technotrans SE

Earnings Release • May 8, 2015

Germany/ Industrial Engineering Post results note

Investment Research 8 May 2015

Buy

Recommendation unchanged
Share price: EUR			14.67
closing price as of 07/05/2015
Target price: EUR			20.00
from Target Price: EUR			14.00
Reuters/Bloomberg			TTRGn.DE/TTR1 GR
Daily avg. no. trad. sh. 12 mth			18,867
Daily avg. trad. vol. 12 mth (m)			275.88
Price high 12 mth (EUR)			14.90
Price low 12 mth (EUR)			7.41
Abs. perf. 1 mth			9.1%
Abs. perf. 3 mth			42.1%
Abs. perf. 12 mth			78.0%
Market capitalisation (EURm)			96
Current N° of shares (m)			7
Free float			83%
Key financials (EUR)	12/14	12/15e	12/16e
Sales (m)	112	122	133
EBITDA (m)	10	12	13
EBITDA margin	8.8%	9.7%	9.4%
EBIT (m)	7	9	10
EBIT margin	6.1%	7.4%	7.5%
Net Profit (adj.)(m)	4	6	7
ROCE	9.8%	12.7%	14.0%
Net debt/(cash) (m)	(6)	(9)	(12)
Net Debt Equity	-0.1	-0.2	-0.2
Net Debt/EBITDA Int. cover(EBITDA/Fin.int)	-0.6 17.4	-0.8 41.2	-1.0 114.2
EV/Sales	0.5	0.7	0.7
EV/EBITDA	6.0	7.8	7.0
EV/EBITDA (adj.)	6.0	7.8	7.0
EV/EBIT	8.6	10.1	8.8
P/E (adj.)	13.7	16.1	14.6
P/BV	1.3	1.9	1.8
OpFCF yield	9.5%	5.9%	6.6%
Dividend yield	2.2%	3.1%	3.4%
EPS (adj.)	0.68	0.91	1.00
BVPS	7.19	7.74	8.30
DPS	0.33	0.45	0.50

Shareholders: Objectif Small Cap 6%; Treasury stock 6%; Midlin 5%;

TECHNOTRANS CDAX (Rebased)

For company description please see summary table footnote

Technology Increased Profitability Faster Than Expected Target price increased to EUR 20 – Buy rating reiterated

The facts: Technotrans published Q1/15 results today and hosted a conference call.

All figures and in particular EBIT margin were better than our already positive expectations. Sales increased by 12.9% to EUR 30.6m (equinet EUR 30.4m) driven by 30% growth of non-print applications. EBIT margin came in at 7.5% and thus 230bps above prior year's value and 60bps better than expected. This was mainly driven by Technology increasing profitability further to an EBIT margin of 3.0% (vs. Q1/14 -0.7%). In addition the Service division also increased its already high probability level from 16.3% to 16.9%.

Free cash flow almost doubled from EUR 1.5m to EUR 3.0m. This was mainly caused by higher capex in Q1/14 due to the Termotek acquisition. Furthermore, 2015 guidance of EUR 116-120m at an EBIT margin 6.8-7.3% was confirmed.

Q1/15 review

EUR m	Q1/15	Q1/15e	delta	Q1/14	yoy	2015e
Sales	30.6	30.4	1%	27.1	13%	121.7
EBITDA	3.1	2.1	46%	2.1	45%	11.7
EBITDA margin	10.0%	6.9%	310bp	7.8%	220bp	9.6%
EBIT	2.3	2.1	9%	1.4	64%	9.0
EBIT margin	7.5%	6.9%	60bp	5.2%	230bp	7.4%
Net income	1.5	1.3	13%	0.9	63%	5.9
EPS (€)	0.22	0.20	10%	0.14	57%	0.91

Sources: Technotrans, equinet Research

Our analysis: The strong growth in non-print applications and the improving profitability in Technology supports or investments case. Even more, the sequential margin expansion appears to be even faster than expected. We reckon this development should continue throughout the year and enable Technotrans to beat the current 2015 guidance (equinet EUR 122m, EBIT margin 7.2%).

