q1 2014 results - athena investments...2014/05/14 · q1 2014 results 7 319 mw gross installed...
TRANSCRIPT
Q1 2014 Results
1
Q1 2014 Results 14 May 2014
Q1 2014 Results
2
1 Greentech at a glance
Agenda
2 Q1 2014 Results
3 2014 Outlook
5 Appendix
4 Strategic guidelines
Q1 2014 Results
3
1 Greentech at a glance
Agenda
2 Q1 2014 Results
3 2014 Outlook
5 Appendix
4 Strategic guidelines
Q1 2014 Results
4
A global green UTILITY
generating and distributing RENEWABLE ENERGY
preserving
the ENVIRONMENT and
contributing to
a WORLD SUSTAINABLE GROWTH
Vision
Greentech at a glance
Q1 2014 Results
5
Geographical presence
Greentech at a glance
319 MW Future pipeline
5 Countries
SHORT-MEDIUM TERM PIPELINE Capacity: 42 MW
Country: Poland
LONG TERM PIPELINE Capacity: 579 MW
Countries: Poland, Italy
621 MW Gross installed capacity
The Greentech portfolio is located throughout Italy, Spain, Denmark, Poland and Germany These markets differ in the respective maturities of their renewable energy industries, providing Greentech with a properly balanced geographical presence and attractive business mix
Operating Solar PV Plants
Wind farms in operation
WIND Installed capacity: 276 MW (220 MW net) operating
Countries: Denmark, Italy, Spain, Poland, Germany
SOLAR Installed capacity: 43 MW (38 MW net) operating
Countries: Italy, Spain
Q1 2014 Results
6
1 Greentech at a glance
Agenda
2 Q1 2014 Results
3 2014 Outlook
5 Appendix
4 Strategic guidelines
Q1 2014 Results
7
Gross installed capacity 319 MW
Highlights
621 MW Future pipeline
- 9% Net production 119.8 GWh
Vs. 131.9 GWh in Q1 2013
- 12% Revenue(1) EUR 18.1M Vs. EUR 20.5M in Q1 2013
(1) Including Associates (2) Adjusted for Income from Associates
- 14% EBITDA(1)(2) EUR 11.3M Vs. EUR 13.1M in Q1 2013
62% EBITDA margin(1)
Profit for the period
64% excluding Environment
Q1 2014 Results
Q1 2014 Results
8
Key financials
REVENUE Q1 2014 - 11% vs. Q1 2013
EBITDA MARGIN Q1 2014 58%
NET PRODUCTION Q1 2014
amounted to 119.8 GWh
compared to 131.9 GWh in Q1 2013
INCOME STATEMENT
BALANCE SHEET
Q1 2014 Results
MEUR Q1 2014 FY 2013
Equity 218.8 220.7
NFP (147.0) (145.0)
MEUR Q1 2014 Q1 2013
Revenue 14.4 16.2
EBITDA 8.4 9.9
margin % 58% 61%
Profit/Loss for the period 0.03 2.1
Q1 2013 figures have been restated in accordance with the changes implemented on IFRS 11.
