CANCOM SE — Investor Presentation 2011

Sep 12, 2011

CANCOM AG Germany - IT Services

Buy (old: Buy)				12-September-11
	Price target: EUR 16.00	(old: EUR 16.00)		Tim Wunderlich Analyst
Price:	EUR 7.42	Next result:	Q3 2011: 10.11.11
Bloomberg:	COK GR	Market cap:	EUR 76.2 m	tim.wunderlich@ha-research.de
Reuters:	COKG.DE	Enterprise Value:	EUR 65.1 m	Tel.: +49 40 4143885 81

Roadshow Feedback: No weakness in sight

• We had a Roadshow with CANCOM's CEO Weinmann and IR Rosenfeld to Frankfurt/Main on Friday, September 9.
• The meetings made it clear that CANCOM's operating performance remains sound and that the company sees no weakness in the IT Hardware/Service market in Germany (c. 90% of sales) currently. For example, in the first two months of Q3 '11 group order intake was almost 10% above company-internal expectations. For Q3 '11 we expect sales growth of c. 7% y-o-y to c. € 131m even though Q3 '10 presents a very strong and hence challenging base.
• Acquisitions: CANCOM plans to acquire € 200m sales in the next 2 years. In light of the company's record of value-accretive integration of targets, this should be highly positive for profitability given better purchasing power and economies of scale in admin, logistics etc. In our view, € 200m additional sales should translate into € 6-8m additional EBIT. What's more: Take-over prices are dropping as companies fear a deceleration of growth. Hence, CANCOM should need to pay no more than € 12-15m for the incremental sales, implying a maximum acquisition multiple of 2.5x EBIT.
• CANCOM has initiated a program to reduce OpEx: For example it plans to axe low performers in sales & marketing and switch from catalogue marketing to online marketing. All in all it expects € 3m in annual savings from this at a one-time cost of c. € 1.0m. The action is taken NOT because there are signs of a downturn but simply to further optimise the cost base. However, if a slump were to materialise this would certainly protect the bottom-line next year.
• Management confirmed it would be buyers of the shares if the share price were to drop further. CEO Weinmann has recently bought a few shares at c. € 7 meant as a signal for capital markets that management remains firm believers in the prospects of the company.
• Don't forget, at these depressed multiples a take-over of CANCOM could also become attractive again for e.g. Nordic rival Atea which is looking to enter Germany or German rival Bechtle aiming at strengthening its domestic position.
• Overall, the roadshow boosts confidence in the investment case. Remains a BUY with a price target of € 16.00 based on DCF and supported by FCFY 2012E.

Y/E 31.12 (EUR m)	2007	2008	2009	2010	2011E	2012E	2013E
Sales	300.1	342.8	348.3	474.6	530.1	564.0	589.4
Sales growth	13 %	14 %	2 %	36 %	12 %	6 %	5 %
EBITDA	8.0	7.8	9.5	19.0	25.0	27.7	29.0
EBIT	6.2	5.6	7.1	15.2	19.0	21.2	22.4
Net income	4.7	2.7	5.1	7.8	11.4	13.0	14.0
Net debt	6.2	3.9	-3.5	-0.9	-11.1	-21.7	-33.3
Net gearing	17.2 %	9.9 %	-8.0 %	-1.8 %	-18.3 %	-30.3 %	-40.1 %
Net Debt/EBITDA	0.8	0.5	0.0	0.0	0.0	0.0	0.0
EPS fully diluted	0.45	0.26	0.49	0.76	1.10	1.25	1.35
CPS	0.40	1.05	0.80	1.25	0.94	1.29	1.40
DPS	0.00	0.00	0.15	0.15	0.22	0.25	0.27
Dividend yield	0.0 %	0.0 %	2.0 %	2.0 %	3.0 %	3.4 %	3.6 %
Gross profit margin	28.8 %	29.9 %	31.0 %	29.3 %	29.1 %	29.4 %	29.5 %
EBITDA margin	2.7 %	2.3 %	2.7 %	4.0 %	4.7 %	4.9 %	4.9 %
EBIT margin	2.1 %	1.6 %	2.0 %	3.2 %	3.6 %	3.8 %	3.8 %
ROCE	10.6 %	8.9 %	10.5 %	19.5 %	21.2 %	21.1 %	20.1 %
EV/sales	0.3	0.2	0.2	0.2	0.1	0.1	0.1
EV/EBITDA	10.4	10.4	7.7	4.0	2.6	2.0	1.5
EV/EBIT	13.5	14.4	10.3	5.0	3.4	2.6	1.9
PER	15.9	24.3	15.4	8.1	6.8	5.9	5.5
Adjusted FCF yield	6.8 %	5.5 %	8.3 %	15.4 %	24.9 %	33.6 %	45.6 %