After some extraordinary marketing costs next year associated with the drupa fair we expect margin expansion to proceed. We increased our estimates and expect Technotans now to reach an EBIT margin peak of 9.3% in 2019 (old: peak 8.7% in 2017). Driver will be Technology closing in on historical profitability level (2006 EBIT margin 8.6%) and increasing EBIT margin to 6.2% in 2019.

The increase in estimates led to an increase in our DCF based target price to EUR 20.00 (prior EUR 14.00).

Conclusion & Action: Technotrans showed a strong start in 2015. The high 30% growth in non-print applications and the further improving profitability of the Technology division supports our investment case. Due to the dynamic development we upgraded our estimates here regarding time frame and peak of the margin expansion. We confirm our Buy recommendation at an increased target price of EUR 20.00.

Analyst(s): Robert-Jan van der Horst +4969-58997-437 robert-jan.vanderhorst@equinet-ag.de

For important disclosure information, please refer to the disclaimer page of this report

Produced by: All ESN research is available on Bloomberg ("ESNR"), Thomson-Reuters, Capital IQ, FactSet

Distributed by the Members of ESN (see last page of this report)

Estimates revision

Due to the high profitability (EBIT margin 7.5%) of the traditionally weak Q1 was already above the guided range for the full year (EBIT margin 6.8%-7.2%) we revised our estimates:

Model changes
EUR m	2015e old	2015e new	2016e old	2016e new	2017e old		2017e new
Sales	121.7	121.7	133.1	133.1	145.5		145.5
Change		0.0%		0.0%		0.0%
EBIT	8.7	9.0	9.8	10.0	12.6		12.8
Change		2.9%		2.3%		1.2%
EPS	0.88	0.91	0.98	1.00	1.28		1.30
Change		3.4%		2.0%		1.6%

Source: equinet Research

The higher EBIT is solely contributed by the Technology division. Here, we expect a margin increase from 2.9% in 2015 (Q1/15 3.0%, 2014 0.6%) to 6.2% in 2019. We rate this conservative considering that Technotrans earned 8.9% EBIT margin on a comparable divisional top line level (2019e EUR 118m) prior to the print crisis (2006).

Service profitability should remain on high level of 16-17% (Q1/15 16.9%). However, 2016 and 2019 might be an exception due to higher marketing spending associated with the drupa fair, the world's largest printing equipment exhibition, held every three years.

