3QFY2017 Result Update | IT

February 1, 2017

Wipro

BUY

CMP

`457

Performance Highlights

Target Price

`590

(` cr)

3QFY17 2QFY17

% chg (qoq)

3QFY16

% chg (yoy)

Investment Period

12 Months

Net revenue

13,688

13,766

(0.6)

12,861

6.4

EBITDA

2,731

2,654

2.9

2,649

3.1

Stock Info

EBITDA margin (%)

20.0

19.3

68bps

20.6

(64)bps

Sector

PAT

2,109

2,067

2.0

2,237

(5.7)

Market Cap (` cr)

111,116

Source: Company, Angel Research

Net Debt (` cr)

(21,460)

Wipro posted below expectations results for 3QFY2017. The Company’s IT

Beta

0.6

services recorded revenues of US$1,903mn (US$1,919mn expected) v/s

52 Week High / Low

607/410

US$1,916mn in 2QFY2017, a qoq de-growth of 0.7%. Revenue in Constant

Avg. Daily Volume

187,478

Currency (CC) came at 0.6% qoq. In Rupee terms, revenues came in at

Face Value (`)

`13,688cr (`14,096cr expected) v/s `13,766cr in 2QFY2017, dip of 0.6% qoq.

BSE Sensex

27,656

On EBIT front, the company posted EBIT of 16.9% (15.9% expected) v/s 15.8% in

Nifty

8,561

2QFY2017, expansion of 110bps qoq. Consequently, PAT came in at `2,109cr

Reuters Code

WIPR.BO

(`2,124cr expected) v/s `2,067cr in 2QFY2017, a growth of 2% qoq. It terms, of

Bloomberg Code

WPRO@IN

the guidance, the company has guided for 4QFY2017 sales of US$1,916-1,955.

We maintain our Buy rating.

Shareholding Pattern (%)

Quarterly highlights: IT services recorded revenues of US$1,903mn

Promoters

73.3

(US$1,919mn expected) v/s US$1,916mn in 2QFY2017, a qoq de-growth of

MF / Banks / Indian Fls

8.1

0.7%. Revenue in Constant Currency (CC) came at 0.6% qoq. It terms of

geography, USA contributed around 55.5% of sales in 3QFY2017 as compared

FII / NRIs / OCBs

12.9

to 54.8% of sales in 3QFY2016. Growth recorded in CC terms, were - US 1.0%

Indian Public / Others

5.7

qoq, APAC and other emerging markets 1.3% qoq growth, while Europe 1.7%

qoq. On EBIT front, the company posted an EBIT of 16.9% (15.9% expected) v/s

Abs.(%)

3m 1yr

3yr

15.8% in 2QFY2017, expansion of 110bps qoq. Consequently, PAT came in at

Sensex

(1.0)

11.2

34.8

`2,109cr (`2,124cr expected) v/s `2,067cr in 2QFY2017, a growth of 2% qoq.

Wipro

(1.7)

(18.5)

(20.5)

Outlook and valuation: The management has set a target of US$15bn of revenue

and an EBIT margin of 23% by 2020. The company achieving the revenue target

3-year price chart

would imply a CAGR of 20% in sales over the next four years. However, the near

700.0

term guidance suggests a moderate organic growth. We maintain a Buy on the stock

with a Target Price of `590 given the valuations.

600.0

500.0

Key financials (Consolidated, IFRS)

Y/E March (` cr)

FY2015

FY2016

FY2017E

FY2018E

400.0

Net sales

46,955

51,631

55,440

60,430

300.0

% chg

8.1

10.0

7.4

17.0

Net profit

8,653

8,887

9,148

9,853

200.0

% chg

11.0

2.7

2.9

7.7

EBITDA margin (%)

22.3

21.7

18.1

EPS (`)

35.1

35.9

37.0

39.9

Source: Company, Angel Research

P/E (x)

13.8

13.5

13.1

12.1

P/BV (x)

2.9

2.6

2.4

2.2

RoE (%)

21.1

19.0

17.0

RoCE (%)

15.3

13.4

13.9

Sarabjit kour Nangra

EV/Sales (x)

2.1

1.8

1.7

1.4

+91 22-39357800 Ext: 6806

EV/EBITDA (x)

9.3

8.5

8.2

6.9

[email protected]

