Corporate Presentation - January 2019 - Eros International Plc
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Corporate Presentation January 2019
Our Team: Pioneers, Innovators with
Deep Ties Across the Indian Film
Industry
Key Eros Management
Prem
Kishore Lulla Parmeswaran
Chairman & CEO CFO
35 years experience 23 years experience
in Media & Film in TMT Investment
Banking
Mark Carbeck
Chief Corporate &
Strategy Officer
Rishika Lulla
Singh
18 years experience
CEO, Eros Digital
in Media and
Internet Investment
Banking
PAGE 2
Eros Highlights
1 The global leader in Indian film entertainment with #1 box office market share
2 Largest content library of Indian language films with over 3,000 rights and music
3 Highly attractive market opportunity driven by secular tailwinds
4 Eros Now strategically positioned to capture large digital opportunity in India
5 Culture of innovation and partnerships with leading international talent
6 Experienced management team with track record of execution
PAGE 3
1 Eros: Leading From The Front
India: Leading Economic and
Population Growth
Fast Growing Economy Massive Population
Projected GDP Growth CAGR (2019E) (2017, Billions)
~18% of
World Population
7.8% 1.3
2.5%
0.3
India USA
Increasing Annual Disposable Income SVOD Services More Affordable
(India, USD) Eros Now is 10x More Affordable than Netflix in India1
$2,027
$1,753
$1,559 10.0x
1.0x
2012A 2014A 2016A India USA
Source: World Bank, IMF, OECD, Euromonitor International, United Nations, Wall Street Research
1. Number of Eros Now subscriptions purchasable in India for each Netflix subscription purchasable in the India. Services’ costs based on Rs.500 Netflix Standard monthly subscription plan for India and Rs. 50
Eros Now monthly subscription plan for India, respectively.
PAGE 5
India: Fast Growing Film and
Television Market
Indian Film and Television Market Projected to Grow at 9%
(USD Billions)
’17 – ’20E CAGR
9%
$ 16
$ 14 3 7%
$ 13
3
2
13
11
10
9%
2017A 2018E 2020E
TV Film (Theatrical)
Source: FICCI – EY Report. Rupees converted to USD at 64.9.
1. 2017A to 2020E CAGR.
PAGE 6
India: The Greatest Demand for
Film of Any Country
More Movies Made, and More Tickets Sold in India Than in Any Other Country1
(2016A)
2,500
2,000
Number of Movies
India
Produced
1,500
1,000
Japan USA
China
500 France
UK South Korea
0
0 500 1,000 1,500 2,000 2,500
Annual Tickets Sold (mm)
India Box Office by Language Indian Movie-Goers by Native Language
International Other Languages
10% 16%
ther Regional
O Hindi
Bengali 18%
13%
Hindi 8%
Tamil
Telugu 42% Malayalam 15%
17% 9%
Telugu
Tamil Marathi 14%
18% 10%
Kannada 11%
Source: UNESCO Institute for Statistics, Film Federation of India, Wall Street Research
1. Size of circles scaled to represent Number of Movies Produced x Annual Tickets Sold.
PAGE 7
Overview of Eros
Eros International Plc
Film Studio OTT Platform
In-House Production / Film Acquisition /
Co-Production Distribution
World’s Leading Indian Digital Entertainment Platform
Puja
Entertainment (Subsidiary of Eros International)
Largest
India’s #1 Film Studio 128mm+ 11,000+
13mm+ Share of
Registered Digital Film
Subscribers Indian OTT
Users Rights
Film Content
3,000+ 27%+ 100,000+ Global
Film Box Office Audio Distribution
Library Market Share Tracks
Global, Multi-Channel Monetization Financial Summary
Digital and
Ancillary,
FY 2018
AD Revenue:
$261mm
32.5% Theatrical,
30.3%
Theatrical TV Syndication Advertising FY 2018 Adj.
