US Equity Research4 May 2020

Industry Update

Aerospace and Defense

Canaccord Genuity is the global capital markets group of Canaccord Genuity Group Inc. (CF : TSX)The recommendations and opinions expressed in this research report accurately reflect the research analyst's personal, independent and objectiveviews about any and all the companies and securities that are the subject of this report discussed herein.

Ken Herbert | Analyst | Canaccord Genuity LLC (US) | KHerbert@cgf.com | 415.229.0646

Age of Autonomy: Q2/20 drone industry updateWe believe the drone ecosystem will benefit from likely structural changes as aresult of the COVID-19 pandemic. While regulatory complexities surrounding BVLOS(beyond visual line-of-sight) travel have been tempering the rate at which commercialdrones can be adopted by the marketplace, the enormous pressure placed on thedelivery and logistics industry is likely to accelerate regulatory action in this space. Thelikelihood of an extended pandemic heightening the importance of social distancing andno-contact delivery for at least the rest of the year has many companies, namely UPS,seeking to expeditiously roll out drone delivery programs worldwide.

Since the end of 2019, the number of commercial drone registrations inthe U.S. has grown 15% from 385k to 442k. According to the FAA, this followsparticularly strong expansion in registrations during the course of FY19, which increasedby 39% y/y. While the impact of the pandemic may slow the adoption and registrationof commercial drones in FY20 compared to FY19 due to logistical issues, this impactis not yet visible given the rapid clip of registrations in the first quarter of the year. Inour view, the necessity of social distancing between workers is likely to have a positivecorrelation with adoption of unmanned aircraft by private industry for at least the nextyear or more.

In addition to the developments associated with the COVID-19 pandemic,there have been other noteworthy developments in the drone ecosystem. In ourview, the most important developments in the drone industry over the past few monthsinclude the FAA’s recent notice of proposed rulemaking (NPRM) requiring that all BVLOSunmanned aircraft broadcast a remote ID to a wireless network, the FAA’s proposal tocertify specific drones for delivery services, and the ongoing rollout of the UPS FlightForward delivery program in the United States.

Investments in the unmanned ecosystem totaled $1.2B in 2019, representinga 68% increase over 2018. Of the $1.2B in investments during the year, more than$830M, or 69% came from venture capital sources. We remain generally bullish aboutthe industry’s ability to continue to attract private and public capital, given the growingdemand environment for both commercial and government unmanned systems. Whilethe pace of adoption in the commercial markets (such as for drone delivery services)will likely lag expectations, the absolute size of this opportunity and the potential forsignificant disruption will enable the industry to continue to attract capital.

Unmanned systems remain a high priority for the Pentagon in their FY21budget request. The DoD specifically highlighted $1.7B for autonomy programs and$800M for artificial intelligence in their budget request. The budget maintains fundingfor multiple unmanned aircraft systems, but tapers down procurement of some legacysystems, such as the General Atomics’ Reaper and Gray Eagle drones sooner thanexpected as the government begins pivoting their force posture towards great powerwarfare. The Navy also appears to be accelerating its efforts in the space, with thedepartment’s FY21 budget request allocating $464M to procure two large unmannedsurface vessels (USVs).

Our public company drone index is down ~12% YTD, in-line with the broadermarket. However, we would note that for much of 2020 the commercial dronecompanies, led by Ehang Holdings (EH), have outperformed the military drone suppliers.On the military side, the stocks that have posted the best relative performance includeAeroVironment (AVAV), Leidos Holding (LDOS) and Northrop Grumman (NOC). Weremain generally positive on the near-term defense spending outlook and continue tosee strong support for drones and autonomy in any budget environment.

For important information, please see the Important Disclosures beginning on page 11 of this document.

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Continued focus on the drone ecosystem

As part of ongoing coverage of the autonomous ecosystem, and specifically the drone

industry, we are providing the first of what we expect will be regular updates on this

market. We are specifically highlighting recent market developments, investment

trends and performance, and highlighting technologies and opportunities that we

believe will continue to shape the broader drone ecosystem.

We believe the advancement of the drone ecosystem will touch most of our traditional

aerospace and defense companies and represents a fundamental shift and growth

opportunity for a whole new set of companies and investors. While the military market

is currently larger and continues to pace development of the high-end of the market,

the commercial and industrial markets represent faster growth, and eventually can be

larger as key applications, such as drone delivery, continue to mature.

COVID-19 and the drone industry

We believe the COVID-19 pandemic will serve as a catalyst for the global drone

market. While initial trends are difficult to quantify, we believe one of the lasting

impacts of the pandemic will be an acceleration in the growth of package deliveries.

