CANCOM SE — Investor Presentation 2013

Jun 20, 2013

CANCOM SE Germany - IT Services

Buy (old: Buy)				20-June-13
	Price target: EUR 22.50	(old: EUR 22.50)		Tim Wunderlich, CFA Analyst
Price:	EUR 17.19	Next result:	Q2 13: 13.08.13
Bloomberg:	COK GR	Market cap:	EUR 195.1 m	tim.wunderlich@ha-research.de
Reuters:	COKG.DE	Enterprise Value:	EUR 145.4 m	Tel.: +49 40 4143885 81

Growing footprint in Cloud Computing to drive re-rating

Recent news flow has underpinned the attractiveness of the Cloud Computing market, where CANCOM is set to benefit given its growing footprint for Private Cloud installations amongst German SME customers.

First, IBM has acquired SoftLayer (FY' 13E: c. \$ 450m sales), a leading cloud infrastructure provider including computing and storage capacity as well as managed hosting. At a purchase price of \$ 2bn, SoftLayer is valued at c. 9x forward EV/EBITDA (vs. 4.8x for CANCOM), according to various sources (no public data available). However, keep in mind that SoftLayer likely has high capex and hence high D&A given that it operates its own data centre resources – hence the transaction multiple on EV/EBIT and PER should be much higher.

Second, the NSA internet surveillance scandal should have strengthened the partial "closed shop" nature of the German Cloud Computing market: Fearing for the security of their data, German SMEs are looking for home-grown providers with a long-standing reputation and domestic data centres – favouring CANCOM which has long-standing ties to some 25,000 German SMEs. This makes it an appealing take-over target, in our view.

On top of this, CANCOM has a unique competitive position in the market for Private Clouds – which is basically a cloud solution dedicated to one customer. The company's one-of-a-kind AHP Private Cloud is a standardised and automated "out-of-the-box" Private Cloud architecture, which makes the implementation of a cloud solution faster, more cost-efficient and more transparent (concerning duration and cost). In contrast, rivals such as Bechtle or Computacenter need to fall back to a slower and more costly manual approach.

The AHP Private Cloud solution is hence a key positive differentiator for CANCOM and consequently the company is seeing very strong demand - more than it can handle currently. CANCOM is hence well on track to achieve cloudrelated and recurring EBITDA of € 10m by 2015E (some 27% of group EBITDA). This is not fully reflected in our estimates. – continued –

Y/E 31.12 (EUR m)	2009	2010	2011	2012	2013E	2014E	2015E
Sales	348.3	474.6	544.4	558.1	591.0	622.0	643.8
Sales growth	2 %	36 %	15 %	3 %	6 %	5 %	4 %
EBITDA	9.5	19.0	25.0	28.1	30.6	33.6	36.7
EBIT	7.1	15.2	18.5	20.7	22.6	25.2	28.4
Net income	5.1	7.8	11.5	11.5	15.2	17.4	19.4
Net debt	-3.5	-0.9	-18.5	-29.2	-49.8	-60.8	-73.8
Net gearing	-8.0 %	-1.8 %	-30.4 %	-36.3 %	-54.3 %	-58.1 %	-61.8 %
Net Debt/EBITDA	0.0	0.0	0.0	0.0	0.0	0.0	0.0
EPS fully diluted	0.49	0.76	1.11	1.00	1.33	1.52	1.70
CPS	0.80	1.28	2.18	0.98	2.54	1.75	1.70
DPS	0.15	0.15	0.30	0.35	0.40	0.40	0.45
Dividend yield	0.9 %	0.9 %	1.7 %	2.0 %	2.3 %	2.3 %	2.6 %
Gross profit margin	31.0 %	29.3 %	29.1 %	29.5 %	30.1 %	30.3 %	30.6 %
EBITDA margin	2.7 %	4.0 %	4.6 %	5.0 %	5.2 %	5.4 %	5.7 %
EBIT margin	2.0 %	3.2 %	3.4 %	3.7 %	3.8 %	4.1 %	4.4 %
ROCE	10.5 %	19.5 %	20.6 %	21.1 %	21.6 %	22.0 %	22.0 %
EV/sales	0.5	0.4	0.3	0.3	0.2	0.2	0.2
EV/EBITDA	18.4	9.2	6.3	5.9	4.8	4.0	3.3
EV/EBIT	24.6	11.6	8.6	8.0	6.4	5.3	4.3
PER	35.7	18.6	15.1	16.2	12.9	11.3	10.1
Adjusted FCF yield	3.5 %	6.6 %	10.0 %	10.1 %	13.2 %	15.8 %	17.1 %

