Tag: European Market

Business Strategy & Outlook

Stefan Bomhard has a new mantra for Imperial Brands: focus. The CEO unveiled a five-year strategic plan in 2021 that will concentrate investments both geographically and on emerging categories that

are likely to become the largest profit pools in the future.  The plan makes sense because it essentially recognizes Imperial’s place in the marketplace–it is a fast follower, rather than a leader,

in most markets, but a highly profitable one with strong cash flow generation potential that should drive returns to shareholders higher in the coming years.

The overarching shift in strategy seems to be that investment will focus on categories and geographies where Imperial has existing strengths, and where consumer demand is likely to be strong. In

the core cigarette business, for example, Imperial prioritizes five tobacco markets (U.S., U.K., Germany, Spain, and Australia) in which it holds significant share and which in aggregate represent

more than 70% of Imperial’s tobacco operating profit. The company has lost share in these markets (except the U.S.) for several years, and increased investments behind its key brands should help stabilize volume declines. Other markets, as well as the firm’s smaller brands, will be managed to maximize cash flow. In next generation products, Bomhard plans to diversify the big bet placed on vaping by exiting vaping markets in which it has not gained traction, in order to target its investments on more profitable

opportunities. In heated tobacco, it is shifting its geographic focus from Japan, where it has very limited share and distribution structure, to Europe, where it has pockets of large shares.

The Bomhard’s plan will unlock value. By making more consumer and capability-centric investments, we expect the financial performance of the company to improve. Imperial has already ceded first mover advantage to Philip Morris International, and the strategy to improve performance seems to depend on regaining share, rather than driving category growth. This is unlikely to come cheap and may require higher spending going forward.

Financial Strengths

With net debt/adjusted EBITDA standing at 2.2 times at the end of fiscal 2021, Imperial’s balance sheet is roughly in line with most peers, including PMI, although gearing is much lower than that of British American Tobacco. The company has deleveraged from its 2015 acquisitions of U.S. assets from Reynolds American and Lorillard, and now intends to maintain an investment-grade credit rating. Imperial’s presence in developed markets makes it a cash-generating machine, even more so since the U.S. acquisitions. The firm has been operating in recent years on a strongly negative cash conversion cycle, and cash conversion has been up there with the best-in-class performers across the global consumer staples space. The cash conversion (defined as operating cash flow divided by operating income) to run close to 100% over five-year explicit forecast period. Imperial remains on course to return to a more normalized leverage position of below 2.5 times net debt/adjusted EBITDA by 2022, the company’s stated leverage target.

 Management abandoned its medium-term guidance of 10% dividend growth in 2019, then went one step further in fiscal 2020 by cutting the second-half dividend by one third. With a payout ratio now below net income, the dividends to grow in line with earnings at a low- to mid-single-digit

rate. This is the right strategy because Imperial had been tying its own hands with the 10% growth guidance, at a time when financial flexibility is necessary to invest in long-term growth.

Bulls Say

• The appointment of Simon Langelier, chairman of cannabis oil extract manufacturer PharamCielo, to the board of directors could open the door for Imperial to exploit more liberal legislation in the U.S.

• Imperial generates some of the highest margins in the industry on its cigarette portfolio.

• If plain packaging legislation spreads, Imperial, through its value portfolio, may be the manufacturer best positioned to benefit.

Company Description

Imperial Brands is the world’s fourth-largest international tobacco company (excluding China National Tobacco) with total fiscal 2021 volume of 232 billion cigarettes sold in more than 160 countries. The firm holds a leading global position in the fine-cut tobacco and hand-rolling paper categories,

and it has a logistics platform in Western Europe, Altadis. Through acquisition, Imperial is the third-largest manufacturer in the U.S. and owns the Winston and blue brands.

(Source: Morningstar)

DISCLAIMER for General Advice: (This document is for general advice only).

This document is provided by Laverne Securities Pty Ltd T/as Laverne Investing. Laverne Securities Pty Ltd, CAR 001269781 of Laverne Capital Pty Ltd AFSL No. 482937.

The material in this document may contain general advice or recommendations which, while believed to be accurate at the time of publication, are not appropriate for all persons or accounts. This document does not purport to contain all the information that a prospective investor may require.  The material contained in this document does not take into consideration an investor’s objectives, financial situation or needs. Before acting on the advice, investors should consider the appropriateness of the advice, having regard to the investor’s objectives, financial situation, and needs. The material contained in this document is for sales purposes. The material contained in this document is for information purposes only and is not an offer, solicitation or recommendation with respect to the subscription for, purchase or sale of securities or financial products and neither or anything in it shall form the basis of any contract or commitment. This document should not be regarded by recipients as a substitute for the exercise of their own judgment and recipients should seek independent advice.

