Motor Industry Services Australian Listed Dealer Groups comparison June 2017

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1 Motor Industry Services Australian Listed Dealer Groups comparison June 2017 kpmg.com.au

2 Executive summary June 2017 results The big are getting bigger and at the same time are preparing their business for the market and regulatory changes affecting the industry. The last 6 months has seen the appetite for growth continue for the listed entities with an overall 11.3 percent growth in revenue over the period. With a static overall market volume, this growth has come from the lock in of acquisitions made prior to the 2017 and the impact of acquisitions made during the period. On boarding these newer acquisitions plus costs of changing business practices to reflect the new regulatory regimes in finance and insurance have contributed to EBIT falling by 0.3 percent and return on equity falling by 21 percent over the period. Challenging market conditions in the first four months of the year (primarily in WA, QLD and NSW) impacted the trading performance of the listed Australian dealer groups. Buoyant May and June trading conditions with record volumes in these months partially recovered the slow start to the 2017 calendar year. Victorian based operations performed well and delivered strong results. This is expected to be a temporary blip as the new acquisitions thrive under the processes and buying power of the large groups and the existing operations make the personnel and process changes to fully leverage the new regulatory regime. The coming will see the first real impact of the alternate fuel vehicles on dealer performance. With global governments now fully mandating zero emission vehicles by set dates, the large OEM s have fully integrated the change with most new full model ranges offering a zero emissions alternative in the coming three years. As the clock ticks to zero emissions day the impetus for change will start to appear. 1

3 Australia s new motor vehicle sales increased slightly by 0.24 percent in the first half of 2017 totalling 559,522 units compared to the six months to June The sales increase during the six months to June 2016 on its previous corresponding period (pcp) was 3.4 percent. Whilst overall volume growth reduced in the first half of 2017, it still represented a record year of sales exceeding the previous record year 2016 YTD. New vehicle sales for the first half of 2017 in WA, QLD and NSW decreased on the pcp by 7.1 percent, 1.5 percent and 1.5 percent respectively. Offsetting the decreases was strong growth in VIC up 4.4 percent for the first half of First half 2017 volumes for TAS and SA were up and offset the declines in the ACT and NT. Private sales decreased again in the first half of 2017 by 2.3 percent, however, this was partly offset by the 2.1 percent increase in business/fleet sales which is a continuing trend for the past several years. Nationally, the Heavy Commercial segment recorded an increase of 7.1 percent, primarily driven by light duty trucks and medium/ heavy duty sales up 4 percent and 15 percent respectively on the pcp. As the age of the national fleet continues to grow, pressure will be applied to turn the fleet over. Once this happens, the segment is expected to grow significantly results and 2017/2018 outlook Although the market dynamics remain interesting for Australian retail motor dealers; the continued strong (record) volumes in new passenger vehicle sales have been encouraging. It is anticipated that the record volumes have been and will continue to be driven by low interest rates and reduced usage