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CMS reimbursement obtained

Pacific Edge 20 July 2020 Update
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Pacific Edge

CMS reimbursement obtained

Financial update

Healthcare equipment
& services

20 July 2020

Price

NZ$0.58

Market cap

NZ$400m

NZ$1.56/US$

Net cash (NZ$m) at 31 March 2020

14.8

Shares in issue

689.7m

Free float

91.6%

Code

PEB

Primary exchange

NZX

Secondary exchange

N/A

Share price performance

%

1m

3m

12m

Abs

138.3

413.8

199.0

Rel (local)

133.6

379.5

183.1

52-week high/low

NZ$0.60

NZ$0.07

Business description

Pacific Edge develops and sells a portfolio of molecular diagnostic tests based on biomarkers for the early detection and management of cancer. Tests utilising its Cxbladder technology for detecting and monitoring bladder cancer are sold in the US, New Zealand, Australia and Singapore.

Next events

Kaiser Permanente commercial launch

CY20

Additional guideline inclusions

CY20

Analysts

Maxim Jacobs

+1 646 653 7027

Wiktoria O’Hare

+1 646 653 7028

Pacific Edge is a research client of Edison Investment Research Limited

Pacific Edge announced that it has successfully gained inclusion into a local coverage determination (LCD) enabling reimbursement at US$760 per test from the US Centers for Medicare and Medicaid Services (CMS). This reimbursement decision covers the Cxbladder Detect and Cxbladder Monitor products that currently account for 93% of the total laboratory throughput in the US for Cxbladder products. This is a transformative milestone for Pacific Edge as it should lead to greater usage of Cxbladder (both from CMS and private payers) as well as payment on tests previously performed. As a reminder, 21,789 Cxbladder tests were performed on CMS patients as of 31 March 2020, accounting for 43% of US commercial tests.

Year end

Revenue (NZ$m)

PBT*
(NZ$m)

EPS*
(c)

DPS
(c)

P/E
(x)

Yield
(%)

03/19

4.8

(17.8)

(3.5)

0.0

N/A

N/A

03/20

5.0

(18.8)

(3.2)

0.0

N/A

N/A

03/21e

20.2

(4.6)

(0.6)

0.0

N/A

N/A

03/22e

44.1

17.4

2.3

0.0

25.2

N/A

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

Kaiser Permanente signs on

Pacific Edge recently announced that Kaiser Permanente, one of the largest non-profit health providers in the US, has reached an agreement with the company on the commercial use of Cxbladder by its urologists. Kaiser Permanente has more than 12 million members, operates 39 hospitals and employs 23,000 physicians, so this commercial agreement is a major milestone for Pacific Edge, which we expect should provide a meaningful increase in revenues.

Cxbladder sales increased 14% in FY20

The company reported an increase in Cxbladder sales of 14% in FY20 to NZ$4.4m with a 7% increase in total laboratory throughput to 16,861 tests. Sales in the rest of the world (primarily Australia, New Zealand and Singapore) were particularly strong and were also up 14% with a 12% increase in total laboratory throughput.

COVID-19 impact in April but already recovering

Due to COVID-19 related restrictions and lockdowns, April total laboratory throughput was about half (51%) of what it was in April 2019. The impact was mitigated in part by an in-home sampling option, as the healthcare industry puts a greater emphasis on telemedicine and other alternatives to in-person care. Due to easing restrictions and the in-home sampling option a recovery has already started.

Valuation: NZ$538m or NZ$0.78 per share

Our DCF-based valuation has been increased from NZ$231m (NZ$0.33/share) to NZ$538m (NZ$0.78/share). This increase is mainly due to markedly increasing our revenue estimates following CMS reimbursement and rolling forward our DCF, and was partially offset by lower net cash. We continue to expect profitability for FY22 and do not forecast any additional financing needs for the company.