The material in this document has been obtained from sources believed to be true but neither Laverne and Banyan Tree nor its associates make any recommendation or warranty concerning the accuracy or reliability or completeness of the information or the performance of the companies referred to in this document. Past performance is not indicative of future performance. Any opinions and or recommendations expressed in this material are subject to change without notice and, Laverne and Banyan Tree are not under any obligation to update or keep current the information contained herein. References made to third parties are based on information believed to be reliable but are not guaranteed as being accurate.

Laverne and Banyan Tree and its respective officers may have an interest in the securities or derivatives of any entities referred to in this material. Laverne and Banyan Tree do and seek to do business with companies that are the subject of its research reports. The analyst(s) hereby certify that all the views expressed in this report accurately reflect their personal views about the subject investment theme and/or company securities.

Although every attempt has been made to verify the accuracy of the information contained in the document, liability for any errors or omissions (except any statutory liability which cannot be excluded) is specifically excluded by Laverne and Banyan Tree, its associates, officers, directors, employees, and agents.  Except for any liability which cannot be excluded, Laverne and Banyan Tree, its directors, employees and agents accept no liability or responsibility for any loss or damage of any kind, direct or indirect, arising out of the use of all or any part of this material.  Recipients of this document agree in advance that Laverne and Banyan Tree are not liable to recipients in any matters whatsoever otherwise; recipients should disregard, destroy or delete this document. All information is correct at the time of publication. Laverne and Banyan Tree do not guarantee reliability and accuracy of the material contained in this document and are not liable for any unintentional errors in the document.

The securities of any company(ies) mentioned in this document may not be eligible for sale in all jurisdictions or to all categories of investors. This document is provided to the recipient only and is not to be distributed to third parties without the prior consent of Laverne and Banyan Tree.

Business Strategy & Outlook

Salvatore Ferragamo is an Italian monobrand company mainly known for its footwear and accessories.  The firm benefits from relatively strong control over distribution (almost 70% of revenue is retail, versus more than 70% for Burberry, Prada, and Gucci, but in line with Hugo Boss), while its strong

representation in airport locations (about 150 travel retail stores) positions it well to benefit from growth in global travel flows and tourist luxury spending (about half of industry spending is done while travelling).

The Ferragamo has not carved a moat. It is a relatively small player in the fragmented luxury footwear category (43% of revenue). The luxury footwear industry is fragmented and largely wholesale (thus prone to discounting), with fast product life cycles, exposing industry players to fashion risk. The leather goods category (44% of Ferragamo’s revenue) as more conspicuous, but Ferragamo is much less established there than market leaders (with 1% market share versus over 15% for Louis Vuitton, 10% for Gucci and 6.5% for Hermes). Moreover, its more affordable price points (EUR 800-1,500 handbags versus EUR 800-4,000 for luxury peers) reduce the prestige value of purchases. The Ferragamo’s pricing power as in line with or toward the lower end of a luxury coverage.

The company is taking actions that could bring it back to the industry average growth after several years of underperformance. The actions such as increasing the firm’s share of “newness” to engage the existing and younger consumer, reining in a subpar distribution channel, and focusing on retail efficiency and supply chain transformation with more flexibility, less pre-committed inventory, and more capacity open to late orders. Still, Ferragamo’s lack of critical mass versus very well-established competition in leather goods and generally a more competitively intense environment in footwear could make a turnaround challenging.

Financial Strengths

Ferragamo’s financial position is solid, with net cash on the balance sheet. Dividend payments have been suspended as the pandemic hit in 2020 and 2021 but resumed from 2022. 

To consider a low use of debt to be appropriate, given the operating leverage of the business model (the estimation is around 60%-70% of operating expenses to be fixed in a normal environment) and its cyclicality (revenue declined by 10% during the financial crisis in 2009 and over 30% in 2020). The capital expenditures to be boosted in the near term to over 7% from 3%-5% in the recent five years, focusing on renovations, supply chains and technology, in line with new management’s strategic plan. To moderate after 2026. The average free cash flow margin to be around 9% (versus 7% in 2019 and 23% in 2021). The Ferragamo to be able to meet its financial obligations and business investment needs in the future.

