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Osirium Technologies — Moving beyond PAM

Osirium Technologies (LN: OSI)

Last close As at 20/12/2024

8.00

— 0.00 (0.00%)

Market capitalisation

4m

More on this equity

Research: TMT

Osirium Technologies — Moving beyond PAM

Osirium reported FY18 revenues and operating loss slightly ahead of our forecasts. Although bookings intake was lower than expected in H218, the increase in proofs of concept underway and the number of customers using PxM Express support accelerating bookings growth in FY19. By broadening the product offering with the recently launched secure IT process automation solution, Opus, and the soon to be launched endpoint privilege management (EPM) solution, Osirium is growing its addressable market and creating upsell opportunities for its ‘land and expand’ strategy.

Katherine Thompson

Written by

Katherine Thompson

Director

TMT

Osirium Technologies

Moving beyond PAM

FY18 results

Software & comp services

17 May 2019

Price

77.5p

Market cap

£11m

Net cash (£m) at end FY18

2.4

Shares in issue

13.6m

Free float

92%

Code

OSI

Primary exchange

AIM

Secondary exchange

N/A

Share price performance

%

1m

3m

12m

Abs

(17.6)

(35.7)

(48.8)

Rel (local)

(16.3)

(36.9)

(46.1)

52-week high/low

151.5p

77.5p

Business description

UK-based Osirium Technologies designs and supplies subscription-based cyber security software. Its PxM platform includes privileged access management, privileged task management, privileged session management and privileged behaviour management and it has recently launched Opus for secure process automation.

Next events

H119 trading update

July

Analyst

Katherine Thompson

+44 (0)20 3077 5730

Osirium Technologies is a research client of Edison Investment Research Limited

Osirium reported FY18 revenues and operating loss slightly ahead of our forecasts. Although bookings intake was lower than expected in H218, the increase in proofs of concept underway and the number of customers using PxM Express support accelerating bookings growth in FY19. By broadening the product offering with the recently launched secure IT process automation solution, Opus, and the soon to be launched endpoint privilege management (EPM) solution, Osirium is growing its addressable market and creating upsell opportunities for its ‘land and expand’ strategy.

Year end

Revenue (£m)

EBITDA*
(£m)

EPS*
(p)

DPS
(p)

P/E
(x)

EV/sales
(x)

12/17

0.65

(1.61)

(18.1)

0.0

N/A

12.5

12/18

0.95

(1.77)

(18.1)

0.0

N/A

8.5

12/19e

1.40

(1.68)

(16.8)

0.0

N/A

5.8

12/20e

2.07

(1.27)

(15.7)

0.0

N/A

3.9

Note: *EBITDA and EPS are normalised, excluding amortisation of acquired intangibles, exceptional items and share-based payments.

FY18 revenue growth outpaced bookings growth

FY18 revenue of £0.95m (+48% y-o-y) was slightly ahead of our forecast, as was the EBIT loss of £2.67m. Bookings growth of 34% undershot our 50% forecast; growth in the pipeline and proofs of concept underway support faster growth in FY19. We have revised our forecasts to reflect the cost base in FY18 and higher capitalised development costs in FY19 and FY20. We are forecasting a net debt position of £33k by the end of FY19 and note that the company is considering a fundraise later this year to strengthen the balance sheet and accelerate growth.

Strategy on track

Osirum’s strategy to drive growth is focused on its commitment to innovation, its customer focus and market expansion. Over the course of 2018, Osirium expanded its customer base to include new verticals and continued upselling to existing customers. Today it has announced a three-year contract renewal with its largest customer which increases the number of devices secured by 50%. The recently announced launch of Opus builds on Osirium’s innovative privileged task automation solution and the company is soon to launch an EPM solution in conjunction with RazorSecure. Both products widen Osirium’s addressable market and provide additional upsell opportunities with existing customers.

