Group Results - 2012 Conference Call Adolfo Bizzocchi March, 18 th - - PowerPoint PPT Presentation

SLIDE 1

Group Results - 2012 Conference Call

Adolfo Bizzocchi March, 18th, 2013

SLIDE 2

2

FY 2012 and 4Q12 Highlights

• Net Interest Income net of non recurrent items, was up 0.8% QoQ thank to growing loans to customers

(+3.6% QoQ) and despite interest rates still under pressure. The FY2012 result presents a similar trend by showing a grow in excess of 1% despite a deteriorated macroeconomic scenario

• Non Interest Income was €144 million in the quarter (+14.4% QoQ), dragged up by high performance
• fees. Anyway, even not considering the most volatile components such as performance fees and

trading, the aggregate grew more than 6% QoQ. As for the Y0Y comparison, Non Interest Income was up 8.7% with a stable trading performance and net commissions that grew by 7.5%

• Operating Costs were up 5.2% QoQ, mainly because of higher provisions on incentives that weighted on

Payroll Costs (+ 5.5% QoQ), but stable (-0.1%) YoY

• Net Adjustments to Loans grew by 71% YoY as a result of the aggravation of the current economic
• recession. Cost of Risk topped 44 bps, much higher than the historical average of 34 bps, but however

far from the peak (62 bps) reached in 2009

• Net profit was remarkably up in the quarter (€31 million; +29.7% QoQ) and in the year (€121.2 million;

+25.5%). Dividend to be proposed to the GSM is €12 cent per share, 20% higher if compared to the one deliberated last year

• Tier 1 was 9.4%, 70 bps higher in comparison with 2011 figure

SLIDE 3

3

Income Statement

4.0 142.5 137.0

• 8.9

38.7 42.5 31.5 29.7 Net profit (net of assets disposal. significant provisions and fiscal allowances*) 23.9

• 42.9

66.8 35.8

• 41.5
• 16.4

88.9

• 8.2

97.1

• 147.0

225.5 244.1 3Q12 31.0

• 17.7

48.7

• 6.0
• 6.6
• 36.3

97.6

• 8.8

106.4

• 154.7

231.1 261.1 4Q12 1.8 897.6 881.3 2.5 223.6 219.5 Operating Income (net of trading and performance fees) 41.6

• 23.2

64.8 16.1

• 5.7
• 22.5

76.9

• 7.7

84.6

• 154.1

238.7 1Q12 29.7

• 58.7
• 27.1

n.a. n.a. 121.3 9.8 7.3 9.6 5.2 7.0 % vs. 3Q12 96.6

• 119.2

215.8

• 7.0
• 15.4
• 52.0

290.2

• 30.5

320.7

• 605.2

925.9 2011 121.2

• 107.0

228.2 46.4

• 63.1
• 89.1

334.0

• 32.7

366.7

• 604.5

971.2 2012 25.5

• 10.2

5.8 n.a. n.a. 71.3 15.1 7.2 14.3

• 0.1

4.9 % a/a 24.7 Profit for the Period

• 23.2

Income Taxes/ Minority Interest 47.9 Profit before Tax 0.5 Extraordinary Income/ Charges

• 9.3

Provisions for Risks and Charges

• 13.9

Net Adjustments to Loans 70.6 Operating Profit

• 8.0

Depreciation and Amortization 78.6 Gross Operating Profit

• 148.7

Operating Costs 227.3 Operating Income 2Q12 € Million

Net Interest Income improvement in the quarter (+7.0% QoQ) enhanced the preservation of the Net Profit level, despite 20 million higher provisions on loan losses, and also considering the non recurrent items related to the Inland Revenues claims as well as non core assets disposals

* IRAP deduction against IRES charge

SLIDE 4

4

Non recurring items impact on Income Statement

• 7.7: total impact on 4Q12 Net profit
• 19.2: related to a settlement signed in

4Q12 with Inland Revenues

• +20.9: IRAP deductibility
• 3.3: sanctions related to a settlement

signed in 4Q12 with Inland Revenues

• 1.2 (-0.3 net of taxes) as provisions for

potential future fiscal claims

• 6.1 (-4.1 net of taxes) for hedge funds

unwinding

• 2.6 (-1.7 net of taxes): interest charge

related to a settlement signed in 4Q12 with Inland Revenues Non recurring items related to assets