Q1 2014 Results
9
Key financials
REVENUE, MEUR EBITDA, MEUR OPERATING CASH FLOW, MEUR
Q1 2014 Results
9,9 8,4
3,2
2,9
Q1 2013 Q1 2014
EBITDA EBITDA from Associates
16,2 14,4
4,3
3,7
Q1 2013 Q1 2014
Revenue Revenue from associates *
* Adjusted for Income from Associates
-5,5
-0,6
Q1 2013 Q1 2014
Q1 2014 Results
14,4
Wind Solar Environment Other Q1 2014
9.6
3.6 1.1 0.1
Revenue breakdown
14.4
IT ES DE DK PL Q1 2014
10.8
2.1 1.0 0.4 0.1
10
REVENUE BREAKDOWN BY COUNTRY
REVENUE BREAKDOWN BY TECHNOLOGY
Q1 2014 Results
REVENUE, MEUR
14,4
3,7
Revenue from associates
Revenue
Q1 2014 Results
11
Net production breakdown
PRODUCTION BREAKDOWN BY COUNTRY PRODUCTION BREAKDOWN BY TECHNOLOGY
Q1 2014 Results
63% 58%
22%
21%
9% 12%
5% 8%
1% 1%
Q1 2013 Q1 2014
Poland
Denmark
Germany
Spain
Italy
8% 9%
92% 91%
Q1 2013 Q1 2014
Wind
Solar
Q1 2014 Results
Net production vs. estimates
12
SOLAR, GWh
Solar production 10.7 GWh, +8% vs. Q1 2013
Solar revenue EUR 4.4M*
Solar EBITDA margin 70%
Average energy revenues 411 €/MWh
Wind production 109.0 GWh, -11% vs. Q1 2013
Wind revenue EUR 12.6M*
Wind EBITDA margin 73%
Average energy revenues 116 €/MWh
WIND, GWh
Production in line with estimates
+14% vs. estimates
Q1 2014 Results
10,7 10,6
Actual Budget
109,0
96,6
Actual Budget
* Including revenue from associates
Q1 2014 Results
(162.1)
(165.6)
(170,00)
(165,00)
(160,00)
(155,00)
(150,00)
(145,00) 31-dec-13
Cash and Cash equivalents
Non Current Financial Liabilities
Current Financial Assets (Liabilities) Fair Value
Non Current Fin. Assets & Loans to
Associates 31-mar-14
(3.7) 4.5
(3.2) (1.5) 0.4
13
Net Financial Position
NET FINANCIAL POSITION, MEUR
Fair value of financial instruments was 17.1MEUR and 18.6MEUR as of 31-Mar-13 and 31-Mar-14, respectively
Q1 2014 Results
Q1 2014 Results
14
Fully permitted, EDF EN has indicated intention to exercise the option to buy a 40 % stake in the project
Construction is scheduled for Q1 2015, with the aim to commence operation by the beginning of 2016
USTKA 30MW
(Poland)
Permitting process is ongoing with green lights from Municipalities involved
Construction of the plant is expected to commence in H1 2015 with scheduled finalization in H1 2016
SMOLECIN 67MW
(Poland)
A 50/50 joint venture agreement has been signed with the French utility EDF EN
The applying process to obtain the AU authorization (Autorizzazione Unica) is on-going
According to wind assessment studies, the project is expected to deliver approx. 2,400 full load hours per year
BRINDISI 70MW (Italy)
PARNOWO 12MW
(Poland) Fully permitted, EDF EN has indicated intention to exercise the option to buy 100% of the project
Pipeline Status
Q1 2014 Results
Q1 2014 Results
15
1 Greentech at a glance
Agenda
2 Q1 2014 Results
3 2014 Outlook
5 Appendix
4 Strategic guidelines
Q1 2014 Results
31.7*
44.6*
31-32*
6,9
0.8
9-10
2012 2013 2014E
EBITDA from associates
EBITDA
16
2014 Outlook
REVENUES, MEUR
NFP, MEUR * Adjusted for income from Associates
EBITDA, MEUR
Key Financials
59,9
73,9 59-62
10,8
1,4
12-14
2012 2013 2014E
Revenue from associates
Revenue
(145.0) (147.0)
(135.7)
(150,00)
(140,00)
(130,00)
(120,00)
(110,00)
(100,00)
FY2013 Q1 2014 FY2014
Q1 2014 Results
17
1 Greentech at a glance
Agenda
2 Q1 2014 Results
3 2014 Outlook
5 Appendix
4 Strategic guidelines
Q1 2014 Results
18
1 GW INSTALLED CAPACITY BY 2014
More than 1 GW of installed assets by 2014 with a broadly-based portfolio through a focus on 4 strategic pillars: Geographical diversification Technological diversification R&D on new technologies “Buy and build” strategy
LEADING MID CAP PLAYER
Ambition to become the largest mid cap player in the industry and the benchmark for the sector
SUSTAINABLE UTILITY
The long term vision is to create a sustainable utility delivering a constantly increasing clean energy production thereby offering an alternative to the dependency on scarce and polluting energy resources
IMPROVEMENT OF SYNERGIES, VALUATION AND METRICS
IMPROVEMENT OF OPERATIONAL PERFORMANCE AND COST EFFICIENCY
Possibility to enhance productivity of plants, with very little incremental capex, by constructing additional power production systems alongside the plant (i.e. single-axis or dual-axis tracking systems) and sharing all centralized systems (inverters, transformers, evacuation line, etc.)
