agriculture-blur-carrots-196643

Another strong quarter

La Doria 16 September 2021 Update
Download PDF

La Doria

Another strong quarter

H121 results

Food & beverages

16 September 2021

Price

€17.06

Market cap

€522m

Net debt (€m) at 30 June 2021

82.4

Shares in issue

30.6m

Free float

37%

Code

LD

Primary exchange

Borsa Italia (STAR)

Secondary exchange

N/A

Share price performance

%

1m

3m

12m

Abs

(6.5)

(5.0)

48.3

Rel (local)

(3.5)

(5.3)

14.2

52-week high/low

€19.52

€11.00

Business description

La Doria is the leading manufacturer of private-label preserved vegetables and fruit for the Italian (16% of revenues) and international (84% of revenues) markets. It enjoys leading market share positions across its product ranges in the UK, Italy, Germany and Australia.

Next events

Nine-month results

November 2021

FY21 results

March 2022

Analysts

Sara Welford

+44 (0)20 3077 5700

Russell Pointon

+44 (0)20 3077 5700

La Doria is a research client of Edison Investment Research Limited

Yet again, La Doria has posted strong H1 results notwithstanding the tough comparatives. Revenues were down 4.1%, as expected, as food consumption normalised compared to the pandemic peak in Q220. EBITDA was up 22%, with an impressive 210bp increase in margin to 9.8%. The outlook for the sector remains favourable, and the seasonal tomato campaign has been successful in terms of industrial yields and product quality. We see upside to our FY21 forecasts given the strong performance so far, though we are mindful of rising input costs, consumer demand normalising, and a poorer 2021 fruit crop.

Year end

Revenue (€m)

PBT*
(€m)

EPS*
(c)

DPS
(c)

P/E
(x)

Yield
(%)

12/19

717.7

32.7

64.5

18.0

26.4

1.1

12/20

848.1

63.3

185.5

50.0

9.2

2.9

12/21e

814.2

62.7

157.9

41.0

10.8

2.4

12/22e

814.2

66.6

166.6

44.0

10.2

2.6

Note: *PBT and EPS are normalised, excluding amortisation of acquired intangibles, exceptional items and share-based payments.

H121 results strong yet again

H121 revenue was €423.8m, down 4.1% on the prior year, as expected, given the extremely strong comparatives, particularly during Q2. Volumes declined while pricing was up. The Sauces business continued to be the stand-out performer, with sales up 3% despite the extremely strong base, and once again the international business outperformed the domestic business. EBITDA was €41.7m, up 22% on the prior year, and benefited both from the positive trend in pricing and the rewards of its four-year investment programme. Net debt was €82.4m compared to €89.2m at end H120.

Upside to forecasts

We raise our FY21 forecasts slightly to reflect the good H1 performance, although we recognise that demand is continuing to slowly normalise, and input costs are rising. The first phase of the tomato campaign has gone well, with good weather resulting in a high-quality crop and therefore benefiting industrial yields. While – as normal – negotiations are not yet complete, we expect FY21 profitability in the segment to again improve, as demand continues to be high and stocks are relatively low. We therefore see upside to our FY21 forecasts. We leave our FY22 forecasts broadly unchanged at this stage, as we are mindful of rising input costs and a poorer 2021 fruit crop.

Valuation: Fair value increases to €22.00/share

Our DCF model indicates a fair value of €22 per share (from €20 previously), or c 30% upside from the current share price. La Doria trades on a P/E of 10.2x FY22e, a c 20% discount to its private-label peer group. On EV/EBITDA it trades at 7.0x FY22e, a c 5% discount, and its dividend is well covered, with a yield of 2.6%. We believe La Doria remains an attractive proposition, given the strength of its market position in the private-label segment.

H121 results review and forecasts

Consolidated revenues were €423.8m, down 4.1% on the prior year, and down 4.5% at constant currency. EBITDA was €41.7m, up 22% versus the prior year, with margins up 210bp to 9.8%. Group EBIT was €31.9m, versus €25.9m in H120, thus resulting in the EBIT margin increasing 160bp to 7.5%. Net debt was €82.4m, compared to €89.2m at end H120 and €125.6m at the end of Q121.

