GOWEX coverage analysis by BANKIA - Dec 2012
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GOWEX coverage analysis by BANKIA - Dec 2012

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GOWEX (GOW-MAB, ALGOW-NYSE Euronext) it’s been 13 years operating in the Telecommunication sector and it’s currently leading the creation of WiFi Cities offering Free & Premium WiFi connectivity ...

GOWEX (GOW-MAB, ALGOW-NYSE Euronext) it’s been 13 years operating in the Telecommunication sector and it’s currently leading the creation of WiFi Cities offering Free & Premium WiFi connectivity in streets and transportation. The company is now exporting the innovative business models in many cities in Europe, Latin America, Asia and in emerging countries.

In 2010, it has become the first and only Spanish SMB to make a “dual listing”, publicly traded in the MAB (GOW) and the NYSE-Euronext (ALGOW). The company's total revenue in 2011 amounted to 66,7 million euros. On July 2011 GOWEX subscribed a 7 million € capital increase with a 100 % over-demand (doubling expectations).

With offices in Madrid, Burgos, Buenos Aires, London, San José (Costa Rica), Paris and Shanghai, GOWEX develops a sustainable business model in their WiFi networks, based in efficient and technical quality of their patented platforms: The Roaming platform, which allows users to connect freely in all the cities, the Geolocalization Content and Advertisement platform, which provides a financing business through marketing and advertisement agreements.

In 2011, GOWEX joined the Wireless Broadband Alliance and received a prize for the “Best Web Company” in the Internet Day

In February 2012, Jenaro Garcia GOWEX CEO, received the “Entrepreneur of the Year Award” by Ernst & Young in the category of Innovation

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GOWEX coverage analysis by BANKIA - Dec 2012 GOWEX coverage analysis by BANKIA - Dec 2012 Document Transcript

  • GOWE G EX Spa Telecomm ain/ munications C Company update Inv vestment Research Re eason: Estimat Revision tes 5 Decem mber 2012 Bu uy Growth a acceleratin seekin global s ng: ng scale Reco ommendation un nchanged Sha price: EU are UR 11.98 Despite the re ecently good performance (+165% during the last 12m at current market p ( g m), closing price as of 04/12/2012 g 2 price, GOWE trades at EV/EBITDA’13e 4.3x and P/E’13e 9.1x, that in ou view EX d ur Tar rget price: E EUR 15.00 does not refl lect the comppany’s growth (CAGR’11-1 +33% in sales, +36% E 14e s EBITDA from Target Price: EU m UR 10.70 and +42% ne profit), its fin et nancial health and positive ttrack-record. In our view, G GOWEX Reuter rs/Bloomberg will continue generating vaalue thanks to its scalable business mo o odel and its strategic GOW.MC/GOW SQ positioning, w which allows capturing value generated in various points of the Wi-Fi d e Daily avg. no. trad. sh. 12 mth 11,203 sector’s value chain. e Daily avg. trad. vol. 12 m (m) mth 0.08 Price high 12 mth (EUR) ) 12.70  The inteention behind the rights issue announ d i nced (of up to EUR30m, 20% of t Price low 12 mth (EUR) 4.46 current s shares) is douuble, in line with the operattions carried out in 2010-2011: 1) w o Abs. perf. 1 mth 2.0% Acceleraation of orgaanic growth: capture funds to finance its expansion s c s s strategy Abs. perf. 3 mth 77.5% (to 300 o the largest cities world-wide, via a strattegic agreeme with a part of c ent tner); 2) Abs. perf. 12 mth 165.6% Increase the shareho e older base and stock liqu uidity: Follow wing the rights issue, s Market capitalisation (E EURm) 155 the free float will inc crease from current 30% to 41%. On nce the opera ation is Curre N° of shares (m) ent 13 complete GOWEX will request the SEC approva to issue ADRs (level 1 OT ed, w e al TC). Free float 30%  Good re esults momentum and st trong financiial position. At 6m’12, re evenues Key financials (EUR) 12/11 122/12e 12/13e increased 60%, EBIT d TDA +62% an net profit 70% (to EUR nd R5.5m). The relative Sales (m) 67 100 122 weight of the internatio f onal activity co ontinues grow wing, at 1H’12 reaching 51% of the % EBITD (m) DA 17 26 32 total sale (vs. 30% in 2011), as well as recurre revenues (65% of the to es n ent ( otal). At EBITD margin DA 24.8% 266.2% 26.2% EBIT ( (m) 10 20 23 June 20 012, GOWEX accumulates EUR19m n s net cash (EU UR32m gross). Said EBIT m margin 14.2% 200.2% 18.7% financial position is one of the com mpany’s stron points, as it can negotiate co- ng Net Pr (adj.)(m) rofit 7 15 17 investme ent agreemen nts with mun nicipalities an transport companies i new nd in ROCE E 44.5% 57.8% 41.0% countries (including exclusivity, lo s e onger term co contracts etc.) and reinfor ) rces its Net deebt/(cash) (m) (22) (19) (18) Net De Equity ebt -0.6 -0.4 -0.3 capacity to continue grrowing organic cally. Net De ebt/EBITDA -1.3 -0.7 -0.6 Int. co over(EBITDA/Fin.int) (125.8) (144.7) (213.3)  Estimate revised up We have made some ad es p: m djustments, no including the rights ot e EV/Sa ales 0.6 1.4 1.1 issue. In 2013-14e, our EBITDA rises 11%, with revenues accelerating fo h a ollowing EV/EB BITDA 2.4 5.2 4.3 the receently announcced contracts We estima s. ate CAGR 20 011-14e of 333% in EV/EB BITDA (adj.) 2.4 5.2 4.3 revenues 36% in EBITDA and 42% in net profi with wireless, internation and s, % fit, nal EV/EB BIT 4.2 6.7 6.0 P/E (adj.) 8.6 10.1 9.1 recurrent revenues pro t creasing their weight on tota revenues. ogressively inc al P/BV 1.8 3.1 2.3 OpFC yield CF 45.9% 1.3% -1 0.9%  Valuatio revised to EUR15.0/sh on o hare (+40%), arising from the aforementioned Divide yield end 0.6% 1.4% 1 1.6% adjustme ents to our est timates, the ro cember 2013, and applying a lower oll-over to Dec EPS (a adj.) 0.56 1.18 1.32 WACC ( (12.5% vs. 14 4.5%), accordding to the p positive track record, the greater BVPS 2.72 3.90 5.21 liquidity aand financial strength. Our new fair valu discounts EV/EBITDA’13 5.5x ue E 3e DPS 0.08 0.17 0.20 and P/E’ 13e 11.5x, im mplying a potential of +26% over current price. Its mai peer, % in Boingo ( (US Wi-Fi agg gregator) trades at an EV//EBITDA’13e of 5.2x and P P/E’13e 24.4x, v vs. GOWEX’ EV/EBITDA’13e of 4.3x and P/E’13e of x 9.1x Buy x. 13 vvdsvdvsdy 12 recomm endation reit terated 11 10  We belie the succes eve ssful execution of the exppansion plan (to 300 cities, details , 9 8 not discl osed yet), in addition to the positive s strategic impplications (to obtain o 7 6 critical m mass, occupyin a leading position world ng elopment/exploitation d-wide in deve 5 4 of Wi-Fi cities, defenssive move vs possible ne entrants), could add a s. ew another 3 Nov 11 Dec D 11 Jan 12 Feb 12 Mar 12 Apr 12 2 May 12 Jun 12 Jul 12 Aug 12 Se 12 ep Oct 12 Nov 12 Dec 12 EUR10-1 12/share to ou FV. ur GOWEX G MAB (Rebased) Source: Factse et eholders: Jenaro Ga Share arcía 60%; Alvasebi 10%; Analyst(s): Da avid Cabeza Ja areño +3 91 4367818 34 dcabeza@b bankia.com For co ompany description ple ease see summary tab footnote bleProduced by: d All ESN re esearch is availlable on Bloom mberg (“ESNR””), Thomson- -Reuters, Capit IQ, TheMark tal kets.com, FactS SetDistribute by the Members of ESN ed(see last pag of this report) ge
  • GOWEXCO ONTENTS SGrow accelerating ....... .................. wth .................................... ........................ 3 Details of the rights issue 3 Good results momen ntum and news flow. Estimate adjusted. s es 4 Valu uation.......................... .................. ........................ 5  ....................................DCF V Valuation: EUR R15.0/share 5 Multip comparison ples n 6 Secto Wi-Fi & M&A or 6 Poten value creat via the exp ntial tion pansion plan 7 Risks & Threats 8 GOW WEX. At a Glance ...... .................. G ........................ 9  ....................................Wi-F sector. Complemen mobile networks ................... Fi C nts ...................... 10  WEX’ Position ............ ..................GOW ...................... 11  ....................................ESN Recomme N endation Sy ystem ....... ...................... 18  .................................... Pag 2 ge
