METALS AND MINING. November 2010

Transcription

1 METALS AND MINING November 2010

2 METALS AND MINING November 2010 Contents Advantage India Market overview Industry infrastructure Investments Policy and regulatory framework Opportunities Industry associations 2

3 ADVANTAGE INDIA Advantage India India is rich in mineral resources and has large reserves of primary metal ores such as iron ore, bauxite, chromium, manganese and titanium. Bauxite and iron ore deposits in India rank among the best in the world in terms of their quality and mineability. India has untapped metal reserves worth 82 billion tonnes. Advantage India Under the automatic route for mining of metal ores, including precious metals and minerals, the government permits 100 per cent foreign direct investment (FDI). The government is promoting investments to manufacture value-added metals and explore minerals. The country is strategically located, with its proximity to developed European markets and fast-developing Asian markets, to export steel and aluminium. India offers among the lowest labour and conversion costs worldwide for the production of steel and alumina. Source: Ministry of Mines, GoI, Annual Report ; Ministry of Coal, GoI, Annual Report

4 METALS AND MINING November 2010 Contents Advantage India Market overview Industry infrastructure Investments Policy and regulatory framework Opportunities Industry associations 4

5 US$ billion MARKET OVERVIEW Market overview The growth in the metals and mining sector** was recorded at a compound annual growth rate (CAGR) of 13.2 per cent between 2005* and 2009*, and was valued at US$ 83.6 billion (INR Size of metals and mining sector Source: Metals & Mining in India, August 2010, Datamonitor **For the purpose of this report, the metals and mining sector comprises the aluminium segment (only production of primary aluminum is considered), the base metals segment (consisting of lead, zinc, copper, nickel and tin), the coal segment (consisting of primary coal anthracite, bituminous and lignite), the iron and steel segment (consisting of production of crude steel, pig iron and direct reduced iron), and the precious metals and minerals segment (consisting of gold, silver, platinum, palladium, rhodium, and industrial and gem-quality diamonds). *Calendar year 5

6 Percentage market share MARKET OVERVIEW Market segments 100% 90% 80% 70% 71.3% 60% 50% 40% 30% 20% 23.9% 10% 4.8% 0% 2009 Others Coal Iron and steel Iron and steel Since 2005, sponge iron production increased at a CAGR of 14 per cent to reach 21 million tonnes in Sponge iron production stood at 15.5 million tonnes during April 2009 December 2009*. Pig iron production increased at a CAGR of 18 per cent during , to reach 6.2 million tonnes in Pig iron production stood at 4.3 million tonnes during April 2009 December 2009*. Crude steel production increased at a CAGR of 8 per cent during , to 58.4 million tonnes in Crude steel production stood at 45.8 million tonnes during April 2009 December 2009*. Finished steel production increased at a CAGR of 7 per cent during to 57.2 million tonnes in 2009, and stood at 43.8 million tonnes during April 2009 December 2009*. Coal Coal production increased at a CAGR of 7 per cent during , to reach 497 million tonnes. Coal production stood at million tonnes during April 2009 January 2010*. Others base metals, precious metals and minerals The production of bauxite, copper, lead and zinc was estimated at 13.5 million tonnes, 124,000 tonnes,127,000 tonnes and 1.3 million tonnes, respectively, in Gold production was estimated at 1,788 kg in Sources: Metals & Mining in India, August 2010, Datamonitor; Ministry of Steel, GoI, Annual Report ; Ministry of Coal, GoI, Annual Report ; Ministry of Mines, GoI, Annual Report ; *Provisional figures 6

7 MARKET OVERVIEW Overview of operational mines across states India s mining industry comprises a large number of small operational mines, which are primarily involved in the mining of iron ore, coal and bauxite. The number of mines that reported mineral production (excluding minor minerals, petroleum, natural gas and atomic minerals) in India was 2,729 in , as compared to 2,964 mines in the previous year. State Number of reporting mines* ( ) Andhra Pradesh 404 Gujarat 398 Jharkhand 284 Madhya Pradesh 250 Rajasthan 236 Orissa 220 Karnataka 209 Maharashtra 145 Tamil Nadu 138 Chhattisgarh 126 West Bengal 111 Source: Ministry of Mines, GoI, Annual Report