The Sauces business was up 3% in revenue terms, building on an increase of 30% in the comparable period. The fruit line was flat during the period, while other divisions declined, given the strength of performance in the base period: the tomato-based business was down 4.7% (+22% in H120), the Pulses and Vegetables line was down 6.2% (+17% in the comparable period) and the ‘other’ (trading) line was down 5.9% (+33% a year ago). Overall, the international business (84% of the H1 total) declined by 3.4%, while the domestic business declined by 7.3%. Once again, margin improvement was driven both by operating leverage and the benefits of the four-year investment plan, with increased efficiencies and lower costs.

We raise our FY21 forecasts slightly to reflect the continued good performance through Q2 and hence forecast a better performance for the full year. The first phase (July and August) of the seasonal tomato campaign has gone well, with favourable weather leading to a good-quality crop and hence increased industrial yields and higher volumes. Negotiations are not yet complete, and indeed the tomato campaign is still ongoing, but we expect profitability to improve in the segment in FY22 as the commercial landscape continues to be favourable and the campaign has gone well so far. That said, we recognise that consumer demand patterns continue to slowly normalise, and raw material costs are rising across the board. We therefore leave our forecasts unchanged for FY22 and beyond.

We forecast the usual seasonality to La Doria’s cash flows for FY21, and hence expect net debt to increase to €102m by end FY21 (from €82m at end H121 and a material improvement from the end 2020 level of €140m). From FY21, we expect capital expenditure to fall as La Doria’s four-year investment programme comes to an end and it starts to reap the rewards of its investments, which are leading to greater efficiencies, particularly on the logistics side at LDH, and lower costs. We forecast strongly positive cash flows to contribute to a minimal net debt by the end of FY23 (our forecast is €21m).

Our forecasts are shown in Exhibit 1. As a reminder, we do not assume any further significant lockdowns in La Doria’s main markets.

Exhibit 1: New versus old forecasts

€m

2021e

2022e

2023e

Old

New

% chg

Old

New

% chg

Old

New

% chg

Revenue

805.7

814.2

1.1%

813.8

814.2

0.1%

830.1

830.5

0.1%

EBITDA

83.8

84.7

1.1%

89.5

89.6

0.1%

95.5

95.5

0.1%

EBIT

62.8

63.7

1.4%

67.5

67.6

0.1%

73.5

73.5

0.1%

PBT

61.8

62.7

1.4%

66.5

66.6

0.1%

72.5

72.5

0.1%

Net profit

47.6

48.3

1.4%

50.9

50.9

0.1%

52.9

52.9

0.1%

Net debt

100.8

102.4

1.6%

63.8

62.8

-1.6%

21.5

20.5

-4.7%

EBITDA margin

10.4%

10.4%

0.0%

11.0%

11.0%

0.0%

11.5%

11.5%

0.0%

EBIT margin

7.8%

7.8%

0.0%

8.3%

8.3%

0.0%

8.8%

8.9%

0.0%

Source: Edison Investment Research


Valuation

We illustrate La Doria’s valuation versus its peers in Exhibit 2 below. On our 2022 estimates, La Doria currently trades at a c 20% discount on a P/E basis, and a c 5% discount on an EV/EBITDA basis, which we believe is unwarranted given that the company is starting to reap the cost-saving and efficiency benefits of its four-year investment programme, industry supply for the red line is now more balanced with demand, and industry stock levels remain low. In addition, the company’s balance sheet is conservatively managed.