Reimbursement is here

Pacific Edge has now completed all three components necessary for CMS reimbursement in the US, namely the attainment of product specific CPT codes, a national price of US$760 per test and inclusion in an LCD. An LCD is a document that includes the coverage decisions of the Medicare Administrative Contractor (MAC) and provides the conditions of the coverage as well as the price, guidance on reimbursement and coding information. This LCD inclusion covers the Cxbladder Detect and Cxbladder Monitor products, which together currently account for 93% of the company’s total laboratory throughput in the US (69% for Cxbladder Detect and 24% for Cxbladder Monitor).

Exhibit 1: Summary of the Cxbladder products

Product name

Function

Status

Notes

Cxbladder Detect

Detects bladder cancer in patients with haematuria.

Commercially available in NZ, Australia and the US since 2013.

Non-invasive laboratory test for the detection of bladder cancer. Adjunct to cystoscopy.

Cxbladder Triage

Segregates patients without bladder cancer.

Commercially available in NZ (2014), Australia and the US (2015).

High sensitivity and high negative predictive value.

Cxbladder Resolve

Classifies tumours as low or high grade.

Launched in New Zealand (2016) with US roll-out expected in late FY21.

Prognostic test with sensitivity and high specificity to patients with high-grade and late-stage disease.

Cxbladder Monitor

Ongoing monitoring to check for recurrence of bladder cancer.

Commercially available in NZ (2015) and the US (2016).

High sensitivity and high negative predictive value to determine patients who should receive follow-up tests.

Source: Pacific Edge

Now that LCD inclusion is attained, reimbursement from CMS (which currently represents approximately 43% of US Cxbladder commercial test volume) should become consistent and timely. Besides this immediate benefit of new tests being covered by CMS, the company will negotiate the payment terms for the 21,789 tests previously billed but not paid (as of 31 March 2020).

In addition, private payers often base their own coverage decisions and reimbursement levels on the coverage listed in an LCD, so the success here is expected to lead to faster growth for the company with other healthcare coverage providers. The company is also seeking a positive shift in guideline inclusion language in bladder cancer which may assist with obtaining additional private reimbursement.

Commercial agreement with Kaiser Permanente

Pacific Edge recently announced that Kaiser Permanente, one of the largest non-profit health providers in the US, has reached an agreement with the company on the commercial use of Cxbladder by its urologists in patients being evaluated for bladder cancer. Kaiser Permanente has more than 12 million members (approximately 3.6% of the US population), operates 39 hospitals and employs 23,000 physicians so this commercial agreement is a major milestone for the company, which we expect should provide a meaningful increase in revenues going forward. To illustrate the size of the opportunity with Kaiser Permanente, EY-Parthenon has previously estimated the size of the addressable market in the US to be US$1.2bn (see Exhibit 2). It is unclear what percentage of tests are performed on Kaiser Permanente members, but if we assume it is 1.8% (half of its proportionate share of the population as a disproportionate number of tests are performed on people covered by CMS), this could be a US$21.6m (NZ$33.4m) per year opportunity for Pacific Edge.

Exhibit 2: Addressable market in the US

Source: Pacific Edge, based on an EY-Parthenon business review of the market

Importantly, Pacific Edge will be utilising in-home sampling to service Kaiser Permanente members, as the ability to do so has become extremely pertinent during the COVID-19 pandemic. Kaiser Permanente has been especially focused on telemedicine/telehealth and has stated that 95% of its adult and family medicine visits in Northern California are now virtual. Going forward, the ability to service patients remotely will be especially important. According to McKinsey, only 11% of people in 2019 conducted telehealth compared to 46% today due to the pandemic. Additionally, 76% of consumers are now interested in using telehealth going forward. Regarding Pacific Edge’s business, the company moved quickly with three public healthcare providers in New Zealand, commencing in-home sampling of Cxbladder in April.

