Advik Capital Ltd Management Discussions

NBFCS: AN INDUSTRY OVERVIEW

NBFCs remain a pivotal part of Indias financial services ecosystem, leveraging their deep regional knowledge, faster decision-making capabilities, and customer-centric services to promote financial inclusion. They continue to fill credit gaps, particularly in underserved segments where traditional banks have limited penetration.

The Reserve Bank of Indias Monetary Policy Committee has held the policy repo rate steady at 5.25% through the first half of calendar year 2026, following a cumulative 125-basis-point reduction since February 2025. The Standing Deposit Facility (SDF) stands at 5.00%, while the Marginal Standing Facility (MSF) and Bank Rate are at 5.50%. Having shifted its policy stance from "accommodative" to "neutral" through 2025, the RBI has maintained this pause even as elevated global crude oil prices and geopolitical tensions in West Asia have added fresh uncertainty to the inflation outlook.

According to the IMFs July 2026 World Economic Outlook Update, global growth is projected at 3.0% in 2026 and 3.4% in 2027, down from the average of 3.5% recorded across 2024-25. The moderation largely reflects the impact of the conflict in the Middle East on energy markets, partly offset by continued momentum in the global technology cycle driven by sustained investment in Artificial Intelligence. Global headline inflation is now expected to rise to 4.7% in 2026, as the broad-based disinflation trend observed since 2024 has stalled.

Risks to the outlook remain tilted to the downside amid the ongoing geopolitical conflict, elevated energy prices, and continued trade policy uncertainty. Divergent recovery paths across regions - with energy exporters benefiting from favourable terms of trade while several energy-importing economies face headwinds - underscore the uneven nature of the global recovery. Policymakers continue to balance the trade-offs between managing inflation, supporting growth, and rebuilding fiscal buffers, while pursuing structural reforms and stronger multilateral cooperation.

Source: IMF World Economic Outlook Update, July 2026

MACROECONOMIC OVERVIEW

The global economy has shown notable resilience in the face of a challenging environment marked by the Middle East conflict, elevated energy prices, and shifting trade policies. While growth for 2026 has moderated relative to the 2024-25 average, the world economy has thus far absorbed these shocks better than initially feared, aided by inventory drawdowns, increased non-Gulf oil output, and demandcurbing policy measures. A rising share of renewable energy and lower energy intensity across economies have also strengthened overall resilience.

The technology investment boom, particularly around Artificial Intelligence, has been a key offsetting force, lifting growth in economies well-integrated into the global technology value chain even as energy-importing and geopolitically exposed economies face headwinds. Financial conditions, which tightened sharply earlier in the year, have since eased and remain broadly supportive by historical standards, though divergent and swiftly changing policy positions continue to pose risks of tighter global financial conditions. Global headline inflation is now expected to edge up to 4.7% in 2026 from 4.1% in 2025, primarily on account of an anticipated rise in crude oil prices, before easing to 3.9% in 2027 as energy markets stabilise, contingent on a gradual normalisation of shipping and trade routes through West Asia.

INDIAN ECONOMY OVERVIEW

Indias economic performance in FY 2025-26 reflected an exceptionally strong growth trajectory, with the nations Gross Domestic Product (GDP) accelerating to 7.7%, as per the Provisional Estimates released by the Ministry of Statistics and Programme Implementation (MoSPI) in June 2026 - up from 7.1% in FY 2024-25 and comfortably ahead of the governments initial 6.3-6.8% projection for the year. This growth was underpinned by robust private consumption, which grew 7.7% compared to 5.8% in the previous year and now accounts for 61.5% of GDP - the highest share since FY 2011-12 - alongside a pick-up in investment activity, with Gross Fixed Capital Formation rising 8.2% for the year and touching a 13-quarter high of 10.8% in the fourth quarter. Double-digit growth in the manufacturing sector (10.7%, up from 9.3% in FY 2024-25) and sustained momentum in trade, hospitality, transport and communication services (10.1%) further reinforced the growth momentum, even as global trade uncertainties and geopolitical tensions in West Asia remained key external risks.