This will contribute, in our view, to a continued and increased focus on the economic

benefits of drone delivery in this growing market.

Second, we believe the pandemic will also serve as a broader catalyst for autonomy

and drones in all aspects of commerce as the requirements of social distancing

change human interaction. Below we highlight several current programs underway

globally. We believe these represent important programs to track and will serve as

case studies and templates for other programs.

Figure 1: Noteworthy drone project tracker

Source: Company reports, Canaccord Genuity estimates

Following are the selection of public drone-related companies we are tracking. The

public companies reflect the fact that the military is the more established market, with

several firms that are closer to drone pure-plays (AVAV, KTOS, and RADA). We believe

the inclusion of some larger firms, such as Northrop Grumman and Leidos Holdings

(recently acquired Dynetics) also make sense.

Figure 2: Drone comp sheet (all estimates based on consensus) – May 4, 2020

Source: Company reports, FactSet, Canaccord Genuity estimates

Our public company drone index is down ~12% YTD, in-line with the broader market.

However, we would note that for much of 2020 the commercial drone companies, led

by Ehang Holdings (EH), have outperformed the military drone suppliers. On the

Country Operator Activity

Canada Drone Delivery Canada Awarded second US patent for drone delivery "access zones"

USA UPS Flight Forward Commenced medication delivery flights for CVS in Florida

China DHL/Ehang The two companies set up a drone delivery operation in China

Indonesia JD.com E-commerce giant began testing of drone delivery in Indonesia

China JD.com E-commerce giant begins testing drone delivery in remote provinces

USA Robotic Skies/Matternet The two companies formed an MRO network to support M2 drone

USA Multiple FAA proposes certifying specific drones for delivery

USA, Australia, Finland Wing (Google) Completed more than 1,000 deliveries in two weeks due to higher demand

Market Enterprise Share Net Debt

Cap ($M) Value ($M) Price to Cap 2019A 2020E 2021E 2022E 2020 2021 2022

AeroVironment AVAV $1,400 $1,130 $58.78 (-54%) $46 $64 $74 N/A 17.7x 15.3x N/A

Draganfly DFLY-CA $47 $45 $0.68 (-99%) ($8) N/A N/A N/A N/A N/A N/A

Drone Delivery Canada FLT-CA $110 $101 $0.62 (-57%) ($11) ($7) ($1) $7 (14.0x) (72.5x) 14.7x

Ehang Holdings Ltd. EH $410 $406 $11.52 (-84%) ($6) $7 $44 $51 55.5x 9.3x 7.9x

Elbit Systems Ltd. ESLT $5,792 $6,803 $130.79 (30%) $422 $562 $613 $682 12.1x 11.1x 10.0x

FLIR Systems FLIR $5,588 $6,020 $41.19 (17%) $383 $417 $474 $466 14.4x 12.7x 12.9x

Leidos (owns Dynetics) LDOS $14,272 $16,999 $99.11 (40%) $1,240 $1,276 $1,444 $1,566 13.3x 11.8x 10.9x

Kratos Defense KTOS $1,583 $1,792 $14.41 (22%) $74 $79 $98 $119 22.8x 18.3x 15.0x

Northrop Grumman NOC $54,039 $68,130 $320.90 (53%) $4,341 $4,944 $5,398 $5,905 13.8x 12.6x 11.5x

RADA Electronic Industries RADA $155 $148 $4.02 (-13%) ($1) $4 $10 N/A 36.6x 15.5x N/A

Average $8,340 $10,157 $68 (-14%) $648 $816 $906 $1,257 19.1x 3.8x 11.8x

Source: Factset

EBITDA (Consensus) EV/EBITDA

Aerospace and DefenseIndustry Update

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military side, the stocks that have posted the best relative performance include

AeroVironment (AVAV), Leidos Holding (LDOS) and Northrop Grumman (NOC). We

remain generally positive on the near-term defense spending outlook and continue to

see strong support for drones and autonomy in any budget environment.

Figure 3: Drone universe vs S&P 500 (through May 1, 2020)

Source: Company reports, FactSet, Canaccord Genuity estimates

Drone industry investments continue to surge

The overall uptrend in drone investments further accelerated in 2019, with overall

investment in the industry climbing by 68% y/y to a new high of $1.2B. Of the 2019

total, venture capital took up the lion’s share of investment stakes, comprising

$830M or ~69%, of the $1.2B total. Drone delivery continues to attract outsize

attention in the commercial UAS sector, along with drones for inspections and other

aerial imagery.