Valuation: Bookings key to upside

After recent weakness in the share price, Osirium is trading in line with peers on an EV/sales basis. We have performed a reverse DCF to analyse the assumptions factored into the current share price, using a WACC of 11% and a terminal growth rate of 3%. We estimate the share price is discounting average annual bookings growth of 22% for FY22–28, break-even EBITDA in FY23, average EBITDA margins of 12.0% for FY22–28 and a terminal EBITDA margin of 35%. In our view, bookings growth will be the key driver of share price performance.

Review of FY18 results

Exhibit 1: FY18 results highlights

£'k

FY17a

FY18e

FY18a

Diff

y-o-y

Bookings

876.3

1,314.5

1,177.3

(10.4%)

34.3%

Revenues

647.6

922.6

957.5

3.8%

47.9%

EBITDA

(1,609.4)

(1,995.5)

(1,767.3)

(11.4%)

9.8%

EBITDA margin

-248.5%

-216.3%

-184.6%

(14.7%)

Normalised operating profit

(2,296.8)

(2,759.0)

(2,674.8)

(3.1%)

16.5%

Normalised operating profit margin

-354.7%

-299.1%

-279.4%

19.7%

Reported operating profit

(2,296.8)

(2,759.0)

(2,674.8)

(3.1%)

16.5%

Reported operating margin

-354.7%

-299.1%

-279.4%

19.7%

Normalised PBT

(2,292.6)

(2,757.0)

(2,675.4)

(3.0%)

16.7%

Reported PBT

(2,292.6)

(2,757.0)

(2,675.4)

(3.0%)

16.7%

Normalised net income

(1,883.2)

(2,343.5)

(2,267.8)

(3.2%)

20.4%

Reported net income

(1,883.2)

(2,343.5)

(2,267.8)

(3.2%)

20.4%

Normalised basic EPS (p)

(18.12)

(18.38)

(18.14)

(1.3%)

0.1%

Normalised diluted EPS (p)

(18.12)

(18.38)

(18.14)

(1.3%)

0.1%

Reported basic EPS (p)

(18.12)

(18.38)

(18.14)

(1.3%)

)0.1%

Net debt/(cash)

(1,023.8)

(2,494.9)

(2,386.6)

(4.3%)

133.1%

Source: Osirium, Edison Investment Research

Osirium saw revenue growth of 48% in FY18, with revenues coming in slightly ahead of our forecast. In total, 87% of revenues came from annual subscription licence fees and the remaining 13% from services. Total staff costs were 4% lower than we forecast and a higher capitalisation of development costs (£1.44m versus our £1.35m and £1.25m in FY17) meant net staff costs were £195k lower than forecast, resulting in EBITDA 11% ahead of our forecast.

Bookings growth was 34% y-o-y, with H1 y-o-y growth of 37% and H2 growth of 32%. This was lower than our estimate of 50% bookings growth for the year. Deferred revenue stood at £725k at the end of FY18, up from £505k at the end of FY17.

Amortisation of capitalised development costs was higher than forecast due to higher spend in the year, resulting in a reported operating loss £84k better than our forecast. The company expects to claim for an R&D tax credit of £408k for the year.

Net cash at year end was £2.4m, slightly below our forecast.

Business update

Product development: Opus launched, EPM solution imminent

On 1 May, Osirium launched a new secure process automation solution, Opus (Opus: taking the work out of IT security, 8 May), which builds on its privileged task automation solution. Several customers are piloting the technology and the company expects to sign up its first paying customer in the next quarter. The new technology widens Osirium’s addressable market, as it can be used with other password vaults and does not depend on the customer using Osirium’s PxM platform. Osirium will sell Opus on a subscription basis, either standalone or alongside its PxM platform.

Last year, Osirium announced a strategic technology partnership with RazorSecure to jointly deliver cybersecurity solutions specifically for the critical national infrastructure (CNI), transport and industrial Internet of Things markets. RazorSecure develops machine-learning based EPM software, which builds a baseline of ‘normal’ activity to define what processes and applications are expected and how they are likely to use resources, therefore making it easier to identify rogue behaviour. RazorSecure’s technology is used in CNI, particularly in the rail network, where it is able to detect intrusion and generate automated responses on systems that are not always connected. RazorSecure is adapting its EPM software for use by Osirium, which will start to resell it as part of its PxM platform by the end of Q219. EPM functionality has been requested by customers and this relationship brings it to Osirium’s product range faster than if Osirium were to develop it in-house.