of traditional internal combustion vehicles as they transition out. Margin impact stemming from the regulatory reviews by ASIC and ACCC will become clearer in the second half of 2017 when the government finalise their positions on these matters. Some of the large groups are already reporting their estimated impact to their profits with AHG flagging circa $15 million EBIT impact from add-on insurance alone. MTO reported an impact of $1.4 million from the regulatory changes to insurance products in their press releases. The Australian listed dealer groups will continue to focus on further acquisitions, where they fit geographically and are earnings accretive, while further rationalising of current cost structures and focusing on incorporating recent acquisitions. Focus is turning onto existing opportunities within their businesses for additional ROI, with used vehicles being the low hanging fruit. APE s Carzoos offering and AHG s Easyauto123 have seen significant investment and focus by these groups. Current market conditions For the remainder of 2017, the following will be the key pressure points for dealers: 1. Dealership transactions have reached a fever pitch and will continue rampantly for the next 24 months. For a seller the question will be timing as the last tranche of sellers will have little value. 2. The big will continue to get bigger (refer above), the OEM s requirements are facilitating the transition to large groups and overseas players to fund facility growth and the change to new power train technology. 3. Debt/capital is likely to be harder to raise and will be more expensive for the private operator. 4. More dealerships will close and become a block of flats as pressures for more accommodation and requirement for less dealership real estate collide. 2

4 Results Snapshot - Listed Dealer Groups Consolidated Total Revenue AUD Gross Profit AUD EBITDA AUD Average inventory days Supply (Incl. MTO) days Average inventory days Supply (Excl. MTO) days Average Cash Conversion Cycle (Excl. MTO) days 11.3% 7.4% 2.2% 69.7 days 64.0 days 64.5 days Revenue growth was strong across all four listed dealer groups, totalling $11,90 billion. Overall, GP increased YOY by 7.4%; however, the GAP of GP on increased volume of sales was 3.9%. Overall, EBITDA increased by 2.2% YOY, however, increased variable costs (commissions, advertising etc) eroded the additional GP earned on the sales volume increase. Days supply of inventory improved despite increased inventory levels. Inventory days supply (excl. MTO) has improved by 3.8 days or 5.6% any increase in floorplan rates will have a negative impact on profitability. Cash conversion (excl. MTO) improved primarily due to extending the time payables were paid. EBIT AUD EBT Incl. unusual items AUD Total Debt/ Equity % LT Debt/ Equity % 0.3% 0.8% 67.7% 21.5% EBIT decreased 0.3% YOY, Depreciation and Amortisation significantly increasing YOY. EBT increased 0.8% YOY, the decrease of interest rates offset increased inventory levels delivering an uplift to EBT of $2.6m for the listed groups. Total debt to equity decreased significantly in the to December 2017 as ASG s balance sheet emerged post IPO. Long term debt to equity has significantly decreased. EBT Incl. unusual items as a % of sales Return on Equity % EBIT/ Interest Exp. (Incl. MTO) EBIT/ Interest Exp. (Excl. MTO) TEV/ EBIT P/ Diluted EPS Before Extraordinary 9.42% 21% 8.6x 5.4x 14.1x 16.6x Overall EBT as a % of total sales is down 0.27% on the pcp or 9.42%. Return on equity decreased significantly dropped due to the impact on results and issuance of common stock by all the listed dealer groups. Interest coverage significantly increased at MTO, moderately at APE and ASG and decreased at AHG. Interest coverage (excl. MTO) decreased by 4.0% or 0.1x. The weighted average Total Enterprise Value to Earnings before interest and taxes is 14.1x compared to 15.6x at June 16. The share price to earnings per share (before extraordinary items) is 16.6x compared to 18.8x at June 16. 3