Valuation

Our DCF-based valuation has been increased from NZ$231m (NZ$0.33/share) to NZ$538m (NZ$0.78/share). This uplift is mainly due to markedly increasing our revenue estimates following CMS reimbursement (as well as the Kaiser Permanente commercial agreement). Our peak sales estimate has increased from NZ$164m to NZ$228.5m as we have increased our product adoption estimates across the board (although we continue to estimate limited contribution from the South-East Asia region, which the company believes is a meaningful opportunity long term). Additionally, the valuation has increased due to rolling forward our DCF and was partially offset by lower net cash.

Exhibit 3: Valuation based on DCF

Discounted cash flow (NZ$000)

523,095

Net cash (NZ$000) at 31 March 2020

14,784

Valuation (NZ$000)

537,879

Number of shares (m) as of 31 March 2020

689.7

Value per share (NZ$)

0.78

Source: Edison Investment Research

Financials

Pacific Edge recently published FY20 results with operating revenue growth of 14% from NZ$3.8m in FY19 to NZ$4.4m. The US segment saw operating revenue increase 15% to NZ$3.8m while it increased 14% in the rest of world (primarily Australia, New Zealand and Singapore) to NZ$0.6m. Total laboratory throughput increased 7% globally to 16,861 tests, with a 6% increase in the US and a 12% increase in the rest of the world. The US remains the company’s largest market, accounting for 86% of group operating revenue and 78% of total laboratory throughput in FY20. Operating expenses for FY20 were reported as NZ$24.1m, a 5% increase compared to the prior year. This increase in spending is partially the result of an increase in the number of US sales executives from 11 to 16 over the course of the year. The FY20 operating cash flow (excluding net interest) was negative NZ$15.4m, an improvement over the negative NZ$17.8m level in FY19.

The company also stated that due to COVID-19 related restrictions and lockdowns, total laboratory throughput in April was about half (51%) of what it was the previous April. The impact was mitigated in part by an in-home sampling option as the healthcare industry puts a greater emphasis on telemedicine and other alternatives to in-person care. Due to easing restrictions and the in-home sampling option, a recovery has already started. Additionally, Pacific Edge has been able to reduce costs to offset income reductions, and has received financial support in the form of COVID-19 relief packages from governments in New Zealand, Australia, Singapore and the US.

We are increasing our FY21 revenue estimate from NZ$19.1m to NZ$20.2m, following the recent announcements on CMS reimbursement and the Kaiser Permanente commercial agreement. We consider this estimate to be conservative as we are not including the full value of the backlog payment in FY21 revenues. The size of any backlog payment will be dependent on the success of the company’s negotiations with the CMS. As a reminder, Cxbladder Detect and Cxbladder Monitor accounted for 93% of the company’s total laboratory throughput in the US in FY20. Assuming 93% of the 21,789 CMS tests already performed (as of 31 March 2020) can now be paid for, we calculate a potential backlog payment of US$15.4m (NZ$23.8m), based on a US$760 per test national price.

We are also conservative in our estimates for the contribution from the Kaiser Permanante commercial agreement. We calculate a NZ$33.4m annual opportunity for Pacific Edge with Kaiser Permanente but the pace of the ramp-up is unknown and the benefit to FY21 revenues will only be for a partial year.

We are also introducing our FY22 estimates, which include NZ$44.1m in revenues as well as full year profitability (see Exhibit 4).

Exhibit 4: Financial forecast changes

FY21e

FY22e

Old

New

New

Revenue (NZ$m)

19.1

20.2

44.1

PBT (normalised) (NZ$m)

(5.8)

(4.6)

17.4

EPS (NZ$)

(0.01)

(0.01)

0.02

Source: Edison Investment Research

During FY20, the company raised a total of NZ$20.1m, and had net cash of NZ$14.8m at 31 March 2020. Based on our current estimates, we believe the company will not need to raise additional capital.

