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The Top Ten Internet Trends in 2013
1. EQUITY I RESEARCH
Ad Age Digital Conference 2013
The Top Ten Internet Trends in 2013
RBC Capital Markets, LLC
Mark S. Mahaney (Analyst) (415) 633-8608 mark.mahaney@rbccm.com
André Séquin (Analyst) (212) 618-7688 andre.sequin@rbccm.com
Brian Peak (Associate) (212) 548-3183 brian.peak@rbccm.com
Kevin Potterton (Associate) (212) 428-6489 kevin.potterton@rbccm.com
April 16, 2013
This report is priced as of market close April 9, 2013 EST.
All values in U.S. dollars unless otherwise noted.
For Required Conflicts Disclosures, please see page 34.
2. Agenda
I. Internet Sector Coverage & Comps
II. GOOG and FB Drill Down
III. 2013 U.S. Internet Sector Outlook
IV. Top 10 Internet Trends in 2013
V. RBC’s Top 3 Internet Stock Picks…GOOG, PCLN, AMZN
Mark S. Mahaney (Analyst) (415) 633-8608 mark.mahaney@rbccm.com 2
André Séquin (Analyst) (212) 618-7688 andre.sequin@rbccm.com
4. Internet Sector Coverage
Company Name Ticker Price Rating Target Price
Active Network ACTV $4.16 OP $8
Amazon AMZN $261.14 OP $330
Angie's List ANGI $19.34 SP $18
AOL AOL $39.28 OP $45
Bankrate RATE $11.75 SP $11
Blue Nile NILE $32.28 OP $38
Demand Media DMD $8.23 OP $13
eBay EBAY $56.07 OP $64
Expedia EXPE $62.43 SP $73
Facebook FB $26.59 OP $32
Google GOOG $777.65 OP $950
Groupon GRPN $5.94 SP $5
IAC/InterActiveCorp IACI $44.50 OP $56
Liquidity Services LQDT $33.07 OP $46
LinkedIn LNKD $172.07 SP $190
Marchex MCHX $4.01 SP $4
Netflix NFLX $169.36 OP $210
Priceline PCLN $696.13 OP $900
Shutterstock SSTK $42.53 OP $35
TripAdvisor TRIP $48.29 SP $45
Trulia TRLA $31.80 OP $41
Velti VELT $1.92 SP $3
Web.com WWWW $16.55 OP $20
Yahoo! YHOO $23.83 OP $24
Yelp YELP $24.62 SP $26
Zillow Z $54.14 OP $60
Source: RBC Capital Markets
*VELT, MCHX, and Z are rated Speculative Risk
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5. Sector Coverage Comps Table
Comparable Valuation Analysis
(in millions, except per share amounts)
Shares Market Adjusted P/E EV/EBITDA FCF/EV Yield
Company Ticker Price Outstanding Cap (USD) EV (USD) FY13E FY13E FY13E
Active Network, Inc. ACTV $4.16 60.42 251.36 192.87 N/M 3.8x 8.4%
Amazon.com, Inc. AMZN $261.14 461.00 120,385.54 112,021.54 89.5x 20.0x 3.9%
Angie's List Inc. ANGI $19.34 57.89 1,119.57 1,091.80 N/M N/M N/M
AOL Inc. AOL $39.28 88.10 3,460.57 2,993.97 27.0x 7.1x 9.1%
Bankrate, Inc. RATE $11.75 100.10 1,176.19 1,286.55 24.0x 11.5x 4.8%
Blue Nile, Inc. NILE $32.28 12.76 411.80 324.78 29.5x 13.0x 8.3%
Demand Media, Inc. DMD $8.23 88.44 727.89 624.96 21.2x 5.5x 6.9%
eBay, Inc. EBAY $56.07 1,318.00 73,900.26 65,967.26 20.5x 12.4x 4.7%
Expedia, Inc. EXPE $62.43 140.76 8,787.40 8,396.12 19.4x 9.3x 11.9%
Facebook, Inc. FB $26.59 2,506.00 66,634.54 52,708.54 48.4x 14.4x 3.0%
Google Inc. GOOG $777.65 334.98 260,494.86 220,931.86 17.0x 9.8x 6.6%
Groupon, Inc. GRPN $5.94 655.68 3,894.73 2,685.44 56.5x 8.8x 1.1%
