Mobile Payments presentation
Mobile Payments Certificate
Mobile Payments – The Inflection Point Is Now April 2017
ATONRÂ PARTNERS SA 12, Rue Pierre Fatio – 1204 GENEVA – SWITZERLAND - Tel: + 41 22 310 15 01 http://www.atonra.ch
Mobile Payments Certificate Investment Case ➢ As the mobile payment infrastructure and ecosystem are now in place, we enter the second phase of growth: adoption of payment solutions by consumers ➢ Increasing marketing and improving ergonomics, security and value-added services (such as rewards, loyalty and couponing) should give a major boost to consumer engagement as soon as 2017 ➢ Mass adoption is not a question of if, but when: ✓
the example of e-commerce says it all: despite initial concerns around security, now most consumers make online transactions
✓
new forms of mobile payments will expand the total addressable market: in-car payments and VR shopping
➢ Government incentives for a cashless society are another major catalyst: increasing number of limits on cash transactions all around the world ➢ The best way to capture this secular growth in the volume of digital payments is to get exposure to payment processors, which handle all these transactions
2
3
Mobile Payments Certificate AtonRâ Mobile Payments Certificate details Mobile Payments Certificate details (EUR Institutional)
Mobile Payments Certificate details (EUR Retail)
✓
Issuing bank: SG Issuer
✓
Issuing bank: SG Issuer
✓
Calculation agent: S&P Opco
✓
Calculation agent: S&P Opco
✓
ISIN: CH0239656462
✓
ISIN: CH0239656603
✓
Currency: EUR
✓
Currency: EUR
✓
Fees: 1.5% management fee + 15% performance fee, high water mark
✓
Fees: 2.0% management fee + 15% performance fee, high water mark
✓
Bloomberg ticker: IND1AMPE
✓
Bloomberg ticker: IND1AMPE
Mobile Payments Certificate details (USD Retail) ✓
Issuing bank: SG Issuer
✓
Calculation agent: S&P Opco
✓
ISIN: CH0239657494
✓
Currency: USD
✓
Fees: 2.0% management fee + 15% performance fee, high water mark
✓
Bloomberg ticker: IND1AMPU
Mobile Payments Certificate
4
Tech giants
Processors & Networks
Hardware vendors
Biometrics & Security
5
Mobile Payments Certificate The Mobile At The Heart Of Digital Interactions Top 5: Smartphones penetration ➢ Mobile payments refer to all payment transactions made from or via a mobile device and debited either on a bank account or on a mobile operator bill ➢ The rise of smartphones, tablets, and now wearables has driven new means of paying
Source: geoba.se/usnews.com/ emarketer
Mobile payments categories
Web / In-app Purchases
Person-toPerson Payments
Mobile Proximity Payments
6
Mobile Payments Certificate Smartphones Are Used To Pay, But Also To Get Paid (Merchants) ➢ All smartphones now allow contactless payments in a simple and quick way via an electronic mobile wallet, and can also become POS terminals for merchants
NFC « Wireless exchange of data »
Mobile money (SMS)
QR Code/ Barcode
Mobile as a point-ofsale terminal
Mobile Payments Certificate
7
Africa And China Are The Pioneers Of Mobile Payments ➢
Mobile Payments are a solution for providing financial services to unbanked people:
➢
In Sub Saharan Africa, the mobile penetration in Africa is 70% but only 10% of the population have a bank account
➢
Payments via mobile are the faster and cheaper way to send money to family. The SMS and USSD technology is compatible with 99% of mobiles
➢
In China, under the impulse of e-commerce and due to the low use of bank cards online payment, and especially mobile-commerce, has become a reality
Over 100% Mobile penetration in top tier cities: democratization of smartphones
8
Mobile Payments Certificate The Payment Industry: A Private Club? ➢ New players enter the payment industry, already benefiting from a large customer base and offering many online services: Internet and Tech giants such as Google, Apple, PayPal and Amazon are providing new mobile payments solutions
➢ The legacy players (telecoms, banks, card networks…) must assert themselves. The need for innovation is the opportunity to boost these institutions and offer them a new position in the payment industry
-Payments services Telecoms operators
Financial institutions
-Processors -ISO -Acquirers
Networks
Retailers
POS terminals
Internet Giants & apps developers
9
Mobile Payments Certificate A Look A The Payment Industry Main Players (I)
Hardware / Issuance Payment Card
-
Card Issuance Wirecard First Data TSYS
POS /ATM Terminal
-
POS Terminal Ingenico VeriFone NCR Corp
Hardware and Card Issuance: technology providers ➢
Card issuance: credit and debit card suppliers and software for banks
➢
Semiconductors: At the heart of IT servers, network routers and smartphones