Source: Company data, Hauck & Aufhäuser Close price as of: 19.06.2013

Source: Company data, Hauck & Aufhäuser

High/low 52 weeks:	18.11 / 10.78
Price/Book Ratio:	2.1
Relative performance (TecDAX):
3 months	8.7 %
6 months	9.2 %
12 months	-7.1 %

Changes in estimates

		Sales	EBIT	EPS
2013	old:	591.0	22.6	1.33
	∆	-	-	-
	old:	622.0	25.2	1.52
2014	∆	-	-	-
	old:	643.8	28.4	1.70
2015	∆	-	-	-

Key share data:

Number of shares: (in m pcs)	11.4
Authorised capital: (in € m)	4.0
Book value per share: (in €)	8.0
Ø trading volume: (12 months)	60,000

Major shareholders:

Free Float	72.2 %
Karin Schick	10.2 %
Elber Beteiligung	9.2 %
AGI	4.7 %
Stefan Kober	2.3 %
Klaus Weinmann	1.5 %

Company description:

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

Despite this, CANCOM is still valued as a common IT System House rather than an emerging cloud player:

• It is trading at an 11% discount on EV/EBIT '13E to its traditional peer Bechtle which however does not have a proprietary cloud solution.
• It is valued at massive discounts to Cloud Computing peers like Rackspace and Equinix, which are trading at 44x earnings '14E and 42x earnings '14E, respectively.

In light of the above, Mr. Schick's (the founder of Bechtle) 10% stake in CANCOM could also act as a "poison pill" to ward off potential take-over offers for CANCOM, which would mean heavier competition for Bechtle. In our view, Mr. Schick should be looking to further increase his stake, supporting news flow.

The stock remains a BUY with a PT of € 22.50 based on a conservative DCF model (3.5% terminal year EBIT margin) The FCFY model would result in fair values of above € 25 already for 2013E.

Financials

Profit and loss (EUR m)	2009	2010	2011	2012	2013E	2014E	2015E
Net sales	348.3	474.6	544.4	558.1	591.0	622.0	643.8
Sales growth	1.6 %	36.2 %	14.7 %	2.5 %	5.9 %	5.2 %	3.5 %
Increase/decrease in finished goods and work-in-process	1.0	1.3	0.9	2.5	1.0	1.0	1.0
Total sales	349.3	475.8	545.3	560.6	592.0	623.0	644.8
Other operating income	2.3	3.3	0.7	0.6	0.4	0.5	0.5
Material expenses	241.1	336.3	386.6	395.1	414.0	434.1	447.3
Personnel expenses	79.2	97.0	108.0	112.4	119.0	125.7	130.1
Other operating expenses	21.8	26.8	26.4	25.8	28.8	30.1	31.2
Total operating expenses	339.8	456.8	520.3	532.5	561.4	589.4	608.1
EBITDA	9.5	19.0	25.0	28.1	30.6	33.6	36.7
Depreciation	2.4	3.8	2.8	4.0	4.8	5.0	5.3
EBITA	7.1	15.2	22.2	24.0	25.8	28.6	31.4
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	3.7	3.4	3.2	3.4	3.0
Impairment charges	0.0	0.0	0.0	0.0	0.0	0.0	0.0
EBIT	7.1	15.2	18.5	20.7	22.6	25.2	28.4
Interest income	0.2	0.1	0.3	0.4	0.5	0.6	0.7
Interest expenses	1.3	1.9	2.2	2.1	1.5	1.1	1.1
Other financial result	0.0	0.0	0.4	0.0	0.4	0.4	0.0
Financial result	-1.1	-1.8	-1.6	-1.8	-0.6	-0.1	-0.4
Recurring pretax income from continuing operations	5.9	13.3	16.9	18.9	22.0	25.1	28.0
Extraordinary income/loss	0.0	0.0	0.0	0.0	0.0	0.0	0.0
Earnings before taxes	5.9	13.3	16.9	18.9	22.0	25.1	28.0
Taxes	0.9	3.7	4.9	6.6	6.6	7.5	8.4
Net income from continuing operations	5.0	9.6	12.0	12.3	15.4	17.6	19.6
Result from discontinued operations (net of tax)	-0.1	1.7	0.3	0.7	0.0	0.0	0.0
Net income	5.1	7.9	11.7	11.6	15.4	17.6	19.6
Minority interest	0.0	0.1	0.2	0.1	0.2	0.2	0.2
Net income (net of minority interest)	5.1	7.8	11.5	11.5	15.2	17.4	19.4
Average number of shares	10.4	10.3	10.4	10.6	11.4	11.4	11.4
EPS reported	0.49	0.76	1.11	1.09	1.33	1.52	1.70

