JDC Group — Banking on a strong Q4

JDC Group (SCALE: JDC)

Last close As at 18/05/2024

EUR23.70

−0.10 (−0.42%)

Market capitalisation

EUR324m

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Research: Financials

JDC Group — Banking on a strong Q4

JDC Group (JDC) issued its Q323 report in which its FY23 guidance was adjusted to the lower end of the indicated revenue and EBITDA ranges. This was partly due to the weak economic environment in Germany and partly because JDC may not be able to consolidate Top Ten Group in FY23. Nevertheless, to reach the lower end of the €175–190m revenue guidance, a strong Q4 is needed given the 9M23 realised revenue of €122.9m. However, we believe guidance is realistic given seasonal trends as Q4 is the quarter when clients usually evaluate their insurance portfolios.

Edwin de Jong

Written by

Edwin De Jong

Analyst

JDC Group_resized

Financials

JDC Group

Banking on a strong Q4

Q323 results update

Diversified financials

14 November 2023

Price

€17.80

Market cap

€243m

Net cash (€m) at 30 September 2023

10.7

Shares in issue

13.7m

Free float

51%

Code

JDC

Primary exchange

Deutsche Börse Scale

Secondary exchange

N/A

Share price performance

%

1m

3m

12m

Abs

(1.8)

(5.4)

(5.1)

Rel (local)

(1.8)

(2.0)

(14.7)

52-week high/low

€19.52

€14.8

Business description

JDC Group is a leading German insurance platform, providing advice and financial services for professional intermediaries and banks but also directly for end-customers. JDC’s digital platform, for end-clients and for the administration and processing of insurance products, is also provided as a white-label product.

Next events

Deutsches Eigenkapitalforum

27/28 November 2023

Analyst

Edwin De Jong

+44 (0)20 3077 5700

JDC Group is a research client of Edison Investment Research Limited

JDC Group (JDC) issued its Q323 report in which its FY23 guidance was adjusted to the lower end of the indicated revenue and EBITDA ranges. This was partly due to the weak economic environment in Germany and partly because JDC may not be able to consolidate Top Ten Group in FY23. Nevertheless, to reach the lower end of the €175–190m revenue guidance, a strong Q4 is needed given the 9M23 realised revenue of €122.9m. However, we believe guidance is realistic given seasonal trends as Q4 is the quarter when clients usually evaluate their insurance portfolios.

Year end

Revenue
(€m)

EBITDA
(€m)

EPS*
(€)

DPS
(€)

EV/EBITDA
(x)

P/E
(x)

12/21

146.8

8.3

0.07

0.00

40.8

262.9

12/22

156.1

9.0

0.07

0.00

25.9

267.8

12/23e

175.2

11.5

0.18

0.00

20.9

98.6

12/24e

215.6

15.5

0.39

0.00

15.1

45.1

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

A slower Q3 but a strong Q4 anticipated

JDC’s revenues increased by 10% y-o-y to €38.3m in Q323, an improvement compared to 4.5% in H123. Q3 is the weakest quarter for JDC due to the summer holidays. August was especially weak this year after a relatively strong July. Advisortech revenues (81% of sales) rose by 9.6% to €33.4m, compared to 16.9% growth in Q2. Revenues in Advisory (19% of sales) fell by 7.3% to €7.7m, driven by continued weakness in investment, real estate and construction financing. EBITDA doubled to €1.6m due to better cost control and EBIT was €0.2m, compared to a loss of €0.7m in Q322. The net loss amounted to €0.4m (Q322: loss of €1.1m).

Due to the weak economic environment and because it is unlikely JDC will be able to consolidate Top Ten Investment-Vermittlungs in FY23 (approval pending from the regulator), revenues and earnings are projected to come in at the lower end of the guidance range of revenues of €175–190m and EBITDA of €11.5–13.0m. This is still a challenging target. In order to reach the new guidance JDC needs a very strong Q4 with revenues of at least €52.1m (Q422: €40.3m) and EBITDA of over €4.8m (Q422: €2.8m). The company is confident that it can reach those levels, given regular seasonality and the comparison with a relatively weak Q4 last year. We have adjusted our estimates for 2023 reflecting the new guidance and arrive at €175m revenues and an EBITDA of €11.5m.