IAC/InterActiveCorp IACI $44.50 94.27 4,194.88 4,020.14 11.8x 6.2x 11.7%
Liquidity Services, Inc. LQDT $33.07 33.05 1,093.10 1,047.21 15.1x 8.1x 7.8%
LinkedIn Corp. LNKD $172.07 114.10 19,632.33 18,882.78 134.3x 53.9x 0.7%
Marchex, Inc. MCHX $4.01 40.37 161.90 31.37 25.0x 2.4x 18.9%
Netflix, Inc. NFLX $169.36 62.38 10,564.51 10,113.22 75.7x 34.1x 1.4%
priceline.com Inc. PCLN $696.13 51.47 35,829.81 31,701.09 17.8x 12.7x 6.1%
Shutterstock, Inc. SSTK $42.53 32.68 1,389.95 1,287.85 57.9x 28.3x 2.7%
TripAdvisor Inc. TRIP $48.29 144.15 6,960.91 6,854.32 27.3x 17.0x 4.4%
Trulia, Inc. TRLA $31.80 27.33 869.04 775.47 196.7x 65.9x 0.8%
Velti plc VELT $1.92 66.00 126.71 118.33 N/M 10.6x 9.7%
Web.com WWWW $16.55 50.00 827.50 1,499.86 8.4x 9.7x 6.7%
Yahoo! Inc. YHOO $23.83 1,130.00 26,927.90 10,052.28 20.8x 6.1x 7.4%
Yelp Inc. YELP $24.62 63.02 1,551.43 1,456.31 242.8x 66.5x 0.2%
Zillow Inc. Z $54.14 36.29 1,964.85 1,814.81 196.4x 51.8x 1.6%
Source: Company reports and RBC Capital Markets estimates
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10. U.S. Online Advertising – 15%+ Growth in ’13…Thanks to SoLoMoVo*
($ in MM) 2009 2010 2011 2012E 2013E 2014E
Total U.S. Advertising $162,024 $166,600 $171,750 $178,620 $183,979 $189,498
Y/Y Change -15% 3% 3% 4% 3% 3%
U.S. Online Advertising $22,661 $26,041 $31,735 $36,963 $42,508 $48,034
Y/Y Change -3% 15% 22% 16% 15% 13%
Internet as % of Total 14% 16% 18% 21% 23% 25%
Y/Y Incr. in Penetration (bps) 181 164 285 222 241 224
Source: RBCCM Estimates, Magna Global *Social, Local, Mobile, Video
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11. U.S. Online Retail – 15%+ Growth in ’13…Upside Due to Mobile & SDD*
($ in B) 2009 2010 2011 2012A 2013E 2014E
Total U.S. Retail* $1,743 $1,803 $1,916 $2,011 $2,091 $2,186
Y/Y Change -5.4% 3.5% 6.3% 5.0% 4.0% 4.5%
Total U.S. Online Retail Sales $143 $166 $194 $225 $258 $292
Y/Y Change 0.8% 16.0% 16.6% 15.9% 15.0% 13.0%
Online As % of Total U.S. Retail* 8% 9% 10% 11% 12% 13%
Y/Y Incr. in Penetration (bps) 50 99 90 106 118 100
*Excludes Auto, Gas, Food, and Health & Personal Care
Source: RBCCM Estimates, Department of Commerce *Same Day Delivery
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12. U.S. Online Travel – High Single Digit Growth in 2013…Maturing
($ in MM) 2009 2010 2011 2012E 2013E 2014E
U.S. Leisure Travel Sales $160,228 $172,217 $183,393 $192,562 $201,228 $211,289
Y/Y Change -10% 7% 6% 5% 4% 5%
U.S. Online Travel Sales $89,343 $99,069 $108,540 $117,417 $125,828 $135,225
Y/Y Change -6% 11% 10% 8% 7% 7%
Online as % of Total 56% 58% 59% 61% 63% 64%
Y/Y Incr. in Penetration (bps) 239 177 166 179 155 147
Source: RBCCM Estimates, PhocusWright
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13. What The “Almighty 2nd Derivative” Says About Online Penetration…
Growth of Online Retail Sales as a Percent of Total Retail
14%
14% 175
175
12%
12% 150
150