Profit and loss (common size)	2009	2010	2011	2012	2013E	2014E	2015E
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 %	0.3 %	0.2 %	0.5 %	0.2 %	0.2 %	0.2 %
Total sales	100.3 %	100.3 %	100.2 %	100.5 %	100.2 %	100.2 %	100.2 %
Other operating income	0.6 %	0.7 %	0.1 %	0.1 %	0.1 %	0.1 %	0.1 %
Material expenses	69.2 %	70.9 %	71.0 %	70.8 %	70.1 %	69.8 %	69.5 %
Personnel expenses	22.7 %	20.4 %	19.8 %	20.1 %	20.1 %	20.2 %	20.2 %
Other operating expenses	6.3 %	5.7 %	4.8 %	4.6 %	4.9 %	4.8 %	4.8 %
Total operating expenses	97.6 %	96.3 %	95.6 %	95.4 %	95.0 %	94.8 %	94.5 %
EBITDA	2.7 %	4.0 %	4.6 %	5.0 %	5.2 %	5.4 %	5.7 %
Depreciation	0.7 %	0.8 %	0.5 %	0.7 %	0.8 %	0.8 %	0.8 %
EBITA	2.0 %	3.2 %	4.1 %	4.3 %	4.4 %	4.6 %	4.9 %
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 %	0.7 %	0.6 %	0.5 %	0.5 %	0.5 %
Impairment charges	0.0 %	0.0 %	0.0 %	0.0 %	0.0 %	0.0 %	0.0 %
EBIT	2.0 %	3.2 %	3.4 %	3.7 %	3.8 %	4.1 %	4.4 %
Interest income	0.0 %	0.0 %	0.1 %	0.1 %	0.1 %	0.1 %	0.1 %
Interest expenses	0.4 %	0.4 %	0.4 %	0.4 %	0.3 %	0.2 %	0.2 %
Other financial result	0.0 %	0.0 %	0.1 %	0.0 %	0.1 %	0.1 %	0.0 %
Financial result	-0.3 %	-0.4 %	-0.3 %	-0.3 %	-0.1 %	0.0 %	-0.1 %
Recurring pretax income from continuing operations	1.7 %	2.8 %	3.1 %	3.4 %	3.7 %	4.0 %	4.3 %
Extraordinary income/loss	0.0 %	0.0 %	0.0 %	0.0 %	0.0 %	0.0 %	0.0 %
Earnings before taxes	1.7 %	2.8 %	3.1 %	3.4 %	3.7 %	4.0 %	4.3 %
Tax rate	15.6 %	28.1 %	28.8 %	35.0 %	30.0 %	30.0 %	30.0 %
Net income from continuing operations	1.4 %	2.0 %	2.2 %	2.2 %	2.6 %	2.8 %	3.0 %
Income from discontinued operations (net of tax)	0.0 %	0.4 %	0.1 %	0.1 %	0.0 %	0.0 %	0.0 %
Net income	1.5 %	1.7 %	2.1 %	2.1 %	2.6 %	2.8 %	3.0 %
Minority interest	0.0 %	0.0 %	0.0 %	0.0 %	0.0 %	0.0 %	0.0 %
Net income (net of minority interest)	1.5 %	1.6 %	2.1 %	2.1 %	2.6 %	2.8 %	3.0 %