➢
NFC technology, magnetic strip or EMV chips for bank cards
Point of Sale terminals providers (PoS) SIM card, Security Gemalto G&D Oberthur Semiconductor Infineon Samsung STMicro
ATM Hardware NCR Corp Wincor Nixdorf Diebold Inc
10
Mobile Payments Certificate A Look A The Payment Industry Main Players (II) Acquiring Services
Merchant Services Acquiring Services
Processing
Acquirers differ depending on regions (can be banks or financial institutions) In US: First Data Global Payments BOA
-
Terminal services Ingenico Many regional banks offer these services to merchant
➢
The acquirer : providing the merchant the services to accept a transaction. The acquirer will route the encrypted transaction details to the card association/network (Visa/MasterCard)
➢
Distribution and maintenance of PoS
➢
Most large acquirers do the processing part
Some acquirers outsource the processing to third party processors -
TSYS Planet Money WorldPay IPPay
Processors: ➢
The technological side of payment processing: clearing and settlement
➢
Acquirers, processors and POS terminal providers offer value added services to merchants: reporting, fraud management, loyalties program, big data analysis
11
Mobile Payments Certificate A Look A The Payment Industry Main Players (III)
Connection Payment Networks or Association
Connectivity
-
Phone line AT&T Sky British Telecom
-
Internet AT&T Sky British Telecom
-
Credit cards Visa Mastercard Discover American Express
Networks ➢ Identify which financial institution issued the card and re-route the information to the cardholder’s issuing bank ➢ Set the interchange fees
Connectivity -
Debit cards Maestro Visa Electron
➢ Mobile operators and internet: provide connectivity and data transfers
12
Mobile Payments Certificate A Look Behind The Scenes I- Banking data capture and authorization: 1
Point Of Sale
Captures banking data
PROCESSING* The acquirer and processor
~16 pb NETWORKS identify which financial institution issued the card and re-route
2
identify the appropriate network corresponding to the card ISO (Independent sales organizations): resell the processing services
Requests the authorization
5
3
4 Transaction approval or rejection
II- Clearing and Settlement:
The merchant pays to the acquirer a "merchant discount“ of ~ 2.50%. How are these costs shared?
Card Issuing Bank: series of verification (enough funds, fraud…)
13
Mobile Payments Certificate The User Experience Is Key In Mobile Payments Adoption
➢ The biggest challenge remains the change in consumer habits. It has to be simple, intuitive and comprehensive ➢ Mobile payment requires better communication and education ➢ Mobile payments allow the merchant to increase the visibility on its brand, target consumers and increase loyalty services (e.g. coupons) ➢ As illustrated by the recent success of Samsung Pay’s loyalty program, rewards/couponing are expected to be a major catalyst for mobile payments adoption
Fast 36%
Simple 71%
Secure 68%
Confidence, acceptation and adoption
Security Loyalty programs
Rewards
Personalized Adapt Convenience
14
Mobile Payments Certificate Security Concerns Need To Be Ironed Out
➢ HCE «Host Card Emulation»: retains banking data in the cloud ➢ The Secure Element: retains banking data in the mobile
Secure Element
Host Card Emulation
➢ Tokenization: replaces the card number with a single token ➢ Biometry: an other security layer
✓ With tokenization technologies and the emergence of biometrics, mobile payments become more secure than contactless card payments
15
Mobile Payments Certificate
Apple Pay
Samsung Pay
Google Wallet
PayPal
Bitcoin
Any device with the app
Any device with the app
AVAILABILITY From Iphone 6
From samsung galaxy Any device with the S6 app HOW TO USE IT
Fingerprint OK for tap Fingerprint OK for tap Tap to pay . Send Send money via to pay to pay money via app or mail phone number or mail
Scan QR code
HOW IT WORKS Uses NFC to send your encrypted data
Uses NFC + Magnetic Like a debit card Uses PayPal network Totally independent fields (MST) on old (recharge it). At new to transmit credit card money system registers registers uses NFC or debit transactions
SECURITY
Most secure. Retailers Secure. Retailers Secure. Retailers don't Tricky, secure but don't even get your don't get your credit get your credit card you are on your own. credit card card but google does but PayPal does Lose a password, get hacked: your money Banking data in the Banking data in the is gone Banking data in the Cloud (Host Card Cloud (Host Card Secure element + Element) + Element) + tokenization tokenization tokenization