While the impact of COVID-19 is likely to have some negative impact on the availability

of capital to drone companies in 2020 due largely to logistical issues, we expect the

effect of a protracted pandemic to accelerate the deployment of various unmanned

applications to the commercial marketplace.

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60%

70%

80%

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Drone Index S&P 500 Index

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Figure 4: Annual drone company investments Figure 5: Drone venture capital investments

Source: Drone Industry Insights, Canaccord Genuity estimates Source: Drone Industry Insights, Canaccord Genuity estimates

U.S. drone registrations reflect growth

Since the end of 2019, the number of commercial drone registrations in the U.S. has

grown 15% from 385k to 442k. According to the FAA, this follows particularly strong

expansion in registrations during the course of FY19, which increased by 39% y/y. We

do not believe the industry has seen a direct uptick in registrants as a result of the

COVID-19 pandemic, but we believe this will contribute to the expected continued

growth in 2020 and into 2021.

While the impact of the pandemic may slow the adoption and registration of

commercial drones in FY20 compared to FY19 due to logistical issues, this impact is

not yet visible given the rapid clip of registrations in the first quarter of the year. In our

view, the necessity of social distancing between workers is likely to have a positive

correlation with adoption of unmanned aircraft by private industry for at least the next

year or more.

Figure 6: Number of FAA-registered commercial drones

Source: FAA, Canaccord Genuity estimates

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Aerospace and DefenseIndustry Update

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Regulatory framework continues to adapt new market realities

During the first quarter, regulators made material progress towards laying down a

framework for commercial drones to operate. In December, the FAA announced a

notice of proposed rulemaking (NPRM) calling for all drones operating beyond visual

line of sight (BVLOS) to maintain a wireless network connection and broadcast a

remote ID, similar to the requirements of manned aircraft. While this is not a huge

surprise for those initiated to the aviation industry, drone industry leaders were not

particularly enthusiastic about the announcement, indicating that the regulatory

proposal was particularly burdensome to hobbyist and commercial UAS activities.

This was followed in February by a new FAA proposal that would establish a set of

safety requirements to allow specific drones to be certified for package delivery

services. This move was lauded by various drone delivery providers, which have been

awaiting an opportunity to get their drones directly certified by the FAA.

As discussed in our Drone Whitepaper, companies such as UPS, Google, Amazon and

Uber have been developing a wide variety of delivery UAVs with varying ferry radiuses,

optics, modes of flight and delivery mechanisms. Once the FAA firmly sets out what a

delivery drone must have to be certified for BVLOS travel, other drone delivery

providers beyond just UPS can more easily navigate the red tape to achieve a Part

135 certification to operate as an airline.

UPS on the march to obtain delivery market share

Hot on the heels of their receipt of an FAA Part 135 Certification in October 2019 to

operate as a drone airline, UPS has been working aggressively in recent months to roll

out unmanned delivery operations across the country. Just to recap, all other drone

delivery companies in the United States are currently relegated to conducting demo

flights at one of ten preapproved test-cities by the FAA. To carry packages to

customers outside of those preselected test zones, a delivery provider needs to be

registered as a commercial airline (Part 135 certified). For UPS, this was not a

particularly heavy lift, considering they already operate as the world’s fourth largest

freighter airline with more than 500 owned and leased aircraft.

UPS partnered with drone manufacturer Matternet to certify their M2 drone for

unmanned delivery operations, which was approved by the FAA. Now, with the COVID-

19 pandemic restricting retail business services across the country, UPS is moving

aggressively to demonstrate and roll out their drone delivery operations throughout

their distribution centers. On April 27, UPS announced they had entered a partnership

with CVS Pharmacy to deliver drugs to seniors in The Villages, Florida using the

Matternet M2 UAS, starting at the beginning of May.

UPS has not stopped there, however. While the M2 is a capable aircraft that can loft a

4.4-lb or 4-liter payload up to 12 and a half miles away, UPS is already seeking a

longer-range freighter drone. On March 24, UPS Flight Forward announced they had

partnered with German drone manufacturer Wingcopter to develop a fleet of electric

VTOL delivery drones. Wingcopter’s namesake product has a substantial 75-mile

range and can fly at speeds of up to 150 mph. The Wingcopter can also sustain flight

in inclement weather, including rain and 45-mph winds. We suspect that the

Wingcopter will not necessarily replace the M2, but simply become part of a growing

UPS aircraft portfolio, similar to the company’s varying fleet of 747s, 757s, 767s and

other freighter planes.