5 At a glance Australian Listed Dealer Groups Comparison / 30 June 2017 Ranking AHG APE ASG 3 MTO Press Release Jun A LTM² Jun A Press Release Jun A Press Release Jun A By total revenue By total revenue growth YOY % By profit before tax $ By profit before tax % By total assets By total equity (BV) By market capitalisation By return on equity % 4 2 NM 1 Financial Performance Total Revenue 6, , , Total Revenue Growth YOY 8.1% 16.9% 50.4% 19.3% Gross Profit 1, Margin % 23.9% 18.0% 15.7% 26.5% EBITDA Margin % 3.2% 4.3% 4.2% 6.3% EBIT Margin % 2.5% 3.9% 3.7% 6.0% EBT Incl. Unusual Items Margin % 1.8% 3.5% 3.1% 5.6% Capital Structure and Funding Ratios Total Debt 1, Total Equity Total Debt/Equity 142.4% 106.8% 63.3% 80.9% LT Debt/Equity 39.2% 38.4% 4.8% 26.1% Total Liabilities/Total Assets 66.4% 58.3% 44.5% 53.9% EBIT / Interest Exp 3.6x 6.4x 6.2x 18.2x Interest Expense (41.4) (24.4) (9.3) (0.8) Common Dividends Paid (74.6) (66.6) (44.2) (2.8) Total Funding Costs 6.0% 6.0% 6.7% 4.7% Market Capitalization 1, , Cash & Short Term Investments Total Debt 1, Pref. Equity Total Minority Interest = Total Enterprise Value (TEV) 2, , Management Efficiency Ratios Inventory Turnover 5.4x 5.5x 6.4x 4.2x Accounts Receivable Turnover 18.1x 25.2x 28.3x 106.8x Average Inventory Days Supply Avg. Days Sales Out Avg. Days Payable Out. (16.3) (17.8) (11.8) (13.4) Average Cash Conversion Cycle Liquidity Ratios Working Capital (22.2) 14.9 Current Ratio 1.1x 1.2x 0.9x 1.4x Quick Ratio 0.4x 0.3x 0.2x 0.2x Cash from Ops. to Curr. Liab. 0.12x 0.19x 0.11x 0.22x In Millions of AUD, except per share items. ¹ All results are taken from the most recently filed statement for each period. 2 Growth rates for the LTM period are calculated against the LTM period ending before. 3 The results for ASG (listed in November 2016) are the actuals for the LTM taken from the December 2016 release and June 2017 release 4

6 Comparison income statement For the Fiscal Period Ending Press Release Jun AUD AHG APE ASG MTO % of sales (expenses shown % of Gross Profit) LTM Jun AUD % of sales (expenses shown % of Gross Profit) Press Release Jun AUD % of sales (expenses shown % of Gross Profit) Press Release Jun AUD % of sales (expenses shown % of Gross Profit) Revenue 6, , , Other Revenue Total Revenue 6, , , Cost Of Goods Sold 4, , , Gross Profit 1, % % % % Selling General & Admin Exp. 1, % % % % Provision for Bad Debts % 0 0.0% 0 0.0% % R & D Exp % 0 0.0% 0 0.0% 0 0.0% Depreciation & Amort % % % % Other Operating Expense/(Income) % % % % Other Operating Exp., Total 1, % % % % Operating Income % % % % Interest Expense (41.4) -2.8% (24.4) -3.4% (9.3) -3.8% (0.8) -1.3% Interest and Invest. Income 0 0.0% 0 0.0% 0 0.0% 0 0.0% Net Interest Exp. (41.4) -2.8% (24.4) -3.4% (9.3) -3.8% (0.8) -1.3% Income/(Loss) from Affiliates Other Non-Operating Inc. (Exp.) EBT Excl. Unusual Items % % % % Merger & Related Restruct. Charges 0 0 (17.1) 0 Impairment of Goodwill (1.8) Gain (Loss) On Sale Of Invest Gain (Loss) On Sale Of Assets (0.6) Asset Writedown (16.9) Other Unusual Items EBT Incl. Unusual Items % % % % Income Tax Expense % % % % Earnings from Cont. Ops % % % % Earnings of Discontinued Ops Extraord. Item & Account. Change Net Income to Company % % % % Minority Int. in Earnings (5.6) (1.9) (0.3) 0 Net Income % % % % In Millions of AUD, except per share items. 5