Bulls Say

• Ferragamo is an early entrant in emerging markets, with strong presence and brand recognition in Asia and South America. This positions it to benefit from middle-class growth in those markets.

• Ferragamo has an above-industry presence in airport locations. Around half of luxury purchases are already done while travelling and the number of outbound travelers is expected to grow as incomes rise.

• Ferragamo’s profitability could improve as new collections and store refurbishments drive improving store density (currently on the lower end of the peer group).

Company Description

Founded in 1927, Salvatore Ferragamo is an Italian monobrand company mainly known for its footwear and accessories. The company generates about 43% of revenue in the footwear category, 44% in leather goods, 6% in apparel, 6% in accessories. It was one of the pioneers in establishing a

presence in Asia, where it generates 38% of sales, and other emerging markets (6% of sales in Central and South America). Ferragamo generates 19% of revenue in Europe, 29% in the U.S., and 8% in Japan.

(Source: Morningstar)

DISCLAIMER for General Advice: (This document is for general advice only).

This document is provided by Laverne Securities Pty Ltd T/as Laverne Investing. Laverne Securities Pty Ltd, CAR 001269781 of Laverne Capital Pty Ltd AFSL No. 482937.

The material in this document may contain general advice or recommendations which, while believed to be accurate at the time of publication, are not appropriate for all persons or accounts. This document does not purport to contain all the information that a prospective investor may require.  The material contained in this document does not take into consideration an investor’s objectives, financial situation or needs. Before acting on the advice, investors should consider the appropriateness of the advice, having regard to the investor’s objectives, financial situation, and needs. The material contained in this document is for sales purposes. The material contained in this document is for information purposes only and is not an offer, solicitation or recommendation with respect to the subscription for, purchase or sale of securities or financial products and neither or anything in it shall form the basis of any contract or commitment. This document should not be regarded by recipients as a substitute for the exercise of their own judgment and recipients should seek independent advice.

The material in this document has been obtained from sources believed to be true but neither Laverne and Banyan Tree nor its associates make any recommendation or warranty concerning the accuracy or reliability or completeness of the information or the performance of the companies referred to in this document. Past performance is not indicative of future performance. Any opinions and or recommendations expressed in this material are subject to change without notice and, Laverne and Banyan Tree are not under any obligation to update or keep current the information contained herein. References made to third parties are based on information believed to be reliable but are not guaranteed as being accurate.

Laverne and Banyan Tree and its respective officers may have an interest in the securities or derivatives of any entities referred to in this material. Laverne and Banyan Tree do and seek to do business with companies that are the subject of its research reports. The analyst(s) hereby certify that all the views expressed in this report accurately reflect their personal views about the subject investment theme and/or company securities.

Although every attempt has been made to verify the accuracy of the information contained in the document, liability for any errors or omissions (except any statutory liability which cannot be excluded) is specifically excluded by Laverne and Banyan Tree, its associates, officers, directors, employees, and agents.  Except for any liability which cannot be excluded, Laverne and Banyan Tree, its directors, employees and agents accept no liability or responsibility for any loss or damage of any kind, direct or indirect, arising out of the use of all or any part of this material.  Recipients of this document agree in advance that Laverne and Banyan Tree are not liable to recipients in any matters whatsoever otherwise; recipients should disregard, destroy or delete this document. All information is correct at the time of publication. Laverne and Banyan Tree do not guarantee reliability and accuracy of the material contained in this document and are not liable for any unintentional errors in the document.

The securities of any company(ies) mentioned in this document may not be eligible for sale in all jurisdictions or to all categories of investors. This document is provided to the recipient only and is not to be distributed to third parties without the prior consent of Laverne and Banyan Tree.

Business Strategy & Outlook

Considering industry trends in connectivity, electronics, and safety, the Continental’s revenue will grow at a faster rate than the estimated 1%-3% long-term average annual growth in global vehicle production. Above-industry-average research and development spending enables consistent product and process innovation, supporting Continental’s revenue growth, healthy return on invested capital, and a narrow economic moat rating.

After an acquisition binge that culminated in 2007 with the purchase of Siemens VDO, Continental has grown from being predominantly a European tiremaker to a global supplier of automotive components, systems, and modules. In 2008, Continental became an acquisition target as Schaeffler unsuccessfully bid for the company (Schaeffler still owns 46% of the voting interest).