Broadening the customer base geographically and by industry

Osirium signed up 14 new customers during 2018 and made an additional 12 upsells and renewals. The total number of customers using Osirium’s technology stood at 59 at the end of FY18, of which 15 were using PxM Express, Osirium’s free product. The company lost one customer in 2018, worth £6.5k. Through the course of 2018, Osirium added customers in new verticals, including energy, manufacturing, travel and transport services and added new customers in sectors where it already had a presence (financial services, retail, NHS). Since the year end, the company announced it has signed up a UK IT service provider to the public sector and its first customer in North America.

Today, the company has announced that its largest customer, a leading global asset manager, has signed a three-year contract extension for use of the full PxM platform and has increased the number of devices secured from 3,000 to 4,500. The renewed contract will contribute revenues from this year and will be recognised over the three-year contract period.

Osirium saw as many companies entering into a PoC in Q119 as in the whole of 2018. Although Osirium’s PxM Express offers a simple and free way for customers to trial the product, it is also seeing companies bypassing it and going straight to PoC. Management views the number of PoCs underway as a key lead indicator of future sales – the obvious interest from the customer combined with close interaction with Osirium during the PoC results in a high level of conversion to signed contracts. The company saw its unweighted pipeline increase significantly over 2018, up from 145 prospects worth £1.9m at the end of FY17 to 300 prospects worth £3.3m by the end of FY18.

Additions to the management team

The company has made some changes to its management team. A new marketing director, Chris Heslop, joined in H218. Since the year end, the company has made two hires: sales director Stuart McGregor and customer services director Barry Scott. Both recent hires have experience in the PAM market: Stuart worked at Bomgar as sales director for UK and Northern Europe and Barry at Centrify as EMEA CTO.

Outlook and changes to forecasts

The company expects to see further growth in both subscription and services revenues in FY19. Demand for its technology is supported by a growing awareness of the need to protect privileged accounts, with drivers including high profile cyber-attacks, GDPR, the continued growth in IT outsourcing and use of the cloud, and the growing number of connected devices (Internet of Things).

Trading in the first four months of FY19 has been in line with management expectations. The company may carry out a fundraise later this year to strengthen the balance sheet and accelerate sales growth.

We have revised our forecasts to reflect FY18 results. We assume that capitalised development costs rise each year reflecting increased development spend as products such as Opus and EPM are introduced.

Exhibit 2: Changes to forecasts

£'k

FY19e

FY19e

FY20e

FY20e

Old

New

Change

y-o-y

Old

New

Change

y-o-y

Bookings

1,840.3

1,883.7

2.4%

60.0%

2,484.4

2,543.0

2.4%

35.0%

Revenues

1,406.7

1,404.2

(0.2%)

46.7%

1,957.9

2,072.8

5.9%

47.6%

EBITDA

(1,816.0)

(1,679.7)

(7.5%)

(5.0%)

(1,432.6)

(1,273.8)

(11.1%)

(24.2%)

EBITDA margin

-129.1%

-119.6%

(7.3%)

-73.2%

-61.5%

(16.0%)

Normalised operating profit

(2,775.8)

(2,677.3)

(3.5%)

0.1%

(2,581.6)

(2,500.2)

(3.1%)

(6.6%)

Normalised operating profit margin

-197.3%

-190.7%

6.7%

-131.8%

-120.6%

11.2%

Reported operating profit

(2,775.8)

(2,677.3)

(3.5%)

0.1%

(2,581.6)

(2,500.2)

(3.1%)

(6.6%)

Reported operating margin

-197.3%

-190.7%

6.7%

-131.8%

-120.6%

11.2%

Normalised PBT

(2,774.8)