7 Market share August 2017 VFACTS national retails sales by Marque VFACTS National - AUGUST 2017 Month YTD Variance +/- VOL % % MTD % MTD % +\- YTD % YTD % +\- Total Market MTH YTD MTH YTD Mshare 17 Mshare 16 % Mshare 17 Mshare 16 % Alfa Romeo % 25.25% 0.10% 0.04% % 0.09% 0.07% 33.30% Aston Martin % 16.83% 0.01% 0.02% -1.49% 0.01% 0.01% 19.80% Audi 1,438 2,006 14,254 16,101 (568) (1,847) % % 1.52% 2.16% % 1.84% 2.09% % Bentley (3) % 23.08% 0.02% 0.02% % 0.02% 0.01% 29.52% BMW 2,005 2,321 17,000 20,124 (316) (3,124) % % 2.13% 2.50% % 2.20% 2.61% % Caterham (1) #DIV/0! #DIV/0! 0.00% 0.00% #DIV/0! 0.00% 0.00% % Chery (1) (7) % % 0.00% 0.00% % 0.00% 0.00% % Chrysler (7) (153) % % 0.03% 0.04% % 0.02% 0.04% % Citroen (47) (337) % % 0.04% 0.09% % 0.05% 0.09% % Dodge (28) (313) % % 0.00% 0.03% % 0.00% 0.04% % Ferrari (1) % 3.97% 0.01% 0.02% -8.52% 0.02% 0.02% 3.75% Fiat ,389 1,515 (60) (126) % -9.07% 0.14% 0.21% % 0.18% 0.20% -8.65% Fiat Professional (52) (178) % % 0.10% 0.16% % 0.10% 0.12% % Ford 6,645 6,849 53,620 54,126 (204) (506) -2.98% -0.94% 7.05% 7.37% -4.42% 6.94% 7.03% -1.30% Foton Light (62) (246) % % 0.00% 0.07% % 0.05% 0.08% % Fuso ,617 2, % 1.72% 0.37% 0.34% 9.81% 0.34% 0.33% 1.38% Great Wall #DIV/0! 96.14% 0.03% 0.00% #DIV/0! 0.04% 0.00% % Haval % 89.47% 0.09% 0.06% 66.71% 0.06% 0.01% % Holden 6,984 7,667 55,564 62,748 (683) (7,184) -8.91% % 7.41% 8.25% % 7.19% 8.15% % Honda 3,724 3,090 29,048 25, , % 10.76% 3.95% 3.33% 18.72% 3.76% 3.37% 11.65% Hyundai 7,800 6,536 65,120 68,489 1,264 (3,369) 19.34% -5.17% 8.27% 7.04% 17.56% 8.43% 8.89% -5.27% Infiniti (35) % 7.36% 0.05% 0.09% % 0.07% 0.06% 7.55% Isuzu Ute 2,131 1,647 16,116 14, , % 7.22% 2.26% 1.77% 27.46% 2.09% 1.94% 7.38% Jaguar ,888 1,865 (121) % 1.22% 0.22% 0.36% % 0.24% 0.24% 0.86% Jeep 591 1,028 5,666 8,817 (437) (3,151) % % 0.63% 1.11% % 0.73% 1.15% % Kia 4,507 3,710 37,508 28, , % 23.88% 4.78% 3.99% 19.68% 4.85% 3.71% 30.89% Lamborghini (6) (26) % % 0.01% 0.01% % 0.01% 0.01% % Land Rover 1,057 1,076 8,478 9,627 (19) (1,149) -1.77% % 1.12% 1.16% -3.23% 1.10% 1.25% % LDV ,487 1, % 29.46% 0.19% 0.15% 24.55% 0.19% 0.14% 41.23% Lexus ,161 6,318 (88) (157) % -2.55% 0.74% 0.85% % 0.80% 0.82% -2.84% Lotus (14) % 30.30% 0.00% 0.02% % 0.00% 0.00% 42.95% Maserati % 31.40% 0.05% 0.04% 31.35% 0.07% 0.05% 45.23% Mazda 8,511 9,258 79,535 78,691 (747) % 1.06% 9.02% 9.97% -9.44% 10.29% 10.22% 0.70% McLaren % 24.24% 0.01% 0.01% 18.21% 0.01% 0.01% 31.52% Mercedes-Benz Cars 2,933 2,902 24,878 23, , % 4.97% 3.11% 3.12% -0.44% 3.22% 3.07% 4.85% Mercedes-Benz Vans ,572 3, % 11.76% 0.50% 0.38% 28.87% 0.46% 0.41% 12.91% MG #DIV/0! % 0.05% 0.00% #DIV/0! 0.05% 0.00% #DIV/0! MINI ,704 2, % 7.21% 0.41% 0.35% 15.93% 0.35% 0.33% 7.38% Mitsubishi 6,649 6,136 52,342 48, , % 6.74% 7.05% 6.60% 6.75% 6.77% 6.34% 6.84% Morgan % 25.00% 0.00% 0.00% 97.02% 0.00% 0.00% 32.84% Nissan 4,095 5,616 38,369 44,693 (1,521) (6,324) % % 4.34% 6.04% % 4.96% 5.80% % Peugeot ,554 2, (931) 70.78% % 0.40% 0.24% 68.24% 0.20% 0.32% % Porsche ,455 3, % 5.50% 0.40% 0.34% 17.84% 0.45% 0.42% 5.43% Proton (13) (117) % % 0.00% 0.02% % 0.00% 0.02% % RAM % 17.47% 0.03% 0.03% 23.14% 0.03% 0.02% 20.72% Renault ,270 7, % 1.88% 0.97% 0.92% 5.31% 0.94% 0.93% 1.55% Rolls-Royce (2) % 9.09% 0.00% 0.00% % 0.00% 0.00% 9.60% Skoda ,501 3, % 13.54% 0.52% 0.33% 57.10% 0.45% 0.39% 15.24% Ssangyong (19) (230) % % 0.01% 0.03% % 0.01% 0.04% % Subaru 4,579 3,362 34,806 30,779 1,217 4, % 11.57% 4.86% 3.62% 34.17% 4.50% 4.00% 12.67% Suzuki 1,844 1,616 13,135 13, (31) 14.11% -0.24% 1.96% 1.74% 12.41% 1.70% 