Continental should benefit from automotive industry trends, including advanced driver-assist systems, autonomous driving features, V2X connectivity, and increased vehicular electronics. The company invests in and successfully cultivates innovative technologies. The Continental’s innovation combined with industry trends results in revenue growth and margins that are better than industry averages. Management’s long-term targets are to annually increase revenue in excess of 5% and generate adjusted EBIT margins in the 8% to 11% range. Management spun off its powertrain division in September 2021 into a new company called Vitesco that trades under the ticker VTSC. Since 2008, powertrain segment revenue has grown at an average annual rate of 6%. In 2019, pro forma Vitesco had EUR 9.1 billion in pre pandemic revenue and an adjusted EBITDA margin of 9.5%. However, in 2020, Vitesco pro forma revenue was EUR 8 billion with an adjusted EBITDA margin of 6% due to COVID-19-related industry factory closures. While Vitesco supplies components for internal combustion engine powertrains, the new company’s electrified vehicle powertrain product lines should support revenue growth in the mid-single-digit range.

Financial Strengths

Continental’s financial health appears to be in good shape. Management targets investment-grade credit ratings and a gearing ratio (net debt/equity) range of 40% to 60%. At the end of 2021, the company’s liquidity was EUR 7.3 billion, the gearing ratio was 30%, and total adjusted debt/EBITDAR, which treats operating leases as debt and rent expense as interest, was 2.7 times. Since 2011, Continental has averaged 1.8 times total adjusted debt/EBITDAR, while netting cash against debt results in about a 1.4 times ratio. The Continental’s cash generation and liquidity are more than sufficient to buffer a cyclical downturn in auto demand, including lingering effects of the pandemic and the microchip shortage.

By the end of 2006, Continental had reduced its debt to a more prudent level after its acquisitions made between 1998 and 2004. The capital structure became heavily debt-laden in 2007 when management made four acquisitions: Siemens VDO, Matador, Thermopol, and AP Italia. As a result, the company went through the financial crisis with a highly leveraged balance sheet, and debt levels remained elevated through 2013. Since 2011, the gearing ratio has averaged 47%. However, since 2014, Continental’s gearing ratio has averaged only 33%. The company has mostly used bank credit lines but also has outstanding bonds, securitization, factoring, asset-backed securities, commercial paper, and capital leases, all of which are on balance sheet. Maturities appear well laddered with the exception of roughly EUR 1.6 billion in short-term debt. The company has EUR 6.1 billion in open credit lines, of which, EUR 4.9 billion was available at year-end 2021. While Continental’s EUR 4.0 billion revolving bank line of credit due in 2025 had not been utilized, short-term debt includes EUR 1.2 billion outstanding on other lines of credit. The large short-term debt balance has typically been rolled to the next year.

Bulls Say

Continental is well positioned to capitalize on auto industry trends like safety, electronics, connectivity, and automated driving. As a result, the company’s revenue to average growth in excess of average annual growth in global vehicle production.

The ability to continuously innovate new process and product technologies should enable Continental to maintain a narrow economic moat.

A global manufacturing footprint enables participation in global vehicle platforms and provides penetration in developing markets.

Company Description

Continental is a global auto supplier and tiremaker. Operating segments include the autonomous mobility and safety segment and the vehicle networking and information segment in the automotive group, plus tires and ContiTech, which uses rubber in industrial and automotive components and systems, in the rubber group. Last year, pro forma for the spinoff of Vitesco, automotive group revenue was around 45% (AMS 22%, VNI 23%) of the total, rubber group revenue was 52% (tires 35%, CT 17%), and contract manufacturing for Vitesco was 3%. Top five customers include Mercedes-Benz, Ford, the Renault-Nissan-Mitsubishi alliance, Stellantis, and Volkswagen, representing about 33% of total revenue. Europe, at 48% of total revenue, is the company’s largest market, followed by North America at 26%.

