United Microelectronics Corp. (2303.TW)- Earnings review- Improving earnings structure to better weather volatility;reiterat(1)（英文）行业资料

12mPriceTarget:NT12mPriceTarget:NT$67.50Price:NT$39.45Price:$6.492303.TWUMCUpside:71.1%Upside:77.2%+852-2978-6368|bruce.lu@GoldmanSachs(Asia)L.L.C.,TaipeiBranch12mPriceTarget:$11.50+886(2)2730-4187|evelyn.yu@GoldmanSachs(Asia)L.L.C.,TaipeiBranchUMChostedits2Q22analystmeetingon27July.SimilartoTSMC,inthemeetingtoday,UMCalsoacknowledgedthattheindustryisenteringintoaninventorycorrectioncycle.However,wethinktheMarketcap:NT$490.1bn/$16.4bnEnterprisevalue:NT$387.1bnMarketcap:NT$490.1bn/$16.4bnEnterprisevalue:NT$387.1bn/$12.9bn 3mADTV:NT$4.3bn/$143.5mnTaiwanTaiwanSemiconductorM&ARank:3Leasesincl.innetdebt&EV?:Yes12/2112/22E12/23E12/24ERevenue(NT$mn)New213,011.0275,452.8290,872.1297,769.7nueNTmnOld275,907.2293,558.8EBITDA(NT$mn)150,220.8153,215.2EPS(NT$)New4.576.826.756.98softnessinconsumersegments,managementstillexpectsitsutilizationrate(UTR)toremainatfullloadingin3Q22andahealthylevelin4Q22,pricingwillalsoremainfirmin3Q22.Thisismuchstrongercomparingtoitspeers’guidanceofalowerUTRin2H22.Tonote,PSMCguidedtoseea5-10%ofdeclinein3Q22andVanguardisnowlookingforasimilardeclinein3Q22asimpactedbyindustryinventorycorrectioncycle.EPS(NT$)Old4.576.806.597.12PEEPS(NT$)Old4.576.806.597.12PE(X)12.45.85.85.7P/B(X)2.51.51.41.3Dividendyield(%)5.511.911.812.2CROCI(%)8.511.710.910.4its20%+revenuegrowthoutlookfor2022andindicatedthattherecentdemandsoftnessinPC,smartphonewouldbeoffsetbythestrengthinautomotive,networkingandindustrialapplications.3/226/22E9/22E12/22EEPS(NT$)1.611.741.791.68EPS(NT$)1.611.741.791.68GrowthFinancialReturnsMultipleIntegrated2303.TWrelativetoAsiaex.Japan2303.TWrelativetoAsiaex.JapanCoverage2303.TWrelativetoTaiwanSemiconductorSource:Companydata,GoldmanSachsResearchestimates.Seedisclosuresfordetails.whichwebelievelargelyreflectsinvestors’concernsaroundUMC.Ingeneral,investorsdonotbelieveUMCwillbeimmunetoadowncyclegivenitshighexposuretotheconsumermarketandthatitsprofitabilitywillalsobehamperedbyrisingcosts.However,wehavebeenarguingthatwebelieveUMClooksbetter-positionedtoweathertheinventorycorrectioncyclethistimewithamorelinearizedUTRoutlookgivenitsimprovedproductportfolio(lesscommodity-centric;morespecialty)andbettercustomermixovertime.Thisisalsoreaffirmedbythecompany’sbetter-than-fearedUTRguidancefor2H22.Currently,approximately50-55%ofitsGoldmanSachsdoesandseekstodobusinesswithcompaniescoveredinitsresearchreports.Asaresult,investorsshouldbeawarethatthefirmmayhaveaconflictofinterestthatcouldaffecttheobjectivityofthisreport.Investorsshouldconsiderthisreportasonlyasinglefactorinmakingtheirinvestmentdecision.ForRegACcertificationandotherimportantdisclosures,seetheDisclosureAppendix,orgoto/research/hedge.html.Analystsemployedbynon-USaffiliatesarenotregistered/qualifiedasresearchanalystswithFINRAintheU.S.