1.71% -0.60% Toyota 18,511 18, , ,459 (139) 7, % 4.82% 19.63% 20.07% -2.22% 18.82% 17.98% 4.68% Volkswagen 4,730 3,893 37,662 37, (233) 21.50% -0.62% 5.02% 4.19% 19.69% 4.87% 4.92% -0.98% Volvo Car ,169 4,044 (296) (875) % % 0.40% 0.72% % 0.41% 0.53% % Total Cars 94,307 92, , ,001 1,403 2, % 0.37% % % % % - - Caterpillar (4) (4) % % 0.21% 0.45% % 0.23% 0.29% % Daf % 22.10% 1.44% 1.30% 11.33% 1.65% 1.45% 14.40% Dennis Eagle % 80.85% 0.47% 0.05% % 0.58% 0.13% % Foton Heavy (8) (94) % % 0.00% 0.40% % 0.11% 0.77% % Freightliner (7) (112) % % 1.83% 2.49% % 1.74% 2.73% % Hino ,022 2, % 5.03% 17.88% 20.70% % 18.73% 19.96% -6.16% Hyundai Trucks #DIV/0! % 0.21% 0.00% #DIV/0! 0.22% 0.00% #DIV/0! Isuzu ,740 5, % 6.53% 33.04% 37.21% % 35.57% 37.31% -4.65% Iveco , % 17.50% 8.37% 6.03% 38.61% 7.40% 6.85% 8.03% Kenworth ,268 1, % 1.81% 9.72% 7.63% 27.43% 7.86% 8.66% -9.24% Mack % 18.44% 4.29% 3.74% 14.65% 3.90% 3.57% 9.27% Man % 64.64% 4.63% 2.94% 57.29% 3.26% 1.29% % Mercedes-Benz Trucks % 26.52% 3.06% 1.80% 70.28% 3.06% 2.52% 21.28% Scania % 36.65% 3.74% 3.39% 10.18% 3.74% 2.66% 40.67% UD Trucks % 24.58% 0.08% 0.07% 24.35% 0.08% 0.06% 32.10% Volvo Commercial ,107 1, % 8.49% 7.22% 7.78% -7.22% 6.86% 7.04% -2.61% Western Star (6) (12) % -5.31% 0.64% 1.05% % 1.40% 1.66% % Total Trucks 2,355 2,005 16,135 14, , % 10.88% % % % % Total Market 96,662 94, , ,380 1,753 4, % 0.58% Source: Vfacts 6

8 Market Share August 2017 (ABS registrations by state) New motor vehicle sales by state/territory of registration New Vehicles Sales Actuals 2016 NSW VIC QLD SA WA TAS(a) NT(a) ACT(a) AUST January 28,392 22,426 17,193 5,208 7,861 1, ,369 84,373 February 32,633 26,782 18,711 5,988 8,725 1, ,434 96,443 March 35,963 27,716 21,470 6,087 9,054 1,515 1,023 1, ,512 April 29,391 23,963 17,753 5,174 7,601 1, ,407 87,571 May 32,867 26,125 19,565 5,949 7,935 1,503 1,180 1,548 96,672 June 43,449 34,262 27,270 7,613 10,749 1,853 1,240 2, ,569 YTD JUNE 202, , ,962 36,019 51,925 8,801 5,889 9, ,140 July 30,219 25,517 18,445 5,210 8,234 1, ,486 91,331 August 31,788 27,096 18,062 5,785 8,144 1, ,410 91,331 YTD 264, , ,469 47,014 68,303 11,933 7,601 12, , NSW VIC QLD SA WA TAS(a) NT(a) ACT(a) Total January 29,068 24,535 15,709 5,134 7,037 1, ,438 84,910 February 30,221 24,917 17,474 5,354 7,526 1, ,439 89,025 March 35,677 29,252 21,217 6,387 8,712 1, , ,410 April 28,565 23,292 16,312 4,951 6,634 1, ,257 83,135 May 31,870 29,077 20,674 6,133 8,154 1,540 1,276 1, ,226 June 44,341 37,255 28,768 8,213 10,161 1,953 1,333 2, ,171 YTD JUNE 199, , ,154 36,172 48,224 8,914 5,877 9, ,877 July 30,620 26,584 18,540 5,663 7,576 1, ,481 92,754 August 32,137 27,569 18,695 5,790 8,487 1, ,542 92,754 YTD 262, , ,389 47,625 64,287 11,828 7,695 12, ,631 % change pcp NSW VIC QLD SA WA TAS(a) NT(a) ACT(a) Total January 2.4% 9.4% -8.6% -1.4% -10.5% 3.0% 4.2% 5.0% 0.6% February -7.4% -7.0% -6.6% -10.6% -13.7% 1.1% -10.7% 0.3% -7.7% March -0.8% 5.5% -1.2% 4.9% -3.8% 1.4% -7.5% -0.1% 0.9% April -2.8% -2.8% -8.1% -4.3% -12.7% -7.5% -6.1% -10.7% -5.1% May -3.0% 11.3% 5.7% 3.1% 2.8% 2.5% 8.1% -3.0% 3.7% June 2.1% 8.7% 5.5% 7.9% -5.5% 5.4% 7.5% 0.7% 4.4% YTD JUNE -1.5% 4.4% -1.5% 0.4% -7.1% 1.3% -0.2% -1.1% -0.2% July 1.3% 4.2% 0.5% 8.7% -8.0% -0.9% 10.0% -0.3% 1.6% August 1.1% 1.7% 3.5% 0.1% 4.2% -11.8% 2.6% 9.4% 1.8% YTD JUNE -0.8% 4.0% -0.7% 1.3% -5.9% -0.9% 1.2% 0.1% 0.2% Source: 7