(Source: Morningstar)
DISCLAIMER for General Advice: (This document is for general advice only).
This document is provided by Laverne Securities Pty Ltd T/as Laverne Investing. Laverne Securities Pty Ltd, CAR 001269781 of Laverne Capital Pty Ltd AFSL No. 482937.
The material in this document may contain general advice or recommendations which, while believed to be accurate at the time of publication, are not appropriate for all persons or accounts. This document does not purport to contain all the information that a prospective investor may require. The material contained in this document does not take into consideration an investor’s objectives, financial situation or needs. Before acting on the advice, investors should consider the appropriateness of the advice, having regard to the investor’s objectives, financial situation, and needs. The material contained in this document is for sales purposes. The material contained in this document is for information purposes only and is not an offer, solicitation or recommendation with respect to the subscription for, purchase or sale of securities or financial products and neither or anything in it shall form the basis of any contract or commitment. This document should not be regarded by recipients as a substitute for the exercise of their own judgment and recipients should seek independent advice.
The material in this document has been obtained from sources believed to be true but neither Laverne and Banyan Tree nor its associates make any recommendation or warranty concerning the accuracy or reliability or completeness of the information or the performance of the companies referred to in this document. Past performance is not indicative of future performance. Any opinions and or recommendations expressed in this material are subject to change without notice and, Laverne and Banyan Tree are not under any obligation to update or keep current the information contained herein. References made to third parties are based on information believed to be reliable but are not guaranteed as being accurate.
Laverne and Banyan Tree and its respective officers may have an interest in the securities or derivatives of any entities referred to in this material. Laverne and Banyan Tree do and seek to do business with companies that are the subject of its research reports. The analyst(s) hereby certify that all the views expressed in this report accurately reflect their personal views about the subject investment theme and/or company securities.
Although every attempt has been made to verify the accuracy of the information contained in the document, liability for any errors or omissions (except any statutory liability which cannot be excluded) is specifically excluded by Laverne and Banyan Tree, its associates, officers, directors, employees, and agents. Except for any liability which cannot be excluded, Laverne and Banyan Tree, its directors, employees and agents accept no liability or responsibility for any loss or damage of any kind, direct or indirect, arising out of the use of all or any part of this material. Recipients of this document agree in advance that Laverne and Banyan Tree are not liable to recipients in any matters whatsoever otherwise; recipients should disregard, destroy or delete this document. All information is correct at the time of publication. Laverne and Banyan Tree do not guarantee reliability and accuracy of the material contained in this document and are not liable for any unintentional errors in the document.
The securities of any company(ies) mentioned in this document may not be eligible for sale in all jurisdictions or to all categories of investors. This document is provided to the recipient only and is not to be distributed to third parties without the prior consent of Laverne and Banyan Tree.

Business Strategy and Outlook

Beiersdorf’s strategy, C.A.R.E.+, focuses on three key growth drivers: skincare prioritization, white-space penetration, and an acceleration of digital transformation. Vincent Warnery, the new CEO appointed in May 2021, has emphasized his continued support for the strategy, having been part of Beiersdorf’s executive board at the time it was introduced in 2019. In the past few years, Beiersdorf has put the strategy into action by focusing its innovation program on the skincare category, with an emphasis on facial care, as the fastest-growing subcategory. It is anticipated for this strategy to be wise, given that the facial care segment features both faster growth and higher margins than the body care segment, in which Beiersdorf, and its flagship brand Nivea, have been historically over-indexed. 

Nivea is a EUR 4 billion brand and accounts for about two thirds of the sales in the consumer segment and over half of the group sales. The brand has a long history in Europe and is the largest brand in skincare globally, albeit in a highly fragmented market. Under Warnery, the business is moving toward a more centrally driven model, with a newly appointed global head of Nivea being responsible for all the branding decisions, allowing markets to focus on execution rather than adaptation of communication or brand strategy. However, it is alleged cohesiveness in marketing, repositioning to faster growing segments, and investments in digital are still needed to bring back some of the brand’s lost lustre. 

White-space penetration is another area emphasized by management as the business looks to decrease its reliance on Europe, and looks to expand its business, primarily in the U.S. and China. There is also increased focus from management on digitalization as Beiersdorf lags its peers in terms of its share of digital sales. Given all these initiatives, it is likely for the mix to be the largest contributor to margin expansion over the medium term, while marketing and sales investment will likely remain elevated to enable the implementation of the strategy

