumps

HOUSTON, Feb. 18, 2019 /PRNewswire/ -- Texas law enterprise Roberts Markel Weinberg Butler Hailey computer (RMWBH) is completely happy to announce that seven shareholders with the company are board licensed by means of the Texas Board of legal Specialization in true estate-homeowners association (POA) legislations, and the enterprise now has the highest number of attorneys licensed in that forte within the state.

In Texas, only 32 of over 103,000 licensed attorneys are board licensed in POA legislation. At RMWBH, Shareholders Rick Butler, Marc Markel, Clayton Hearn, Brady Ortego, Sipra Boyd, Clint Brown and Cliff Davis have completed this certification.

Of the forty attorneys at RMWBH, 15 are now board licensed, 10 of whom are licensed in as a minimum two specialty areas and three who are licensed in three uniqueness areas.

In Texas, handiest eight p.c of licensed attorneys are board licensed, with just one % of all attorneys board certified in two area of expertise areas.

To earn certification, attorneys ought to finished a rigorous program centered via the Texas Board of prison Specialization and the Supreme court of Texas. The procedure includes a stringent, uniqueness area examination this is designed to set apart these attorneys as practitioners with the maximum dedication and advantage of their areas.

"i am happy with all their attorneys who executed board certification this 12 months, including several who earned certification in a 2nd or third enviornment of legislation," referred to founding Shareholder Rick Butler. "It in reality shows the stage of commitment their legal professionals ought to their craft and their purchasers."

earning board certification for the first time are company Shareholders Sipra Boyd, Clint Brown and Jane Janecek. Boyd, Brown and Janecek finished their certification in Residential actual estate legislation. along with their POA law certification, Boyd and Brown are now double board licensed. additionally, attaining board certification in Residential actual property legislations is Shareholder Clayton Hearn.  

Hearn provides POA and Residential precise property to his existing Labor and Employment law certification, making him the handiest legal professional within the state with this specific combination of board certifications.

"The exams were a real look at various of my skills as an lawyer in POA law and Residential precise estate legislation," stated Boyd. "but the system of becoming a board certified legal professional has been beneficial, and i am longing for taking the advantage I have gained to more desirable serve my customers."

Others already board licensed on the firm in various observe specialties are Jeff Roberts and Gregg Weinberg in Civil Trial law and private injury Trial law; Rahila Sultanali in Residential and commercial precise property legislation; Himesh Gandhi in industrial precise property law; Rick Anderson and Dustin Fessler in commercial and customer legislation; and Justin Markel in Labor and Employment legislations. Rick Butler and Marc Markel in the past received board certifications in Residential precise estate legislation and commercial true property law and are now board certified in three areas.

About RMWBH – With workplaces in Houston, castle Bend, Austin, Dallas and San Antonio, Roberts Markel Weinberg Butler Hailey computing device, offers the event and functions clients require for their transactional and litigation wants statewide. Rated by means of U.S. information – superior lawyers as a suitable precise estate legislation enterprise, the Martindale-Hubbell AV-Preeminent RMWBH has apply areas protecting neighborhood associations, labor and employment for business house owners and employers, expert liability, administrators and officers litigation, fiduciary litigation, business litigation, appeals, construction legislations, company legislations and precise property transactions.

Media Contact:package Frieden   800-559-4534kit@androvett.com

View long-established content to download multimedia:http://www.prnewswire.com/news-releases/roberts-markel-weinberg-butler-hailey-has-most-attorneys-in-texas-who-are-board-licensed-in-property-house owners-affiliation-law-300796993.html

source Roberts Markel Weinberg Butler Hailey computer

Copyright (C) 2019 PR Newswire. All rights reserved


Williams Parker accomplice William M. Seider Attains Double Board Certification | killexams.com Real Questions and Pass4sure dumps

SARASOTA, Fla. – Williams Parker is completely satisfied to announce associate William M. Seider, a Florida Bar board certified true estate legal professional, has finished an further Florida Bar board certification in house and deliberate building law. he is one among three attorneys in Sarasota to hold both designations.

Mr. Seider handles various precise estate matters and focuses on representing developers to structure, finance, assemble, and improve condominiums and subdivisions. He also handles high-end residential income and has helped form greater than one hundred condominiums and subdivisions within the area, including Fairway Bay III, Marina Bay, sundown beach, Grand Bay I – VI, The Plantation Golf and country club, Phillippi Landings, and Marina Tower.

Williams Parker’s true property follow includes 15 attorneys, nine of whom are board licensed, and 14 true estate paralegals and felony assistants. From simple residential precise estate closings to advanced business transactions, the community offers tips on a full latitude of real property-linked considerations, together with financing, taxation, land use, deliberate traits, condominiums, and contracting, for precise estate professionals, builders, and traders. The firm also assists new residents in establishing residency and transitioning estates to take expertise of Florida’s favorable tax local weather and asset coverage laws.

About Williams Parker

based in 1925, Williams Parker includes over 50 attorneys and presents one of Florida’s greatest trusts and estates practices; tax and employment organizations with gigantic depth; and achieved true property, litigation, corporate, and healthcare practices. The firm also serves purchasers’ needs globally through its membership in Ally legislations, an international alliance of law enterprises, whose 60 member organisations include greater than 2,300 legal professionals in one hundred enterprise centers throughout forty countries. Williams Parker takes awesome delight in its contributions to the community and ongoing investment in its vicinity. The company is discovered at 200 South Orange Avenue, Sarasota, Florida. For greater tips, please talk over with www.williamsparker.com.

###


four Attorneys from Roberts Markel Weinberg Butler Hailey workstation Earn Board Certification | killexams.com Real Questions and Pass4sure dumps

HOUSTON, Jan. 12, 2017 /PRNewswire/ -- The Texas law enterprise Roberts Markel Weinberg Butler Hailey computing device is happy to announce that shareholders Rick V. Anderson and Brady Ortego and colleagues Justin Markel and Rahila N. Sultanali have earned Board Certification from the Texas Board of legal Specialization.

To earn Board Certification, attorneys need to complete a rigorous application based with the aid of the Texas Board of felony Specialization and the Supreme court of Texas. The certification procedure is designed to set lawyers apart as practitioners with the optimum dedication to excellence in their areas of follow. 

"The process is primarily complicated, but to earn Board Certification is facts of the commitment an attorney has for his or her follow and the legal occupation. we're very happy with their accomplishment," noted Marc Markel, shareholder and founding member of the company.

Mr. Anderson earned certification in consumer and business law. A shareholder in the Houston workplace, his observe focuses on high-stakes litigation involving complicated business litigation, enterprise litigation and professional liability. he is a 2007 graduate of the Baylor university school of law.

Mr. Ortego bought his certification in Residential precise estate legislation. A shareholder in the company's Houston workplace, he works with residential and business community associations and builders and lenders on company and transactional concerns. he's a 2003 graduate of the South Texas college of legislation.

Mr. Markel earned certification in Labor and Employment legislations. An associate within the Houston workplace, he's a 2010 graduate of the South Texas college of legislations.

Ms. Sultanali earned certification in each commercial and Residential precise estate law. An associate within the company's Sugar Land workplace, she is a 2010 graduate of the institution of Houston legislation middle.

together with the 4 most contemporary to earn the difference, 13 of the 35 attorneys at Roberts Markel now cling Board Certification in at least one enviornment of legislations.

in regards to the FirmRoberts Markel Weinberg Butler Hailey computing device is dedicated to presenting an improved degree of provider to shoppers in search of assistance in skilled liability, directors and officers litigation, fiduciary litigation, business disputes, labor and employment, power arbitration, appeals, neighborhood association legislation, and corporate and precise property transactions. The enterprise has offices in Houston, Austin, Dallas, San Antonio and fortress Bend County. To be trained more, please talk over with http://www.rmwbhlaw.com/.

For extra suggestions, please contact Mary Flood at 800-559-4534 or mary@androvett.com.

source Roberts Markel Weinberg Butler Hailey notebook

related hyperlinks

http://www.rmwbhlaw.com


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Board Certification in Business Valuation(R) (BCBA)

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DSM: There Is Still Upside Left After The 40% YTD Run | killexams.com real questions and Pass4sure dumps

Executive Summary

Sustainability, global warming, and pollution are all very active themes that are only set to grow in importance in the coming years. DSM (OTCQX:RDSMY) (primary listing in Amsterdam AMS:DSM) is one of the leading players in various fields of sustainability. While the company offers exposure to favourable global trends, excellent corporate governance, top class management, solid capital allocation, a clean balance sheet and interesting growth prospects, the market does not seem to fully value these qualities.

We think DSM is misunderstood by the market, which still views the company as a Materials business rather than a Nutrition group. This observation is based on both valuation multiples as well as the volatility of the share price:

2019E EV/EBITDA

Q418 drawdown

Materials peer group

7.5

-30%

Nutrition peer group

19.7

-11%

DSM

11.2

-24%

Source: Bloomberg

The fact is that DSM today generates 70% of profits in Nutrition and 30% in Materials, so any kind of sum-of-the-parts valuation arrives at a much higher valuation than today’s share price, even after the +42% recent share price run.

While this is appealing in itself, the bigger story is that the proportion of Nutrition will increase from the current 70% to 85-90% based on (1) the fact that DSM has a very promising pipeline of new product launches which are all to be found in the Nutrition segment and (2) they have the balance sheet and desire to acquire in Nutrition rather than in Materials. So, they believe the company will naturally evolve towards an 85-90% profit share from Nutrition which will at that point lead to the question whether it is not more intelligent to simply dispose of the Materials business.