CANCOM SE

Balance sheet (EUR m)	2009	2010	2011	2012	2013E	2014E	2015E
Intangible assets	31.5	42.5	39.6	41.2	41.0	40.6	40.6
Property, plant and equipment	6.5	9.7	12.9	17.6	19.4	21.4	23.1
Financial assets	0.2	3.2	2.2	5.0	5.0	5.0	5.0
FIXED ASSETS	38.2	55.4	54.6	63.8	65.4	67.0	68.7
Inventories	12.6	13.4	15.0	8.7	15.8	16.6	17.2
Accounts receivable	47.2	68.0	72.2	88.3	76.1	80.1	82.9
Other current assets	5.1	6.4	7.2	0.9	0.9	0.9	0.9
Liquid assets	25.8	31.5	44.4	44.6	60.7	71.7	84.7
Deferred taxes	2.6	0.7	0.6	1.1	1.1	1.1	1.1
Deferred charges and prepaid expenses	3.4	2.0	0.9	1.1	1.1	1.1	1.1
CURRENT ASSETS	96.7	122.0	140.2	144.8	155.8	171.5	187.9
TOTAL ASSETS	134.9	177.4	194.9	208.6	221.2	238.5	256.6
SHAREHOLDERS EQUITY	43.9	50.9	60.7	80.6	91.8	104.6	119.5
MINORITY INTEREST	0.0	0.1	0.2	0.2	0.4	0.6	0.8
Long-term debt	21.6	29.0	16.7	14.1	6.4	6.4	6.4
Provisions for pensions and similar obligations	0.0	0.1	0.1	0.1	0.1	0.1	0.1
Other provisions	4.3	3.2	7.6	5.1	5.1	5.1	5.1
Non-current liabilities	26.0	32.2	24.4	19.3	11.6	11.6	11.6
short-term liabilities to banks	0.7	1.6	9.1	1.3	4.5	4.5	4.5
Accounts payable	47.9	64.4	72.9	76.9	82.6	86.9	90.0
Advance payments received on orders	1.1	1.5	1.9	3.6	3.6	3.6	3.6
Other liabilities (incl. from lease and rental contracts)	10.7	16.3	17.4	18.8	18.8	18.8	18.8
Deferred taxes	2.0	4.3	2.7	2.8	2.8	2.8	2.8
Deferred income	2.7	6.0	5.6	5.1	5.1	5.1	5.1
Current liabilities	65.0	94.2	109.6	108.6	117.4	121.7	124.8
TOTAL LIABILITIES AND SHAREHOLDERS EQUITY	134.9	177.4	194.9	208.6	221.2	238.5	256.6

Balance sheet (common size)	2009	2010	2011	2012	2013E	2014E	2015E
Intangible assets	23.4 %	24.0 %	20.3 %	19.8 %	18.5 %	17.0 %	15.8 %
Property, plant and equipment	4.8 %	5.5 %	6.6 %	8.4 %	8.7 %	9.0 %	9.0 %
Financial assets	0.1 %	1.8 %	1.1 %	2.4 %	2.3 %	2.1 %	2.0 %
FIXED ASSETS	28.3 %	31.2 %	28.0 %	30.6 %	29.6 %	28.1 %	26.8 %
Inventories	9.3 %	7.5 %	7.7 %	4.2 %	7.1 %	7.0 %	6.7 %
Accounts receivable	35.0 %	38.3 %	37.1 %	42.3 %	34.4 %	33.6 %	32.3 %
Other current assets	3.8 %	3.6 %	3.7 %	0.4 %	0.4 %	0.4 %	0.4 %
Liquid assets	19.2 %	17.7 %	22.8 %	21.4 %	27.5 %	30.0 %	33.0 %
Deferred taxes	1.9 %	0.4 %	0.3 %	0.5 %	0.5 %	0.5 %	0.4 %
Deferred charges and prepaid expenses	2.5 %	1.1 %	0.4 %	0.5 %	0.5 %	0.5 %	0.4 %
CURRENT ASSETS	71.7 %	68.8 %	72.0 %	69.4 %	70.4 %	71.9 %	73.2 %
TOTAL ASSETS	100.0 %	100.0 %	100.0 %	100.0 %	100.0 %	100.0 %	100.0 %
SHAREHOLDERS EQUITY	32.5 %	28.7 %	31.2 %	38.6 %	41.5 %	43.9 %	46.6 %
MINORITY INTEREST	0.0 %	0.0 %	0.1 %	0.1 %	0.2 %	0.2 %	0.3 %
Long-term debt	16.0 %	16.3 %	8.6 %	6.8 %	2.9 %	2.7 %	2.5 %
Provisions for pensions and similar obligations	0.0 %	0.0 %	0.0 %	0.1 %	0.1 %	0.1 %	0.0 %
Other provisions	3.2 %	1.8 %	3.9 %	2.4 %	2.3 %	2.1 %	2.0 %
Non-current liabilities	19.3 %	18.2 %	12.5 %	9.3 %	5.2 %	4.9 %	4.5 %
short-term liabilities to banks	0.5 %	0.9 %	4.7 %	0.6 %	2.0 %	1.9 %	1.8 %
Accounts payable	35.5 %	36.3 %	37.4 %	36.9 %	37.3 %	36.4 %	35.1 %
Advance payments received on orders	0.8 %	0.9 %	1.0 %	1.7 %	1.6 %	1.5 %	1.4 %
Other liabilities (incl. from lease and rental contracts)	7.9 %	9.2 %	9.0 %	9.0 %	8.5 %	7.9 %	7.3 %
Deferred taxes	1.5 %	2.4 %	1.4 %	1.4 %	1.3 %	1.2 %	1.1 %
Deferred income	2.0 %	3.4 %	2.9 %	2.4 %	2.3 %	2.1 %	2.0 %
Current liabilities	48.2 %	53.1 %	56.2 %	52.0 %	53.1 %	51.0 %	48.6 %
TOTAL LIABILITIES AND SHAREHOLDERS EQUITY	100.0 %	100.0 %	100.0 %	100.0 %	100.0 %	100.0 %	100.0 %

