Møre Boligkreditt AS. Investor Presentation December Ole Kjerstad. Managing director

Transcription

1 Møre Boligkreditt AS Investor Presentation December 2017 Ole Kjerstad Managing director

2 Summary SPAREBANKEN MØRE 8th largest Norwegian bank - Headquartered in the city of Ålesund Total assets of NOK 65.7 billion Close to 70% of lending to retail customers Strong capitalization, CET1 of 14.5% and Leverage ratio of 8.5% Rating A2 (stable outlook) by Moody s MØRE BOLIGKREDITT AS Wholly owned subsidiary of Sparebanken Møre The bank s most important source of long term funding Outstanding bond volume of NOK 18.7 billion Cover pool consists of 100% Norwegian prime residential mortgages EMTCN programme listed on London Stock Exchange and Oslo Børs All Covered Bonds rated Aaa by Moody s MØRE OG ROMSDAL COUNTY NORWAY Population in the county 266,274 Fisheries, tourism, maritime- and oil related industries are important Accounts for 1/3 of Norwegian food export, mainly fish and fishery products Registered unemployment 2.5% in October 2017 Below average national housing prices Solid GDP growth for mainland Norway of 0.6% in Q3/17 Large government budget surplus and strong household sector Ability and willingness for a more expansive monetary & fiscal policy Record low key policy rate of 0.5% Registered unemployment of 2.4% in October

3 Møre og Romsdal County Sparebanken Møre s main market of operation Møre og Romsdal county Located in mid-western part of Norway Population in the county of 266,274, a growth of 0.4% in ,100 square km, mostly coastal area Fisheries, tourism, maritime- and oil related industry are important sectors in the county of Møre og Romsdal, but close to 2/3 of the workforce is employed in the public and private service sector The export of food from Møre og Romsdal county represents 1/3 of total export of food from Norway, mainly fish and fishery products Registered unemployment of 2.5% in October 2017, down from 3.0% in October 2016 Employment distribution by sector % of total employment 43 6 Møre og Romsdal Norway Primary Industrials Building / construction Private services 36 Public services Møre og Romsdal County Outlook Moderate production growth, most sectors are doing well, whereas oil service sector is yet to recover: Higher exports from traditional sectors (fisheries) Increased activity in the public sector and within building and construction Further decline in oil investments and reduced production in this sector Continued restructuring in the labour market Unemployment is decreasing Source: Statistics Norway, Employment by sector

4 Møre og Romsdal County Economy Fisheries, tourism and maritime industry some key drivers Norway's top food exporting county Fisheries are a natural hedge to the downturn in oil service Tourism is an important sector The relatively weak Norwegian krone has contributed positively to tourism Maritime areas rich in natural resources Maritime industry is more than just oil and gas shipyards shifting their focus Norway is the world s second largest exporter of fish and fish products. The fishing industry is the second largest export sector in Norway after oil and gas. Ålesund is Norway's fisheries capital, and one of the world's largest export harbours for stockfish. Norway exported seafood at a record value of NOK 77.6 billion in the first 10 months of 2017, which is NOK 5 billion, more than in the same period last year. The most important consumer markets for Norwegian seafood were France, Germany and UK in The UNESCO-protected Geiranger-fjord had 183 cruise calls in 2017, and more than 200 calls already booked for the 2018 season. The city of Ålesund is often referred to as the gateway to the fjords, and known for its city centre architecture in Art Nouveau style. Despite the downturn, oil and gas activity is still important. The gas from Ormen Lange runs in a pipeline to Nyhamna in Møre og Romsdal, and from there on to Easington UK. The annual capacity of the pipeline equates to some 20 % of Britain's peak gas demand. The region is home to several ship owning companies and shipyards, and a large number of vessels are designed by local ship-design companies. Shipyards are shifting from building oil service vessels to fishing boats, livefish carriers, expedition vessels and ferries. 4