GDP Growth (in %)

FY 2021-22	FY 2022-23	FY 2023-24	FY 2024-25	FY 2025-26
8.7	7.0	7.2	7.1	7.7

Sector-wise Performance in FY 2025-26

Agriculture and Allied Sectors: The agricultural sector recorded GVA growth of around 3.0% in FY 2025-26, moderating from 4.2% in the previous year on account of an uneven monsoon and heat- related disruptions in parts of the country, even as overall foodgrain output remained resilient. Government-led initiatives focused on farmer welfare and agricultural infrastructure continued to reinforce rural incomes and demand.

Industrial Sector: The industrial sector was led by an exceptional performance in manufacturing, which posted double-digit growth of 10.7% in FY 2025-26 - up from 9.3% in FY 2024-25 - cementing its position as the single largest contributor to the years GDP acceleration. Sustained capacity utilisation, stronger export orders, and continued momentum under the Production-Linked Incentive (PLI) and make in India initiatives underpinned this performance, alongside a pick-up in construction activity supported by higher cement and steel consumption.

Services Sector: The services sector continued to anchor Indias growth story, with the Trade, Repair, Hotels, Transport, Communication and Broadcasting-related Services segment recording growth of 10.1% in FY 2025-26, reflecting robust urban and rural consumption alongside continued digitalisation of services delivery. Financial, real estate and professional services also remained key growth drivers through the year.

Consumption and Investment: Private Final Consumption Expenditure (PFCE) grew by 7.7% in FY 2025-26, up sharply from 5.8% in the previous year, supported by GST rationalisation, income tax relief announced in successive Union Budgets, and softer borrowing costs following the RBIs rate cuts through 2025. Government Final Consumption Expenditure also rebounded strongly, growing 5.2% compared to 2.3% in FY 2024-25. Gross Fixed Capital Formation grew 8.2% for the full year, with a marked pick-up to 10.8% in the fourth quarter, reflecting a broadening investment cycle.

On the price front, retail inflation remained benign for much of FY 2025-26, staying below the RBIs 4% target for extended stretches of the year and enabling successive policy rate cuts. However, headline CPI inflation rose to 4.38% in June 2026 - crossing the RBIs medium-term target for the first time in roughly eighteen months - driven by a rebound in food prices amid supply disruptions and rising global energy and precious-metal prices linked to the West Asia conflict. Core inflation, excluding precious metals, remained comfortable at around 2.9%, indicating that underlying demand- side price pressures continue to be well contained.

Through FY 2025-26, the RBIs Monetary Policy Committee delivered a cumulative 125 basis points of repo rate cuts - including a 50bps reduction in June 2025 and a further 25 bps cut in December 2025

- bringing the repo rate down to 5.25%, alongside CRR cuts, government bond purchases, and USD/INR swap operations that injected substantial durable liquidity into the banking system. Having shifted its stance to "neutral", the RBI held rates steady through the first half of calendar 2026, while flagging a more cautious inflation outlook - raising its FY 2026-27 CPI forecast to 5.1% from 4.6% earlier - even as it revised down its FY 2026-27 GDP growth projection to 6.6% from 6.9%, citing downside risks from the West Asia conflict and expectations of a weaker-than-normal monsoon.

The Union Budget for FY 2026-27, presented on 1 February 2026, reinforced the governments commitment to fiscal consolidation alongside continued capital investment. Capital expenditure was raised by around 9% to a record INR 12.2 Lakh Crore, up from INR 11.2 Lakh Crore in the FY 202526 revised estimates, sustaining the governments infrastructure-led growth agenda. The fiscal deficit target for FY 2026-27 was set at 4.3% of GDP, down from the 4.4% revised estimate for FY 2025-26, with the debt-to-GDP ratio projected to decline to 55.6%, in line with the governments medium-term goal of bringing it down to around 50% by FY 2030-31. The Budget also introduced targeted measures for the MSME sector - including an INR 10,000 Crore SME Growth Fund to nurture "Champion SMEs" and an additional INR 2,000 Crore for the Self-Reliant India Fund - alongside an enhanced outlay for the Electronics Components Manufacturing Scheme and the launch of India Semiconductor Mission 2.0, aimed at deepening domestic manufacturing capabilities.

Road Ahead

The RBI projects Indias GDP growth to moderate to 6.6% in FY 2026-27, from the exceptional 7.7% recorded in FY 2025-26, reflecting normalisation from an elevated base as well as downside risks from the ongoing geopolitical conflict in West Asia and expectations of a weaker monsoon. Nonetheless, sustained structural reforms, continued momentum under Make in India and the PLI schemes, and large-scale infrastructure investment across highways, ports and smart cities are expected to keep India among the fastest-growing major economies. With continued policy support, easing borrowing costs, and resilient domestic demand, India remains well-positioned to sustain its growth trajectory over the medium term, solidifying its role as a global economic powerhouse.