(2,677.3)

(3.5%)

0.1%

(2,581.6)

(2,500.2)

(3.1%)

(6.6%)

Reported PBT

(2,774.8)

(2,677.3)

(3.5%)

0.1%

(2,581.6)

(2,500.2)

(3.1%)

(6.6%)

Normalised net income

(2,358.6)

(2,275.7)

(3.5%)

0.3%

(2,194.3)

(2,125.2)

(3.1%)

(6.6%)

Reported net income

(2,358.6)

(2,275.7)

(3.5%)

0.3%

(2,194.3)

(2,125.2)

(3.1%)

(6.6%)

Normalised basic EPS (p)

(17.42)

(16.79)

(3.6%)

(7.4%)

(16.21)

(15.68)

(3.3%)

(6.6%)

Normalised diluted EPS (p)

(17.42)

(16.79)

(3.6%)

(7.4%)

(16.21)

(15.68)

(3.3%)

(6.6%)

Reported basic EPS (p)

(17.42)

(16.79)

(3.6%)

(7.4%)

(16.21)

(15.68)

(3.3%)

(6.6%)

Net debt/(cash)

(28.1)

33.2

N/A

N/A

1,972.6

2,275.1

15.3%

6750.1%

Source: Edison Investment Research


Exhibit 3: Financial summary

£'k

2013

2014

2015

2016

2017

2018

2019e

2020e

31-December

IFRS

IFRS

IFRS

IFRS

IFRS

IFRS

IFRS

IFRS

INCOME STATEMENT

Revenue

 

 

120.0

207.0

290.2

477.6

647.6

957.5

1,404.2

2,072.8

EBITDA

 

 

(366.7)

(327.1)

(377.9)

(1,136.7)

(1,609.4)

(1,767.3)

(1,679.7)

(1,273.8)

Normalised operating profit

 

 

(679.4)

(714.3)

(790.7)

(1,725.6)

(2,296.8)

(2,674.8)

(2,677.3)

(2,500.2)

Amortisation of acquired intangibles

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

Exceptionals

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

Share-based payments

0.0

(184.3)

(56.4)

(96.9)

0.0

0.0

0.0

0.0

Reported operating profit

(679.4)

(898.5)

(847.1)

(1,822.5)

(2,296.8)

(2,674.8)

(2,677.3)

(2,500.2)

Net Interest

(35.2)

5.7

(9.9)

9.7

4.2

(0.6)

0.0

0.0

Joint ventures & associates (post tax)

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

Exceptionals

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

Profit Before Tax (norm)

 

 

(714.6)

(708.5)

(800.7)

(1,715.9)

(2,292.6)

(2,675.4)

(2,677.3)

(2,500.2)

Profit Before Tax (reported)

 

 

(714.6)

(892.8)

(857.1)

(1,812.8)

(2,292.6)

(2,675.4)

(2,677.3)

(2,500.2)

Reported tax

137.7

134.1

121.0

453.3

409.4

407.6

401.6

375.0

Profit After Tax (norm)

(576.9)

(602.1)

(687.6)

(1,286.9)

(1,883.2)

(2,267.8)

(2,275.7)

(2,125.2)

Profit After Tax (reported)

(576.9)

(758.7)

(736.0)

(1,359.6)

(1,883.2)

(2,267.8)

(2,275.7)

(2,125.2)

Minority interests

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

Discontinued operations

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

Net income (normalised)

(576.9)

(602.1)

(687.6)

(1,286.9)

(1,883.2)

(2,267.8)

(2,275.7)

(2,125.2)

Net income (reported)

(576.9)

(758.7)

(736.0)

(1,359.6)

(1,883.2)

(2,267.8)

(2,275.7)

(2,125.2)

Basic ave. number of shares outstanding (m)

0

1

10

10

10

13

14

14

EPS - normalised (p)

 

 

N/A

N/A

(6.61)

(12.38)

(18.12)

(18.14)

(16.79)

(15.68)

EPS - normalised fully diluted (p)