5 Norwegian Housing Market Key Characteristics 9 out of 10 Norwegian households choose floating rate mortgages Home ownership Among the highest in the world around 80% of households own their own home Limited buy-to-let market LTV shall not exceed 85% in general, and not exceed 60% for second homes in Oslo Norwegian FSA mortgage lending requirements Min. amortization of 2.5% per year or max. 30 year repayment if LTV exceeds 60% Debt-service ability should be stressed for a 5% increase in customer interest rate Gross household debt-to-income ratio shall be below 5 Banks have the opportunity to waive regulations by 10%, but only 8% in Oslo Personal Liability Borrowers are personally liable for their debt also after foreclosure / forced sale Transparent and reliable information about borrowers available to the lenders More than 95% of all mortgage lending is granted by banks / mortgage companies Mortgage lending The interest rate on floating rate mortgages is individually set by the bank, and can be increased by the bank with a six weeks notice Typical residential mortgage maturity is years Social benefits According to OECD, Norway has the best unemployment benefits On average ~60% of previous salary paid as benefit for min 104 weeks All interest expenses are tax deductible at the capital gains tax rate (24%) Tax incentives Property is given preferential treatment when calculating wealth tax Capital gain on dwellings is tax free under certain circumstances 5

6 NOK 1000 per sqm Differences in house prices - development in average house prices October 2003 October Oslo Norway Stavanger Ålesund Møre & Romsdal The county of Møre og Romsdal has experienced lower growth in average house price per square meter than Norway as a whole The average square meter price in Oslo is down 4.8 % in 2017, and small apartments in Oslo is down 14.2 per cent by October 2017 Key information (pre-owned dwellings) Norway County of Møre & Romsdal City of Ålesund City of Stavanger City of Oslo Price development last 12 months +0.7 % +0.2 % -0.6 % +0.9 % -2.8 % Price per square meter (NOK) 39,898 24,544 30,737 38,304 68,618 Average days on market (DOM) sold units in August days 66 days 51 days 59 days 31 days Price median dwelling (NOK) 3,050,000 2,400,000 2,620,000 3,206,000 3,900,000 Source: Eiendomsverdi AS (Price index October 2017) 6

7 Q1-17 Q2-17 Q Differences in the Norwegian housing market Price development different dwellings Part of dwellings which are apartments - Norway- price per square meter NOK In per cent of total dwellings 50 Apartment 73, Semidetached Detached 10,0 24,0 25,0 0 Møre og Romsdal Norway Ålesund Oslo Apartment prices in Norway have shown stronger growth than other housing types We see differences in price development and number of days on market also between municipalities in the county of Møre og Romsdal In the county of Møre og Romsdal detached and semi-detached housing are more common In % of total cover pool loans, Ålesund is the single largest municipality representing 20% of cover pool lending In the cover pool, 3 out of 4 mortgages are secured by detached and semi-detached houses Source: Eiendomsverdi AS (Price index August 2017) / Statistic Norway (Occupied dwellings by type of building 2016) 7

8 Sparebanken Møre Group Background Independent savings bank with extensive history MORE THAN 170 YEARS OF HISTORY Sparebanken Møre was established in 1985 as a result of mergers between local saving banks in the county of Møre og Romsdal, the oldest established in A number of savings banks have also merged with Sparebanken Møre since then, and the Bank is currently the eight largest Norwegian bank. INDEPENDENT REGIONAL SAVINGS BANK Sparebanken Møre is a wholly independent savings bank with focus on traditional core banking. Sparebanken Møre was the first savings bank to be listed on Oslo Stock Exchange in 1989 with Equity Certificates (EC), offering good return for our EC holders. 8

9 Sparebanken Møre Market leader in the county of Møre og Romsdal 28 BRANCHES IN MØRE OG ROMSDAL 363 FTE YEARS 66 BILLION NOK IN TOTAL ASSETS 9

10 Sparebanken Møre Group Deposits and Net Lending Deposits NOK billion and % y/y Net lending NOK billion and % y/y 46,2 48,9 51,3 52,7 56,5 28,1 28,4 29,4 32,6 33,1 10,8% 9,1% 3,6% 1,1% 3,5% 2,3% 6,2% 5,7% 4,9% 2,7% Q Q3-17 Growth in deposits 2.3% the last 12 months High deposit to loan ratio of 58.6% Lending increased by 9.1% the last 12 months 10

11 Sparebanken Møre Group Annual Lending Strong growth in lending Lending to the retail market NOK billion and % y/y Lending to the corporate market NOK billion and % y/y 30,5 32,2 34,8 37,1 39,2 10,1% 5,9% 8,0% 6,6% 7,8% 15,9 16,6 16,5 15,7 5,2% 17,4 12,3% -0,8% -0,7% -4,8% Q Q3-17 Retail lending has increased by 7.8% the last 12 months Lending to the retail market amounts to 69.1% of total lending Corporate lending has increased by 12.3% the last 12 months Corporate lending in Q3 was negative with 1.6% Lending to the corporate market amounts to 30.9% of total lending 11