O&M activities versus third parties in order to improve the margin on services Negotiations with turbine/module suppliers to obtain high efficient turbines/modules at the best price
Strategic guidelines
Q1 2014 Results
19
1 Greentech at a glance
Agenda
2 Q1 2014 Results
3 2014 Outlook
5 Appendix
4 Strategic guidelines
Q1 2014 Results 20
Balanced mix of mature (Denmark, Germany and Spain), attractive (Italy) and high-growth potential markets (Poland)
319 MW of gross installed capacity diversified by technology
Production of drinkable water treatment plants and sludge treatment plants
BALANCED GEOGRAPHICAL,
TECHNOLOGICAL AND BUSINESS MIX
Strong cash and liquidity position, ensuring a competitive advantage in securing third party financing for growth opportunities
Long-dated relationships with major banking and financial groups
STRONG FINANCIAL PROFILE
Rottapharm-Madaus
Intesa Sanpaolo S.p.A.
Pirelli Group
GWM Group
Company aiming at expanding free float and liquidity in share trading in the medium term
STRONG CORE SHAREHOLDER BASE
Approx. 621 MW of future pipeline, complementary in locations, technology and development phase
Strong industrial relationships with Électricité de France (EDF) and Polska Grupa Energetyczna (PGE) for identification of new opportunities
ATTRACTIVE GROWTH
OPPORTUNITIES
Well known and highly respected new management team with solid reputation
Experienced professionals with multi-year track record in the industry
MANAGEMENT TEAM WITH PROVEN TRACK
RECORD
Value creation from
– Operational improvement
– Acquisition of new underpriced assets/Consolidation of complementary companies
– Development/construction activities
VALUE CREATION POTENTIAL
Investment Summary
Q1 2014 Results
21
1924
1998
2000/07
2005
2007
2009
2010
Founded as a local danish bank
After becoming an investment company (1991), Greentech begins to invest in renewables
Greentech starts to create a portfolio in renewables in Denmark (2000: acquisition of 3MW), Italy (acquisition of Energia Verde in 2002 and developing of 100MW in 2006), Poland (acquisition of
Wiatrapol International in 2003), Germany (30MW in 2007)
Joint-venture with PGE Group, state utlity holding a 50% interest in Eolica Wojeciechowo
The first wind energy project in Italy is in operation
Equity offer of Greentech (€153m are raised)
Strategic partnership with EDF Energies Nouvelles
Minerva Messina and Monte Grighine plants (98MW) are fully operational
2009 GWM Renewable Energy II (GWM RE II), sole shareholder
of GWM, is incorporated
2011
2010/11 A joint venture shareholder agreement with the Foresight Group relating to the acquisition of Global Litator and the operation and maintenance of its solar photovoltaic plant located in Cordoba (Spain)
May 2011: Contribution Agreement Greentech – GWM RE
August 2011: Greentech completes capital increase
September 2011: Mandatory Tender Offer ended bringing GWM RE II to hold ownership of 71.49% of the shares in Greentech
GWM developed and built the following five plants: (i) Montetosto, an 8.7 MW plant located in Cerveteri (Lazio) (ii) De Marinis, a 1 MW plant located in Foggia (Apulia (iii) Mercurio, a 1 MW plant located in Ragusa (Sicily) (iv) Ferrante, a 1 MW plant located in Trinitapoli, Foggia (Apulia) (v) Nardò Caputo, a 9.8 MW plant located in Lecce (Apulia)
GWM obtained a major position (60%) in Gruppo Zilio, a leading Italian company in the engineering, construction and management of micro filtering plants for drinkable water, sludge treatment plants and mini-hydro
A joint venture agreement with Solar Utility S.p.A. (Pirelli Group) based on a 60% - 40% strategic partnership in GP Energia S.r.l. with the aim of developing a common strategy in the photovoltaic sector
Investment Agreement GWM RE - Banca Intesa San Paolo - Pirelli Group Share purchase agreement with Gamesa Energia S.A. to acquire a
30 MW wind farm located in Tarragona, Catalonia, Spain
Group History
CREATION OF A LEADING PLAYER IN RENEWABLE ENERGY SECTOR WITH A HIGHLY DIVERSIFIED PORTFOLIO, IN TERMS OF GEOGRAPHY, TYPE OF PROJECT AND PHASE
Q1 2014 Results
22
Greentech has strong institutional investors, major international groups with strong financial track records, such as:
Rottapharm-Madaus, a multinational pharmaceutical group, through GWM Renewable Energy I Pirelli Group, the world leading tire group
Intesa Sanpaolo S.p.A. banking group, the largest bank in Italy and No. 5 in Europe
GWM Group, a financial group focusing on alternative investments
In addition, Greentech has strong industrial relationships with two of the largest energy producers in Europe, Électricité de France (EDF) and Polska Grupa Energetyczna (PGE), through which Greentech will be able to secure better terms in respect of supply and financing agreements and which also may increase the number of project opportunities available
Shareholders
GWM RENEWABLE ENERGY II S.p.A.