CANCOM SE

2009	2010	2011	2012	2013E	2014E	2015E
5.1	7.9	11.7	11.6	15.4	17.6	19.6
2.4	3.8	2.8	4.0	4.8	5.0	5.3
0.0	0.0	0.0	0.0	0.0	0.0	0.0
0.0	0.0	3.7	3.4	3.2	3.4	3.0
-0.6	3.0	4.7	2.9	0.0	0.0	0.0
6.9	14.7	22.9	21.9	23.4	26.0	27.9
-0.9	0.3	-6.3	6.2	-7.0	-0.8	-0.6
0.8	-15.2	-5.2	-16.1	12.2	-4.0	-2.8
2.7	17.1	15.3	4.0	5.6	4.3	3.0
1.1	0.0	0.0	0.0	0.0	0.0	0.0
3.8	2.2	3.8	-5.8	10.8	-0.5	-0.3
10.7	16.9	26.7	16.1	34.2	25.5	27.6
4.7	8.1	9.4	12.5	9.6	10.0	10.0
0.4	10.5	3.6	0.1	0.0	0.0	0.0
-0.2	-0.1	-0.3	0.0	0.0	0.0	0.0
2.3	1.1	4.8	2.0	0.0	0.0	0.0
-2.6	-17.3	-7.9	-10.6	-9.6	-10.0	-10.0
8.0	-0.4	18.8	5.5	24.6	15.5	17.6
0.1	8.1	-2.6	-11.9	-4.5	0.0	0.0
0.2	-0.6	0.0	0.0	0.0	0.0	0.0
0.0	0.0	0.0	11.2	0.0	0.0	0.0
0.0	1.5	1.6	3.3	4.0	4.5	4.5
-1.0	-1.3	-1.6	-1.4	0.0	0.0	0.0
0.0	0.1	0.0	0.0	0.0	0.0	0.0
-1.1	5.9	-5.8	-5.3	-8.5	-4.5	-4.5
7.0	5.6	13.0	0.2	16.1	10.9	13.0
25.8	31.5	44.5	44.6	60.7	71.7	84.7

Source: Company data, Hauck & Aufhäuser

2009	2010	2011	2012	2013E	2014E	2015E
						0.0
19.8 %	14.4 %	13.7 %	2.8 %	6.1 %	5.6 %	n/a
36.4	32.9	42.4	41.9	43.1	43.5	0.0
n/a	-9.6 %	28.9 %	-1.3 %	3.1 %	0.9 %	n/a
0.0	n/a	n/a	n/a	n/a	n/a	0.0
n/a	n/a	n/a	n/a	n/a	n/a	n/a
0.0	n/a	n/a	n/a	n/a	n/a	0.0
n/a	n/a	n/a	n/a	n/a	n/a	n/a
0.0	n/a	n/a	n/a	n/a	n/a	0.0
n/a	n/a	n/a	n/a	n/a	n/a	n/a
422.5	474.6	544.4	558.1	591.0	622.0	0.0
31.1 %	12.3 %	14.7 %	2.5 %	5.9 %	5.2 %	n/a
	386.1	441.7	502.0	516.2	547.9	578.5