Source: https://www.pib.gov.in/PressReleasePage.aspx Rs.PRID=2233792;

INDIAN FINANCIAL SERVICES SECTOR OVERVIEW

Indias financial services sector navigated a dynamic environment through FY 2025-26, shaped by an extended RBI rate-easing cycle and evolving global conditions. Having delivered a cumulative 125 basis points of rate cuts along with CRR reductions and durable liquidity infusions since early 2025, the RBI supported a gradual improvement in system liquidity and credit transmission, even as banks and NBFCs continued to navigate margin pressures from lower lending rates. System credit growth is estimated to have improved modestly to around 13-13.5% in FY 2025-26, aided by a revival in private capital expenditure and continued retail and MSME demand, even as growth in bank lending to NBFCs and in unsecured retail loans remained more measured.

The sectors digital transformation continued at pace, with Artificial Intelligence, Open Banking, and the Digital Rupee increasingly embedded in mainstream financial services delivery, enhancing both customer experience and risk management capabilities. The insurance industry continued to adapt to emerging risks, including climate and health-related exposures. However, challenges persisted around asset quality in unsecured lending segments and rising credit card delinquencies, particularly among younger borrowers. Looking ahead, headline retail inflation crossing the RBIs 4% target in June 2026

- driven by food and precious-metal price pressures linked to elevated global energy prices - has introduced fresh uncertainty into the near-term rate outlook, even as Indias financial services sector remains well-positioned for sustained growth, supported by robust digital infrastructure, proactive regulatory measures, and continued financial inclusion efforts.

INDUSTRY SCENARIO AND FINANCING

The Non-Banking Financial Companies (NBFC) sector continued to serve as an indispensable pillar of Indias financial framework in FY 2025-26, deepening financial inclusion and broadening credit access. The sectors Assets Under Management (AUM) crossed the INR 50 Lakh Crore mark (approximately USD 555 Billion) during FY 2024-25 and is projected to expand to around INR 70 Lakh Crore by FY 2026-27, with retail NBFC AUM alone expected to approach INR 45 Lakh Crore over the same period. Overall AUM growth is projected to sustain a pace of 15-17% annually through FY 2027-28 - a moderation from the roughly 20% expansion recorded in FY 2024-25 - reflecting a high base, more calibrated risk strategies, and continued regulatory emphasis on prudent underwriting, particularly in unsecured lending. Despite this moderation, essential lending verticals including SME financing, loans against property (LAP), and used vehicle financing are expected to continue their growth trajectory, underscoring the sectors underlying resilience.

Regulatory and Market Dynamics

Regulatory reforms continued to reshape the NBFC landscape in FY 2025-26, with the RBIs scale- based regulatory framework further embedding governance, risk management and operational discipline across the sector. In a supportive development, the RBI partially rolled back the earlier increase in risk weights on bank lending to NBFCs, easing the flow of bank credit to the sector after growth in such lending had decelerated sharply over the preceding year. The continued focus on diversifying funding sources - including co-lending partnerships with banks and sustained Foreign Direct Investment inflows - remains central to the sectors efforts to reduce reliance on traditional bank funding and manage liquidity and concentration risks. Private credit inflows into Indian financial services have also picked up materially, reflecting sustained global investor confidence in the sectors long-term prospects. At the same time, competition from banks and fintech players continues to intensify, requiring NBFCs to strengthen risk assessment frameworks and pursue strategic realignment to preserve market relevance.

Digital transformation remains a key growth enabler for NBFCs, with AI-driven credit assessment, digital lending platforms and data-driven risk management continuing to enhance efficiency and customer accessibility. Government initiatives such as PMJDY and Mudra Yojana, together with the enhanced MSME classification thresholds effective from FY 2025-26, continue to support the sectors expansion into underserved markets. While challenges such as regulatory compliance, competition from banks and fintechs, and macroeconomic uncertainties persist, NBFCs that leverage technology, diversify funding sources and strengthen risk management frameworks remain best placed to capture sustainable, long-term growth in Indias evolving financial landscape.

