Morning Wrap

Today ’s Newsflow Equity Research 21 May 2019 08:30 BST Upcoming Events Select headline to navigate to article

Greencore Robust H1 keeps company on track to meet FY Company Events estimates 21-May Cranswick; FY19 Results First Derivatives; FY19 Results UDG Healthcare Evidence of stability in C&C, 2 Greencore; Interim results acquisitions Provident Financial; Q119 Trading Update UDG Healthcare; Q219 Results First Derivatives FY19 Results - Consistent Growth 22-May ; C & C Group; FY19 Results AIB Group Project Alder NPE sale on the radar in H2? Cairn Homes; AGM ; Q319 Trading Update Non-Standard Finance AGM trading statement highlights ; FY19 Results Marks & Spencer; FY19 Results strong growth and reduced impairments 23-May Hibernia REIT; FY19 Results Mitchells & Butlers; Q219 Results Building Materials Encouraging start to the second half for Topps Tiles UK Economic View What’s behind the persistently weak investment spending? UK Commercial Property Shaftesbury and Warehouse Economic Events REIT reporting FY 22-May PPI Apr19 28-May Retail Sales Apr19

United Kingdom 22-May CPI Apr19 PPI Apr19 Retail Price Index Apr19 23-May Retail Sales Apr19 28-May BBA Mortgage Approvals Apr19

United States

Europe

This document is intended for the sole use of Goodbody Stockbrokers and its affiliates

Goodbody Capital Markets Equity Research +353 1 6419221 Equity Sales +353 1 6670222 Bloomberg GDSE

Goodbody Stockbrokers UC, trading as “Goodbody”, is regulated by the Central Bank of Ireland. In the UK, Goodbody is authorised and subject to limited regulation by the Financial Conduct Authority. Goodbody is a member of the Irish Stock Exchange and the . Goodbody is a member of the FEXCO group of companies. For the attention of US clients of Goodbody Securities Inc, this third-party research report has been produced by our affiliate, Goodbody Stockbrokers Goodbody Morning Wrap

Greencore Robust H1 keeps company on track to meet FY estimates

Greencore has this morning reported H119 results with adjusted EBIT of £44.7m, marginally Recommendation: Buy ahead of our forecast of £44.5m and consensus (£44.4m). Growth remained particularly Closing Price: £2.23 strong within the to Go (FTG) categories, helping to deliver Group pro forma revenue growth of 5.4%. Encouragingly, adjusted operating profit margins improved by 40bps to Jason Molins +353-1-641 9141 6.4% (GBY 6.3%). Greencore noted that the UK trading environment remains challenging [email protected] driven by intense retail competition, cost inflation and cautious consumer demand. Notwithstanding the UK market backdrop, management note that it remains on track to

deliver its strategic and financial objectives. Furthermore, it notes that it sees “significant opportunity to broaden its proposition in categories, channels and capabilities, particularly in FTG categories”.

The strong performance of the Convenience UK & Ireland division was primarily driven by Food to Go (FTG), with H119 revenues increasing by 7% on a pro-forma basis (GBY 6.8%). This was broadly balanced between underlying product revenue growth (performance was ahead of the market and improved as the period progressed) and 3rd party distribution. For the remaining parts of the division, i.e. non-FTG such as chilled ready meals, soups and sauces, quiche, ambient sauces and pickles and Yorkshire Puddings, pro-forma revenues increased by 2.8% (GBY 3%). Strong volume growth was achieved in the cooking sauce business, however ready meals revenues were broadly unchanged.

Net debt at the end of the period came in at £284.1m with net debt/EBITDA at 1.9x. This compares to our estimate for £256m with the variance largely driven by a greater working capital outflow (-£51m vs. -£24m forecast) which related to: i) the now disposed US business which was not included in our numbers; ii) incremental working capital due to Brexit preparations; and iii) a modest outflow associated with a business exit in the period. For the full year, management has reiterated its guidance for net debt/ EBITDA to be at the bottom end of its medium target range of between 1.5x to 2.0x.

Overall, we consider today’s update as encouraging and at this juncture anticipate little change to our forecasts (GBY FY19 adj. EBIT £108.6m) ahead of the more seasonally important H2.