It is difficult to explain why the market so vastly misunderstands the company, but they believe the following factors might be at play:

  • Most sell-side analysts covering the stock are chemicals rather than nutrition analysts, and they focus disproportionally on the Materials segment, even though it represents only 30% of profits.
  • The transformation of DSM is still relatively fresh, and the market is typically slow at adapting to companies that fundamentally transform their portfolios (the very gradual re-rating of Unilever as a case in point). In the minds of many investors, DSM is still a bulk chemical producer.
  • The biggest risk to their investment case is that they overestimate the quality of the business, which does not have a long track record in its current form.

    Afbeeldingsresultaat voor DSM

    Source: Company Website

    1. Introduction to the company

    DSM is a company that has undergone a complete transformation since its inception in 1902. The abbreviation stands for “Dutch State Mines”, referring to its original activity as a state-owned coal mining enterprise. The Dutch State decided to wind down this activity over the period 1950-1980 as (1) they started discovering natural gas reserves and (2) imported coal became cheaper. The last mine was closed in 1973, and DSM gradually shifted to petrochemicals, producing typical bulk chemicals such as polyethylene and polypropylene (plastics commodities). The second and final major shift for the company was away from petrochemicals and into nutritional ingredients. The following milestones are important to keep in mind:

  • 1998: DSM acquires Gist-Brocades, a biotechnology company that was established in 1869. At the time, Gist-Brocades was a major producer of yeasts and antibiotics to the pharmaceutical industry.
  • 2002: DSM sells its petrochemicals business to SABIC for 2.25bn EUR, putting a definite end to the production of commodity/bulk chemicals at DSM.
  • 2003: DSM furthers its switch with the acquisition of Roche’s vitamins & fine chemicals business.
  • The following figures further visualize DSM’s transformation process:

    Source: DSM Investor presentations

    Source: DSM Investor presentations

    2. The various business segments

    In 2018, DSM generated an adjusted EBITDA of 1.5bn EUR, which is for 70% generated by the Nutrition segment, with the remaining 30% accounted for by Materials.

    Source: Author's own graphical display based on company financials

    2.1 Nutrition – 70% of group EBITDA

    DSM is the global #1 in vitamin production, yet the company also has dominant positions in PUFAs, enzymes, eubiotics, dietary supplements, etc. In addition to animal and human nutrition, DSM’s ingredients are also used in the cosmetics industry (mostly sun care and fragrances). In terms of value chain, DSM is forward integrated, producing the active ingredients, but also further adding value through the production of forms and premixes. The slides below provide an excellent overview of DSM’s well-diversified Nutrition business:

    Source: DSM Investor presentations

    Source: DSM Investor presentations

    Source: DSM Investor presentations

    Source: DSM Investor presentations

    Nutrition represents no less than 70% of group profits and can be further broken down into the following activities:

    Source: Author's own graphical display based on company financials

    2.1.1. Animal Nutrition – 48% of Nutrition sales

    DSM has been a pioneer in feed additives and today features as one of the world’s leading suppliers of vitamins, carotenoids, eubiotics and enzymes to farmers, feedmills and integrators. As such, DSM addresses the world’s increasing need for animal protein, catering to an industry that is professionalizing at a rapid pace, in need of additives that ensure to raise animals in a more efficient and safer way. An example is the industry’s shift away from antibiotics, something DSM foresaw a long time ago and anticipated with its industry-leading range of eubiotics. A couple of product examples in Animal Nutrition:

  • CRINA Poultry Plus: a patented formulation of benzoic acid and essential oils for broiler chickens that improves the gastrointestinal functionality of poultry by stimulating the production of digestive enzymes and improving the balance of gut microflora.
  • Hy-D: a vitamin D3 metabolite that supports bone development, muscle formation and immune response in poultry and swine.
  • Rovimax: a nutritional solution for fish farmers to supply sufficient levels of free nucleotides in aquaculture feeds in order to improve the salmon’s immune system.
  • Source: DSM Investor presentations

    Source: DSM Investor presentations

    2.1.2 Human Nutrition – 35% of Nutrition sales

    Unsurprisingly, the main product categories DSM produces for Human Nutrition are the same as Animal Nutrition: vitamins, carotenoids, minerals, amino acids, nutraceuticals, nutritional lipids, preservatives, colorants, etc.

    Source: DSM Investor presentations

    Source: DSM Investor presentations

    2.1.3 Personal Care & Aroma Ingredients – 6% of Nutrition sales

    This activity offers solutions to personal care, home care and fine fragrance markets. The portfolio includes aroma ingredients, vitamins and natural bio-actives, as well as UV filters, peptides and polymers. DSM operates the largest portfolio of UV filters in the world, capitalizing on the increased use of sunscreen and increasing awareness around skin cancer.

    Source: DSM Investor presentations

    Source: DSM Investor presentations

    2.1.4 DSM Food Specialties – 10% of Nutrition sales

    DSM Food Specialties produces hydrocolloids, specialty food enzymes, cultures, bio-preservation solutions, savory ingredients, etc. These solutions focus on five trends: sugar/fat/salt reduction, enhanced taste experience, improved health and wellness, bio-preservation and food chain efficiency; i.e. these are specialty ingredients that find their way to lactose-free milk, sugar-reduced beverages, meat substitutes, gluten-free bread or beer, etc. This segment is entirely geared towards the phenomenal trend in so-called “free-from” food and beverages: consumers increasingly want specialized diets containing zero or a reduced amount of certain ingredients. DSM’s operations are tracking so well with customers that demand has outstripped their capacity for certain products (especially enzymes). Examples of products include:

  • Maxilact lactase breaks down lactose in dairy, making the products suitable for lactose-intolerant consumers. In addition, Maxilact’s natural sweetness allows dairy producers to reduce sugar by 20-50%. “Lactose-free” and “no added sugar” are two of the fastest growing categories in dairy. DSM was the first company to commercialize lactase.
  • Hydrocolloids are a further product category experiencing significant growth. Hydrocolloids are thickeners and stabilizers that dissolve, disperse or swell in water to modify the viscosity of products. DSM produces natural hydrocolloids which gain significant share from traditional, synthetic and animal-derived hydrocolloids.
  • Delvo Guard: a range of clean label, protective cultures that prevent yeast and mold growth in dairy products, extending shelf life without sacrificing taste or texture.
  • ModuMax enhances the taste for products that have lost their taste appeal due to lower fat, salt or sugar content. It is also used in high-protein diets with undesirable taste notes. ModuMax is allergen-free, suitable for vegetarian foods and certified non-GMO.
  • Source: DSM Investor presentations

    Source: DSM Investor presentations

    2.2 Materials – 30% of group EBITDA

    Materials is the other segment DSM reports and represents roughly 30% of group profitability. The segment in turn consists of three business lines:

    Source: Author's own graphical display based on company financials

    As was the case for the Nutrition segment, Materials is also a truly global business, with activities nicely split between Europe, Asia and the U.S. Note that DSM is virtually not present in Latam in Materials. In terms of end-markets, it is important to acknowledge that Materials is a strictly more cyclical business than Nutrition, with building & construction, auto and electronics as significant end-markets. Their assessment is that 2/3rd of the Materials segment is cyclical, i.e. for DSM as a group, they deem 80% of profits to be generated in defensive end-markets and 20% in cyclical end-markets.

    Source: Author's own graphical display based on company financials

    Source: Author's own graphical display based on company financials

    DSM characterizes its materials portfolio in the following way:

    Source: DSM Investor presentations

    We should be aware that in chemicals “maximize returns” is a euphemism for mature, more commoditized activities. As the size of the dots represent the size of the activities, it is clear that at least a significant part of the Materials portfolio represents activities where DSM intends to maximize margins and return on capital. The growth in these business lines is more muted, but the company does hold nice nichy monopoly positions: its products are found in 100% of mobile devices and 90% of cars around the world, whereas 55% of all internet traffic occurs through DSM protected fiber optic cables.

    2.2.1 Engineering Plastics – 51% of Materials sales

    DSM Engineering Plastics is a global supplier of high-performance thermoplastic solutions that are mostly used in automotive and electronics applications. DSM invented high-temperature polyamides, a product range that has witnessed stellar growth as traditional production materials are steadily replaced by high-performance plastics, especially in automotive, as these polyamides show similar strength but much lower weight than metals.

    Source: DSM Investor presentations

    While plastics will always sound like a commodity business, it is easy to underestimate the technological nature of this activity. High-performance plastics have undergone a significant evolution over the past few years. The products that are currently used have all been developed over the last 5 years and, as with phones e.g., it would be unthinkable to use plastics devised by technology from 5 years ago. Main application areas are automotive and electronics, where Apple (NASDAQ:AAPL) is a customer example. While Apple is usually a difficult client (they are super demanding), they are a great reference to have and a sign you are able to produce high-spec products. Automotive applications are mostly found where there is high friction and large temperature ranges. A new growth area is cloud computing, as the data centres contain ever more tiny connectors and switches.

    2.2.2. Dyneema – 12% of Materials sales

    Dyneema was invented in DSM’s laboratory and patented in 1979. It is the world’s strongest fiber, being 15 times as strong as steel on a weight-for-weight basis, or 40% stronger than aramid. Dyneema floats on water and demonstrates an extreme combination of lightness and strength. Today, Dyneema is used in a wide variety of applications:

  • Anchoring of offshore platforms in oil & gas industry
  • Cables used in mooring large ships
  • Bulletproof vests for intelligence agencies, police, military
  • Formula one cars
  • Medical technology (orthopaedic, prosthetics)
  • Sports equipment (kites, fencing, ice hockey, mountaineering, etc.)
  • Cables and lines to attach blades to windmills
  • The goal for Dyneema is to constantly find new applications and further take share from other high-performance fibers such as aramid. Dyneema is a nice example of DSM’s competence to launch new products that come out of the firm’s own R&D. After being on the market for 40 years, Dyneema still generates double-digit organic growth.