Passenger Vehicle (PV)

The Indian passenger vehicle (PV) market delivered its strongest performance on record in FY 202526, with the industry, per SIAM data, registering an all-time high of 46.43 lakh units sold - a growth of 7.9% over FY 2024-25. The fourth quarter alone contributed a record 13.16 lakh units, up 13.2% year- on-year, as the positive momentum built through the second half of the year accelerated further. This performance was underpinned by improved affordability following the GST 2.0 rate rationalisation announced in September 2025, greater purchasing power from personal income tax relief, and progressively lower financing costs as the RBI delivered successive repo rate cuts through the year. Electric passenger vehicle registrations surged by more than 80% during the year, reflecting accelerating consumer adoption, while exports touched a record high of 9.05 lakh units, up 17.5% over the previous year, with sustained demand across the Middle East, Africa and Latin America.

Sports Utility Vehicles (SUVs) continued to lead the segment, driven by a steady stream of new model launches and evolving consumer preferences, while manufacturers increasingly leveraged digital platforms for sales, marketing and customer engagement. The broader automobile industry also recorded its highest-ever annual sales across categories in FY 2025-26, with commercial vehicles up

12.6% to 1.08 million units, three-wheelers up 12.8% to 0.84 million units, and two-wheelers up 10.7% to 21.71 million units. Looking ahead, the sectors long-term growth trajectory remains positive, supported by rising incomes, continued urbanisation, and an expanding electric vehicle ecosystem, even as the industry continues to monitor evolving geopolitical developments and their implications for supply chains and export volumes.

Micro, Small and Medium Enterprises (MSMEs)

The Indian MSME sector continued to expand through FY 2025-26, supported by favourable government policies, sustained credit access and steady export momentum. As per the Ministry of MSMEs Year-End Review released in December 2025, over 4.37 Crore enterprises were registered on the Udyam Registration Portal, with an additional 2.92 Crore registered under the Udyam Assist Platform (UAP), which extends formal recognition to informal micro-enterprises. MSME exports had already risen from INR 3.95 Lakh Crore in FY 2020-21 to INR 12.39 Lakh Crore in FY 2024-25, and the sector saw a further rebound in export momentum during FY 2025-26 after a period of moderation in the preceding years.

The revised MSME classification criteria announced in the Union Budget 2025-26 - raising investment limits by 2.5 times and turnover limits by 2 times - came into effect from 1 April 2025, and continued to support business scalability through FY 2025-26 while preserving access to MSME-specific benefits for a wider set of enterprises. The Union Budget for FY 2026-27 built further on this momentum, introducing a dedicated INR 10,000 Crore SME Growth Fund to help nurture "Champion SMEs" and an additional INR 2,000 Crore allocation for the Self-Reliant India Fund, alongside continued support for public procurement from micro and small enterprises.

With MSMEs continuing to contribute close to 30% of Indias GDP, nearly 45% of the countrys manufacturing output, and around 40% of its exports, the sector remains a vital engine of employment generation and industrial development. Rising digitalisation, growing adoption of sustainable and green manufacturing practices, and continued investment in skill development are expected to further strengthen the sectors competitiveness and resilience in the years ahead.

Gold Loan

The landscape of the Indian gold loan market continued to evolve through FY 2025-26, with a growing share of urban and semi-urban consumers turning to gold-backed credit for their liquidity needs. Traditionally dominated by rural borrowers and small businesses, the segment has seen rising adoption among salaried professionals and self-employed individuals, aided by minimal paperwork, rapid approvals, and expanding digital gold loan offerings that allow customers to pledge gold and access funds electronically.

NBFCs continued to focus on product innovation - introducing flexible repayment schedules, competitive interest rates and enhanced loan-to-value (LTV) ratios - to serve an increasingly diverse borrower base. The sharp rally in gold and silver prices through FY 2025-26 has been a double-edged sword for the sector: rising collateral values have supported higher loan disbursements and improved recovery, even as continued price volatility exposes lenders to valuation risk.

Regulatory oversight of the segment remains tight, with the RBI continuing to enforce stricter compliance protocols around loan-to-value norms, valuation practices and end-use monitoring, reinforcing transparency and equitable lending practices across the industry.

