CANCOM SE — Investor Presentation 2012

Apr 30, 2012

CANCOM AG Germany - IT Services

Buy (old: Buy) 30-April-12

Price target: EUR 18.50 (old: EUR 18.50)	Tim Wunderlich, CFA

Price:	EUR 12.95	Next result:	Q1 2012: 11.05.12
Bloomberg:	COK GR	Market cap:	EUR 134.8 m	tim.wunderlich@ha-research.de
Reuters:	COKG.DE	Enterprise Value:	EUR 102.5 m	Tel.: +49 40 4143885 81

Release of prelim. Q1 '12 results: Sound growth, Strong margins

EUR	Q1 12	Q1 12 est	Q1 11	yoy	Q4 11	qoq
Sales	141.1	142.0	124.6	13%	157.4	-10%
EBITDA	7.0	6.1	4.7	50%	7.4	-5%
EBITDA margin	5.0%	4.3%	3.8%	+ 1.2 pp	4.7%	+ 0.3 pp
EBIT	5.3	4.6	3.1	70%	5.7	-7%
EBIT margin	3.8%	3.3%	2.5%	+ 1.3 pp	3.6%	+ 0.1 pp

Source: Company data, Hauck & Aufhäuser.

Sales grew by 13% y-o-y to € 141.1m, roughly in-line with expectations. Previously, CANCOM had already flagged that growth in January and February exceeded 20% yo-y, which implies -5% growth for March, in our view. However, this should be considered a "breather" following the first two strong months and hence not raise concerns: Month-over-month volatility is common and the IT Services & Hardware outlook for 2012E remains positive: According to BITKOM's business barometer, a reliable indicator of the German IT business development, 85% of IT Software and Services companies in Germany expect a positive sales development in 2012E. Also, our CANCOM model incorporates 9% sales growth for FY '12E and hence already anticipates somewhat more moderate growth rates in the coming quarters.

EBITDA grew strongly disproportionately to sales by 50% y-o-y to € 7.0m, roughly 15% better than expected. This equals an EBITDA margin of 5.0% which is equal to the best quarterly margin CANCOM achieved in 2011 even though Q1 is seasonally a weaker quarter.

The strong EBITDA development suggests that the product mix shifted from lowmargin hardware to higher-margin services including SAP Hosting and Cloud Computing. CANCOM is seen to thrive especially on the latter trend as the company cannot only sell hardware, software and services into Cloud projects BUT also has a unique selling proposition with its proprietary private AHP cloud platform which makes the implementation of a Cloud solution much faster and cheaper.

While the stock has performed strongly in recent months, outperforming the TecDax by 45%, it still not only trades on very low valuation multiples (3.4x EV/EBIT '12E) but also at an almost 50% discount to Bechtle on EV/EBIT 2012E. Remains a BUY, PT € 18.50 based on DCF.