__revenuesarecoveredbyspecialtytechnology(includingsinglesource)withcertainportioncoveredbyLTAs,whichwouldbehelpingtostabilizethedemandvolatility.UMCalsoreaffirmedinthemeetingthatitslongtermcapacityadditionplanwillnotbeaffectedbytheneartermdemandvolatility.AlthoughUMCisalsofacingequipmentavailabilityissues,itisstillaimingtorampupitsnew12AP6capacityby2Q23(+27.5kwpm),whichwillbringitstotalcapacitytogrowby5%in2023.ItsSingaporeFab12iP3greenfieldexpansionplanisalsounchanged(+30kwpmof22/28nmcapacityby2024).Nevertheless,takingintotheaccountanongoingindustry-wideequipmentdeliverydelay,wemaintainourcapexassumptionatUS$3.0bnfor2023,whichislowerthancompany’sguidanceofaUS$3.6bn.2Q22revenueofNT$72.1bn,up13.6%QoQ/41.5%YoY.ThesolidquarterlymomentumwasdrivenmainlybythecombinationofshipmentandASPincreasealongwithamorefavorableFX(TWDtodepreciateoverUSD).WhileEPSofNT$1.74cameinslightlylowerthanGSe/consensusby3.6/4.4%mainlyonlowerthanexpectednon-opprofitsandhighertaxrate,in1Q22,GMandOpMcontinuedtobreakthe10-yearhighlevelswithGMreaching46.5%(up309bpsQoQ)andOpMat39.1%(up387bpsQoQ)thankstopricingincrease/betterFX,aswellasbetteroperatingleverage.2Q221Q222Q21%QoQ%YoYGSprev.%DiffConsensus%Diff(NT$mn)41.5%110.4%149.0%78.6%77.2%15.20%16.41.5%110.4%149.0%78.6%77.2%15.20%16.86%4.4%12.6%-6.7%-4.4%%2.9%-3.5%RevenueGrossprofitOp.incomeNetincomeEPS(NT$)GMOpM3.6%21.7%7.7%7.8%3.09%3.87%72,05533,47221,32746.5%29.6%69,04331,25925,01322,84745.3%36.2%50,90815,9080.9831.2%22.2%23.5%63,42327,50422,33419,80843.4%35.2%31.2%68,56631,65325,59121,99646.2%37.3%5.7%-3.0%-3.6%0.3%%-2.5%Inthenearterm,for3Q22,UMCguidedforUTR(utilizationrate)tobeat100%,andexpectswafershipmentsandASP(inUSDterm)tobeflatQoQ.GMisguidedtobeatthemid-40%rangein3Q22.WebelievetheUTRandpricingguidancebothcameinmuchstrongerthanmarketexpectationsgiventhatinvestorsareingeneralexpectingits3Q22outlooktobesimilartoitspeers’(i.e.PSMCandVanguard),withadecliningUTRandapricingrebatein3Q22.July3_1Q184Q181Q194Q191Q202Q203Q204Q201Q212Q213Q214Q211Q222Q22_1Q184Q181Q194Q191Q202Q203Q204Q201Q212Q213Q214Q211Q222Q223Q224Q221Q232Q233Q234Q234Q184Q191Q202Q203Q204Q201Q212Q213Q214Q211Q222Q223Q224Q221Q232Q233Q234Q2320122013201420152016201720182019202020212022E2023E1Q212Q213Q214Q211Q222Q223Q224Q221Q232Q233Q234Q23(NT$mn)350,000300,000250,000200,000150,000100,00050,000020142015201620172018Revenue(LHS)20192020GM(RHS)50%45%40%35%30%25%20%15%10%5%0%20212022E2023E2024EOpM(RHS)100%80%60%40%20%0%200620082010201220142016201820202022E2024E28nm40nm/45nm60nm90nm130nm180nm250nm350nm500nmOthers120%160%120%140%110%120%100%100%90%90%60%80%40%70%20%60%0%60%8-inch6-inch28nm12-8-inch6-inch28nm12-inch3.53.02.52.01.51.00.5-(US$mn)1.73.02.917.0%12.0%7.0%2.0%-3.0%-8.0%12"ASP%QoQ8"ASP%QoQ1,0009008007006005004003002001000BlendedASP(US$,RHS)July4__Forecastchanges:Wereviseour2022-2024Eearningsestimatesby+0.3%/+2.4%/-1.9%mainlytofactorinactual2Q22resultsandthecompany’supdatedguidance.Factoringintheupdatedguidance,wenowexpect3Q22Erevenuetodeclineby1.0%QoQ,GM/OpMtobeat45.8%/37.3%,andEPSofNT$1.79.2022E(NT$mn)5.4%5.9%7.8%2.9%2.4%0.2%0.8%-0.7%4Q22EDiff(%)3.0%5.0%6.3%2.1%0.9%-0.3%2023ENew290,872,290,61982,9346.7534.6%28.5%3Q22ENew71,35632,67126,64522,03145.8%37.3%30.9%New275,4534,2652,02083,7506.8237.0%30.4%2Q22ENew72,05533,47221,32746.5%29.6%(NT$mn)RevenueGrossprofitOp.incomeNetincomeEPS(NT$)OpMRevenueGrossprofitOp.incomeNetincomeEPS(NT$)OpM2024ENew297,770,559,46985,7456.9843.2%34.7%28.8%Old31,2084287,476.1643.3%33.4%28.9%Old293,559,989,64686,95443.6%34.3%29.6%Old275,90793,34480,5786.5942.9%33.8%29.2%Old267,34695,70383,0666.8044.4%35.8%Diff(%)3.0%4.7%6.6%0.8%0.3%0.7%1.2%-0.7%Diff(%)5.7%-3.0%-3.6%0.3%1.8%-2.5%Diff(%)2.8%-1.9%-0.4%0.5%-0.8%Diff(%)3.9%7.6%9.5%4.6%4.0%0.2%Old66,06528,44722,72234.4%29.8%Old69,29225,05721,57644.9%36.2%New68,61930,61824,87720,58344.6%36.3%30.0%Old61,60425,28219,71041.0%32.0%27.6%Old68,56631,65325,59121,99646.2%37.3%Diff(%)ReiterateBuywithnew12mTPofNT$67.5:Our12mTPisnowtweakeduptoNT$67.5fromNT$65.9,whichisbasedonatargetPEmultipleof10x(2.0stdv.lowerthan2-yeartradingavg.;unchanged)toour2023EEPS.Our12mADRTP(basedonFXconversion)isfine-tunedtoUS$11.50fromUS$11.80basedonourupdatedFXassumptionof29.3from28.0.Withimpliedupsideofc.71%,wereiterateourBuyratingonUMC.UMC’ssharepricehasdeclinedby~39%YTD(vsTaiexof-18%)andisnowtradingclosetoitstroughvaluation.Overall,webelieveUMCisbetter-positionedvspeerstoweatherthroughmarketfluctuationsgivenitsimprovingcustomer/productportfolio.Weexpectthecompanytobeakeybeneficiaryofthestructuraldemandgrowthfrom5G/EV/IoTgivenitsleadershipintrailing-edgenodes.Keydownsideriskstoourviews:(1)weakerenddemandnegativelyaffectingcapacityutilization;(2)slower28nmcapacityfulfillmentresultingindeterioratingprofitability;and(3)pooryield/executionleadingtodeterioratingprofitability.July5__5000005000000409,50007,000204,50002,000JanJanTaiex(LHS)28%25%2.521%100%4%0.5x%ROE(LHS)FwdP/B(RHS)0040200nJanPrice(NT$)JanJan5Jan-17Jan-19Jan-21Jan-19Jan-21UMC(RHS)04020Price(NT$)2x00Jan-21Jan-214x2.00.53.00July6__We,BruceLuandEvelynYu,herebycertifythatalloftheviewsexpressedinthisreportaccuratelyreflectourpersonalviewsaboutthesubjectcompanyorcompaniesanditsortheirsecurities.Wealsocertifythatnopartofourcompensationwas,isorwillbe,directlyorindirectly,relatedtothespecificrecommendationsorviewsexpressedinthisreport.Unlessotherwisestated,theindividualslistedonthecoverpageofthisreportareanalystsinGoldmanSachs’GlobalInvestmentResearchdivision.TheGoldmanSachsFactorProfileprovidesinvestmentcontextforastockbycomparingkeyattributestothemarket(i.e.ourcoverageuniverse)anditssectorpeers.Thefourkeyattributesdepictedare:Growth,FinancialReturns,Multiple(e.g.valuation)andIntegrated(acompositeofGrowth,FinancialReturnsandMultiple).Growth,FinancialReturnsandMultiplearecalculatedbyusingnormalizedranksforspecificmetricsforeachstock.Thenormalizedranksforthemetricsarethenaveragedandconvertedintopercentilesfortherelevantattribute.Theprecisecalculationofeachmetricmayvarydependingonthefiscalyear,industryandregion,butthestandardapproachisasfollows:Growthisbasedonastock’sforward-lookingsalesgrowth,EBITDAgrowthandEPSgrowth(forfinancialstocks,onlyEPSandsalesgrowth),withahigherpercentileindicatingahighergrowthcompanyFinancialReturnsisbasedonastock’sforward-lookingROE,ROCEandCROCI(forfinancialstocks,onlyROE),withahigherpercentileindicatingacompanywithhigherfinancialreturns.Multipleisbasedonastock’sforward-lookingP/E,P/B,CFfornancialstocksonlyPEPBandPDwithahigherpercentileindicatingastocktradingatahighermultiple.TheIntegratedpercentileiscalculatedastheaverageoftheGrowthpercentile,FinancialReturnspercentileand(100%-Multiplepercentile).FinancialReturnsandMultipleusetheGoldmanSachsanalystforecastsatthefiscalyear-endatleastthreequartersinthefuture.Growthusesinputsforthefiscalyearatleastsevenquartersinthefuturecomparedwiththeyearatleastthreequartersinthefuture(onaper-sharebasisforallmetrics).ForamoredetaileddescriptionofhowwecalculatetheGSFactorProfile,pleasecontactyourGSrepresentative.Acrossourglobalcoverage,weexaminestocksusinganM&Aframework,consideringbothqualitativefactorsandquantitativefactors(whichmayvaryacrosssectorsandregions)toincorporatethepotentialthatcertaincompaniescouldbeacquired.WethenassignaM&Arankasameansofscoringcompaniesunderourratedcoveragefrom1to3,with1representinghigh(30%-50%)probabilityofthecompanybecominganacquisitiontarget,2representingmedium(15%-30%)probabilityand3representinglow(0%-15%)probability.Forcompaniesranked1or2,inlinewithourstandarddepartmentalguidelinesweincorporateanM&Acomponentintoourtargetprice.M&Arankof3isconsideredimmaterialandthereforedoesnotfactorintoourpricetarget,andmayormaynotbediscussedinresearch.QuantumisGoldmanSachs’proprietarydatabaseprovidingaccesstodetailedfinancialstatementhistories,forecastsandratios.Itcanbeusedforin-depthanalysisofasinglecompany,ortomakecomparisonsbetweencompaniesindifferentsectorsandmarkets.Therating(s)forUnitedMicroelectronicsCorp.andUnitedMicroelectronicsCorp.(ADR)is/arerelativetotheothercompaniesinits/theirradeTechnologiesLtdRealtekSemiconductorCorpSilergyCorpTSMCTSMCADRUnitedMicroelectronicsCorp.,UnitedMicroelectronicsCorp.(ADR),VanguardInternationalCorp.,uPIThefollowingdisclosuresrelatetorelationshipsbetweenTheGoldmanSachsGroup,Inc.(withitsaffiliates,“GoldmanSachs”)andcompaniescoveredbytheGlobalInvestmentResearchDivisionofGoldmanSachsandreferredtointhisresearch.GoldmanSachshadanon-securitiesservicesclientrelationshipduringthepast12monthswith:UnitedMicroelectronicsCorp.(NT$39.45)andUnitedMicroelectronicsCorp.(ADR)($6.49)GoldmanSachsmakesamarketinthesecuritiesorderivativesthereof:UnitedMicroelectronicsCorp.