Exhibit 2: Benchmark valuation of La Doria relative to peers

Market cap

(m)

P/E (x)

EV/EBITDA (x)

Dividend yield (%)

2021e

2022e

2021e

2022e

2021e

2022e

Greencore

£680.4

37.1

13.0

10.9

7.4

0.6

2.8

Ebro Foods

€ 2,508.3

15.6

15.1

9.1

8.9

3.8

3.9

Bonduelle

€ 715.4

12.1

10.1

7.9

7.3

2.2

2.5

Valsoia

€ 152.4

18.8

18.0

9.9

9.6

2.7

2.7

Centrale del Latte d'Italia

€ 48.8

5.6

5.4

4.1

4.0

0.0

0.0

Newlat

€ 292.3

22.2

15.7

5.4

4.5

0.0

0.0

Peer group average

18.6

12.9

7.9

6.9

1.5

2.0

La Doria

€ 521.4

10.8

10.2

7.4

7.0

2.4

2.6

Premium/(discount) to peer group

(41.8%)

(20.6%)

(6.5%)

0.2%

56.7%

31.5%

Source: Edison Investment Research estimates, Refinitiv. Note: Priced at 15 September 2021.

We have rolled forward our DCF to commence in 2021, so our fair value rises to €22.00 per share (from €20.00 previously). This is based on our assumptions of a 1.5% terminal growth rate and a 7.0% terminal EBIT margin. Our WACC of 6.4% is predicated on an equity risk premium of 4%, borrowing spread of 6% and beta of 0.8 (unchanged). Below, we show a sensitivity analysis to our assumptions and note that the current share price is discounting, for example, a terminal EBIT margin of 5.5% (which compares with La Doria’s FY19 EBITDA margin of 7.8% and EBIT margin of 4.8%, with the latter representing a trough level, and FY20 margins of 9.8% and 7.6% respectively) and a terminal growth rate of 0.8%.

Exhibit 3: DCF sensitivity to terminal growth rate and EBIT margin (€/share)

EBIT margin

5.5%

6.0%

6.5%

7.0%

7.5%

8.0%

Terminal growth

-2.5%

14.0

14.7

15.3

16.0

16.6

17.3

-1.5%

14.7

15.5

16.2

16.9

17.7

18.4

-0.5%

15.6

16.4

17.3

18.1

19.0

19.8

0.5%

16.7

17.7

18.7

19.7

20.7

21.8

1.5%

18.3

19.5

20.8

22.0

23.2

24.4

2.5%

20.7

22.3

23.8

25.4

26.9

28.5

3.5%

24.8

26.9

29.0

31.1

33.2

35.3

Source: Edison Investment Research

Exhibit 4: Financial summary

€m

2018

2019

2020

2021e

2022e

2023e

2024e

Year end 31 December

IFRS

IFRS

IFRS

IFRS

IFRS

IFRS

IFRS

PROFIT & LOSS

Revenue

 

 

687.9

717.7

848.1

814.2

814.2

830.5

847.1

Cost of Sales

(581.7)

(604.2)

(706.9)

(675.3)

(672.1)

(683.0)

(695.8)

Gross Profit

106.2

113.5

141.3

138.9

142.1

147.5

151.3

EBITDA

 

 

52.8

56.0

83.1

84.7

89.6

95.5

98.3

Operating Profit (before amort. and except.)

34.8

34.6

64.8

63.7

67.6

73.5

78.3

Intangible Amortisation

0.0

0.0

0.0

0.0

0.0

0.0

0.0

Exceptionals

0.0

0.0

0.0

0.0

0.0

0.0

0.0

FX gain/(loss)

3.2

(5.0)

4.9

0.0

0.0

0.0

0.0

Operating Profit

37.9

29.5

69.7

63.7

67.6

73.5

78.3

Net Interest

(1.7)

(1.8)

(1.5)

(1.0)

(1.0)

(1.0)

(1.0)

Profit Before Tax (norm)

 

 

33.1

32.7

63.3

62.7

66.6

72.5

77.3

Profit Before Tax (FRS 3)

 

 

36.3

27.7

68.2

62.7

66.6

72.5

77.3

Tax

(8.9)

(7.9)

(11.5)

(14.4)

(15.6)

(19.6)

(20.9)

Profit After Tax (norm)

27.3

19.9

56.7

48.3

50.9

52.9

56.4

Profit After Tax (FRS 3)

27.3

19.9

56.7

48.3

50.9

52.9

56.4

Average Number of Shares Outstanding (m)

