PRESENTATION OF FINANCIAL RESULTS FOR INVESTORS AND ANALYSTS SEPTEMBER 8 th, 2017

Transcription

1 PRESENTATION OF FINANCIAL RESULTS FOR INVESTORS AND ANALYSTS SEPTEMBER 8 th, 2017

2 AGENDA 1. Summary 2. Key financials and business highlights 3. Appendix

3 2Q 2017 HIGHLIGHTS (1/2) The Polish Financial Supervision Authority approved the "Sustainable Growth Plan for Getin Noble Bank S.A. for years [PPN], on 30 August It is an update of the Restructuring Plan for years Adjustments in terms of the Bank's asset quality and capital investments within the approved PPN. 1 STRATEGY Decreasing cost of funding (deposits cost of 1.89%, 17 bps decrease in H1 17). Current account balance and saving deposits increased by PLN 0.3bn in Q2 17 and PLN 1.1 bnover the last 12 months. 21,4% share in total deposits already. Deleveraging of the scale of operations. Balance sheet total decreased by PLN 3 bnin Q2 17. Loan balance lower by PLN 0.7 bnin Q2 17 and PLN 2.8 bnover the last 12 months as a result of the credit sales optimization and practically no sales of mortgage. Systematically decreasing mortgage loans portfolio: PLN 0.7 bn decrease in Q2 17. Retail banking transformation: Getin Bank ranked second in the "Institution of the Year 2017" organized by the MojeBankowanie.pl portal. Changes in the Bank's sales network. New branch format. 2 CAPITAL Capital adequacy ratios comply with PFSA capital requirements: 15.8% and 12.3% of CAR and CET1 ratios as at the end of June Increase of CAR and CET1 in the last 12 months, by 0.23 p.p. and 0.03 p.p. respectively. 3 LIQUIDITY Strong liquidity position (L/D 86.7%) despite the drop in interest rates on the deposit base. Successfully completed securitization transaction of the car loan receivables (portfolio of PLN 700 m). LCR of 154% at the end of June 2017 (vs. 112% a year earlier). 3

4 2Q 2017 HIGHLIGHTS (2/2) 4 PROFITABILITY Q2 17 net profit of PLN -67.7m (consolidated) and PLN m (stand-alone) determined by the higher assets writeoffs and one-off result on loss of controll recognition over Noble Funds TFI (merger with Open Finance TFI). 5 CORE REVENUES Further growth of NIM to 2.16 p.p. in June 2017 (+24 bps y/y). Decrease in the Group s interest income related to the limiting scale of operations, mainly due to shrinking mortgage loan portfolio. Decreasing cost of funding. The main Bank s deposit rate below WIBOR and below the NBP reference rate. For the first time. The cost of deposits declined by 17 bps in H (vs -46 bps in 2016). Net fee income higher by 4% q/q. 6 COSTS Strict cost regime maintained. Bank s operating costs in Q2 17 amounted to PLN 211.9m and were PLN 42 m lower q/q (impact of the annual contribution to the BGF restructuring fund booked in Q1 17) Bank s C/I ratio of 52,4% vs 58.9% in the banking sector 1. 7 RISK PROVISIONS Credit risk provisions of PLN m in Q2'17; an increase of 19.5% q/q as a result of higher chares on the mortgage portfolio. Increasing coverage ratio (+3.7 p.p. within 12 months). 1 data for the banking sector for six months of

5 KEY FINANCIAL RATIOS INCREASE OF CORE REVENUES AND CAPITAL RATIOS Goal: increase of efficiency Q2 2017; changevs Q PLN m PLN m Net interest income % Interest revenues % Interest expenses % Net fee and commission income % Other revenues x Other operating income x and expenses Credit risk provisions % Other impairment charges x Costs % Costs % (excluding BFG 4 costs) Net loss % CAR 15,8% +0,12 p.p. CET1 12,3% -0,04 p.p. Loans balance 44, % Deposit balance 51, % Balance sheet total 64, % Equity 5, % (attributable to equity of the parent company) ROE -6.3% +1.1 p.p. C/I % -11.3p.p. Costof risk 1,2 1.9% +0.2p.p. Costof funding 3 2.0% 0.0p.p. LCR 154% -20 p.p. (min. 80%) Loans/deposits 86.7% +3.2 p.p ppexcl. BFG costs 1 Stand-alone GNB 2 Result on provision for NIL and other accounts receivable to average loans volume 3 Interest expenses / avg. interest bearing liabilities 5