• disposal. significant provisions and fiscal

allowances * 31.0

• 17.7
• 6.0
• 6.6

116.6 4Q12 121.2

• 107.0

46.4

• 63.1

468.3 2012

• 21.3 total impact on 2012 Net profit
• 24.9: related to settlements signed in

2012 with Inland Revenues

• +20.9: IRAP deductibility
• +37.6 (27.3 net of taxes) from

custodian business disposal

• +25.9 (25.1 net of taxes) from 50%

disposal of Credemassicurazioni (agreement signed in 2008)**

• +5.8 (5.6 net of taxes) from Banca

Euromobiliare (Suisse) disposal

• 3.3: sanctions related to settlements

signed in 2012 with Inland Revenues

• 8.0 (-5.8 net of taxes) for the

settlement of relevant claim

• 60.7 (-59.8 net of taxes) as provisions

for potential future fiscal claims

• 6.1 (-4.1 net of taxes) for hedge funds

unwinding

• 3.1 (-2.2 net of taxes): interest charge

related to settlements signed in 2012 with Inland Revenues Non recurring items related to assets

• disposal. significant provisions and

fiscal allowances * Net Profit Income Taxes/ Minority Interest Extraordinary Incomes/ Charges Provision for Risks and Charges Net Interest Income € Million

* Inland Revenues fiscal claims and IRAP deduction against IRES charge ** 24.6 from 50% disposal and revaluation of the retained stake and 1.3 from past provisions recovery related to the deal

SLIDE 5

5 0.67% 0.40% 1.27% 0.11% 0.17% 441 380 415 427 335

0.0% 0.2% 0.4% 0.6% 0.8% 1.0% 1.2% 1.4% 4Q11 1Q12 2Q12 3Q12 4Q12

• 100

200 300 400 500 Euribor 1 month BTP vs. Bund 10yrs 2.54 2.43 2.27 2.19 2.02 3.74 3.76 3.55 3.43 3.31 1.20 1.33 1.28 1.25 1.29

0.0 1.0 2.0 3.0 4.0 4Q11 1Q12 2Q12 3Q12 4Q12

%

spread average loan rate average deposit rate

114.6 115.1 118.8 117.8 116.6 1.2 0.5 2.6

90 100 110 120 4Q11 1Q12 2Q12 3Q12 4Q12 NIM (accounting data) Fiscal settlements impact

Net Interest Income (1/2)

Net Interest Income (€ Million) Net Interest Income, especially if considered net of non recurrent components, was in line with the amounts of previous two quarters, also thank to the significant loan growth occurred in the last months of the year and despite the further reduction of interest rates With reference to 4Q11 levels, the steep interest rates descent (-116 bps) caused a progressive reduction in customers’ spread (-52 bps) along with an high BTP/ Bund spread, that improved only in 4Q12

bps

115.8 115.1 118.8 118.3 119.2 (net of extraord.)

Customers’ Spread

(Credem SpA management accounting)

Euribor and BTP/Bund spread evolution

SLIDE 6

6

4,391 4,391 3,373 2,895 2,660

• 1,000

2,000 3,000 4,000 5,000 2010 2011 1H12 9M12 2012

0.96 1.33 1.28 1.25 1.29 1.29 1.77 2.09 2.08 2.10 2.10 2.09

• 0.50

1.00 1.50 2.00 2.50 2011 1Q12 2Q12 3Q12 4Q12 2012 Credem: Average deposit rate Industry: Average deposit rate 4.4 4.3 4.2 4.3 4.5 4.5 4.4 4.3 4.3 4.4 4.2 4.18 3.66 4.99 5.1 5.0 5.1 5.0 5.0 4.9 4.8 4.8 4.8 4.9 4.8 4.84 3.99 3.20 3.00 3.50 4.00 4.50 5.00 5.50 D e c

• 1

D e c

• 1

1 J a n

• 1

2 F e b

• 1

2 M a r

• 1

2 A p r

• 1

2 M a y

• 1

2 J u n

• 1

2 J u l

• 1

2 A u g

• 1

2 S e p

• 1

2 O c t

• 1

2 N

• v
• 1

2 D e c

• 1

2 Credem: Avg. loan rate on corp. (non-financials) short-term loans Industry: Avg. loan rate on corp. (non-financials) short-term loans

Net Interest Income (2/2)

Corporate short term loans re-pricing*..