Source: Company, Angel Research; Note: CMP as of January 31, 2017

Please refer to important disclosures at the end of this report

Wipro | 3QFY2017 Result Update

Exhibit 1: 3QFY2017 performance (Consolidated, IFRS)

Y/E March (` cr)

3QFY17

2QFY17

% chg (qoq)

3QFY16

% chg (yoy) 9MFY2017

9MFY2016

% chg (yoy)

Net revenue

13,688

13,766

(0.6)

12,861

6.4

41,053

37,899

8.3

Cost of revenue

9,173

9,296

(1.3)

8,675

5.7

28,108

25,022

12.3

Gross profit

4,515

4,470

1.0

4,186

7.9

12,945

12,877

0.5

SGA expense

1,784

1,816

(1.8)

1,537

16.0

5,374

4,582

17.3

EBITDA

2,731

2,654

2.9

2,649

3.1

7,571

8,295

(8.7)

Dep. and amortisation

485

352

37.7

969

1,066

(9.1)

EBIT

2,247

2,169

3.6

2,297

(2.2)

6,602

7,229

(8.7)

Other income

512

496

3.3

572

(10.5)

1,493

1,337

11.6

PBT

2,759

2,665

3.5

2,869

(3.8)

8,095

8,555

(5.4)

Income tax

644

591

9.0

625

3.0

1,847

1,868

(1.1)

PAT

2,115

2,074

2.0

2,246

(5.8)

6,247

6,687

(6.6)

Minority interest

Adj. PAT

2,109

2,067

2.0

2,237

(5.7)

6,228

6,670

(6.6)

Diluted EPS

8.7

8.5

2.2

9.1

(4.3)

25.6

27.2

(5.7)

Gross margin (%)

33.0

32.5

52bps

32.5

44bps

31.5

34.0

(244)bps

EBITDA margin (%)

20.0

19.3

68bps

20.6

(64)bps

18.4

21.9

(344)bps

EBIT margin (%)

16.4

15.8

66bps

17.9

(145)bps

16.1

19.1

(299)bps

PAT margin(%)

15.4

15.0

41bps

17.4

(192)bps

15.2

17.6

(238)bps

Source: Company, Angel Research

Exhibit 2: 3QFY2017 - Actual vs Angel estimates

(` cr)

Actual

Estimate

Variation (%)

Net revenue

13,688

14,096

(2.9)

EBIT margin (%)

16.4

15.9

62bps

PAT

2,109

2,124

(0.7)

Source: Company, Angel Research

Revenues lower than expected in Dollar terms

Wipro posted results below expectations. It posted

IT services

revenues of

US$1,903mn (US$1,919mn expected) v/s US$1,916mn in 2QFY2017, a qoq de-

growth of 0.7%. Revenue in Constant Currency (CC) came at 0.6% qoq. In Rupee

terms, revenues came in at `13,688cr (`14,096cr expected) v/s `13,766cr in

2QFY2017, dip of 0.6% qoq.

It terms, of geography it was USA, which contributed around 55.5% of sales in

3QFY2017 as compared to 54.8% of sales in 3QFY2016. On CC terms, US

posted a growth of 1.0% qoq, APAC and other emerging markets posted 1.3%

qoq growth while Europe posted

1.7% qoq growth. On services side,

Communications posted a 0.8% CC qoq growth, Consumer Business Unit posted a

0.1% CC qoq growth, Energy, Natural Resources & Utilities posted a 2.1% CC qoq

growth, Finance Solutions, posted a 0.8% qoq growth, Healthcare, Life Sciences &

Services posted a 0.1% CC qoq growth, while Manufacturing and Technology

posted a 0.1% CC qoq growth.

The company’s management is optimistic on the Energy segment going into 2017,

while, in Healthcare it’s cautious given the change of guard in US.