Y/Y Incr. in Penetration (bps)
Y/Y Incr. in Penetration (bps)
Online As % of Retail
Online As % of Retail
10%
10% 125
125
8%
8% 118
118 100
100
99 104
106
6% 99 75
6% 90
90 75
4%
4% 50
50
50
50
2%
2% 25
25
0%
0% 0
0
2009
2009 2010
2010 2011
2011 2012E
2012A 2013E
Online As %%of Total U.S. Retail (Adj.)*
Online As of Total U.S. Retail* Y/Y Incr. inin Penetration (bps)
Y/Y Incr. Penetration (bps)
*Excludes Auto, Gas, Food, and Health & Personal Care
Source: RBCCM Estimates, Department of Commerce
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14. The Unit Growth Potential That Secular Growth Begets***
Unit Growth at a Sampling of Internet Companies in Q3:12
100%
90% 87%
82%
80%
80%
68%
70%
YoY Growth
60%
54%
52%
50%
39%
40% 37% 36%
33%
30%
20%
10%
0%
L NKD YEL P Z (P r A NGI P ( Li TR LA A MZN GR PN PC LN GO O
(C or p (Bus i emie (P aid s tene (A ge (Unit (A ct i (Roo G (Pa
orate ness r Ag e Mem r Hou nt Su s Shi ve C u m Ni id Cl
C ust A cc o nt S u bers h rs) bs ) pped st om g hts ) i ck s)
omer unt s) bs) ips) ) ers )
s)
*** Assuming effective management, market share gains, successful product innovation, etc…
Source: RBCCM, Company Reports
Mark S. Mahaney (Analyst) (415) 633-8608 mark.mahaney@rbccm.com 14
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16. 1. International Recovery…The Implications Of “Less Worse” Overseas Markets
Growth in Core Euro Area Countries International Revenue Exposure
100%
8
90% 81%
6
80%
4
70%
2
56%
YoY Growth
60% 53% 52%
0 49% 49%
50% 43% 43%
-2
1
40% 32%
-4 30%
30%
-6
20%
-8 10%
10%
-10
0%
2005 2006 2007 2008 2009 2010 2011 2012 2013
PCLN GRPN GOOG EBAY FB TRIP AMZN EXPE YHOO IACI AOL
GER EA FRA NED
Source: RBC Europe Limited Jens Larsen, Haver Analytics, Company Reports
Stock Plays: AMZN, EBAY, GOOG, and especially PCLN
Mark S. Mahaney (Analyst) (415) 633-8608 mark.mahaney@rbccm.com 16
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17. 2. Mobile Materiality
Company Mobile Data Point
Active Network ~20% of Traffic Comes Via Mobile
eBay $13B in mobile GMV and $14B in mobile TPV in 2012
Google 1/3 of Total Queries Come Via Mobile
LinkedIn 25% of Traffic Comes Via Mobile
OpenTable 32% of Seated Diners Come Via Mobile
Pandora 77% of Listener Hours Come Via Mobile
WebMD 25% of Traffic Comes Via Mobile
Facebook 23% of Ad Revenue Comes Via Mobile
Expedia 20% of Transactions Come Via Mobile
TripAdvisor 70% of Mobile Traffic Comes Via Tablet
Mobile surpassed 10% of Online Retail Sales for the 1st time in Q4:12 (per ComScore)
Mobile Devices account for ~13% of Web-Based Page Views (per ComScore)
Source: RBCCM, Company Reports, ComScore
Stock Plays: AMZN, EBAY, TRIP
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18. 2. Mobile Materiality … Look 2
Percentage of Retail e-Commerce Dollars Spent via Mobile
14% 13%
12%
10%
10% 9% 9%
8% 8%
8%
6% 6%
6%
4%
2%
0%
Q1:11 Q2:11 Q3:11 Q4:11 Q1:12 Q2:12 Q3:12 Q4:12E
Source: ComScore
Stock Plays: AMZN, EBAY
