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Hilton has added several brands in the past few years including Tru, which launched in January 2016 and already has 212 hotels opened as of the end of 2021

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Business Strategy & Outlook

While the coronavirus pandemic and inflation present headwinds to industry travel demand in the near term, Hilton’s brand intangible asset (which underlies its narrow moat rating) is strengthening, along with improving travel demand in 2022. Hilton’s room share expansion to be among the industry’s fastest over the next decade because of an industry-leading pipeline, favorable next-generation traveler position supported by newer brands, and its highly rated loyalty program. The company currently has mid-single-digit share of global hotel rooms with 15%-20% share of all industry pipeline rooms under construction.

Further, its U.S. (70% of total 2021 room count) share of existing rooms is low double digits, with a pipeline share of rooms under construction at 20%-25%. Hilton’s room growth averaging mid-single digits over the next decade, above the 1.8% supply increase it is estimated for the U.S. industry, implying market share gains ahead for Hilton. In addition to an intangible brand advantage, Hilton has switching cost barriers (a second source of its narrow moat rating) through its asset-light model of mostly managed or franchised rooms. These asset-light rooms not only offer high returns on invested capital, but also contract lengths of 20 years that are costly to terminate. Hilton’s intangible brand asset and switching cost advantage to strengthen, driven by new hotel brands and its highly rated loyalty program. Hilton has added several brands in the past few years, including Tru, which launched in January 2016 and already has 212 hotels opened as of the end of 2021. Hilton also has a solid loyalty membership base at 139 million as of the end of June 2022, which drove around 62% of total room nights during the year.

Financial Strengths

Hilton’s spinoffs of owned assets at the beginning of 2017 has left the company with around 90% of its adjusted EBITDA derived from fees versus just 52% previous to the spinoff. Given the less capital-intensive nature of franchise and managed assets relative to owned ones, free cash flow as a percentage of sales and the cash flow cushion are now higher. Hilton’s financial health has improved, with its pre-pandemic 2019 debt/adjusted EBITDA at 3.5 times versus the 7.3 times ratio in 2015. Hilton’s financial health remains good despite COVID-19 challenges. Hilton asset-light business model allows the company to operate with low fixed costs and stable unit growth, helping it generate over $600 million in free cash flow to equity in 2020, despite a 57% decline in revPAR. Hilton improved its liquidity profile during the early stages of the pandemic outbreak, tapping the $1.8 billion that remained on its credit facility (which has since been paid), suspending dividends and share repurchases, with the former resuming in May 2022 and the latter having already started in March 2022), and raising and refinancing debt. As a result, Hilton has near $3 billion in liquidity, with no debt maturing in 2023-24. As travel demand rebounds it is expected Hilton’s debt/adjusted EBITDA to improve to 3.6 times in 2022 from the elevated 5.4 level in 2021 (as a result of COVID-19), ending 2023 at 2.8 times.

Bulls Say

  • Hilton’s current mid-single-digit share of hotel industry rooms is set to increase, as the company controls about one fifth of the rooms under construction in the global hotel industry pipeline.
  • Hilton is well positioned to benefit from the increasing presence of next-generation travelers though emerging lifestyle brands Home2, Curio, Canopy, Tru, Tapestry Collection, Motto, and Tempo.
  • Hilton has a strong loyalty program with 139 million members at the end of June 2022 that constitutes around 60% of total room nights.

Company Description

Hilton Worldwide Holdings operates 1,074,791 rooms across its 18 brands addressing the midscale through luxury segments as of Dec. 31, 2021. Hampton and Hilton are the two largest brands by total room count at 28% and 21%, respectively, as of Dec. 31, 2021. Recent brands launched over the last few years include Home2, Curio, Canopy, Tru, and Tempo. Managed and franchised represent the vast majority of adjusted EBITDA, predominantly from the Americas regions.

(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.

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USA Market Outlook – 27 October 2022

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USA Market Outlook – 26 October 2022

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Fastenal has a first-mover advantage in both vending and on-site services, introducing the former in 2008 and the latter in 1992

Business Strategy & Outlook

Since opening its first fasteners store in 1967, Fastenal has built one of the largest industrial distribution businesses in the United States. For many years, Fastenal’s growth story was driven by its branch count, which now stands just under 1,800. While this expansive footprint is still an important component of Fastenal’s business model, other strategies–including expanding its product portfolio, its vending and inventory management services, and, most recently, its on-site program–have become increasingly important growth drivers. The benefits of Fastenal’s vending, inventory management, and on-site services are twofold: Not only do these services drive incremental revenue, they also embed Fastenal in its customers’ procurement processes, which supports higher retention rates and pricing power. Fastenal has a first-mover advantage in both vending and on-site services, introducing the former in 2008 and the latter in 1992 (although the on-site strategy did not become a focused strategy until the past few years), and a long growth runway for both offerings can be seen. In addition to growth through its vending and on-site initiatives, Fastenal is well positioned to benefit from customer consolidation trends. 