Y/E 31.12 (EUR m)	2008	2009	2010	2011	2012E	2013E	2014E
Sales	342.8	348.3	474.6	544.4	594.0	624.4	654.4
Sales growth	14 %	2 %	36 %	15 %	9 %	5 %	5 %
EBITDA	7.8	9.5	19.0	25.0	29.9	32.9	35.8
EBIT	5.6	7.1	15.2	18.5	24.3	26.6	28.8
Net income	2.7	5.1	7.8	11.5	16.1	18.3	20.0
Net debt	3.9	-3.5	-0.9	-18.5	-32.5	-44.1	-56.8
Net gearing	9.9 %	-8.0 %	-1.8 %	-30.4 %	-44.0 %	-49.5 %	-54.1 %
Net Debt/EBITDA	0.5	0.0	0.0	0.0	0.0	0.0	0.0
EPS fully diluted	0.26	0.49	0.76	1.11	1.55	1.76	1.92
CPS	1.05	0.80	1.28	2.18	2.13	1.86	2.06
DPS	0.00	0.15	0.15	0.30	0.30	0.40	0.40
Dividend yield	0.0 %	1.1 %	1.1 %	2.3 %	2.3 %	3.0 %	3.0 %
Gross profit margin	29.9 %	31.0 %	29.3 %	29.1 %	29.1 %	29.1 %	29.1 %
EBITDA margin	2.3 %	2.7 %	4.0 %	4.6 %	5.0 %	5.3 %	5.5 %
EBIT margin	1.6 %	2.0 %	3.2 %	3.4 %	4.1 %	4.3 %	4.4 %
ROCE	8.9 %	10.5 %	19.5 %	20.6 %	25.2 %	25.9 %	25.0 %
EV/sales	0.4	0.4	0.3	0.2	0.2	0.1	0.1
EV/EBITDA	18.0	14.0	7.1	4.7	3.4	2.8	2.2
EV/EBIT	25.0	18.7	8.8	6.3	4.2	3.4	2.7
PER	43.0	27.3	14.3	11.5	8.5	7.5	6.8
Adjusted FCF yield	3.1 %	4.6 %	8.7 %	13.6 %	17.9 %	22.2 %	28.9 %

Source: Company data, Hauck & Aufhäuser Close price as of: 27.04.2012

Analyst

Source: Company data, Hauck & Aufhäuser

High/low 52 weeks:	13.14 / 6.74
Price/Book Ratio:	1.8
Relative performance (TecDAX):
3 months	45.8 %
6 months	43.9 %
12 months	43.7 %

Changes in estimates

		Sales	EBIT	EPS
2012	old:	594.0	24.3	1.55
	∆	-	-	-
	old:	624.4	26.6	1.76
2013	∆	-	-	-
	old:	654.4	28.8	1.92
2014	∆	-	-	-

Key share data:

Number of shares: (in m pcs)	10.4
Authorised capital: (in € m)	4.0
Book value per share: (in €)	7.1
Ø trading volume: (12 months)	60,000

Major shareholders:

Free Float	82.7 %
JP Morgan	5.3 %
AGI	5.0 %
Stefan Kober	2.5 %
Raymond Kober	2.5 %
Klaus Weinmann	2.0 %

Company description:

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

Financials

Profit and loss (EUR m)	2008	2009	2010	2011	2012E	2013E	2014E
Net sales	342.8	348.3	474.6	544.4	594.0	624.4	654.4
Sales growth	14.2 %	1.6 %	36.2 %	14.7 %	9.1 %	5.1 %	4.8 %
Increase/decrease in finished goods and work-in-process	0.3	1.0	1.3	0.9	0.8	1.0	1.0
Total sales	343.1	349.3	475.8	545.3	594.8	625.4	655.4
Other operating income	0.3	2.3	3.3	0.7	0.2	0.4	0.5
Material expenses	240.7	241.1	336.3	386.6	421.6	443.4	464.8
Personnel expenses	71.0	79.2	97.0	108.0	116.2	121.2	125.7
Other operating expenses	24.0	21.8	26.8	26.4	27.3	28.3	29.6
Total operating expenses	335.3	339.8	456.8	520.3	564.9	592.5	619.6
EBITDA	7.8	9.5	19.0	25.0	29.9	32.9	35.8
Depreciation	2.2	2.4	3.8	2.8	3.4	3.8	4.3
EBITA	5.6	7.1	15.2	22.2	26.5	29.1	31.5
Amortisation of goodwill	0.0	0.0	0.0	0.0	0.0	0.0	0.0
Amortisation of intangible assets	0.0	0.0	0.0	3.7	2.2	2.5	2.7
Impairment charges	0.0	0.0	0.0	0.0	0.0	0.0	0.0
EBIT	5.6	7.1	15.2	18.5	24.3	26.6	28.8
Interest income	0.3	0.2	0.1	0.3	0.2	0.3	0.3
Interest expenses	1.4	1.3	1.9	2.2	1.7	0.8	0.6
Other financial result	-0.1	0.0	0.0	0.4	0.4	0.4	0.4
Financial result	-1.2	-1.1	-1.8	-1.6	-1.1	-0.1	0.1
Recurring pretax income from continuing operations	4.4	5.9	13.3	16.9	23.2	26.5	28.9
Extraordinary income/loss	0.0	0.0	0.0	0.0	0.0	0.0	0.0
Earnings before taxes	4.4	5.9	13.3	16.9	23.2	26.5	28.9
Taxes	1.3	0.9	3.7	4.9	7.0	7.9	8.7
Net income from continuing operations	3.2	5.0	9.6	12.0	16.3	18.5	20.2
Result from discontinued operations (net of tax)	0.5	-0.1	1.7	0.3	0.0	0.0	0.0
Net income	2.7	5.1	7.9	11.7	16.3	18.5	20.2
Minority interest	0.0	0.0	0.1	0.2	0.2	0.2	0.2
Net income (net of minority interest)	2.7	5.1	7.8	11.5	16.1	18.3	20.0
Average number of shares	10.4	10.4	10.3	10.4	10.4	10.4	10.4
EPS reported	0.26	0.49	0.76	1.11	1.55	1.76	1.92