71.49%
GWM RENEWABLE ENERGY I S.p.A.
Solar Utility S.p.A.
16.87% 70.63% 12.5%
Market
28.51%
Q1 2014 Results
Regulatory framework – Italy
On 22 February 2014, the new Destination Italy Decree, published on 23 December 2013 in the Official Gazette, came into force becoming law. The Destination Italy Decree provides that, starting from 1 January 2014, the minimum guaranteed prices applied to plants benefitting from the incentives, shall be equal to the relevant applicable hourly zone prices. The new law affects only photovoltaic plants up to 1 MW benefitting from the Conto Energia incentive schemes, excluding the small PV plants up to 100 kW and hydro plants up to 500 kW.
On 19 December 2013, the AEEG (Autorità per l’Energia Elettrica e il Gas) published the annual resolution “AEEG Resolution 618/2013” which came into force on 1 January 2014. The resolution has decreased the amount of minimum guaranteed price (“minimi garantiti”) applicable to renewable energy plants with a capacity of up to 1 MW which benefit from the mandatory purchase regime (“ritiro dedicato”)
Producers operating plants with a capacity of up to 1 MW who benefit from the mandatory purchase regime can choose – on an annual basis – between two different pricing systems: the “hourly zone price regime” and the “minimum guaranteed price regime”.
Due to historical price trends, payment by the GSE of minimum guaranteed price has always been convenient for producers, because it is usually higher than the average hourly zone price. Under the new regime this trend will be reversed.
Source Approx. average operational
costs (€/MWh) Quantity of electricity withdrawn per year
Minimum guaranteed price (€/MWh)
WIND PLANTS 44 Up to 1.5 GWh 48.4*(1+FOI 2013/100)
PHOTOVOLTAIC PLANTS 35 Up to 1.5 GWh 38.5*(1+FOI 2013/100)
On 8 January 2014 the Tax Authority (Agenzia delle Entrate) has specified that the tax amortization rate for photovoltaic plants is fixed at 4% instead of 5%
GREENTECH CASE: The Management has estimated the impact of these changes on Italian small PV assets in a range of -2%/-5% of their total revenues.
(*)FOI – the rate of annual variation prices for households estimated by ISTAT in 2013
Q1 2014 Results
Regulatory framework – Poland
On 8 April 2014, the government approved, after two years of work, the draft law regarding the renewable energy sector. Under the draft law, which requires final approval by parliament and the president, developers and owners of new renewable installations can sell their energy at auctions for a fixed price that would be guaranteed for 15 years regardless of market prices. The proposal would also set a ceiling on the subsidy.
The current Green Certificate (GC) support system for existing RES installations should be maintained for the wind farms that are already operating or that will enter into operation before the entry into force of the new statutory regulations. Starting from the day the act comes into force, the RES producers will have 2 years to choose if they want to continue to use the GC support scheme or move to the auction-based system.
GREENTECH CASE: The new support scheme does not affect Greentech’s wind farm already in operation.
Regarding the pipeline, the Management considers that projects already in development portfolio will be pursued due to their expected high wind performances.
Q1 2014 Results
GREENTECH CASE: The Management has assessed the consequences of the Law based on the current draft of Application Decree: the
impact is in a range -15/-20% on the solar assets and in a range +10/+15% for Conesa wind farm.
25
Regulatory framework – Spain and Germany
In Spain, the new Spanish Law 24/2013, approved on 26 December 2013, replaced retroactively (starting from July 12, 2013) the
support scheme applicable to electricity generation from renewable sources (“special-regime installations”) with a new remuneration system based on the so-called “reasonable profitability” of the investment, setting the return granted to the renewable energy plants already in operation at 7.4%, and at 7.5% for the new plants.