6 KEY FINANCIAL RATIOS INCREASE OF CORE REVENUES AND CAPITAL RATIOS Goal: increase of efficiency H1 2017; change vs H PLN m Net interest income % Interest revenues 1, % Interest expenses % Net fee and commission income % Other revenues 181,6 +86,3% PLN m Loan balance 44, % Deposit balance 51, % Balance sheet total 64, % Equity 5, % (attributable to equity of the parent company) Other operating income -94,5 3.1x and expenses Credit risk provisions % Other impairment charges x Costs % Costs % (excluding BFG 4 costs) Net loss x CAR 15,8% +0,23 p.p. CET1 12,3% +0,03 p.p. ROE -6.3% -5.7 p.p. C/I 52.4% +9.2p.p. Cost of risk 1.9% +0.8 p.p. Cost of funding 2.0% -0.3 p.p. LCR 154% -42 p.p. (min. 80%) Loans/deposuts 86.7% +0.6 p.p pp excl. BFG costs 6

7 ITEMS WITH A SIGNIFICANT IMPACT ON THE Q2 17 FINANCIAL RESULTS OF THE BANK AND THE GROUP PLN m; gross ITEM [LINE IN THE P&L STATEMENT] BANK CAPITAL GROUP IMPACT ON IMPACT ON ITEM Q2 17 RESULTS Q2 17 RESULTS [LINE IN THE P&L STATEMENT] SETTLEMENT OF LOSS OF CONTROL OVER THE NOBLE FUNDS TFI [result on investments in subsidiaries, associates and joint ventures] IMPAIRMENT LOSS RECOGNISED FOR THE VALUE OF INVESTMENT IN ASSOCIATED COMPANY [impairment losses on financial assets and provisions for off-balance sheet liabilities] SETTLEMENT OF LOSS OF CONTROL OVER THE NOBLE FUNDS TFI [result on investment in subsidiaries, associates and joint ventures] IMPAIRMENT LOSS RECOGNISED FOR THE VALUE OF INVESTMENT IN ASSOCIATED COMAPNY [impairment losses on financial assets and provisions for off-balance sheet liabilities] IMPAIRMENT LOSS RECOGNISED FOR THE VALUE OF INVESTMENT IN SUBSIDIARIES [impairment losses on financial assets and provisions for off-balance sheet liabilities] IMPAIRMENT LOSS RECOGNISED FOR THE LIABILITIES HELD FOR SALE [impairment losses on financial assets and provisions for off-balance sheet liabilities] REAPRISAL OF THE INVESTMENT PROPERTIES VALUE [other operational expenses] 7

8 AGENDA 1. Summary 2. Key financials and business highlights 3. Appendix

9 CAPITAL AND LIQUIDITY RATIOS ABOVE REGULATORY REQUIREMENTS Capital Adequacy Ratio +0,23p.p. +0,03p.p. 15,6% 15,8% 15,37% 12,3% 12,3% level required by FSA 11,90% PLN 2.7bnbalance of the issued subordinated debt as at the end of June PLN 197m of sub debt issued in Q The CAR and CET1 stand-alone ratios at the end of March 2017 were respectively 16.0% and 12.4% (0.4pp and 0.2pp y/y increase respectively). Jun-16 CAR CET1 Jun-17 LCR Loans/deposits One of the lowest ratios in the banking sector 112% 154% minimum level 86,2% 84,2% 88,0% 83,5% 86,7% 80% Jun-16 Jun-17 Jun'16 Sep'16 Dec-16 Mar'17 Jun-17 9

10 CHANGE IN ASSETS STRUCTURE AND REDUCTION OF THE SCALE OF OPERATION Split-up od customer loans(jun-17) Split-up of customer deposits(jun-17) 10,5% 16,0% 10,1% 4,3% Retail term PLN 44.7 bn 64,1% 9,5% Autmotive (car loans and leasing) Retail loans Mortgage loans SME and public sector loans +3.3pp vs Jun pp vs Dec 12 21,4% 2,8% 3,2% 15,4% PLN 51.5 bn 64,2% Retail current Corporate current Public sector current Corporate term Public sector term By Type (in PLN m) Assets Liabilities Customer loans Financial instruments available for sale Amounts due to banks (inlc. CB) Other assets Other liabilities Equity Liabilities to banks Debt securities Customer deposits c Jun' Jun'17 10