EBITDA:
$79mm
$$$ $ $ Adj. EBITDA TV
Margin: 30% Syndication,
Freemium Pay Per View Subscription Bundled Services 37.2%
FY 2018 Revenue
PAGE 8
Key Milestones
5mn+ Paid
subscribers of Eros
Now (Dec-2017)
80mm+ registered 2018
users on Eros Now
(Dec-2017)
2017
Eros Now official 13mn+ Eros now paid
marketing launch subscribers (Sep-2018)
(Jul-2015) 2016 Eros Now registered
users crosses the
SVOD agreement 100mn mark (128mn+
with 2015 registered users)
Launch of Investment from
Channel
Established 2010– Expanded
global distribution 2014 distribution
network outside partnerships in
India 2007– India + Overseas
2008
Early adopter of
VHS distribution 2006
1982–
1998 Launched Digital
distribution channels:
1981
1977
Listed EIML
on the
First Indian media
company to list on Listed Eros
Founded; began
Launch of AIM PLC on (2)
acquiring
first digital Adoption of
international IP
Bollywood vertically integrated Announced Techzone
rights for Indian
TV network(¹) mode acquisition
content
Pioneer and Innovator in Indian Film with 40+ year track record
1. Eros PLC currently has a 24% stake in B4U
2. Eros PLC delisted from LSE AIM market and commenced trading its ‘A’ ordinary shares on the NYSE
PAGE 9
Business Strategy
Disciplined Green
Lighting Process with Monetization Across Monetization Across
Film Diversification
Risk Sharing Contracts the lifecycle of a Movie Global Platforms
with Talent
Films produced across Extensive evaluation of Proven pre-sales International distribution
languages, genres and films before green monetisation model to presence across 50+
budgets to capture the lighting by a committee mitigate new production countries
larger market and of senior management project risks Extensive monetisation
maximize the cash flows and industry leaders Licensing of television, of movie assets for 12
Film Slate in FY19 and Pioneered risk sharing music and other months after the
FY20 is structured with contracts with talent in distribution rights prior to theatrical release date
a focus on diversification Indian film industry a film’s completion through multiple
across budgets and enhancing revenue channels
languages predictability
Effective Risk Mitigation Framework Underlying the Business Strategy
PAGE 10Reliance Industries: An Industry
Defining Partnership
A Mutually Beneficial Strategic Partnership with India’s Largest Conglomerate to Consolidate Indian Content
5% Minority Investment Content Distribution Capital Engagement
in Eros at $15 per share
(Completed Aug 2018) Investment to dramatically scale Eros’ capabilities in content production, marketing, and distribution
Symbiotic relationship with Reliance’s Jio to create high efficient unit economics for the Eros Now OTT platform
Reliance’s production expertise to further bolster expansion and development of Eros’ original and short-form content
“We are pleased to join hands with Eros, as it will bring further synergies into
$150mm our plans, making for a win-win partnership”
Joint production and
— Mukesh Ambani, Chairman, Reliance Industries
acquisition fund
Reliance: Eros Investment Adds to Significant Media & Telecom Presence in India
⚫ Leading LTE mobile network in India ⚫ Leading Indian film production and
Eros Now distribution studio, with leading OTT platform
⚫ Over 215mm subscribers and ~48% wired & Distribution
wireless broadband market share ⚫ 40-50 films per year, library of 3,000+ films, with
5%
11,000+ digital rights
⚫ Leading Indian news and entertainment ⚫ Leading Indian scripted TV production studio
~78% network
⚫ Produced over 17,000+ hours of television
JV with ⚫ 60 channels with presence in 27 states and 12 content and 34 movies
~25%
languages
Source: Eros International Plc filings, Press reports
PAGE 11Unique Combination of Expansive
Content and Proprietary OTT Platform
Studios OTT Players in India
(Hotstar)
Original Content
Production ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓
Content
Leading Library
of Indian Films ✓ ✓ ✓ ✓
Pure-Play Media
Company ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓
Proven OTT
Platform ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓
Platform
Scaled User
Base ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓
Subscription
Platform ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓
Source: Company Filings, Company Websites
PAGE 12Unrivalled Library & Film
Production Capability
• Hindi
New Film • Regional
Mix 40–50 Films Co-Production Acquisition Language
Each Year • International
Agreements
3,000+ Film Library
Digital Premiere Window
11,000+ Digital Film Rights 100+ Originals over next 18 months
5,000+ into Perpetuity 4,400 Short-form Videos
Released 9 IIFA 1 Filmfare 12 IIFA 1 IIFA 1 TOIFA 1 TOIFA 1 IIFA
Jan 2018 Awards Award Awards Award Award Award Award
Source: Eros International Plc filings, Management
PAGE 13Deepest and Richest OTT Library
including Largest Box Office Hits
Indian Film OTT Library by Platform
10% 11%
21% 19%
28% 27% 29%
15% 14% 4% 37%
1% 100%
13% 2%
12% 4% 58%
7%
29% 73%
21% 14% 7%
13% 15% 12%
Hindi Tamil Telugu Malayalam Kannada Other¹
Over the last 10 years Eros has been responsible for 36 of the top 110 highest grossing box office films in India 2