Under the new law, RES producers will not receive a regulated price for the electricity but rather a specific compensation mainly based on
the initial investment that is calculated on a plant-by-plant basis by the Authority, taking into account the following parameters: a) Standard income from the sale of generated power valued at production market prices; b) Standard operating costs; c) Standard value of the initial investment.
In Germany on 8 April 2014, the Cabinet approved a reform of Germany's renewable energy law designed to curb a rise in the cost of electricity in the Country.
GREENTECH CASE: The reform will have no impact on Greentech’s current assets.
Q1 2014 Results
26
TOTAL INSTALLED GROSS CAPACITY BREAKDOWN
TOTAL INSTALLED GROSS CAPACITY BREAKDOWN
WIND PROJECTS
SOLAR PV PROJECTS
TYPE PLANT COUNTRY MW MW NET GRID
CONNECTION
PV Montestosto IT 8.74 8.74 Mar-11
PV Nardò Caputo IT 9.77 9.77 Apr-11
PV Vaglio 1 IT 1.02 1.02 Dec-08
PV Vaglio 2 IT 1.96 1.96 Dec-09
PV Ugento 1 IT 0.98 0.98 Dec-09
PV Torremaggiore IT 0.99 0.99 Dec-09
PV Nardo Nanni IT 0.94 0.94 Dec-09
PV Alessano Bortone IT 0.98 0.98 Dec-09
PV Ferrante IT 0.99 0.99 Apr-11
PV De Marinis IT 0.99 0.99 Mar-11
PV Mercurio IT 0.91 0.91 Apr-11
PV Ugento 2 IT 0.98 0.98 Apr-11
PV Montemesola 1 + 2 IT 1.00 1.00 Jun-12
PV Alessano Strutture IT 0.70 0.70 Apr-11
PV Fotocampillos ES 2.10 2.10 May-08 PV Cordoba ES 9.80 4.90 Sep-08
TOTAL 42.85 37.95
TYPE PLANT COUNTRY MW MW NET GRID
CONNECTION
Wind Milbak DK 3.75 3.75 Aug-01
Wind Oppelstrup DK 7.50 7.50 Aug-01
Wind Hannesborg DK 1.60 1.60 Feb-01
Wind Frorup DK 2.60 2.60 Dec-00
Wind Gehlenberg DE 23.40 23.40 Dec-01
Wind Wormlage DE 7.50 3.75 Dec-05
Wind Tiefental DE 6.00 3.00 Dec-05
Wind Energia Verde IT 21.00 21.00 Jul-07
Wind Monte Grighine IT 98.90 49.45 Jul-10
Wind Minerva Messina IT 48.30 48.30 Jul-10
Wind Cagliari II IT 24.00 24.00 Aug-12
Wind Polczyno PO 1.60 1.60 Aug-06
Wind Conesa ES 30.00 30.00 Sep-09
TOTAL 276.15 219.95
70%
13%
11%
6% 1%
Italy
Germany
Spain
Denmark
Poland
Wind and solar PV existing portfolio
Greentech at a glance
72%
28%
Italy
Spain
Q1 2014 Results
27
Wind operating plants
Monte Grighine
Italy Power: 98.9 MW Type of turbine: Nordex Start of operation: July 2010 Ownership: 50%
Oppelstrup
Denmark Power: 7.5 MW Type of turbine: NEG. Micon Start of operation: August 2001 Ownership: 100%
Minerva Messina
Italy Power: 48.3 MW Type of turbine: Nordex Start of operation: July 2010 Ownership: 100%
Conesa
Spain Power: 30.0 MW Type of turbine: Gamesa Start of operation: September 2009 Ownership: 100%
Q1 2014 Results
28
Solar PV operating plants
La Carlota
Cordoba, Spain Power: 9.8 MW Installation type: Fixed-tilt Start of operation: September 2008 Ownership: 50.03%
Montetosto
Lazio, Italy Power: 8.7 MW Installation type: Fixed-tilt Start of operation: March 2011 Ownership: 100%
Fotocampillos
Malaga, Spain Power: 2.1 MW Installation type: Fixed-tilt Start of operation: May 2008 Ownership: 100%
Nardò Caputo
Apulia, Italy Power: 9.8 MW Installation type: Fixed-tilt Start of operation: April 2011 Ownership: 100%
Q1 2014 Results
29
Short-medium and long term pipeline
TOTAL SHORT-MEDIUM TERM PIPELINE: 42 MW
The company is expanding its capacity in Italy and investing mainly in Poland New solar plants are under screening in Italy
TYPE PLANT COUNTRY MW GROSS MW NET GRID
CONNECTION
Wind Ustka Poland 29.90 29.90 2015
Wind Parnowo Poland 12.50 12.50 2015
TOTAL 42.40 42.40
TOTAL PIPELINE: 621 MW
TOTAL LONG TERM PIPELINE: 579 MW
TYPE COUNTRY MW GROSS
Wind Italy 13.50
Wind Italy 70.00
Wind Italy 8.00
Wind Italy 60.00
Wind Italy 23.00
Wind Italy 140.00
Wind Italy 60.00
Wind Poland 12.00
Wind Poland 66.70
Wind Poland 99.00
PV Italy 26.00
Q1 2014 Results 30
ECOLOGY: focused on the development of facilities for the treatment of drinking water
PHOTOVOLTAIC: focused the construction of solar plants, both for internal and external clients
SERVICES: focused on developing monitoring and control systems
KEY BUSINESSES
ENERGY SYSTEMS: involved in the development and construction of plants for the production of energy from hydropower and biomass