Source: Company data, Hauck & Aufhäuser Close price as of: 09.09.2011

Source: Company data, Hauck & Aufhäuser

High/low 52 weeks:	11.40 / 6.74
Price/Book Ratio:	1.3
Relative performance (TecDAX):
3 months	4.1 %
6 months	-0.9 %
12 months	6.6 %

Changes in estimates

		Sales	EBIT	EPS
old: 2011		530.1	19.0	1.10
∆	-	-	-
	old:	564.0	21.2	1.25
2012	∆	-	-	-
2013	old:	589.4	22.4	1.35
	∆	-	-	-

Key share data:

Number of shares: (in m pcs)	10.4
Authorised capital: (in € m)	4.0
Book value per share: (in €)	5.9
Ø trading volume: (12 months)	60,000

Major shareholders:

Free Float	84.8 %
JP Morgan	5.3 %
AGI	3.0 %
Stefan Kober	2.5 %
Raymond Kober	2.5 %
Klaus Weinmann	1.9 %

Company description:

CANCOM is Germany's 3rd largest independent system house operating a scalable eCommerce business.

Financials

Profit and loss (EUR m)	2007	2008	2009	2010	2011E	2012E	2013E
Net sales	300.1	342.8	348.3	474.6	530.1	564.0	589.4
Sales growth	13.2 %	14.2 %	1.6 %	36.2 %	11.7 %	6.4 %	4.5 %
Increase/decrease in finished goods and work-in-process	0.9	0.3	1.0	1.3	1.0	1.0	1.0
Total sales	301.0	343.1	349.3	475.8	531.1	565.0	590.4
Other operating income	1.5	0.3	2.3	3.3	2.1	2.2	2.3
Material expenses	214.2	240.7	241.1	336.3	376.5	398.9	416.1
Personnel expenses	59.0	71.0	79.2	97.0	102.0	109.8	115.4
Other operating expenses	21.2	24.0	21.8	26.8	29.7	30.8	32.2
Total operating expenses	293.0	335.3	339.8	456.8	506.1	537.3	561.4
EBITDA	8.0	7.8	9.5	19.0	25.0	27.7	29.0
Depreciation	1.4	2.2	2.4	3.8	3.4	3.7	3.6
EBITA	6.6	5.6	7.1	15.2	21.6	24.0	25.4
Amortisation of goodwill	0.0	0.0	0.0	0.0	0.0	0.0	0.0
Amortisation of intangible assets	0.5	0.0	0.0	0.0	2.6	2.8	3.0
Impairment charges	0.0	0.0	0.0	0.0	0.0	0.0	0.0
EBIT	6.2	5.6	7.1	15.2	19.0	21.2	22.4
Interest income	0.2	0.3	0.2	0.1	0.2	0.2	0.3
Interest expenses	1.0	1.4	1.3	1.9	2.7	2.7	2.7
Other financial result	0.0	-0.1	0.0	0.0	-0.2	-0.1	0.0
Financial result	-0.9	-1.2	-1.1	-1.8	-2.6	-2.5	-2.4
Recurring pretax income from continuing operations	5.3	4.4	5.9	13.3	16.4	18.7	20.0
Extraordinary income/loss	0.0	0.0	0.0	0.0	0.0	0.0	0.0
Earnings before taxes	5.3	4.4	5.9	13.3	16.4	18.7	20.0
Taxes	-0.1	1.3	0.9	3.7	4.9	5.6	6.0
Net income from continuing operations	5.4	3.2	5.0	9.6	11.5	13.1	14.0
Result from discontinued operations (net of tax)	0.2	0.5	-0.1	1.7	0.0	0.0	0.0
Net income	5.2	2.7	5.1	7.9	11.5	13.1	14.0
Minority interest	0.5	0.0	0.0	0.1	0.1	0.1	0.0
Net income (net of minority interest)	4.7	2.7	5.1	7.8	11.4	13.0	14.0
Average number of shares	10.4	10.4	10.4	10.3	10.4	10.4	10.4
EPS reported	0.45	0.26	0.49	0.76	1.10	1.25	1.35