    2.2.3. Resins & Functional Materials – 37% of Materials sales

    The easiest way to explain this business is to first understand the different kinds of resins that exist. There are solvent-based resins, water-based resins, powder resins and UV-curing resins. Coatings or paints then take the name from their resins, i.e. water-based paint, solvent-based paint, etc.

  • Traditionally, solvent-based coatings have dominated the market. They are made up of liquefying agents that are meant to evaporate via a chemical reaction with oxygen, i.e. moving air around the coating will speed up the process and reduce drying time. The advantage they have over water-based coatings is that they traditionally have been less susceptible to environmental conditions such as temperature and humidity during the curing phase, enabling them to be used in any kind of environment. The big downside to solvent-based coatings is that the chemical curing releases odors, and more importantly, so-called volatile organic compounds ("VOCS") that can be toxic.
  • Increased regulation on the emission of "VOCs" has sharply increased the popularity of water-based coatings, in addition to technological advances that have made water-based paints more robust to varying levels of temperature and humidity.
  • Powder coatings are completely different in that they are mostly used as finishes. They are based on polymer resins, which are in form similar to a uniform powder such as baking flour. They are applied through spray guns rather than rolls or brushes. Powder coating is typically used for coating of metals and MDF, which require a stronger finish.
  • UV curing is the most advanced method, used for inks, adhesives and coatings. It is high-speed, precise and very strong. Therefore, it is mostly used in end-markets such as medical, electronics, 3D printing and automotive.
  • To sum up, powder coatings and UV curing are used in specific circumstances, whereas water-based and solvent-based coatings are direct competitors where water-based is taking significant share from solvent-based coatings due to increased regulation on VOC emissions.

    Source: Author's own graphical display based on company financials

    Now, let’s look at how DSM is positioned:

  • As usual, DSM is on the right side of the regulation trade, having pushed for solvent-free coatings since the early days. It has an extensive portfolio of water-borne resins and is not active in solvent-based resins. They have even taken the debate one step further and have recently launched a product (called Sigma Air Pure) with an air purification effect. Sigma Air Pure is claimed to remove up to 70% of the harmful formaldehyde from indoor air. The product is a bio-based technology that DSM co-developed with PPG. This new product nicely plays into the fact that the EU has issued a directive requiring 30% of European paint to be bio-based by 2030.
  • In UV-curing resins, DSM has a distinct position, as it invented the first fiber-optic coating 40 years ago. It is today the global market leader in fiber-optic coatings and c. 55% of all internet traffic occurs through cables that are protected by DSM coatings. These coatings are nowadays increasingly used in additive manufacturing (3D printing). In addition, uptakes of 4G and 5G and the required investments spur demand for DSM’s coatings.
  • As to powder coating resins, DSM once again claims to have invented this space 60y ago and is one of the main players today, especially with its new zero-VOC technology.
  • Source: DSM Investor presentations

    One further example of the shift from solvent-based to water-borne coatings are Chinese containers. 95% of the world’s sea freight containers are made in China and virtually all are painted with solvent-borne coatings, constituting one of the major VOC emission sources in China. DSM founded the Waterborne China Platform back in 2010, and this political action has seen success: in 2016, China has decided to switch to water-based coatings for sea-freight containers in light of its “Blue Skies Policy”. It once again shows DSM’s excellent political relations in China, and this example is one of many reasons why on earnings calls DSM constantly mentions its growth is spurred by China’s “Blue Skies Policy”, which will further support results over the next few years.

    2.3 Innovation Center

    The Innovation Center serves two functions: first to develop new business, focusing on areas outside the current scope of activities. The second function is to accelerate the innovation power and growth of the core business. In addition, the Innovation Center is responsible for patents, protection of IP, etc.

    DSM’s goal is to generate at least 20% of sales from products that were launched via the Innovation Center in the last 5 years, and these products should carry a higher margin than the group average. The company spends no less than 5% of its sales on R&D and estimates this proportion to remain true in the future. Currently, the Innovation Center holds the following noteworthy projects:

    DSM Biomedical produces biomaterials for the medical technology sector, Medtronic is a large client. DSM’s efforts in the field actually date back more than 25 years, but it was never a major priority. It was merely another application of Dyneema where bits of steel or metal in surgery were replaced by Dyneema, as it was much lighter and more sustainable. This changed in 2012 when they acquired Kensey Nash in the U.S. to focus more on this activity. The Kensey Nash acquisition has been a disappointment, however, as the company has lost a large account over recent years, and performance has been below expectations. DSM paid 12x EV/EBITDA for Kensey Nash. Trading performance has significantly improved recently with 2018 being a stellar year, and the pipeline currently has promising projects, mostly in ophthalmology.

    Bio-based Products captures two alliances that focus on renewable energies and renewable building blocks. In 2012, DSM launched a JV with POET LLC, one of the world’s largest bio-ethanol producers, to commercially develop and license cellulosic bio-ethanol. This is derived from corn crop residue by way of hydrolysis followed by fermentation. In 2011, DSM and Roquette announced they would build a commercial scale plant for the production of bio-based succinic acid, the first non-fossil feedstock that allows customers in the chemical industry to use a bio-based alternative to run their chemical plants.

    DSM’s efforts in the solar market are focused on increasing the yield on solar panels. The main activity consists of the production of anti-reflective coatings, in which DSM is the global market leader. They have recently also launched extremely strong backsheets to extend the life of solar panels that are installed in harsh environments (deserts, tropical environments, floating solar parks, etc.).

    As of today, the profit generation of the Innovation Center is meaningless, generating 8mio EUR EBITDA in 2018. These products are in development stage and should increase in importance over the next years.

    3. Barriers to entry

    As DSM is active across a wide range of products, it is difficult to discuss the barriers to entry in each specific market they operate. They note that vitamin production is their #1 activity, representing roughly half of Nutrition sales, which in turn represents 70% of group profitability. Furthermore, vitamin production consists of a synthesis process where the side-streams develop into other product categories such as aromas, scents, carotenoids, etc. Vitamins are not only DSM’s most important business, it is also the most misunderstood one, especially with respect to barriers to entry, as some market commentators have stated it is not very difficult for Chinese players to enter the market. There are a couple of factors they need to discuss:

  • Every vitamin is different
  • Not all processes are alike
  • The end-markets matter, as well as the roles you play in the value chain
  • The Chinese environment has changed a lot
  • First of all, it is key to understand that production is very different for each kind of vitamin. The processes range from chemistry to biotechnology to fermentation to bio extraction… it is not like you set up a plant and start producing a variety of vitamins. For starters, there is a big difference between water-soluble vitamins (B and C) and fat-soluble vitamins (A, D, E, K), with the latter being more difficult to produce. Even for the range of B vitamins (there are grosso modo 8 different B vitamins), production of one B vitamin is completely different from another B vitamin. The breadth of DSM’s vitamin offer is unmatched globally. As they said, especially the production of fat-soluble vitamins is highly complex: in order to produce A, D, E or K vitamins, you need to set up a range of plants covering the at least 20 conversion steps necessary to produce the vitamins. Setting up such a complex of plants requires at least 500mio EUR. There are only two players in Europe who own such a complex, BASF (OTCQX:BASFY) [ETR:BASF] and DSM, and it would be completely irrational for anyone to set up a third complex, so a nice and steady duopoly, in my opinion.

    Next, not all processes are alike. BASF and DSM actually use a different process to come to the same end products. BASF uses an easier citral process, with fewer side streams. DSM’s process has side streams that produce carotenoids, aromas, intermediates, scents, etc. which are highly valued end products in itself.

    Further, the end-markets matter a lot. To give an example, as they said, production of vitamin B and C is less specialized and less capital-intensive than the production of fat-soluble vitamins. However, when it comes to the production of vitamin C for the infant formula market, DSM has a virtual monopoly, serving the globe from their Scotland-based plant. The vitamin C that DSM produces in Scotland is perceived as the most secure and high-quality vitamin C to come by, so whenever Nestlé (OTCPK:NSRGY) (SWX:NESN), Abbott (NYSE:ABT), Danone (OTCQX:DANOY) (EPA:"BN") or Mead Johnson (LON:RB) produce infant formula, they will always source it from DSM. So, even for the important Chinese baby formula market, these players will not use the many Chinese players that exist, simply because they cannot run the risk of messing up with the quality of baby food, especially in a region where scandals with infant formula are still fresh in the minds of many parents. This is different compared to Animal Nutrition, where the sensitivity nature of the product is different. Yes, the products still end up in the food chain, but there is still a big difference between what Danone puts into its baby food versus what farmers use to feed poultry. Next, it also matters what roles you fulfill in the value chain. DSM is completely integrated and mostly produces premixes, so it doesn’t provide its customers with vitamins, but rather with ready-to-go solutions. For instance, DSM will deliver a premixed bag of ingredients to Danone or Nestlé who simply need to add milk and the product is done, i.e. these are highly tailored solutions for the clients.

    Lastly, the Chinese environment has changed. China has always been a region with many vitamin players, but they have always focused on the easier, water-soluble vitamins and never really on fat-soluble vitamins. Furthermore, two things have changed over the last decade:

  • The environmental regulation has drastically changed, which has allowed DSM to take significant market share in China, with their best in class production sites. The Blue Skies policy has been great for DSM: the increased regulation has put many local players out of business. DSM claims that, from an environmental regulation point of view, it is today more difficult to set up production in China than in Switzerland, where its European production is based.
  • In the past, vitamin production was an area where China wanted to be active, which was subsidized and incentivized by the state. This is no longer the case, and all local producers are now in the hands of regular business people and shareholders, the state is no longer involved, so the playing field is levelled.
  • 4. Strategy and targets

    DSM’s strategy is to generate excellent bottom line results through innovation as a sustainability leader. As they have already talked at length about their sustainability efforts, let’s turn to how this translates financially.