Home…

This document is intended for the sole use of Goodbody Stockbrokers and its affiliates

Page 2 21 May. 19 Goodbody Morning Wrap

UDG Healthcare Evidence of stability in C&C, 2 acquisitions

Having guided FY19 constant currency (cc) adjusted diluted EPS growth in the Recommendation: Buy range of 4% - 6% (GBS 4%), UDG has nudged that range up to 5% - 7% to Closing Price: £6.56 reflect the initial impact of two acquisitions announced this morning – US-based Putnam Associates and UK-based Incisive Health. Total consideration amounts to Gerry Hennigan +353-1-641 9274 $106m ($70m up-front), which, by our estimate, should enhance earnings by [email protected] c.5% on a full year basis. We would add that at c.7.5x historic operating profit (based on initial consideration) the multiples paid would appear to be within the

historic range. In terms of H1, UDG reported adj. EBITA of $68.3m, relative to our projection of $68.1m, resulting in cc adjusted diluted EPS of 21.2c (+5% YoY, +7% on a cc basis), compared to an estimate in our model of 20.5c. An exceptional charge of $15.2m was recorded for a claim from McKesson arising from the 2016 purchase of United Drug ($464m original transaction) and an interim dividend of 4.5c (+5% YoY) declared in line with expectations.

Relative to a medium-term EBITA growth target of 5% - 10%, Ashfield delivered a ‘flat’ underlying outturn for the year. A contributory factor on the Communications & Advisory side was the previously flagged investment in the STEM aXcellerate, which in H1 amounted to $2.3m. Stripping that out YoY growth of c.7% would have been recorded. Of note was evidence of stability on the Commercial & Clinical (C&C) side of Ashfield, an area of weakness in H2’18, reflected in a guided 5% YoY decline in FY19 EBITA for a segment of the business that typically accounts for c.20% - 25% of Group operating profit (GBS 22%). It recorded annual underlying growth of 1% amid good momentum in the US, offset by weakness in Europe.

On the packaging side, Sharp US maintained the momentum of H2’18 into H1’19 delivering YoY underlying growth in operating profit of 22%, albeit off a weak H1’18 comparison. Relative strength in the US, however, continues to mask a lack of scale in Europe, which recorded an operating loss of $1.6m for the six months to March.

Net debt declined from $61m in September to $57m in March (Net Debt / EBITDA of 0.3) signalling ample funding to add to the asset base, notwithstanding the outlay for the dealflow announced this morning. In the wake of a number of setbacks in FY18 we view this morning’s statement from UDG as providing greater

confidence and stability in the model. In particular, we would point to: (i) ongoing This document is intended for the sole use of Goodbody Stockbrokers and its affiliates strength in Sharp US; (ii) strength in Ashfield ex. Stem investment; and (iii) balance sheet strength, all of which are likely to be topics of discussion in the post results presentation (+44-207-192-8000, Participation Code 2746549).

Home…

Page 3 21 May. 19 Goodbody Morning Wrap

First Derivatives FY19 Results - Consistent Growth

Results for the year to February from First Derivatives (FD) this morning continue to deliver Recommendation: Buy growth across all revenue lines. While software growth continues to drive the topline as FD Closing Price: £30.30 leverages the processing capability of the Kx platform to expand into new verticals, the relative strength of FD’s traditional Capital Markets franchise was equally apparent with both Gerry Hennigan +353-1-641 9274 software and consulting up 17% YoY. Points of note in the statement, in our view, include: [email protected] (i) 28% growth in software licence sales; (iii) 85% YoY growth in the ‘Other Revenue’ line to £9.3m; (iii) deferred revenue growth of 31% (£19.5m); and (iv) stated confidence in the

pipeline “which is at record levels”.

Relative to our expectations of FY19 sales of £216.2m and EBITDA of £36.5m (£38.7m adding back share-based payments in line with the FD definition), the actual outcome delivered sales of £217.4m and EBITDA as per the FD definition of £38.9m. At a divisional level, reference is made in the statement of increasing adoption of cloud computing by its Financial Services client base, an apparent contributory factor in the 17% YoY growth in Fintech to £80.2m. Of note in that regard has been the launch of Kx on demand on both the Amazon Web Services Marketplace and Google Cloud Launcher and the establishment of new performance benchmarks for cloud analytics on the Google Cloud platform as independently tested by STAC.

A full year dividend of 27p (+13% YoY) has been declared, broadly in line with our estimate of 27.6p. Confidence in the outlook for consulting is evident in the addition of a further 375 graduates during the year bringing total headcount to more than 2,400 up from 2,200 the prior year. Net debt stood at £16.5m, broadly unchanged from the £16.2m recorded in February 2018, driven by FY19 cash conversion of 84% (£32.7m, 92% for H2) compared to our year-end forecast of £21.3m, suggesting a Net Debt / EBITDA multiple of just 0.4x. Confirmation is also provided that the 34.8% remaining interest in Kx Systems to be purchased in June at a cost of $53.8m will be met from existing facilities.