12 Sparebanken Møre Group Lending by Sector Well diversified loan book - more than 95 % of retail loan-book is mortgage Other 10,3% Loan to value mortgages Commercial real estate 11,4% 58,0% Service sector 3,7% Oil service / Offshore 1,4% Fisheries 4,1% Retail 69,1% 38,2% 2,4% 1,4% 0-60 % % % > 100 % Other: Other industry 1.7 % Financial services 2.3 % Building and construction 1.1 % Ship yards 1.3 % Retail/wholesale trade 1.1 % Agriculture 0.7 % Fishing industry 1.5 % Furniture 0.1 % Other 0.6 % The bank complies with Norwegian FSA s mortgage lending requirements 96.2% of mortgage-backed loans to retail customers are within 85% of value 12

13 Sparebanken Møre Group Oil & Offshore Exposure Low direct exposure towards the oil service sector Oil service sector/offshore Lending in % of total Loan-book Exposure included guarantees Oil service exposure distribution in NOK million 1,4 % Anchor handling tug supply vessels 258 Multi purpose vessels 50 Plattform supply vessels 777 Seismic vessels 661 (NOK million) Loans Guarantees Total Exposure Impairments Individual Collective Total Percentage of EAD Low risk (A-C) Medium risk (D-G) , % High risk (H-M) % Impaired commitments % Total , % 13

14 Low level of losses Losses on loans and guarantees Losses on loans and guarantees - NOK million - % of Average Assets ,10 0, ,04 0, , Q3-16 Q , Q3-16 Q

15 Low portion of NPL s Commitments with impairment and loans > 3 months in default Non performing loans - In NOK million Non performing loans - In per cent of total loans 476 3, , ,80 1,10 0,51 0,67 0,32 1,01 0,99 0,45 0,28 0,20 0,15 0,15 0, Q Q3-17 Corporate Retail Corporate Retail Total 15

16 Quarterly Net Interest Income Positive developement in NII Net Interest Income NOK million (quarterly) Net Interest Income % of Average Assets ,77 1,79 1,69 1,71 1,72 Q3-16 Q4-16 Q1-17 Q2-17 Q3-17 Q3-16 Q4-16 Q1-17 Q2-17 Q

17 Sparebanken Møre Group Efficiency Long history of efficiency Cost/Income ratio Internal C/I target of 45% Total assets and FTE years Total assets in NOK billion vs FTE year 61,6 60,1 56,3 54,6 65,7 45,7% 40,1% 43,0% 43,0% 44,9% Q Q

18 Sparebanken Møre Group - Results according to plan Result after taxation Return on Equity - NOK million - In per cent (ROE) , ,6 10,7 11,6 12,5 10, Q3-16 Q Q3-16 Q Non-recurring effect from the sale of shares in Nets, NOK 94 million pre-tax Non-recurring effect from the sale of shares in VISA, NOK 38 million pre-tax 18

19 Sparebanken Møre Group Profit sharing 2016 Strong committment to the local community Result after tax MNOK 595 (parent bank) Savings bank Fund portion of result: MNOK 300 Equity Certificate (EC) holders: MNOK 295 MNOK 141 in Community dividend MNOK 159 to Savings bank fund - Strenghtens solidity MNOK 139 in cash dividend to Equity certificate holders MNOK 157 to Equalization fund - Strenghtens solidity Normalized dividend payout ratio going forward is indicated to be around 50% 51 per cent of the 2016 results will be withheld to strenghten solidity. 19

20 Sparebanken Møre Group - Capital and leverage ratio (LR) above regulatory requirements Core Capital in Sparebanken Møre Minimum CET1 requirements - Per cent of risk weighted assets - Per cent of risk weighted assets 15,5 % 3,0 % 12,5 % CET1 AT1 LR 16,6 % 17,0 % 17,1 % 14,4 % 2,5 % 2,4 % 2,6 % 2,4 % 14,1 % 14,6 % 14,5 % 12,0 % LR; 8,5 % Management buffer Pillar 2 requirement Countercyclical buffer 13,8 % 0,5 % 1,8 % 1,5 % 10,0 % Core Tier1 LR; 5,0 % Q3-17 Sparebanken Møre capital targets are: CET1: minimum 13.8 % Core Capital: minimum 15.3 % Total Capital: minimum 17.3 % Q3-17 The Group capital will be in line with the regulatory capital escalation plan Capital is calculated according to the IRB Foundation Approach for corporate commitments, IRB Approach for the retail market By third quarter end Total Capital was 19,1 % 20