9 Basis of report and disclaimer Basis of this report This report is an extract of summary information compiled from the financial statements available on the Australian Stock Exchange (ASX) from the following Australian Listed Entities. For further information and details refer to the data source, S&P Capital IQ. A P Eagers Ltd (APE) APE has a different financial year end to the other listed groups, therefore the last (LTM) results to 30 June 2017 actual results were utilised. Automotive Holdings Group (AHG) AHG have a June year end. The last actual results to 30 June 2017 were utilised. Autosports Group (ASG) The comparison report utilises the 6 months to December 2016 and the 6 months to June 2017 to aggregate the LTM to June 2017 for the P&L. The Balance sheet utilised is from 30 June For further information and details refer to the data source, S&P Capital IQ. Disclaimer Information provided in this report is general in nature and does not constitute financial advice. Every effort has been made to ensure that the information provided is accurate. Individuals must not rely on this information to make a financial or investment decision. Company information All data and financial information was taken from the publicly available Annual Financial Reports of the Listed Australian Dealers these are available on com.au by searching the entity and downloading the report. There were no other sources of information for the financial data. For most companies the information was from their 30 June 2017 reports, however a number of companies have different year ends and we have used their latest information for each company. Motorcycle Holdings Group (MTO) MTO have a June year end. The last actual results to 30 June 2017 were utilised. 8

10 Contact us Steve Bragg Director Consulting Wayne Pearson National Lead Brian Fellowes Director Training Rohan Meyer Manager Dealer Groups Ian Kowalski KPMG Partner AKL PE Stephen May KPMG Partner Enterprise Audit smay@kpmg.com.au Bill Noye KPMG Partner Enterprise Advisory & Tax wnoye@kpmg.com.au Laura Pestell Learning Coordinator lpestell@kpmg.com.au David Pring KPMG Partner Enterprise Tax davidpring@kpmg.com.au Bruce Sinclair KPMG Partner Enterprise bdsinclair@kpmg.com.au Dean Robinson KPMG Specialist Advisor Deal Advisory M&A drobinson5@kpmg.com.au Aaron Street KPMG Partner Enterprise Advisory & Tax astreet@kpmg.com.au kpmg.com.au Company information all data and financial information was taken from the publicly available Annual Financial Reports of the Listed Australian Dealers these are available on by searching the entity and downloading the report. There were no other sources of information for the financial data. For most companies the information was from their 31 December 2016 reports, however a number of companies have different year ends and we have used their latest information for each company. The information contained in this document is of a general nature and is not intended to address the objectives, financial situation or needs of any particular individual or entity. It is provided for information purposes only and does not constitute, nor should it be regarded in any manner whatsoever, as advice and is not intended to influence a person in making a decision, including, if applicable, in relation to any financial product or an interest in a financial product. Although we endeavour to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. To the extent permissible by law, KPMG and its associated entities shall not be liable for any errors, omissions, defects or misrepresentations in the information or for any loss or damage suffered by persons who use or rely on such information (including for reasons of negligence, negligent misstatement or otherwise). ( KPMG International ), a Swiss entity. All rights reserved. The KPMG name and logo are registered trademarks or trademarks of KPMG International. September VIC N15925ENT