    First, let’s have a look at how the company has performed over its prior strategy period 2015-18. They note they have vastly outperformed their targets: they have delivered a +13% adjusted EBITDA CAGR (based on >5% average organic growth and significant margin expansion) vs their high-single digit goal:

    Source: DSM Investor presentations

    Source: DSM Investor presentations

    The “temporary vitamin benefit” refers to a fire at a BASF vitamins plant for citral production, a force majeure that significantly benefited DSM in 2018 as capacity was temporarily impaired and thus prices shot up for a select amount of DSM’s products (mainly vitamin A and E). The company has consistently stripped out this positive effect using normalized vitamin prices. Everything they discuss is based on underlying results, not taking into account the exceptional profitability of 2018. This extreme profitability was temporary and now behind us, but still a very nice tailwind for deleveraging and cash generation.

    So, after significantly exceeding expectations the question becomes where do they go from here? DSM has announced new targets for the period 2019-2021 at its Capital Markets Day in June 2018:

    Source: DSM Investor presentations

    The central target of the new strategy period is to grow FCF at c. +10% p.a. With this target, DSM admits that FCF growth is the one area where they have lagged in the prior strategy period: while all other profitability and top-line metrics were strong over 2015-18, FCF has compounded at a meagre +5% as cash conversion has slipped. It is now improving its cash conversion by focusing on reducing its working capital. Other than cash flow, they note the targets are relatively similar to the prior strategy period, demonstrating the structural attractiveness and momentum of the mix of activities.

    One area where they could see outperformance of 2021 targets is adjusted EPS. If DSM does not find suitable acquisitions candidates at attractive multiples, it will increasingly use its excess cash to buy back shares, which could in turn result in an adjusted EPS growth ahead of targets.

    5. Management

    Feike Sijbesma became CEO of DSM in 2007. Upon graduation at Erasmus University Rotterdam he joined Gist-Brocades where he made his way up and eventually led the Savoury Business. Gist-Brocades was bought by DSM in 1998 and Sijbesma became head of the Food Specialties division. He became member of the Managing Board in 2000 and was responsible for the acquisition and integration of the Roche activities in 2002-2003. The portfolio transformation and repositioning has occurred under his leadership.

    Sijbesma receives a lot of credit from the investor community and seems extremely well-connected politically. His clout mostly extends to the World Bank, United Nations and World Economic Forum. Somehow, he also seems to have great China relations. A couple of awards and Board positions:

  • Humanitarian of the year – United Nations (2010)
  • World’s 50 Greatest Leaders – Fortune (2018)
  • Winner Fortune Award Circular Economy Leadership – World Economic Forum (2016)
  • Leader of Change Award – United Nations (2011)
  • Co-Chair of the High-Level Assembly of the Carbon Pricing Leadership Coalition ("CPLC"), convened by the World Bank
  • Vice chairman Global Agenda Council Role of Business in Society World Economic Forum (WEF)
  • Co-Chair Annual Meeting of the New Champions WEF – China
  • Global Climate Leader – World Bank (2017)
  • Geraldine Matchett has been CFO of DSM since 2014, having served in the same role at Swiss SGS Group (SWX:SGSN) from 2010 to 2014, where she was voted CFO of the year. Prior to joining SGS in 2004, she worked for Deloitte in Switzerland and for KPMG in the UK.

    Positive to note is that this week, DSM announced that all members of the executive committee have opted to convert 50% of their gross short-term incentive bonus into DSM shares. To me, this is a clear sign that even at a €100 share price, the management still sees significant long-term upside.

    6. Ownership

    There are no major reference shareholders nor activists in the stock. Capital Group holds 7.2% of the shares, Sijbesma has 0.09% or 17mio EUR. DSM has never been the subject of activist interest but has routinely been mentioned as a take-over candidate (e.g. Bloomberg article). They note the same has been true for Croda (LON:CRDA), another top-notch consumer ingredients company, though for both companies nothing has ever materialized.

    7. Corporate governance

    In terms of corporate governance, they think there are two points worth mentioning. Even though Feike Sijbesma receives a lot of credit, they note that:

  • His fixed salary is 920k EUR, which would be more if DSM followed its normal rules for executive pay, comparing salaries to a peer group etc., but apparently, he makes less upon his own request.
  • The roles of Chairman and CEO are split, and this has always been the case. Rob Routs is chairman of the Supervisory Board, his term ends in 2020. Throughout his career, Rob Routs has served in several senior positions at Shell (NYSE:RDS.A).
  • 8. Financials

    Below they provide a brief summary of DSM’s main financials. The period is short, as this is the horizon over which they have comparable numbers, since the business portfolio has changed significantly. The 2018 underlying numbers exclude the exceptional profitability from BASF’s plant outage, the stated numbers include the vitamin price effect.

    2015

    2016

    2017

    2018 underlying

    2018 stated

    Sales

    7,722

    7,920

    8,632

    8,852

    9,267

    Sales growth - nominal

    9.5%

    2.6%

    9.0%

    2.5%

    7.4%

    Sales growth - organic

    1%

    4%

    9%

    6%

    Gross profit

    2,309

    2,658

    2,933

    3,405

    Gross margin

    29.9%

    33.6%

    34.0%

    36.7%

    Adj EBITDA

    1,075

    1,262

    1,445

    1,532

    1,822

    Adj EBITDA margin

    13.9%

    15.9%

    16.7%

    17.3%

    19.7%

    Adj EBIT

    573

    791

    957

    1,055

    1,345

    Adj EBIT margin

    7.4%

    10.0%

    11.1%

    11.9%

    14.5%

    EPS

    2.1

    2.9

    3.9

    5.8

    EPS growth

    -9.6%

    35.6%

    35.2%

    48.6%

    ROCE

    7.6%

    10.4%

    12.3%

    13.3%

    16.8%

    Net debt/EBITDA

    2.16

    1.64

    0.51

    0.07

    0.07

    Cash from operations

    696

    1,018

    996

    1,126

    1,391

    Source: Company financials

    8. Capital allocation

    8.1 Debt

    DSM has deleveraged very nicely over the past 5 years and turned cash neutral at the end of 2018. This deleveraging is in part due to strong operational cash flow, but even more driven by divestments of non-core activities. They will further discuss these disposals in the M&A section.

    Source: Author's own graphical display based on company financials

    8.2 Capital return

    Buy-back vs. M&A

    DSM’s capital allocation priorities have always been clearly communicated to the market:

    Source: DSM Company Presentations

    DSM surprised the market at its full-year 2018 results with the announcement of a 1bn EUR buyback. The market had rather anticipated DSM to make acquisitions in Nutrition, as they had always stated. The buyback announcement came as a relief as there was certainly a concern in the market that DSM would have to pay an elevated price to acquire in Nutrition, as multiples in this industry in general are quite steep. However, DSM has stated that, even with the buyback, it still has ample room to do M&A. This is correct: if the firm would lever up to 2.5x EBITDA (which is certainly not excessive for a stable, cash generating business like DSM), they would have nearly 4bn EUR to execute deals. They view the buy-back announcement as positive, signalling that DSM is disciplined in its M&A strategy and not willing to pay steep multiples to acquire at any cost. In addition, the balance sheet leaves ample flexibility to execute deals if opportunities would arise at decent valuations.

    Dividend

    The dividend was held stable during the 2013-2015 period as DSM was putting through many portfolio changes. For 2018, the dividend was hiked by no less than +25%. The current dividend translates to a 2.3% dividend yield and c. 40-50% pay-out ratio.

    Source: Author's own graphical display based on company financials

    8.3 Capex

    Capex as a % of sales has averaged 6.5% of sales, which DSM forecasts to remain the case over the strategy period 2019-2021. 50-60% of capex is related to growth capex, while two-third of capex is spent in the Nutrition segment.

    Source: Author's own graphical display based on company financials

    8.4 M&A

    Acquisitions

    DSM has consistently stated it wants to acquire “predominantly in Nutrition”. The market has at times speculated it wants to push the final frontier of its transformation by selling its Materials segment and making further acquisitions in Nutrition.

    Over the past couple of years, DSM has made a number of very small acquisitions where it mostly buys technologies, but significant deals have not taken place. Given its recent surprise announcement of a buyback, they think it is clear that transformational M&A is not imminent. However, as they pointed out, DSM does have the ambition to acquire in Nutrition, and it has the balance sheet to do so. DSM has stated in the past it wants its acquisitions to be cash EPS accretive in the first year of close, meeting profitability, sustainability and growth targets of the group.

    Disposals

    While DSM has been relatively silent on the acquisition front, it has consistently continued the disposal process of its more commoditized and cyclical activities. There are three main activities (Patheon, Sinochem and ChemicaInvest) where DSM has been in the process of disposal over the last years. Rather than selling the activities outright, DSM has chosen to bring these activities in JV structures, gradually selling their interests.

    Patheon was formed in 2014 when JLL Partners (private equity) and DSM combined DSM’s Pharmaceutical Products with Patheon’s activities. Patheon is a leading global provider of outsourced pharmaceutical development and contract manufacturing services ranging from formulation development to clinical and commercial-scale manufacturing, packaging and lifecycle management. Patheon was divested in 2017 to Thermo Fisher (NYSE:TMO), with proceeds to DSM of over 2bn EUR, which represents a very nice exit for DSM. This was by far the most important exit for the company.