1. Includes Marathi, Bengali, Bhojpuri, Gujarati, Punjabi, Rajasthani, Urdu and Oriya films.
2. Full list of films in Appendix
PAGE 14Extensive Talent Relationships
Select Leading Actors
Amitabh Shah Rukh Salman Ranveer Deepika Priyanka Anushka
Bachchan Khan Khan Singh Padukone Chopra Sharma
3 IIFA Awards 5 IIFA Awards 1 IIFA Award 3 IIFA Awards 4 IIFA Awards 3 IIFA Awards 3 IIFA Awards
4 NFA Awards 2 NFA Awards 1 NFA Award 1 NFA Award
Select Leading Directors
Sanjay Leela Anand Kabir Raj & DK Anurag Sujay
Bhansali L. Rai Khan Kashyap Dahake
4 IIFA Awards 1 BIG Award 1 IIFA Award 2 IIFA Awards 1 NFA Award
2 NFA Awards 1 Stardust Award 1 NFA Award
Note: IIFA = International Indian Film Academy. NFA = National Film Awards.
PAGE 15Successful Penetration into China,
the World’s Largest Film Market
Chinese Entertainment Market Indo-Chinese Co-Productions
$10.7 Billion 11.6% 2 films created and produced by in-house, will be co-produced
with a Chinese studio
Chinese Movie Market1 2016-21E Growth
• First for an Indian studio
• Set in India and China
•
54,165 80,000+ Shot in both languages
Total Screens in 2018(2) Screens Count by 2021
Bajrangi Bhaijaan in China Eros’ Influential Partnerships in China
High Budget Indian Film Hit in China Partnerships with three major Chinese state-owned film and
entertainment companies to promote, co-produce and distribute
8,000+ Sino-Indian films across all platforms in India & China
Screen release in China
(March 2018)
$45mm+
China Box Office Gross
#5 Shanghai Film
Starring Salman Khan Film in China Box Office China Film Group Group
Fudan University
Corporation Corporation
“With the success of Bajrangi Bhaijaan and previous Indian releases,
China has emerged as a key market and a major box office earner for ✓ Large and growing Chinese Box Office
Indian releases.” –Sunil Lulla, Managing Director, Eros ✓ Partnering with the best Chinese film companies
✓ High-reward long-term opportunity
1. 2021E Chinese movie market defined by total box office revenues.
2. China Film Bureau
PAGE 16Strategic Partnerships – Other
Emerging Markets
Significant Demand for Indian Content Overseas
Global demand for Bollywood content across Europe and
Large South Asian Diaspora Across Rest of World
Southeast Asia
Established in Germany, Russia, Japan, Korea, Taiwan,
Indonesia Theatrical, TV, DVD distribution across local communities
Indo-Russian Joint Content Distribution Indo-Turkish Co-Productions
Central Partnership and Eros Int’l to distribute and promote Indian and Russian
content across multiple platforms in both countries.
Mutual use via licensing of 2
A Bilingual
respectively owned IP films list actors
Distribution of film projects for both
India and Russia
Promotion and integration of
dubbed content through Eros Now ✓ Partnership with Pana Films, owned by
platform in Russian markets leading Turkish actor Necati Şaşmaz
Showcase Eros Now’s VOD ✓ Best known for playing Polat Alemdar in
content on leading Russian the popular Turkish television series
distribution network RUFORM Kurtlar Vasdisi (Valley of the Wolves)
Necati Şaşmaz
PAGE 172 Eros Now: Leading OTT Platform
Eros Now: World’s Leading Indian
Digital Entertainment Platform
Our Addressable Market is a Quarter of the World’s Population
135
✓ Countries incl. India
5M
Europe Target
Population
128M
✓ Registered Users
13M
✓ Paying Subscribers
400M
South, SE Asia
Target
6.5M
11,000+ Population
✓ Digital Rights North America
Target Population
1.3B
India
Population
16M
Middle East
Target Population
0.8M
Key Markets Australasia Target
Population
Source: Eros International Plc filings
PAGE 19India: Compelling Digital Trends,
Underpinned by Mobile
In December 2017 India Reached 1.2 Billion Mobile Phone Subscribers, with Only 25% Smartphone Penetration
A Young, Technologically Savvy Demographic Strong Mobile Internet User Growth
27% Internet Median Age 87% Internet Millions2
Penetration1 Penetration1
37.9 829
481
27.6
2017A 2021E
Video Dominates Mobile Internet Usage in India A Handful of Telcos Control the Market
Mobile Internet Usage in India (2017E) Wired & Wireless Broadband Market Share (Jun-2018A)
File Sharing
2% 98% Wireless Subscribers
Streaming Audio 48%
10%
21%
14%
Video 10%
→ 75% by 2021E 5%
49%
Web and Other
Data Jio Airtel Vodafone Idea BSNL
39%
Source: FICCI Report, CIA World Factbook, Telecom Regulatory Authority of India, Ericsson Mobility Report, Statista. Note: Vodafone India and Idea Cellular merger pending.