Profit and loss (common size)	2008	2009	2010	2011	2012E	2013E	2014E
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	0.1 %	0.3 %	0.3 %	0.2 %	0.1 %	0.2 %	0.2 %
Total sales	100.1 %	100.3 %	100.3 %	100.2 %	100.1 %	100.2 %	100.2 %
Other operating income	0.1 %	0.6 %	0.7 %	0.1 %	0.0 %	0.1 %	0.1 %
Material expenses	70.2 %	69.2 %	70.9 %	71.0 %	71.0 %	71.0 %	71.0 %
Personnel expenses	20.7 %	22.7 %	20.4 %	19.8 %	19.6 %	19.4 %	19.2 %
Other operating expenses	7.0 %	6.3 %	5.7 %	4.8 %	4.6 %	4.5 %	4.5 %
Total operating expenses	97.8 %	97.6 %	96.3 %	95.6 %	95.1 %	94.9 %	94.7 %
EBITDA	2.3 %	2.7 %	4.0 %	4.6 %	5.0 %	5.3 %	5.5 %
Depreciation	0.6 %	0.7 %	0.8 %	0.5 %	0.6 %	0.6 %	0.7 %
EBITA	1.6 %	2.0 %	3.2 %	4.1 %	4.5 %	4.7 %	4.8 %
Amortisation of goodwill	0.0 %	0.0 %	0.0 %	0.0 %	0.0 %	0.0 %	0.0 %
Amortisation of intangible assets	0.0 %	0.0 %	0.0 %	0.7 %	0.4 %	0.4 %	0.4 %
Impairment charges	0.0 %	0.0 %	0.0 %	0.0 %	0.0 %	0.0 %	0.0 %
EBIT	1.6 %	2.0 %	3.2 %	3.4 %	4.1 %	4.3 %	4.4 %
Interest income	0.1 %	0.0 %	0.0 %	0.1 %	0.0 %	0.0 %	0.0 %
Interest expenses	0.4 %	0.4 %	0.4 %	0.4 %	0.3 %	0.1 %	0.1 %
Other financial result	0.0 %	0.0 %	0.0 %	0.1 %	0.1 %	0.1 %	0.1 %
Financial result	-0.4 %	-0.3 %	-0.4 %	-0.3 %	-0.2 %	0.0 %	0.0 %
Recurring pretax income from continuing operations	1.3 %	1.7 %	2.8 %	3.1 %	3.9 %	4.2 %	4.4 %
Extraordinary income/loss	0.0 %	0.0 %	0.0 %	0.0 %	0.0 %	0.0 %	0.0 %
Earnings before taxes	1.3 %	1.7 %	2.8 %	3.1 %	3.9 %	4.2 %	4.4 %
Tax rate	28.3 %	15.6 %	28.1 %	28.8 %	30.0 %	30.0 %	30.0 %
Net income from continuing operations	0.9 %	1.4 %	2.0 %	2.2 %	2.7 %	3.0 %	3.1 %
Income from discontinued operations (net of tax)	0.1 %	0.0 %	0.4 %	0.1 %	0.0 %	0.0 %	0.0 %
Net income	0.8 %	1.5 %	1.7 %	2.1 %	2.7 %	3.0 %	3.1 %
Minority interest	0.0 %	0.0 %	0.0 %	0.0 %	0.0 %	0.0 %	0.0 %
Net income (net of minority interest)	0.8 %	1.5 %	1.6 %	2.1 %	2.7 %	2.9 %	3.1 %