Source: Technotrans, equinet Research

Discounted Cash Flow model

			Phase I					Phase II			Phase III
EUR m	2015	2016	2017	2018	2019	2020	2021	2022	2023	2024	2025
Sales	121.7	133.1	145.5	158.5	172.3	186.1	198.2	208.1	216.4	222.9	227.3
Sales growth	6.8%	9.4%	9.3%	8.9%	8.7%	8.0%	6.5%	5.0%	4.0%	3.0%	2.0%
EBIT	9.0	10.0	12.8	14.5	16.1	17.3	18.0	18.5	18.8	19.2	19.3
EBIT margin	7.4%	7.5%	8.8%	9.1%	9.3%	9.3%	9.1%	8.9%	8.7%	8.6%	8.5%
Tax	(2.6)	(3.0)	(3.8)	(4.4)	(4.9)	(5.2)	(5.4)	(5.6)	(5.6)	(5.8)	(5.8)
Tax rate	30.0%	30.0%	30.0%	30.0%	30.0%	30.0%	30.0%	30.0%	30.0%	30.0%	30.0%
NOPAT	6.4	7.0	9.0	10.1	11.2	12.1	12.6	13.0	13.2	13.4	13.5
Depreciation	2.7	2.5	2.5	2.7	2.9	3.2	3.5	3.8	4.0	4.3	4.5
in % of Sales	2.3%	1.9%	1.7%	1.7%	1.7%	1.7%	1.8%	1.8%	1.9%	1.9%	2.0%
Capex	(2.2)	(2.4)	(2.6)	(2.7)	(2.9)	(3.3)	(3.6)	(3.8)	(4.0)	(4.3)	(4.8)
in % of Sales	1.8%	1.8%	1.8%	1.7%	1.7%	1.8%	1.8%	1.9%	1.9%	1.9%	2.1%
Provision delta	0.0	0.0	0.0	0.0	0.0	0.0	0.0	0.0	0.0	0.0	0.0
in % of Sales	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%
Change in working capital	(1.0)	(0.8)	(1.5)	(1.9)	(2.7)	(3.0)	(3.1)	(3.1)	(3.2)	(3.3)	(3.2)
in % of Sales	0.8%	0.6%	1.0%	1.2%	1.6%	1.6%	1.6%	1.5%	1.5%	1.5%	1.4%
Other current assets delta in % of Sales	0.0 0.0%	0.0 0.0%	0.0 0.0%	0.0 0.0%	0.0 0.0%	0.0 0.0%	0.0 0.0%	0.0 0.0%	0.0 0.0%	0.0 0.0%	0.0 0.0%
Free Cash Flow	5.9	6.4	7.3	8.2	8.5	9.0	9.5	9.8	9.9	10.1	10.1
FCF growth	n/m	8.7%	14.5%	12.0%	3.7%	5.6%	5.4%	3.2%	1.6%	1.4%	0.4%
Present Value FCF	5.6	5.6	5.9	6.1	5.9	5.7	5.6	5.3	5.0	4.7	74.4
PV Phase I		29.2			MCap		95.6		Targ. equity ratio		60.0%
PV Phase II		26.3			Risk premium		4.00%		Beta		1.40
PV Phase III		74.4			Risk free rate		4.50%		WACC		8.30%
					EV 2013e				EV/EBIT 2013e
Enterprise value		129.8
- Interest bearing debt*		12.7			Sensitivity				Growth rate Phase III
+ Cash and liquid assets		17.2			Analysis		1.0%	1.5%	2.0%	2.5%	3.0%
- Minorities		3.5				7.89%	19.7	20.5	21.5	22.7	24.1
						8.09%	19.1	19.9	20.8	21.8	23.1
Implied Mcap		130.9			WACC	8.30%	18.5	19.2	20.1	21.1	22.2
Number of shares		6.5				8.51%	18.0	18.7	19.4	20.3	21.4
Implied value per share		20.08				8.72%	17.5	18.1	18.8	19.7	20.6