31.0

30.8

30.6

30.6

30.6

30.6

30.6

EPS - normalised fully diluted (c)

 

 

88.2

64.5

185.5

157.9

166.6

173.2

184.5

EPS - (IFRS) (c)

 

 

88.2

64.5

185.5

157.9

166.6

173.2

184.5

Dividend per share (c)

18.0

18.0

50.0

41.0

44.0

46.0

49.0

Gross Margin (%)

15.4

15.8

16.7

17.1

17.5

17.8

17.9

EBITDA Margin (%)

7.7

7.8

9.8

10.4

11.0

11.5

11.6

Operating Margin (before GW and except.) (%)

5.1

4.8

7.6

7.8

8.3

8.9

9.2

BALANCE SHEET

Fixed Assets

 

 

203.5

246.0

246.8

255.4

264.2

273.8

285.5

Intangible Assets

5.5

5.1

7.5

6.8

6.1

5.4

4.7

Tangible Assets

175.9

221.6

219.5

212.2

203.9

195.6

188.3

Investments

22.1

19.3

19.9

36.5

54.3

72.8

92.5

Current Assets

 

 

419.4

384.4

433.5

459.1

498.2

549.0

601.5

Stocks

204.4

219.1

247.2

235.7

235.2

240.4

243.5

Debtors

110.2

109.8

126.1

125.4

125.4

128.7

131.3

Cash

86.8

42.0

51.1

88.9

128.5

170.8

217.6

Other

18.0

13.5

9.1

9.1

9.1

9.1

9.1

Current Liabilities

 

 

(242.3)

(246.6)

(276.2)

(260.7)

(259.5)

(262.1)

(264.5)

Creditors

(148.4)

(153.9)

(172.2)

(156.7)

(155.4)

(158.1)

(160.4)

Short term borrowings

(93.9)

(92.7)

(104.0)

(104.0)

(104.0)

(104.0)

(104.0)

Long Term Liabilities

 

 

(139.3)

(130.3)

(112.7)

(112.7)

(112.7)

(112.7)

(112.7)

Long term borrowings

(105.2)

(98.2)

(87.3)

(87.3)

(87.3)

(87.3)

(87.3)

Other long term liabilities

(34.1)

(32.2)

(25.4)

(25.4)

(25.4)

(25.4)

(25.4)

Net Assets

 

 

241.4

253.6

291.5

341.1

390.3

448.0

509.8

CASH FLOW

Operating Cash Flow

 

 

48.2

38.7

54.9

67.1

73.1

70.1

74.0

Net Interest

(1.7)

(1.8)

(1.5)

(1.0)

(1.0)

(1.0)

(1.0)

Tax

0.0

0.0

0.0

0.0

0.0

0.0

0.0

Capex

(46.5)

(59.4)

(19.1)

(13.0)

(13.0)

(13.0)

(12.0)

Acquisitions/disposals

0.0

0.0

0.0

0.0

0.0

0.0

0.0

Financing

0.0

0.0

0.0

0.0

0.0

0.0

0.0

Dividends

(9.6)

(6.9)

(6.9)

(15.3)

(12.5)

(13.7)

(14.3)

Other

(4.6)

(7.0)

(18.8)

0.0

(7.0)

0.0

0.0

Net Cash Flow

(14.1)

(36.5)

8.6

37.8

39.6

42.3

46.7

Opening net debt/(cash)

 

 

98.2

112.3

148.8

140.2

102.4

62.8

20.5

HP finance leases initiated

0.0

0.0

0.0

0.0

0.0

0.0

0.0

Other

(0.0)

0.0

(0.0)

0.0

0.0

0.0

0.0

Closing net debt/(cash)

 

 

112.3

148.8

140.2

102.4

62.8

20.5

(26.3)

Source: Edison Investment Research, company accounts


General disclaimer and copyright

This report has been commissioned by La Doria prepared and issued by Edison, in consideration of a fee payable by La Doria. Edison Investment Research standard fees are £49,500 pa for the production and broad dissemination of a detailed note (Outlook) following by regular (typically quarterly) update notes. Fees are paid upfront in cash without recourse. Edison may seek additional fees for the provision of roadshows and related IR services for the client but does not get remunerated for any investment banking services. We never take payment in stock, options or warrants for any of our services.