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André Séquin (Analyst) (212) 618-7688 andre.sequin@rbccm.com
19. 2. Mobile Materiality … Look 3
Growth of EBAY Mobile GMV and Mobile TPV
16
10% of TPV
14 17% of GMV
12
Billion USD
10
8
$14B
7% of GMV $13B
6
3% of TPV
4 3% of GMV
1% of TPV
$5B
2 $4B
$2.0B $0.75B
0
2010 2011 2012
Mobile GMV Mobile TPV
Source: RBCCM, Company Reports
Stock Plays: EBAY
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21. 4. Facebook Ubiquity…What 1B Served Means…
Facebook Monthly Active User (MAU) Growth
1200 140%
1 billion users
120%
1000
100%
800
Million MAU
80%
YoY Growth
600
60%
400
40%
200
20%
0 0%
Q1:09 Q2:09 Q3:09 Q4:09 Q1:10 Q2:10 Q3:10 Q4:10 Q1:11 Q2:11 Q3:11 Q4:11 Q1:12 Q2:12 Q3:12 Q4:12
MAU Y/Y Growth
Source: Company Reports
Stock Plays: FB…With Negative Implications For AOL, YHOO
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22. 5. Online Video Rampup…And The Migration Of TV Ad Budgets…
Time Spent Watching Video Online/Mobile (Monthly)
13:6
12:24
Hours:Minutes Per Month
11:11
2012E Global Ad Spend
10:25
10:09
Out of Home,
9:23 9:15 $33
Radio,
8:43 8:51 $33B
8:33
Magazines,
$34B Television,
$198B
3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12
Newspapers,
Time Spent Watching Traditional TV (Monthly) $84B
158:47 156:24
154:5 153:19 155:46
145:28 146:20 146:45 148:03
144:54
Hours:Minutes Per Month
Internet,
$98B
3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12
Source: RBCCM, Nielsen, Magna Global
Stock Plays: AMZN, AOL, FB, YHOO, and especially GOOG
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23. 6. Same Day Delivery Surge…The ‘Net Coming To A Doorstep Near You
Average Distance Between Nearest AMZN Fulfilment Top 50 US Cities by Population and AMZN Fulfilment
Center and 50 Largest US Cities Center Locations
300
254 249
250
225
198
200
(miles)
150
112
100
50
0
2009 2010 2011 2012 2013E
Source: RBCCM, Company Reports
Stock Plays: AMZN, With Negative Implications For EBAY
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24. 7. Local Internet Adoption…The Final Frontier
Annual Growth In Local Presence
100%
35.5K Business
90% 26.7K Premier Accounts
Agent Subscribers
80%
82%
80%
70%
33K Service
60% Providers
50%
52%
22.8K Agent
40% Subscribers
27.4MM Seated
Diners
30% 22.1K Active 11.9MM Monthly 34%
Advertisers Patch Visitors
20% 26%
18% 19%
10%
0%
RLOC AOL OPEN TRLA ANGI Z YELP
Source: RBCCM, Company Reports
Stock Plays: AOL, GOOG, GRPN, TRIP
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25. 8. Cloud Computing Critical Mass
Cloud Computing Market Growth Forecast
$250
$207
$200 17.3% CAGR
$150
Billion USD
$109
$91
$100
$50
$0
2011 2012E 2013E 2014E 2015E 2016E
Source: Gartner press release
Stock Plays: AMZN, GOOG…But The Negative Implications of 19-Year-Old Risk…
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26. 9. Alternative Payments Rollout…What Will Be In Your Wallet?