Leading Italian company in the engineering, construction and management of micro filtering plants for drinkable water, sludge treatment plants, biomass and mini-hydro
Over 120 MW pipeline in Italy, Serbia, Montenegro, Hungary and Albania
Gruppo Zilio – Complementary EPC Company with Strong, Attractive Prospects
Q1 2014 Results
Disclaimer
31
Greentech Energy Systems A/S (“GES”) is an energy company developing, constructing and operating renewable energy projects
This material is confidential and not to be reproduced or circulated without the prior written consent of GES. The manner of circulation and distribution may be restricted by law or regulation in certain countries. Persons who come into possession of this document are required to inform themselves of, and to observe such restrictions. Any unauthorized use, duplication, or disclosure of this document is prohibited by law and may result in prosecution.
This document is intended for information purposes only. Nothing herein constitutes an invitation to buy or trade shares in GES, nor does it constitute an endorsement with respect to any investment area or vehicle. Any investment or investment activity to which this communication relates is available only to relevant persons and will be engaged in only with relevant persons. GES, its affiliates, and its employees are not in the business of providing tax or legal advice. These materials and any tax-related statements are not intended or written to be used, and cannot be used or relied upon, by any taxpayer for the purpose of avoiding tax penalties. Tax-related statements, if any, may have been written in connection with the ‘promotion or marketing’ of the transaction(s) or matter(s) addressed by these materials, to the extend allowed by applicable law. Any such taxpayer should seek advice based on taxpayer’s particular circumstances from an independent tax advisor.
This presentation contains forward-looking statements reflecting Management’s current perception of future trends and financial performance. Statements relating to 2014 and the subsequent years are inherently subject to uncertainty, and GES’s actual results may therefore differ from the projections. Factors that may cause such variance include, but are not limited to, changes in macro-economic and political conditions – particularly in GES’s principal markets, changes to the supplier situation and approval procedures, volatility in power prices, regulatory changes, possibilities of obtaining and terms and conditions for project funding, etc.
All information contained here is current only as of the earlier of the date hereof and the date on which it is delivered by GES to the intended recipient, or such other date indicated with respect to specific information, and GES assumes no obligation or responsibility for the accuracy of the information after such date. GES has no obligations or responsibility to update or supplement any of the information contained herein.
Some information contained herein has been obtained from third-party sources, including those specifically referenced, and such information has not been independently verified by GES. No representation, warranty, or undertaking, expressed or implied, is given as to the accuracy or completeness of such information by GES or any other person; no reliance may be placed for any purpose on such information, and no liability is accepted by any person for the accuracy and completeness of such information.
Opinions expressed in this document may include those of GES, GES Affiliates, or non-affiliated third parties. In addition, your relationship team may highlight topics that are specific to your objectives. These opinions may differ from the opinions by other businesses or affiliates of GES; they are not intended to be a forecast of future events, a guarantee of future results or investment advice and are subject to change based on market and other conditions. In any event, past performance is no guarantee of future results, and future results may not meet our expectations due to variety of economic, market and other factors. Further, any projections of potential risk or return are illustrative and should not be taken as limitations as to the maximum possible loss or gain.