February 1, 2017

Wipro | 3QFY2017 Result Update

Exhibit 3: Trend in IT Services revenue

2,000

2.4

2.6

1,950

1,900

1,850

1,800

1,750

1,700

0.3

1,650

1,600

(0.8)

(0.7)

1,550

(1)

3QFY16

4QFY16

1QFY17

2QFY17

3QFY17

IT services

qoq growth (%)

Source: Company, Angel Research

Exhibit 4: Revenue growth (Industry wise - CC basis)

% to

% growth

revenue

(QoQ)

(yoy)

Global media and telecom

7.4

0.8

4.2

Financial solutions

25.5

0.8

4.3

Manufacturing and hi-tech

22.3

0.1

0.0

Healthcare, life sciences and services

16.0

0.1

39.0

Retail and transportation

15.8

0.1

0.5

Energy and utilities

13.0

2.1

(0.3)

Source: Company, Angel Research

Services wise, Wipro’s anchor service lines ADM (contributed 44.4% to revenue)

and Technology Infrastructure Services (contributed 28.1% to revenue) registered a

growth of 0.7% and a dip of 1.1% qoq respectively. Analytics and Information

Management, which contributed

7.0% of sales, de-grew by

5.4% qoq,

while, Product Engineering and Mobility contributed 7.2% of sales and grew

by 1.3% qoq.

Exhibit 5: Revenue growth (Service wise)

Service verticals

% to revenue

% growth (qoq)

Technology infrastructure services

28.1

(1.1)

Analytics and information management

7.0

(5.4)

BPO

13.3

(1.6)

Product engineering and mobility

7.2

(1.3)

ADM

44.4

0.7

Source: Company, Angel Research

Geography wise, the developed economies such as America and Europe grew by

1.0% and 1.3% qoq in CC terms respectively. India posted a 4.2% qoq CC de-

growth, during the period. However, APAC and other emerging markets posted a

1.7% qoq growth for the quarter.

February 1, 2017

Wipro | 3QFY2017 Result Update

Exhibit 6: Revenue growth (Geography wise, CC basis)

% to revenue

% growth (QoQ)

% growth (yoy)

America

55.5

1.0

9.0

Europe

23.6

1.7

(1.3)

India and Middle East

10.0

1.3

8.5

APAC and other emerging markets

10.9

(4.2)

(5.2)

Source: Company, Angel Research

The IT Products segment reported a 12.3% yoy de-growth in revenue to `570cr

during the quarter.

Exhibit 7: IT Products - Revenue growth (yoy)

900

36.3

800

700

600

(10)

500

(12.3)

(16.0)

(20)

400

(28.2)

(30)

300

(40)

(52.5)

(50)

200

(60)

650

449

590

770

570

100

(70)

3QFY16

4QFY16

1QFY2017

2QFY17

3QFY17

IT products

yoy growth (%)

Source: Company, Angel Research

Hiring and utilization

Wipro reported a net addition of 4,891 employees in its IT Services employee

base, which now stands at 174,238 employees. Though voluntary attritions

(annualized) in the global IT business increased considerably, it remained stagnant

on a net basis at 16.3%. The utilization rate of the global IT business moved up by

40bps sequentially to 71.6%. Going ahead, an improvement in utilization level will

be an important margin lever.

Exhibit 8: Employee pyramid

Employee pyramid

3QFY16 4QFY16 1QFY17 2QFY17 3QFY17

Utilization - Global IT (%)

66.4

68.1

69.9

71.2

71.6

Attrition (%)

Global IT

16.3

16.1

16.5

16.6

16.3

BPO

9.9

11.1

11.7

12.2

10.7

Net additions

2,268

2,248

951

375

4,891

Source: Company, Angel Research

February 1, 2017

Wipro | 3QFY2017 Result Update

Margins better than expected

On EBIT front, the posted EBIT of

16.9%

(15.9% expected) v/s

15.8% in

2QFY2017, expansion of 110bps qoq, mainly aided by better utilization of the

employees. Losses in the product business continued to hurt the overall EBIT

margins of the company.

Exhibit 9: Segment-wise EBIT margin trend

29.6

20.2

20.1

17.8

18.3

17.9

18.2

16.1

15.8

15.9

3QFY16

4QFY16

1QFY2017

2QFY17

3QFY17

(10)

(4.0)

(3.0)

(6.3)

(20)

(22.1)

(30)

IT services

IT products

Consolidated

Source: Company, Angel Research

Client pyramid

Wipro added 108 new clients during the quarter with its active client base now

standing at 1,259. Amongst these, 1 has been in the US$100mn+ bracket and 2

in the US$50mn+ bracket. The company management is optimistic on the Energy

segment going into 2017, while, in Healthcare it’s cautious given the change of

guard in US.