Balance sheet (EUR m)	2008	2009	2010	2011	2012E	2013E	2014E
Intangible assets	28.3	31.5	42.5	39.6	40.2	40.7	41.0
Property, plant and equipment	5.4	6.5	9.7	12.9	16.6	19.4	22.1
Financial assets	3.5	0.2	3.2	2.2	2.2	2.2	2.2
FIXED ASSETS	37.3	38.2	55.4	54.6	58.9	62.2	65.2
Inventories	10.1	12.6	13.4	15.0	15.8	16.7	17.5
Accounts receivable	44.2	47.2	68.0	72.2	76.5	80.4	84.3
Other current assets	6.3	5.1	6.4	7.2	7.2	7.2	7.2
Liquid assets	18.3	25.8	31.5	44.4	49.0	54.2	66.8
Deferred taxes	2.5	2.6	0.7	0.6	0.6	0.6	0.6
Deferred charges and prepaid expenses	2.1	3.4	2.0	0.9	0.9	0.9	0.9
CURRENT ASSETS	83.4	96.7	122.0	140.2	150.0	159.9	177.2
TOTAL ASSETS	120.7	134.9	177.4	194.9	209.0	222.2	242.5
SHAREHOLDERS EQUITY	38.9	43.9	50.9	60.7	73.8	89.1	105.0
MINORITY INTEREST	0.0	0.0	0.1	0.2	0.4	0.6	0.8
Long-term debt	20.3	21.6	29.0	16.7	11.6	5.6	5.6
Provisions for pensions and similar obligations	0.2	0.0	0.1	0.1	0.1	0.1	0.1
Other provisions	3.2	4.3	3.2	7.6	7.6	7.6	7.6
Non-current liabilities	23.6	26.0	32.2	24.4	19.2	13.2	13.2
short-term liabilities to banks	1.8	0.7	1.6	9.1	5.0	4.5	4.5
Accounts payable	39.3	47.9	64.4	72.9	83.0	87.2	91.4
Advance payments received on orders	2.0	1.1	1.5	1.9	1.9	1.9	1.9
Other liabilities (incl. from lease and rental contracts)	12.6	10.7	16.3	17.4	17.4	17.4	17.4
Deferred taxes	1.3	2.0	4.3	2.7	2.7	2.7	2.7
Deferred income	1.2	2.7	6.0	5.6	5.6	5.6	5.6
Current liabilities	58.1	65.0	94.2	109.6	115.5	119.3	123.5
TOTAL LIABILITIES AND SHAREHOLDERS EQUITY	120.7	134.9	177.4	194.9	209.0	222.2	242.5