    DSM Sinochem Pharmaceuticals was formed in 2011 as a 50/50 JV between DSM and Sinochem. The company is active in sustainable antibiotics, next-generation statins, anti-infectives and anti-fungals, selling active ingredients. In October 2018, the company was sold to Bain, with DSM receiving 275mio EUR, which represents a book profit of c. 110mio EUR.

    ChemicaInvest is a JV between DSM (35% share) and CVC Capital Partners (65%) that initially housed 3 chemical businesses: Fibrant, Aliancys, and AnQore. Together, they generated c. 2bn EUR in sales at a 10-12% EBITDA margin. Fibrant was divested in 2018 to a Chinese company with cash proceeds for DSM of 200mio EUR. Fibrant produces caprolactam, a chemical input that DSM requires in its Engineering Plastics activities, so the divestment agreement contained a clause that secures >80% of DSM’s caprolactam needs up until 2030. This means the ChemicaInvest JV now only holds Aliancys (composite resins) and AnQore (acrylonitrile), which jointly generated c. 700mio EUR in sales at an EBITDA margin of 12%. These businesses will be divested in the near future, which will conclude DSM’s divestment process.

    9. Sales growth

    Historical growth

    While organic growth in the Nutrition segment has been very steady between +5% and 8%, Materials has been significantly more volatile, ranging between -4% in 2015 and +13% in 2017. The EBITDA of Materials is a lot less volatile, however, as the volatility in organic growth is price-driven based on input cost fluctuations, not volume-driven. These price-driven changes in organic growth are then offset by the margin that is more favourable in an environment of deflationary input costs.

    Source: Author's own graphical display based on company financials

    Future growth – pipeline

    To get a better sense of future growth, they take a look at the major projects that should deliver the future organic growth. DSM is a company that stands out in terms of investing in its future organic growth:

    Clean Cow represents one of DSM’s most promising projects, where it wants to tackle one of the most well-known environmental problems: methane emissions from cows. Cows emit 500l of methane per day, equivalent to 10% of the energy they would otherwise use for performance and milk production. DSM has developed a special feed solution that reduces enteric methane emissions by at least 30%. It sees an attractive market potential of 1-2bn EUR in sales with launch after 2019.

    Source: Author's own graphical display based on company financials

    Clean Cow is a project that DSM has worked on for a while now and, as with many innovations, the main bottleneck has been that it is indeed a great innovation, but no one really wanted to pay for it. This has changed over the recent past, with especially the dairy industry (Netherlands, New Zealand, Ireland) showing significant interest. The interest stems from both farmers as well as governments. For governments, the incentive is purely ecological: they make a trade-off between all kinds of policy decisions regarding fossil fuels, clean energy, traffic, etc. and have figured out that an investment in the Clean Cow project (via subsidies or what not) actually achieves their goals in a cost-efficient manner. For the farmers, apparently the incentive is image: larger dairy companies struggle with the negative publicity around the GHG emissions from cows and see Clean Cow as the best way to remedy this.

    Veramaris is a 50/50 JV between DSM and Evonik ("EVK") focused on animal feed for salmon farming. Over the past years, the steadily increasing consumption of salmon has been fully supported by aquaculture, as wild capture has stagnated due to quota. Many commentators (including DSM) believe these trends are unsustainable in terms of salmon feed, i.e. the growing demand for salmon can only be met through ever-increasing aquaculture but the salmon feed industry is struggling to keep up with demand and alternatives need to be found:

    Source: Company Investor Presentations

    Source: Company Investor presentations

    This anticipated supply/demand gap is exactly why DSM has launched the JV, in addition to many claims that salmon farms often use unsustainable growing methods. The goal of the JV is to produce omega-3 fatty acids (EPA and DHA) as an ecological alternative to fish oil (currently c. 17% of wild catch is used to produce fish oil). DSM’s solution does not use wild-caught fish but produces the omega-3 fatty acids from natural algae.

    The JV is currently setting up a production facility in the U.S. (total capex 200mio USD that is split evenly between DSM and Evonik) that will be able to meet 15% of current demand from the aquaculture industry. Construction of the plant is expected to be finished by the summer of this year. The plant will be able to generate c. 150-200mio in sales and apparently clients are already asking DSM to build a second plant to meet their increased demand. DSM management, however, wants to wait and see how the first plant is going.

    DSM has been working on sugar replacement for years, and stevia is the only real natural identical product to sugar. The problem with stevia is that it currently only comes from plant extracts which have an irregular supply, are too expensive to harvest, and cannot produce the volumes necessary. Therefore, it needs to be fermented to become really big. DSM has worked on this for quite a while and now claims to have the right form. As it happens, Cargill was working on a similar project, and DSM and Cargill found themselves in a complementary situation and decided to team up. They formed it as a 50/50 JV, shared technologies and will go to market together, splitting the profits. In terms of commercial strengths, Cargill has good access to the large beverages players, while DSM delivers the flavours and fragrances companies. Longer-term, the plan is to attack the entire sugar market, but the first in line is the artificial sweetener market, i.e. aspartame and saccharide.

    Niaga (“again” spelled backwards) is focused on the circular economy and wants to create fully recyclable products, especially for materials that currently generate significant amounts of hazardous waste. The first success is fully recyclable carpet, developed and commercialized together with Mohawk (NYSE:MHK). The second step is to produce fully recyclable mattresses through a co-operation with Auping.

    Pipeline – financials

    As none of these innovations is in ramp-up phase, it is relatively difficult to estimate their future potential in terms of profitability and order of magnitude. What they do know is that Clean Cow, Veramaris and fermentative stevia are the three big projects to watch. As it happens, all three have a fairly similar timing: approvals and plant construction in 2019, first sales in 2020 that will come to full ramp-up in 2021-2022.

    In terms of financials, DSM has stated it expects its major innovation projects to deliver 350mio sales and 100mio EBITDA by 2021 and 1bn in sales, 400mio in EBITDA by 2025. The most remarkable aspect of this guidance in my opinion is that implicitly DSM guides for a 40% EBITDA margin on the new projects, whereas they posted a 17% group EBITDA margin for 2018. Analysts have often asked the company why its target is not for significantly more than 1bn in additional sales, as the addressable markets, etc. would warrant a much higher number and DSM admits it is putting a significant haircut on its projections, since R&D/innovation is always very difficult to forecast.

    10. Margins

    Nutrition

    The Nutrition segment has made a significant step-up in margins over the last years, recording a 19.5% EBITDA margin for 2018:

    Source: Author's own graphical display based on company financials

    The 2021 target of >20% adjusted EBITDA margin implies that margin expansion from current levels will be subdued. However, if they compare DSM’s margins to peers, they are not afraid the business is over-earning:

    Source: Author's own graphical display based on company financials

    So, while it could be that the group announces further margin expansion after the 2021 period, they would not bank on this, yet are not afraid of artificially inflated margins either. There is probably some slight upside to margins, but the bulk of the expansion has probably materialized.

    Materials

    While Materials has also delivered a nice margin expansion, it did not develop at the same clip as the Nutrition segment. The 2021 target of 18-20% margins suggests that, here also, further upside to margins is existent but limited.

    Source: Author's own graphical display based on company financials

    Compared to peers, again it seems the risk that DSM is currently over-earning is limited. They always strive to compare to the relevant segment at peers.

    Source: Author's own graphical display based on company financials

    11. Cash flow

    Since everybody always uses a different definition of free cash flow, they prefer to provide the break-out below. Please note that cash from operations actually amounted to 1,391mio EUR in 2018, but this was favourably impacted by exceptionally high vitamin prices (BASF plant outage), so they take the lower adjusted number to reflect the underlying cash generation. First, they adopt an exceptionally strict definition of FCF they believe no equity investor will ever use, deducting all kinds of capex, dividends and interests paid. Second, they merely subtract maintenance capex from operating cash.

    2014

    2015

    2016

    2017

    2018

    Cash from operations

    808

    696

    1,018

    996

    1,126

    Maintenance capex PP&E

    -250

    -206

    -186

    -202

    -291

    Growth capex PP&E

    -306

    -252

    -227

    -247

    -355

    Intangibles capex

    -97

    -85

    -63

    -98

    -27

    Dividends paid

    -175

    -174

    -190

    -200

    -225

    Interest paid

    -302

    -303

    -151

    -135

    -58

    Free cash flow

    -322

    -324

    201

    114

    228

    Cash from operations

    808

    696

    1,018

    996

    1,126

    Maintenance capex PP&E

    -250

    -206

    -186

    -202

    -291

    Free cash flow

    558

    490

    832

    794

    835

    Source: Company financials - Author own calculations

    Depending on the FCF definition one uses, DSM then trades on 1.5% or 5.6% FCF yield. The discussion of which FCF definition is “correct” is irrelevant, the appeal of DSM should be that they incur growth capital expenditures that are expected to generate a high return.