Most secure. Retailers don't even get your credit card
Mobile Payments Certificate
16
Governments Around The World Push Towards A Cashless Society
➢ To fight money laundering and tax evasion in 2014, Israel limits cash transaction between businesses to 5,000 shekels (USD 1,400) and private transactions done in cash or by check to 15,000 shekels ➢
In most EU countries cash payments are limited : ✓ In 2015, France has limited the use of cash payments to EUR 1,000 from EUR 3,000 ✓ In 2016, Italy has limited the use of cash payments to EUR 2,999
➢
India demonetized some of its banknotes at the end of 2016
➢
The European Union plans to launch a service by the end of 2017 that allows mobile payments person-to-person using the mobile phone number as a proxy for the IBAN
➢
Germany plans to impose a limit of EUR 5,000 on cash payments
17
Mobile Payments Certificate Strong Growth Outlook ➢
The annual transaction volume via mobile payments in 2015 was $450bn and is expected to exceed $1tn in 2019
Annual transaction volume in billion US dollars – mobile payments
1080
180
163.6
160
2012
2016
140
930
CAGR ~ 20%
Mobile payment users by region (in millions)
120
780
100
620
80 60
450
40 20
101.3
+92%
85
90.7
+75%
57.8
64
+177% +140%
32.8
26.7
22.3 8.5
1.5 6
0
2015
2016
2017
2018
2019
Source: AtonRa Partners, TrendForce; NFC Source: AtonRa Partners, Gartner Inc.
➢
Asia Pacific and Africa are early and faster adopters of mobile payments with more than 100 million mobile payments users
Mobile Payments Certificate The Future Of Mobile Payments Is Already Taking Shape
➢ In-car payment solutions will allow drivers to
✓ pay for gas, toll fees or public parking ✓ without having to pull their credit card or smartphone from their pocket
➢ Payments in virtual stores are another exciting opportunity ✓ consumers wearing a VR headset will soon have the ability to visit virtual stores and make purchases ✓ Alibaba recently unveiled a VR mall called Buy+ in which consumers gaze at products long enough to select them and nod their heads to buy them ✓ Amazon is said to be working on a similar initiative
18
19
Mobile Payments Certificate Mobile should become even more essential in our everyday lives ...
AtonRâ allows you to invest in the players who build the history of mobile payments 447.9 mn
Number of Mobile Payments users:
323.6 mn
April 2014
Oct 2014
Dec 2014
384mn
Dec 2015
Dec 2016
Mobile Payments
Phase 2: adoption by consumers and merchants: the inflection point is now! Phase 1: technological development and hardware/software deployment Source: AtonRa Partners, Gartner Inc.
DISCLAIMER
20
This report has been produced by the organizational unit responsible for investment research (Research unit) of AtonRâ Partners and sent to you by the company sales representatives. As an internationally active company, AtonRâ Partners SA may be subject to a number of provisions in drawing up and distributing its investment research documents. These regulations include the Directives on the Independence of Financial Research issued by the Swiss Bankers Association. Although AtonRâ Partners SA believes that the information provided in this document is based on reliable sources, it cannot assume responsibility for the quality, correctness, timeliness or completeness of the information contained in this report. The information contained in these publications is exclusively intended for a client base consisting of professionals or qualified investors. It is sent to you by way of information and cannot be divulged to a third party without the prior consent of AtonRâ Partners. While all reasonable effort has been made to ensure that the information contained is not untrue or misleading at the time of publication, no representation is made as to its accuracy or completeness and it should not be relied upon as such. Past performance is not indicative or a guarantee of future results. Investment losses may occur, and investors could lose some or all of their investment. Any indices cited herein are provided only as examples of general market performance and no index is directly comparable to the past or future performance of the Certificate. It should not be assumed that the Certificate will invest in any specific securities that comprise any index, nor should it be understood to mean that there is a correlation between the Certificate’s returns and any index returns. Any material provided to you is intended only for discussion purposes and is not intended as an offer or solicitation with respect to the purchase or sale of any security and should not be relied upon by you in evaluating the merits of investing in any securities.