 

 

N/A

N/A

(6.61)

(12.38)

(18.12)

(18.14)

(16.79)

(15.68)

EPS - basic reported (p)

 

 

(296.36)

(144.92)

(7.08)

(13.08)

(18.12)

(18.14)

(16.79)

(15.68)

Dividend (p)

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

Revenue growth (%)

26.3

72.6

40.2

64.6

35.6

47.9

46.7

47.6

EBITDA Margin (%)

N/A

N/A

N/A

N/A

N/A

N/A

N/A

N/A

Normalised Operating Margin

N/A

N/A

N/A

N/A

N/A

N/A

N/A

N/A

BALANCE SHEET

Fixed Assets

 

 

815.7

805.2

799.7

1,178.8

1,812.1

2,360.2

2,923.7

3,333.9

Intangible Assets

808.6

795.7

793.3

1,134.5

1,731.9

2,307.2

2,864.6

3,268.6

Tangible Assets

7.2

9.5

6.4

44.3

80.2

52.9

59.1

65.4

Investments & other

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

Current Assets

 

 

109.3

269.2

428.1

3,953.7

1,646.4

3,134.6

836.5

(1,185.6)

Stocks

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

Debtors

77.2

218.6

154.6

380.9

622.6

748.0

869.7

1,089.5

Cash & cash equivalents

32.2

50.6

273.5

3,572.8

1,023.8

2,386.6

(33.2)

(2,275.1)

Other

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

Current Liabilities

 

 

(235.2)

(294.2)

(365.0)

(648.5)

(857.7)

(1,170.3)

(1,711.4)

(2,224.7)

Creditors

(235.2)

(294.2)

(365.0)

(648.5)

(857.7)

(1,170.3)

(1,711.4)

(2,224.7)

Tax and social security

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

Short term borrowings

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

Other

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

Long Term Liabilities

 

 

(952.5)

(487.6)

(163.3)

0.0

0.0

0.0

0.0

0.0

Long term borrowings

(789.0)

(323.7)

0.0

0.0

0.0

0.0

0.0

0.0

Other long term liabilities

(163.4)

(163.9)

(163.3)

0.0

0.0

0.0

0.0

0.0

Net Assets

 

 

(262.6)

292.6

699.5

4,483.9

2,600.8

4,324.5

2,048.8

(76.4)

Minority interests

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

Shareholders' equity

 

 

(262.6)

292.6

699.5

4,483.9

2,600.8

4,324.5

2,048.8

(76.4)

CASH FLOW

Op Cash Flow before WC and tax

(366.7)

(327.1)

(377.9)

(1,136.7)

(1,609.4)

(1,767.3)

(1,679.7)

(1,273.8)

Working capital

66.3

3.8

120.7

226.8

85.5

187.2

419.4

293.6

Exceptional & other

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

Tax

109.8

48.4

134.6

120.4

291.4

407.6

401.6

375.0

Net operating cash flow

 

 

(190.6)

(274.9)

(122.6)

(789.4)

(1,232.5)

(1,172.5)

(858.7)

(605.2)

Capex

(412.8)

(376.7)

(407.3)

(968.0)

(1,320.6)

(1,455.7)

(1,561.1)

(1,636.6)

Acquisitions/disposals

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

Net interest

(35.2)

5.7

(9.9)

9.7

4.2

(0.6)

0.0

0.0

Equity financing

0.0

639.3

762.8

5,047.1

0.0

3,991.5

0.0

0.0

Dividends

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

Other

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

Net Cash Flow

(638.6)

(6.5)

222.9

3,299.3

(2,549.0)

1,362.8

(2,419.8)

(2,241.8)

Opening net (cash)/debt

 

 

118.3

756.9

273.1

(273.5)

(3,572.8)

(1,023.8)

(2,386.6)

33.2

FX

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

Other non-cash movements

0.0

490.3

323.8

0.0

0.0

(0.1)

(0.0)

0.0

Closing net (cash)/debt

 

 

756.9

273.1

(273.5)