8 MARKET OVERVIEW Exports Ores and minerals export (value in US$ billion) * The value of the total ores and minerals exported from India was estimated to increase by 14.5 per cent y-o-y in 2009, led (in order of highest value) by cut diamonds, alumina and chromite. Source: Ministry of Mines, GoI, Annual Report *Provisional value 8

9 MARKET OVERVIEW Domestic demand iron and steel (1/4) India has abundant iron ore reserves of 24 billion tonnes the fifth-largest reserve base in the world. India s iron ore production represents about 10 per cent of total world production, making it the fourthlargest iron ore producer in world. Therefore, the country has more than sufficient supplies of the key steel making input. During April 2009 December 2009, India s installed capacity of crude steel grew to an estimated 72.8 million tonnes, with the sector operating at an 84 per cent capacity utilisation. Crude steel capacity and production (million tonnes) Apr Dec 09* Capacity Production Source: Ministry of Steel, GoI, Annual Report *Provisional figures 9

10 MARKET OVERVIEW Domestic demand iron and steel (2/4) Finished steel consumption grew at a CAGR of 9.3 per cent between and , as compared to a production CAGR of 6.7 per cent during the same period. India s per capita steel consumption stood at 49 kg in The domestic demand for steel is estimated to rise at an annual average rate of more than10 per cent in the next five years (by ). Finished steel production and consumption (million tonnes) Apr Dec 09* Production Consumption Source: Ministry of Steel, GoI, Annual Report *Provisional figures 10

11 MARKET OVERVIEW Domestic demand iron and steel (3/4) The public sector produced about 27 per cent of the total crude steel, while large and small scale private manufacturers produced 73 per cent. India is the world s fifth-largest producer of steel and is expected to become the second largest by 2015, due to the ongoing capacity additions in the sector. Long products accounted for 57 per cent of the total finished steel consumption and the remaining 43 per cent comprised flat products in % 8% Sector-wise consumption of finished steel ( ) 3% 11% 12% 61% Construction and infrastructure Capital goods Automobiles Packaging Consumer durables Others Sources: Ministry of Steel, GoI, Annual Report ; JSW Steel, Annual Report

12 MARKET OVERVIEW Domestic demand iron and steel (4/4) Long product consumption ( ) Flat product consumption ( ) 17% Construction and infrastructure 21% Construction and infrastructure 5% Manufacturing 39% Manufacturing 7% 74% Automobile Others 20% 20% Automobile Others Sources: Ministry of Steel, GoI, Annual Report ; JSW Steel, Annual Report

13 MARKET OVERVIEW Domestic demand aluminium (1/2) India s rich bauxite reserves are estimated at 2.4 billion tonnes the fourth-largest global reserve base (approximately 6.8 per cent of the world s reserves). India was the world s sixth largest producer of bauxite in Since 2005, the production of aluminium in India increased at a CAGR of 11.3 per cent, to reach 1.35 million tonnes in The primary aluminium industry* is currently concentrated between Nalco, Hindalco and Vedanta Production of aluminium in India (million tonnes) Source: Ministry of Mines, GoI, Annual Report ; World Mineral Production , British Geological Survey *Primary aluminium production involves the refining of bauxite into alumina, and further, the smelting of alumina to aluminium metal. 13

14 MARKET OVERVIEW Domestic demand aluminium (2/2) Power, transportation and infrastructure account for almost three-quarters of domestic aluminium consumption, with power being the largest consumer. India s aluminium demand is expected to double to nearly 3 million tonnes by 2015, driven by the GoI s increasing focus on infrastructure development. Sector-wise consumption of aluminium in India ( ) 7% 13% 17% 48% Power Transport Construction Industrial India s low per capita aluminium consumption of 1.15 kg (against the global average of 11.2 kg) reflects the potential for high demand, in light of the rapid urbanisation and consumerism in the country. 15% Source: Hindalco, Investor Meet, July 2010 Others 14

15 MARKET OVERVIEW Domestic demand coal (1/2) India has nearly 13 per cent of the world s recoverable reserves of coal, which stand at an estimated billion tonnes Production of raw coal in India (million tonnes) The country s production of coal accounts for about 7.5 per cent of the total world production. Total raw coal production grew at a CAGR of 6.5 per cent from to Production stood at million tonnes during April December 2009 Non-coking coal production comprises approximately 93.2 per cent of total raw coal production in the country, as India has limited reserves of coking coal (key input for steel making) Apr Dec 09* Source: Ministry of Coal, GoI, Annual Report ; *Provisional Open cast mining accounts for 81 per cent of the total domestic production of coal in India. 15