Profit and loss (common size)	2007	2008	2009	2010	2011E	2012E	2013E
Net sales	100.0 %	100.0 %	100.0 %	100.0 %	100.0 %	100.0 %	100.0 %
Increase/decrease in finished goods and work-in-process	0.3 %	0.1 %	0.3 %	0.3 %	0.2 %	0.2 %	0.2 %
Total sales	100.3 %	100.1 %	100.3 %	100.3 %	100.2 %	100.2 %	100.2 %
Other operating income	0.5 %	0.1 %	0.6 %	0.7 %	0.4 %	0.4 %	0.4 %
Material expenses	71.4 %	70.2 %	69.2 %	70.9 %	71.0 %	70.7 %	70.6 %
Personnel expenses	19.7 %	20.7 %	22.7 %	20.4 %	19.2 %	19.5 %	19.6 %
Other operating expenses	7.1 %	7.0 %	6.3 %	5.7 %	5.6 %	5.5 %	5.5 %
Total operating expenses	97.6 %	97.8 %	97.6 %	96.3 %	95.5 %	95.3 %	95.2 %
EBITDA	2.7 %	2.3 %	2.7 %	4.0 %	4.7 %	4.9 %	4.9 %
Depreciation	0.5 %	0.6 %	0.7 %	0.8 %	0.6 %	0.7 %	0.6 %
EBITA	2.2 %	1.6 %	2.0 %	3.2 %	4.1 %	4.3 %	4.3 %
Amortisation of goodwill	0.0 %	0.0 %	0.0 %	0.0 %	0.0 %	0.0 %	0.0 %
Amortisation of intangible assets	0.2 %	0.0 %	0.0 %	0.0 %	0.5 %	0.5 %	0.5 %
Impairment charges	0.0 %	0.0 %	0.0 %	0.0 %	0.0 %	0.0 %	0.0 %
EBIT	2.1 %	1.6 %	2.0 %	3.2 %	3.6 %	3.8 %	3.8 %
Interest income	0.1 %	0.1 %	0.0 %	0.0 %	0.0 %	0.0 %	0.0 %
Interest expenses	0.3 %	0.4 %	0.4 %	0.4 %	0.5 %	0.5 %	0.5 %
Other financial result	0.0 %	0.0 %	0.0 %	0.0 %	0.0 %	0.0 %	0.0 %
Financial result	-0.3 %	-0.4 %	-0.3 %	-0.4 %	-0.5 %	-0.4 %	-0.4 %
Recurring pretax income from continuing operations	1.8 %	1.3 %	1.7 %	2.8 %	3.1 %	3.3 %	3.4 %
Extraordinary income/loss	0.0 %	0.0 %	0.0 %	0.0 %	0.0 %	0.0 %	0.0 %
Earnings before taxes	1.8 %	1.3 %	1.7 %	2.8 %	3.1 %	3.3 %	3.4 %
Tax rate	-1.1 %	28.3 %	15.6 %	28.1 %	30.0 %	30.0 %	30.0 %
Net income from continuing operations	1.8 %	0.9 %	1.4 %	2.0 %	2.2 %	2.3 %	2.4 %
Income from discontinued operations (net of tax)	0.1 %	0.1 %	0.0 %	0.4 %	0.0 %	0.0 %	0.0 %
Net income	1.7 %	0.8 %	1.5 %	1.7 %	2.2 %	2.3 %	2.4 %
Minority interest	0.2 %	0.0 %	0.0 %	0.0 %	0.0 %	0.0 %	0.0 %
Net income (net of minority interest)	1.6 %	0.8 %	1.5 %	1.6 %	2.2 %	2.3 %	2.4 %