(Credem SpA management accounting)

BTP portfolio (Banking Group)

• 39%

Duration: 4 years Interest rates decrease was partially counterbalanced by significant re-pricing actions

• n short term loans. As a result of such activity,

the difference between interest rates charged by Credem and by industry passed, on average, from 100bps to 66bps in twelve months. On the

• ther hand, the cost of funding advantage seen

in 2011 was confirmed also in 2012. The exposure to Italian Government Bonds went down by almost 40% YoY ..while preserving a benefit in cost of funding

(Credem SpA management accounting) 100 bps 81 bps 80 bps

* Short term loans (overdrafts and loans up to 1 year) to non financial corporate customers Source: ABI

66 bps

SLIDE 7

7 42.3 23.8 23.6 230.3 170.6 43.3 32.6 26.1 162.6 210.3 0.0 50.0 100.0 150.0 200.0 250.0 Asset Management Fees Banking Fees Trading Insurance Fees Other 2011 2012 47.7 51.7 50.6 50.7 49.1 44.2 42.2 42 42.3 44.1 10.3 3.3 6.1 3.3 13.4 19.2 3.7 18.6 1.8 0.7 28.2 7.9 11.4 7.2 6.1 2.9 15 30 45 60 75 90 105 120 135 150 4Q11 1Q12 2Q12 3Q12 4Q12 € Million Performance Fees Trading Other Banking Fees Insurance Fees Asset Management Fees

Non Interest Income

15,464 3,385 4,515 3,216 4,348 2,466 9M11 15,727 3,993 4,967 2,965 3,802 2,597 9M12 16,215 4,478 5,047 2,944 3,747 2,617 2012 2,506 2,448 Insurance Reserves 14,790 3,415 4,454 3,062 3,859 2011 16,889 3,015 4,898 3,998 4,978 2010 AUM Other & Third Parties’ Products SICAVs Mutual Funds Portfolio Management € Million

114.4 122.4 124.4 101.4 123.6

Non Interest Income: quarterly evolution Non Interest Income: yearly evolution

105.1 104.4 104.8 NII net of trading and performance fees 107.7

Non Interest Income performed well in the quarter thank both to good banking fees (+4.3% QoQ; +4.9% YoY) and asset management fees (+9.5% YoY) In particular, asset management commissions were extremely satisfactory in the quarter, also net of performance fees. This permitted to almost completely offset the negative impact (about €2 million per quarter) due to custodian business disposal

114.5 +9.5% +2.1% +37.6% +10.6% +4.9%

SLIDE 8

8

5,993 5,740 5,544 5,519 5,604 5,200 5,400 5,600 5,800 6,000 2008 2009 2010 2011 2012

418.1 415 187.1 189.5

100 200 300 400 500 600 700

2011 2012 Administrative Costs Personnel Costs

105.5 101.1 101.4 107 48.6 47.6 45.6 47.7

50 100 150 200

1Q12 2Q12 3Q12 4Q12

Operating Costs

Operating Costs: quarterly and yearly evolution

€ Million

154.1 148.7 605.2 604.5

Costs went up in 4Q12, mostly because of incentive plans provisions (Personnel costs +5.5% QoQ), but the YoY comparison shows a substantial stability of the aggregate (-0.1%) After the rationalization occurred in previous years, during 2012 the group went back to increase the number of new hirings

147.0 154.7

Group headcount

SLIDE 9

9

Distribution network

Group distribution model is continuously

• evolving. The
• bjective is to serve

customers throughout different integrated channels While the territorial network is reducing, the group is investing in other networks (i.e. Salary backed loans Agents) and on virtual channels, to make available to every customer the channel that, for the specific occasion, suits better its needs

14.7 23.3 20.3 19.3 On-line transaction (in millions of transaction per year) On line channel FA and Agents Territorial Network 24.1% (17.3%) 31.5% (23.3%) 212 885 18 35 43 563 2010 +2.6 p.p. 31.0% (n.a.) 28.4% (18.6%) On-line banking utilization

• n total current accounts (in

brackets industry average) +2.1 p.p. 37.7% (n.a.) 35.6% (30.8%) On-line banking contracts

• n total current accounts (in

brackets industry average) n.a. 80 Salary backed loans Agents

• 8.8

31 34 Credem Points

• 2.3

42 43 Corporate Centres 279 750 14 557 2012 2.6

• 5.7
• 12.5
• 0.5

% ’YoY 795 Financial Advisers 272 16 560 2011 Creacasa’s Agents Banca Euromobiliare financial stores Branches