Exhibit 10: Client metrics

Particulars

3QFY16

4QFY16

1QFY17

2QFY17

3QFY17

US$100mn plus

US$75mn-$100mn

US$50mn-$75mn

US$20mn-$50mn

US$10mn-$20mn

US$5mn-$10mn

US$3mn-$5mn

US$1mn-$3mn

211

219

229

230

227

New client addition

119

108

Active customers

1,105

1,223

1,208

1,180

1,259

Source: Company, Angel Research

February 1, 2017

Wipro | 3QFY2017 Result Update

Investment highlights

Moderate outlook on growth: For 4QFY2017, the company has given a revenue

guidance of US$1,916-1,955mn implying a US$ qoq growth of 1-2% on CC

terms. Hence, after the 4QFY2017 guidance, the expected recovery in the

company looks more likely in FY2018. We expect US$ and INR revenue CAGR to

be at 8.4% and 8.2% respectively over FY2016-18E.

Target sales CAGR of 20% and EBIT Margin of 23%: Company as part of its vision

for 2020 is targeting to reach US$15bn revenues with 23% EBIT margin, implying

revenue CAGR of ~20% over the next four years. If the margins expand by

300bps, then it would imply an even higher CAGR for earnings. The company sees

itself better placed than this time as against last year to latch on to opportunities in

the market though the same aggression and optimism is yet to reflect in its

performance. Going by the guidance, the company’s organic growth outlook is not

even closer to its peers. However, on the acquisition front, the company has been

very aggressive in comparison to its peers.

During the quarter, company announced the acquisition of Appirio, a leading

cloud services company in areas like Sales force and Workday implementation.

Appirio’s CY2015 revenue was US$196mn and purchase consideration for the

acquisition is US$500mn. Its customers include Virgin America, Four Seasons

Hotels & Resorts, Coca Cola, eBay, Home Depot, Honeywell, NYSE Euronext,

Toyota and Facebook, among others.

Earlier, the company had acquired HealthPlan Services from Water Street

Healthcare Partners. Since partnering with Water Street in 2008, HealthPlan

Services has grown to become the leading independent technology and Business

Process as a Service (BPaaS) provider in the US health insurance market. As part of

the agreement, Wipro will acquire 100% of HealthPlan Services' shares for a

purchase consideration of US$460mn. Headquartered in Tampa, Florida,

HealthPlan Services employs over 2,000 associates. It offers market-leading

technology platforms and a fully integrated BPaaS solution to health insurance

companies in the individual, group and ancillary markets. HealthPlan Services’

BPaaS solutions are ideal for players who want to operate in the private and public

exchanges and the off-exchange individual market in the US.

Outlook and valuation

The new CEO of the company has put in place an aggressive target of 20%

revenue CAGR over the next four years, with much improved profitability (where

the company has significant levers in the form of automation and improving

utilization levels). Also, the company announced a total of `6/share in dividend

and up to `2,500cr through a buyback. Thus, the total payout in FY2016 amounts

to ~45% compared to 34% in FY2015. The company guided at sustaining ~40%

payout going forward, which will improve the overall returns of the shareholders.

On the valuation front, the stock is currently trading at 13.1x its FY2017E and

11.5x its FY2018E EPS, i.e. at a discount to its peers, while we expect the gap to

narrow down once the company’s performance comes in-line with its peers in

terms of growth and profitability. We maintain a Buy on the stock with a Target

Price of `590.

February 1, 2017

Wipro | 3QFY2017 Result Update

Exhibit 11: Key assumptions

FY2017E

FY2018E

Revenue growth - IT services (USD)

7.8

9.0

USD-INR rate (realized)

66.0

Revenue growth - Consolidated (`)

7.4

17.0

EBITDA margin (%)

18.1

Tax rate (%)

22.0

EPS growth (%)

2.9

7.7

Source: Company, Angel Research

Exhibit 12: One-year forward PE chart

1100

950

800

650

500

350

200

Price

27x

22x

17x

12x

Source: Company, Angel Research

Exhibit 13: Recommendation summary

Company

Reco

CMP Tgt. price Upside

FY2018E FY2018E

FY2016-18E

FY2018E FY2018E

(`)

(%)

EBITDA (%)

P/E (x)

EPS CAGR (%) EV/Sales (x)

RoE (%)