16 MARKET OVERVIEW Domestic demand coal (2/2) India s demand for coal is estimated at 720 million tonnes. Coal accounts for about 12 per cent of India s mineral imports and according to GoI s estimates, India can expect a shortfall of 83 million tonnes by the end of the Eleventh Plan ( ). The power segment is the largest consumer of coal, and the trend is expected to continue, with the sustained rise in the demand for power, driven by the GoI s thrust on the developing the power sector. Sector-wise consumption of coal ( ) 3% 10% Power 5% Steel 8% Cement 74% Sponge iron Others Source: Provisional Coal Statistics , Ministry of Coal, GoI 16

17 MARKET OVERVIEW Growth drivers (1/2) Power The power sector accounts for a large share of the consumption of aluminium and coal in the country. In the Eleventh Plan, India is expected to add around 60,000 MW of generation capacity, at an investment of US$ 11.5 billion. Of the total capital expenditure earmarked for , approximately US$ 6.3 billion will be invested in power projects over the next two years (2011 and 2012). Furthermore, the GoI plans to double its capital expenditure in the power sector to US$ 25 billion in the Twelfth Five Year plan ( ), to target further capacity addition of100,000 MW during the plan period. The restructuring of state electricity boards (SEBs), a strong focus on transmission and distribution (T&D) and the opening up of the power sector to the private sector are expected to significantly increase power generation, translating into increased demand and higher consumption of input material such as coal and aluminium. Infrastructure and real-estate The GoI is strongly focusing on infrastructure development to boost economic growth. In order to achieve a GDP growth rate of 9 per cent, the GoI plans to double its investment in infrastructure to US$ 1 trillion in the Twelfth Five Year Plan ( ) Key infrastructure projects such as bridges and urban construction, power projects, railways, airport modernisation and real estate development continue to attract huge domestic and foreign investments.. These provide lucrative business opportunities for steel, zinc and aluminium producers. According to the Eleventh Five Year Plan ( ), housing demand is estimated to increase from around 24 million units in 2007 to over 26 million units at the end of the plan period. The demand for commercial real estate (CRE) segments, comprising retail space, office space and hotels, as well as civic facilities including hospitals, multiplexes and schools, has also been on the rise due to growth in economy. 17

18 MARKET OVERVIEW Growth drivers (2/2) Automotive Sustained growth in India s automotive sector is driving the demand for both steel and aluminium. India is the world s second-largest manufacturer of two wheelers and the fifthlargest manufacturer of commercial vehicles. The Indian automobile industry was valued at INR 1,635 billion (approx. US$ 45 billion) in 2009 the year India emerged as Asia s fourth-largest exporter of automobiles. India is expected to become the world s seventh-largest automobile market by 2016 and the third largest by Total sales are expected to reach US$ billion by 2016, with a total investment requirement estimated at US$ billion. Cement India is the world s second-largest producer of cement, which due to its energy-intensive nature is a major consumer of coal. Installed capacity for the production of cement increased at a CAGR of 8.8 per cent between and , to 236 million tonnes. By , the sector is expected to add additional capacity of 92.3 million tonnes. The consumption of cement is expected to continue rising in India, as a result of the growing number of housing and infrastructure projects, as well as the emerging trend of increased cement use in highways and road construction. Sources: ACC Limited website, accessed November 2010; Aam Aadmi Awaas, National Housing Bank website, accessed January 2010; SIAM website, accessed November

19 MARKET OVERVIEW Key trends (1/2) R&D and upgrading of technology Metal manufacturers are increasing their R&D expenditure and focusing on technology-driven processes to improve their productivity and reduce costs. These technologies include conversion of waste to usable resources and fuel rate reduction. Capacity additions and expansions to meet growth in domestic demand Indian state governments have signed as many as 222 memorandums of understandings (MoUs) with Indian and foreign steel producers. The total planned capacity expected from the MoUs is around 276 million tonnes by To support this expansion, steel manufacturers are backward integrating to produce their own iron ore and coal to ensure raw material security. The Indian primary aluminum sector s current installed capacity of 1.7 million tonnes is expected to nearly double to 4.3 million tonnes by 2014, due to the ongoing capacity expansions by Nalco, Hindalco and Vedanta. Sources: Ministry of Steel, GoI, Annual Report