CANCOM SE

Key ratios (EUR m)	2009	2010	2011	2012	2013E	2014E	2015E
P&L growth analysis
Sales growth	1.6 %	36.2 %	14.7 %	2.5 %	5.9 %	5.2 %	3.5 %
EBITDA growth	21.3 %	100.7 %	31.6 %	12.2 %	9.0 %	9.8 %	9.2 %
EBIT growth	26.0 %	114.0 %	21.7 %	12.0 %	9.4 %	11.5 %	12.7 %
EPS growth	87.8 %	55.5 %	46.4 %	-2.1 %	22.5 %	14.2 %	11.7 %
Efficiency
Total operating costs / sales	97.6 %	96.3 %	95.6 %	95.4 %	95.0 %	94.8 %	94.5 %
Sales per employee	196.0	257.7	273.1	263.6	267.1	556.6	n/a
EBITDA per employee	5.3	10.3	12.5	13.3	13.8	30.1	n/a
Balance sheet analysis
Avg. working capital / sales	3.4 %	2.8 %	2.6 %	2.6 %	1.9 %	0.9 %	1.0 %
Inventory turnover (sales/inventory)	27.7	35.5	36.3	63.8	37.5	37.5	37.5
Trade debtors in days of sales	49.5	52.3	48.4	57.7	47.0	47.0	47.0
A/P turnover [(A/P*365)/sales]	50.1	49.6	48.9	50.3	51.0	51.0	51.0
Cash conversion cycle (days)	-3.9	-3.1	-6.3	-5.3	-11.9	-12.1	-12.4
Cash flow analysis
Free cash flow	6.0	8.8	17.3	3.6	24.6	15.5	17.6
Free cash flow/sales	1.7 %	1.9 %	3.2 %	0.6 %	4.2 %	2.5 %	2.7 %
FCF / net profit	118.4 %	113.1 %	150.3 %	31.4 %	161.9 %	89.2 %	90.6 %
FCF yield	3.4 %	5.0 %	9.8 %	1.8 %	12.6 %	7.9 %	9.0 %
Capex / depn	188.4 %	206.6 %	139.0 %	169.0 %	120.0 %	119.0 %	120.5 %
Capex / maintenance capex	137.6 %	133.1 %	151.6 %	n/a	124.5 %	125.0 %	84.3 %
Capex / sales	1.3 %	1.7 %	1.7 %	n/a	n/a	n/a	n/a
Security
Net debt	-3.5	-0.9	-18.5	-29.2	-49.8	-60.8	-73.8
Net Debt/EBITDA	0.0	0.0	0.0	0.0	0.0	0.0	0.0
Net debt / equity	-0.1	0.0	-0.3	-0.4	-0.5	-0.6	-0.6
Interest cover	5.4	8.0	8.3	9.7	15.1	22.7	25.6
Dividend payout ratio	30.7 %	19.7 %	26.7 %	34.7 %	29.9 %	26.2 %	26.2 %
Asset utilisation
Capital employed turnover	4.9	5.6	5.8	5.5	5.5	5.1	4.7
Operating assets turnover	20.1	18.9	21.5	16.4	23.7	22.6	21.8
Plant turnover	53.4	49.0	42.2	31.8	30.5	29.1	27.9
Inventory turnover (sales/inventory)	27.7	35.5	36.3	63.8	37.5	37.5	37.5
Returns
ROCE	10.5 %	19.5 %	20.6 %	21.1 %	21.6 %	22.0 %	22.0 %
ROE	11.5 %	15.4 %	19.0 %	14.2 %	16.6 %	16.6 %	16.2 %
Other
Interest paid / avg. debt	5.9 %	7.2 %	7.9 %	10.3 %	11.4 %	10.2 %	10.2 %
No. employees (average)	1777	1842	1994	2117	2213	1118	0
Number of shares	10.4	10.3	10.4	10.6	11.4	11.4	11.4
DPS	0.2	0.2	0.3	0.4	0.4	0.4	0.4
EPS reported	0.49	0.76	1.11	1.09	1.33	1.52	1.70
Valuation ratios
P/BV	4.1	3.5	2.9	2.4	2.1	1.9	1.6
EV/sales	0.5	0.4	0.3	0.3	0.2	0.2	0.2
EV/EBITDA	18.4	9.2	6.3	5.9	4.8	4.0	3.3
EV/EBITA	24.6	11.6	7.1	6.9	5.6	4.7	3.9
EV/EBIT	24.6	11.6	8.6	8.0	6.4	5.3	4.3
EV/FCF	29.1	19.9	9.1	46.1	5.9	8.7	6.9
Dividend yield	0.9 %	0.9 %	1.7 %	2.0 %	2.3 %	2.3 %	2.6 %

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

Company	Disclosure
CANCOM SE	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.

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(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 SE in the last 12 months

Buy	58.95 %	100.00 %
Sell	14.74 %	0.00 %
Hold	26.32 %	0.00 %

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 Marie-Curie-Strasse 24-28, 60439 Frankfurt am Main, Germany

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