21 NOK million Sparebanken Møre Group Funding Deposits are the most important source of funding Deposits and market funding NOK million Covered Bonds; Good access to the market Total market funding ended just above NOK 25.4 billion by quarter end approximately 85 per cent with remaining maturity of more than one year Senior Bonds: Weighted average maturity of 2.28 years (Norwegian FSA defined key figure) Covered Bonds issued through Møre Boligkreditt AS: Weighted average maturity of 3.72 years (Norwegian FSA defined key figure) By quarter end six out of total ten Møre Boligkreditt AS bond loans qualify for Level 2A liquidity in LCR Deposits; Other funding; 226 Senior Bonds; Subordinat ed Capital; 700 Outstanding covered redemption profile EUR (NOK equivalent) NOK 21

22 MØRE BOLIGKREDITT Møre Boligkreditt

23 Møre Boligkreditt AS Organisation and Regulation Møre Boligkreditt AS is wholly owned by Sparebanken Møre, established in October 2008, and received its license from the Norwegian FSA 6 th of November 2008 The first transaction between Sparebanken Møre and Møre Boligkreditt AS took place 9 th of March 2009 Sparebanken Møre is Møre Boligkreditt AS only source for transferring mortgages to the Cover Pool, and Sparebanken Møre's most important source of long term market funding A Revolving Credit Facility in Sparebanken Møre is covering payment obligations for the next rolling 12 months Covered bonds issues with a fixed rate or in other currencies than NOK are swapped to 3mNibor by approved counterparties Møre Boligkreditt AS has entered into an Transfer and Service Agreement (TSA) and an Internal pricing agreement with Sparebanken Møre, and outsourced a number of services connected into the management of the portfolio General meeting The Board of Directors Managing director External auditor Internal auditor 23

24 Møre Boligkreditt AS Programme Set-up Programme set-up The following chart illustrates the organizational framwork behind, and the roles of the parties involved in the issuance of Covered Bonds in Møre Boligkreditt AS. Norwegian Financial Supervisory Authority Report Independent Inspector Supervision Sparebanken Møre Møre Boligkreditt AS Covered Bondholder Origination Servicing Supervision Revolving Credit Facility Pricing Transfer of loans Borrower notification regarding loan transfer Cover pool checks Interest and currency swaps Interest and principal Proceeds from issuance Borrowers Swap Counterparty The revolving credit facility in Sparebanken Møre secures Møre Boligkreditt AS payment obligations to bondholders for the next rolling 12 months 24

25 Møre Boligkreditt AS - Programme Set-up Credit process and selection criterias Loan approval according to: Loan approval Credit policy and manuals Internal processes and standardised routines Sparebanken Møre Internal scoring models Møre Boligkreditt AS According to: Transfer and Servicing Agreement (TSA) Acquire loans Loan management Acquisition of Household mortgages: Primary floating interest mortgages Minimum remaining duration of 2 years Acquire loans only when debtor is internally scored with a Probability of Default (PD) of 0-2.5% Re-transfer of loans Debtors with loans in default for more than 30 days or with write-downs are excluded from the transfer of loans 25

26 Mortgage Lending in Sparebanken Møre Loan approvals are done by parent bank 1- Ability to re-pay - Credit scoring models applied for applications - Norwegian FSA mortgage lending requirements 2- Willingness to re-pay - Customers in- and from county of Møre og Romsdal - Credit history factored into assessment - Monthly scoring models produced 3- Collateral - Norwegian FSA mortgage lending requirements - Valuation accepted: Selling price / appraiser / AVM 26

27 Møre Boligkreditt AS Cover Pool Eligibility Criteria Origination Mortgage loans solely originated by Sparebanken Møre Loan-by-loan origination Customer criteria Norwegian residents (Retail and self-employed individuals) Cooperative housing associations Credit criteria Probability of default max 2.5% Not in arrears Not delinquent above 30 days, and with no customer write downs Collateral criteria LTV 75% at time of origination / Flexible loans LTV 60% Recent valuation, within 6 months from time of origination Quarterly valuation by independent AVM provider, documented Property type Residential mortgages Cooperative housing residential mortgages Types of products Principal repayment loans Revolving credits (flexible loans) Fixed and floating interest rate loans (Currently all loans are floating rate loans) 27