Balance sheet (common size)	2008	2009	2010	2011	2012E	2013E	2014E
Intangible assets	23.5 %	23.4 %	24.0 %	20.3 %	19.2 %	18.3 %	16.9 %
Property, plant and equipment	4.5 %	4.8 %	5.5 %	6.6 %	7.9 %	8.7 %	9.1 %
Financial assets	2.9 %	0.1 %	1.8 %	1.1 %	1.0 %	1.0 %	0.9 %
FIXED ASSETS	30.9 %	28.3 %	31.2 %	28.0 %	28.2 %	28.0 %	26.9 %
Inventories	8.4 %	9.3 %	7.5 %	7.7 %	7.6 %	7.5 %	7.2 %
Accounts receivable	36.6 %	35.0 %	38.3 %	37.1 %	36.6 %	36.2 %	34.8 %
Other current assets	5.2 %	3.8 %	3.6 %	3.7 %	3.4 %	3.2 %	3.0 %
Liquid assets	15.1 %	19.2 %	17.7 %	22.8 %	23.5 %	24.4 %	27.6 %
Deferred taxes	2.1 %	1.9 %	0.4 %	0.3 %	0.3 %	0.3 %	0.3 %
Deferred charges and prepaid expenses	1.7 %	2.5 %	1.1 %	0.4 %	0.4 %	0.4 %	0.4 %
CURRENT ASSETS	69.1 %	71.7 %	68.8 %	72.0 %	71.8 %	72.0 %	73.1 %
TOTAL ASSETS	100.0 %	100.0 %	100.0 %	100.0 %	100.0 %	100.0 %	100.0 %
SHAREHOLDERS EQUITY	32.3 %	32.5 %	28.7 %	31.2 %	35.3 %	40.1 %	43.3 %
MINORITY INTEREST	0.0 %	0.0 %	0.0 %	0.1 %	0.2 %	0.3 %	0.3 %
Long-term debt	16.9 %	16.0 %	16.3 %	8.6 %	5.5 %	2.5 %	2.3 %
Provisions for pensions and similar obligations	0.1 %	0.0 %	0.0 %	0.0 %	0.0 %	0.0 %	0.0 %
Other provisions	2.6 %	3.2 %	1.8 %	3.9 %	3.6 %	3.4 %	3.1 %
Non-current liabilities	19.6 %	19.3 %	18.2 %	12.5 %	9.2 %	5.9 %	5.5 %
short-term liabilities to banks	1.5 %	0.5 %	0.9 %	4.7 %	2.4 %	2.0 %	1.9 %
Accounts payable	32.5 %	35.5 %	36.3 %	37.4 %	39.7 %	39.3 %	37.7 %
Advance payments received on orders	1.6 %	0.8 %	0.9 %	1.0 %	0.9 %	0.8 %	0.8 %
Other liabilities (incl. from lease and rental contracts)	10.4 %	7.9 %	9.2 %	9.0 %	8.3 %	7.9 %	7.2 %
Deferred taxes	1.1 %	1.5 %	2.4 %	1.4 %	1.3 %	1.2 %	1.1 %
Deferred income	1.0 %	2.0 %	3.4 %	2.9 %	2.7 %	2.5 %	2.3 %
Current liabilities	48.2 %	48.2 %	53.1 %	56.2 %	55.3 %	53.7 %	50.9 %
TOTAL LIABILITIES AND SHAREHOLDERS EQUITY	100.0 %	100.0 %	100.0 %	100.0 %	100.0 %	100.0 %	100.0 %