Accuracy of content: All information used in the publication of this report has been compiled from publicly available sources that are believed to be reliable, however we do not guarantee the accuracy or completeness of this report and have not sought for this information to be independently verified. Opinions contained in this report represent those of the research department of Edison at the time of publication. Forward-looking information or statements in this report contain information that is based on assumptions, forecasts of future results, estimates of amounts not yet determinable, and therefore involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of their subject matter to be materially different from current expectations.

Exclusion of Liability: To the fullest extent allowed by law, Edison shall not be liable for any direct, indirect or consequential losses, loss of profits, damages, costs or expenses incurred or suffered by you arising out or in connection with the access to, use of or reliance on any information contained on this note.

No personalised advice: The information that we provide should not be construed in any manner whatsoever as, personalised advice. Also, the information provided by us should not be construed by any subscriber or prospective subscriber as Edison’s solicitation to effect, or attempt to effect, any transaction in a security. The securities described in the report may not be eligible for sale in all jurisdictions or to certain categories of investors.

Investment in securities mentioned: Edison has a restrictive policy relating to personal dealing and conflicts of interest. Edison Group does not conduct any investment business and, accordingly, does not itself hold any positions in the securities mentioned in this report. However, the respective directors, officers, employees and contractors of Edison may have a position in any or related securities mentioned in this report, subject to Edison's policies on personal dealing and conflicts of interest.

Copyright: Copyright 2021 Edison Investment Research Limited (Edison).

Australia

Edison Investment Research Pty Ltd (Edison AU) is the Australian subsidiary of Edison. Edison AU is a Corporate Authorised Representative (1252501) of Crown Wealth Group Pty Ltd who holds an Australian Financial Services Licence (Number: 494274). This research is issued in Australia by Edison AU and any access to it, is intended only for "wholesale clients" within the meaning of the Corporations Act 2001 of Australia. Any advice given by Edison AU is general advice only and does not take into account your personal circumstances, needs or objectives. You should, before acting on this advice, consider the appropriateness of the advice, having regard to your objectives, financial situation and needs. If our advice relates to the acquisition, or possible acquisition, of a particular financial product you should read any relevant Product Disclosure Statement or like instrument.

New Zealand

The research in this document is intended for New Zealand resident professional financial advisers or brokers (for use in their roles as financial advisers or brokers) and habitual investors who are “wholesale clients” for the purpose of the Financial Advisers Act 2008 (FAA) (as described in sections 5(c) (1)(a), (b) and (c) of the FAA). This is not a solicitation or inducement to buy, sell, subscribe, or underwrite any securities mentioned or in the topic of this document. For the purpose of the FAA, the content of this report is of a general nature, is intended as a source of general information only and is not intended to constitute a recommendation or opinion in relation to acquiring or disposing (including refraining from acquiring or disposing) of securities. The distribution of this document is not a “personalised service” and, to the extent that it contains any financial advice, is intended only as a “class service” provided by Edison within the meaning of the FAA (i.e. without taking into account the particular financial situation or goals of any person). As such, it should not be relied upon in making an investment decision.

United Kingdom

This document is prepared and provided by Edison for information purposes only and should not be construed as an offer or solicitation for investment in any securities mentioned or in the topic of this document. A marketing communication under FCA Rules, this document has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and is not subject to any prohibition on dealing ahead of the dissemination of investment research.

This Communication is being distributed in the United Kingdom and is directed only at (i) persons having professional experience in matters relating to investments, i.e. investment professionals within the meaning of Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005, as amended (the "FPO") (ii) high net-worth companies, unincorporated associations or other bodies within the meaning of Article 49 of the FPO and (iii) persons to whom it is otherwise lawful to distribute it. The investment or investment activity to which this document relates is available only to such persons. It is not intended that this document be distributed or passed on, directly or indirectly, to any other class of persons and in any event and under no circumstances should persons of any other description rely on or act upon the contents of this document.