28 Møre Boligkreditt AS Cover Pool Cut Type of collateral 100% residential properties Number of loans 16,240 Types of mortgages (based on loan balance) Fixed and floating rate loans 81% Repayment Loans 19% Flexible Loans All loans are currently floating rate Average loan balance (NOK 1,000) 1,282 (~EUR 135k) WA indexed LTV 55.7% (Based on Loan-balance) (49.9% WA ind. LTV in Oslo) 56.7% (Based on Loan-limit) WA remaining terms (months) 207 WA seasoning (months) 39 Loans in default (90 days past due) 0% in default or with write-downs Eligible value of the loan-portfolio (mnok) 20,474 (~EUR 2,155m) Supplementary assets (mnok) 614 (~EUR 65m) Cover pool (mnok) 21,088 (~EUR 2,220m) Outstanding covered bonds (mnok) 18,692 (~EUR 1,968m) Over-Collateralisation (%) 12.8% (reported) 2.5% (Moody s Aaa-target) 2.0% (Legislation / Committed) 28

29 7,0% 2,6% 1,1% 1,4% 1,2% 0,7% 0,2% 0,2% 0,1% 85,5% 7,3% 1,3% 1,4% 37,5% 52,5% Møre Boligkreditt AS Portfolio and LTV-distribution Cut-off date 30/09/2017 Loan distribution by county In % of loans in cover pool Loan-to-value Loan part portion and whole loan 3,2% 1,7% 1,1% 2,8% Møre og Romsdal Oslo 92,8% Loan portion in LTV bucket Max LTV 4,6% Akershus 9,3% 77,4% Hordaland Sør Trøndelag Rogaland 5,6% 0,8% 0,2% 0,2% Others < 60 % % % % > 100 % Risk category distribution Loan distribution in internal risk categories Stressed fall in house prices Fall in houseprices Eligible mortgages LTV Supplement Assets Over collateralisation (NOK mill) (NOK mill) Current 20, % -10% 19, % -20% 19, % -30% 17, % A B C D E F G H I J Probability of default % 29

30 >10y <10y <5Y <1y Møre Boligkreditt AS Outstanding Covered Bonds Issue date Currency Size Coupon Issue Tenor Maturity* LCR eligible 21/08/2012 NOK NOK 2.5bn Nibor 3m+65 6y 06/09/2018 2A 23/04/2013 NOK NOK 2.5bn Nibor 3m+47 6y 10/05/2019 2A 19/11/2013 NOK NOK 2.5bn Nibor 3m y 16/01/2020 2A 11/09/2014 NOK NOK 3.0bn Nibor 3m+24 6y 23/09/2020 2A 15/10/2013 EUR EUR 30m Euribor 6m+20 7y 22/10/ /10/2016 NOK NOK 3.0bn Nibor 3m+58 5y 04/11/2021 2A 26/01/2015 NOK NOK 1bn 1.500% 7y 10/02/ /06/2017 EUR EUR 250m 0.125% 5Y 07/06/2022 2A 29/09/2010 NOK NOK 1.05bn 4.750% 15y 29/09/ /08/2013 EUR EUR 25m 2.810% 15y 04/09/ * All issues by Møre Boligkreditt AS have an option of 12 month Soft-Call, or 12 month extendable maturity 30

31 Covered Bonds Issued Under EMTCN Programme 31

32 ECBC CB Label and CRD-Requirement Compliant EU Regulation 575/2013 CRR Article 129 Møre Boligkreditt AS confirms that covered bonds issued by Møre Boligkreditt AS are compliant with the CRD-requirement set forth in the Eurosystem guidelines. Møre Boligkreditt AS confirms that information required in Regulation (EU) No 575/2013 (CRR) Article 129 (7) is made available to investors in accordance with Article 129 (7b). Covered bonds issued by Møre Boligkreditt AS are eligble for preferential treatment set out in CRR Article 129 (4) The Covered Bond Programme of Møre Boligkreditt AS complies with the European Covered Bond Council s (ECBC) Covered Bond Label Read more about ECBC Covered Bond Label at 32