  • GOWEX Grow acce wth elerating g The int tention behin the rights issue announced (of up to EUR30m which is 20% above t nd s p m, 2 the current shares) is double: 1) accelerate the organic growth sp t c peed and 2) increase tthe shareholder base, in line wit the opera th ations carried out in 20 10 and 2011. Despite t the recently good perfformance (+1165% during the last 12 g 2m), at curre market price, GOWEX ent trades at EV/EBIT TDA’13e 4.3 and P/E’13e 9.1x, th in our v 3x hat view does not reflect t n the compa any’s growth (CAGR’11 1-14e +33% in sales, +336% EBITDA and +42% net profit), its A financial health (n cash) and positive tr net d rack-record. In our vview, GOWE will contin generating value tha EX nue anks to its sc calable busin ness model aand its stra ategic positio oning, which allows the company to capture v h e value genera ated in varioous points of the Wi-Fi sector’s valu chain. We have adjus ue sted our estiimates and valuation up by v +40% to EUR15.0/ /share, whic discounts multiples of 5.5x EV/ ch s V/EBITDA’13e and P/E’1 13e 11.5x and implies a 26% up pside potential at curren market pr nt rice. Buy re ecommendation reiterat ted, and we believe the successful execution of the expa l ansion plan (to 300 cities, n details not disclose yet), in a ed addition to th positive strategic imp he s plications (to obtain critical o mass, occupying a leading po osition world d-wide in de evelopment/e exploitation of Wi-Fi cities, defensive move vs. possible ne entrants), could add another EUR . ew R10-12/share to our FV. e Details of the rights issue s GOWE is immersed in its third rights issue in three yea The first was due to its listing to t EX d e ars. t the MAB (SSpanish Alte ernative Mark ket, March 2010, at EUR 2 R3.5/share; oobtaining EU UR6m); and t the second in July 2011 (EUR6.9 at EUR4 d 9m 4.84/share). The current rights issue is for a to e otal maximum of EUR3 30m, at EURR11.6/share (2,586m sha ares) and im mplies 20% over the curre o ent numbe of shares trading. There are two rea er re asons behind this rights iissue: d 1) Capture fund to financ its expansion strateg Said plan includes th deployme C ds ce gy. n he ent and implementation of its services (d s design, deplo oyment, explloitation and manageme d ent of Wi-Fi netw works) in 300 of the larg 0 gest, referen cities w nce world-wide, via a strateg gic agreement with a partner which impl r antial effort iin Capex. Th intention is lies a substa he ambitious, as it implies m s multiplying th companys presence by 5x (curre he ently 60 citie es, with w a smaller average siz r ze). 2) Endow its valuation w E v with greater liquidity and increase its share e eholder bas se. Reference sh R hareholders a not expe are ected to subscribe the ne rights iss ew sue. We reca all th the exec hat cutive team currently hoolds 59.6% (including 100.6% of Alvasebi, >70% %). Following th rights iss F he sue, free flo will incr oat rease from current 29.7% to 41.4% %, le eaving 49.7% in the han % nds of the executive tea and 8.9% in Alvaseb e am % bi’s. Once th he operation is completed, G c GOWEX will request the SEC appro e oval to issue ADRs (lev vel 1 OTC). The schedule to begin trading in the US is 1Q’13 (cur g rrently the co ompany trade es in the Spanish MAB and N n h NYSE Alternext in Paris). .GOW WEX. Shareho older’s base (post operatio on) GOW WEX. Agenda for the rights issue f sSource: ESN Bankia Bolsa a Source:: GOWEX Page 3
  • GOWEX Good results mo omentum a news flow. Estima adjuste and ates ed.  Goood 6m’12 results, inc creasing int ternational exposure a and recurre results. At ent 6mm’12, revenue increased 60%, EBIT es d TDA +62% and net prof 70% (to EUR5.5m). T a fit E The rela ative weight of the intern ational activity continues growing, at 1H’12 reach s hing 51% of t the tota sales (vs. 30% in 2011 as well as recurrent re al 1), s evenues (65% of the tota % al).  Poositive news flow conti s inues: GOW WEX continues announc cing agreemeents with cit ties and transport companies. T most rec d c The cent were: 1) in Dubai, in which GOW WEX has signned an agreement with the ma public transport comp ain pany (PTA) t provide free Wi-Fi in t to the cities’ busses. The agreem ment is strate egically impo opens a door to the Middle ortant as it o East; 2) in Ma arseille, sign ning an agreeement to pr rovide free W Wi-Fi to urb ban buses. WWe exppect announcements on new internat tional contrac to continu in upcoming months. cts ue  Str rong financ cial position At June 2012, GOW n: WEX accum mulates EUR R19m net ca ash (EU UR32m gros Said fina ss). ancial positio is one of the compan on ny’s strong points, as it c can neg gotiate co-in nvestment aggreements with municipa w alities and tr mpanies in new ransport com cou untries (inclu uding exclus acts etc.) and reinforces its capacity to sivity, longer term contra d y ntinue growin organicallly. con ng  Estimates revised up: We have made some adjustments, not including th rights issu e e t he ue. In 2013-14e, our EBITDA rises 11%, with revenu accelera o ues ating followin the recen ng ntly annnounced conntracts. We e estimate CAGR 2011-14 of 33% in revenues, 36% in EBITDA 4e 3 and 42% in ne profit, with wireless, international and recurre revenues progressiv d et h i ent s vely inc creasing their respective w r weight.GOW WEX. 1H’12 res sults. 9m’12 f forecasts GOWEX. Est timates adjus sted (2012-14e e) (EUR m) 9m12 3T12 1H 11 1H12 Var % 2 2011a 2012e 201 13e 2014e CAG 11-14e AGR Revenues 69.1 28.1 25.7 41.0 60% 0 Old 66.77 94.5 1177.0 145.0 30% Telecom 6.6 9.1 38% Sales New 66.77 99.9 1222.4 155.3 33% Wireless 19.1 31.9 67% 9 Dif.% 0.0%% 5.7% 4.6 6% 7.1% Old 16.55 23.7 29 9.5 36.1 30% Gross Margin 30.5 12.7 10.7 17.8 66% 8 EBITDAA New 16.55 26.1 32 2.0 41.2 36% Gross Mg % 44% 45% 42% 43% 1.5pp % Dif.% 0.0%% 10.2% 8.5 5% 14.3% EBITDA 15.7 7.6 5.0 8.1 62% Old 7.2 12.8 15 5.1 20.0 40% EBITDA Mg % E 22.7% 27.1% 19.5% 19.7% 0.2pp % Net Proffit New 7.2 15.3 16 6.9 20.8 42% EBIT 4.6 7.6 68% Dif.% 0.0%% 19.4% 12.2 2% 3.8% EBIT Mg E 17.8% 18.6% 0.9pp % Old 10.77 16.1 17 7.5 18.8 21% BAI 4.6 7.8 70% Cap ex New 10.77 18.0 22 2.0 27.9 38% Net Profit 3.2 5.5 70% Dif.% 0.0%% 11.7% 25.9 9% 48.7%GOW WEX. EBITDA margin perfo ormance GOWEX. ND/ /EBITDA 180 0 30% Sales EBITDA mg 26.2% 26.6% 160 0 26.2% 155.3 0.00 0.00 09 10 11 12e 13e 14e 24.8% 25% -0.10 -0.20 140 0 122.4 -0.20 -0.40 120 0 18.9% 99.9 20% -0.30 -0.60 100 0 -0.80 15.7% -0.40 80 0 66.7 -1.00 49.6 15% -0.50 -1.20 60 0 35.2 -0.60 40 0 9.5% -1.40 10% 24.2 -0.70 -1.60 20 0 0 5% Gear ring Debt/EBITDA (rhs) 2008 2009 2010 2011 2012e 2013e 2014eSource: ESN Bankia Bolsa a Source: ESN Bank Bolsa kia Page 4