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Figure 7: UPS transporting packages for CVS using Matternet M2 drone

Source: UPS

Figure 8: UPS Wingcopter drone concept

Source: UPS

General Atomics faces challenges from competitors, DoD pivot to great power warfare

Long an indispensable supplier to the Pentagon, General Atomics is now facing a

potential market share crisis as the Air Force announces plans to cancel further

acquisition of the MQ-9 Reaper UAV after procuring 24 of the type in its FY21 budget

request. Previously, the DoD had committed to purchasing 100 additional Reapers

between now and 2023. However, with the US Military now shifting its acquisition

planning from conducting ISR and strike operations against terrorists in permissive

airspace to countering threats from China and Russia, General Atomics’ portfolio of

Aerospace and DefenseIndustry Update

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mainly non-stealth, low-speed turboprop drones are looking less enticing to their

primary customer.

The quandary for General Atomics is further complicated by the other service

branches’ procurement plans, with the Army procuring zero new MQ-1C Gray Eagles in

their FY21 budget and the Navy cancelling their additional purchases of Reaper

drones for the Marines after purchasing 2 aircraft in FY20 for the USMC VMU-1

squadron.

While General Atomics is aggressively courting sales to the Department of Homeland

Security (Border Patrol) and foreign militaries for the SkyGuardian (an enhanced

variant of the Reaper), the reality remains that the company’s stalwart product lines

are looking somewhat dated in the coming transition to countering enemies with

sophisticated anti-aircraft batteries.

Figure 9: General Atomics SkyGuardian

Source: General Atomics Aeronautical Systems

Major defense primes including Lockheed Martin, Northrop Grumman and most

notably, Kratos Defense & Security, already possess a number of unclassified and

classified UAV platforms, many of which have stealth capabilities. In particular, Kratos’

jet-powered Valkyrie aircraft is designed to be low-cost ($2-5M per unit), low-

observable, and capable of covering an enormous range of more than 3,000 miles

during a single flight.

Kratos is also set to demonstrate the Valkyrie’s ability to operate as a “loyal wingman”

drone alongside manned F-22 and F-35 fighter jets within months, which would largely

fit the bill for the Pentagon’s great power warfare strategy. Kratos and Leidos-owned

Dynetics are also developing the swarming Gremlins drones, which can be launched

out of the back of a C-130 mothership and are cheap enough to either be recovered

or expended from hostile airspace. These emerging UAVs pose an enormous threat to

General Atomics’ decades-long dominance of Air Force drone procurement.

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Figure 10: Kratos Valkyrie conducting a test flight

Source: Kratos

Figure 11: Gremlins Air Vehicle on test flight

Source: Kratos, Dynetics

It must be noted that General Atomics does have a few aces up their sleeve. The

company already offers the new Avenger drone, which is a stealthy, jet-powered

aircraft capable of carrying a variety of weapons inside internal payload bays.

However, the US government has only procured a handful of the Avengers to-date,

most of which are believed to be operated by the CIA’s Special Activities Center to

conduct reconnaissance and assassination missions. Kratos’ Valkyrie has

performance characteristics and a price-point that are difficult for the Avenger to

compete with.

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Figure 12: General Atomics Avenger

Source: General Atomics Aeronautical Systems

It is also extremely likely that the DoD procurement requests in FY21 and coming

years for the Gray Eagle and Reaper/Sky Guardian will be nullified by Congress, which

routinely adds OCO funding to procure the vehicles into the appropriations bills at the

recommendation of combatant commanders in the field. This is likely to give General

Atomics a much-needed boost for the next several years. All of these conditions being

true, however, General Atomics has a fight on its hands the likes of which it has never

seen before to remain relevant in future wars against near-peer adversaries.

Figure 13: Comparison of military ISR/strike UAVs

Aircraft SkyGuardian Avenger Valkyrie Global Hawk/Triton BATS

Manufacturer General Atomics General Atomics Kratos Northrop Grumman Boeing

Propulsion Turbprop Jet engine Jet engine Jet engine Jet engine

Stealth? No Yes Yes No Yes

Speed 242 mph 460 mph 652 mph 391 mph Supersonic

Altitude 50,000 ft 50,000 ft 45,000 ft 60,000 ft UNK

Wingman? No No Yes No Yes

Ordnance 7 hardpoints 3,500 lbs

internally, 6

hardpoints

600 lbs internally on 8

internal hardpoints

None Various internally

or externally

Endurance 40 hours 20 hours 3,000+ mi 32.5 hrs/12,300 nm ~2,300 mi

Price ~$33M ~$15M ~$2-5M $242M UNK

Source: Company reports, Canaccord Genuity estimates

Parrot given the green light to produce Short Range Reconnaissance prototypes

Parrot, the industry-leading French commercial and hobbyist drone manufacturer,

announced that they had received a request from the US Army to prepare delivery of