20 MARKET OVERVIEW Key trends (2/2) Captive mining for coal Captive mining for coal is permitted to set up coal washeries and for specified end uses, including the setting up of power plants, fertilisers and steel units. The government has allocated 198 coal blocks, with geological reserves of about 42 billion tonnes, under the captive route, to various public and private sector companies. Focus on domestic market The demand for metal and metal products is rising in the domestic market, with India being a net importer in the metals segment. Domestic and foreign companies are increasingly focused on tapping the domestic market to meet this rising demand. Sources: JSW Steel, Annual Report ; NTPC to delve into contract mining, The Economic Times, 23 April,

21 MARKET OVERVIEW Key players iron and steel Company Sales ( ) US$ billion (INR billion) Products Tata Steel Ltd (1,043) Steel Authority Of India Ltd 9.31 (441) Finished steel (non-alloy steel) Finished steel (non-alloy steel) J S W Steel Ltd 4.25 (202) Hot rolled coils, strips, sheets Jindal Steel & Power Ltd 2.45 (116) Iron and steel Ispat Industries Ltd 1.98 (95)* Hot rolled coils, strips, sheets Welspun-Gujarat Stahl Rohren Ltd 1.61 (76) Tubes and pipes J S L Stainless Ltd 1.37 (65) Flat products Bhushan Steel Ltd 1.26 (60) Cold rolled coils, strips, sheets Uttam Galva Steels Ltd 0.99 (47) Flat products K E C International Ltd 0.83 (40) Heavy structurals Source: Prowess accessed November 2010, Centre for Monitoring Indian Economy *Sales in

22 MARKET OVERVIEW Key players non-ferrous metals Company Sales ( ) US$ billion (INR billion) Products Hindalco Industries Ltd (618) Aluminium and aluminium products Sterlite Industries (India) Ltd 5.42 (257) Copper and copper products Binani Industries Ltd 0.63 (30) Other non-ferrous metals Ess Dee Aluminium Ltd 0.13 (6) Aluminium and aluminium products Man Aluminium Ltd (0.5) Aluminium and aluminium products Source: Prowess accessed November 2010, Centre for Monitoring Indian Economy 22

23 MARKET OVERVIEW Key players coal (1/2) Major players in India s coal industry include state-owned companies, and private sector participation is limited to captive mining. Coal India Ltd (CIL) is the largest domestic player, with eight wholly owned subsidiary companies that have mining operations in eight states, accounting for 82 per cent of the country s total coal production. The subsidiaries are: Central Mine Planning & Design Institute Ltd Bharat Coking Coal Ltd Central Coalfields Ltd Eastern Coalfields Ltd Western Coalfields Ltd South Eastern Coalfields Ltd Northern Coalfields Ltd Mahanadi Coalfields Ltd 9% Player-wise coal production ( ) 9% 82% Coal India Ltd. Singareni Colleries Company Ltd. Others Sources: Ministry of Coal, GoI, Annual Report

24 MARKET OVERVIEW Key players coal (2/2) Company Sales ( ) US$ billion (INR billion) Production ( ) (million tonnes) Coal India Ltd 9.41 (446.2) Singareni Colleries Company Ltd 1.58 (74.9) Sources: Coal India Ltd, Annual Report ; Ministry of Coal, GoI, Annual Report ; Singareni Colleries Company Ltd website accessed November

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26 INDUSTRY INFRASTRUCTURE Industry infrastructure Special Economic Zones (SEZs) Developers Location Product Viraj Profiles Ltd Thane, Maharashtra Steel Jindal Stainless Ltd Kalinga Nagar, Orissa Steel SAIL Salem SEZ Private Ltd Salem, Tamil Nadu Steel JSW Bengal Steel Ltd West Medinipur, West Bengal Steel Anrak Aluminium Ltd Visakhapatnam, Andhra Pradesh Aluminium JSW Aluminium Ltd Visakhapatnam, Andhra Pradesh Aluminium Maharashtra Industrial Development Corporation Aurangabad, Maharashtra Aluminium Vedanta Alumina Ltd Jharsuguda, Orissa Aluminium Hindalco Industries Ltd Sambalpur, Orissa Aluminium Madhya Pradesh Audyogik Kendra Vikas (Jabalpur) Ltd Jabalpur, Madhya Pradesh Minerals Saraf Agencies Private Ltd Ganjam, Orissa Minerals Source: Formal approvals granted in the Board of Approvals after coming into force of SEZ Rules as on 15 January, 2009, SEZIndia website, accessed November