  • GOWEX Valu uation DCF V Valuation: EUR15.0/sh E hare Valuation revised to EUR15.0 0/share (+40%), arising from the afor rementioned adjustments to s our es stimates, the roll-over to December 2013, and applying a lower WAC (12.5% vs. e o r CC 14.5%) according to the positiv track reco the grea liquidity and financia strength. O ), ve ord, ater al Our new fa value discounts EV/E air EBITDA’13e 5.5x and P/ e /E’13e 11.5x x. We ha ave carried out a disco unted cash flow valua o h ation on 20 013-1018e, applying 12.5 a 5% WACC and 2.0% “g”. We a C assume an EBITDA ma argin in 201 8e (23%) below the 26 b 6% estimat for 2012-14e, and CA ted APEX for 20 018e of 8% over sales, in line with the amortisatio o n e ons in said year.GO OWEX DCF VALUA ATION TO 31-Dec-13CA FLOW STATE ASH EMENT FOR DCFCA FLOW (EUR m ASH m) 2011 2012e 2013e 2014e 2015e 2016e 2017e 2 20 018eNet sales t 66.7 99.9 122.4 155.3 191.3 217.4 250.9 2 2443.7EBIT 9.5 20.2 22.9 28.1 31.2 32.5 35.4 37.7 3 OPLATNO 7.1 15.1 16.9 20.8 23.1 23.7 25.5 27.2 2Dep preciations and othe provisions er -7.0 -5.9 -9.1 -13.2 -17.1 -20.9 -24.5 -1 19.5Gro operating cas flow oss sh 14.1 21.1 26.1 34.0 40.2 44.6 50.0 46.7 4Cap expenditure pital -10.7 -18.0 -22.0 -27.9 -26.8 -26.1 -25.1 -1 19.5Cha ange in net working capital g 0.0 -5.2 -2.7 -4.5 -5.2 -3.0 -4.3 -0.2 -Cas flow to be disc sh counted 3.5 -2.1 1.3 1.5 8.3 15.5 20.7 26.9 2DCF VALUATION (EU m) UR 2013e 2014e 2015e 2016e 2017e 2 Nominal yearWA ACC 12.5% 12.5% 12.5% 12.5% 12.5% 1 12 2.5%Discount Rate factor 1.00 0.89 0.79 0.70 0.62 0.55 0Discounted cash flow 1.3 1.3 6.5 10.9 12.9Cu mulated DCF 1.3 2.6 9.1 20.0 32.9WA & DCF ANAL ISYS ACCFre risk rate ee 4.50% Cumulated DCF 32.9 - Ne financial debt (Cas (12e) et sh) -18Commpany risk factor 2.00 Perpetual growt h rate (g) 2.0% - Min norities (estimated v value) 0Market risk premium 4.00% Normalised Annua CF al 27 + As ssociates 0Cos of Equity (Ke) st 12.50% Terminal Value at Nominal Year 257Cos of debt (gross) st 5.0% Disc.Rate of Term Value minal 0.55Norrmative tax rate 30.0% NPV Terminal Va alue 142.4 Equity Market Value (E m) EUR 195Cos of Debt Net (Kd st d) 3.50% Num of shares (m) mber 12.93Tar gearing (D/E) % K rget 0% Financial assets (t treasury stock) 1.1 Fai r Value per share (EUR) 15.0% Ke 100% Enterprise value (EUR m) e 176.4 Price (EUR) e 11.96WA ACC 12.5% Pote ential upside (downs side) 26%Sou urce: ESN Bankia Bollsa estimatesGO OWEX. Multip ples GOWE Sensitivit analysis EX. ty Ratios @ current Price 2010 2011 2012 2013e 201 2e 14e WAACC Perpet ual growth rate (g g) Price 4 3.4 4.8 12.0 12.0 12.0 15.03 1.0% 1.5% 2.0% 2.5% 2 3.0% 10 0.5% 17.5 18.3 19.1 20.0 2 21.1 EV / Sales 0.6xx 0.6x 1.4x 1.1x 9x 0.9 11 1.5% 15.6 16.2 16.8 17.6 1 18.4 EV / EBITDA 3.1xx 2.4x 5.2x 4.3x 3.3 3x 12 2.5% 14.1 14.5 15.0 15.6 1 16.2 EV / EBIT 4.7xx 4.2x 6.8x 6.0x 4.9 9x 13 3.5% 12.8 13.1 13.5 14.0 1 14.5 PER 7.5xx 8.6x 10.11x 9.1x 7.5 5x 15 5.5% 10.7 11.0 11.3 11.6 1 11.9Sou urce: ESN Bankia B Bolsa estimates Source: ESN Bankia Bolsa estimates Page 5
  • GOWEXMultip compa ples arisonAlthouugh there is no purely comparab compan with GOW s y, ble ny WEX (due to its particu t ularbusines model, diversificatio etc), wit ss on thin Wi-Fi/W Wireless, theere are two listed Wi-Fi ocompanies in the United Stat tes that agg gregate opeerators’ netw work to offer roaming aandinterconnection ser rvices.- Booingo: >500.000 hotspots world-wide began trading in May 2 s e, 2011 in the Nasdaq. Boin N ngo ervice provider, offering retail clients (final users) and wholesale is a international, Wi-Fi se an r clie ents access service to W s Wi-Fi points. In 2011, the company gen n c nerated USD D95m revenuues and USD28m in EBITDA. d n- iPa ass: 750,00 hotspots in 120 co 00 ffers mobile connectivit services to ountries. Of e ty bus sinesses. In 2011, iPa n ass generated USD140 revenues (falling 9%) and sm 0m s 9 mall ope erating losse with EBIT es, TDA of USD.0,2m.Boingo trades at an EV/EB o t BITDA’13e of 5.2x vs. GOWEX’ 4 o 4.3x. At our fair value ofEUR155/share (imp plying 5.5x E EV/EBITDA’113e), the dis GOWEX vs. Boingo would scount on Gdisappe in terms of EV/EBI ear s ITDA (but not P/E). During the las 6 months, GOWEX h n st hasaccumulated 94%, much better than Boingo /iPass’ -30% r o %. Com mpany Price Mkt. C Cap. EV/EBITDA A PER Mg EBITDDA Performance % (EUR) (EUR m) 2012e 201 13e 2012e 20 013e 2012e 1m 6m 12m Boin Wireless Inc. 5.32 ngo 1877 6.2x 5.2x 31.6x 244.4x 30.9% -6% -31% -16% % iPas Inc. ss 84 20 0.0x -5% -30% 30% % Gow (Bankia) wex 11.96 1866 5.2x 4.3x 10.1x 9.1x 26.2% 2% 94% 166% % Gow (Factset) wex 11.96 1866 6.4x 4.5x 12.0x 100.5x 25.1% 2% 94% 166% % Sour Facset, Bankiia Bolsa rce:Sector Wi-Fi & M&A MWi-Fi: counter-cyyclical charaacter and greater visib g bility. In rec cent months a number of soperations has take place, inc en creasing the Wi-Fi sector’s visibility: W 1) A Agreement between Goo b ogle and Bo oingo in San Francisco w with a model similar to th hat used by GOW u WEX. 2) A Argiva (engin neering firm) acquiring Spectrum Inte ) S eractive (one of the large hotspot W e est Wi- Fi F suppliers in UK) for GB i BP26m (with the intention of renting it to other operators). h n t 3) E quiring Belair Networks (indoor and outdoor Wi-Fii equipment). Ericsson acq r 4) L Listing of Ruckus (Wi-Fi t technology manufacturer on NYSE w high dem m r) with mand.M&A. Since its lis sting to the MAB, GOW WEX mention ned the pos ssible interes on behalf of st fengineering firms, although this has not bee reflected in acquisition The cash obtained fro a s en ns. h omthe rights issues and cash ge a eneration has been used to accelera the com s d ate mpany’s orgaanicgrowth (co-investm ment formulas with cities, demanding higher Cap s g pEx, etc). On the contra ary,we see greater probabilities of GOWEX being a ta e X arget (telecoommunicatio operators or oncompanies in other sectors inte r erested in gr rowing inorganically, dev veloping its presence in t p theWi-Fi ssector). In th recent br he rochure on the rights is ssue, GOWE mentions Google as a EX s sthreat, but at the same time mention hav ving spoken to the com n mpany to wo together in ork rdifferen geographic areas. nt c Page 6
  • GOWEX Poten value creation via the expansion plan ntial c a GOWE is a valu generatin story, via a business model with high retu EX ue ng a s h urn on capi ital employyed (>20%). Independe ntly of the aforementioned revised e . a estimates, we have carried w out an analysis on the pote n o ential genera ation of value proceed ing from ac ccelerating t the company’s growth during the fo d ollowing year and the rig rs ghts issue. In our opinion, the successfu executio of the ex e ul on xpansion p plan (to 300 cities, deta 0 ails according to the company’s st c trategy inclu uding outdo advertisin company not disclos oor ng y sed yet), in addition to the posit n t tive strategic implication (to obta in critical mass, GOWEX c ns m occupyying a leading position w world-wide in developmen nt/exploitatio of Wi-Fi cities, defens on sive moves vs. possib peers/ne entrants) could ad another EUR10-12/ ble ew ), dd /share to o our valuati (see tab below) ion ble Our hy ypothesis are: 1) develoopment of 300 cities in the next 5 ye t 17e, exceeding ears (2013-1 the 3 y years targete by GOWE ed EX); 2) EBIT margin from 17% in 20 T m 013e down to 12% in 20 t 018 (vs. EB mg of 20% in 2012 BIT 2 2e); 3) Capit expenditu of 16-18 o/sales in the years of tal ure 8% further expansion; 4) Rights is sue: EUR 30 M cash an issuance of 2.59 m shares (20% of nd s % current number of shares, tota shares afte capital inc t al er crease of 15 .5m); 5) cap pture of 50% of % revenues generated in geoloca lized advertis d sing (50% caaptured by th strategic partner). he pGOWEX EXPANSI ON PLAN - DCF VG VALUATION TO 31- -Dec-13CASH FLOW (EUR m)C R 2013e 2 20014e 20115e 20166e 2017e 2018e eNewN Cities 60 80 8 80 50 0 30 0Cumulated CitiesC 60 140 1 2220 2700 300 300NetN sales 113.7 1 2116.0 3011.2 329.3 343.88 318.4 Network (Roaming access, offloadin maintenance) g, ng, 53.7 5 1222.6 1888.7 226..8 246.88 241.9 Engineering, Cons sultancy & Maintenance 48.0 4 64.0 6 644.0 40.0 0 24.0 0.0 Media (Advertising aplications, servic