33 Ratings Sparebanken Møre rated A2, Boligkreditt Covered Bond Programme Aaa Ratings Sparebanken Møre Last published Credit Opinion: - Outlook: - Baseline Credit Assessment (BCA): - Counterparty Risk Assessment: - Bank Deposits: Møre Boligkreditt AS Covered Bond Programme A2 4 July 2017 Stable Baa1 A1 A2/P-1 Aaa Rating highlights Sparebanken More's BCA is supported by its Very Strong- Macro Profile Sizeable capital buffers offering protection against unforeseen losses The stable outlook on the bank's long-term deposit and issuer ratings reflects our view that the bank's financials will remain broadly unchanged over the next months. Last published Performance Overview: - Timely Payment Indicator (TPI): - TPI Leeway: - OC level consistant with current rating: - Collateral Score: 4 August 2017 High 4 notch(es) 2.5 % 5.0 % 33

34 Møre Boligkreditt AS Contact Details Ole Kjerstad Managing director, Møre Boligkreditt AS Telephone: website: Runar Sandanger EVP, Market and Treasury division, Sparebanken Møre Telephone: website: Ove Ness Head of Treasury, Sparebanken Møre Telephone: Mobile:

35 Disclaimer This presentation has been prepared solely for promotion purposes of Møre Boligkreditt AS. The presentation is intended as general information and should not be construed as an offer to sell or issue financial instruments. The presentation shall not be reproduced, redistributed, in whole or in part, without the consent of Møre Boligkreditt AS. Møre Boligkreditt AS assumes no liability for any direct or indirect losses or expenses arising from an understanding of and / or use of the presentation This presentation does not constitute or form part of and should not be construed as, an offer to sell or issue or the solicitation of an offer to buy or acquire securities of Møre Boligkreditt AS (the Company ), in any jurisdiction or an inducement to enter into investment activity. No part of this presentation, nor the fact of its distribution, should form the basis of, or be relied on in connection with, any contract or commitment or investment decision whatsoever. If any such offer or invitation is made, it will be done so pursuant to separate and distinct documentation in the form of a prospectus, offering circular or other equivalent document (a "prospectus") and any decision to purchase or subscribe for any securities pursuant to such offer or invitation should be made solely on the basis of such prospectus and not these materials. This presentation has been prepared solely for use in connection with the presentation of the Company. The information contained in this document is strictly confidential and is being provided to you solely for your information and cannot be distributed to any other person or published, in whole or in part, for any purpose. It may not be reproduced, redistributed, passed on or published, in whole or in part, to any other person for any purpose. Failure to comply with this and the following restrictions may constitute a violation of applicable securities laws. No representation, warranty or undertaking, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or the opinions contained herein. None of the Company or any of their respective affiliates, advisors or representatives shall have any liability whatsoever (in negligence or otherwise) for any loss howsoever arising from any use of this presentation or its contents or otherwise arising in connection with the presentation. These materials are not intended for distribution to, or use by any person or entity in any jurisdiction or country where such distribution or use would be contrary to local law or regulation. In particular, these materials (a) are not intended for distribution and may not be distributed in the United States or to U.S. persons (as defined in Regulation S) under the United States Securities Act of 1933, as amended and (b) are for distribution in the United Kingdom only to (i) investment professionals falling within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the Order ) or (ii) persons falling within Article 49(2)(a) to (d) ( high net worth companies, unincorporated associations etc ) of the Order. Investors may get back less than they invested. The Company gives no assurance that any favourable scenarios described are likely to happen, that it is possible to trade on the terms described herein or that any potential returns illustrated can be achieved. This document offers no investment, financial, legal, tax or any other type of advice to, and the Company has no fiduciary duties towards, any recipients and therefore any such determination should involve, inter alia, an assessment of the legal, tax, accounting, regulatory, financial, credit and other related aspects of the securities or such transaction. The Company makes no representation nor gives any warranty as to the results to be obtained from any investment, strategy or transaction, nor as to whether any strategy, security or transaction discussed herein may be suitable for recipients financial needs, circumstances or requirements. Recipients must make their own assessment of such strategies, securities and/or potential transactions detailed herein, using such professional advisors as they may require. No liability is accepted for any direct or consequential losses arising from any action taken in connection with or reliance on the information contained in this document even where advised of the possibility of such losses. 35