Lower 2023 estimates, changes in 2024 estimates

The acquisition pace of the Summitas Gruppe joint venture with Bain Capital Insurance and Great-West Lifeco seems to have picked up. Two brokers have been added earlier this year, one is expected to close in the coming weeks, and two more are expected this year. Given this and the final acquisition of Top Ten Group, we have increased our top-line estimates for 2024. See below for our new estimates.

Changes to estimates

We have made changes to our FY23 and FY24 estimates. For FY23 we are reflecting the company’s guidance towards the lower end of the range for both revenues and EBITDA. Compared to our previous forecasts, our revenue estimate is 3.9% lower and our EBITDA estimate is 5.4% lower.

For FY24 we have included a revenue contribution of €16m from Top Ten Group, which means our revenue forecast for 2024 is 1.5% higher than before. Our EBITDA forecast is 10.7% lower than our previous estimates, mostly because of the lower margins of the Top Ten business. We expect net profit to increase to €2.5m in FY23 and €5.4m in 2024, from €0.9m in 2022.

Over the next few years, we continue to expect increasing growth in the Advisortech segment, driven not only by key clients and the IFA business but also by contributions from the Summitas Gruppe joint venture.

Exhibit 1: Estimate changes

€m

FY22

FY23e old

FY23e new

Change

FY24e old

FY24e new

Change

FY25e

Total revenue

156.1

182.3

175.2

-3.9%

212.4

215.6

1.5%

244.7

EBITDA

9.0

12.2

11.5

-5.4%

17.4

15.5

-10.7%

20.3

EBIT

2.9

5.5

4.9

-11.2%

10.5

8.5

-18.7%

12.9

Pre-tax profit

1.1

3.7

3.1

-16.6%

8.7

6.7

-22.5%

11.1

Net income

0.9

3.0

2.5

-17.7%

6.9

5.4

-21.7%

8.9

EPS (€)

0.07

0.22

0.18

-17.9%

0.51

0.39

-22.7%

0.65

Source: JDC Group financial accounts, Edison Investment Research

Exhibit 2: Financial summary

€m

2021

2022

2023e

2024e

2025e

Year end 31 December

IFRS

IFRS

IFRS

IFRS

IFRS

INCOME STATEMENT

Revenue

 

146.8

156.1

175.2

215.6

244.7

Cost of Sales

(105.1)

(108.3)

(120.3)

(152.9)

(173.5)

Gross Profit

41.7

47.8

54.9

62.6

71.2

EBITDA

 

8.3

9.0

11.5

15.5

20.3

Operating profit (before amort. and excepts.)

497

3.0

2.9

8.5

12.9

Reported operating profit

 

3.0

2.9

4.9

8.5

12.9

Net Interest

 

(1.6)

(1.5)

(1.8)

(1.8)

(1.8)

Joint ventures & associates (post tax)

0.0

(0.3)

0.0

-

-

Profit Before Tax (norm)

1.4

1.1

3.1

6.7

11.1

Profit Before Tax (reported)

1.4

1.1

3.1

6.7

11.1

Reported tax

(0.5)

(0.2)

(0.6)

(1.3)

(2.2)

Profit After Tax (norm)

0.9

0.9

2.5

5.4

8.9

Profit After Tax (reported)

0.9

0.9

2.5

5.4

8.9

Basic average number of shares outstanding (m)

13.7

13.7

13.7

13.7

13.7

Average Number of Shares Outstanding (m)

 

13.1

13.7

13.7

13.7

13.7

EPS (€)

 

0.07

0.07

0.18

0.39

0.65

EPS - normalised (€)

0.07

0.07

0.18

0.39

0.65

DPS (€)