g, ices 12.0 29.4 2 488.5 62.5 5 72.9 76.6EBITE 19.3 34.6 3 455.2 46.1 44.7 7 38.2% EBIT mg 17% 16% 15 5% 14%% 13% 12%NOPLATN 13.5 24.2 2 311.6 32.3 31.3 3 26.7Depreciations and oD other provisions -9.1 -117.3 -244.1 -26..3 -27.55 -25.5Gross operating cG cash flow 22.6 41.5 4 555.7 58.6 58.8 8 52.2Capital expenditureC -18.2 - -338.9 -544.2 -49..4 -44.77 -25.5Cash flow to be dC discounted 4.4 2.6 2 1. .5 9.2 2 14.1 26.7DCFD VALUATION (EUR m) 2013e 2 20 014e 20115e 20166e 2017e Nominal y yearWACCW 12.5% 12 2.5% 12.5% 12.5 5% 12.5%% 12.5%Discount Rate factorD r 1.00 0.89 0 0.7 79 0.70 0.62 2 0.55Discounted cash flowD w 4.4 2.3 2 1..2 6.55 8.8Cumulated DCFC 4.4 6.7 6 7..9 14.4 2 23.2WACC & DCF ANAW ALISYSFreeF risk rate 4.50% Cummulated DCF 23.2 - Net finan debt (Cash) ( 12e) ncial -30Company risk factorC r 2.00 Perp petual growth rate (g) e 0.0%Market risk premiumM m 4.00% Normmalised Annual CF 27Cost of Equity (Ke)C 12.50%% Term Value at Nomin Year minal nal 214CostC of debt (gross) ) 5.0% Disc.Rate of Terminal V Value 0.55Normative tax rateN 30.0% NPV Terminal Value 118.7 Equity Ma arket Value (EUR m m) 172Cost of Debt Net (Kd)C 3.50% Number o shares (m) of 15.5Target gearing (D/E % KT E) 0% Finan assets (treasury stock) ncial Fair Val per share (E lue EUR) 11.1% Ke 100% Ente erprise value (EUR m) R 141.9WACCW 12.5%Source: ESN Bankia Bolsa estimatesS Page 7
  • GOWEXRisks & ThreatsWe poi out the following risks int s: 1) Execution of strategy plan (x5 vs. current citie not attain y es), ning the critic mass. cal 2) New entra ants: GOWE business model is un EX’ nique (neutra positioning technological al g, apturing vari ous parts of the value ch platform, ca hain), howeve it could be copied. er e 3) Position of telecom o f operators (t that could become dire competito b ect ors). Althouggh, initially trad ditional opera ators see GO OWEX as a threat, they can use the company as a s partner to save operatin costs by extending the network/u s ng e eir users, thus finally achieve a e complemen ntary charactter. 4) Position in cities/muunicipals: not renewing contracts. In our view said playe w, ers consider GOWEX a n G neutral infrastructure manager that gives supp port to vario ous operators and as a way to reduce costs/maximise profits, ra a y c ather than a threat. t 5) Key personnel (depen ndence on its CEO, Mr. Jenaro García s a); 6) Risk of obsolescence technology network se e y, ecurity. Page 8
  • GOWEX GOW WEX. At a Glanc ceGOW WEX: Revenue Mix per Ac es ctivity (2012e) ) GOWEX. Geographic Revenues M (2012e) c Mix Enggineering International & co onsulting 50% 43% Media platform 6% Network Gowex (roaming & Telecom Spain offloading) 23% 50% 28%GOW WEX. Breakdo own Revenues per Activitie (2007-14e) s es ) GOWEX. Breakdown Geographic Revenues’ Mix (2007-14e) M ) 180 180 0.0 160 160 0.0 Go owex Telecom Gowex Wireless Sp pain International 140 140 0.0 120 120 0.0 90.5 100 100 0.0 130 8 63.8 80 80 0.0 49.5 99 60 77 60 0.0 28.0 2 40 47 40 0.0 14.9 27 4.8 64.8 11 50.4 58.7 7 20 1 3 20 0.0 1.6 34.7 38.7 3 25 23 23 24 25 0.0 22.6 30.4 17 21 20 17.0 0 0.0 0 2007 2008 2009 2010 2011 2012e 2 2013e 2014e 2007 2008 2009 2010 2 2011 2012e 2013e 2014eGOW WEX Wireless. Recurrent R . Revenues GOWEX Wireless: Ne etwork (roamiing, offloadin access) ng, 80 0.0 72.6 80 Rec current Non recurrent 70 0.0 Network (roaming & offloading) 70 60 0.0 60 24 47.5 50 0.0 50 40 40 0.0 17 27.7 30 30 0.0 49 20 20 0.0 15.0 29 10 8.4 10 0.0 3.7 7 0 0.7 2011 2012e 0.0 0 2008 200 09 2010 2011 2012e 2013e 2014eGOW WEX Wireless Engineering s. GOWEX Wireless. Me X edia 50.0 45.8 14 4.0 45.0 43.0 .0 42. 12.1 Engineering & cons sulting 12 2.0 Media platform 40.0 35.0 10 0.0 9.0 30.0 27.2 8.0 8 25.0 6.4 20.0 6.0 6 15.0 4.3 15.0 4.0 4 3.3 10.0 6.4 5.0 2.5 2.0 2 0.0 0.3 0.0 0.0 0 2008 8 2009 2010 2011 2012e 2013e 2014e 2008 2009 2010 2011 2012e 2 2013e 2014e Page 9
  • GOWEX Wi-F sector Compl Fi r. lements mobile network s ks Proje ected Global I Traffic by A IP Access Netw work. Wi-Fi hotspots wor h rld-wide (mill ions) Source: Cisco Visual Netw : working Index. Glob IP Traffic Foreca 2010–2015 bal ast, Source: Alcatel Lucent (201 informa Telecom A 12, ms&Media) Locat tion of Mobile Data usage (% of Time Spent in Activit e e S ty). Wi-Fi Access by U.S Smartphon Users (% o/total Browsin A S. ne o ng) Source: Cisco IBSG Conn : nected Life Market W Watch Source: Cisco IBSG Mobile Cloud Watch, 2011 C C 1Wi-Fi. Bu usiness mode (I) els Wi-Fi. Business Models (II). Value source & Returns s esSource: Cisc IBSG, 2011 co Sou urce: Cisco IBSG, 2012 2 Page 10
  • GOWEX GOW WEX’ Po ositionGOW WEX. Position GOWEX. Revenues Brea akdownSource: GOWEX : Source: GOWEX XGOW WEX. Co-inves stment Formu ulas. GOWEX. Example of a co-investme E entSource: GOWEX : Source: GOWE EXGOW WEX.How to re each 300 citie es GOWEX. Shareholder Structure (priior to rights issue) S S iSource: GOWEX : Source: GOWE EX Page 11
  • GOWEXGOW WEX: Summary table esPROF & LOSS (EU FIT URm) 12/2009 12 2/2010 12 2/2011 12/2 2012e 12/2 2013e 12/20 014eSales s 35.2 49.6 66.7 99.9 122 155Cost o Sales & Oper of rating Costs -29.7 -40.3 -50.2 -73.7 -90.4 -114Non R Recurrent Expen nses/Income 0.0 0.0 0.0 0.0 0.0 1.0EBITDDA 5.5 9.4 16.5 26.1 32.0 41.2EBITD (adj.)* DA 5.5 9.4 16.5 26.1 32.0 40.2Depreeciation -1.0 -1.6 -3.4 -5.9 -9.1 -13.2 -EBITAA 4.5 7.8 13.1 20.2 22.9 28.1EBITA (adj)* A 4.5 7.8 13.1 20.2 22.9 27.1Amort tisations and W rite Downs -0.9 -1.6 -3.6 0.0 0.0 0.0EBIT 3.6 6.3 9.5 20.2 22.9 28.1EBIT (adj.)* 3.6 6.3 9.5 20.2 22.9 27.1 tNet Financial Interest -0.1 0.1 0.1 0.2 0.2 0.1Other Financials r 0.0 0.0 0.0 0.0 0.0 0.0Assocciates 0.0 0.0 0.0 0.0 0.0 0.0Other Non Recurrent Items r 0.0 0.0 0.0 0.0 0.0 0.0Earnings Before Tax (EBT) x 3.5 6.3 9.6 20.4 23.0 28.2Tax -0.6 -1.2 -2.4 -5.1 -6.0 -7.3Tax ra ate 17.9% 18.7% 25.1% 2 25.0% 2 255.8% 255.9%Discontinued Operations 0.0 0.0 0.0 0.0 0.0 0.0Minorrities 0.0 0.0 0.0 0.0 0.0 0.0Net P Profit (reported)) 2.9 5.1 7.2 15.3 17.1 20.9Net P Profit (adj.) 2.9 5.1 7.2 15.3 17.1 20.9CASH FLOW (EURm H m) 12/2009 2/2010 12 12 2/2011 12/2 2012e 12/2 2013e 12/20 014eCash Flow from Oper rations before ch hange in NWC 4.8 8.2 14.2 21.2 26.2 34.1Chang in Net Workin Capital ge ng -2.1 -8.1 24.9 -5.2 -2.7 -4.5Cash Flow from Ope erations 2.7 0.2 39.1 16.0 23.5 29.6Capex x -1.6 -5.8 -10.7 -18.0 -22.0 -27.9 -Net Financial Investm ments 0.0 0.0 0.0 0.0 0.0 0.0Free CCash Flow 1.1 -5.6 28.5 -1.9 1.4 1.6Divide ends 0.0 1.0 1.0 2.1 2.5 3.1Other (incl. Capital Increase & share buy backs) r -1.3 3.7 5.1 -2.7 0.0 0.0Change in Net Debt -0.2 -0.9 34.5 -2.5 4.0 4.7NOPL LAT 2.5 4.4 6.7 14.1 16.0 18.9BALA ANCE SHEET & OTHER ITEMS (EURm)S 12/2009 2/2010 12 12 2/2011 12/2 2012e 12/2 2013e 12/20 014eNet Tangible Assets 1.7 5.8 13.3 23.6 34.6 47.1Net In ntangible Assets (incl.Goodwill) s 1.9 2.0 2.0 3.7 5.6 7.9Net Financial Assets & Other 0.2 0.5 0.7 0.7 0.7 0.7Total Fixed Assets 3.8 8.3 16.0 28.1 41.0 55.7Inventtories 0.0 0.0 0.0 0.0 0.0 0.0Trade receivables e 20.7 25.9 9.9 10.0 12.2 15.5Other current assets r 0.0 0.0 0.0 0.0 0.0 0.0Cash (-) -5.8 -15.1 -31.2 -28.3 -27.4 -26.4 -Total Current Assets s 26.5 41.1 41.1 38.2 39.7 41.9Total Assets 30.3 49.4 57.1 66.3 80.6 97.6Shareeholders Equity 12.5 22.9 35.1 50.4 67.4 88.1Minorrity 0.0 0.0 0.0 0.0 0.0 0.0Total Equity 12.5 22.9 35.1 50.4 67.4 88.1Long term interest be earing debt 1.2 3.3 6.2 6.2 6.2 6.2 sionsProvis 0.0 0.0 0.0 0.0 0.0 0.0Other long term liabili r ities 0.6 1.4 2.6 -6.2 -9.3 -14.3 -Total Long Term Lia abilities 1.8 4.7 8.8 0.0 -3.1 -8.1Short term interest be earing debt 1.9 2.6 2.9 2.9 2.9 2.9Trade payables e 14.0 19.2 10.2 12.9 13.4 14.6Other current liabilitie r es 0.0 0.0 0.0 0.0 0.0 0.0Total Current Liabili ities 16.0 21.8 13.2 15.8 16.3 17.5Total Liabilities and Shareholders Equity 30.3 49.4 57.1 66.3 80.6 97.6Net C Capital Employe ed 10.4 15.1 15.7 25.2 39.8 56.6Net W Working Capital l 6.7 6.8 -0.3 -2.9 -1.1 0.9GROW WTH & MARGIN NS 12/2009 2/2010 12 12 2/2011 12/2 2012e 12/2 2013e 12/20 014eSales growth s 45.4% 41.1% 4 34.4% 3 49.7% 4 222.6% 266.8%EBITD (adj.)* grow DA wth 139.2% 1 69.8% 6 76.3% 7 58.1% 5 222.6% 255.7%EBITA (adj.)* growth A 190.0% 1 74.2% 67.7% 6 54.2% 5 133.4% 188.2%EBIT (adj)*growth 184.0% 1 74.6% 51.9% 5 11 12.5% 133.4% 188.2% Page 12