Balance sheet (EUR m)	2007	2008	2009	2010	2011E	2012E	2013E
Intangible assets	25.7	28.3	31.5	42.5	38.9	38.1	37.1
Property, plant and equipment	3.0	5.4	6.5	9.7	9.8	9.6	9.5
Financial assets	0.2	3.5	0.2	3.2	3.2	3.2	3.2
FIXED ASSETS	28.9	37.3	38.2	55.4	51.9	50.9	49.8
Inventories	8.6	10.1	12.6	13.4	14.3	15.2	15.9
Accounts receivable	39.3	44.2	47.2	68.0	71.2	75.7	79.1
Other current assets	1.5	6.3	5.1	6.4	6.4	6.4	6.4
Liquid assets	11.8	18.3	25.8	31.5	41.7	52.2	63.8
Deferred taxes	3.1	2.5	2.6	0.7	0.7	0.7	0.7
Deferred charges and prepaid expenses	7.4	2.1	3.4	2.0	2.0	2.0	2.0
CURRENT ASSETS	71.5	83.4	96.7	122.0	136.4	152.3	168.0
TOTAL ASSETS	100.4	120.7	134.9	177.4	188.3	203.3	217.9
SHAREHOLDERS EQUITY	36.3	38.9	43.9	50.9	60.8	71.5	83.0
MINORITY INTEREST	0.0	0.0	0.0	0.1	0.1	0.2	0.2
Long-term debt	16.1	20.3	21.6	29.0	29.0	29.0	29.0
Provisions for pensions and similar obligations	0.2	0.2	0.0	0.1	0.1	0.1	0.1
Other provisions	7.9	3.2	4.3	3.2	3.2	3.2	3.2
Non-current liabilities	24.1	23.6	26.0	32.2	32.2	32.2	32.2
short-term liabilities to banks	1.9	1.8	0.7	1.6	1.6	1.6	1.6
Accounts payable	27.5	39.3	47.9	64.4	65.4	69.5	72.7
Advance payments received on orders	0.8	2.0	1.1	1.5	1.5	1.5	1.5
Other liabilities (incl. from lease and rental contracts)	6.6	12.6	10.7	16.3	16.3	16.3	16.3
Deferred taxes	0.7	1.3	2.0	4.3	4.3	4.3	4.3
Deferred income	2.5	1.2	2.7	6.0	6.0	6.0	6.0
Current liabilities	40.0	58.1	65.0	94.2	95.1	99.3	102.4
TOTAL LIABILITIES AND SHAREHOLDERS EQUITY	100.4	120.7	134.9	177.4	188.3	203.3	217.9