multiple prototype drones as part of their bid on the Short Range Reconnaissance

(SRR) program. Parrot was included in an $11M contract by the Defense Innovation

Unit (DIU) to design a drone for the Army that could be carried in a rucksack and

utilized by ground troops. DIU specified that the SRR drone must be capable of

sustained flights for at least 30 minutes and cover a 3 km (~1.9m) distance. The

program is a continuation of the successful Soldier Borne Sensor program, which saw

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FLIR get selected to manufacture 18,000 32-gram micro helicopter drones for US

ground forces.

While Parrot was one of six contractors selected to participate in the SRR competition,

their extensive heritage and engineering expertise in developing man-portable

consumer drones gives them a substantial advantage over the other entrants. The

Army’s request for them to ready manufacturing of the prototypes further confirms

what was already strongly suspected. The French company plans to produce the

drones on US soil via its partnership with America-based NEOTech, for expected

delivery to the Army by July 2020 for field testing before a contract award is finalized.

While little is yet known about the drone that Parrot submitted in their SRR proposal, it

is believed to be a modified variant of their leading ANAFI product. Below is a

summary of the six competitors involved in the Short Range Reconnaissance program:

Figure 14: Short Range Reconnaissance competitors

Company Parrot Altavian Skydio Lumenier Vantage Robotics Teal Drones

(Potential)

Vehicle

ANAFI NOVA R1 Defender, SLED,

Malicious

Snap One, Sport

Weight 11.3 oz 17.25 lbs 2.2 lbs UNK 1.37 lbs UNK

Dimensions (in) 9.6 x 2.6 x 2.5 63 x 21 x 17 13 x 16 x 2 15-47 in length 14 x 9 x 2 UNK

Max Speed 33 mph 34-67 mph 25 mph 100 mph 33.5 mph 80 mph

Endurance 25 mins 90 mins 16 mins UNK 20 mins 15 mins

Range 2.5 miles ~9.3 miles 300 ft (stream) UNK ~984-4,921 ft ~0.6 miles

Source: Company reports, Canaccord Genuity

Figure 15: Parrot ANAFI quadcopter (likely SRR entrant)

Source: Parrot, Mashable

Aerospace and DefenseIndustry Update

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Appendix: Important Disclosures

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Analysts employed outside the US are not registered as research analysts with FINRA. These analysts may not be associatedpersons of Canaccord Genuity LLC and therefore may not be subject to the FINRA Rule 2241 and NYSE Rule 472 restrictions oncommunications with a subject company, public appearances and trading securities held by a research analyst account.

Sector Coverage

Individuals identified as “Sector Coverage” cover a subject company’s industry in the identified jurisdiction, but are not authoringanalysts of the report.

Investment RecommendationDate and time of first dissemination: May 04, 2020, 23:00 ETDate and time of production: May 04, 2020, 20:01 ET

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Distribution of Ratings:

Global Stock Ratings (as of 05/04/20)Rating Coverage Universe IB Clients

# % %Buy 505 59.91% 53.27%Hold 200 23.72% 40.00%Sell 18 2.14% 27.78%Speculative Buy 120 14.23% 74.17%

843* 100.0%*Total includes stocks that are Under Review

Canaccord Genuity Ratings System

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HOLD: The stock is expected to generate risk-adjusted returns of 0-10% during the next 12 months.

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Aerospace and DefenseIndustry Update

4 May 2020 11

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Research Analysts may, from time to time, discuss “short-term trade ideas” in research reports. A short-term trade idea offers anear-term view on how a security may trade, based on market and trading events or catalysts, and the resulting trading opportunitythat may be available. Any such trading strategies are distinct from and do not affect the analysts' fundamental equity rating forsuch stocks. A short-term trade idea may differ from the price targets and recommendations in our published research reports thatreflect the research analyst's views of the longer-term (i.e. one-year or greater) prospects of the subject company, as a result of the

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differing time horizons, methodologies and/or other factors. It is possible, for example, that a subject company's common equity thatis considered a long-term ‘Hold' or 'Sell' might present a short-term buying opportunity as a result of temporary selling pressure inthe market or for other reasons described in the research report; conversely, a subject company's stock rated a long-term 'Buy' or“Speculative Buy’ could be considered susceptible to a downward price correction, or other factors may exist that lead the researchanalyst to suggest a sale over the short-term. Short-term trade ideas are not ratings, nor are they part of any ratings system, andthe firm does not intend, and does not undertake any obligation, to maintain or update short-term trade ideas. Short-term tradeideas are not suitable for all investors and are not tailored to individual investor circumstances and objectives, and investors shouldmake their own independent decisions regarding any securities or strategies discussed herein. Please contact your salesperson formore information regarding Canaccord Genuity’s research.