Mobile Payments – The Inflection Point Is Now April 2017
ATONRÂ PARTNERS SA 12, Rue Pierre Fatio – 1204 GENEVA – SWITZERLAND - Tel: + 41 22 310 15 01 http://www.atonra.ch
Mobile Payments Certificate Investment Case ➢ As the mobile payment infrastructure and ecosystem are now in place, we enter the second phase of growth: adoption of payment solutions by consumers ➢ Increasing marketing and improving ergonomics, security and value-added services (such as rewards, loyalty and couponing) should give a major boost to consumer engagement as soon as 2017 ➢ Mass adoption is not a question of if, but when: ✓
the example of e-commerce says it all: despite initial concerns around security, now most consumers make online transactions
✓
new forms of mobile payments will expand the total addressable market: in-car payments and VR shopping
➢ Government incentives for a cashless society are another major catalyst: increasing number of limits on cash transactions all around the world ➢ The best way to capture this secular growth in the volume of digital payments is to get exposure to payment processors, which handle all these transactions
2
3
Mobile Payments Certificate AtonRâ Mobile Payments Certificate details Mobile Payments Certificate details (EUR Institutional)
Mobile Payments Certificate details (EUR Retail)
✓
Issuing bank: SG Issuer
✓
Issuing bank: SG Issuer
✓
Calculation agent: S&P Opco
✓
Calculation agent: S&P Opco
✓
ISIN: CH0239656462
✓
ISIN: CH0239656603
✓
Currency: EUR
✓
Currency: EUR
✓
Fees: 1.5% management fee + 15% performance fee, high water mark
✓
Fees: 2.0% management fee + 15% performance fee, high water mark
✓
Bloomberg ticker: IND1AMPE
✓
Bloomberg ticker: IND1AMPE
Mobile Payments Certificate details (USD Retail) ✓
Issuing bank: SG Issuer
✓
Calculation agent: S&P Opco
✓
ISIN: CH0239657494
✓
Currency: USD
✓
Fees: 2.0% management fee + 15% performance fee, high water mark
✓
Bloomberg ticker: IND1AMPU
Mobile Payments Certificate
4
Tech giants
Processors & Networks
Hardware vendors
Biometrics & Security
5
Mobile Payments Certificate The Mobile At The Heart Of Digital Interactions Top 5: Smartphones penetration ➢ Mobile payments refer to all payment transactions made from or via a mobile device and debited either on a bank account or on a mobile operator bill ➢ The rise of smartphones, tablets, and now wearables has driven new means of paying
Source: geoba.se/usnews.com/ emarketer
Mobile payments categories
Web / In-app Purchases
Person-toPerson Payments
Mobile Proximity Payments
6
Mobile Payments Certificate Smartphones Are Used To Pay, But Also To Get Paid (Merchants) ➢ All smartphones now allow contactless payments in a simple and quick way via an electronic mobile wallet, and can also become POS terminals for merchants
NFC « Wireless exchange of data »
Mobile money (SMS)
QR Code/ Barcode
Mobile as a point-ofsale terminal
Mobile Payments Certificate
7
Africa And China Are The Pioneers Of Mobile Payments ➢
Mobile Payments are a solution for providing financial services to unbanked people:
➢
In Sub Saharan Africa, the mobile penetration in Africa is 70% but only 10% of the population have a bank account
➢
Payments via mobile are the faster and cheaper way to send money to family. The SMS and USSD technology is compatible with 99% of mobiles
➢
In China, under the impulse of e-commerce and due to the low use of bank cards online payment, and especially mobile-commerce, has become a reality
Over 100% Mobile penetration in top tier cities: democratization of smartphones
8
Mobile Payments Certificate The Payment Industry: A Private Club? ➢ New players enter the payment industry, already benefiting from a large customer base and offering many online services: Internet and Tech giants such as Google, Apple, PayPal and Amazon are providing new mobile payments solutions
➢ The legacy players (telecoms, banks, card networks…) must assert themselves. The need for innovation is the opportunity to boost these institutions and offer them a new position in the payment industry
-Payments services Telecoms operators
Financial institutions
-Processors -ISO -Acquirers
Networks
Retailers
POS terminals
Internet Giants & apps developers
9
Mobile Payments Certificate A Look A The Payment Industry Main Players (I)
Hardware / Issuance Payment Card
-
Card Issuance Wirecard First Data TSYS
POS /ATM Terminal
-
POS Terminal Ingenico VeriFone NCR Corp
Hardware and Card Issuance: technology providers ➢
Card issuance: credit and debit card suppliers and software for banks
➢
Semiconductors: At the heart of IT servers, network routers and smartphones
➢