Balance sheet (common size)	2007	2008	2009	2010	2011E	2012E	2013E
Intangible assets	25.6 %	23.5 %	23.4 %	24.0 %	20.7 %	18.8 %	17.0 %
Property, plant and equipment	3.0 %	4.5 %	4.8 %	5.5 %	5.2 %	4.7 %	4.4 %
Financial assets	0.2 %	2.9 %	0.1 %	1.8 %	1.7 %	1.6 %	1.5 %
FIXED ASSETS	28.8 %	30.9 %	28.3 %	31.2 %	27.6 %	25.1 %	22.9 %
Inventories	8.5 %	8.4 %	9.3 %	7.5 %	7.6 %	7.5 %	7.3 %
Accounts receivable	39.1 %	36.6 %	35.0 %	38.3 %	37.8 %	37.2 %	36.3 %
Other current assets	1.5 %	5.2 %	3.8 %	3.6 %	3.4 %	3.2 %	3.0 %
Liquid assets	11.7 %	15.1 %	19.2 %	17.7 %	22.1 %	25.7 %	29.3 %
Deferred taxes	3.1 %	2.1 %	1.9 %	0.4 %	0.4 %	0.3 %	0.3 %
Deferred charges and prepaid expenses	7.3 %	1.7 %	2.5 %	1.1 %	1.1 %	1.0 %	0.9 %
CURRENT ASSETS	71.2 %	69.1 %	71.7 %	68.8 %	72.4 %	74.9 %	77.1 %
TOTAL ASSETS	100.0 %	100.0 %	100.0 %	100.0 %	100.0 %	100.0 %	100.0 %
SHAREHOLDERS EQUITY	36.1 %	32.3 %	32.5 %	28.7 %	32.3 %	35.2 %	38.1 %
MINORITY INTEREST	0.0 %	0.0 %	0.0 %	0.0 %	0.1 %	0.1 %	0.1 %
Long-term debt	16.0 %	16.9 %	16.0 %	16.3 %	15.4 %	14.2 %	13.3 %
Provisions for pensions and similar obligations	0.2 %	0.1 %	0.0 %	0.0 %	0.0 %	0.0 %	0.0 %
Other provisions	7.9 %	2.6 %	3.2 %	1.8 %	1.7 %	1.6 %	1.5 %
Non-current liabilities	24.0 %	19.6 %	19.3 %	18.2 %	17.1 %	15.9 %	14.8 %
short-term liabilities to banks	1.9 %	1.5 %	0.5 %	0.9 %	0.9 %	0.8 %	0.7 %
Accounts payable	27.4 %	32.5 %	35.5 %	36.3 %	34.7 %	34.2 %	33.4 %
Advance payments received on orders	0.8 %	1.6 %	0.8 %	0.9 %	0.8 %	0.8 %	0.7 %
Other liabilities (incl. from lease and rental contracts)	6.6 %	10.4 %	7.9 %	9.2 %	8.6 %	8.0 %	7.5 %
Deferred taxes	0.7 %	1.1 %	1.5 %	2.4 %	2.3 %	2.1 %	2.0 %
Deferred income	2.5 %	1.0 %	2.0 %	3.4 %	3.2 %	3.0 %	2.8 %
Current liabilities	39.9 %	48.2 %	48.2 %	53.1 %	50.5 %	48.8 %	47.0 %
TOTAL LIABILITIES AND SHAREHOLDERS EQUITY	100.0 %	100.0 %	100.0 %	100.0 %	100.0 %	100.0 %	100.0 %

Cash flow statement (EUR m)	2007	2008	2009	2010	2011E	2012E	2013E
Net profit/loss	5.2	2.7	5.1	7.9	11.5	13.1	14.0
Depreciation of fixed assets (incl. leases)	1.4	2.2	2.4	3.8	3.4	3.7	3.6
Amortisation of goodwill	0.0	0.0	0.0	0.0	0.0	0.0	0.0
Amortisation of intangible assets	0.5	0.0	0.0	0.0	2.6	2.8	3.0
Others	0.0	-10.8	-0.6	3.0	0.0	0.0	0.0
Cash flow from operations before changes in w/c	7.0	-6.0	6.9	14.7	17.5	19.6	20.6
Increase/decrease in inventory	0.2	0.9	-0.9	0.3	-1.0	-0.9	-0.7
Increase/decrease in accounts receivable	-3.5	4.4	0.8	-15.2	-3.2	-4.5	-3.4
Increase/decrease in accounts payable	1.3	4.3	2.7	17.1	0.9	4.2	3.1
Increase/decrease in other working capital positions	1.0	9.5	1.1	0.0	0.0	0.0	0.0
Increase/decrease in working capital	-1.1	19.0	3.8	2.2	-3.2	-1.3	-1.0
Cash flow from operating activities	6.0	13.1	10.7	16.9	14.3	18.3	19.7
CAPEX	4.2	3.0	4.7	8.1	5.5	5.5	5.5
Payments for acquisitions	4.7	6.6	0.4	10.5	0.0	0.0	0.0
Financial investments	-0.1	-0.3	-0.2	-0.1	0.0	0.0	0.0
Income from asset disposals	3.5	8.1	2.3	1.1	3.0	0.0	0.0
Cash flow from investing activities	-5.4	-1.2	-2.6	-17.3	-2.5	-5.5	-5.5
Cash flow before financing	0.6	11.9	8.0	-0.4	11.8	2.3	2.6
Increase/decrease in debt position	4.8	-3.5	0.1	8.1	0.0	0.0	0.0
Purchase of own shares	0.0	0.0	0.2	-0.6	0.0	0.0	0.0
Capital measures	0.0	0.0	0.0	0.0	0.0	0.0	0.0
Dividends paid	0.0	0.0	0.0	1.5	1.5	2.3	2.6
Others	-0.8	-1.0	-1.0	-1.3	0.0	0.0	0.0
Effects of exchange rate changes on cash	-0.2	-0.3	0.0	0.1	0.0	0.0	0.0
Cash flow from financing activities	4.0	-4.5	-1.1	5.9	-1.5	-2.3	-2.6
Increase/decrease in liquid assets	4.5	7.1	7.0	5.6	10.2	n/a	n/a
Liquid assets at end of period	11.8	18.9	25.8	31.5	41.7	52.2	63.8