Financial Strength

Beiersdorf has one of the strongest balance sheets among consumer staples coverage. The company held EUR 1 billion of cash as well as EUR 4.5 billion in current and non-current securities on its balance sheet at the end of 2021, while debt only amounted to EUR 0.6 billion. This translates into a net debt to EBITDA of negative 4 times, using both cash and securities. The company argues that this conservative financial policy enables management to successfully navigate periods of crisis such as those experienced during the Covid-19 pandemic. However, it is held, this level of cash may be excessive, especially since shareholder distributions have been meagre, with dividends kept flat at EUR 0.70 for over a decade and a lack of share buy-back initiatives. Holding the dividend constant, it is projected the payout ratio (using net income) will decrease from 25% in 2021 to just 14% in five years. Leveraging up to 2 times debt/EBITDA, including cash and securities and the more than 2 EUR billion that Beiersdorf holds in treasury stock, could finance a transformative deal through cash of up to EUR 8 billion. However, given the company’s clear preference for conservative balance sheet management, it is not probable that there will be a significant appetite for a large deal, with management continuing to pursue bolt-on acquisitions and small deals in areas that complement the strategy of expanding their presence in skincare, such as the recent Chantecaille acquisition.

Bulls Say’s

• Beiersdorf’s clear focus on skincare and the efforts to reposition Nivea into facial care has the potential to pay out in both superior growth and improved margin over the midterm. 
• The move toward a centrally managed model should benefit the business, with more cohesive marketing and increased digital investment helping to rejuvenate Nivea. 
• With its low cost of financing, cash and securities of EUR 5.5 billion, slowing global organic growth, and highly fragmented categories, it is likely, Beiersdorf will eventually be involved in industry consolidation.

Company Profile 

Beiersdorf is a Germany-based company engaged in producing personal-care products, with a focus on manufacturing cosmetic products. The company operates through two business segments. Consumer provides skincare and beauty care products and operates portfolio brands such as Nivea, Eucerin, La Prairie, Labello, Hansaplast, Elastoplast, and Florena. The other business segment markets self-adhesive system and product solutions, primarily for industrial customers, under the Tesa brand. Beiersdorf is majority-owned by Maxingvest. 

(Source: MorningStar)

DISCLAIMER for General Advice: (This document is for general advice only).

This document is provided by Laverne Securities Pty Ltd T/as Laverne Investing. Laverne Securities Pty Ltd, CAR 001269781 of Laverne Capital Pty Ltd AFSL No. 482937.

The material in this document may contain general advice or recommendations which, while believed to be accurate at the time of publication, are not appropriate for all persons or accounts. This document does not purport to contain all the information that a prospective investor may require.  The material contained in this document does not take into consideration an investor’s objectives, financial situation or needs. Before acting on the advice, investors should consider the appropriateness of the advice, having regard to the investor’s objectives, financial situation, and needs. The material contained in this document is for sales purposes. The material contained in this document is for information purposes only and is not an offer, solicitation or recommendation with respect to the subscription for, purchase or sale of securities or financial products and neither or anything in it shall form the basis of any contract or commitment. This document should not be regarded by recipients as a substitute for the exercise of their own judgment and recipients should seek independent advice.

The material in this document has been obtained from sources believed to be true but neither Laverne and Banyan Tree nor its associates make any recommendation or warranty concerning the accuracy or reliability or completeness of the information or the performance of the companies referred to in this document. Past performance is not indicative of future performance. Any opinions and or recommendations expressed in this material are subject to change without notice and, Laverne and Banyan Tree are not under any obligation to update or keep current the information contained herein. References made to third parties are based on information believed to be reliable but are not guaranteed as being accurate.

Laverne and Banyan Tree and its respective officers may have an interest in the securities or derivatives of any entities referred to in this material. Laverne and Banyan Tree do and seek to do, business with companies that are the subject of its research reports. The analyst(s) hereby certify that all the views expressed in this report accurately reflect their personal views about the subject investment theme and/or company securities.

Although every attempt has been made to verify the accuracy of the information contained in the document, liability for any errors or omissions (except any statutory liability which cannot be excluded) is specifically excluded by Laverne and Banyan Tree, its associates, officers, directors, employees, and agents.  Except for any liability which cannot be excluded, Laverne and Banyan Tree, its directors, employees and agents accept no liability or responsibility for any loss or damage of any kind, direct or indirect, arising out of the use of all or any part of this material.  Recipients of this document agree in advance that Laverne and Banyan Tree are not liable to recipients in any matters whatsoever otherwise; recipients should disregard, destroy or delete this document. All information is correct at the time of publication. Laverne and Banyan Tree do not guarantee reliability and accuracy of the material contained in this document and is not liable for any unintentional errors in the document.

The securities of any company(ies) mentioned in this document may not be eligible for sale in all jurisdictions or to all categories of investors. This document is provided to the recipient only and is not to be distributed to third parties without the prior consent of Laverne and Banyan Tree.