With FY19 results in-line with our forecasts we maintain our FY20 revenue and EBITDA expectations of £240m and £41.4m (43.7m as per the FD definition) respectively, while acknowledging a bias to the upside. We see little in the FY19 outcome to dissuade us from the growth potential to be derived from the apparent opportunities both within its traditional financial services franchise and via extension into ‘new verticals’. As such, we retain our Buy recommendation.

Home… This document is intended for the sole use of Goodbody Stockbrokers and its affiliates

Page 4 21 May. 19 Goodbody Morning Wrap

AIB Group Project Alder NPE sale on the radar in H2?

The Irish Times reports that AIB is considering bringing Project Alder, a possible c.€1bn NPE Recommendation: Buy portfolio to market in H2, in a bid to see the transaction close by year-end. The article Closing Price: €3.97 quotes sources that Alder is expected to be similar in scale to Project Beech which completed earlier this year (which was c.€1bn), though a source indicated a final decision on the sale Eamonn Hughes +353-1-641 9442 had not been made. It is anticipated that the NPE sale, if it progresses, will include small [email protected] business and other corporate loans. In December, AIB had a €6.1bn NPE book comprised of €3.3bn of mortgages (€2.5bn of PDH and €0.8bn of BTL), with €0.4bn of personal loans,

€1.4bn of property & construction loans and €1.0bn of Corporate & SME. It appears that the Alder portfolio will emanate from the latter categorisation, whilst Beech was principally underpinned by investment asset properties. At the end of Q1, AIB noted that NPEs had reduced to €4.8bn, or just 7.6% of loans, down from c.10% at year end.

Our current forecasts for FY19f comprise NPE reductions of €2.8bn to €3.3bn, equivalent to a 5.4% NPE ratio. Within this, we have estimated disposals of €1.3bn, so should Alder proceed, this holds the potential to drive NPEs below the €3bn figure at end FY19f, with the NPE ratio below 5%. Our base case on all NPE transaction is CET1 neutral, bearing in mind the prior three large-scale disposals by AIB have all been CET1 accretive (provisioning has been adequate/better and from RWA relief).

Further disposals would help de-risk the balance sheet, help lower the P2R in time and reduce the headwinds from calendar provisioning (which we estimate at c.60bps). This continues to strengthen the capital return story at AIB to allow the bank to potentially unlock some of the 17.5% CET1 ratio in 2020. AIB management recently noted that it would engage with investors in H219 with a view to garnering preferences in relation to potential capital returns.

Home…

This document is intended for the sole use of Goodbody Stockbrokers and its affiliates

Page 5 21 May. 19 Goodbody Morning Wrap

Non-Standard Finance AGM trading statement highlights strong growth and reduced impairments

NSF published a short trading update this morning ahead of its AGM later today and while Recommendation: Buy there were no numbers given in the release, the recent trends in the business are all Closing Price: £0.48 encouraging regardless. The statement notes that the Group has seen continued strong loan growth since the start of the year while, importantly, “there has been a further year-on-year John Cronin +353-1-641 9187 reduction in the overall rate of impairment”. The clear communication of a reduction in the [email protected] overall impairment rate will be welcomed as this has been a key focus point in each of the recent non-standard lender updates. Significant progress has also been made in each of the

divisions with Everyday Loans opening all seven branches scheduled for this year (bringing the total branch network to 73), benefiting from accompanying strong loan growth as a result, while the recent strong loan growth trends in the guarantor loans division has also continued. Focusing on Loans At Home, the business saw an increase in its risk-adjusted margin due to a shift in mix to shorter-term loans which in effect increases the revenue yield.

The statement this morning also, unsurprisingly, provides an update on the Offer for PFG, which NSF declared unconditional as to acceptances on 15th May. The statement notes that NSF continues to engage with PFG shareholders and is "working towards satisfying all of the other outstanding Offer conditions", with a 5th June deadline to declare the Offer wholly unconditional. The remaining hurdles for NSF, having brought down the Acceptance condition from 90% to 50%, are regulatory approval from both the FCA and PRA and receipt of CMA approval. While NSF has previously provided positive soundings on the dialogue with the regulators with the 5th June date in mind, it will have to elect to waive the CMA condition for the Offer to proceed which means residual PFG shareholders are blind to any potential redress as a result of the combination. As a result, it is likely that NSF will face continued opposition from residual PFG shareholders (with just c.8% of "Independent" shareholders accepting the deal), with Schroders reiterating their position that "it is in the best interest of those PFG shareholders who are not also shareholders in NSF to reject the NSF Offer and continue to hold premium listed PFG stock".

Overall, the statement notes that the Board remains optimistic about the full year outlook and we believe the positive tone struck this morning, particularly regarding impairments, will be welcomed this morning. Focusing on the Offer, we believe that while residual shareholders may feel under pressure to accept the Offer in the coming weeks given it is seemingly a "foregone conclusion", the implied discount

of 10.7% on PFG's closing price yesterday suggests that the market believes there This document is intended for the sole use of Goodbody Stockbrokers and its affiliates is more at play here.

Home…

Page 6 21 May. 19 Goodbody Morning Wrap

Building Materials Encouraging start to the second half for Topps Tiles

Topps Tiles has reported its HY results to the end of March. At a headline level, the results David O’Brien are all broadly in line with the post-close trading update at the start of April. In terms of +353-1-641 9230 current trading, the company has reported a solid start to the second half, with +1.2% lfl david.a.o’[email protected] sales growth in the 7 weeks to 18 May. This compares to 0.2% in Q2 (adjusted for timing of Robert Eason Easter) and -1.4% in Q1, therefore an improvement in the trend. Indeed, management +353-1-641 9271 notes that group trading has continued the positive trend seen in Q2 into the second half but [email protected] make the usual caveat that it is retaining a “prudent view” to the remainder of the year. Sarah Stokes +353-1-641 0482 Overall the results suggest that, despite all the negative economic rhetoric in the [email protected] UK, the end market is holding up well. Indeed, an update from Galliford Try

management this morning also pointed to “stable market conditions”. This gives us Sean Blaney comfort in the context of the UK merchants and housebuilders. +353-1-6419222 [email protected]

Home…

This document is intended for the sole use of Goodbody Stockbrokers and its affiliates

Page 7 21 May. 19 Goodbody Morning Wrap

UK Economic View What’s behind the persistently weak investment spending?

One of the apparent conundrums in the performance of the UK economy since the EU Dermot O’Leary referendum in 2016 is the starkly different performances of investment and consumer +353-1-641 9167 [email protected] spending. While the latter has continued to perform relatively well on the back of ongoing gains in employment and (more recently) better real wage growth, the former has been persistently weak, particularly in 2018. In a speech yesterday entitled “Investment and uncertainty: the value of waiting for news”, Bank of England MPC member Ben Broadbent makes a compelling case for the reasons behind these trends.

The reasons focus on the uncertainties, risks and rates of return on investment projects. When firms are planning on investing, rising uncertainty can be seen as rising the hurdle rate on the expected rate of return on that investment. Because investment is difficult to reverse, there is value in waiting on the relevant news to become known before pressing the button on that investment decision. When the date by which that uncertainty will pass is supposedly known, the incentives to wait increase the closer that date approaches. In a Brexit context, this may explain why investment weakened progressively throughout 2018. Indeed, the speech states that investment was weakest among those firms that expected an early resolution to the Brexit process.

The key conclusion here is that a series of rolling delays to the Brexit process will result in ongoing delays to the UK’s exit from the EU. One could also apply that to investment decisions in those with close trading and economic ties with the UK, including Ireland. He makes it clear that this does not imply that one should try to remove the uncertainty at all costs, but certainty on the outcome, even if it is well into the future, would help to unblock some of the investment spending that firms have been holding off on in recent years.

Home…

This document is intended for the sole use of Goodbody Stockbrokers and its affiliates

Page 8 21 May. 19 Goodbody Morning Wrap

UK Commercial Property Shaftesbury and Warehouse REIT reporting FY

A diverse range of UK property results this morning, but our focus is on the unique London Colm Lauder retail vehicle that is Shaftesbury and the fast growing last-mile logistics investor Warehouse +353-1-641 6042 REIT. Both reported robust FY results this morning with valuation and rental income growth [email protected] maintained despite more restrictive growth conditions in the UK market. Cian O’Sullivan

+353-1-641 9281 Shaftesbury’s resilient performance following notable valuation declines for the majority of [email protected] other retail property investors who have reported in recent months. The driver behind this remains the uniqueness of its West End portfolio with a diverse range of tenants, exceptional Eamonn Hughes +353-1-641 9442 footfall and high leisure concentration. The portfolio saw valuation growth of 1.1% over the [email protected] last year with the majority of that coming in H2 as London yields were tempered as the

probability of a no-deal Brexit increased.