1. 2016A.
2. Includes non-smartphone mobile internet users.
PAGE 20Eros Now: #1 SVOD Platform for
Indian Content
11,000+
Films Rights
5,000+
Into Perpetuity
100+
Originals over next 18 months
Multi-Channel
WAP APP Web
Customer Acquisition
Rapidly Growing Paid Subscriber Base…
Eros Now Paying Subscribers1
(mm) 16.0+
13.0
10.1
7.9
5.0
3.7
2.9
2.1
FY'17A Q1' FY'18A Q2' FY'18A Q3' FY'18A FY'18A Q1' FY'19A Q2' FY'19A FY '19A
(Mgnt Guidance)
1. Paying subscribers means any subscriber who has made a valid payment to subscribe to a service that includes the Eros Now service either as part of a bundle or on a standalone basis, either directly or
indirectly through a telecom operator or OEM in any given month be it through a daily, weekly or monthly billing pack, as long as the validity of the pack is for at least one month
PAGE 21At the Epicentre of a Virtuous User
Acquisition Cycle
A Virtuous Circle of Content Production and Platform Development to Driver User Growth
Media
Content
Benefit to Users Interactive Technology Benefit to Eros Now
Services
✓ Largest Indian film library ✓ Constant stream of new /
/ selection in the world popular content by a
leading Bollywood film
✓ Compelling content, studio
including many recent
hits exclusive to Eros ✓ Lower content acquisition
Now (e.g. Bajrangi costs
Bhaijaan, Tanu Weds
Manu Returns) Affiliate
Programmes
✓ Lower customer
Data &
(B2B2C, B2C, B2B) acquisition costs
✓ Rolling out Eros Now Analytics
original content offerings ✓ Ability to monetize
content and create new
User revenue streams
Acquisition
Advertising
& Brand Partnerships
The Eros Now technology platform powers user engagement and a virtuous user acquisition cycle as Eros productions
continue to drive content
PAGE 22Cutting-Edge Eros Now Originals
Support User Acquisition
December 2018 March 2019 March 2019 March 2019
/ January 2019
April 2019 May 2019 June 2019 June 2019 TBD
PAGE 23Customer Acquisition Strategy –
B2B Partnerships
Major Indian Telco Partnerships
(2)
Total Wireless 239mm Subs 224mm Subs 346mm Subs 217mm Subs 113mm Subs
Subscribers
Parent Company $100bn
Market $53bn
$19bn na na
Capitalization1
Eros Now SVOD
Long Term
Revenue Sharing
Agreements
✓ ✓ ✓ ✓ ✓
Long-Standing
Relationship ✓ ✓ ✓ ✓ ✓
Major Indian Telco Partnerships Underpin Sustainability of Eros Now’s Moat:
Distribution capability for Eros Now and access to the largest and linguistically most diverse digital Indian film library for telcos
Source: Eros International Plc filings, Bloomberg. Market data as of January 9, 2019, Subscribers data as of August 2018 - TRAI Press Release No. 107/2018
Note: Vodafone India and !dea Cellular merger pending completion
1. Calculated using latest reported basic shares outstanding multiplied by share price. $ in billions. 2. Vodafone Idea have merged into a single entity but they still operate as different telecom operators
PAGE 24Unique Distribution Model –
Direct to Consumer and Other
OEM TELCO / ISP WALLETS
STREAMING
(Partner Channel)
OTHER
International
PAGE 25Pricing Strategy Key to Monetization
India International
✓ Immediate access to exclusive new content and full ✓ Immediate access to exclusive new content and full
library library
✓ Streaming service; No download ✓ Offline viewing; Multi-screen / multi-member
1 ✓ Ad-free ✓ Ad-free
Premium
✓ HDTV
Tier 1 Average Pricing: RS. 50/month (c. $0.80) Average Pricing: $7.99 / month or $79.99 / year
Tier 2 Average Pricing: RS. 100/month (c. $1.60)
2
✓ Sample user experience – encouraging users to
upgrade to premium services
Free
✓ Delay in accessing new content available to
premium subscribers first
Sophisticated Free → Premium conversion strategy
PAGE 26Financial Overview
3Strong, Diversified Historical
Financial Profile
Strong Historical Revenue Growth
284 274
253 261
236
207 215
156 165
150
113
66
FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018
Solid Track Record of Profitability
50% 43% 35% 36% 36% 32% 26% 34% 36% 26% 22% 30%
101
80 79
67 71
60 56 56
48 54 54
33
FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018
A.EBITDA Margin
Source: Company filings
Note: Fiscal year end March-31. $ in millions.