* Including pension provisions Source: equinet Research

Technotrans: Summary tables

PROFIT & LOSS (EURm)	12/2011	12/2012	12/2013	12/2014	12/2015e	12/2016e
Sales	97.3	90.7	105	112	122	133
Cost of Sales & Operating Costs	-89.3	-82.3	-97.4	-102	-110	-121
Non Recurrent Expenses/Income	0.0	0.0	0.0	0.0	0.0	0.0
EBITDA	8.0	8.3	7.8	9.9	11.7	12.5
EBITDA (adj.)*	8.0	8.3	7.8	9.9	11.7	12.5
Depreciation	-2.3	-1.9	-1.9	-1.7	-1.3	-1.2
EBITA	5.7	6.4	5.9	8.1	10.4	11.3
EBITA (adj)*	5.7	6.4	5.9	8.1	10.4	11.3
Amortisations and Write Downs	-0.9	-1.0	-1.3	-1.3	-1.4	-1.3
EBIT	4.8	5.4	4.6	6.8	9.0	10.0
EBIT (adj.)*	4.8	5.4	4.6	6.8	9.0	10.0
Net Financial Interest	-0.9	-0.7	-0.9	-0.6	-0.3	-0.1
Other Financials	0.0	0.0	0.0	0.0	0.0	0.0
Associates	0.0	0.0	0.0	0.0	0.0	0.0
Other Non Recurrent Items	0.0	0.0	0.0	0.0	0.0	0.0
Earnings Before Tax (EBT)	3.9	4.7	3.7	6.3	8.7	9.9
Tax	-0.9	-1.6	-0.8	-1.9	-2.6	-3.0
Tax rate	22.6%	33.8%	21.0%	29.5%	30.0%	30.0%
Discontinued Operations	0.0	0.0	0.0	0.0	0.0	0.0
Minorities	0.0	0.0	0.1	0.0	-0.2	-0.4
Net Profit (reported)	3.0	3.1	3.0	4.4	5.9	6.5
Net Profit (adj.)	3.0	3.1	3.0	4.4	5.9	6.5
CASH FLOW (EURm)	12/2011	12/2012	12/2013	12/2014	12/2015e	12/2016e
Cash Flow from Operations before change in NWC	4.7	7.5	5.4	10.6	8.8	9.4
Change in Net Working Capital	1.2	3.5	-2.7	-3.5	-1.0	-0.8
Cash Flow from Operations	5.9	11.0	2.7	7.1	7.8	8.6
Capex	-1.4	-1.4	-2.3	-1.4	-2.2	-2.4
Net Financial Investments	-0.9	3.6	-3.8	-0.9	0.0	0.0
Free Cash Flow	3.6	13.2	-3.4	4.8	5.6	6.3
Dividends	0.0	0.0	-0.8	-1.3	-2.1	-2.9
Other (incl. Capital Increase & share buy backs)	-5.5	-8.0	-1.8	-4.2	-0.7	-0.4
Change in Net Debt	-1.9	5.2	-6.0	-0.7	2.8	3.0
NOPLAT	3.4	3.7	3.2	4.8	6.3	7.0
BALANCE SHEET & OTHER ITEMS (EURm)	12/2011	12/2012	12/2013	12/2014	12/2015e	12/2016e
Net Tangible Assets	15.8	14.2	16.0	15.2	14.8	14.6
Net Intangible Assets (incl.Goodwill)	4.4	4.8	10.9	10.1	10.0	10.0
Net Financial Assets & Other	4.0	0.0	0.0	0.0	0.0	0.0
Total Fixed Assets	24.2	19.0	26.9	25.3	24.8	24.6
Inventories	14.0	13.5	14.3	15.4	16.7	18.0
Trade receivables	10.0	8.7	10.2	12.9	13.3	13.5
Other current assets	6.2	4.8	4.9	3.7	3.7	3.7
Cash (-)	-12.8	-18.7	-16.7	-17.2	-20.0	-23.0
Total Current Assets	43.0	45.7	46.2	49.3	53.7	58.2
Total Assets	67.2	64.7	73.0	74.5	78.5	82.8
Shareholders Equity	37.3	40.9	42.8	46.5	50.3	53.9
Minority	0.0	0.0	0.9	1.0	1.2	1.6
Total Equity	37.3	40.9	43.7	47.5	51.4	55.4
Long term interest bearing debt	6.8	6.4	11.6	8.3	7.8	7.5
Provisions	5.5	5.8	5.4	6.5	6.5	6.5
Other long term liabilities	3.7	4.2	4.1	3.7	3.7	3.7
Total Long Term Liabilities	16.0	16.4	21.2	18.5	18.0	17.7
Short term interest bearing debt	9.7	2.9	3.3	3.3	3.1	3.0
Trade payables	3.1	2.1	2.6	2.6	3.3	4.0
Other current liabilities	1.0	2.3	2.2	2.6	2.6	2.6
Total Current Liabilities	13.9	7.4	8.1	8.5	9.0	9.6
Total Liabilities and Shareholders' Equity	67.2	64.7	73.0	74.5	78.5	82.8
Net Capital Employed	50.3	41.5	51.5	52.0	52.5	53.2
Net Working Capital	19.9	17.7	20.6	23.7	24.7	25.5
GROWTH & MARGINS	12/2011	12/2012	12/2013	12/2014	12/2015e	12/2016e
Sales growth	13.2%	-6.8%	16.0%	6.8%	8.3%	9.4%
EBITDA (adj.)* growth	21.2%	4.2%	-6.1%	26.4%	18.9%	6.6%
EBITA (adj.) growth EBIT (adj)growth	43.5% 57.7%	12.3% 11.9%	-7.6% -13.6%	38.0% 47.6%	27.9% 31.8%	8.8% 10.9%