0.00

0.00

0.00

0.00

0.00

Gross Margin (%)

28.4

30.6

31.3

29.1

29.1

EBITDA Margin (%)

5.7

5.7

6.6

7.2

8.3

Normalised Operating Margin (%)

2.0

1.9

2.8

4.0

5.3

BALANCE SHEET

Fixed Assets

 

78.0

74.5

71.5

69.0

66.7

Intangible Assets

66.4

64.1

61.8

59.9

58.2

Tangible Assets

5.6

4.9

4.1

3.5

2.9

Investments & other

6.0

5.6

5.6

5.6

5.6

Current Assets

 

43.7

38.5

46.2

58.8

73.4

Stocks

0.0

0.0

0.0

-

-

Debtors

19.2

17.6

19.8

24.3

27.6

Cash & cash equivalents

21.9

16.7

21.7

28.7

39.2

Other

2.6

4.2

4.7

5.8

6.6

Current Liabilities

 

36.9

32.7

35.0

39.6

43.0

Creditors

23.8

18.1

20.4

25.0

28.4

Tax and social security

0.0

0.0

0.0

-

-

Short term borrowings

1.0

0.0

0.0

0.0

0.0

Other

12.1

14.6

14.6

14.6

14.6

Long Term Liabilities

 

46.0

43.3

43.3

43.3

43.3

Long term borrowings

19.5

19.7

19.7

19.7

19.7

Other long term liabilities

26.5

23.6

23.6

23.6

23.6

Net Assets

 

38.8

37.0

39.4

44.8

53.8

Shareholders' equity

 

38.8

37.0

39.4

44.8

53.8

CASH FLOW

Operating Cash Flow

5.6

7.2

10.9

14.2

18.1

Working capital

9.3

0.4

(0.5)

(1.0)

(0.7)

Net operating cash flow

 

14.9

7.6

10.5

13.2

17.4

Capex

(2.1)

(3.2)

(3.6)

(4.5)

(5.1)

Acquisitions/disposals

(11.0)

0.0

0.0

-

-

Net interest

0.0

(6.4)

(1.8)

(1.8)

(1.8)

Equity financing

10.6

(3.2)

0.0

-

-

Dividends

0.0

0.0

0.0

-

-

Other

(2.2)

0.0

0.0

-

-

Net Cash Flow

10.2

(5.2)

5.0

7.0

10.5

Opening net debt/(cash)

 

(11.6)

(1.4)

3.0

(2.0)

(9.0)

FX

0.0

0.0

0.0

0.0

0.0

Closing net debt/(cash)

 

(1.4)

3.0

(2.0)

(9.0)

(19.5)

Source: JDC Group accounts, Edison Investment Research


General disclaimer and copyright

This report has been commissioned by JDC Group and prepared and issued by Edison, in consideration of a fee payable by JDC Group. Edison Investment Research standard fees are £60,000 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 2023 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.

London │ New York │ Frankfurt

20 Red Lion Street

London, WC1R 4PS

United Kingdom

London │ New York │ Frankfurt

20 Red Lion Street

London, WC1R 4PS

United Kingdom

General disclaimer and copyright

This report has been commissioned by JDC Group and prepared and issued by Edison, in consideration of a fee payable by JDC Group. Edison Investment Research standard fees are £60,000 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 2023 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.

London │ New York │ Frankfurt

20 Red Lion Street

London, WC1R 4PS

United Kingdom

London │ New York │ Frankfurt

20 Red Lion Street

London, WC1R 4PS

United Kingdom

General disclaimer and copyright

This report has been commissioned by JDC Group and prepared and issued by Edison, in consideration of a fee payable by JDC Group. Edison Investment Research standard fees are £60,000 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 2023 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.

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United Kingdom

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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.

London │ New York │ Frankfurt

20 Red Lion Street

London, WC1R 4PS

United Kingdom

London │ New York │ Frankfurt

20 Red Lion Street

London, WC1R 4PS

United Kingdom

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