OUR COMPANY: ADVIK CAPITAL AT GLANCE

Advik Capital Limited, headquartered in New Delhi, is an emerging Non-Deposit Taking Non-Banking Financial Company (NBFC), registered with the Reserve Bank of India (Registration No. B-14.00724). Classified as an NBFC - Investment and Credit Company (NBFC-ICC), the Company falls under the Base Layer (NBFC-BL) category as per the RBIs Scale Based Regulation (SBR) framework.

Advik Capital is primarily engaged in providing financial loans and allied services. As a listed entity, the Companys equity shares are actively traded on the Bombay Stock Exchange (BSE) under Scrip Code: 539773.

With a legacy spanning over 37 years, Advik Capital has evolved into a dynamic financial institution, having built a diversified product portfolio and strong regional presence while serving a growing customer base. Our core businesses include extending loans and advances to industrial concerns, leasing operations, bridge financing for corporates, and investments in emerging businesses and securities. The Company continues to actively evaluate growth avenues within personal and consumer finance.

To diversify into electronic manufacturing and trading, Advik Capital established Advik Optoelectronics Limited in 2013 as a wholly owned subsidiary. However, it ceased to be a subsidiary effective September 30, 2024.

In 2022, we incorporated Advikca Finvest Limited (CIN: U65900DL2022PLC406590), a wholly owned subsidiary focused on dealing in shares, securities, rights, and interests in movable and immovable assets. Advik Capital currently holds 100% of the paid-up share capital of Advikca Finvest (with 6 equity shares held by nominee shareholders).

OUR BUSINESS STRATEGY

Maintain and Expand Long-term Relationships with Clients

Our Company believes that business is a by-product of relationship. The business model is based on client relationships that are established over a period of time rather than a project-based execution approach. Our Company believes that long-term client relationships fetch better dividends. Long-term relations are built on trust and continuous satisfaction of the customers. It helps in understanding the basic approach of our Company, its products and its market. It also forms the basis of further expansion for our Company, as we are able to monitor a potential product/market closely.

Leveraging of our Marketing Skills and Relationships

We continue to enhance our business operations by ensuring that our network of customers increases through our marketing efforts. Our core competency lies in our deep understanding of our customers buying preferences and behaviour, which has helped us achieve customer loyalty. We endeavour to continuously improve the product mix offered to customers as well as strive to understand and anticipate any change in the expectations of our clients towards our products.

Diversified credit profile, strong credit evaluation and risk management systems

We seek to diversify our credit risk and ensure that no individual credit product contributes a large portion to our overall credit book. We believe that this mitigates the risk of concentration in any particular product or sector and helps us manage our risk exposure more effectively.

Diversify our assets and liabilities

We intend to remain diversified in our loan book by strategically focusing on adjacent high-growth and profitable lending businesses and further expanding our lending and other businesses. We intend to continue focusing on developing a diversified funding model to achieve optimal cost of funds while balancing liquidity and concentration risks. As our cost of borrowings is determined by our financial discipline and business performance, we intend to source funding at competitive rates. In particular, with respect to our credit business, a decrease in cost of borrowings will enable us to price our products more competitively. We intend to further diversify and strengthen our profile by strategically adding additional funding resources.

Growth of the business through increasing geographical presence across India

We intend to continue growing our loan portfolio by expanding our network through the addition of new branches. Good reach to customers is very important in our business. Increased revenue, profitability and visibility are the factors that drive branch network expansion. Our strategy for branch expansion includes further strengthening our presence across various parts of India by providing higher accessibility to customers.

RISK & THREATS

In any business, risks and prospects are inseparable. As a responsible management, the Companys principal endeavour is to maximize returns. The Company continues to take all steps necessary to minimize its expenses through detailed studies and interaction with experts.

General Risks

The NBFC industry in general faces the risk of re-entry and new entry of players and the existence of several unorganized regional players increasing competition, which mainly affects asset quality. This is further characterized by captive NBFCs floated by other business houses. The ever-existing systemic and delinquency risks, along with fluctuations in interest rates and risk weights, make companies more vulnerable. Deployment of funds in sensitive and volatile sectors increases risk exposure, while concentration risk increases dependency.

Other Risks

Management of Advik Capital Limited contemplates the following as risks and threats to its business, namely:

1. Being an NBFC, we are subject to supervision and regulation by the RBI, and any changes in RBIs regulations governing us would affect our business.

2. We depend on the accuracy and completeness of information about customers and counterparties for certain key elements of our credit assessment and risk management process; any misrepresentation, errors in, or incompleteness of such information could adversely affect the Companys business and financial performance.