Cash flow statement (EUR m)	2008	2009	2010	2011	2012E	2013E	2014E
Net profit/loss	2.7	5.1	7.9	11.7	16.3	18.5	20.2
Depreciation of fixed assets (incl. leases)	2.2	2.4	3.8	2.8	3.4	3.8	4.3
Amortisation of goodwill	0.0	0.0	0.0	0.0	0.0	0.0	0.0
Amortisation of intangible assets	0.0	0.0	0.0	3.7	2.2	2.5	2.7
Others	-10.8	-0.6	3.0	4.7	0.0	0.0	0.0
Cash flow from operations before changes in w/c	-6.0	6.9	14.7	22.9	21.9	24.8	27.2
Increase/decrease in inventory	0.9	-0.9	0.3	-6.3	-0.8	-0.8	-0.8
Increase/decrease in accounts receivable	4.4	0.8	-15.2	-5.2	-4.3	-3.9	-3.9
Increase/decrease in accounts payable	4.3	2.7	17.1	15.3	10.1	4.2	4.2
Increase/decrease in other working capital positions	9.5	1.1	0.0	0.0	0.0	0.0	0.0
Increase/decrease in working capital	19.0	3.8	2.2	3.8	5.0	-0.5	-0.5
Cash flow from operating activities	13.1	10.7	16.9	26.7	26.8	24.3	26.8
CAPEX	3.0	4.7	8.1	9.4	9.9	9.6	10.0
Payments for acquisitions	6.6	0.4	10.5	3.6	0.0	0.0	0.0
Financial investments	-0.3	-0.2	-0.1	-0.3	0.0	0.0	0.0
Income from asset disposals	8.1	2.3	1.1	4.8	0.0	0.0	0.0
Cash flow from investing activities	-1.2	-2.6	-17.3	-7.9	-9.9	-9.6	-10.0
Cash flow before financing	11.9	8.0	-0.4	18.8	16.9	14.7	16.8
Increase/decrease in debt position	-3.5	0.1	8.1	-2.6	-9.3	-6.5	0.0
Purchase of own shares	0.0	0.2	-0.6	0.0	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	1.5	1.6	3.1	3.1	4.1
Others	-1.0	-1.0	-1.3	-1.6	0.0	0.0	0.0
Effects of exchange rate changes on cash	-0.3	0.0	0.1	0.0	0.0	0.0	0.0
Cash flow from financing activities	-4.5	-1.1	5.9	-5.8	-12.4	-9.6	-4.1
Increase/decrease in liquid assets	7.1	7.0	5.6	13.0	4.5	5.2	12.7
Liquid assets at end of period	18.9	25.8	31.5	44.5	49.0	54.2	66.8

Source: Company data, Hauck & Aufhäuser

2008	2009	2010	2011	2012E	2013E	2014E
322.2	386.1	441.7	502.0	549.5	578.8	608.6
n/a	19.8 %	14.4 %	13.7 %	9.5 %	5.3 %	5.1 %
0.0	36.4	32.9	42.4	44.6	45.6	45.8
n/a	n/a	-9.6 %	28.9 %	5.1 %	2.3 %	0.5 %
0.0	0.0	n/a	n/a	n/a	n/a	n/a
n/a	n/a	n/a	n/a	n/a	n/a	n/a
0.0	0.0	n/a	n/a	n/a	n/a	n/a
n/a	n/a	n/a	n/a	n/a	n/a	n/a
0.0	0.0	n/a	n/a	n/a	n/a	n/a
n/a	n/a	n/a	n/a	n/a	n/a	n/a
322.2	422.5	474.6	544.4	594.0	624.4	654.4
n/a	31.1 %	12.3 %	14.7 %	9.1 %	5.1 %	4.8 %