Source: ABI

Multi-channel approach

SLIDE 10

10 7,484 7,781 8,114 7,552 8,295 1,941 1,935 2,001 2,039 2,042 5,534 5,845 6,282 6,248 6,241 2,577 3,323 3,324 3,411 3,370

• 4,000

8,000 12,000 16,000 20,000 2009 2010 2011 9M12 2012 ST Loans Leasing Residential Mortgages Other LT Loans

4.4% 2.4%

• 1.1%

7.0% 5.1% 1.2%

• 2.0%

0.0% 2.0% 4.0% 6.0% 8.0% FY10 Growth FY11 Growth FY12 Growth Industry Credem

Thank also to the remarkable loan growth posted in 4Q12 (more than €700 million), market shares have been continuing to grow since 2009 For the third year in a row, the target of growing 2-3 percentage points over the industry average has been achieved Loans to Customers (net of repos with institutional **)

17,536

€ Mil.

18,770 19,721 19,250

Source: ABI Monthly Outlook – February 2013

19,948

Loans to customers (Accounting figure)

17,536 18,884 19,995 20,519 20,643

Market share*

1.012% 1.054% 1.127% 1.161%

Loans to Customers (net of repos with institutional and loans to group’s SPVs)

* “Core” market share: non financial corporate customers. households and small business ** * Net of Loans to Cassa di Compensazione e Garanzia, Monte Titoli and group’s SPVs

1.125%

Loans

SLIDE 11

11

12.7 12.3 9.0 9.2 22.3 23.3 25.1 25.2 23.9 22.7 22.3 22.3 36.7 37.1 37.9 38.2 4.4 4.6 5.7 5.1 20 40 60 80 100 2009 2010 2011 2012 large corporate middle corporate small business retail customers

• thers

67.5% 73.3% 76.8% 77.4% 50% 60% 70% 80% 2009 2010 2011 2012 % of loans to corporate customers in top 4 ratings classes

11

High granularity and loan book quality

The remarkable growth in loans did not hurt the quality of the portfolio Compared to 2009 concentration of loans has been progressively reduced, with a continuous decrease of large Corporate, counterbalanced by growing loans to SMEs Meantime, loans to prime quality corporate clients (belonging to the first 4 rating classes) reached, at the end of 2012, the highest level since 2009

3.0% 2.1% FY12 3.2% 2.2% FY11

Loan book concentration

Top 10 Top 20 FY09 3.4% 4.7% FY10 2.4% 3.3%

Loans per segment Corporate customers credit standing

(Credem SpA management accounting)

SLIDE 12

12

1.28 1.26 1.23 1.20 1.00 1.05 1.10 1.15 1.20 1.25 1.30 2010 2011 9M12 2012 10,809 11,687 13,281 2,308 1,769 1,249

• 2,000

4,000 6,000 8,000 10,000 12,000 14,000 2010 2011 2012 Deposits & Bonds Retail Corporate Deposits

16,592 4,149 879 3,270 13,322

• 256

13,066 2012 15,600 4,355 1,207 3,148 12,452

• 245

12,207 9M12 4,817 1,721 3,096 3,521 1,643 1,878 Bonds

• Institutional
• Retail

15,637 14,608 Direct Deposits & Retail Bonds 12,541 43 493 12,005 2011 12,730 62 1,064 11,604 2010 Direct Deposits Repos CD & other Dep. Sight Deposits € Million

Strong loans growth was balanced by an equally remarkable growth in deposits and retail bonds (+€1 billion in 4Q12; +€2 billion since the end of 2010). As a result, loan to deposit ratio went down accordingly Such trend looks even more virtuous considering that, in the same period, corporate deposits went down by more than €1 billion

€ Mil.