Global Mobile Payment Volume Forecast
$450
$400
$352.7
$350
$300
69% CAGR $255.8
Billion USD
$250
$200 $171.5
$150
$105.9
$100 $58.9
$50 $25.6
$0
2009 2010 2011 2012E 2013E 2014E
Source: Gartner press release
Stock Plays: AMZN, GOOG, GRPN…And Especially EBAY
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27. 10. The Cash Pileup…Implications For M&A And (Hopefully) Cash Returns…
Company Acquisition Date Price 3Q Cash Balance 3Q Cash Balance Cash / Dividend
($MM) Market Cap (Current / Potential)
Google Motorola Mobility 8/15/11 $12.5B $45.7B
AMZN $5,248 4.3%
Microsoft Skype 5/10/11 $8.5B $63.0B AOL $867 30.5% P
eBay GSI Commerce 3/28/11 $2.4B $11.6B EBAY $11,635 16.8% P
Priceline Kayak 11/8/12 $1.8B $4.7B EXPE $1,337 14.8% C
Facebook Instagram 4/9/12 $1.0B $10.5B FB $10,452 13.2%
GOOG $45,724 18.6% P
Amazon Kiva Systems 3/19/12 $775M $5.2B
GRPN $1,201 35.9%
Expedia Trivago 12/21/12 $630M $1.3B IACI $561 12.9% C
AOL HuffPo 2/7/11 $315M $867M PCLN $4,675 13.9% P
IAC About.com 8/26/12 $300M $641M TRIP $548 8.6% P
YHOO $6,927 30.0% P
Apple Quattro 1/4/10 $275M $121.25B
Zynga OMGPop 3/21/12 $210M $1.4B
Average $8,107 18.1%
Yahoo! -- -- -- $6.9B Median $4,675 14.8%
Source: Company Reports, Bloomberg
Stock Plays: EBAY, EXPE, GOOG, IACI, PCLN, YHOO
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28. Stock Plays Summary…The Beneficiaries Are…AMZN, EBAY, GOOG
AMZN AOL EBAY EXPE FB GOOG GRPN IACI PCLN TRIP YHOO
International Recovery
Mobile Materiality
Tablet Traction
Facebook Ubiquity
Online Video Rampup
Same Day Delivery Surge
Local Internet Adoption
Cloud Computing Critical Mass
Alternative Payments Rollout
Cash Pileup
Biggest Beneficiaries
Source: RBCCM Estimates
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29. RBC’s Top 3 Large/Mid Cap Internet Stock Picks
30. Google (GOOG) OP, $950 Price Target
The GOOG Long Thesis:
1. Still Significant Secular Growth for Online Advertising – 20%ish global growth thanks to SoLoMoVo
2. Very Strong Market Share in Core Search – 70%+ of global Search ad revenue
3. Strong Market Share in Other Ad Segments – Display with YouTube & GDN, Mobile
4. Significant Competitive Moats – $17B in capex and $13B in R&D over past 5 years
5. One of the Best Management Teams on the Internet – excellent record of innovation & acquisition
6. Reasonable Valuation – trades in line with growth rate
GOOG Investment Risks
Exposure to European macro slowdown
Integrating MMI and moving into the hardware business (Nexus devices)
Regulatory Concerns – though U.S. risks have recently abated
Social Media sites gaining ad traction
Price Target: Our $950 price target is based on a 18x P/E multiple on our 2014 estimates
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31. Priceline (PCLN) OP, $900 Price Target
The PCLN Long Thesis:
1. Still Significant Secular Growth for Online Travel – double-digit global bookings growth market
2. Still Significant Hotel Market Share Potential – PCLN accounts for approx 5% of global hotel sales
3. Sustainable Competitive Advantages in Europe – largest base of hotel partners and lowest commission rates
4. Significant Growth opportunity in Asia and LatAm – via Agoda & Booking.com properties
5. One of the Best Management Teams on the Internet
6. High Growth and High Quality EPS – high conversion into FCF