In recent years, customers have been consolidating their maintenance, repair, and operations, or MRO, spending with large distributors to leverage their purchasing power and increase operational efficiency. With its national scale, broad product portfolio, and inventory management services, Fastenal can capitalize on this trend and take market share from smaller and less capable distributors. Because Fastenal’s sales mix is increasingly skewing more toward large national accounts, on-site programs, and more price-competitive MRO products, the company’s gross margins are likely to come under pressure. However, the combination of higher sales volume and containment of selling, general, and administrative costs provides Fastenal the opportunity to realize strong operating leverage and expand operating margins. Fastenal’s operating margin is to reach 21% by midcycle year.

Financial Strengths

Fastenal has an outstanding debt balance of approximately $390 million. It is leveraged at only 0.1 times 2021 EBITDA, which is very conservative relative to the other industrial distributors. Fastenal’s earnings provide substantial headroom to service debt obligations. During fiscal 2021, Fastenal incurred only about $10 million of interest expense and generated about $1.4 billion of EBITDA, which equates to an extremely comfortable interest coverage ratio. Even with its expansive store footprint and cyclical end markets, Fastenal has a proven ability to generate free cash flow (defined as operating cash flow less capital expenditures) throughout the cycle. Indeed, it has generated positive free cash flow every year since 2003. Given its conservative balance sheet and consistent free cash flow generation, Fastenal’s financial health is satisfactory.

Bulls Say

  • Vending and on-site programs should provide a long growth runway for Fastenal.
  • Fastenal can capitalize on its national scale, broad product portfolio, and inventory-management services to take market share from smaller and less capable distributors. 
  • Despite serving cyclical end markets, Fastenal’s business model generates strong free cash flow throughout the cycle. Fastenal is likely to continue to use its cash flow to fund a shareholder-friendly capital allocation strategy.

Company Description

Fastenal opened its first fastener store in 1967 in Winona, Minnesota. Since then, Fastenal has greatly expanded its footprint as well as its products and services. Today, Fastenal serves its 400,000 active customers through approximately 1,760 branches, over 1,400 on-site locations, and 14 distribution centers. Since 1993, the company has added other product categories, but fasteners remain its largest category at about 30%- 35% of sales. Fastenal also offers customers supply-chain solutions, such as vending and vendor-managed inventory.

(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.

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Marriott has an attractive recurring-fee business model with high returns on invested capital and significant switching costs for property owners

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Business Strategy & Outlook

While COVID-19 and inflation have potential to impact near-term travel demand in many regions of the world, Marriott can be expected to expand room and revenue share in the hotel industry over the next decade. The constructive stance is driven by a favorable next-generation traveler position supported by renovated and newer brands, as Marriott has added several new brands since 2007 and renovated a meaningful percentage of core Marriott and Courtyard hotels in the past few years. Also, Marriott is having an industry-leading loyalty program, with over 160 million members (as of the end of 2021), which incentivizes third-party hotel owners to join the company’s brands. Additionally, the acquisition of Starwood (closed in September 2016) has strengthened Marriott’s long-term brand advantage, as Starwood’s global luxury portfolio complemented Marriott’s dominant upper-scale position in North America. A room growth for Marriott can be seen averaging mi single digits over the next decade (above the 1.8% increase model for the U.S. industry the next 10 years), supported by the company having 18% of all global industry rooms under construction, well above its high-single-digit existing unit share, as of the end of 2021. 

With 97% of the combined rooms managed or franchised, Marriott has an attractive recurring-fee business model with high returns on invested capital and significant switching costs for property owners. Managed and franchised hotels have low fixed costs and capital requirements, along with contracts lasting 20 years that have meaningful cancellation costs for owners. Cyclicality and overbuilding in the industry present risks for shareholders. Typically, U.S. lodging recoveries last five to nine years, but the upcycle ending 2019 lasted 10 years.

Financial Strengths

Marriott’s financial health remains in good shape, despite COVID-19 challenges. Marriott entered 2020 with debt/adjusted EBITDA of 3.1 times, as its asset-light business model allows the company to operate with low fixed costs and stable unit growth, but reduced demand due to COVID-19 caused the ratio to end the year at 9.1 times. During 2020, Marriott did not sit still; rather, it acted to increase its liquidity profile, including suspending dividends and share repurchases, deferring discretionary capital expenditures, raising debt, and receiving credit card fees from partners up front. As travel demand recovered in 2021, so too did Marriott’s debt leverage, with debt/adjusted EBITDA ending the year at 4.5 times. If demand once again plummeted, Marriott has enough liquidity to operate at zero revenue through 2023. The banking partners will work to provide Marriott any additional liquidity as needed, given the company holds a brand advantage (source of its narrow moat), which will drive healthy cash flow as travel demand returns. Marriott’s debt/adjusted EBITDA is to average 2.0 times over the next five years. The company is generating over $15.0 billion in free cash flow (operating cash flow minus capital expenditures) over the next five years (2022-26), which it will use to reduce debt, fund dividends equal to around 35% of its earnings during that time (dividend payments have resumed in 2022), as well as repurchasing shares (repurchase activity has started again in 2022).