  • GO OWEXGOWEX Summary tables X: yGROWTH & MARGINS 12/2009 12/2010 12/2011 12/2012e 12/2013e 12/2014eNet Profit gr rowth 197.5% 78.4% 40.7% 111.7% 11.8% 22.3%EPS adj. gro owth 197.5% 51.8% 25.3% 111.7% 11.8% 22.3%DPS adj. gro owth +chg -11.0% 113.9% 18.8% 22.6%EBITDA (adj margin dj)* 15.7% 18.9% 24.8% 26.2% 26.2% 25.9%EBITA (adj)* margin * 12.7% 15.7% 19.6% 20.2% 18.7% 17.4%EBIT (adj)* mmargin 10.2% 12.6% 14.2% 20.2% 18.7% 17.4%RATIOS 12/2009 12/2010 12/2011 12/2012e 12/2013e 12/2014eNet Debt/Eqquity -0.2 -0.4 -0.6 -0.4 -0.3 -0.2Net Debt/EBBITDA -0.5 -1.0 -1.3 -0.7 -0.6 -0.4Interest cove (EBITDA/Fin.interest) er 68.9 nm nm nm nm nmCapex/D&A 83.2% 185.4% 152.0% 303.5% 241.4% 211.8%Capex/Sales s 4.6% 11.6% 16.0% 18.0% 18.0% 18.0%NWC/Sales 19.0% 13.7% -0.5% -2.9% -0.9% 0.6%ROE (averag ge) 26.1% 29.0% 24.9% 35.7% 29.0% 26.9%ROCE (adj.) ) 24.4% 30.0% 44.5% 57.8% 41.0% 33.9%WACC 14.5% 14.5% 14.5% 12.5% 12.5% 12.5%ROCE (adj.) )/WACC 1.7 2.1 3.1 4.6 3.3 2.7PER SHARE DATA (EUR)* E *** 12/2009 12/2010 12/2011 12/2012e 12/2013e 12/2014eAverage dilu uted number of s shares 9.8 11.5 12.9 12.9 12.9 12.9EPS (reporte ed) 0.29 0.45 0.56 1.18 1.32 1.62EPS (adj.) 0.29 0.45 0.56 1.18 1.32 1.62BVPS 1.28 1.99 2.72 3.90 5.21 6.81DPS 0.00 0.09 0.08 0.17 0.20 0.24VALUATION N 12/2009 12/2010 12/2011 12/2012e 12/2013e 12/2014eEV/Sales 0.6 0.6 1.4 1.1 0.9EV/EBITDA 3.1 2.4 5.2 4.3 3.3EV/EBITDA (adj.)* A 3.1 2.4 5.2 4.3 3.4EV/EBITA 3.8 3.0 6.7 6.0 4.9EV/EBITA (a adj.)* 3.8 3.0 6.7 6.0 5.1EV/EBIT 4.7 4.2 6.7 6.0 4.9EV/EBIT (ad dj.)* 4.7 4.2 6.7 6.0 5.1P/E (adj.) 7.5 8.6 10.1 9.1 7.4P/BV 1.7 1.8 3.1 2.3 1.8Total Yield R Ratio -2.6% -1.4% -1.6% -2.0% -2.2%EV/CE 2.0 2.7 5.6 3.5 2.5OpFCF yield d -14.5% 45.9% -1.3% 0.9% 1.0%OpFCF/EV -19.0% 71.3% -1.4% 1.1% 1.2%Payout ratio 0.0% 19.5% 13.8% 14.0% 14.9% 14.9%Dividend yie (gross) eld 2.6% 0.6% 1.4% 1.6% 2.0%EV AND MK CAP (EURm KT m) 12/2009 12/2010 12/2011 12/2012e 12/2013e 12/2014ePrice** (EUR R) 3.35 4.79 11.98 11.98 11.98Outstanding number of sha g ares for main sto ock 9.8 11.5 12.9 12.9 12.9 12.9Total Marke Cap et 39 62 155 155 155Net Debt -3 -9 -22 -19 -18 -17o/w Cash & Marketable Sec curities (-) -6 -15 -31 -28 -27 -26o/w Gross DDebt (+) 3 6 9 9 9 9Other EV co omponents 0 0 0 0 0 0Enterprise VValue (EV adj.) ) 29 40 136 137 138Source: Company, Bankia Bolsa estima a ates.Notes* Where EBITDA (adj.) or EBITA (ad EBITDA (or EBI A dj)= ITA) -/+ Non Recurre Expenses/Incom and where EBIT ( ent me (adj)= EBIT-/+ Non R Recurrent Expenses/ /Income - PPA amor rtisation**Price (in local currency): Fiscal y end price for H year Historical Years and Current Price for current and foreca r asted yearsSector: Telec communications/T Telecommunicati ionsCompany De escription: Gowex operates within the telecommu x n unication sector, occupying a uniique position as a neutral infrast tructuremanager and interconnection services company for operators. Gowex was founded in 1999 and currently focus on 2 main ac d . ses ctivities:1) Gowex Wir reless (main grow driver): servic related to wir wth ces reless telecommuunications: mana agement and ope eration of WiFi ne etworks,wireless roam ming platform 2) G Gowex Telecom ( (traditional activit bandwith trad ty): ding and B2B tele ecoms market seervices. Pag 13 ge
  • GO OWEXEur ropean Cov verage of t Members of ESN theA e ro s ce & D ef e ns e spa M e m( *) Banesto BB O Thyssenkru upp EQB Grupo San Jo se BB BO Azimut BAK KA viatio n Lateco ere o CIC Bank Of Cyprus IBG Tubacex BBO Heijmans SN NS Banca Generali BAK KB ae Sy ystems Plc CIC er Bankinte BB O mene Upm-Kymm POH Ho chtief EQ QB Banca Ifis BAK KDassa Aviation ault CIC Bbva BB O B io t e chno lo gy o M e m ( *) Ho lcim Ltd CIC C Bb Bio tech EQBEads CIC Bcp CBI 4Sc Ag EQB Imerys CIC C Binckbank S SNS eccanicaFinme BAK Bes CBI Bio alliance Pharma CIC Impregilo BA AK Bois Sauvage BDG GLisi CIC Bnp Paribas CIC Epigenomic Ag cs EQB Italcementi BA AK Bolsas Y M ercad s Espano les do BB OM tu EQB ama Bourso ra CIC M etabo lic E Explo rer CIC Lafarge CIC C Capman POH H metallRheinm EQB Bper BA K M o rphosys s EQB n Lemminkäinen PO OH Cir BAK KRolls R yce Ro CIC Bpi CBI Neo vacs CIC M aire Tecnim o nt BA AK Comdirect EQBSafran n CIC rzbank Commer EQB Transgene CIC M aisons Fran Co nfo rt nce CIC C Corp. Financiera Alba O BBOThales s CIC Credem BA K Wilex EQB M o ta Engil CBI C Dab Bank EQBZo diac c CIC gricole Sa Credit Ag CIC Zeltia BBO Obrascon Hua Lain arte BB BO Deutsche B oers e EQBA irlin nes M e m( *) Creval BA K C he m ic a l s M e m ( *) Ramirent PO OH Deutsche Fo rfait t EQBA ir Fra ance Klm CIC Deutsche B ank e EQB Air Liquide CIC Ro yal Bam Gr up ro SN NS Financiere De Tu ubize BDG GFinnair POH Dexia BDG el Akzo No be SNS Sacyr Valleher so rmo BB BO Fo nciere Des 6E Et 7Eme Ar Eme CIC ansaLuftha EQB Efg Euro bank Ergasias IBG Basf EQB Saint Gobain CIC C Gbl G BDGA uto m o bile s & P a rt s M e m( *) Garanti B Bank IBG Dsm SNS So nae Industria CBI C Gimv BDG G vA uto liv CIC Halkbank k IBG Floridienne BDG Srv PO OH Grenkeleasing A g EQBB mw EQB Ing Gro up p SNS olub Fuchs Petro EQB Thermado r Gr upe ro CIC C Hellenic Exchang ges IBG boB remb BAK Intesa Sa anpao lo BA K Henkel EQB Titan Cement IB BG Hypoport Ag EQBContin nental EQB Kbc Gro u up BDG Ho lland Co lo urs SNS Trevi BA AK Ifg Gro up Plc B NCBDaimle Ag er EQB M edio ba anca BA K K+S Ag EQB Upo no r PO OH Kbc Anco ra BDG GElringk klinger EQB Natio nal Bank Of Greece IBG Kemira POH Uzin Utz EQ QB Luxempart BDG GFaurec cia CIC Natixis CIC Lanxess EQB Vbh Ho lding EQ QB M lp EQBFiat BAK Nordea POH Linde EQB Vicat CIC CLandi R Renzo BAK Piraeus B Bank IBG Nanogate A Ag EQB Vinci CIC CLeo ni EQB Postbank EQB Recticel BDG Yit PO OH elinM iche CIC So ciete G Generale CIC Solvay BDG E lec t ro nic & E le ct ric a l EquM e m *) m(Nokian Tyres POH Ubi B anc ca BA K Symrise Ag EQB Agfa-Gevaert BD DG ioP iaggi BAK Unicredit BA K o Tessenderlo BDG Areva CIC CP irelli & C. BAK Yapi Kred Bank di IBG Tikkurila POH hnolo gie Augusta Tech EQ QBP lastic Omnium c CIC B a s ic R es o urce s M em( *) Umico re BDG Barco BD DGP lastiv valoire CIC Acerinox x BB O emie Wacker Che EQB Euromicro n A g EQ QBP orsc che EQB Altri CBI C o ns t ruc t io n & M a t e rials M e m ( *) Evs BD DGP sa P eugeo t Citroen CIC mittal Arcelorm BB O Acs BBO Gemalto CIC C ultRenau CIC Cro wn Va Gelder an SNS Astaldi BAK Ingenico CIC CSo gef i BAK Dnick Ho lding Plc o EQB dam Ballast Ned SNS Ko ntron EQ QBStern G Groep SNS Ence BB O Bilfinger Be erger EQB Lacie CIC CValeo CIC Euro pac BB O Bo skalis W Westminster SNS Legrand CIC C wagenVo lksw EQB Inapa CBI Buzzi Unice em BAK M o bo tix Ag EQ QBB a nk s M e m( *) M etka IBG Capelli CIC Neways Electr nics ro SN NSA areal B ank EQB M etsä B oard POH Cfe BDG Nexans CIC C nkA kban IBG M ytilineo s o IBG ançais Ciments Fra CIC Pkc Gro up PO OHA ktia POH Nyrstar BDG Cramo POH Rcf Gro up BA AKA lpha Bank IBG mpu Outo kum POH k Deceuninck BDG Rexel CIC CB anca Carige a BAK Portucel CBI Eiffage CIC ctric Sa Schneider Elec CIC CB anca M ps a BAK ukki Rautaruu POH Ellakto r IB G Vaco n PO OHB anco Po po lare o BAK Salzgitter r EQB Fcc BBO Vaisala PO OHB anco Po pular o BBO Semapa CBI Ferrovial BBO Xeiko n Nv SN NSB anco Sabadell o BBO Stora Enso POH Gek Terna IB G F ina nc ia l Se rv ic es e M e m *) m(B anco Santander o BBO Talvivaar M ining Co Plc ra POH Gro ntmij SNS Ackermans & Van Haaren BD DG Pag 14 ge