7. Very Reasonable Valuation – discount to growth rate (18x 2013E P/E vs. 20%+ EPS CAGR through 2015)
PCLN Investment Risks
Significant Exposure to International Markets – 80% of revenue, with Europe 60% of revenue
Inventory Access Challenges of Domestic Opaque Segment – Air and Rental Car
Potential for Marketing Deleverage – given increased competition for Search keywords
Risk of Google Disintermediation in Online Travel
Price Target: Our $900 price target is based on a blended average of a 18x P/E Multiple,
and a 13x EV/EBITDA multiple on our 2014 estimates
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André Séquin (Analyst) (212) 618-7688 andre.sequin@rbccm.com
32. Amazon (AMZN) OP, $330 Price Target
The AMZN Long Thesis:
1. Significant Secular Growth for Online Retail – 10% addressable market penetration rising 1% per year…
2. Clear Amazon Market Share Gains and a Path for More of the Same – Mobile, SDD Surge…the Double-
Double Thesis
3. New Revenue Growth Opportunities – Consumer Staples, Amazon Web Services, International Expansion,
Digital Media, Office/Industrial Supplies, Advertising Revenue…
4. Material Margin Expansion Potential – from 3% level to historical average 6%...3rd party sales, AWS, scale
5. One of the Best Management Teams on the Internet
6. High Growth and High Quality EPS – high conversion into FCF
AMZN Investment Risks:
Intrinsically High Valuation
“Media Hole” – transition to digital media could hurt market share
Sales Tax Overhang – imposition of sales tax across the U.S.
Omnipresent Competitive Risk – from Offline retailers, Online competitors, new business models
Price Target: Our $330 price target is based on a blended average of a 33x Price/FCF Multiple,
and a 1.8x Price/Sales multiple on our 2014 estimates.
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33. Required Disclosures
Conflicts Disclosures
This product constitutes a compendium report (covers six or more subject companies). As such, RBC Capital Markets chooses to provide
specific disclosures for the subject companies by reference. To access current disclosures for the subject companies, clients should refer to
https://www.rbccm.com/GLDisclosure/PublicWeb/DisclosureLookup.aspx?entityId=1 or send a request to RBC CM Research Publishing,
P.O. Box 50, 200 Bay Street, Royal Bank Plaza, 29th Floor, South Tower, Toronto, Ontario M5J 2W7.
The analyst(s) responsible for preparing this research report received compensation that is based upon various factors, including total
revenues of the member companies of RBC Capital Markets and its affiliates, a portion of which are or have been generated by investment
banking activities of the member companies of RBC Capital Markets and its affiliates.
Distribution of Ratings
For the purpose of ratings distributions, regulatory rules require member firms to assign ratings to one of three rating categories - Buy,
Hold/Neutral, or Sell - regardless of a firm's own rating categories. Although RBC Capital Markets' ratings of Top Pick/Outperform, Sector
Perform and Underperform most closely correspond to Buy, Hold/Neutral and Sell, respectively, the meanings are not the same because our
ratings are determined on a relative basis (as described above).
Distribution of Ratings
RBC Capital Markets, Equity Research
Investment Banking
Serv./Past 12 Mos.