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28 INVESTMENTS Investments Metallurgical industries and mining attracted US$ 4 billion and US$ million, respectively, in cumulative inflows from April 2000 to September The metals and mining sector accounted for 4 per cent of the total FDI inflow in the country between April 2000 and September On the M&A front, the largest inbound deal announced, in 2010, was JFE Steel Corp s acquisition of JSW Steel Ltd for US$ 1.03 billion M&A scenario details 2009 Deal type No of deals Deal value (US$ million) Inbound Outbound 1 - Domestic (January November 2010) Deal type No of deals Deal value (US$ million) Inbound Outbound 1 - Domestic Cumulative FDI inflows into metals and mining Period: April 2000 to September 2010 Sector US$ million Metallurgical industries Mining Diamond and gold ornaments Coal production 15.6 Total Sources: Transactions, Bloomberg, accessed 4 December, 2009; 2. M&A Transactions, ThomsonOne Banker, accessed November 2010; Fact Sheet On Foreign Direct Investment (FDI), Department of Industrial Policy and Promotion website, accessed in November

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30 POLICY AND REGULATORY FRAMEWORK Policy and regulatory framework (1/3) FDI up to 100 per cent is permitted under the automatic route to explore and exploit all non-fuel and non-atomic minerals in India. FDI up to 100 per cent is permitted under the automatic route to process all metals as well as for metallurgy. In India, mining is regulated by the Mines and Minerals (Regulation and Development) Act (MMRDA), 1957, which is applicable to all minerals. These two set of rules were framed under the act to deal with major minerals (state governments are free to deal with mineral concessions related to minor minerals) and enable the Indian Bureau of Mines (IBM) to monitor and regulate the mining activity in the country, respectively. These rules are the Mineral Concession Rules, 1960 (MCR) and Mineral Conservation and Development Rules, 1988 (MCDR). 30

31 POLICY AND REGULATORY FRAMEWORK Policy and regulatory framework (2/3) State governments grant mineral concessions, such as a Reconnaissance Permit (RP), Prospecting Licence (PL) and Mining Lease (ML), for all minerals located within the boundary of the state, under the terms of the Mines and Minerals Development and Regulation Act, 1957 (MMDR Act). An RP is granted for the preliminary prospecting of a mineral through regional, aerial, geophysical or geochemical surveys and geological mapping. An RP is granted for a maximum period of three years. A PL is granted to undertake operations to explore, locate or prove mineral deposits. A PL for any mineral or prescribed group of associated minerals is granted for a maximum period of three years. An ML is granted for undertaking operations to mine any mineral. An ML for any mineral or prescribed group of associated minerals is granted for a minimum period of 20 years and a maximum period of 30 years. MLs can be renewed for periods not exceeding 20 years. The prior approval of the Central Government is mandatory in respect of any mineral specified in the first schedule to the MMDR Act,

32 POLICY AND REGULATORY FRAMEWORK Policy and regulatory framework (3/3) The GoI has also set up a high-level panel, The Hoda Committee, to formulate a National Mineral Policy, in a move to better regulate the sector. The recommendations of the Hoda Committee and the National Mineral Policy are in the process of getting implemented. The government is finalising a draft act to replace existing legislations in order to effectively implement the recommendations. The Hoda committee has came up with the following recommendations for the new mineral policy: Open sky policy at the initial stages, i.e., at the stage of RP, thereby removing exclusivity Seamless transition from RP to PL without any discretion by government bodies Flexibility in interim tenures Increase in concession area at each stage Security of tenure to be ensured rather than preferential treatment Timely clearance of mineral concessions Value addition requirement to be given preference, but not an absolute requirement Changes in royalty structure to ad valorem Simplification of environmental clearance requirement Setting up mineral development fund (MDF) 32