  • GO OWEXF o o d & B everage M em(*) Ahold SNS S M acintosh SNS Sonae Capital CBI Singulus Technologies EQBAcom o SNS Bim IBG Rapala POH Trigano CIC Sm Scharf Ag mt EQBAnheu user-Busch Inbev BDG Carrefour CIC C Stockmann POH Tui EQB Sog geclair CICAryzta NCB Casino Guic chard-Perrachon CIC C H ealthcare M em (*) H o useho ld Go o ds ) s M em (*) Ten Cate n SNSAtria POH Colruyt BDG B Ab-Biotics BBO De Longhi BAK Trilogiq CICBaron De Ley BBO Delhaize BDG B Almirall BBO Elica BAK Vos ssloh EQB aBaywa EQB Dia BBO B Amplifon BAK Indesit BAK Wä ärtsilä POHBerent tzen EQB Kesko POH P Arseus BDG Philips Electronics SNS Zar rdoya Otis BBOBondu uelle CIC M arr BAK B Bayer EQB Seb Sa CIC Ind dustrial T ranspo rtati n M em(*) ioC&C G Group NCB Rallye CIC C Biomerieux CIC U10 CIC Abe ertis BBOCampa ari BAK Sligro SNS S Biotest EQB Industrial Enginee ring M em (*) Adp CICCampo ofrio BBO Sonae CBI C Cegedim CIC Accsys Technologies SNS Atla antia BAKCoca C Hellenic Cola IBG General In ndustrials em(*) Celesio Me EQB Agta Record CIC Bo llore CICCsm SNS Aalberts SNS S Diasorin BAK Aixtron EQB Bris sa CBI neDanon CIC Accell Grou up SNS S Drägerwerk EQB Ansaldo Sts BAK Caf f BBODe M a aster Blenders 1753 SNS Advanced V Vision Technology EQB E Faes Farma BBO Bauer Ag EQB Deutsche Post EQBDoneg Creameries gal NCB Ahlstrom POH P Fresenius EQB Biesse BAK Do ckwise SNSDuvel BDG Analytik Jen na EQB E Fresenius M edic Care cal EQB Cargotec Corp POH Fra aport EQBEbro F Foods BBO Arcadis SNS S Gerresheimer Ag g EQB Cfao CIC Gemina BAKEnervit t BAK Aspo POH P Grifols Sa BBO Danieli BAK Hes Beheer s SNSFleury M ichon CIC Azkoyen BBO B Korian CIC Datalogic BAK Hhla EQBForfarmers SNS Bekaert BDG B Laboratorios Ro vi BBO Delclima BAK Log gwin EQBFyffes NCB Dcc NCB N M edica CIC Duro Felguera BBO No rbert Dentressangle CICGlanbia NCB Derby Cycle e EQB E M ediq SNS Emak BAK Po stnl SNS kenHeinek SNS Evolis CIC C M erck EQB Exel Composites POH Sia as BAKHksca an POH Frigoglass IBG Natraceutical Sa BBO Exel Industries CIC Tnt Express t SNSKerry G Group NCB Huhtamäki POH P Novartis CIC Faiveley CIC Ins surance M em(*)Ktg Ag grar EQB Kendrion SNS S Oriola-Kd POH Fiat Industrial BAK Aeg gon SNSLanso n-Bcc CIC M artifer Sgp Sa ps CBI C Orion POH Gea Group EQB Age eas BDGLauren Perrier nt CIC M ifa EQB E Orpea CIC Gesco EQB Allianz EQBLdc CIC Nedap SNS S Recordati BAK Gildemeister EQB Axa a CICLotus Bakeries BDG Neopost CIC C Rhoen-Klinikum EQB Haulotte Group CIC Delta Lloyd SNSNatra BBO Pöyry POH P Roche CIC Heidelberger Druck EQB Fbd Holdings Plc d NCB exNature CIC Prelios BAK B Sanofi-Aventis CIC Ima BAK Fo ndiaria Sai BAKNestle e SNS Resilux BDG B Sorin BAK Interpump BAK Generali BAKNutrec co SNS d Saf-Holland EQB E Stallergènes CIC Khd Humboldt Wedag Internatio EQB Hannover Re EQBOlvi POH Saft CIC C Ucb BDG Kone POH Ma apfre Sa BBOOrigin Enterprises NCB Skw Stahl EQB E United Drug NCB Konecranes POH Me ediolanum BAK alatParma BAK Tessi CIC C H o tels, T rave l & T o urism M em (*) Krones Ag ) EQB M ilano Assicurazioni BAKPerno d-Ricard CIC Tkh Group SNS S Accor CIC Kuka EQB Mu unich Re EQBPinguinlutosa BDG Vidrala BBO B Autogrill BAK M an EQB Sam mpo POHRaisio POH Wendel CIC C Beneteau CIC M anitou CIC Talanx Group EQBRemy Cointreau CIC General R etailers em(*) Compagnie Des Alpes Me CIC M ax Automation Ag EQB Unipol BAKSipef BDG Beter Bed H Holding SNS S Groupe Partouch he CIC M etso POH Zur Financial Services rich BAK ekeTer Be BDG DIeteren BDG B I Grandi Viaggi BAK Outotec POHTotal P Produce NCB olding Douglas Ho EQB E Ibersol CBI Pfeiffer Vacuum EQBUnileve er SNS Fielmann EQB E Intralot IBG Ponsse POHVilmor rin CIC Folli Follie G Group IBG Lottomatica BAK Prima Industrie BAKViscof fan BBO Fourlis Hold dings IBG ernational M elia Hotels Inte BBO Prysmian BAKVranke Pommery M onopole en CIC Inditex BBO B Nh Hoteles BBO Reesink SNSWessa anen SNS Jacquet M e Service etal CIC C Opap IBG Sabaf BAKF o o d & D rug R etailers M em(*) Jumbo IBG Ibg CIC Schuler Ag EQB Pag 15 ge
  • GO OWEXM edia a M em(*) Total CIC C Realia BBO Gameloft CIC Bellgacom BDGAd Pepper EQB Tupras IB G Retail Estates BDG Gft Technolo gies EQB Bo uygues CICAdlpar rtner CIC O il Servic es M e m(*) Sponda POH Groupe Open CIC utsche Telekom Deu EQBAlma M edia POH B ourbon CIC C Techno polis POH n Guillemot Co rporation CIC Elis sa POHAntena 3Tv a BB O Cgg Veritas CIC C Unibail-Rodamco o BDG I.R.I.S. BDG Eut telsat Co mmunications S Sa CICBrill SNS Fugro SNS S Vastned Retail BDG I:Fao Ag EQB Fra ance Telecom CICCaltagirone Edito re BA K Saipem B AK Vib Vermoegen EQB Ict Automatisering SNS Fre eenet EQB aCo fina CB I Technip CIC C Wdp BDG Indra Sistemas BBO Go wex BBOEditoriale LEspresso BA K eunidas Tecnicas Re B BO R enewable En ergy M em(*) Integralis Ag ) EQB d Iliad CIC entsGl Eve CIC Tenaris B AK Abengo a BBO Itelligence EQB Jaz zztel BBOHavas CIC Vallourec CIC C Biopetrol Industries EQB Neuro nes CIC Kpn Teleco m n SNS diaHi-M ed CIC Vopak SNS S Daldrup & Soehne EQB Novabase Sgps CBI Mo obistar BDGImpres sa CB I P erso nal Go o ds M e m(*) Deutsche Bio gas s EQB Ordina SNS Ote e IBGIpsos CIC A didas EQB E Enel Green Po we er BAK Osiatis CIC Po rtugal Telecom CB I auxJcdeca CIC A mer Sport s P OH Gamesa BBO Psi EQB s Ses CICKinepo olis BDG B asic Net B AK Phoenix Solar EQB Qurius SNS Son naecom CB ILagard dere CIC B eiersdo rf EQB E Sma So lar Techn gy nolo EQB Realdolmen BDG Telecom Italia BAKLbi Inte ernational Nv SNS Geox B AK Solar-Fabrik EQB Reply BAK Telefonica BBOM 6-M e pole Televisio n etro CIC r Gerry Weber EQB E Solarworld EQB Rib So ftware EQB Telenet Gro up BDGM edias set BA K Hugo Bo ss EQB E Solutro nic EQB Seven Principles Ag EQB Teliasonera POHM edias Espana set BB O Loewe EQB E Sunways EQB Sii CIC Tis cali BAKM eetic c CIC Luxottica B AK Semic o nduc to rs o M em(*) Sopra Group ) CIC rkcell Tur IBGNextra tv adio CIC M arcolin B AK Asml SNS Steria CIC United Internet EQBNo stru um BB O M arimekko P OH Besi SNS Tieto POH dafone Vod BAKNrj Gro oup CIC M edion EQB E M elexis BDG Tomtom SNS Ziggo SNSPages Jaunes CIC P pr CIC C Okmetic POH Transics BDG Zon M ultimedia n CB IPrisa BB O P uma EQB E Roodmicrotec SNS Unit4 SNS ilities Uti M em(*)Public is CIC Safilo B AK Stmicro electro nics BAK Winco r Nixdo rf EQB A2A A BAKRcs M ediagroup BA K Salvatore F erragamo B AK Suess M icrotec EQB Suppo rt Se rvice s M em(*) Acc ciona BBOReed E Elsevier N.V. SNS Sarantis IB G So ftware & C o mputer S ervM em(*) Batenburg ) SNS Ace ea BAKRo ular rta BDG TodS B AK Aedian CIC Brunel SNS E.O On EQBRtl Gro oup BDG de Van De Veld B DG Affecto POH Bureau Veritas S.A. CIC Edp p CB ISanom ma POH Zucchi B AK Akka Technologies CIC Cpl Resources Plc NCB Edp Renováveis p CB ISeat BA K R eal E sta te M e m(*) Alten CIC Dpa SNS Elia a BDG ommunicationSpir Co CIC A edifica B DG Altran CIC Edenred CIC Ena agas BBOTalent um POH A scencio B DG Amadeus BBO Ei Towers BAK End desa BBOTelegra M edia Groep aaf SNS A tenor B DG Atos CIC Fiera M ilano BAK Ene el BAKTelepe rmance erfo CIC B animmo B DG Basware POH Imtech SNS Fluxys BDGTf1 CIC B efimmo B DG Beta Systems So oftware EQB Lassila & Tikanoja POH rtum For POH diaTi M ed BA K B eni Stabili B AK Bull CIC Prosegur BBO Gas Natural Feno sa s BBOUbisof ft CIC Citycon P OH Capgemini CIC Randstad SNS Gdf Suez f CICVivend di CIC Cofinimmo B DG Cegid CIC Tmc Group SNS Her ra BAKWo lter Kluwer rs SNS Corio B DG Cenit EQB Usg P eople SNS Iber rdrola BBOOil & Ga s P ro ducers M em(*) Deutsche Euro shop EQB E Comptel POH T elec o m E quipme nt M em(*) Iren n BAKEni BA K Home Inves B elgium st B DG Ctac SNS Alcatel-Lucent CIC Pub Power Corp blic IBGGalp Energia CB I Igd B AK Dassault System es CIC Ericsson POH Red Electrica De Espana d BBOGas P lus BA K Intervest Of fices & Warehouses B DG Digia POH Gigaset EQB Ren n CB IHellenic P etroleum IB G etail Intervest Re B DG Docdata SNS Hf Co mpany CIC Rw we EQBM aure Et Prom el CIC Ivg Immo biliien A g EQB E Engineering BAK Nokia POH Sec chilienne Sidec CICM o tor Oil r IB G Klepierre B DG Esi Gro up CIC Teleste POH Sna am BAKNeste Oil POH Leasinvest R Estate Real B DG Exact Holding Nv v SNS T elec o mmunica tio ns o M em(*) Sue Enviro nnement ez CIC olRepso BB O B bo B DG F-Secure POH Acotel BAK Ter rna BAK Veo lia Environnement o CIC LEGEND: BAK: B Banca Akros; BDG: B Bank Degroof; BBO: B Bankia Bolsa; CIC: CM M-CIC Securities; CBI: Caixa-Bano de Inves : stimento; As of 30th Nove ember 2012 Pag 16 ge