Rating Count Percent Count Percent
BUY[TP/O] 791 50.64 281 35.52
HOLD[SP] 701 44.88 180 25.68
SELL[U] 70 4.48 8 11.43
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34. Required Disclosures
Conflicts Policy
RBC Capital Markets Policy for Managing Conflicts of Interest in Relation to Investment Research is available from us on request. To access
our current policy, clients should refer to https://www.rbccm.com/global/file-414164.pdf or send a request to RBC CM Research Publishing,
P.O. Box 50, 200 Bay Street, Royal Bank Plaza, 29th Floor, South Tower, Toronto, Ontario M5J 2W7. We reserve the right to amend or
supplement this policy at any time.
Dissemination of Research and Short-Term Trade Ideas
RBC Capital Markets endeavors to make all reasonable efforts to provide research simultaneously to all eligible clients, having regard to local
time zones in overseas jurisdictions. RBC Capital Markets' research is posted to our proprietary websites to ensure eligible clients receive
coverage initiations and changes in ratings, targets and opinions in a timely manner. Additional distribution may be done by the sales
personnel via email, fax or regular mail. Clients may also receive our research via third-party vendors. Please contact your investment
advisor or institutional salesperson for more information regarding RBC Capital Markets' research. RBC Capital Markets also provides
eligible clients with access to SPARC on its proprietary INSIGHT website. SPARC contains market color and commentary, and may also
contain Short-Term Trade Ideas regarding the securities of subject companies discussed in this or other research reports. SPARC may be
accessed via the following hyperlink: https://www.rbcinsight.com. A Short-Term Trade Idea reflects the research analyst's directional view
regarding the price of the security of a subject company in the coming days or weeks, based on market and trading events. A Short-Term
Trade Idea may differ from the price targets and/or recommendations in our published research reports reflecting the research analyst's
views of the longer-term (one year) prospects of the subject company, as a result of the differing time horizons, methodologies and/or other
factors. Thus, it is possible that the security of a subject company that is considered a long-term 'Sector Perform' or even an 'Underperform'
might be a short-term buying opportunity as a result of temporary selling pressure in the market; conversely, the security of a subject
company that is rated a long-term 'Outperform' could be considered susceptible to a short-term downward price correction. Short-Term Trade
Ideas are not ratings, nor are they part of any ratings system, and RBC Capital Markets generally does not intend, nor undertakes any
obligation, to maintain or update Short-Term Trade Ideas. Short-Term Trade Ideas discussed in SPARC may not be suitable for all investors
and have not been tailored to individual investor circumstances and objectives, and investors should make their own independent decisions
regarding any Short-Term Trade Ideas discussed therein.
Analyst Certification
All of the views expressed in this report accurately reflect the personal views of the responsible analyst(s) about any and all of the subject
securities or issuers. No part of the compensation of the responsible analyst(s) named herein is, or will be, directly or indirectly, related to the
specific recommendations or views expressed by the responsible analyst(s) in this report.
The Global Industry Classification Standard (“GICS”) was developed by and is the exclusive property and a service mark of MSCI Inc. (“MSCI”) and Standard & Poor’s Financial Services LLC (“S&P”) and is licensed for use
by RBC. Neither MSCI, S&P, nor any other party involved in making or compiling the GICS or any GICS classifications makes any express or implied warranties or representations with respect to such standard or
classification (or the results to be obtained by the use thereof), and all such parties hereby expressly disclaim all warranties of originality, accuracy, completeness, merchantability and fitness for a particular purpose with
respect to any of such standard or classification. Without limiting any of the foregoing, in no event shall MSCI, S&P, any of their affiliates or any third party involved in making or compiling the GICS or any GICS
classifications have any liability for any direct, indirect, special, punitive, consequential or any other damages (including lost profits) even if notified of the possibility of such damages.
Mark S. Mahaney (Analyst) (415) 633-8608 mark.mahaney@rbccm.com 34
André Séquin (Analyst) (212) 618-7688 andre.sequin@rbccm.com