NFC technology, magnetic strip or EMV chips for bank cards
Point of Sale terminals providers (PoS) SIM card, Security Gemalto G&D Oberthur Semiconductor Infineon Samsung STMicro
ATM Hardware NCR Corp Wincor Nixdorf Diebold Inc
10
Mobile Payments Certificate A Look A The Payment Industry Main Players (II) Acquiring Services
Merchant Services Acquiring Services
Processing
Acquirers differ depending on regions (can be banks or financial institutions) In US: First Data Global Payments BOA
-
Terminal services Ingenico Many regional banks offer these services to merchant
➢
The acquirer : providing the merchant the services to accept a transaction. The acquirer will route the encrypted transaction details to the card association/network (Visa/MasterCard)
➢
Distribution and maintenance of PoS
➢
Most large acquirers do the processing part
Some acquirers outsource the processing to third party processors -
TSYS Planet Money WorldPay IPPay
Processors: ➢
The technological side of payment processing: clearing and settlement
➢
Acquirers, processors and POS terminal providers offer value added services to merchants: reporting, fraud management, loyalties program, big data analysis
11
Mobile Payments Certificate A Look A The Payment Industry Main Players (III)
Connection Payment Networks or Association
Connectivity
-
Phone line AT&T Sky British Telecom
-
Internet AT&T Sky British Telecom
-
Credit cards Visa Mastercard Discover American Express
Networks ➢ Identify which financial institution issued the card and re-route the information to the cardholder’s issuing bank ➢ Set the interchange fees
Connectivity -
Debit cards Maestro Visa Electron
➢ Mobile operators and internet: provide connectivity and data transfers
12
Mobile Payments Certificate A Look Behind The Scenes I- Banking data capture and authorization: 1
Point Of Sale
Captures banking data
PROCESSING* The acquirer and processor
~16 pb NETWORKS identify which financial institution issued the card and re-route
2
identify the appropriate network corresponding to the card ISO (Independent sales organizations): resell the processing services
Requests the authorization
5
3
4 Transaction approval or rejection
II- Clearing and Settlement:
The merchant pays to the acquirer a "merchant discount“ of ~ 2.50%. How are these costs shared?
Card Issuing Bank: series of verification (enough funds, fraud…)
13
Mobile Payments Certificate The User Experience Is Key In Mobile Payments Adoption
➢ The biggest challenge remains the change in consumer habits. It has to be simple, intuitive and comprehensive ➢ Mobile payment requires better communication and education ➢ Mobile payments allow the merchant to increase the visibility on its brand, target consumers and increase loyalty services (e.g. coupons) ➢ As illustrated by the recent success of Samsung Pay’s loyalty program, rewards/couponing are expected to be a major catalyst for mobile payments adoption
Fast 36%
Simple 71%
Secure 68%
Confidence, acceptation and adoption
Security Loyalty programs
Rewards
Personalized Adapt Convenience
14
Mobile Payments Certificate Security Concerns Need To Be Ironed Out
➢ HCE «Host Card Emulation»: retains banking data in the cloud ➢ The Secure Element: retains banking data in the mobile
Secure Element
Host Card Emulation
➢ Tokenization: replaces the card number with a single token ➢ Biometry: an other security layer
✓ With tokenization technologies and the emergence of biometrics, mobile payments become more secure than contactless card payments
15
Mobile Payments Certificate
Apple Pay
Samsung Pay
Google Wallet
PayPal
Bitcoin
Any device with the app
Any device with the app
AVAILABILITY From Iphone 6
From samsung galaxy Any device with the S6 app HOW TO USE IT
Fingerprint OK for tap Fingerprint OK for tap Tap to pay . Send Send money via to pay to pay money via app or mail phone number or mail
Scan QR code
HOW IT WORKS Uses NFC to send your encrypted data
Uses NFC + Magnetic Like a debit card Uses PayPal network Totally independent fields (MST) on old (recharge it). At new to transmit credit card money system registers registers uses NFC or debit transactions
SECURITY
Most secure. Retailers Secure. Retailers Secure. Retailers don't Tricky, secure but don't even get your don't get your credit get your credit card you are on your own. credit card card but google does but PayPal does Lose a password, get hacked: your money Banking data in the Banking data in the is gone Banking data in the Cloud (Host Card Cloud (Host Card Secure element + Element) + Element) + tokenization tokenization tokenization
Most secure. Retailers don't even get your credit card