  • GO OWEXList of ESN Analysts (**) )Ari Ago opyan CIC +33 145 96 85 80 ari.agopyan@cmcics.c com Jean-Christophe Lefèvre-M oulenq CIC +33 145 96 9104 jeanchristop phe.lefevremoulenq@cmcic cs.comEdouar Aubery rd EQB +49 69 5899 7439 edouard.aubery@equin net-ag.de Dov Levy CIC +33 145 96 78 74 dov.levy@cm mcics.comChristia Auzanneau an CIC +33 4 78 92 0185 christian.auzanneau@cmcics.com Sébastien Liagre CIC +33 145 96 90 34 sebastien.lia agre@cmcics.comOlivier Bails, CFA CIC +33 145 96 78 72 com olivier.bails@cmcics.c Harald Liberge-Dondoux CIC +33 145 96 98 12 harald.liberge edondoux@cmcics.comHelena Barbosa a CBI +35121389 6831 helena.barbosa@caixa abi.pt Konstantinos M anolopou ulos IBG +30 210 817 3388 kmanolopou ulos@ibg.grVictor B Bareño, CFA SNS +312 0 5508822 victor.bareno@snssec curities.nl Sergio Ruiz M artin BBO +34 91436 7866 sruizma@ba ankia.comJavier B Bernat BBO +34 91436 7816 jbernat@bankia.com Dario M ichi BAK +39 02 4 4237 4344 dario.michi@ @bancaakros.itDimitris Birbos s IBG +30 210 8173 392 dbirbos@ibg.gr José M ota Freitas, CFA CBI +35122 607 09 31 mota.freitas @caixabi.ptJean-P Pascal Brivady CIC +33 4 78 92 02 25 jeanpascal.brivady@cm mcics.com Louis Nicolopoulos IBG +30 210 8173 377 os@ibg.gr inikolopouloDavid C Cabeza Jareño BBO +34 914367818 dcabeza@bankia.com m Henri Parkkinen POH +358 10 252 4409 henri.parkkin nen@pohjola.fiGiada C Cabrino, CIIA BAK +39 02 4344 4092 giada.cabrino@bancaa akros.it Adrian Pehl, CFA EQB +49 69 5 58997 438 adrian.pehl@ @equinet-ag.deNiclas C Catani POH +358 10 252 8780 niclas.catani@pohjola a.com Victor Peiro Pérez BBO +34 91436 7812 vpeirope@bankia.comJean-M arie Caucheteux M BDG +32 2 287 99 20 jeanmarie.caucheteux@ @degroof.be Francis Prêtre CIC +33 4 78 92 02 30 8 francis.pretre e@cmcics.comM arco Cavalleri BAK +39 02 4344 4022 marco.cavalleri@banc caakros.it Francesco Previtera BAK +39 02 4 4033 4344 francesco.pr revitera@bancaakros.itPierre C Chedeville CIC +33 145 96 78 71 pierre.chedeville@cmc cics.com Jari Raisanen POH +358 10 252 4504 jari.raisanen@ @pohjola.fiEmman Chevalier nuel CIC +33 145 96 77 42 emmanuel.chevalier@ @cmcics.com Hannu Rauhala POH +358 10 252 4392 hannu.rauhala@pohjola.fiFlorent Couvreur t CIC +33 145 96 77 60 florent.couvreur@cmc cics.com M atias Rautionmaa POH +358 10 252 4408 matias.rautio onmaa@pohjola.fiEdwin d Jong de SNS +312 0 5508569 edwin.dejong@snssec curities.nl Eric Ravary CIC +33 145 96 79 53 eric.ravary@ @cmcics.comNadesh Demidova hda EQB +49 69 58997 434 nadeshda.demidova@ @equinet-ag.de Iñigo Recio Pascual BBO +34 91436 7814 irecio@bank kia.comM artijn den Drijver SNS +312 0 5508636 martijn.dendrijver@sns ssecurities.nl M aria Rivas Rodriguez BBO +34 91436 7815 mrivasro@b bankia.comChristia Devismes an CIC +33 145 96 77 63 christian.devismes@c cmcics.com André Rodrigues CBI +351213 68 39 389 andre.rodrigu ues@caixabi.ptAndrea Devita, CFA, a BAK +39 02 4344 4031 andrea.devita@bancaa akros.it Jean-Luc Romain CIC +33 145 96 77 36 jeanluc.roma ain@cmcics.comHans D DHaese 3 BDG +32 (0) 2 287 9223 hans.dhaese@degroo f.be EFA Jochen Rothenbacher, CE EQB +49 69 5 58997 415 jochen.rothe enbacher@equinet-ag.deDries D Dury BDG +32 2 287 9176 e dries.dury@degroof.be Vassilis Roumantzis IBG +30 2108 8173394 vroumantzis @ibg.grIngbert Faust, CEFA EQB +49 69 58997 410 ingbert.faust@equinet -ag.de Sonia Ruiz De Garibay BBO +34 91436 7841 sruizdegariba ay@bankia.comRafael Fernández de Heredia BBO +34 91436 78 08 @bankia.com rfernandezdeheredia@ Antti Saari POH +358 10 252 4359 antti.saari@p pohjola.fiStefan Freudenreich, CFA EQB +49 69 58997 437 stefan.freudenreich@e equinet-ag.de Paola Saglietti BAK +39 02 4 4287 4344 paola.sagliet tti@bancaakros.itEmmet Gaffney t NCB 00 353 6115717 emmet.gaffney@ncb.ie e Francesco Sala BAK +39 02 4 4240 4344 francesco.sa ala@bancaakros.itGabriele Gambarova 9 BAK +39 02 43 444 289 gabriele.gambarova@bancaakros.it Lemer Salah SNS +312 0 5 5508516 Lemer.salah@snssecurities.nlClaudio Giacomiello, CFA o BAK +39 02 4344 4269 bancaakros.it claudio.giacomiello@b M ichael Schaefer EQB +49 69 5 58997 419 michael.scha aefer@equinet-ag.deAna Isa González García CIIA BBO +34 91436 78 09 abel agonzalezga@bankia.c com Holger Schmidt, CEFA EQB +49 69 5 99 74 32 58 holger.schm idt@equinet-ag.deM arc G Gouget CIC +33 145 96 8759 marc.gouget@cmcics s.com Tim Schuldt, CFA EQB +49 69 5 7433 5899 tim.schuldt@ @equinet-ag.deDarren Greenfield, CFA NCB +353 16115918 darren.greenfield@ncb b.ie Pekka Spolander POH +358 10 252 4351 pekka.spolander@pohjola.fiArsène Guekam e CIC +33 145 96 78 76 arsene.guekam@cmc ics.com Gert Steens SNS +312 0 5508639 gert.steens@ @snssecurities.nlBernard Hanssens d 9 BDG +32 (0) 2 287 9689 bernard.hanssens@de egroof.be Kimmo Stenvall POH +358 10 252 4561 kimmo.stenv vall@pohjola.fiPhilipp Häßler, CFA EQB +49 69 58997 414 philipp.haessler@equin net-ag.de Natalia Svyrou-Svyriadi IBG +30 210 8173 384 nsviriadi@ibg.grTom H olmes NCB +353 16115876 tom.holmes@ncb.ie Annick Thévenon CIC +33 145 96 77 38 annick.theve enon@cmcics.comCarlos Jesus CBI +35121389 6812 carlos.jesus@caixabi.p pt Luigi Tramontana BAK +39 02 4 4239 4344 luigi.tramont tana@bancaakros.itLillian K Katelani IBG +30-210-8173-389 lkatelani@ibg.gr Johan van den Hooven SNS +312 0 5508518 johan.vandenhooven@snssecurities.n nlJean-M ichel Köster M CIC +33 145 96 77 17 jeanmichel.koster@cm mcics.com os Guido Varatojo dos Santo CBI +3512138 896822 guido.santos s@caixabi.ptM arc L Leemans, CFA 1 BDG +32 (0) 2 287 9361 marc.leemans@degro of.be Richard Withagen SNS +312 0 5508572 richard.witha agen@snssecurities.nl(**) excluding: strategi e ists, macroeconom mists, heads of res search not coverin specific stocks, credit analysts, technical analysts ng t s Pag 17 ge