Source: Company data, Hauck & Aufhäuser

2007	2008	2009	2010	2011E	2012E	2013E
0.0	322.2	386.1	510.0	566.0	598.0	624.0
n/a	n/a	19.8 %	32.1 %	11.0 %	5.7 %	4.3 %
0.0	0.0	36.4	-35.4	-35.9	-34.0	-34.6
n/a	n/a	n/a	neg.	neg.	neg.	neg.
0.0	0.0	0.0	0.0	0.0	0.0	0.0
n/a	n/a	n/a	n/a	n/a	n/a	n/a
0.0	0.0	0.0	0.0	0.0	0.0	0.0
n/a	n/a	n/a	n/a	n/a	n/a	n/a
0.0	0.0	0.0	0.0	0.0	0.0	0.0
n/a	n/a	n/a	n/a	n/a	n/a	n/a
0.0	322.2	422.5	474.6	530.1	564.0	589.4
n/a	n/a	31.1 %	12.3 %	11.7 %	6.4 %	4.5 %

Key ratios (EUR m)	2007	2008	2009	2010	2011E	2012E	2013E
P&L growth analysis
Sales growth	13.2 %	14.2 %	1.6 %	36.2 %	11.7 %	6.4 %	4.5 %
EBITDA growth	38.7 %	-2.7 %	21.3 %	100.7 %	31.6 %	10.8 %	4.7 %
EBIT growth	44.7 %	-8.8 %	26.0 %	114.0 %	25.4 %	11.5 %	5.7 %
EPS growth	85.5 %	-42.4 %	87.8 %	55.5 %	44.8 %	13.9 %	7.9 %
Efficiency
Total operating costs / sales	97.6 %	97.8 %	97.6 %	96.3 %	95.5 %	95.3 %	95.2 %
Sales per employee	233.3	215.9	196.0	243.4	256.1	262.3	266.4
EBITDA per employee	6.2	4.9	5.3	9.7	12.1	12.9	13.1
Balance sheet analysis
Avg. working capital / sales	6.2 %	4.8 %	3.4 %	2.8 %	3.2 %	3.4 %	3.5 %
Inventory turnover (sales/inventory)	35.1	34.0	27.7	35.5	37.0	37.0	37.0
Trade debtors in days of sales	47.8	47.0	49.5	52.3	49.0	49.0	49.0
A/P turnover [(A/P*365)/sales]	33.5	41.8	50.1	49.6	45.0	45.0	45.0
Cash conversion cycle (days)	15.5	2.8	-3.9	-3.1	-0.5	-0.7	-0.8
Cash flow analysis
Free cash flow	1.8	10.1	6.0	8.8	8.8	12.8	14.2
Free cash flow/sales	0.6 %	2.9 %	1.7 %	1.9 %	1.7 %	2.3 %	2.4 %
FCF / net profit	38.0 %	374.5 %	118.4 %	113.1 %	76.9 %	98.4 %	101.0 %
FCF yield	2.3 %	13.1 %	7.8 %	11.6 %	11.5 %	16.8 %	18.6 %
Capex / depn	221.5 %	122.1 %	188.4 %	206.6 %	91.7 %	84.6 %	83.3 %
Capex / maintenance capex	84.3 %	114.9 %	138.4 %	n/a	76.1 %	70.0 %	66.0 %
Capex / sales	1.4 %	0.8 %	1.3 %	1.7 %	1.0 %	n/a	n/a
Security
Net debt	6.2	3.9	-3.5	-0.9	-11.1	-21.7	-33.3
Net Debt/EBITDA	0.8	0.5	0.0	0.0	0.0	0.0	0.0
Net debt / equity	0.2	0.1	-0.1	0.0	-0.2	-0.3	-0.4
Interest cover	6.0	4.0	5.4	8.0	7.1	8.0	8.4
Dividend payout ratio	0.0 %	0.0 %	30.7 %	19.7 %	19.8 %	19.8 %	19.8 %
Asset utilisation
Capital employed turnover	4.8	5.3	4.9	5.6	5.6	5.3	5.0
Operating assets turnover	13.3	18.6	20.1	18.9	18.7	19.1	19.4
Plant turnover	99.4	63.5	53.4	49.0	54.2	58.9	62.2
Inventory turnover (sales/inventory)	35.1	34.0	27.7	35.5	37.0	37.0	37.0
Returns