+878

• 539

+1,594

• 521

Loans to Deposit Ratio (Loans to Customers* on Direct Deposits and Retail Bonds)

* Net of loans to Cassa di Compensazione e Garanzia and Monte Titoli

Deposits and Bonds

Direct Deposits & Bonds breakdown by segment

(Credem SpA management accounting)

SLIDE 13

13 312 523 784 1,407 938

• 500

1,000 1,500 2,000 2,500 2010 Issued 2011 Issued 2012 Issued Institutional Retail

Institutional

343 500 5 5 8 15 11 100 200 300 400 500 600 2013 Maturities 2014 Maturities 2015 Maturities 1Q 2Q 3Q 4Q

Retail

1,638 270 761

• 500

1,000 1,500 2,000 2013 Maturities 2014 Maturities 2015 Maturities

Thank to the positive evolution showed by retail deposits, the group could afford to avoid issuing on the institutional market in 2012, while instead remaining keen about issuing bonds and selling time deposits to its retail clientele Should the recent spread BTP-Bund contraction be confirmed in 2013, the Group will be ready to come back to issue on the Covered bond market, with the target of partially exiting from LTRO

Bonds issued and maturities

Bonds Issued Bonds Maturities (up to 2015)

SLIDE 14

14 3.3 4.1 5.4 6.3 2.0 2.4 2.6 2.9 0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 2009 2010 2011 2012 Industry Credem

527.0 305.9 98.2 549.2 305.3 157.7 567.1 329.5 141.7 587.6 370.3 143.5 601.1 383.2 115.7 100 200 300 400 500 600 700 Gross NPLs Gross Watchlist/Restructured Loans Gross Past Due € Million

2011 1Q12 1H12 9M12 2012

2.9

% on Loans (Credem) % on Loans (Industry)

6.3 4.2 0.5 1.3 2.6 1.8 0.5 1.5 5.4 2.7 1.5 0.8 3.7 0.7 5.4 3.9 1.0 2.8 5.7 1.6 0.7

• NPLs and Watchlist Loans keep growing, in

line with a macroeconomic scenario still deteriorating

• Such worsening remains however below

industry average worsening rate, as a confirmation of the better quality of Credem’s portfolio

• During 4Q12 NPLs for an amount of about €21

million (almost written off in full) were sold

2.8 4.0 1.8 1.1 0.7 5.9

Source: ABI; Banca d’Italia

Industry average is 2.2x Credem one

Credit Quality (1/2)

Gross Impaired Loans breakdown Gross NPLs ratio (%)

SLIDE 15

15 2.3 2.7 3.5 3.7 0.8 1.0 1.2 1.3 0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 2009 2010 2011 2012 Industry Credem

Net Impaired Loans followed the same trend of Gross Impaired Loans, with an accentuated dynamic in NPLs, as a result of the recent NPLs disposal (almost written off in full) Comparing Credem’s figures with industry, Credem remains 1/3 lower than average, even if the incidence of home mortgage loans (highly collateralized) is higher than the industry

Source: ABI

Industry average is 2.8x the Credem one

523.4 99.1 5.6 223.2 195.5 2010 714.6 109.7 21.0 315.6 268.4 2012 231.8 139.3 Net NPLs 598.0 94.5 3.9 267.8 2011 466.4 103.5 4.8 218.8 2009 Total Net Impaired Loans Net Past Due Loans Net Restructured Loans Net Watchlist Loans € Million

Credit Quality (2/2)

Net NPLs ratio (%)

SLIDE 16

16

36.3 35.8 35.0 30 32 34 36 38 40 2010 2011 2012 45.1% 49.8% 52.0% 40.0% 50.0% 60.0% 2010 2011 2012 % of collateralized Gross NPLs 57.4 56.0 55.4 45 50 55 60 2010 2011 2012

Coverage and collaterals

NPLs coverage remained well above the industry’s average and substantially stable on 2011 level, despite the disposal of some NPLs, almost totally written off in full, for €21 million The decrease in coverage seen over the last three years results from the growing incidence of collateralized loans. In the triennium, NPLs coverage ratio went down by 2 percentage points while collateralization of NPLs went up by 7 percentage points, accordingly

Source: Banca d’Italia

NPLs’ Coverage ratio (%) Collateralization of impaired loans

(Credem SpA management accounting)

48.0 Industry’s NPLs coverage 48.5

Impaired loans Coverage ratio (%)

SLIDE 17

17

14 20 22 45 44 35 37 27 39 28 27 25 31 27 28 31 20 40 60 1Q11 1H11 9M11 2011 1Q12 1H12 9M12 2012 Cost of risk Cost of risk (net of non-linear components)

21 31 70 7 19 20 35 35 62 34 27 44 10 20 30 40 50 60 70 80 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Cost of Risk (bps)