11 LOANS: DECREASE OF PORTFOLIO BALANCE AT MAINTAINED SALES STRUCTURE Loans balance (PLN bn) +6.2% -17.2% -8.2% +2.9% 32,94 30,23 9,74 10,34 2,39 1,98 4,89 5,03 corporate loans + leasing car loans mortgage loans retail loans Jun-16 Jun-17 Loan sales (PLN bn) +9.5% -18.7% +23.2% -76.2% +0.5% 0,39 0,43 0,67 0,54 0,25 0,31 0,40 0,41 0,01 0,00 corporate loans leasing car loans mortgage loans retail loans Q2'16 Q2'17 11

12 BALANCE SHEET LOANS SALES MIX Loans (PLN bn) 1 Sales of loans quarterly average (in PLN m) Decreasing business scale mortgage loans 50,3 49,7 49,2 48,1 47,5 46,9 46,7 45,4 44,7 Jun'15 Sep'15 Dec'15 Mar'16 Jun'16 Sep'16 Dec'16 Mar'17 Jun' retail loans car loans + leasing corporate loans Effective actions to reduce the scale of business loan balance on a consolidated basis lower by PLN 2.8 bnthan a year earlier and PLN 5.6 bnlower vs Jun 15. Focus on the strategic business lines. Changing loans balance mix support NIM restoration. Systematic amortization of the mortgage portfolio. PLN 2.7 bnof portfolio decrease over the last 12 months Consolidated figures 12

13 DECREASING BALANCE AND SHARE OF FC LOANS Share of foreign currency loans in the total loan portfolio and CHFPLN exchange rate Swiss Franc loans balance (CHF bn) -2,1 4,00 3,50 3,30 3,10 3,13 3,16 3,08 2,93 3,00 3,00 2,80 2,802,77 2,70 67% 66% 2,50 62% 3,623,63 3,55 3,45 3,51 3,54 3,403,393,43 3,45 3,383,423,42 3,46 4,04 4,07 4,12 1 3,91 3,88 3,94 3,98 3,89 3,95 3,87 0,9 0,8 0,7 5,2 Dec-08 3,1 Jun-17 2,00 1,50 1,00 0,50-57% 54% 51% 52% 47% 46% 43%43% 43% 42% 40%38% FC udział share kurs CHFPLN exchange rate 36% 35%34%33%31% 30%30% 29%29%29% 30%30% 29%29%28% 29% 28% 29% 28% 0,3 27% 0,6 0,5 0,4 0,2 Accelerated depreciation of balances as a result of negative LIBOR reference rate. With a strong liquidity position Bank is well prepared for scenarios such as the events of January 15 th

14 PROFITABILITY AND COST EFFICIENCY Net result (PLN m) Revenues 1 (PLN m) 1,1 GROUP (attributable to equity holders of the parent company) +5.0% +0.1% -67,7-67,7-96,5 350,5 368,2 367,8 368,2 Q Q Q Q Q Q Q Q BANK Costs(PLN m) without BFG costs 9,1-1.3% +3.3% -16.5% +2.9% - 103,8-66,4-103,8 26.6m BFG 214,5 211,9 17.9m BFG 65.2m BFG 253,8 211,9 17.8m BFG 187,8 194,0 188,6 194,0 Q Q Q Q Q Q Q Q Net interest and fee & commission result 14

15 IMPROVEMENT OF THE CORE REVENUES Net interest income (PLN m) Revenues 1 (PLN m) Q Q Q Q Q Q Q Q F&C NII Net fee & commission income(pln m) Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Result Income Expenses Result Income Expenses 1 Net interest and fee & commission result 15

16 REDUCTION Getin Noble Bank OF THE COST OF FINANCING AND INCREASE OF NIM Decreasing cost of deposits (pp) Interest rate of deposit portfolio in GNB 317 bps 3,10 2,90 2,70 2,50 2,30 2,10 1,90 1,70 Interest expenses in H lower by PLN 147 m / 19% vs H in Q lower by PLN 69 m / 19% vs Q Interest rate on Clients deposits decreased by 47 bps in 2016 Still high dynamic in cost of deposits reduction in 2017 (17bps in H1 2017) -128 bps 189 bps 1,50 Dec-14 Feb-15 Apr-15 Jun-15 Aug-15 Oct-15 Dec-15 Feb-16 Apr-16 Jun-16 Aug-16 Oct-16 Dec-16 Feb-17 Apr-17 Jun-17 Bank s net interest margin 1,62% 1,66% 1,70% 1,78% 1,85% 1,92% 1,97% 2,04% 2,05% 2,16% Mar'15 Jun'15 Sep'15 Dec'15 Mar'16 Jun'16 Sep'16 Dec'16 Mar'17 Jun'17 16