Key ratios (EUR m) 2008 2009 2010 2011 2012E 2013E	2014E
P&L growth analysis
Sales growth 14.2 % 1.6 % 36.2 % 14.7 % 9.1 % 5.1 %	4.8 %
EBITDA growth -2.7 % 21.3 % 100.7 % 31.6 % 19.6 % 10.0 %	8.8 %
EBIT growth -8.8 % 26.0 % 114.0 % 21.7 % 31.7 % 9.5 %	8.3 %
EPS growth -42.4 % 87.8 % 55.5 % 46.4 % 39.5 % 13.9 %	9.2 %
Efficiency
Total operating costs / sales 97.8 % 97.6 % 96.3 % 95.6 % 95.1 % 94.9 %	94.7 %
Sales per employee 215.9 196.0 257.7 273.1 280.6 282.2	585.6
EBITDA per employee 4.9 5.3 10.3 12.5 14.1 14.9	32.0
Balance sheet analysis
Avg. working capital / sales 4.8 % 3.4 % 2.8 % 2.6 % 1.7 % 1.2 %	1.2 %
Inventory turnover (sales/inventory) 34.0 27.7 35.5 36.3 37.5 37.5	37.5
Trade debtors in days of sales 47.0 49.5 52.3 48.4 47.0 47.0	47.0
A/P turnover [(A/P*365)/sales] 41.8 50.1 49.6 48.9 51.0 51.0	51.0
Cash conversion cycle (days) 2.8 -3.9 -3.1 -6.3 -11.1 -11.1	-11.1
Cash flow analysis
Free cash flow 10.1 6.0 8.8 17.3 16.9 14.7	16.8
Free cash flow/sales 2.9 % 1.7 % 1.9 % 3.2 % 2.9 % 2.4 %	2.6 %
FCF / net profit 374.5 % 118.4 % 113.1 % 150.3 % 105.3 % 80.5 %	83.8 %
FCF yield 7.4 % 4.4 % 6.6 % 12.9 % 12.6 % 10.9 %	12.4 %
Capex / depn 122.1 % 188.4 % 206.6 % 139.0 % 176.8 % 152.4 %	142.9 %
Capex / maintenance capex 114.9 % 137.6 % 133.1 % 151.6 % 142.0 % 124.5 %	125.0 %
Capex / sales 0.8 % 1.3 % 1.7 % 1.7 % n/a n/a	n/a
Security
Net debt 3.9 -3.5 -0.9 -18.5 -32.5 -44.1	-56.8
Net Debt/EBITDA 0.5 0.0 0.0 0.0 0.0 0.0	0.0
Net debt / equity 0.1 -0.1 0.0 -0.3 -0.4 -0.5	-0.5
Interest cover 4.0 5.4 8.0 8.3 14.3 33.3	47.7
Dividend payout ratio 0.0 % 30.7 % 19.7 % 26.7 % 19.2 % 22.4 %	20.5 %
Asset utilisation
Capital employed turnover 5.3 4.9 5.6 5.8 6.0 5.8	5.3
Operating assets turnover 18.6 20.1 18.9 21.5 24.7 22.8	21.4
Plant turnover 63.5 53.4 49.0 42.2 35.8 32.2	29.6
Inventory turnover (sales/inventory) 34.0 27.7 35.5 36.3 37.5 37.5	37.5
Returns
ROCE 8.9 % 10.5 % 19.5 % 20.6 % 25.2 % 25.9 %	25.0 %
ROE 6.9 % 11.5 % 15.4 % 19.0 % 21.8 % 20.6 %	19.1 %
Other
Interest paid / avg. debt 7.0 % 5.9 % 7.2 % 7.9 % 8.0 % 6.0 %	6.0 %
No. employees (average) 1588 1777 1842 1994 2117 2213	1118
Number of shares 10.4 10.4 10.3 10.4 10.4 10.4	10.4
DPS 0.0 0.2 0.2 0.3 0.3 0.4	0.4
EPS reported 0.26 0.49 0.76 1.11 1.55 1.76	1.92
Valuation ratios
P/BV 3.5 3.1 2.7 2.2 1.8 1.5 EV/sales 0.4 0.4 0.3 0.2 0.2 0.1	1.3 0.1
EV/EBITDA 18.0 14.0 7.1 4.7 3.4 2.8	2.2
EV/EBITA 25.0 18.7 8.8 5.3 3.9 3.1	2.5
EV/EBIT 25.0 18.7 8.8 6.3 4.2 3.4	2.7
EV/FCF 13.9 22.1 15.2 6.7 6.1 6.2	4.7
Dividend yield 0.0 % 1.1 % 1.1 % 2.3 % 2.3 % 3.0 %	3.0 %

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

Company	Disclosure
CANCOM AG	2, 5

(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.

(3) Over the previous 12 months, Hauck & Aufhäuser and/or its affiliate(s) has effected an agreement with this company for investment banking services or received compensation or a promise to pay from this company for investment banking services.

(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.

Hold 13.58 % 0.00 %

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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