Cost of Risk

The deterioration of the economic scenario caused a growing cost of risk in the last quarter of the year Net of non recurrent components (performing loans’ reserve adjustment and changing of the regulation on past due loans’s provisioning) posted in 1Q12, the performance was however very good and close to the historical average (34 bps) Cost of Risk: evolution (bps)

Parmalat Crack

SLIDE 18

18

1,207 1,488 303 12,452 2,597 1,865 1,535 272 3,148 5,000 1,945 3,270 2,617 13,322 5,000 879

• 5,000

10,000 15,000 20,000 Bonds - Institutionals Other - Institutionals BEI BCE Deposits & Repos Bonds - Retail Insurance Reserves Equity

9M12 2012

370 6 4,158 2,600 20,519 312 8 2,655 947 20,643 515 4,235

• 7,000

14,000 21,000

• Fin. Assets av.

for trading (banking book)*

• Fin. Assets at

fair value (banking book)*

• Fin. Assets av.

for sale (banking book)*

• Fin. Assets

(insurance companies)* Due from banks Loans to customers

9M12 2012

Assets and Liabilities

Assets (Euro, million)

Institutional Customers Equity

Liabilities (Euro, million) On Liabilities’ side, Deposits & Repos growth is remarkable (about +€900 million), together with Retail Bonds development On Assets’ side, aggregates continued to be fairly stable, except for Due to Banks that showed an amount increasing for €400 million, coherent with the improvement of group’s liquidity in 4Q12

(*) 9M12 figures from Credem Group management accounting

SLIDE 19

19 1,413 1,438 1,457 1,572 1,941 1,881 1,940 2,276

541 547 596 941

500 1,000 1,500 2,000 2,500 2009 2010 2011 2012 € Million Tier I Capital Tier Total Capital Excess capital

Capital Ratios

Coefficienti Patrimoniali Capital Ratios evolution

0,10 0,12 0,10 0,08 0,10 0,12 0,18 0,20 0,20 0,20 0,25 0,35 0,36 0,08 0,50

34,4% 32,9% 42,6% 29,6% 39,2% 37,9% 68,6% 35,3% 50,8% 50,0% 57,1% 49,0% 55,8% 42,4% 40,9%

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Dividend Payout Ratio

Dividend and Payout ratio In the last 3 years Group’s internal capital generation accounted for more than 130 bps, despite almost €2 billion loan growth and a stable dividend policy Tier 1 is all core with no hybrid capital instruments included

8.6% 11.3%

Risk Weighted Assets (€)

8.1% 11.1% 8.7% 11.6% 9.4% 13.6%

16,676,353 17,503,762 16,690,275 16,802,300

SLIDE 20

20

Disclaimer and Contacts

Investor Relations Team Investor Relations Team

Daniele Morlini – Head of IR dmorlini@credem.it +39 0522582785 Paolo Pratissoli ppratissoli@credem.it +39 0522583029

The Financial Manager responsible for preparing the company’s financial reports, Mr. Paolo Tommasini, declares, pursuant to paragraph 2 of Article 154 bis of the Consolidated Law on Finance, that the accounting information contained in this presentation corresponds to the document results, books and accounting records. ***.

This presentation includes certain forward looking statements, projections, objectives and estimates reflecting the current views of the management of the Company with respect to future events. Forward looking statements, projections, objectives, estimates and forecasts are generally identifiable by the use of the words “may,” “will,” “should,” “plan,” “expect,” “anticipate,” “estimate,” “believe,” “intend,” “project,” “goal” or “target” or the negative of these words or other variations on these words or comparable terminology. These forward-looking statements include, but are not limited to, all statements other than statements of historical facts, including, without limitation, those regarding the Company’s future financial position and results of

• perations, strategy, plans, objectives, goals and targets and future developments in the markets where the Company participates or is seeking to
• participate. Due to such uncertainties and risks, readers are cautioned not to place undue reliance on such forward-looking statements as a prediction
• f actual results. The Group’s ability to achieve its projected objectives or results is dependent on many factors which are outside management’s
• control. Actual results may differ materially from (and be more negative than) those projected or implied in the forward-looking statements. Such

forward-looking information involves risks and uncertainties that could significantly affect expected results and is based on certain key assumptions. All forward-looking statements included herein are based on information available to the Company as of the date hereof. The Company undertakes no

• bligation to update publicly or revise any forward-looking statement, whether as a result of new information, future events or otherwise, except as may

be required by applicable law. All subsequent written and oral forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these cautionary statements.