Technotrans: Summary tables

GROWTH & MARGINS	12/2011	12/2012	12/2013	12/2014	12/2015e	12/2016e
Net Profit growth	99.0%	2.5%	-2.5%	45.3%	35.1%	10.0%
EPS adj. growth	97.4%	1.4%	-3.0%	45.3%	34.6%	10.0%
DPS adj. growth		n.m.	67.4%	63.6%	36.9%	11.1%
EBITDA (adj)* margin	8.2%	9.2%	7.4%	8.8%	9.7%	9.4%
EBITA (adj)* margin	5.8%	7.0%	5.6%	7.2%	8.6%	8.5%
EBIT (adj)* margin	4.9%	5.9%	4.4%	6.1%	7.4%	7.5%
RATIOS	12/2011	12/2012	12/2013	12/2014	12/2015e	12/2016e
Net Debt/Equity	0.1	-0.2	0.0	-0.1	-0.2	-0.2
Net Debt/EBITDA	0.5	-1.1	-0.2	-0.6	-0.8	-1.0
Interest cover (EBITDA/Fin.interest)	9.0	12.2	8.8	17.4	41.2	n.m.
Capex/D&A	44.0%	48.2%	73.5%	47.2%	81.8%	92.9%
Capex/Sales	1.4%	1.6%	2.2%	1.3%	1.8%	1.8%
NWC/Sales	20.4%	19.5%	19.6%	21.1%	20.3%	19.2%
ROE (average)	8.5%	7.9%	7.2%	9.8%	12.2%	12.5%
ROCE (adj.)	8.4%	10.2%	6.8%	9.8%	12.7%	14.0%
WACC	8.3%	8.3%	8.3%	8.3%	8.3%	8.3%
ROCE (adj.)/WACC	1.0	1.2	0.8	1.2	1.5	1.7
PER SHARE DATA (EUR)***	12/2011	12/2012	12/2013	12/2014	12/2015e	12/2016e
Average diluted number of shares	6.4	6.4	6.5	6.5	6.5	6.5
EPS (reported)	0.47	0.48	0.47	0.68	0.91	1.00
EPS (adj.)	0.47	0.48	0.47	0.68	0.91	1.00
BVPS	5.86	6.35	6.62	7.19	7.74	8.30
DPS	0.00	0.12	0.20	0.33	0.45	0.50
VALUATION	12/2011	12/2012	12/2013	12/2014	12/2015e	12/2016e
EV/Sales	0.3	0.4	0.5	0.5	0.7	0.7
EV/EBITDA	3.5	4.3	6.4	6.0	7.8	7.0
EV/EBITDA (adj.)*	3.5	4.3	6.4	6.0	7.8	7.0
EV/EBITA	4.9	5.7	8.5	7.3	8.8	7.8
EV/EBITA (adj.)*	4.9	5.7	8.5	7.3	8.8	7.8
EV/EBIT	5.8	6.7	10.8	8.6	10.1	8.8
EV/EBIT (adj.)*	5.8	6.7	10.8	8.6	10.1	8.8
P/E (adj.)	8.9	14.4	16.5	13.7	16.1	14.6
P/BV	0.7	1.1	1.2	1.3	1.9	1.8
Total Yield Ratio	1.2%	1.7%	2.6%	2.2%	3.1%	3.4%
EV/CE	0.7	1.0	1.1	1.2	1.8	1.8
OpFCF yield	16.5%	21.4%	0.7%	9.5%	5.9%	6.6%
OpFCF/EV	16.0%	26.4%	0.7%	9.6%	6.1%	7.2%
Payout ratio Dividend yield (gross)	0.0% 0.0%	25.0% 1.7%	43.1% 2.6%	48.5% 2.2%	49.4% 3.1%	49.8% 3.4%
EV AND MKT CAP (EURm)	12/2011	12/2012	12/2013	12/2014	12/2015e	12/2016e
Price** (EUR)	4.24	6.93	7.71	9.28	14.67	14.67
Outstanding number of shares for main stock	6.4	6.4	6.5	6.5	6.5	6.5
Total Market Cap	27	45	50	60	96	96
Net Debt	4	-9	-2	-6	-9	-12
o/w Cash & Marketable Securities (-)	-13	-19	-17	-17	-20	-23
o/w Gross Debt (+)	17	9	15	12	11	11
Other EV components Enterprise Value (EV adj.)	-3 28	1 36	2 50	5 59	5 91	5 88

Source: Company, Equinet Bank estimates.

Notes

* Where EBITDA (adj.) or EBITA (adj)= EBITDA (or EBITA) -/+ Non Recurrent Expenses/Income and where EBIT (adj)= EBIT-/+ Non Recurrent Expenses/Income - PPA amortisation **Price (in local currency): Fiscal year end price for Historical Years and Current Price for current and forecasted years

Sector: Industrial Engineering/Industrial Engineering

Company Description: technotrans is a world-leading systems supplier in the area of liquid technology. In the Technology segment (60% of revenue), the company develops, manufactures and sells systems and components that control and monitor processes in this area. The company is currently still focused mainly on customers from the printing press industry (approx. 65% of segment's revenue). However, in recent years the company has taken a variety of measures (internal developments, acquisitions) to tap into new areas of application outside its core business (e.g. in laser technology, machine tools) and is steadily increasing its presence there. In the Services segment (40% of revenue), technotrans provides a wide range of services on behalf of customers.