This Communication is being supplied to you solely for your information and may not be reproduced by, further distributed to or published in whole or in part by, any other person.

United States

The Investment Research is a publication distributed in the United States by Edison Investment Research, Inc. Edison Investment Research, Inc. is registered as an investment adviser with the Securities and Exchange Commission. Edison relies upon the "publishers' exclusion" from the definition of investment adviser under Section 202(a)(11) of the Investment Advisers Act of 1940 and corresponding state securities laws. This report is a bona fide publication of general and regular circulation offering impersonal investment-related advice, not tailored to a specific investment portfolio or the needs of current and/or prospective subscribers. As such, Edison does not offer or provide personal advice and the research provided is for informational purposes only. No mention of a particular security in this report constitutes a recommendation to buy, sell or hold that or any security, or that any particular security, portfolio of securities, transaction or investment strategy is suitable for any specific person.

Frankfurt +49 (0)69 78 8076 960

Schumannstrasse 34b

60325 Frankfurt

Germany

London +44 (0)20 3077 5700

280 High Holborn

London, WC1V 7EE

United Kingdom

New York +1 646 653 7026

1185 Avenue of the Americas

3rd Floor, New York, NY 10036

United States of America

Sydney +61 (0)2 8249 8342

Level 4, Office 1205

95 Pitt Street, Sydney

NSW 2000, Australia

Frankfurt +49 (0)69 78 8076 960

Schumannstrasse 34b

60325 Frankfurt

Germany

London +44 (0)20 3077 5700

280 High Holborn

London, WC1V 7EE

United Kingdom

New York +1 646 653 7026

1185 Avenue of the Americas

3rd Floor, New York, NY 10036

United States of America

Sydney +61 (0)2 8249 8342

Level 4, Office 1205

95 Pitt Street, Sydney

NSW 2000, Australia

General disclaimer and copyright

This report has been commissioned by La Doria prepared and issued by Edison, in consideration of a fee payable by La Doria. Edison Investment Research standard fees are £49,500 pa for the production and broad dissemination of a detailed note (Outlook) following by regular (typically quarterly) update notes. Fees are paid upfront in cash without recourse. Edison may seek additional fees for the provision of roadshows and related IR services for the client but does not get remunerated for any investment banking services. We never take payment in stock, options or warrants for any of our services.

Accuracy of content: All information used in the publication of this report has been compiled from publicly available sources that are believed to be reliable, however we do not guarantee the accuracy or completeness of this report and have not sought for this information to be independently verified. Opinions contained in this report represent those of the research department of Edison at the time of publication. Forward-looking information or statements in this report contain information that is based on assumptions, forecasts of future results, estimates of amounts not yet determinable, and therefore involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of their subject matter to be materially different from current expectations.

Exclusion of Liability: To the fullest extent allowed by law, Edison shall not be liable for any direct, indirect or consequential losses, loss of profits, damages, costs or expenses incurred or suffered by you arising out or in connection with the access to, use of or reliance on any information contained on this note.

No personalised advice: The information that we provide should not be construed in any manner whatsoever as, personalised advice. Also, the information provided by us should not be construed by any subscriber or prospective subscriber as Edison’s solicitation to effect, or attempt to effect, any transaction in a security. The securities described in the report may not be eligible for sale in all jurisdictions or to certain categories of investors.

Investment in securities mentioned: Edison has a restrictive policy relating to personal dealing and conflicts of interest. Edison Group does not conduct any investment business and, accordingly, does not itself hold any positions in the securities mentioned in this report. However, the respective directors, officers, employees and contractors of Edison may have a position in any or related securities mentioned in this report, subject to Edison's policies on personal dealing and conflicts of interest.

Copyright: Copyright 2021 Edison Investment Research Limited (Edison).