17 DECREASE OF COST OF FUNDING. BASE FOR FURTHER PROFIT IMPROVEMENT GNB highly efficient in reducing the cost of funding 1 GNB S Retail Deposit Rates vs NBP reference rates 3,3% 3,1% 2,9% 2,9% 3,3% 2,4% 2,4% 2,3% 2,3% 2,0% 2,0% 2,9% 2,7% 2,6% 2,4% 2,3% 2,3% 2,2% 3,00 2,50 2,00 GNB rate already below WIBOR and NBP reference rate 2,0% 2,0% 1,50 YTD QTD -0.3 pp during the last 12 months 1,00 0,50 NBP rate GNB 3M rate Mar-15 Jun-15 Sep'15 Dec'15 Mar'16 Jun'16 Sep'16 Dec'16 Mar'17 Jun'17 0,00 21,4% 9,3% Dec'12 Mar'13 Jun'13 Sep'13 Dec'13 Mar'14 Jun'14 Sep'14 Dec'14 Mar'15 Jun'15 Sep'15 Dec'15 Mar'16 Jun'16 Sep'16 Dec'16 Mar'17 Jun'17 Mar-15 May-15 Jul-15 Sep-15 Nov-15 Jan-16 Mar-16 May-16 Jul-16 Sep-16 Nov-16 Jan-17 Mar-17 May-17 Jul-17 Deposit portfolio balance (PLN bn) -6,7% Current deposit & saving accounts share in total deposits 55,2 56,5 55,7 56,7 55,1 55,7 53,0 54,4 51,5 Getin UP Strategy - start PLN +6,3 bn Jun-15 Sep'15 Dec'15 Mar'16 Jun'16 Sep'16 Dec'16 Mar'17 Jun'17 1 Interest expense / average interest bearing liabilities 17

18 ANOTHER ASSET SECURITISATION STABLE MID-TERM FUNDING Successful closing of 700 mnpln Auto ABS 500 mn PLN of funding obtained. 2-year revolving period (expected program maturity is 4Q2021). Lowering of funding cost due to participation of European Investment Bank. Bonds rated at Aa3 sf (Moody s) andaaa sf (Scope). Securitisation transactions are significant to liquidity policy of the Group and secure funding on attractive terms. Securitisation programs provide stable mid-term funding at cost and volume highly competitive to unsecured debt. Transactions are rigorously reviewed by legal counsels, auditors and most of all investors. Currently there are two programs in operation: Auto loans ABS from 2017 and Auto leases ABS from 2015 (1,2 bn PLN of funding secured, so far the largest ABS transaction in Poland). All rated senior bonds issued have reached a maximum rating levels reaching country-cap limits. Since the start of ABS programs in the Bank over 5 bn PLN in loans and receivables has been securitised. 18

19 HIGH COST REGIME MAINTAINED Operating expanses (PLN m) % 48.9% 59.3% 51.2% 37.1% 32.3% 52.3% 45.4% 55.7% 48.4% 53.9% 45.2% 63.7% 46.4% 43.1% 39.2% C/I ratio % y/y change 2.1% q/q change Decrease in costs q/q due to full yearly BFG resolution fee of PLN 46.8 m booked in Q Bank s operating costs in Q by PLN 4 m / 2% lowery/y 3-2.2% y/y change -18.2% q/q change Q Q Q Q Q Q Q Q costs 2 costs excl. BFG 3 1 stand-alone, quarterly 2 without the cost of payments to the Banking Guarantee Fund re. bankruptcy of SK Bank in Q and cooperative bank in Nadarzynin Q excluding BFG (Banking Guarantee Fund) 19