PAGE 28Conservative Balance Sheet
Select Balance Sheet Items Cash and Net Debt Leverage ($m)
Net Debt /
1.4x 1.6x 1.8x 2.8x 2.4x 1.6x
($ in millions) 30-Sep-18 EBITDA
182.8
Cash $88.3
153.7
Total Debt $297.0 145.4
Net Debt $162.1
Shareholders’ Equity (Book 112.3
$1,055.9
value)
Total Capitalization (Book 87.8 88.3
$1,352.9
value)
LTM Gross Adj. EBITDA(1) $200.3
LTM Adj. EBITDA $102.8
Net Debt / LTM Adj. EBITDA 1.58x
Total Debt / Total
21.96%
Capitalization FY '14 FY '15 FY '16 FY '17 FY '18 FY '19 Q2
(1) Represents LTM Adjusted EBITDA plus LTM amortization of film and content rights from cash flow statement.
PAGE 29Appendix
Corporate Structure
Founders Eros International Plc
(Isle of Man)1 Public
Group 38.6% 61.4%
100.0% 100.0% 100.0%
Other International Eros WorldWide FZ- Eros Digital
Subsidiaries LLC (Dubai) FZ-LLC (UAE)
(Eros Now)
99.98%
Eros Digital Private
Limited (India)2 37.23%
22.82% Eros International 39.94%
Public
Media Limited (India)1
Other Subsidiaries
NYSE-listed entity India-listed entity Other subsidiaries
1. Shareholdings as of July 30, 2018
Not pro forma for Reliance Industries investment.
PAGE 31Institutional Shareholders
As of Sep 30, 2018 13-F period
$ Value @ 8.81/share
# Firm % Outstanding Position ('000s) ('$000s)
1 Capital World Investors 12.8% 7,995 $70,434
2 Paradice Investment Management LLC 8.2% 5,131 45,200
3 Gilder Gagnon Howe & Co. LLC 5.6% 3,459 30,472
4 Reliance Industries Ltd 5.0% 3,111 27,409
5 Temasek Holdings Pte. Ltd. 4.4% 2,755 24,274
6 New Jersey Division of Investment 4.2% 2,606 22,959
7 BlackRock Investment Management, LLC 2.6% 1,602 14,111
8 Jupiter Asset Management Ltd. 2.5% 1,548 13,638
9 Millennium Management LLC 2.4% 1,480 13,038
10 Nuveen Asset Management, LLC 1.3% 831 7,322
11 Managed Account Advisors LLC 1.2% 757 6,667
12 Barclays Bank PLC 1.1% 662 5,829
13 Morgan Stanley & Co. LLC 1.1% 661 5,822
14 Susquehanna International Group, LLP 1.0% 603 5,316
15 ING Bank N.V. 0.8% 471 4,148
Subtotal 54.1% 33,671 296,638
Remaining Institutions (92) 3.9% 2,458 21,653
Source: Thomson Reuters.
Note: Based on total class A shares outstanding of 62,239,453.