The value growth helped drive EPRA NAV up 0.4% to £9.95 per share meaning Shaftesbury is now trading at a 14% discount to NAV, considerably wider than its potentially more exposed London office focused equivalents. In sharp contrast to its office sector peers however, Shaftesbury continued to achieve ERV growth in its portfolio with average market rents rising a wholesome 3.2% on a like-for-like basis.

The irreplaceable Shaftesbury portfolio, with its broad range of floorplates in highly trafficked West End locations, has delivered a resilient FY19 as occupiers and tenants hone their de-risking strategies for retail property in the UK. The modest level of debt (LTV steady at 22.8%) and long weighted average debt to maturity (9.7 years) gives us comfort in the face of valuation uncertainty. This is a portfolio that will remain in demand.

Warehouse REIT, the UK specialists in urban warehouses also announced its FY19 results today with the read across positive for peers in the space, namely Harworth Group with its “Beds & Sheds” philosophy. EPRA NAV per share rose 7.4% to 109.7p, driven by like-for-like portfolio value increasing by 4.3%. Passing rental growth has been supportive (2.1% like- for-like) in a sector noted to have ongoing robust demand and constrained supply, with Warehouse REIT having surpassed March 2018 ERVs by 13%. There was 1-bp of yield compression in the portfolio valued at £307.4m during the year, with net initial yield edging down to 6.1%. In the context of a wider UK property market that has largely been flat to negative, maintaining comfortable growth in values and rents highlights the relative

attractiveness of industrials and the heterogeneity of performance within the wider real This document is intended for the sole use of Goodbody Stockbrokers and its affiliates estate asset class.

Warehouse REIT’s FY results point to a strong performance in the industrial occupier market, reiterating the trend being seen in benchmark indices of industrial outperformance. Demand for Warehouse’s properties is being attributed to the ongoing growth in e-commerce, and record employment levels, with confidence reaffirmed by the post period end placing raising £76.5m, providing total fire power of £120m for investment. As Warehouse REIT owns several assets in the key regions of the Midlands, North East and North West, we see the read across as positive for Harworth Group.

Home…

Page 9 21 May. 19 Goodbody Morning Wrap

Issuer & Analyst Disclosures

Analyst Certification The named Research Analyst certifies that: (1) All of the views expressed in this research report accurately reflect my personal views about any and all of the subject securities and issuers. (2) No part of my remuneration was, is, or will be, directly or indirectly, related to the specific recommendations or views expressed by me in this report.

Regulatory Information Goodbody Stockbrokers UC, trading as “Goodbody”, is regulated by the Central Bank of Ireland. In the UK, Goodbody is authorised and subject to limited regulation by the Financial Conduct Authority. Goodbody is a member of the Irish Stock Exchange and the London Stock Exchange. Goodbody is a member of the FEXCO group of companies. This publication has been approved by Goodbody. The information has been taken from sources we believe to be reliable, we do not guarantee their accuracy or completeness and any such information may be incomplete or condensed. All opinions and estimates constitute best judgement at the time of publication and are subject to change without notice. The information, tools and material presented in this document are provided to you for information purposes only and are not to be used or considered as an offer or the solicitation of an offer to sell or to buy or subscribe for securities.

Conflicts of Interest Goodbody has procedures and policies in place to identify and manage any potential conflicts of interest that arise in connection with its research business. Goodbody analysts and other staff who are involved in the preparation and dissemination of research operate and have a management reporting line that is independent to its business. Information barriers are in place between the Corporate Finance arm and the Research arm to ensure that any confidential and or price sensitive information is handled in an appropriate manner.

Our Investment Research Conflicts of Interest Policy is available at Conflicts of Interest

Investors should be aware, that, where appropriate, research may be disclosed to the issuer(s) in advance of publication, in order to correct factual inaccuracies only and not to materially amend the research in any way. Goodbody is satisfied that it has operational procedures in place, which ensure that such disclosures will not compromise the report’s objectivity.

Goodbody has provided investment banking services to AIB Group, Applegreen, ARYZTA, Cairn Homes, Datalex, Draper Esprit, FBD Holdings, First Derivatives, , Greencore, Hibernia REIT, ICG, IFG Group, IPL Plastics, Kingspan, OneSavings Bank, Origin Enterprises, Paddy Power Betfair, , Rank Group, Supermarket Income REIT and UDG Healthcare in the past 12 months.