(NT$39.45)andUnitedMicroelectronicsCorp.achsInvestmentResearchglobalEquitycoverageuniverseRatingDistributionInvestmentBankingRelationshipsBuy50%Sell15%Buy6Buy50%Sell15%Buy65%Hold35%Sell45%Global58GlobalAsofJuly1,2022,GoldmanSachsGlobalInvestmentResearchhadinvestmentratingson3,132equitysecurities.GoldmanSachsassignsstocksasBuysandSellsonvariousregionalInvestmentLists;stocksnotsoassignedaredeemedNeutral.SuchassignmentsequatetoBuy,HoldandSellforthepurposesoftheabovedisclosurerequiredbytheFINRARules.See‘Ratings,Coverageuniverseandrelateddefinitions’below.TheInvestmentBankingRelationshipschartreflectsthepercentageofsubjectcompanieswithineachratingcategoryforwhomGoldmanSachshasprovidedinvestmentbankingserviceswithintheprevioustwelvemonths.July7__Seecompany-specificregulatorydisclosuresaboveforanyofthefollowingdisclosuresrequiredastocompaniesreferredtointhisreport:managerorco-managerinapendingtransaction;1%orotherownership;compensationforcertainservices;typesofclientrelationships;managed/co-managedpublicofferingsinpriorperiods;directorships;forequitysecurities,marketmakingand/orspecialistrole.GoldmanSachstradesormaytradeasaprincipalindebtsecurities(orinrelatedderivatives)ofissuersdiscussedinthisreport.Thefollowingareadditionalrequireddisclosures:Ownershipandmaterialconflictsofinterest:GoldmanSachspolicyprohibitsitsanalysts,professionalsreportingtoanalystsandmembersoftheirhouseholdsfromowningsecuritiesofanycompanyintheanalyst’sareaofcoverage.Analystcompensation:AnalystsarepaidinpartbasedontheprofitabilityofGoldmanSachs,whichincludesinvestmentbankingrevenues.Analystasofficerordirector:GoldmanSachspolicygenerallyprohibitsitsanalysts,personsreportingtoanalystsormembersoftheirhouseholdsfromservingasanofficer,directororadvisorofanycompanyintheanalyst’sareaofcoverage.Non-U.S.Analysts:Non-U.S.analystsmaynotbeassociatedpersonsofGoldmanSachs&Co.LLCandthereforemaynotbesubjecttoFINRARule2241orFINRARule2242restrictionsoncommunicationswithsubjectcompany,publicappearancesandtradingsecuritiesheldbytheanalysts.Distributionofratings:Seethedistributionofratingsdisclosureabove.Pricechart:Seethepricechart,withchangesofratingsandpricetargetsinpriorperiods,above,or,ifelectronicformatorifwithrespecttomultiplecompanieswhicharethesubjectofthisreport,ontheGoldmanSachswebsiteat/research/hedge.html.Thefollowingdisclosuresarethoserequiredbythejurisdictionindicated,excepttotheextentalreadymadeabovepursuanttoUnitedStateslawsandregulations.Australia:GoldmanSachsAustraliaPtyLtdanditsaffiliatesarenotauthoriseddeposit-takinginstitutions(asthattermisdefinedintheBankingActCthinAustraliaanddonotprovidebankingservicesnorcarryonabankingbusinessinAustraliaThisresearchandanyaccesstoit,isintendedonlyfor“wholesaleclients”withinthemeaningoftheAustralianCorporationsAct,unlessotherwiseagreedbyGoldmanSachs.Inproducingresearchreports,membersoftheGlobalInvestmentResearchDivisionofGoldmanSachsAustraliamayattendsitevisitsandothermeetingshostedbythecompaniesandotherentitieswhicharethesubjectofitsresearchreports.InsomeinstancesthecostsofsuchsitevisitsormeetingsmaybemetinpartorinwholebytheissuersconcernedifGoldmanSachsAustraliaconsidersitisappropriateandreasonableinthespecificcircumstancesrelatingtothesitevisitormeeting.Totheextentthatthecontentsofthisdocumentcontainsanyfinancialproductadvice,itisgeneraladviceonlyandhasbeenpreparedbyGoldmanSachswithouttakingintoaccountaclient’sobjectives,financialsituationorneeds.Aclientshould,beforeactingonanysuchadvice,considertheappropriatenessoftheadvicehavingregardtotheclient’sownobjectives,financialsituationandneeds.pyofcertainGoldmanSachsAustraliaandNewZealanddisclosureofinterestsandacopyofGoldmanSachsAustralianSellSideResearchIndependencePolicyStatementareavailableat:/disclosures/australia-new-zealand/index.html.Brazil:DisclosureinformationinrelationtoCVMResolutionn.20isavailableat/worldwide/brazil/area/gir/index.html.Whereapplicable,theBrazil-registeredanalystprimarilyresponsibleforthecontentofthisresearchreport,asdefinedinArticle20ofCVMResolutionn.20,isthefirstauthornamedatthebeginningofthisreport,unlessindicatedotherwiseattheendofthetext.Canada:Thisinformationisbeingprovidedtoyouforinformationpurposesonlyandisnot,andundernocircumstancesshouldbeconstruedas,anadvertisement,offeringorsolicitationbyGoldmanSachsCo.LLCforpurchasersofsecuritiesinCanadatotradeinanyCanadiansecurity.GoldmanSachs&Co.LLCisnotregisteredasadealerinanyjurisdictioninCanadaunderapplicableCanadiansecuritieslawsandgenerallyisnotpermittedtotradeinCanadiansecuritiesandmaybeprohibitedfromsellingcertainsecuritiesandproductsincertainjurisdictionsinCanada.IfyouwishtotradeinanyCanadiansecuritiesorotherproductsinachsGroupIncoranotherregisteredCanadiandealerHongKongFurtherinformationonthesecuritiesofcoveredcompaniesreferredtointhisresearchmaybeobtainedonrequestfromGoldmanSachs(Asia)L.L.C.India:FurtherinformationonthesubjectcompanyorcompaniesreferredtointhisresearchmaybeobtainedfromGoldmanSachs(India)SecuritiesPrivateLimited,ResearchAnalyst-SEBIRegistrationNumberINH000001493,951-A,RationalHouse,AppasahebMaratheMarg,Prabhadevi,Mumbai400025,India,CorporateIdentityNumberU74140MH2006FTC160634,Phone+912266169000,Fax+912266169001.GoldmanSachsmaybeneficiallyown1%ormoreofthesecurities(assuchtermisdefinedinclause2(h)theIndianSecuritiesContracts(Regulation)Act,1956)ofthesubjectcompanyorcompaniesreferredtointhisresearchreport.Japan:Seebelow.Korea:Thisresearch,andanyaccesstoit,isintendedonlyfor“professionalinvestors”withinthemeaningoftheFinancialServicesandCapitalMarketsAct,unlessotherwiseagreedbyGoldmanSachs.FurtherinformationonthesubjectcompanyorcompaniesreferredtointhisresearchmaybeobtainedfromGoldmanSachs(Asia)L.L.C.,SeoulBranch.NewZealand:GoldmanSachsNewZealandLimitedanditsaffiliatesareneither“registeredbanks”nor“deposittakers”(asdefinedintheReserveBankofNewZealandAct1989)inNewZealand.Thisresearch,andanyaccesstoit,isintendedfor“wholesaleclients”(asdefinedintheFinancialAdvisersAct2008)unlessotherwiseagreedbyGoldmanSachs.AcopyofcertainGoldmanSachsAustraliaandNewZealanddisclosureofinterestsisavailableat:/disclosures/australia-new-zealand/index.html.Russia:ResearchreportsdistributedintheRussianFederationarenotadvertisingasdefinedintheRussianlegislation,butareinformationandanalysisnothavingproductpromotionastheirmainpurposeanddonotprovideappraisalwithinthemeaningoftheRussianlegislationonappraisalactivity.ResearchreportsdonotconstituteapersonalizedinvestmentrecommendationasdefinedinRussianlawsandregulations,arenotaddressedtoaspecificclient,andarepreparedwithoutanalyzingthefinancialJuly8__circumstances,investmentprofilesorriskprofilesofclients.GoldmanSachsassumesnoresponsibilityforanyinvestmentdecisionsthatmaybetakenbyaclientoranyotherpersonbasedonthisresearchreport.Singapore:GoldmanSachs(Singapore)Pte.(CompanyNumber:198602165W),whichisregulatedbytheMonetaryAuthorityofSingapore,acceptslegalresponsibilityforthisresearch,andshouldbecontactedwithrespecttoanymattersarisingfrom,orinconnectionwith,thisresearch.Taiwan:Thismaterialisforreferenceonlyandmustnotbereprintedwithoutpermission.Investorsshouldcarefullyconsidertheirowninvestmentrisk.Investmentresultsaretheresponsibilityoftheindividualinvestor.UnitedKingdom:PersonswhowouldbecategorizedasretailclientsintheUnitedKingdom,assuchtermisdefinedintherulesoftheFinancialConductAuthority,shouldreadthisresearchinconjunctionwithpriorGoldmanSachsresearchonthecoveredcompaniesreferredtohereinandshouldrefertotheriskwarningsthathavebeensenttothembyGoldmanSachsInternational.Acopyoftheseriskswarnings,andaglossaryofcertainfinancialtermsusedinthisreport,areavailablefromGoldmanSachsInternationalonrequest.EuropeanUnionandUnitedKingdom:DisclosureinformationinrelationtoArticle6(2)oftheEuropeanCommissionDelegatedRegulation(EU)(2016/958)supplementingRegulation(EU)No596/2014oftheEuropeanParliamentandoftheCouncil(includingasthatDelegatedRegulationisimplementedintoUnitedKingdomdomesticlawandregulationfollowingtheUnitedKingdom’sdeparturefromtheEuropeanUnionandtheEuropeanEconomicArea)withregardtoregulatorytechnicalstandardsforthetechnicalarrangementsforobjectivepresentationofinvestmentrecommendationsorotherinformationrecommendingorsuggestinganinvestmentstrategyandfordisclosureofparticularinterestsorindicationsofconflictsofinterestisavailableat/disclosures/europeanpolicy.htmlwhichstatestheEuropeanPolicyforManagingConflictsofInterestinConnectionwithInvestmentResearch.Japan:GoldmanSachsJapanCo.,Ltd.isaFinancialInstrumentDealerregisteredwiththeKantoFinancialBureauunderregistrationnumberKinshoandamemberofJapanSecuritiesDealersAssociationFinancialFuturesAssociationofJapanandTypeIIFinancialInstrumentsFirmsAssociation.Salesandpurchaseofequitiesaresubjecttocommissionpre-determinedwithclientsplusconsumptiontax.Seecompany-specificdisclosuresastoanyapplicabledisclosuresrequiredbyJapanesestockexchanges,theJapaneseSecuritiesDealersAssociationortheJapanese