Recommendations and Disclosures

2G Energy Schäf er 34.00 Buy 2/ 3/ 5 Kont ron van der Horst 8.50 Buy 4SC Miemiet z 3.60 Buy 7 Krones AG Rau 87.00 Reduce Aareal Bank Häßler 41.00 Neut ral KTG Agrar Schäf er 23.00 Buy Adler Modemaerkt e Faust 13.00 Neut ral 7 KUKA Rau 61.00 Reduce Ad pepper Bast 1.40 Buy 2/ 3 Lanxess Schäf er 54.00 Neut ral adidas Faust 85.00 Buy Leoni Rau, Schmidt 74.00 Buy Aixt ron Pehl 7.00 Neut ral 2/ 3 Linde Schäf er 160.00 Neut ral Allianz Häßler 160.00 Accumulat e Logwin Rot henbacher 1.75 Buy Axel Springer Bast 55.00 Neut ral Luf t hansa Rot henbacher 14.00 Accumulat e BASF Schäf er 95.00 Accumulat e Manz AG van der Horst 120.00 Buy Bayer Miemiet z 111.00 Reduce MAX Aut omat ion AG Rau 5.00 Accumulat e BayWa Schäf er 42.00 Buy 5 Merck Miemiet z 66.50 Neut ral BB Biot ech Miemiet z 288.00 Accumulat e 7 Met ro Faust 34.00 Neut ral Beiersdorf Schäf er 64.00 Sell MLP Häßler 4.00 Accumulat e Berent zen Faust 5.00 Neut ral 2/ 3 MTU Pehl 90.00 Neut ral Bilf inger SE Faust 45.00 Sell Munich Re Häßler 165.00 Reduce Biot est Miemiet z 97.00 Buy 2/ 3 Nanogat e AG van der Horst 52.00 Buy BMW Schmidt 125.00 Accumulat e Orad Bast 5.00 Buy Celesio Lieder 23.50 Neut ral Osram Licht AG Jäkel 41.00 Reduce Cenit Pehl 20.00 Buy 2/ 3 OVB Holding AG Häßler 19.50 Accumulat e comdirect Häßler 9.50 Neut ral Pat rizia AG Häßler 16.00 Neut ral Commerzbank Häßler 13.00 Neut ral Pf eif f er Vacuum Pehl 78.00 Neut ral Cont inent al Schmidt 260.00 Buy Post bank Häßler 40.00 Accumulat e Cyt ot ools AG Miemiet z 58.00 Accumulat e 2/ 3 PSI Schäf er 13.00 Buy Daimler AG Schmidt 108.00 Buy Puma Faust 150.00 Sell Daldrup & Soehne Schäf er 15.00 Accumulat e 2/ 3/ 5 Rheinmet all Rau 56.00 Buy Deut sche Bank Häßler 30.00 Neut ral Rhoen-Klinikum Lieder 27.00 Accumulat e Deut sche Boerse Häßler 70.00 Neut ral RIB Sof t ware Rot henbacher 17.00 Buy 2/ Deut sche EuroShop Rot henbacher 42.00 Reduce RWE Schäf er 25.00 Neut ral Deut sche Forf ait Häßler Suspended Rat ing Suspended 2/ 3/ 4/ 5 SAF-Holland Rau 13.60 Buy Deut sche Post Rot henbacher 30.00 Neut ral Seven Principles AG Pehl 3.70 Buy Deut sche Telekom Pehl Under review Reduce Siegf ried Holding AG Miemiet z 192.00 