Australia

Edison Investment Research Pty Ltd (Edison AU) is the Australian subsidiary of Edison. Edison AU is a Corporate Authorised Representative (1252501) of Crown Wealth Group Pty Ltd who holds an Australian Financial Services Licence (Number: 494274). This research is issued in Australia by Edison AU and any access to it, is intended only for "wholesale clients" within the meaning of the Corporations Act 2001 of Australia. Any advice given by Edison AU is general advice only and does not take into account your personal circumstances, needs or objectives. You should, before acting on this advice, consider the appropriateness of the advice, having regard to your objectives, financial situation and needs. If our advice relates to the acquisition, or possible acquisition, of a particular financial product you should read any relevant Product Disclosure Statement or like instrument.

New Zealand

The research in this document is intended for New Zealand resident professional financial advisers or brokers (for use in their roles as financial advisers or brokers) and habitual investors who are “wholesale clients” for the purpose of the Financial Advisers Act 2008 (FAA) (as described in sections 5(c) (1)(a), (b) and (c) of the FAA). This is not a solicitation or inducement to buy, sell, subscribe, or underwrite any securities mentioned or in the topic of this document. For the purpose of the FAA, the content of this report is of a general nature, is intended as a source of general information only and is not intended to constitute a recommendation or opinion in relation to acquiring or disposing (including refraining from acquiring or disposing) of securities. The distribution of this document is not a “personalised service” and, to the extent that it contains any financial advice, is intended only as a “class service” provided by Edison within the meaning of the FAA (i.e. without taking into account the particular financial situation or goals of any person). As such, it should not be relied upon in making an investment decision.

United Kingdom

This document is prepared and provided by Edison for information purposes only and should not be construed as an offer or solicitation for investment in any securities mentioned or in the topic of this document. A marketing communication under FCA Rules, this document has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and is not subject to any prohibition on dealing ahead of the dissemination of investment research.

This Communication is being distributed in the United Kingdom and is directed only at (i) persons having professional experience in matters relating to investments, i.e. investment professionals within the meaning of Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005, as amended (the "FPO") (ii) high net-worth companies, unincorporated associations or other bodies within the meaning of Article 49 of the FPO and (iii) persons to whom it is otherwise lawful to distribute it. The investment or investment activity to which this document relates is available only to such persons. It is not intended that this document be distributed or passed on, directly or indirectly, to any other class of persons and in any event and under no circumstances should persons of any other description rely on or act upon the contents of this document.

This Communication is being supplied to you solely for your information and may not be reproduced by, further distributed to or published in whole or in part by, any other person.

United States

The Investment Research is a publication distributed in the United States by Edison Investment Research, Inc. Edison Investment Research, Inc. is registered as an investment adviser with the Securities and Exchange Commission. Edison relies upon the "publishers' exclusion" from the definition of investment adviser under Section 202(a)(11) of the Investment Advisers Act of 1940 and corresponding state securities laws. This report is a bona fide publication of general and regular circulation offering impersonal investment-related advice, not tailored to a specific investment portfolio or the needs of current and/or prospective subscribers. As such, Edison does not offer or provide personal advice and the research provided is for informational purposes only. No mention of a particular security in this report constitutes a recommendation to buy, sell or hold that or any security, or that any particular security, portfolio of securities, transaction or investment strategy is suitable for any specific person.

Frankfurt +49 (0)69 78 8076 960

Schumannstrasse 34b

60325 Frankfurt

Germany

London +44 (0)20 3077 5700

280 High Holborn

London, WC1V 7EE

United Kingdom

New York +1 646 653 7026

1185 Avenue of the Americas

3rd Floor, New York, NY 10036

United States of America

Sydney +61 (0)2 8249 8342

Level 4, Office 1205

95 Pitt Street, Sydney

NSW 2000, Australia

Frankfurt +49 (0)69 78 8076 960

Schumannstrasse 34b

60325 Frankfurt

Germany

London +44 (0)20 3077 5700

280 High Holborn

London, WC1V 7EE

United Kingdom

New York +1 646 653 7026

1185 Avenue of the Americas

3rd Floor, New York, NY 10036

United States of America

Sydney +61 (0)2 8249 8342

Level 4, Office 1205

95 Pitt Street, Sydney

NSW 2000, Australia

Share this with friends and colleagues