PAGE 32Eros Now Digital premieres
Offering diverse range of content
Eros Now successfully premiered 16 movies across seven Indian languages in Q2 FY19
Eros Now Q2 FY19 Premieres
Film Title Language
Aav Taru Kari Nakhu Guajarati
Madura Veeran Tamil
Gavthi Marathi
Oru Kidayin Karunai Manu Tamil
Conditions Apply Marathi
Band Baaja Babuchak Guajarati
Aavuj Reshe Guajarati
Karaar Marathi
Asehi Ekada Vhave Marathi
Baranda Bengali
Tamburo Guajarati
Commrade Bengali
Dr. Tatya Lahane - Angaar..Power is within Marathi
Alifa Bengali
Kulfi Kannada
Dharasnan Bengali
PAGE 33List of Largest Box Office Hits
Eros has been responsible for 36 out of the top 110 highest grossing Indian films
at the box office
Film Name Release Year IMDB Rank
Bajrangi Bhaijaan 2015 8.1
Bajirao Mastani 2015 7.2
Tanu Weds Manu Returns 2015 7.7
Ra.One 2011 4.8
Goliyon Ki Raasleela Ram – Leela 2013 6.4
Housefull 3 2016 5.2
Housefull 2 2012 5.4
Jai Ho 2014 5.3
Ready 2011 4.7
Welcome Back 2015 4.2
Zindagi Na Milegi Dobara 2011 8.1
Om Shanti Om 2007 6.7
Son of Sardaar 2012 3.9
Grand Masti 2013 4.3
Cocktail 2012 6.2
Love Aaj Kal 2009 6.8
Dishoom 2016 5.1
Housefull 2010 5.4
PAGE 34List of Largest Box Office Hits
(Cont’d)
Film Name Release Year IMDB Rank
Rockstar 2011 7.6
Partner 2007 5.7
R... Rajkumar 2013 5.2
Ki & Ka 2016 5.8
Raanjhanaa 2013 7.6
Kambakkht Ishq 2009 4
Heyy Babyy 2007 6.1
Bhool Bhulaiyaa 2007 7.3
De Dana Dan 2009 5.2
Desi Boyz 2011 5.9
Badlapur 2015 7.5
English Vinglish 2012 7.9
Namastey London 2007 7.3
Vicky Donor 2012 7.8
Happy Bhaag Jayegi 2016 6.5
Cheeni Kum 2007 6.8
Newton 2017 7.8
Chalo Dilli 2011 6.8
PAGE 35Disclaimer
This presentation contains “forward-looking statements.” These statements include, among other things, the discussions of our business strategy
and expectations concerning our market position, future operations, margins, profitability, liquidity and capital resources, tax assessment orders and
future capital expenditures. All of our forward-looking statements are subject to risks and uncertainties that may cause actual results to differ
materially from those that we are expecting, including, without limitation, the factors discussed in our most recent Form 20-F filed with the U.S.
Securities and Exchange Commission on July 31, 2018 (the “20-F”), including under the sections captioned “Risk Factors.”
The forward-looking statements contained in this presentation are based on historical performance and management’s current plans, estimates and
expectations in light of information currently available to us and are subject to uncertainty and changes in circumstances. There can be no
assurance that future developments affecting us will be those that we have anticipated. Actual results may differ materially from these expectations
due to changes in global, regional or local political, economic, business, competitive, market, regulatory and other factors, many of which are
beyond our control, as well as the other factors described in the 20-F under the sections captioned “Risk Factors.” Additional factors or events that
could cause our actual results to differ may also emerge from time to time, and it is not possible for us to predict all of them. Should one or more of
these risks or uncertainties materialize, or should any of our assumptions prove to be incorrect, our actual results may vary in material respects
from what we may have expressed or implied by these forward-looking statements. We caution that you should not place undue reliance on any of
our forward-looking statements. Any forward-looking statement made by us in this presentation speaks only as of the date on which we make it. We
undertake no obligation to update any forward-looking statement, whether as a result of new information, future developments or otherwise, except
as may be required by applicable securities laws.
We use market data and industry forecasts in this presentation. Unless otherwise indicated, statements in this presentation concerning our
industries and the markets in which we operate, including our general expectations, competitive position, business opportunity and market size,
growth and share, are based on publicly available information, periodic industry publications and surveys and reports by market research firms. We
have not independently verified market data and industry forecasts provided by any of these or any other third-party sources referred to in this
presentation, although we believe such market data and industry forecasts included in this presentation are reliable. This information cannot always
be verified with complete certainty due to the limits on the availability and reliability of raw data, the voluntary nature of the data gathering process
and other limitations and uncertainties inherent in surveys of market size. Management estimates are derived from the information and data referred
to above, as well as our internal research, calculations and assumptions made by us based on our analysis of such information and data and our
knowledge of our industries and markets, which we believe to be reasonable, although they have not been independently verified. While we believe
that the market position information included in this presentation is generally reliable, such information is inherently imprecise. Assumptions,
expectations and estimates of our future performance and the future performance of the industries and markets in which we operate are necessarily
subject to a high degree of uncertainty and risk due to a variety of factors, including those described in the 20-F. These and other factors could
cause results to differ materially from those expressed in the estimates made by the independent parties and by us.
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