Buy Deut z AG Schmidt 3.50 Reduce Singulus Technologies van der Horst 1.20 Rat ing Suspended DMG Mori Seiki AG Rau 37.00 Buy SLM Solut ions Pehl 26.00 Buy Draegerwerk Jäkel Under review Under review SMT Scharf AG Schmidt 14.00 Neut ral Drillisch Pehl 50.00 Accumulat e Sof t ware AG Orzelek 26.00 Neut ral E.ON Schäf er 14.00 Neut ral STO SE & Co. KGaA Lieder 169.00 Neut ral Elmos Semiconduct or van der Horst 21.00 Buy Suess MicroTec Pehl 6.00 Accumulat e ElringKlinger Schmidt 25.00 Neut ral Surt eco Lieder 30.00 Buy Epigenomics AG Miemiet z 6.72 Buy 2/ 3/ 5 Symrise AG Schäf er 36.00 Neut ral Euromicron AG Pehl Suspended Rat ing Suspended 2/ 3 Syzygy AG Lieder / Pehl 8.60 Buy Evonik Schäf er 34.00 Accumulat e Talanx Group Häßler 28.00 Neut ral Ferrat um Häßler 29.00 Buy 5 Technot rans van der Horst 20.00 Buy Fielmann Lieder 55.00 Neut ral TUI Rot henbacher 17.00 Neut ral Fraport Rot henbacher 61.00 Accumulat e Unit ed Int ernet Pehl 45.00 Accumulat e Freenet Pehl 35.00 Buy 2 Uzin Ut z Lieder 31.00 Accumulat e Fresenius Lieder 60.00 Accumulat e VBH Holding Faust 2.80 Neut ral Fresenius Medical Care Lieder 73.00 Neut ral VIB Vermoegen Rot henbacher 14.50 Neut ral Fuchs Pet rolub Schäf er 28.00 Reduce Viscom van der Horst 17.50 Buy GEA Group Rau 51.00 Buy Volkswagen Schmidt 230.00 Neut ral Gerresheimer AG Lieder 45.00 Neut ral Vossloh Rau 70.00 Buy Gerry Weber Faust 34.00 Neut ral Wilex Miemiet z 5.52 Buy Gesco Rau 68.00 Neut ral 2/ 3 Wincor Nixdorf Pehl 36.00 Neut ral GFT Technologies Orzelek 19.50 Accumulat e 2/ 3 Zumt obel Group AG Jäkel 28.00 Buy Gigaset Pehl 0.90 Accumulat e 2/ 3/ 4/ 5 Grand Cit y Propert ies Häßler 17.00 Accumulat e Grenkeleasing AG Häßler 130.00 Accumulat e Hannover Re Häßler 65.00 Sell Heidelberger Druck Rau 3.40 Buy Henkel Schäf er 82.00 Neut ral HHLA Rot henbacher 18.00 Reduce Hocht ief Faust 75.00 Neut ral Hugo Boss Faust 100.00 Reduce i:FAO AG Rot henbacher 18.00 Buy 2/ 3 Jenopt ik van der Horst 12.50 Buy Joyou AG Lieder Under review Under review 2/ 3 K+S AG Schäf er 42.00 Buy	Coverage	Analyst	Target	Rating	Disc.	Coverage	Analyst	Target	Rating	Disc.
										2/ 3/ 5
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Remarks