ROCE	10.6 %	8.9 %	10.5 %	19.5 %	21.2 %	21.1 %	20.1 %
ROE	12.9 %	6.9 %	11.5 %	15.4 %	18.8 %	18.2 %	16.9 %
Other
Interest paid / avg. debt	6.6 %	7.0 %	5.9 %	7.2 %	8.7 %	8.7 %	8.7 %
No. employees (average)	1287	1588	1777	1950	2070	2150	2213
Number of shares	10.4	10.4	10.4	10.3	10.4	10.4	10.4
DPS	0.0	0.0	0.2	0.2	0.2	0.3	0.3
EPS reported	0.45	0.26	0.49	0.76	1.10	1.25	1.35
Valuation ratios
P/BV	2.1	2.0	1.8	1.5	1.3	1.1	0.9
EV/sales	0.3	0.2	0.2	0.2	0.1	0.1	0.1
EV/EBITDA	10.4	10.4	7.7	4.0	2.6	2.0	1.5
EV/EBITA	12.6	14.4	10.3	5.0	3.0	2.3	1.7
EV/EBIT	13.5	14.4	10.3	5.0	3.4	2.6	1.9
EV/FCF	46.9	8.0	12.2	8.5	7.4	4.3	3.0
Dividend yield	0.0 %	0.0 %	2.0 %	2.0 %	3.0 %	3.4 %	3.6 %

Disclosure in respect of section 34b of the German Securities Trading Act (Wertpapierhandelsgesetz – WpHG)

Company	Disclosure
CANCOM AG	2

(1) Hauck & Aufhäuser or its affiliate(s) was Lead Manager or Co-Lead Manager over the previous 12 months of a public offering of this company.

(2) Hauck & Aufhäuser offers Equity Advisory Services for this company.

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(4) Hauck & Aufhäuser and/or its affiliate(s) hold 5 % or more of the share capital of this company.

(5) Hauck & Aufhäuser holds a trading position in shares of this company.

• (6) Hauck & Aufhäuser and/or its affiliate(s) holds a net short position of 1 % or more of the share capital of this company, calculated by methods required by German law as of the last trading day of the past month.
• (7) Within the last five years Hauck & Aufhäuser was a member of the issuing syndicate of this company.
• (8) The research report has been made available to the company prior to its publication / dissemination. Thereafter, only factual changes have been made to the report

Historical target price and rating changes for CANCOM AG in the last 12 months

Valuation basis/rating key

Buy: Sustainable upside potential of more than 10% within 12 months.

Sell: Sustainable downside potential of more than 10% within 12 months.

Hold: Upside/downside potential limited. No immediate catalyst visible.

Competent supervisory authority

Bundesanstalt für Finanzdienstleistungsaufsicht – BaFin – (Federal Financial Supervisory Authority), Graurheindorfer Straße 108, 53117 Bonn and Lurgiallee 12, 60439 Frankfurt am Main, Germany

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