Exhibit 5: Financial summary

NZ$'000s

2019

2020

2021e

2022e

Year end 31 March

NZ GAAP

NZ GAAP

NZ GAAP

NZ GAAP

PROFIT & LOSS

Revenue

 

 

4,807

4,954

20,177

44,052

Cost of Sales

(4,594)

(5,181)

(5,699)

(6,269)

Gross Profit

213

(227)

14,478

37,783

EBITDA

 

 

(17,840)

(17,703)

(3,522)

19,243

Operating Profit (before amort. and except.)

 

 

(18,077)

(19,007)

(5,087)

17,365

Intangible Amortisation

(154)

(123)

(148)

(177)

Exceptionals

(4)

(101)

0

0

Operating Profit

(18,235)

(19,231)

(5,235)

17,188

Other

0

0

0

0

Net Interest

323

249

444

0

Profit Before Tax (norm)

 

 

(17,754)

(18,758)

(4,643)

17,365

Profit Before Tax (FRS 3)

 

 

(17,912)

(18,982)

(4,791)

17,188

Tax

(9)

0

0

0

Profit After Tax (norm)

(17,763)

(18,758)

(4,643)

17,365

Profit After Tax (FRS 3)

(17,921)

(18,982)

(4,791)

17,188

Average Number of Shares Outstanding (m)

504.4

581.3

717.1

745.8

EPS - normalised (c)

 

 

(3.5)

(3.2)

(0.6)

2.3

EPS - FRS 3 (c)

 

 

(3.6)

(3.3)

(0.7)

2.3

Dividend per share (c)

0.0

0.0

0.0

0.0

Gross Margin (%)

N/A

N/A

N/A

N/A

EBITDA Margin (%)

N/A

N/A

N/A

N/A

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

N/A

N/A

N/A

N/A

BALANCE SHEET

Fixed Assets

 

 

1,002

2,412

2,254

2,067

Intangible Assets

233

179

100

(8)

Tangible Assets

769

652

573

494

Other

0

1,581

1,581

1,581

Current Assets

 

 

15,564

16,916

14,315

34,116

Stocks

842

796

796

796

Debtors

1,265

642

642

642

Cash

12,847

14,784

12,183

31,984

Other

610

694

694

694

Current Liabilities

 

 

(2,624)

(4,253)

(4,253)

(4,253)

Creditors

(2,572)

(3,270)

(3,270)

(3,270)

Short term borrowings

0

0

0

0

Short term leases

(52)

(983)

(983)

(983)

Other

0

0

0

0

Long Term Liabilities

 

 

(32)

(571)

(571)

(571)

Long term borrowings

0

0

0

0

Long term leases

(32)

(571)

(571)

(571)

Other long term liabilities

0

0

0

0

Net Assets

 

 

13,910

14,504

11,746

31,359

CASH FLOW

Operating Cash Flow

 

 

(17,830)

(15,385)

(2,789)

19,991

Net Interest

323

(65)

444

0

Tax

0

0

0

0

Capex

(156)

(183)

(191)

(191)

Acquisitions/disposals

0

0

0

0

Financing

14,569

20,136

0

0

Dividends

0

0

0

0

Other

(275)

(2,342)

(65)

0

Net Cash Flow

(3,369)

2,161

(2,601)

19,800

Opening net debt/(cash)

 

 

(16,143)

(12,763)

(14,784)

(12,183)

HP finance leases initiated

15

0

0

0

Other

(26)

(140)

0

0

Closing net debt/(cash)

 

 

(12,763)

(14,784)

(12,183)

(31,984)

Source: Company reports, Edison Investment Research

General disclaimer and copyright

This report has been commissioned by Pacific Edge and prepared and issued by Edison, in consideration of a fee payable by Pacific Edge. 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 2020 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

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Frankfurt +49 (0)69 78 8076 960

Schumannstrasse 34b

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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

1,185 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 Pacific Edge and prepared and issued by Edison, in consideration of a fee payable by Pacific Edge. 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 2020 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

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

1,185 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

1,185 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

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