Bulls Say

  • Marriott is positioned to benefit from the increasing presence of the next-generation traveler through emerging lifestyle brands Autograph, Tribute, Moxy, Aloft, and Element.
  • Marriott stands to benefit from worker flexibility driving higher long-term travel demand. The constructive stance is formed by higher income occupations being the most likely industries to continue to work from remote locations. 
  • Marriott has a high exposure to recurring managed and franchised fees, which have high switching costs and generate strong ROICs. 

Company Description

Marriott operates about 1.5 million rooms across roughly 30 brands. At the end of 2021, luxury represented 10% of total rooms, while full service, limited service, and timeshares were 43%, 46%, and 2% of all units, respectively. Marriott, Courtyard, and Sheraton are the largest brands, while Autograph, Tribute, Moxy, Aloft, and Element are newer lifestyle brands. Managed and franchised represent 97% of total rooms. North America makes up two thirds of total rooms. Managed, franchise, and incentive fees represent the vast majority of revenue and profitability for the company.

(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.

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USA Market Outlook – 25 October 2022

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USA Market Outlook – 24 October 2022

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USA Market Outlook – 21 October 2022

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USA Market Outlook – 20 October 2022

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Booking has built a leading network of hotel properties and other services, which drives an increasing user base

Business Strategy & Outlook

While COVID-19, inflation, and currency concerns continue to be overhangs on Booking’s near-term travel demand, the company is exhibiting solid financial health. Further, Booking’s global online travel agency leadership position is to increase over the next decade, driven by a healthy position in Asia-Pacific, continued leadership in Europe, and an expanding presence in vacation rentals, restaurant bookings, experiences, flights, and payments, all of which are backed by leading marketing and technology scale. Booking has built a leading network (the source of its narrow moat) of hotel properties and other services, which drives an increasing user base. This network effect is continuing to expand in both developed and emerging markets, as well as vertical markets such as rentals, attractions, flights, and payments (where it looks to focus near-term investment) resulting in a full connected trip offering. In developed markets, replicating Booking’s leading network in Europe is proving costly and time consuming for key competitors, given around 60% of all hotels in the region are small boutique establishments. In emerging markets, the firm has a presence in China with its Trip.com and Meituan-Dianping partnerships, and in its own Booking.com and Agoda.com platforms, which is crucial. This expanding network positions Booking well for the increasing global shift to booking via mobile applications. Booking.com is a top-10 travel iOS application in 157 markets versus 73 for Airbnb, and 28 for Expedia, according to App Annie on Oct. 3, 2022.

Focused entry from Google, Facebook, Alibaba, Amazon, and others could double the current handful of players that have dominant scale, leading to a meaningful impact on profitability. That said, replicating Booking’s network would require significant time and expense, and most of the aforementioned operators are to deploy a metasearch model (don’t control hotel relationships) versus directly competing against Booking’s OTA model (control hotel relationships).

Financial Strengths

Booking’s financial health is extremely sound, and the company has enough liquidity to operate at anemic travel demand levels while still investing in key growth areas into 2024. Debt/adjusted EBITDA was 1.5 times in 2019, but spiked to 13.7 times in 2020, due to incremental debt raised and weaker industry demand caused by the COVID-19 outbreak. That said, the ratio quickly declined to 3.8 times in 2021 and it is to reach 1.8 times in 2022, as the company pays down debt and travel recovers as the pandemic is contained.

Although Booking suspended share repurchases in 2020-21 due to near-term demand uncertainty stemming from COVID-19, it has resumed this shareholder return activity in 2022. The company is to complete its $15 billion authorization announced in May 2019 over the next few years. It is expected Booking to continue to generate strong free cash flow (operating cash flow minus capital expenditures) totaling almost $32 billion the next five years (2022-26). In addition to repurchases, Booking is to begin paying out 35% of its income in a form of a dividend starting in 2026, at that point the company will have solidified its position in current growth areas of the industry (vacation rentals, experiences bookings, payment facilitation, flight content, emerging market regions, and mobile applications). Finally, the firm could swallow a large acquisition in the space, should one present itself, given its free cash flow generation, cash, and untapped revolver position.

Bulls Say

  • Outsize online travel bookings growth witnessed the past few years in emerging markets should continue over the next 10 years, given low penetration levels and increased online usage, and Booking is well positioned.
  • Mobile application usage is increasing rapidly, and Booking has a dominant global position, which aids the 50%-plus of room nights that comes from direct traffic.
  • Booking is strengthening its network effect through organic initiatives and in fast-growing markets like experiences, vacation rentals and payments, resulting in a fully connected trip.

Company Description

Booking is the world’s largest online travel agency by revenue, offering booking and payment services for hotel and alternative accommodation rooms, airline tickets, rental cars, restaurant reservations, cruises, experiences, and other vacation packages. The company operates a number of branded travels booking sites, including Booking.com, Agoda, OpenTable, and Rentalcars.com, and has expanded into travel media with the acquisitions of Kayak and Momondo. Transaction fees for online bookings account for the bulk of revenue and profits.

(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.