(3,572.8)

(1,023.8)

(2,386.6)

33.2

2,275.1

Source: Company data, Edison Investment Research

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Frankfurt +49 (0)69 78 8076 960

Schumannstrasse 34b

60325 Frankfurt

Germany

London +44 (0)20 3077 5700

280 High Holborn

London, WC1V 7EE

United Kingdom

New York +1 646 653 7026

1,185 Avenue of the Americas

3rd Floor, New York, NY 10036

United States of America

Sydney +61 (0)2 8249 8342

Level 4, Office 1205

95 Pitt Street, Sydney

NSW 2000, Australia

Frankfurt +49 (0)69 78 8076 960

Schumannstrasse 34b

60325 Frankfurt

Germany

London +44 (0)20 3077 5700

280 High Holborn

London, WC1V 7EE

United Kingdom

New York +1 646 653 7026

1,185 Avenue of the Americas

3rd Floor, New York, NY 10036

United States of America

Sydney +61 (0)2 8249 8342

Level 4, Office 1205

95 Pitt Street, Sydney

NSW 2000, Australia

General disclaimer and copyright

This report has been commissioned by Osirium Technologies and prepared and issued by Edison, in consideration of a fee payable by Osirim Technologies. Edison Investment Research standard fees are £49,500 pa for the production and broad dissemination of a detailed note (Outlook) following by regular (typically quarterly) update notes. Fees are paid upfront in cash without recourse. Edison may seek additional fees for the provision of roadshows and related IR services for the client but does not get remunerated for any investment banking services. We never take payment in stock, options or warrants for any of our services.

Accuracy of content: All information used in the publication of this report has been compiled from publicly available sources that are believed to be reliable, however we do not guarantee the accuracy or completeness of this report and have not sought for this information to be independently verified. Opinions contained in this report represent those of the Edison analyst at the time of publication. Forward-looking information or statements in this report contain information that is based on assumptions, forecasts of future results, estimates of amounts not yet determinable, and therefore involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of their subject matter to be materially different from current expectations.

Exclusion of Liability: To the fullest extent allowed by law, Edison shall not be liable for any direct, indirect or consequential losses, loss of profits, damages, costs or expenses incurred or suffered by you arising out or in connection with the access to, use of or reliance on any information contained on this note.

No personalised advice: The information that we provide should not be construed in any manner whatsoever as, personalised advice. Also, the information provided by us should not be construed by any subscriber or prospective subscriber as Edison’s solicitation to effect, or attempt to effect, any transaction in a security. The securities described in the report may not be eligible for sale in all jurisdictions or to certain categories of investors.

Investment in securities mentioned: Edison has a restrictive policy relating to personal dealing and conflicts of interest. Edison Group does not conduct any investment business and, accordingly, does not itself hold any positions in the securities mentioned in this report. However, the respective directors, officers, employees and contractors of Edison may have a position in any or related securities mentioned in this report, subject to Edison's policies on personal dealing and conflicts of interest.

Copyright: Copyright 2019 Edison Investment Research Limited (Edison). All rights reserved FTSE International Limited (“FTSE”) © FTSE 2019. “FTSE®” is a trade mark of the London Stock Exchange Group companies and is used by FTSE International Limited under license. All rights in the FTSE indices and/or FTSE ratings vest in FTSE and/or its licensors. Neither FTSE nor its licensors accept any liability for any errors or omissions in the FTSE indices and/or FTSE ratings or underlying data. No further distribution of FTSE Data is permitted without FTSE’s express written consent.

Australia

Edison Investment Research Pty Ltd (Edison AU) is the Australian subsidiary of Edison. Edison AU is a Corporate Authorised Representative (1252501) of Myonlineadvisers Pty Ltd who holds an Australian Financial Services Licence (Number: 427484). This research is issued in Australia by Edison AU and any access to it, is intended only for "wholesale clients" within the meaning of the Corporations Act 2001 of Australia. Any advice given by Edison AU is general advice only and does not take into account your personal circumstances, needs or objectives. You should, before acting on this advice, consider the appropriateness of the advice, having regard to your objectives, financial situation and needs. If our advice relates to the acquisition, or possible acquisition, of a particular financial product you should read any relevant Product Disclosure Statement or like instrument.

