Important Disclosures

Warning: The value of your investment may go down as well as up and you may lose some or all of the money you invest. Past performance is not a reliable guide to future performance. Investments denominated in a currency other than your base currency may be affected by changes in currency exchange rates.

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No report is intended to and does not constitute a personal recommendations or investment advice, nor does it provide the sole basis for any evaluation of the securities that may be the subject matter of the report. Specifically, the information contained in this report should not be taken as an offer or solicitation of investment advice, or to encourage the purchased or sale of any particular security. Not all recommendations are necessarily suitable for all investors and SFS recommend that specific advice should always be sought prior to investment, based on the particular circumstances of the investor either from your SFS investment adviser or another investment adviser.

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All estimates, views and opinions included in this research note constitute Seaspray Financial Services judgment as of the date of the note but may be subject to change without notice. Changes to assumptions may have a material impact on any recommendations made herein.

Unless specifically indicated to the contrary this research note has not been disclosed to the covered issuer(s) in advance of publication.

Past performance is not a reliable guide to future performance. The value of your investment may go down as well as up. Investments denominated in foreign currencies are subject to fluctuations in exchange rates, which may have an adverse affect on the value of the investments, sale proceeds, and on dividend or interest income. The income you get from your investment may go down as well as up. Figures quoted are estimates only; they are not a reliable guide to the future performance of this investment.

Conflicts of Interest & Share Ownership Policy
It is noted that research analysts’ compensation is impacted upon by overall firm profitability and accordingly may be affect ed to some extent by revenues arising other Seaspray Financial Services Ltd business units including Investment Management and Corporate Finance. Revenues in these business units may derive in part from the recommendations or views in this report. Notwithstanding, Seaspray Financial Services Ltd is satisfied that the objectivity of views and recommendations contained in this note has not been compromised. Nonetheless Seaspray Financial Services Ltd is satisfied that the impartiality of research, views and recommendations remains assured.

Analyst Certification
Each research analyst responsible for the content of SFS research notes, in whole or in part, certifies that: (1) all of the views expressed accurately reflect his or her personal views about those securities or issuers; and (2) no part of his or her compensation was, is, or will be, directly or indirectly, related to the specific recommendations or views expressed by that research analyst in the research note.

We have assessed the publication and have classed it as Research under MIFID II. All charges in relation to this publication will be borne by Seaspray Financial Services Ltd
EON.

SHARE-BASED MULTIPLES INCLUDE:

• Forward price/earnings (P/E) ratios, based on adjusted earnings
• Forward price/cash-earnings ratios
• price to net asset value (NAV) per share and dividend yields.

 ENTERPRISE-BASED VALUATION MULTIPLES INCLUDE:

• Forward earnings before depreciation, interest, tax, depreciation or amortisation (EBITDA) ratios
• Forward operating cash-flow ratios
• enterprise value (EV)/sales ratios and
• EV/invested capital ratios.

CYCLICAL CONSIDERATIONS

In the case of average earnings multiples, cognisance is given to the stage of the relevant industry cycle, as it may not be appropriate to apply average multiples towards the peak or trough of a cycle. In such cases, earnings multiples prevailing at the corresponding stages of previous cycles may be used.

ASSET-BASED VALUATIONS

In the case of asset-based valuations, reported net assets generally provide a floor to a company’s valuation. In many cases, however, company accounts can understate the underlying economic value of a company’s assets, and a ratio such as return on invested capital to weighted average cost of capital (ROIC/WACC) may provide a more appropriate indicator of the book value multiple.

COMPANY COMPARISONS

The ratings of similar companies may be taken into account in valuing shares, as indeed may average ratings for particular industry sectors..

CASH-FLOW BASED VALUATION

In discounted cash-flow (DCF) models a company’s forecast future free cash-flows are discounted by its weighted WACC.

SEASPRAY RECOMMENDATION SYSTEM

Seapray uses the terms “buy”, “neutral” and “sell”. The term “buy” means that the analyst expects the security to outperform the market by at least 10% over a twelve month period. The term “neutral” means that the analyst expects the security to inline with the market over the next twelve months. The term “sell” means that the security is expected to underperform the market over the next twelve months.