    Going forward, they know that FCF growth is the #1 target set forward for the current planning period. FCF growth will be driven by:

  • The net cash position, eliminating interest payments; however, this has already largely materialized in 2018.
  • Profit growth from top-line and margin expansion.
  • A significant driver will be better management of working capital. DSM correctly notes this is an area where they can do better, as cash conversion has slipped over the past years. It sees significant room to improve its working capital management, especially in the Nutrition segment.
  • Source: Author's own graphical display based on company financials

    Source: DSM Company Presentations

    12. Return on invested capital

    As they just stated, the attraction to DSM is that it generates cash, which it redeploys into R&D and growth capex that should generate a high rate of return. In terms of ROCE, the company has made remarkable progress over the last couple of years and a 16%+ ROCE target for 2021 implies the company expects this journey to be far from over. DSM expects ROCE to increase by c. 100bps in each of the next three years:

    Source: Author's own graphical display based on company financials and guidance

    13. Valuation

    Multiples

    Below, they plot the historical multiples for DSM from June 2015 up until 03/09/2019, where they think a couple of remarks are in order:

  • Historical multiples for businesses where the activity mix has changed significantly over time is always very tricky. It is clear that the DSM of 2018 is a completely different company vs the DSM of 2005.
  • Probably the most interesting thing about these charts is the recent volatility in the multiple, with P/E dropping to a low of 12x and EV/EBITDA dropping to 8x. They view the volatility in the multiple as completely unwarranted given the defensive profile of the company, especially in light of its clean balance sheet.
  • We would argue that the current absolute level of multiples (20x P/E, 11x EV/EBITDA) is pretty fair given the activities and prospects. Multiples are certainly not demanding, but definitely not at bargain levels they would like either.
  • Source: Author's own graphical display based on Bloomberg financials

    Source: Author's own graphical display based on Bloomberg financials

    Relative valuation, SOTP

    While I’m not a huge fan of relative valuations or SOTP, I think it is useful to run the numbers on DSM, as one of the main points of the investment case is that the company is misunderstood: it is still seen as a chemicals company, while it has developed into a Nutrition play. The following numbers prove this point:

    Source: Bloomberg

    We have taken forward EV/EBITDA 2019, with the choice for this metric as DSM is cash neutral, so using P/E would benefit leveraged companies over the clean balance sheet at DSM (note how easy it would be for DSM to lower its P/E through an acquisition where it levers the balance sheet and buys some EPS). The choice of companies is simply the peer list DSM uses itself in its TSR assessment to calculate long-term executive bonuses.

    If they would calculate a super simplistic sum-of-the-parts, arriving at a mixed multiple for DSM using 70% Nutrition multiple and 30% Materials multiple, they arrive at a multiple of 16x, which would translate to a target price of 150 EUR or +50% upside on a stock that has just seen a +42% run. I’m not a big fan of this methodology, as it could simply point to the fact that Nutrition players are overvalued by the market today, but I nevertheless think it is interesting to see that the market currently rather sees DSM as a Materials company than a Nutrition company, which is obviously incorrect.

    All companies to the left of DSM are Materials players, all companies to the right are Nutrition:

    Source: Author's own graphical display based on Bloomberg financials

    We not only see that the market still sees DSM as a Materials play by looking at the multiple, but also by the volatility or the beta of the share price. They simply take a look at the maximum drawdown of each peer in the above list over Q418 when fear gripped the market about multiple macro concerns.

    We note that the Materials group had an average drawdown of -30%, the Nutrition group had an average drawdown of -11% and DSM had a drawdown of -24%.

    Source: Author's own graphical display based on Bloomberg financials

    What are the consensus expectations?

    Below they provide Bloomberg consensus for the next two years, in order to check whether the market is not getting ahead of itself so as to limit the risk of future earnings downgrades. Please note the 2018 actuals are on an underlying basis, i.e. excluding the temporary vitamin effect for revenue and EBITDA, but including the effect for EPS, as DSM has not reported EPS on an underlying basis, which was too difficult of an exercise.

    2018 act

    2019 est

    2020 est

    Revenue

    8,852

    9,285

    9,746

    % growth yoy

    4.9%

    5.0%

    EBITDA

    1,532

    1,642

    1,754

    % growth yoy

    7.2%

    6.8%

    EPS

    5.84

    5.05

    5.74

    % growth yoy

    -13.5%

    13.7%

    Source: Author's own graphical display based on company financials and Bloomberg projections

    Revenue growth at 5% and EBITDA growth at 7% are very much in line with the guidance the company has provided, so they see no big risk here. DSM should be able to generate these growth numbers in the absence of a full-blown recession. The EPS number is a lot more difficult, as they don’t have a proper 2018 base to put a growth number on. It is obvious that EPS for 2019 will decline vs the artificially high 2018 number, but it is hard to estimate by how much. They have tried in several ways to sense-check the feasibility of the consensus EPS estimate and think it is certainly not exaggerated, but remind that EPS is the biggest factor of uncertainty for 2019. The matter is further clouded by the unexpected buy-back announcement which in turn could provide a positive surprise.

    14. Risks

    What could go wrong?

    In their opinion, the biggest risks to the investment case are the following:

  • The biggest risk is that they overestimate the quality of the business. DSM is indeed a Nutrition play but maybe not of the same quality as Givaudan, Kerry, etc. In that case, the market’s assessment in terms of multiple might be simply correct.
  • The Materials segment is cyclical and will make guidance unattainable in the event of a recession. There are 3 cyclical end-markets, each representing c. 6-7% of group sales: automotive, mobile devices and building/construction.
  • DSM’s success could attract more competition, pushing down vitamin prices which can be volatile.
  • There is always a risk of a scandal or a recall such as Greenyard’s listeria issues. Especially for a company like DSM, which is constantly touting sustainability, this can hit the share price hard.
  • Expensive acquisitions.
  • The story is certainly in a way tied to Feike Sijbesma so if he decides to retire, this probably will not be taken well by the market.
  • 15. Conclusions

    We think that DSM is a high quality company that is exposed to important global growth themes. The company has several products in the market that play into the global demand for more sustainable consumption and production. The pipeline is furthermore filled with promising high margin projects that are bound to keep DSM's growth story alive.

    We believe that the opportunity lies in the fact that DSM has not always had this clear-cut positioning and that it used to be a more diverse chemical player with exposure to cyclical end-markets in the past. While DSM has transformed itself by divesting several divisions, the market has not reacted to this by rerating DSM's trading multiple. While DSM generates 70% of its EBITDA in the nutrition market and currently only has 20% exposure to cyclical end markets, the company is still valued as a materials player rather than a nutrition group.

    While the 42% YTD surge in the company's share price has significantly reduced the upside, they still believe that the company is reasonably priced. The company trades at 11x 2019E EBITDA and 20x 2019E EPS, which certainly isn't cheap, they note that other nutritional groups trade at far more expensive multiples.

    When they take the exposure to key growth themes, the excellent corporate governance and management, the clean balance sheet and the solid capital allocation into account, they believe that there is still attractive upside for long-term investors. They advise interested investors to place DSM on their watchlist and to do further research on this name, so they can opportunistically start or increase a position in this long-term compounder when the share price shows weakness.

    Disclosure: I am/we are long AMS:DSM, EBR:SOLB. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.


    The Intangible Valuation Renaissance: Five Methods | killexams.com real questions and Pass4sure dumps

    Intangible assets are increasingly critical to corporate value, yet current accounting standards make it difficult to capture them in financial statements. This information gap can affect valuations for the worse.

    Today, valuations based on simple accounting metrics from corporate financial statements no longer suffice. Indeed, Feng Gu and Baruch Lev have highlighted their shortcomings, going so far as to herald “the end of accounting” while stressing the need for valuation methods derived from key performance indicators (KPIs) outside the framework of generally accepted accounting principles (GAAP).

    So what are the common methodologies for intangibles valuation that build on historical and prospective financial information within the framework of current accounting standards? And how can they be integrated with non-GAAP KPIs to assess a firm’s competitive position?

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    What Are Intangible Assets?

    The “International Glossary of Business Valuation Terms” (IGBVT) defines intangible assets as “non-physical assets such as franchises, trademarks, patents, copyrights, goodwill, equities, mineral rights, securities and contracts (as distinguished from physical assets) that grant rights and privileges, and have value for the owner.” For financial reporting under US GAAP, they are defined as “assets (not including financial assets) that lack physical substance.” GAAP has a separate definition of goodwill: “the excess of the cost of an acquired entity over the net amounts assigned to assets acquired and liabilities assumed.”

    The US Bureau of Economic Analysis (BEA) started tracking investments in intangible capital by private enterprises as part of its GDP database in 2013. Its intangible capital metric includes accumulated spending on software, R&D, and intellectual property related to arts and entertainment — a “cost” perspective. Since 2012, the annual investment in intellectual property products by private enterprises in the United States has grown at a 6.2% annualized rate to $938 billion as of October 2018 (annualized).

    Investment in Intellectual Property Products 

    Investment in Intellectual Property Products ($BN)

    Source: US Bureau of Economic Analysis, Table 1.1.5; last revised October 2018

    Investment in intellectual property now represents 33.41% of total US gross domestic investment in 2018, up from 30.95% at year-end 2012. Over the same period, investments in Structures as a percentage of total US gross private domestic investment have remained flat, while investments in Equipment have fallen.

    US Gross Domestic Investment (Percent of Total)

    US Gross Domestic Investment

    Source: US Bureau of Economic Analysis, Table 1.1.5 last revised October 2018

    Nicolas Crouzet and Janice Eberly recently noted that the accumulation of intangible capital has spurred market concentration in favor of those firms that can best leverage the scaling benefits of advanced technological infrastructure. They also observe that intangible capital is hard to use as collateral for financing. The increase in intangible capital investment likely reduced the proportion of overall investment financed through bank debt and may have opened the door for such non-banking players as private debt funds in corporate lending.

    Financial Reporting and Valuation Challenges

    As investments in intangibles grow, assessing the value of those assets as drivers of enterprise value becomes ever more essential. Both IFRS and GAAP are “mixed models” with different ways to account for intangible assets acquired as part of a business combination compared to those that are internally developed. The former must be measured at fair value at the time of the acquisition, included in the acquirer’s balance sheet, and then subject to amortization or periodic impairment testing. Under GAAP, internally developed intangible assets tend not to appear on the balance sheet and related costs are expensed as incurred. Under IFRS, such assets are recognized only if certain criteria are met.

    When it comes to the income statement, an enterprise’s earnings under GAAP generally include an amortization charge for the intangible assets that are in the balance sheet and have a “determinable” useful life, and a charge in R&D or sales and administration expenses for internally developed assets that are not capitalized. It may also include an impairment amount recognized on goodwill or on the intangible assets that have been capitalized and have undetermined useful life. Analysts who compare companies across borders need to understand the specific intangibles-related differences between GAAP and IFRS.

    The different accounting treatment of acquired versus internally developed intangible assets could create comparability issues for companies with different growth strategies. A firm that has developed its portfolio of intangible assets through acquisition will probably have a higher share of intangibles recognized in its balance sheet (and more goodwill) than one that developed intangible assets internally. This will affect balance sheet ratios and reported earnings.

    Microsoft vs. Apple

    Intangibles represent 16.9% of Microsoft’s total assets but only 2.7% of Apple’s, according to an analysis of their 10-Ks. This reflects, in part, Microsoft’s greater appetite for acquisitions. Analysts need to grasp the varying treatments of internally developed versus acquired intangibles to ensure that appropriate valuation adjustments are made for comparability. They should also integrate differences in intangibles accounting in the algorithms they develop for automated trading and factor investing.

    Intangibles as a Percent of Total Assets

    Intangibles as a Percent of Total Assets

    Valuation Models for Intangible Assets

    Five of the more common valuation methods for intangible assets that are within the framework of the cost, market, and income approach are described below. These approaches can be integrated into an analysis of non-GAAP KPIs and other conceptual frameworks.

    1. Relief from Royalty Method (RRM)

    The RRM calculates value based on the hypothetical royalty payments that would be saved by owning the asset rather than licensing it. The rationale behind the RRM is fairly intuitive: Owning an intangible asset means the underlying entity doesn’t have to pay for the privilege of deploying that asset. The RRM is often used to value domain names, trademarks, licensed computer software, and in-progress R&D that can be tied to a specific revenue stream and where data on royalty and license fees from other market transactions are available. Generally, the RRM involves the following steps:

  • Projecting financial information for the overall enterprise, including revenue, growth rates, and tax rates and estimates. The underlying data is generally obtained from the entity’s management.
  • Estimating a suitable royalty rate for the intangible asset based on an analysis of royalty rates from publicly available information for similar domain names and of the industry in question. Royalty rate information is available on such databases as KtMINE and Royalty Source, among others. SEC filings for similar publicly traded companies can also be useful.
  • Estimating the useful life of the asset.
  • Applying the royalty rate to the estimated revenue stream.
  • Estimating a discount rate for the after-tax royalty savings and discount to present value.
  • The RRM contains assumptions from both the market (royalty rate) and income approach (estimate of revenue, growth rates, tax rates, discount rate). To see how it works in practice, they conducted a hypothetical domain name valuation using the RRM:

    Valuation of Domain Name: Royalty Relief Method

    Valuation of Domain Name: Royalty Relief Method

    Keep in mind the domain name’s fair value includes an amortization benefit multiplier that incorporates the value of the tax benefit resulting from the amortization of the asset. The amortization benefit is calculated as the present value of the tax savings that results from a 15-year amortization of the asset. In calculating the amortization adjustments for US companies, analysts should be mindful of the corporate tax rates changes resulting from recent US tax reform and estimate their impact on intangible amortization over the period considered in the valuation.

    2. Multiperiod Excess Earnings Method (MPEEM) 

    The MPEEM is a variation of discounted cash-flow analysis. Rather than focusing on the whole entity, the MPEEM isolates the cash flows that can be associated with a single intangible asset and measures fair value by discounting them to present value. The MPEEM tends to be applied when one asset is the primary driver of a firm’s value and the related cash flows can be isolated from the firm’s overall cash flows. Early stage enterprises and technology firms are prime candidates for this approach. Computer software and customer relationships are among the sorts of assets that frequently generate such cash flows and could be assessed with fair value measurement using the MPEEM. The MPEEM usually involves the following steps:

  • Projecting financial information (PFI) — cash flows, revenue, expenses, etc. — for the entity.
  • Subtracting the cash flows attributable to all other assets through a contributory asset charge (CAC). The CAC is a form of economic rent for the use of all other assets in generating total cash flows that is composed of the required rate of return on all other assets and an amount necessary to replace the fair value of certain contributory intangible assets.
  • Calculating the cash flows attributable to the intangible asset subject to valuation and discount them to present value.
  • Assessing the CAC can be a challenge with MPEEM. The required returns on CAC must be consistent with an assessment of the risk of individual asset classes and should reconcile overall to the enterprise WACC. Also, the projection period for the PFI used in the model should reflect the estimated useful life of the subject asset. That may involve significant judgment.

    3. With and Without Method (WWM)

    The WWM estimates an intangible asset’s value by calculating the difference between two discounted cash-flow models: one that represents the status quo for the business enterprise with the asset in place, and another without it. The WWM is often used to value noncompete agreements.

    4. Real Option Pricing

    As Aswath Damoradan noted, “the most difficult intangible assets to value are those that have the potential to create cash flows in the future but do not right now.” These assets have option characteristics that make them suitable to be valued using option pricing models and include undeveloped patent and undeveloped natural resource options, among others.

    For a real option to have significant economic value, competition must be restricted in the event of the contingency. This is frequently the case for patents, which give the owner the right but not the obligation to exclude others from making, using, selling, offering for sale, or importing the patented invention. An undeveloped patent may have zero “intrinsic” value if the net present value of the underlying project is deemed to be zero or negative at the measurement date. Still, the patent may have considerable “time” value based on the possibility that the net present value of the project will turn out to be positive at some point over the life of the patent.

    An option pricing model may be most suitable to capture the “time value” component of a patent that is not currently generating cash flows for the firm, but may have the potential to do so in the future. For instance, they can estimate the value of a patent on a drug that is undergoing the FDA approval process using a Black-Scholes option pricing formula as follows:

    Inputs under Black-Scholes Option Pricing Model

  • PV of Cash Flows from Introducing the Drug Now (Current Price) = $ 520 million
  • PV of Cost of Developing Drug for Commercial Use (Exercise Price) = $ 650 million
  • Patent Life (Time to Expiration) = 15 years
  • Riskless Rate = 3.2% (15-year Treasury rate)
  • Variance in Expected Present Values = 0.25.
  • Expected Cost of Delay (Dividend Yield) = 1/t = 5.89%
  • Patent Value (Call Value Resulting from the Black-Scholes Formula) = $ 26,347,850

    As with stock options, a key challenge in the valuation of real options is assessing the underlying volatility. Moreover, real options require estimates for the exercise price (the cost of developing the patent in their example), and the current price of the underlying (the present value of the cash flows from introducing the drug now), which are generally observable for options on listed equities. Overall, while there is judgment involved in the application of option pricing models to intangible assets, there is also a significant amount of guidance and industry practice that has developed over time and that the analyst can refer to for implementation.

    5. Replacement Cost Method Less Obsolescence

    This method requires an assessment of the replacement cost for the intangible asset new, that is “the cost to construct, at current prices as of the date of the analysis, an intangible asset with equivalent utility to the subject intangible, using modern materials, production standards, design, layout and quality workmanship.” The replacement cost is then adjusted for an obsolescence factor relative to the intangible asset. A simple replacement cost model for acquired software that adjusts for obsolescence and takes into account the tax impact of the asset’s amortization is shown below. It weighs the tax impact of the asset’s amortization, which is most relevant if the intangible asset is considered within the framework of the valuation of an overall enterprise. A pre-tax asset valuation may be more suitable under certain circumstances, particularly if the asset is valued on a stand-alone basis.

    Valuation of Acquired Software: Replacement Cost Method Less Obsolescence

    Valuation of Acquired Software: Replacement Cost Method Less Obsolescence

    This valuation exercise considers the tax impact of the asset’s amortization, which is most relevant if the intangible asset is considered within the framework of the valuation of an overall enterprise. A pre-tax asset valuation may be more suitable under certain circumstances, particularly if the asset is valued on a stand-alone basis. The estimate of the obsolescence percentage is also a critical factor in this model, and is often developed based on inquiries with technical management personnel.

    The table below provides a summary of the cost, market, and income approach models as they typically apply to the main classes of intangible assets:

    Intangible Valuation Approach Summary

    Intangible Valuation Approach Summary

    Conclusion

    In today’s economy, the value provided by intangible assets must be captured in enterprise valuation. Analysts have to expand the range of data sources and techniques they use in valuation and develop methodologies that are suitable to the intangible asset being valued for more reliable valuation results. Such methodologies provide new perspectives on the cost, market, and income approaches and can be integrated with an analysis of non-GAAP KPIs and other conceptual frameworks.

    Identifying and valuing intangible assets is critical not only in an active management framework, but also in factor investing and quantitative modeling in passive strategies that rely on financial statements data and that may need adjustments for comparability.

    If you liked this post, don’t forget to subscribe to the Enterprising Investor.

    All posts are the opinion of the author. As such, they should not be construed as investment advice, nor do the opinions expressed necessarily reflect the views of CFA Institute or the author’s employer.