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34 OPPORTUNITIES Opportunities (1/2) Huge potential for demand growth, given the high potential to increase per capita consumption of steel and aluminium India s per capita steel consumption is 49 kg as compared to the global average of 198 kg in Similarly, India s per capita aluminium consumption of aluminium is 0.8 kg compared with 25 kg in the US, 19 kg in Japan and 10 kg in Europe. This presents an attractive opportunity for brownfield and greenfield capacity expansions in both sectors. Furthermore, India s National Steel Policy aspires to double the rural per capita steel consumption to 4 kg per person in the next few years (nearly 70 per cent of India s population is rural). Moreover, the working group on the steel industry (set up by the Planning Commission for the Eleventh Plan) projected a total demand of 70.3 million tonnes for finished steel and a total production of 80.2 million tonnes of crude steel by According to the estimates of the Ministry of Steel, these targets are likely to be surpassed, translating to opportunities to expand production capacity. India has the world s fifth-largest reserve base of bauxite and accounts for about 7per cent of total world production. Large scope for new mining capacities in iron ore, bauxite, coal and gold India has the world s fourth-largest reserve base of iron ore, and accounts for about10 per cent of total world production. India also has the fourth-largest global reserve base of coal, and accounts for 7.5 per cent of the total world production. India has 14,000 tonnes of gold reserves, and mines three tonnes, per annum of the precious metal. This highlights the lucrative opportunity of investing in the world s largest market for gold. Sources: US Geological Survey, USGS website 34

35 OPPORTUNITIES Opportunities (2/2) Strong long-term demand from the steel industry is expected to further boost the iron ore industry, while positive trends in the power sector are likely to catapult demand for coal. The key drivers for both short-and long-term growth, include the booming construction, automobiles, power and packaging industries, which are expected to lend substantial support to the sector. The fast-growing power sector is opening up the market for aluminium wire rods and cables, as it is the primary consumer of this product group. Rapid growth of user-industries to drive demand for metals and minerals Driven by India s burgeoning middle class, car sales are forecasted to grow by nearly five-fold over the next ten years (by ), from 1.95 million units at present. The automotive sector is a major consumer of steel, aluminium and zinc. The growth in India s automotive sales reflects the growing consumerism and urbanisation in the country. The rise in India s consumerism and urbanisation is also reflected by changing customer preferences, as the use of products such as personal care products, pharmaceuticals and processed foods rises. These products are packaged in the form of tubes, containers, cans, bottle caps and foils, which extensively use aluminium. As such, the Indian packaging industry is expected to register a growth rate of per cent in the next few years. The rapid growth of India s construction sector is resulting in higher demand for structural steel and the increasing use of aluminium in doorframes, roofing, partitions, ceilings and building hardware. Sources: US Geological Survey, USGS website 35

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37 INDUSTRY ASSOCIATIONS Industry associations Aluminium Association of India 118, 1st Floor, Ramanashree Arcade 18, M. G. Road Bengaluru, Karnataka Phone: , Fax: Indian Stainless Steel Development Association L -22/4, DLF Phase II Gurgaon, Haryana Phone: Fax: nissda@gmail.com Federation of Indian Mineral Industries FIMI House, B-311, Okhla Industrial Area Phase-I, New Delhi Phone: Fax: fimi@fedmin.com 37

38 NOTE Note Wherever applicable, numbers in the report have been rounded off to the nearest whole number. Conversion rate used: US$ 1= INR 48 38

39 METALS AND MINING November 2010 DISCLAIMER India Brand Equity Foundation ( IBEF ) engaged Ernst & Young Pvt Ltd to prepare this presentation and the same has been prepared by Ernst & Young in consultation with IBEF. All rights reserved. All copyright in this presentation and related works is solely and exclusively owned by IBEF. The same may not be reproduced, wholly or in part in any material form (including photocopying or storing it in any medium by electronic means and whether or not transiently or incidentally to some other use of this presentation), modified or in any manner communicated to any third party except with the written approval of IBEF. This presentation is for information purposes only. While due care has been taken during the compilation of this presentation to ensure that the information is accurate to the best of Ernst & Young and IBEF s knowledge and belief, the content is not to be construed in any manner whatsoever as a substitute for professional advice. Ernst & Young and IBEF neither recommend nor endorse any specific products or services that may have been mentioned in this presentation and nor do they assume any liability or responsibility for the outcome of decisions taken as a result of any reliance placed on this presentation. Neither Ernst & Young nor IBEF shall be liable for any direct or indirect damages that may arise due to any act or omission on the part of the user due to any reliance placed or guidance taken from any portion of this presentation. 39