Mobile Payments Certificate
16
Governments Around The World Push Towards A Cashless Society
➢ To fight money laundering and tax evasion in 2014, Israel limits cash transaction between businesses to 5,000 shekels (USD 1,400) and private transactions done in cash or by check to 15,000 shekels ➢
In most EU countries cash payments are limited : ✓ In 2015, France has limited the use of cash payments to EUR 1,000 from EUR 3,000 ✓ In 2016, Italy has limited the use of cash payments to EUR 2,999
➢
India demonetized some of its banknotes at the end of 2016
➢
The European Union plans to launch a service by the end of 2017 that allows mobile payments person-to-person using the mobile phone number as a proxy for the IBAN
➢
Germany plans to impose a limit of EUR 5,000 on cash payments
17
Mobile Payments Certificate Strong Growth Outlook ➢
The annual transaction volume via mobile payments in 2015 was $450bn and is expected to exceed $1tn in 2019
Annual transaction volume in billion US dollars – mobile payments
1080
180
163.6
160
2012
2016
140
930
CAGR ~ 20%
Mobile payment users by region (in millions)
120
780
100
620
80 60
450
40 20
101.3
+92%
85
90.7
+75%
57.8
64
+177% +140%
32.8
26.7
22.3 8.5
1.5 6
0
2015
2016
2017
2018
2019
Source: AtonRa Partners, TrendForce; NFC Source: AtonRa Partners, Gartner Inc.
➢
Asia Pacific and Africa are early and faster adopters of mobile payments with more than 100 million mobile payments users
Mobile Payments Certificate The Future Of Mobile Payments Is Already Taking Shape
➢ In-car payment solutions will allow drivers to
✓ pay for gas, toll fees or public parking ✓ without having to pull their credit card or smartphone from their pocket
➢ Payments in virtual stores are another exciting opportunity ✓ consumers wearing a VR headset will soon have the ability to visit virtual stores and make purchases ✓ Alibaba recently unveiled a VR mall called Buy+ in which consumers gaze at products long enough to select them and nod their heads to buy them ✓ Amazon is said to be working on a similar initiative
18
19
Mobile Payments Certificate Mobile should become even more essential in our everyday lives ...
AtonRâ allows you to invest in the players who build the history of mobile payments 447.9 mn
Number of Mobile Payments users:
323.6 mn
April 2014
Oct 2014
Dec 2014
384mn
Dec 2015
Dec 2016
Mobile Payments
Phase 2: adoption by consumers and merchants: the inflection point is now! Phase 1: technological development and hardware/software deployment Source: AtonRa Partners, Gartner Inc.
DISCLAIMER
20
This report has been produced by the organizational unit responsible for investment research (Research unit) of AtonRâ Partners and sent to you by the company sales representatives. As an internationally active company, AtonRâ Partners SA may be subject to a number of provisions in drawing up and distributing its investment research documents. These regulations include the Directives on the Independence of Financial Research issued by the Swiss Bankers Association. Although AtonRâ Partners SA believes that the information provided in this document is based on reliable sources, it cannot assume responsibility for the quality, correctness, timeliness or completeness of the information contained in this report. The information contained in these publications is exclusively intended for a client base consisting of professionals or qualified investors. It is sent to you by way of information and cannot be divulged to a third party without the prior consent of AtonRâ Partners. While all reasonable effort has been made to ensure that the information contained is not untrue or misleading at the time of publication, no representation is made as to its accuracy or completeness and it should not be relied upon as such. Past performance is not indicative or a guarantee of future results. Investment losses may occur, and investors could lose some or all of their investment. Any indices cited herein are provided only as examples of general market performance and no index is directly comparable to the past or future performance of the Certificate. It should not be assumed that the Certificate will invest in any specific securities that comprise any index, nor should it be understood to mean that there is a correlation between the Certificate’s returns and any index returns. Any material provided to you is intended only for discussion purposes and is not intended as an offer or solicitation with respect to the purchase or sale of any security and should not be relied upon by you in evaluating the merits of investing in any securities.