3. Since we are an evolving business, it is difficult to evaluate our business and future operating results on the basis of our past performance, and our future results may exceed or may not meet our past performance.

4. Our financial performance is particularly vulnerable to interest rate volatility. We need to continuously manage interest rate risk.

5. High levels of customer defaults or delays in repayment of loans. We may not be able to recover, on a timely basis or at all, the full value of collateral or amounts sufficient to cover the outstanding amounts due under defaulted loans.

6. Our indebtedness and the conditions and restrictions imposed by our financing agreements could restrict our ability to conduct our business and operations in the manner we desire.

7. We face increasing competition in our business, which may result in declining margins if we are unable to compete effectively.

OUR STRENGTHS

Experienced Leadership

Our senior management team comprises seasoned professionals with expertise across management, finance, operations, corporate law, and compliance. Their diverse backgrounds and commitment to regulatory integrity form the backbone of our strategic and operational excellence.

Strong Corporate Governance

We uphold high standards of corporate governance, reinforced by robust internal policies, transparent practices, and adherence to statutory frameworks. This is supported by sound risk management, credit evaluation systems, and responsible business conduct.

Customer-Centric Marketing

A dedicated marketing team ensures tailored financial solutions to meet evolving customer needs, helping us retain and expand our client base.

Competitive Edge

Operating in a highly competitive market, we differentiate ourselves through agility, deep customer insight, and innovative lending models. While banks and fintechs present strong competition, our understanding of underserved markets and flexible structures gives us an operational advantage.

Skilled Workforce

Our employees are a core asset. We foster a growth-oriented, performance-driven culture with continued investment in leadership development and employee capability building.

Corporate Social Responsibility (CSR)

We integrate CSR into our operations by promoting education, environmental sustainability, and community development, aiming to create long-term social impact.

Internal Control Systems

We maintain robust internal controls aligned with the scale of our operations. These systems ensure compliance, accuracy in financial reporting, and safeguarding of assets. The Audit Committee periodically reviews and strengthens these controls for enhanced accountability and transparency.

FUTURE STRATEGY

The Board has outlined a strategic roadmap for the next 3 to 5 years, centered on driving sustainable growth and achieving operational excellence. The key initiatives include:

• Periodic Review of Business Strategies: Conducting regular evaluations to ensure alignment with market dynamics while maintaining efficient liquidity management.

• Optimising Operations and Expanding the Product Portfolio: Streamlining workflows and broadening the range of products across all branches to better serve customer needs.

• Enhancing Loan Disbursement and Collections: Utilizing advanced data analytics to strengthen loan processing, improve collection efficiencies, and ensure timely decision-making.

• Strengthening Market Leadership: Driving continuous innovation and pursuing strategic advancements to reinforce the Companys position as an industry leader.

• Improving Loan Portfolio Quality: Implementing comprehensive risk assessment and mitigation strategies to enhance asset quality and ensure long-term stability.

• Deepening Customer Relationships: Fostering customer loyalty and satisfaction through personalized engagement and relationship-building initiatives.

• Expanding Customer Acquisition: Offering seamless digital payment solutions to attract and onboard a wider customer base.

• Adopting Artificial Intelligence and Machine Learning: Increasing the integration of AI and ML technologies across operations to deliver superior customer service and operational efficiency.

• Launching Tailored Financial Solutions: Introducing customized products that address evolving customer needs, expanding the product suite, and enhancing market competitiveness.

• Maximizing Customer Lifetime Value: Deepening customer engagement through effective cross-selling and upselling strategies, providing relevant products and services.

• Expanding the Agent Network: Growing the network of agents to enhance the distribution and penetration of retail liability products, supporting the Companys focus on mobilizing low-cost funds.

• Promoting Diversity and Inclusion: Fostering a more equitable workplace by increasing the representation of women across various roles and leadership positions, thereby creating a dynamic and inclusive environment.

CAUTIONARY STATEMENT

This Statement contains forward-looking statements about the business, financial performance, skills and prospects of the Company. Statements about the plans, intentions, expectations, beliefs, estimates, predictions or similar expressions for the future are forward-looking statements. Forward-looking statements should be viewed in the context of many risk issues and events that could cause actual performance to be different from that contemplated in the Directors Report and Management Discussion and Analysis Report. Actual results could differ materially from those expressed or implied.