  • GOWEX ES Reco SN ommend dation System S The ESN Recom e mmendation S System is Ab bsolute. It me eans that eac stock is rated on the ch bas of a total return, mea sis asured by the upside potential (including dividends and capital e g a reim mbursement) over a 12 mo onth time hori izon. The ESN spectr e rum of recom mendations (o ratings) for each stock c or r comprises 5 categories: c Bu Accumulate (or Add), H uy, Hold, Reduce and Sell (in short: B, A, H R, S). e H, Furthermore, in specific cases and for a lim s s mited period of time, the ana alysts are allow to rate wed the stocks as Ra e ating Suspend (RS) or Not Rated (NR as explaine below. ded N R), ed Me eaning of each recommen dation or rati ing:  Buy: the stock is expec e cted to generate total return of over 20% durin the next e ng 12 months time horizonn  Accumu ulate: the stock is expected to generate total return of 10 to 20% k t 0% during th next 12 mont time horizon he ths n  Hold: th stock is expe he ected to genera total return of 0% to 10% during the ate next 12 months time ho orizon.  Reduce: the stock is ex xpected to gene erate total return of 0% to -10% during the n % next 12 months time hoorizon  Sell: the stock is expec e cted to generate total return un e nder -10% durin the next ng 12 months time horizon n  Rating Suspended: th rating is suspended due to a capital opera S he ation (take- over bid, SPO, …) whe the issuer of the documen (a partner of ESN) or a ere o nt related party of the iss p suer is or could be involved or to a change of analyst d o covering the stock g  Not Rated: there is no rating for a com mpany being floa ated (IPO) by th issuer of he ument (a partne r of ESN) or a related party of the issuer the docu r t Bankia Bolsa Ratings Brea akdownHisto of ESN Recommendation System orySince 18 October 2004, the Memb e bers of ESN are using an Abso e olute Recomme endation System (before was a mRelati Rec. System to rate any si ngle stock unde coverage. ive m) erSince 4 August 2008, the ESN Rec System has been amended as follow. e c. b a Time horizon changed to 12 mo T onths (it was 6 months) m Recommendatio Total Return Range change as below: R ons n ed TODAY SELL REDU UCE HOLD ACCUMULA ATE BUY -10% 0% 10% 20% BEFORE SELL REDUCE E HO OLD ACCUM MULATE BUY -15% 0% 5% 15% Pag 18 ge
  • GOWEXRecommendation history for GO n OWEXDatte Recomme endation Target price Price at change date P e04- -Dec-12 Buy 15.00 11.9820- -Jul-12 Buy 10.70 6.1003- -Oct-11 Buy 6.80 4.4010- -May-10 Buy 7.00 3.57Source: Factset & ES price data adju SN, usted for stock spl lits.This chart shows Ban s nkia Bolsa continu uing coverage of this stock; the cu urrent analyst may or may not have covered it over the entire period Current analyst: y r d. :Dav Cabeza Jareño (since 26/03/201 vid o 10) 16 14 12 10 8 6 4 2 Dec 11 Jan J 12 Feb 12 Mar 12 Apr 12 May 12 Jun J 12 Jul 12 Aug 12 Sep 12 Oct 12 Nov N 12 Dec 12 Jan 13 story Price his Target price history Buy Accumul late Hold Reduce Sell Not ratedInf formation re egarding Market Abuse and Conf e flicts on Inte erests and re ecommend dation histor available ry ein our web pa age: www.b bankiabolsa a.es and our offices. rAs of the date of this report, Bankia Bolsa S.V.S.A acts as agent or liquidity provide for Let’s GOWEX. e A er GThe informatio and opinions conta e on ained in this documen have bee compiled by Bankia Bolsa S.V. s nt en d a .S.A from sources believe to be rel A., ed liable. This d document is not intended to be an offer, or a solicitation s n nto buy or sell relevant seecurities. Ba ankia Bolsa S.V. S.A., will not take any respon w nsibility wha atsoever forrlos sses which m may derive from use of the prese nt docume or its con ent ntents, Bank Bolsa S.V S.A., can kia V. nocccasionally have posit tions in som of the s me securities mentioned in this repo m ort, through its trading gpoortfolio or ne egotiation. A Additionally there can exist a commercial re y, n elation betw ween Bankia Bolsa S.V. .S.A Bankia and the men A., ntioned com mpanies. Page 19 e
  • Disclaimer:These reports have been pr repared and issued by the Members of European fSecurities Network LLP (‘ESN ESN, its Membe and their affiliate (and any s N’). ers es Members of ES (European Se SN ecurities Network LLP) kdirector, officer or employee thereof), are neither liable for the proper and e pcomplete transmission of the ese reports nor for a any delay in their reeceipt. Anyunauthoris sed use, disclosure copying, distributio or taking of any action in e, on,reliance on these reports is s o strictly prohibited. The views and express sions in thereports ar expressions of opinion and are given in good faith, but are subject to re echange without notice. These reports may not be reproduced in whole or in part w e e Equinet Bank AGor passed to third parties without permission. The information herein was . h Banca Akro S.p.A. os Gräfstraße 97 7obtained from various source ESN, its Membe and their affiliates (and any es. ers Viale Eginardo, 29 60487 Frankf am Main furtdirector, officer or employee thereof) do not guarantee their accuracy or 20149 Milanno Germanycompleten ness, and neither ES nor its Members, nor its Members’ af SN, , ffiliates (nor Italy Phone:+49 69 – 58997 – 410 9any direct officer or employ thereof) shall be liable in respect of any errors or tor, yee Phone: +39 02 43 444 389 9 Fax:+49 69 – 58997 – 299omissions or for any losses o consequential loss arising from suc errors or s or ses ch Fax: +39 02 43 444 302 2omissions Neither the inform s. mation contained in these reports nor any opinion aexpressed constitutes an offer or an invitation to m d r, make an offer, to buy or sell any ysecurities or any options, futu ures or other derivatives related to such securities h(‘related innvestments’). These reports are prepared for the clients of the Members dof ESN only. They do not h o have regard to the specific investment objectives,financial situation and the p particular needs of any specific person who may nreceive an of these reports. I ny Investors should see financial advice regarding the ek Bank Degr roof Investment Bank of Greece Bappropriateness of investing in any securities or investment strategies discussed s Rue de I’Inddustrie 44 24B, Kifisias Avenue Aor recom mmended in these reports and should understand that statements d 1040 Brusssels 151 25 Marousiregarding future prospects ma not be realised. Inv ay vestors should note that income t Belgium Greecefrom such securities, if any, m fluctuate and tha each security’s price or value h may at Phone: +32 2 287 91 16 2 Phone: +30 21 81 73 000 10may rise or fall. Accordingly investors may rec y, ceive back less than originally Fax: +32 2 231 09 04 Fax: +30 210 68 96 325invested. Past performance is not necessarily a guide to future pe erformance.Foreign currency rates of ex c xchange may adver rsely affect the valu price or ue,income of any security or re o elated investment m mentioned in these reports. Inaddition, investors in securities such as ADRs, wh hose value are influen nced by thecurrency of the underlying sec o curity, effectively assu ume currency risk.ESN, its Members and their a M affiliates may submit a pre-publication dr (without raftmentionin neither the recom ng mmendation nor the target price/fair va e alue) of itsreports fo review to the Inves or stor Relations Depar rtment of the issuer forming thesubject of the report, solely fo the purpose of correcting any inadverte material f or entinaccurac cies. Like all member employees, analys receive compensa rs sts ation that is Bankia Bolsa NCB Stockbro okers Ltd.impacted by overall firm profit tability For further deetails about the spec cific risks of Serrano, 39 9 3 George Dockk,the comp pany and about the valuation methods used to determine the price e s e 28001 Mad drid Dublin 1targets included in this report t/note, please refer t the latest relevan published to nt Spain Irelandresearch on single stock or contact the analys named on the front of the r st Phone: +34 91 436 7813 4 Phone: +353 1 611 5611report/not Research is available through your sales representative ESN will te. e. Fax: +34 91 577 3770 1 Fax: +353 1 61 5781 11provide periodic updates on companies or secto based on compa p ors any-specificdevelopm ments or announcem ments, market conditions or any oth her publiclyavailable information. Unless agreed in writing with an ESN Me s g ember, thisresearch is intended solely for internal use by the recipient. 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