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Canaccord Genuity LLC, a US registered broker-dealer, accepts responsibility for this research and its dissemination in the UnitedStates. This research is intended for distribution in the United States only to certain US institutional investors. US clients wishing toeffect transactions in any designated investment discussed should do so through a qualified salesperson of Canaccord Genuity LLC.Analysts employed outside the US, as specifically indicated elsewhere in this report, are not registered as research analysts withFINRA. These analysts may not be associated persons of Canaccord Genuity LLC and therefore may not be subject to the FINRA Rule2241 and NYSE Rule 472 restrictions on communications with a subject company, public appearances and trading securities held by aresearch analyst account.

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This research is distributed in the United Kingdom and elsewhere Europe, as third party research by Canaccord Genuity Limited,which is authorized and regulated by the Financial Conduct Authority. This research is for distribution only to persons who are EligibleCounterparties or Professional Clients only and is exempt from the general restrictions in section 21 of the Financial Services andMarkets Act 2000 on the communication of invitations or inducements to engage in investment activity on the grounds that it is beingdistributed in the United Kingdom only to persons of a kind described in Article 19(5) (Investment Professionals) and 49(2) (High NetWorth companies, unincorporated associations etc) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005(as amended). It is not intended to be distributed or passed on, directly or indirectly, to any other class of persons. This material isnot for distribution in the United Kingdom or elsewhere in Europe to retail clients, as defined under the rules of the Financial ConductAuthority.

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This research is sent to you by Canaccord Genuity Wealth (International) Limited (CGWI) for information purposes and is not tobe construed as a solicitation or an offer to purchase or sell investments or related financial instruments. This research has beenproduced by an affiliate of CGWI for circulation to its institutional clients and also CGWI. Its contents have been approved by CGWIand we are providing it to you on the basis that we believe it to be of interest to you. This statement should be read in conjunctionwith your client agreement, CGWI's current terms of business and the other disclosures and disclaimers contained within thisresearch. If you are in any doubt, you should consult your financial adviser.

CGWI is licensed and regulated by the Guernsey Financial Services Commission, the Jersey Financial Services Commission and theIsle of Man Financial Supervision Commission. CGWI is registered in Guernsey and is a wholly owned subsidiary of Canaccord GenuityGroup Inc.

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This research is distributed in Australia by Canaccord Genuity (Australia) Limited ABN 19 075 071 466 holder of AFS Licence No234666. To the extent that this research contains any advice, this is limited to general advice only. Recipients should take intoaccount their own personal circumstances before making an investment decision. Clients wishing to effect any transactions in anyfinancial products discussed in the research should do so through a qualified representative of Canaccord Genuity (Australia) Limited.Canaccord Genuity Wealth Management is a division of Canaccord Genuity (Australia) Limited.

For Hong Kong Residents:

This research is distributed in Hong Kong by Canaccord Genuity (Hong Kong) Limited which is licensed by the Securities and FuturesCommission. This research is only intended for persons who fall within the definition of professional investor as defined in theSecurities and Futures Ordinance. It is not intended to be distributed or passed on, directly or indirectly, to any other class ofpersons. Recipients of this report can contact Canaccord Genuity (Hong Kong) Limited. (Contact Tel: +852 3919 2561) in respect ofany matters arising from, or in connection with, this research.

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Copyright © Canaccord Genuity (Australia) Limited. 2020 – Participant of ASX Group, Chi-x Australia and of the NSX. Authorized andregulated by ASIC.

All rights reserved. All material presented in this document, unless specifically indicated otherwise, is under copyright to CanaccordGenuity Corp., Canaccord Genuity Limited, Canaccord Genuity LLC or Canaccord Genuity Group Inc. None of the material, nor itscontent, nor any copy of it, may be altered in any way, or transmitted to or distributed to any other party, without the prior expresswritten permission of the entities listed above.

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