Recommendation System

Buy - The stock is expected to generate a total return of over 20% during the next 12 months time horizon. Accumulate - The stock is expected to generate a total return of 10% to 20% during the next 12 months time horizon. Hold - The stock is expected to generate a total return of 0% to 10% during the next 12 months time horizon Reduce - The stock is expected to generate a total return of 0 to -10% during the next 12 months time horizon Sell - The stock is expected to generate a total return below -10% during the next 12 months time horizon

Basis of Valuation

Equinet Bank uses for valuation purposes primarily DCF-Valuations and Sum-Of-The-Parts-Valuations as well as peer group comparisons.

Share prices

Share prices in this analysis are the German closing prices of the last trading day before the publication.

Sources

Equinet Bank has made any effort to carefully research all information contained in the analysis. The information on which the analysis is based has been obtained from sources which we believe to be reliable such as, for example, Reuters, Bloomberg and the relevant press as well as the company which is the subject of the analysis. Only that part of the research note is made available to the issuer, who is the subject of the analysis, which is necessary to properly reconcile with the facts. Should this result in considerable changes a reference is made in the research note.

Actualizations

Opinions expressed in this analysis are our current opinions as of the issuing date indicated on this document. We do not commit ourselves in advance to whether and in which intervals updates are made.

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Recommendation history for TECHNOTRANS

Date	Recommendation	Target price	Price at change date
08. Mai 15	Buy	20.00	14.67
10. Mrz 15	Buy	14.00	11.69

Source: Factset & ESN, price data adjusted for stock splits.

This chart shows Equinet Bank continuing coverage of this stock; the current analyst may or may not have covered it over the entire period. Current analyst: Robert-Jan van der Horst (since 06/03/2015)

ESN Recommendation System

The ESN Recommendation System is Absolute. It means that each stock is rated on the basis of a total return, measured by the upside potential (including dividends and capital reimbursement) over a 12 month time horizon.

Technotrans

REDUCE	NEUTRAL		EXAMPLE ACCUMULATE:
	5%	5%	15%

The ESN spectrum of recommendations (or ratings) for each stock comprises 5 categories: Buy (B), Accumulate (A), Neutral (N), Reduce (R) and Sell (S).

Furthermore, in specific cases and for a limited period of time, the analysts are allowed to rate the stocks as Rating Suspended (RS) or Not Rated (NR), as explained below.

Meaning of each recommendation or rating:

• Buy: the stock is expected to generate total return of over 15% during the next 12 months time horizon
• Accumulate: the stock is expected to generate total return of 5% to 15% during the next 12 months time horizon
• Neutral: the stock is expected to generate total return of -5% to +5% during the next 12 months time horizon
• Reduce: the stock is expected to generate total return of -5% to -15% during the next 12 months time horizon
• Sell: the stock is expected to generate total return under -15% during the next 12 months time horizon
• Rating Suspended: the rating is suspended due to a change of analyst covering the stock or a capital operation (take-over bid, SPO, …) where the issuer of the document (a partner of ESN) or a related party of the issuer is or could be involved
• Not Rated: there is no rating for a company being floated (IPO) by the issuer of the document (a partner of ESN) or a related party of the issuer

Certain flexibility on the limits of total return bands is permitted especially during higher phases of volatility on the markets

Equinet Bank Ratings Breakdown

History of ESN Recommendation System

Since 1 April 2015, the ESN Rec. System has been amended as follows:

• The term "Hold" has been replaced by the term "Neutral"
• Recommendations Total Return Range changed as showed in the picture at the start of the page Since 4 August 2008 until 30 March 2015, the previous ESN Rec. System was amended as follow.
• Time horizon changed to 12 months (previously it was 6 months)
• Recommendations Total Return Range changed (see below):

SELL	REDUCE	HOLD	ACCUMULATE	BUY
	-10%	0% 10%	20%
	Since 18 October 2004, the Members of ESN are using an Absolute Recommendation System (before
	was a Relative Rec. System) to rate any single stock under coverage.
SELL	REDUCE	HOLD	ACCUMULATE	BUY

SELL	REDUCE	HOLD	ACCUMULATE		BUY
	-15%	0%	5%	15%

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ESN, its Members and their affiliates may submit a pre-publication draft (without mentioning neither the recommendation nor the target price/fair value) of its reports for review to the Investor Relations Department of the issuer forming the subject of the report, solely for the purpose of correcting any inadvertent material inaccuracies. Like all members employees, analysts receive compensation that is impacted by overall firm profitability For further details about the specific risks of the company and about the valuation methods used to determine the price targets included in this report/note, please refer to the latest relevant published research on single stock or contact the analyst named on the front of the report/note. Research is available through your sales representative. ESN will provide periodic updates on companies or sectors based on company-specific developments or announcements, market conditions or any other publicly available information. Unless agreed in writing with an ESN Member, this research is intended solely for internal use by the recipient. Neither this document nor any copy of it may be taken or transmitted into Australia, Canada or Japan or distributed, directly or indirectly, in Australia, Canada or Japan or to any resident thereof. This document is for distribution in the U.K. Only to persons who have professional experience in matters relating to investments and fall within article 19(5) of the financial services and markets act 2000 (financial promotion) order 2005 (the "order") or (ii) are persons falling within article 49(2)(a) to (d) of the order, namely high net worth companies, unincorporated associations etc (all such persons together being referred to as "relevant persons"). This document must not be acted on or relied upon by persons who are not relevant persons. Any investment or investment activity to which this document relates is available only to relevant persons and will be engaged in only with relevant persons.

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