HCL Tech

Buy

809

1,000

23.6

20.5

12.6

9.6

1.8

17.9

Infosys

Buy

929

1,249

34.4

27.0

13.4

8.4

2.2

21.6

TCS

Accumulate

2,230

2,620

17.5

27.6

15.3

8.5

3.1

33.1

Tech Mahindra

Buy

452

600

32.8

17.0

11.3

11.4

1.0

20.7

Wipro

Buy

457

583

27.5

18.1

11.5

4.0

1.6

17.6

Source: Company, Angel Research

Company background

Wipro is among the leading Indian companies, majorly offering IT services. The

company is also engaged in the IT hardware (10% of sales) business. Wipro's IT

arm is India's fourth largest IT firm, employing more than 168,000 professionals,

offering a wide portfolio of services such as ADM, consulting and package

implementation, and servicing more than 1,000 clients.

February 1, 2017

Wipro | 3QFY2017 Result Update

Profit & Loss account (Consolidated, IFRS)

Y/E March (` cr)

FY2014 FY2015 FY2016

FY2017E

FY2018E

Net revenue

43,427

46,955

51,631

55,440

60,430

Cost of revenues

29,549

30,846

34,325

38,143

41,576

Gross profit

13,878

16,108

17,306

17,297

18,854

% of net sales

32.0

34.3

33.5

31.2

Selling and mktg exp.

2,925

3,063

3,319

3,714

4,049

% of net sales

6.7

6.5

6.4

6.7

General and admin exp.

2,354

2,585

2,788

3,548

3,867

% of net sales

5.4

5.5

5.4

6.4

Depreciation and amortization

1,111

1,282

1,496

1,608

1,752

% of net sales

2.6

2.7

2.9

EBIT

8,600

9,179

9,703

10,035

10,938

% of net sales

19.8

19.5

18.8

18.1

Other income, net

1,501

1,990

1,770

1,593

Share in profits of eq. acc. ass.

Profit before tax

10,101

11,168

11,473

11,627

12,531

Provision for tax

2,260

2,462

2,537

2,651

2,857

% of PBT

22.4

22.0

22.1

22.8

PAT

7,840

8,706

8,936

8,976

9,674

Share in earnings of associate

Minority interest

Adj. PAT

7,797

8,653

8,887

8,917

9,614

Diluted EPS (`)

31.5

35.1

35.9

36.1

38.9

February 1, 2017

Wipro | 3QFY2017 Result Update

Balance sheet (Consolidated, IFRS)

Y/E March (` cr)

FY2014

FY2015

FY2016

FY2017E

FY2018E

Assets

Goodwill

6,342

6,808

10,199

6,316

6,317

Intangible assets

194

793

1,584

Property, plant & equipment

5,145

5,421

6,495

6,795

Investment in equ. acc. investees

268

387

491

Derivative assets

Non-current tax assets

1,019

1,141

1,175

Deferred tax assets

336

295

380

Other non-current assets

1,430

1,437

1,583

Total non-current assets

14,762

16,354

21,933

18,350

18,351

Inventories

229

485

539

Trade receivables

8,539

9,153

10,238

10,063

11,778

Other current assets

3,947

7,336

10,407

Unbilled revenues

3,933

4,234

4,827

Available for sale investments

6,056

5,391

13,294

Current tax assets

977

649

781

Derivative assets

366

508

568

Cash and cash equivalents

11,420

15,894

9902

17559

21400

Total current assets

35,469

43,649

50,556

58,038

63,593

Total assets

50,230

60,003

72,489

76,387

81,943

Equity

Share capital

493

494

493

494

Share premium

1,266

1,403

1,462

Retained earnings

31,495

37,225

42,574

46,371

50,390

Share based payment reserve

102

131

223

102

103

Other components of equity

1,047

1,545

1,853

Shares held by controlled trust

(54)

Eq. attrib. to shareholders of Co.