New Zealand

The research in this document is intended for New Zealand resident professional financial advisers or brokers (for use in their roles as financial advisers or brokers) and habitual investors who are “wholesale clients” for the purpose of the Financial Advisers Act 2008 (FAA) (as described in sections 5(c) (1)(a), (b) and (c) of the FAA). This is not a solicitation or inducement to buy, sell, subscribe, or underwrite any securities mentioned or in the topic of this document. For the purpose of the FAA, the content of this report is of a general nature, is intended as a source of general information only and is not intended to constitute a recommendation or opinion in relation to acquiring or disposing (including refraining from acquiring or disposing) of securities. The distribution of this document is not a “personalised service” and, to the extent that it contains any financial advice, is intended only as a “class service” provided by Edison within the meaning of the FAA (i.e. without taking into account the particular financial situation or goals of any person). As such, it should not be relied upon in making an investment decision.

United Kingdom

Neither this document and associated email (together, the "Communication") constitutes or form part of any offer for sale or subscription of, or solicitation of any offer to buy or subscribe for, any securities, nor shall it or any part of it form the basis of, or be relied on in connection with, any contract or commitment whatsoever. Any decision to purchase shares in the Company in the proposed placing should be made solely on the basis of the information to be contained in the admission document to be published in connection therewith.

This Communication is being distributed in the United Kingdom and is directed only at (i) persons having professional experience in matters relating to investments, i.e. investment professionals within the meaning of Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005, as amended (the "FPO") (ii) high net-worth companies, unincorporated associations or other bodies within the meaning of Article 49 of the FPO and (iii) persons to whom it is otherwise lawful to distribute it. The investment or investment activity to which this document relates is available only to such persons. It is not intended that this document be distributed or passed on, directly or indirectly, to any other class of persons and in any event and under no circumstances should persons of any other description rely on or act upon the contents of this document (nor will such persons be able to purchase shares in the placing).

This Communication is being supplied to you solely for your information and may not be reproduced by, further distributed to or published in whole or in part by, any other person.

United States

The Investment Research is a publication distributed in the United States by Edison Investment Research, Inc. Edison Investment Research, Inc. is registered as an investment adviser with the Securities and Exchange Commission. Edison relies upon the "publishers' exclusion" from the definition of investment adviser under Section 202(a) (11) of the Investment Advisers Act of 1940 and corresponding state securities laws. This report is a bona fide publication of general and regular circulation offering impersonal investment-related advice, not tailored to a specific investment portfolio or the needs of current and/or prospective subscribers. As such, Edison does not offer or provide personal advice and the research provided is for informational purposes only. No mention of a particular security in this report constitutes a recommendation to buy, sell or hold that or any security, or that any particular security, portfolio of securities, transaction or investment strategy is suitable for any specific person.

Frankfurt +49 (0)69 78 8076 960

Schumannstrasse 34b

60325 Frankfurt

Germany

London +44 (0)20 3077 5700

280 High Holborn

London, WC1V 7EE

United Kingdom

New York +1 646 653 7026

1,185 Avenue of the Americas

3rd Floor, New York, NY 10036

United States of America

Sydney +61 (0)2 8249 8342

Level 4, Office 1205

95 Pitt Street, Sydney

NSW 2000, Australia

Frankfurt +49 (0)69 78 8076 960

Schumannstrasse 34b

60325 Frankfurt

Germany

London +44 (0)20 3077 5700

280 High Holborn

London, WC1V 7EE

United Kingdom

New York +1 646 653 7026

1,185 Avenue of the Americas

3rd Floor, New York, NY 10036

United States of America

Sydney +61 (0)2 8249 8342

Level 4, Office 1205

95 Pitt Street, Sydney

NSW 2000, Australia

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