20 ASSET QUALITY CREDIT RISK Loan impairment charges and loans balance (in PLN m) 3,4 Cost of credit risk (%) change Corporate loans 2 0.3% 0.9% -0.6 p.p Car loans 2.0% 1.3% 0.7 p.p. Mortgage loans 1.5% 0.8% 0.7 p.p. Retail loans 7.4% 5.1% 2.3 p.p. Loans total 1.9% 1.3% 0.6 p.p Q1'12Q2'12 Q3'12Q4'12 Q1'13Q2'13 Q3'13Q4'13 Q1'14Q2'14 Q3'14Q4'14Q1'15 Q2'15Q3'15 Q4'15Q1'16 Q2'16Q3'16 Q4'16Q1'17 Q2'17 Coverage ratio(%) 5 Increase of coverage ratio 37,4% 35,2% 33,2% 33,1% 34,1% 34,5% 35,6% 35,2% 36,7% 38,2% impairment charges loan portfolio balance Mar'15 Jun'15 Sep'15 Dec'15 Mar'16 Jun'16 Sep'16 Dec'16 Mar'17 Jun'17 Average monthly loan impairmantcharges (PLN ths.) 3, Q 15 2Q 15 3Q 15 4Q 15 1Q 16 2Q 16 3Q 16 4Q 16 1Q 17 2Q 17 TOTAL LOANS ,6 Car loans ,3 Mortgage loans ,8 Retail loans ,2 Corporate loans& other ,3 1 Result on provision for NIL and other accounts receivable to average loans volume; stand-alone GNB 2 Including leasing and others 3 Stand-alone GNB 4 Q and Q figures for the merged banks of Getin Noble Bank and Get Bank 5 Impairment allowances / impaired loans 20

21 ASSET QUALITY CREDIT RISK Retail loans Portion of 30 DPD in repayment of the third instalment (%) Retail loans sale (PLN m) 1,5% 1,6% 1,3% 1,3% 1,4% 1,3% 1,8% 1,2% 1,0% 0,8% 0,7% Sales limitation positively affecting the risk profile Jan'14 May'14 Sep'14 Jan'15 May'15 Sep'15 Jan'16 May'16 Sep'16 Feb'17 Q1'14 Q2'14 Q3'14 Q4'14 Q1'15 Q2'15 Q3'15 Q4'15 Q1'16 Q2'16 Q3'16 Q4'16 Q1'17 Q2 17 Mortgage loans Vintage analysis of mortgage loans (% 90 dpd by year of granting the loan) 2,0% 1,5% 1,0% 0,5% Bank efficiently adjusts procedures of evaluation and acceptance to market conditions and Clients situation. Despite the falling share of the old portfolio 1 loans in the structure of loans there is still high cost of risk associated with these exposures. 0,0% 4M 5M 6M 7M 8M 9M 10M 11M 12M months from granting I-IIIQ loans granted untillq

22 BUSINESS TRANSFORMATION CONT. Sales network new format In the second quarter, the Bank started the process of final implementation of a new format of retail outlets aimed at increasing the efficiency of outlets. To be achieved by enhancing service comfort, new functionalities and new outlets in with higher potential locations. The first new format branch with automatic cash handling located in the Warszawa Wileńska shopping center opened for customers in early June. At the beginning of July, the company also launched The first branch in a new format located on a shopping street launched in the begining of July. Bank invests also in new functionalities - deposit boxes and 24h zones. New equipment in branches provides additional potential for optimizing cash transactions in branches, improving service quality and reducing personnel costs. The next new format branches to be launched in several Polish cities by the end of the year. The most effective existing branches will be modernized. Simultaneously, the existing branch network is being optimized. After pilot, the opening hours optimized, tailored to the customers needs and increased accessibility at the level of individual cities. The process of consolidating the most inefficient branches is progres. Costs reduction expected. 23

23 AGENDA 1. Summary 2. Key financials and business highlights 3. Appendix

24 Appendix 1 / consolidated data KEY FINANCIAL DATA Equity (attributable to equity holders of the parent company) / / PLN m , , , % -3.9% Sub debt 2, , , % +18.9% Balance sheet total 64, , , % -8.0% Loans balance 44, , , % -5.9% Deposits balance 51, , , % -6.5% 2Q 17/ 2Q 17/ PLN m 2Q Q Q Q 17 2Q 16 Net interest income % +0.5% Net fee and commission income % +67.2% Administration costs % -1.2% Administration costs (excluding Banking Guarantee Fund) % +3.2% Net profit/loss % x C /I % 69.4% 56.5% p.p p.p. ROE -6.3% -7.4% -0.6% +1.1 p.p p.p. NIM 1 2.1% 2.1% 1.9% 0.0 p.p p.p. CAR 15.8% 15.7% 15.6% p.p p.p. 1 YTD data 24