34,350

40,789

46,606

50,282

54,302

Minority interest

139

165

222

Total equity

34,489

40,954

46,828

50,504

54,525

Liabilities

Long term loans and borrowings

1,091

1,271

1,736

Deferred tax liability

180

324

511

Derivative liabilities

Non-current tax liability

345

670

823

Other non-current liabilities

417

366

723

Provisions

Total non-current liabilities

2096

2647

3804

Loans and bank overdraft

4,068

6,621

10,786

Trade payables

5,226

5,875

6,819

6,659

8,066

Unearned revenues

1,277

1,655

1,808

1,877

1,878

Current tax liabilities

1,248

804

702

1,015

1,143

Derivative liabilities

250

234

Other current liabilities

1,439

1,222

1,382

Provisions

137

152

126

Total current liabilities

13,646

16,403

21,856

22,079

23,614

Total liabilities

15,742

19,050

25,661

25,883

27,419

Total equity and liabilities

50,230

60,003

72,489

76,387

81,943

February 1, 2017

Wipro | 3QFY2017 Result Update

Cash flow statement (Consolidated, IFRS)

Y/E March (` cr)

FY2014

FY2015

FY2016

FY2017E

FY2018E

Pre tax profit from operations

8,935

11,168

11,473

12,531

Depreciation

1,111

1,282

1,496

1,752

Expenses (deferred)/written off

(13)

Pre tax cash from operations

10,033

12,438

12,956

14,270

Other income/prior period ad

1,165

1,990

1,770

1,593

Net cash from operations

11,198

14,428

14,726

15,863

Tax

(2,260)

(2,462)

(2,537)

(2,857)

Cash profits

8,938

11,965

12,189

13,006

(Inc)/dec in current assets

(2,653)

(8,181)

(6,906)

(16,613)

Inc/(dec) in current liab.

(828)

2,757

5,453

1,758

Net trade working capital

(3,482)

(5,423)

(1,453)

(14,855)

Cashflow from oper. actv.

5,456

6,542

10,736

(1,849)

(Inc)/dec in fixed assets

(1,203)

(276)

(1,075)

(300)

(Inc)/dec in intangibles

(889)

(600)

(791)

(Inc)/dec in investments

594

(119)

(104)

(Inc)/dec in net def. tax assets

(Inc)/dec in derivative assets

(24)

(Inc)/dec in non-current tax asset

146

(Inc)/dec in minority interest

(4)

Inc/(dec) in other non-current liab

273

510

(Inc)/dec in other non-current ast.

(122)

(34)

Cashflow from investing activities

(1,667)

(826)

(1,352)

(290)

Inc/(dec) in debt

1,006

180

465

Inc/(dec) in equity/premium

(123)

314

(14,062)

3,362

15,151

Dividends

(1,736)

(1,780)

(5,089)

(5,596)

Cashflow from financing activities

(853)

(1,242)

(15,377)

(1,727)

9,555

Cash generated/(utilized)

2,936

4,474

(5,992)

7,658

7,416

Cash at start of the year

8,484

11,420

15,894

9,902

17,559

Cash at end of the year

11,420

15,894

9,902

17,559

24,975

February 1, 2017

Wipro | 3QFY2017 Result Update

Key Ratios

Y/E March

FY2014 FY2015 FY2016

FY2017E

FY2018E

Valuation ratio (x)

P/E (on FDEPS)

15.3

13.7

13.4

13.3

12.4

P/CEPS

7.3

6.7

6.4

5.8

P/BVPS

3.4

2.9

2.5

2.6

2.4

Dividend yield (%)

1.7

2.5

1.2

4.3

4.7

EV/Sales

2.3

2.0

1.8

1.7

1.3

EV/EBITDA

10.2

9.1

8.4

8.0

6.2

EV/Total assets

2.0

1.6

1.3

1.2

1.0

Per share data (`)

EPS (Fully diluted)

31.5

35.1

35.9

38.9

Cash EPS

66.3

72.1

75.2

83.1

Dividend

8.0

12.0

6.0

20.6

22.6

Book value

139.5

165.7

189.4

187.6

203.8

Return ratios (%)

RoCE (pre-tax)

17.1

15.3

13.4

12.8

Angel RoIC

32.6

28.8

24.8

29.3

RoE

22.6

21.1

19.0

17.6

Turnover ratios(x)

Asset turnover (fixed assets)

8.5

8.9

8.7

7.9

9.0

Receivables days

Payable days

February 1, 2017

Wipro | 3QFY2017 Result Update

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Wipro

1. Financial interest of research analyst or Angel or his Associate or his relative

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Ratings (Based on expected returns

Buy (> 15%)

Accumulate (5% to 15%)

Neutral (-5 to 5%)

over 12 months investment period):

Reduce (-5% to -15%)

Sell (< -15)

February 1, 2017