    Image credit: ©Getty Images/ estelle75

    Antonella Puca, CFA, CIPM, CPA

    Antonella Puca, CFA, CIPM, CPA/ABV, CEIV, is a managing director at BlueVal Group, LLC, a valuation services firm with a focus on the valuation of privately held companies in the United States. Prior to BlueVal, she was part of the alternative investment group at KPMG/Rothstein Kass, where she helped launch RK’s Bay Area practice, the global hedge fund practice of EY in San Francisco and New York, and the financial services team at RSM US LLP in New York. Puca served as a director in the ethics and professional standards group at CFA Institute and as a volunteer focused on certifications and curriculum programs. She has served as an executive committee member of the board of the CFA Society of New York and as a member of AIMA's research committee. She will be joining the Business Valuation Committee of the AICPA effective May 2019 and is currently writing a book on the Valuation of Early Stage Enterprises: A Fair Value Update with expected release in the Spring of 2020 (Wiley). Puca is licensed as a CPA in California and New York. She is accredited in business valuation (AICPA), holds the valuation analyst and the entity and intangibles valuation certifications. Puca is a member of the Italian Professional Association of Journalists. She holds a degree in economics with honors from the University “Federico II” of Naples, Italy, and a master of law studies in taxation from NYU Law School. She has been an adjunct faculty member at New York University, a research fellow at the Hebrew University of Jerusalem, and a member of the 420 Italian National Sailing Team.

    Mark L. Zyla, CFA, CPA/ABV, ASA

    Mark L. Zyla, CFA, CPA/ABV, ASA, is a managing director of Acuitas, Inc., an Atlanta-based valuation and litigation consultancy firm. Zyla is the practice leader of the firm’s valuation practice. He serves as chair of the Standards Review Board of the International Valuation Standards Council (“IVSC”) and as a member of the AICPA’s Forensic and Valuation Services Executive Committee. Zyla is a member of the Business Valuations Committee of the ASA where he also serves as chair of the Business Valuation Standards and Technical Issues subcommittees. He is on the advisory council of the master of science in finance program at the University of Texas at Austin. In 2013, he was inducted into the AICPA Business Valuation Hall of Fame. Zyla is a frequent presenter and author on valuation issues. He is on the faculty of the Federal Judicial Center and the National Judicial College teaching business valuation concepts to judges. He is author of Fair Value Measurement: Practical Guidance and Implementation 2nd ed. published by John Wiley & Sons, Inc. (2013), and of the course, “Fair Value Accounting: A Critical New Skill for All CPA,s” published by the AICPA. He is co-author of several portfolios related to Fair Value Measurement published by Bloomberg BNA. Zyla received a BBA degree in finance from the University of Texas at Austin and an MBA degree with a concentration in finance from Georgia State University. he completed the mergers and acquisitions program at the Aresty Institute of The Wharton School of the University of Pennsylvania and the valuation program at the Graduate School of Business at Harvard University. He is a chartered financial analyst and a certified public accountant, accredited in business valuation (“CPA/ABV”), certified in financial forensics (“CFF”) by the AICPA, and an accredited senior appraiser with the American Society of Appraisers certified in business valuation (“ASA”).


    Blue Ridge Bankshares, Inc. Announces Addition of New Directors | killexams.com real questions and Pass4sure dumps

    LURAY, Va., March 19, 2019 /PRNewswire/ -- Blue Ridge Bankshares, Inc. (otc pink:BRBS) is pleased to announce the appointment of Elise Peters Carey, Donald R. Vaughan, and Carolyn J. Woodruff to its Board of Directors with Peters Cary serving as Vice-Chair.  Peters Cary, Vaughan, and Woodruff also serve on the Board of Directors for Carolina State Bank, a division of Blue Ridge Bank. 

    "We are excited to have Elise, Don, and Carolyn join the Board of Directors as they focus on serving and growing in the Piedmont Triad region," said Brian K. Plum, President and Chief Executive Officer.  "Each of these three brings a very strong track record of success and a deep knowledge of the needs of the Triad. They also share a strong commitment to the shared success and vision of Blue Ridge Bankshares, Inc. to be the premier financial institution in each of its communities."

    Peters Carey added "This venture is important to me because they need a community bank that can focus on the needs of their citizens and local businesses. They are focused on building relationships and serving their local community."

    Elise Peters Carey is the current President of Bethany Medical Center, the largest independent provider of medical services in the Triad of North Carolina.  She is also President of Peters Holdings and Peters Development. She is the Director of the Lenny Peters Foundation, a non-profit organization that supports the Triad and communities around the world. Previously she held various strategic planning and finance positions at American Express and Capital One Bank. She began her career consulting financial institutions on market data, treasury services, and capital management.  Elise holds a Master of Business Administration and a Bachelor of Science in Economics from the Wharton School at the University of Pennsylvania.

    Carolyn Woodruff, J.D., CPA, CVA is President of the preeminent Woodruff Family Law Group in Greensboro. She graduated from the Duke University School of Law with High Honors where she served as Research and Managing Editor of the Duke Law Review. As a North Carolina Certified Public Accountant, Carolyn has been a trailblazer in the area of business valuation and is a frequent writer and lecturer on business valuation and federal taxation. Carolyn is a Certified Valuation Analyst having met the requirements of this designation by the National Association of Certified Valuation Analysts. She is an instrument-rated multi-engine airplane pilot.

    Don Vaughan, J.D. is a Greensboro attorney with more than 30 years of experience. He served in the North Carolina Senate and as Mayor Pro Tem and City Councilman for the City of Greensboro.  Vaughan serves on the North Carolina State Banking Commission and previously served on the North Carolina Courts Commission.  Don holds a Bachelor of Arts from the University of North Carolina at Chapel Hill, a Master of Public Administration degree from American University, and a Juris Doctor from Wake Forest University, where he was a member of the Wake Forest Law Review. He is an adjunct professor at Wake Forest Law School and Elon Law School.

    Also, on March 18, 2019 the Company completed the sale of approximately 232,000 shares of common stock pursuant to the exercise by an existing shareholder of certain non-dilution rights. Combined with the gross proceeds from the February 2019 private placement, the Company received aggregate gross proceeds of $23.4 million in exchange for the sale of 1,536,731 shares to accredited investors.

    About Blue Ridge Bankshares, Inc.Blue Ridge Bankshares, Inc. is the parent company for Blue Ridge Bank, NA, its wholly-owned bank which includes the Carolina State Bank division.  Blue Ridge Bank was chartered in 1893 and serves the Virginia communities of Charlottesville, Drakes Branch, Harrisonburg, Luray, Martinsville, McGaheysville, Shenandoah, Stuart, and, through its Carolina State Bank division, Greensboro. The Bank's mortgage division includes offices in Virginia, North Carolina, Maryland, and Florida, and includes the Monarch Mortgage and Standard Mortgage names.  The bank provides payroll services through MoneyWise Payroll Solutions, Inc.  The bank provides qualified intermediary services for 1031 deferred-tax exchanges through its subsidiary Exchangers, Ltd. Visit www.mybrb.com for more information.

    View original content to download multimedia:http://www.prnewswire.com/news-releases/blue-ridge-bankshares-inc-announces-addition-of-new-directors-300815185.html

    SOURCE Blue Ridge Bankshares, Inc.

    Copyright (C) 2019 PR Newswire. All rights reserved



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    Amazon [2 Certification Exam(s) ]
    American-College [2 Certification Exam(s) ]
    Android [4 Certification Exam(s) ]
    APA [1 Certification Exam(s) ]
    APC [2 Certification Exam(s) ]
    APICS [2 Certification Exam(s) ]
    Apple [69 Certification Exam(s) ]
    AppSense [1 Certification Exam(s) ]
    APTUSC [1 Certification Exam(s) ]
    Arizona-Education [1 Certification Exam(s) ]
    ARM [1 Certification Exam(s) ]
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    Autodesk [2 Certification Exam(s) ]
    Avaya [101 Certification Exam(s) ]
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    Banking [1 Certification Exam(s) ]
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    BlackBerry [17 Certification Exam(s) ]
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    FCTC [2 Certification Exam(s) ]
    Filemaker [9 Certification Exam(s) ]
    Financial [36 Certification Exam(s) ]
    Food [4 Certification Exam(s) ]
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    Foundry [6 Certification Exam(s) ]
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    IBM [1533 Certification Exam(s) ]
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    Microsoft [375 Certification Exam(s) ]
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    Military [1 Certification Exam(s) ]
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    NCLEX [3 Certification Exam(s) ]
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    NI [1 Certification Exam(s) ]
    NIELIT [1 Certification Exam(s) ]
    Nokia [6 Certification Exam(s) ]
    Nortel [130 Certification Exam(s) ]
    Novell [37 Certification Exam(s) ]
    OMG [10 Certification Exam(s) ]
    Oracle [282 Certification Exam(s) ]
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    Riverbed [8 Certification Exam(s) ]
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    SCP [6 Certification Exam(s) ]
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    SUN [63 Certification Exam(s) ]
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    Sybase [17 Certification Exam(s) ]
    Symantec [135 Certification Exam(s) ]
    Teacher-Certification [4 Certification Exam(s) ]
    The-Open-Group [8 Certification Exam(s) ]
    TIA [3 Certification Exam(s) ]
    Tibco [18 Certification Exam(s) ]
    Trainers [3 Certification Exam(s) ]
    Trend [1 Certification Exam(s) ]
    TruSecure [1 Certification Exam(s) ]
    USMLE [1 Certification Exam(s) ]
    VCE [6 Certification Exam(s) ]
    Veeam [2 Certification Exam(s) ]
    Veritas [33 Certification Exam(s) ]
    Vmware [58 Certification Exam(s) ]
    Wonderlic [2 Certification Exam(s) ]
    Worldatwork [2 Certification Exam(s) ]
    XML-Master [3 Certification Exam(s) ]
    Zend [6 Certification Exam(s) ]





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