25 Appendix 2 / stand-alone data KEY FINANCIAL DATA / / PLN m Equity 5, , , % -4.1% Sub debt 2,669,6 2, ,245,4 +9.9% +18.9% Balance sheet total 64, , , % -8.2% Loans balance 45, , , % -5.6% Deposits balance 51, , , % -6.4% 2Q 17/ 2Q 17/ PLN m 2Q Q Q Q 17 2Q 16 Net interest income % +2.5% Net fee and commission income % X5.5 Administration costs % -2.1% Administration costs (excluding Banking Guarantee Fund) % +2.4% Net profit/loss % x C /I % 65.4% 43.2% -11.0p.p p.p. ROE -6.6% -5.2% 5.6% -1.4 p.p p.p. NIM % 2.07% 1.88% p.p p.p. CAR 15.9% 15.8% 15.6% +0.1 p.p p.p. 1 YTD data 25

26 MORE Getin Noble ABOUT Bank GETIN NOBLE BANK MORE INFO ABOUT GETIN NOBLE BANK INVESTOR RELATIONS WEBSITE MORE INFO ABOUT GETIN NOBLE BANK AND BANK S STRATEGY CONTACT DETAILS address: inwestorzy@gnb.pl 26

27 DISCLAIMER This presentation ( Presentation ) has been prepared by Getin Noble Bank S.A. (the Company ) for informational purposes only and may not, in any event, be considered or interpreted as an offer and/or a recommendation to enter into any transaction. In particular, it may not be considered or interpreted as an offer to acquire any securities or as an offer, invitation or incentive to make any acquisition offer, to make any investment or carry out any transaction involving such securities, nor may it be considered or interpreted as a recommendation to enter into any transaction, particularly any transaction involving the Company s securities. You are cautioned against using this presentation as the basis for making a decision to purchase or sell securities. You are deemed to have represented and agreed that you and any customers you represent are either (a) qualified institutional buyers (within the meaning of Regulation 144A under the U.S. Securities Act), or (b) not a U.S. person and are outside of the United States and not acting for the account or benefit of a U.S. person (as defined in Regulation S under the U.S. Securities Act). Although information contained in this Presentation is based on generally available sources that the Company believes to be reliable, the Company cannot guarantee that this information is full and complete. The Company takes no responsibility for the consequences of any decisions based on any information contained in this Presentation. The information contained in this Presentation has never been subject to independent verification and may at any time be subject to change or modification. This Presentation contains forward-looking statements. Such forward looking statements are only predictions and are not guarantees of future performance. Any such forward-looking statements are subject to risks, uncertainties and factors relating to the operations and business of the Company that may cause the actual results of the Company to be materially different from any future results expressed or implied in such forward-looking statements. The Company is not required to publicly disclose any possible modification or change to any information, data or statement contained in this Presentation if the Company changes its strategy or intentions or if any unforeseen events or circumstances occur that affect the Company s strategy and/or intentions. No information contained in this Presentation may, by any means, by considered or interpreted as a forecast or any express or implied representation or warranty whatsoever made by the Company or any person acting on behalf of the Company. In addition, neither the Company nor any person acting on its behalf shall be liable, in any way whatsoever, for any loss or damage that may be caused as a result of negligence or otherwise in connection with the use of this Presentation or any information contained in it, or for any damage that might otherwise arise in connection with any information contained in this Presentation. The publication by the Company of the data contained in this Presentation is not a breach of the regulations applicable to companies whose shares are traded on a regulated market, particularly on a regulated market of the Warsaw Stock Exchange (Giełda Papierów Wartościowych w Warszawie S.A.). The information provided in this Presentation has already been disclosed in current or periodic reports published by the Company or constitutes an addition to those reports, and its publication does not require the Company to fulfill the obligation to provide information as imposed on the Company as a public company. This Presentation does not purport to be complete. Please note that the only reliable source of information on the Company is the current and periodic reports published by the Company in performing its information obligations, available on the Company s web site at The Presentation is Confidential and should be treated as such and may not be copied or given to any other person, nor may the information contained therein be disclosed to any other person unless required by law. 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 is contrary to local law or regulations. 27