Goodbody Stockbrokers acts as corporate broker to AIB Group, Applegreen, ARYZTA, Cairn Homes, Datalex, Draper Esprit, FBD Holdings, First Derivatives, Grafton Group, Greencore, Hibernia REIT, ICG, IFG Group, IPL Plastics, Kingspan, Origin Enterprises, Paddy Power Betfair, Playtech, Rank Group, UDG Healthcare, and Yew Grove REIT The list of companies for which Goodbody acts as market maker and on which it provides research, is available at Regulatory Disclosures

This document is intended for the sole use of Goodbody Stockbrokers and its affiliates

Page 10 21 May. 19 Goodbody Morning Wrap

Other disclosures

We would like to inform you that Eamonn Hughes holds shares in AIB Group We would like to inform you that Robert Eason holds shares in Kingspan We would like to inform you that Robert Eason holds shares in SIG

A description of this company is available at Company Descriptions

All prices used in this report are as at close of business of the previous working day unless otherwise indicated.

A summary of our standard valuation methods are available at Valuation Methodologies

A summary of share price recommendations and whether material investment banking services have been provided to these companies is available at Regulatory Disclosures

Other important disclosures are available at Regulatory Disclosures

Goodbody updates its recommendations on a regular basis. A breakdown of all recommendations provided by Goodbody is available at Regulatory Disclosures Where Goodbody has provided investment banking services to an issuer, details of the proportion of buys, holds and sells attributed to that issuer will also be included. This is updated on a quarterly basis.

The date on which stock recommendations were first released for all stocks mentioned in this report are available at https://www.goodbody.ie/assets/Reg_Disclosures.pdf. If a different recommendation has been made in the previous twelve months, this will also be disclosed here.

Recommendation Definitions Goodbody uses the terms “Buy”, “Sell” and “Hold. The term “Buy” means that the analyst expects the security to appreciate in excess of 10% over a twelve month period. The term “Sell” means that the security is expected to decline in excess of 10% over the next twelve months. The term “Hold” means that the analyst expects the security to neither appreciate more than 10%, or depreciate more than 10% over the next twelve months.

On 26th November, 2012, the terms “Add” and “Reduce” were removed from the Recommendation Definitions and both were replaced with the “Hold” recommendation. Any Previous Recommendation that refers to either an “Add” means that the analyst expected the security to appreciate by up to 15% over a twelve month period. Any Previous Recommendation to “Reduce” means that the analyst expected the security to decline by up to 15% over the next twelve months.

In the event that a stock is delisted the firm will automatically cease coverage. If however the firm ceases to cover a stock for any other reason the firm will disclose this fact.

Distribution of research to clients of Goodbody Securities Inc (GSI) in the US

GSI distributes third-party research produced by its affiliate, Goodbody GSI is a member of FINRA and SIPC GSI does not act as a market-maker.

This information was current as of the last business day of the month preceding the date of the report. An affiliate of GSI may have acted, in the past 12 months, as lead manager/co-lead manager of a publicly disclosed offer of the securities in this company. Investors should be aware that an affiliate of GSI may have provided investment banking or non-investment-banking services to, and received compensation from this company in the past 12 months or may provide such services in the next three months. The term investment banking services includes acting as broker as well as the provision of corporate finance services, such as underwriting and managing or advising on a public offer. All transactions by US persons involving securities of companies discussed in this report are to be

effected through GSI. This document is intended for the sole use of Goodbody Stockbrokers and its affiliates

Disclaimer While all reasonable care has been taken in the production and dissemination of this report it is not to be relied upon in substitution for the exercise of independent judgement. Nothing in this report constitutes investment, legal, accounting or tax advice, or a representation that any investment or strategy is suitable or appropriate to your individual circumstances, or otherwise constitutes a personal recommendation to you.

Private customers having access, should not act upon it in anyway but should consult with their independent professional advisors. The price, value and income of certain investments may rise or may be subject to sudden and large falls in value. You may not recover the total amount originally invested. Past performance should not be taken as an indication or guarantee of future performance; neither should simulated performance. The value of securities may be subject to exchange rate fluctuation that may have a positive or adverse effect on the price or income of such securities.

All material presented in this report, unless specifically indicated otherwise is copyright to Goodbody. None of the material, nor its content, nor any copy of it, may be altered in any way, transmitted to, copied or distributed to any other party, without the prior express written permission of Goodbody.

Goodbody, Ballsbridge Park, Ballsbridge, Dublin 4, Ireland T (+353 1) 6670400 W www.goodbody.ie E [email protected] Page 11 21 May. 19