CANCOM SE — Investor Presentation 2013

Mar 21, 2013

CANCOM AG Germany - IT Services

Buy (old: Buy)				21-March-13
	Price target: EUR 22.50	(old: EUR 22.50)		Tim Wunderlich, CFA Analyst
Price:	EUR 15.25	Next result:	Q1 15.05.13
Bloomberg:	COK GR	Market cap:	EUR 173.2 m	tim.wunderlich@ha-research.de
Reuters:	COKG.DE	Enterprise Value:	EUR 123.5 m	Tel.: +49 40 4143885 81

Analyst conference underpins investment case; Introducing '15E

Insights gathered from CANCOM's analyst conference (today) and Bechtle's (last week) underpins that CANCOM is the more attractive pick, in our view, as the company is quickly shifting its business model towards recurring and high-margin Cloud Computing revenues while Bechtle remains mainly a hardware player.

Cloud Computing (CC) should have generated c. 2.2m EBITDA in 2012, equalling a c. 30% EBITDA margin while explaining roughly 8% of group EBITDA. This makes it much more profitable than CANCOM's traditional eCommerce (0.8% EBITDA margin) and IT solutions businesses (4.3%).

CANCOM has several big CC deals in the pipeline which should be finished by mid-2013 and could raise recurring EBITDA derived from CC to almost € 5m on an annualised basis, in our view. On top, the company has 70 potential customers who are interested in its private cloud solution consulting capacity is the only bottleneck.

Hence, profitability in 2013E could be burdened temporarily by the need to train other top consultants in installing cloud solutions (i.e. opportunity cost) AND in up front costs from implementing large cloud projects.

However, CANCOM remains well on track to reach its goal of € 10m annual and recurring EBITDA derived from CC by 2015E. This means that CC should at least explain 30% of group EBITDA in the mid-term.

Still, CANCOM trades at only c. 5.5x EV/EBIT '13E compared to Bechtle valued at 7.0x EV/EBIT. In our view, the company should trade at a premium given that its business model will become more profitable and visible going forward.

Remains a BUY with a PT of € 22.50 based on DCF.

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 %	3%
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	1.0 %	1.0 %	2.0 %	2.3 %	2.6 %	2.6 %	2.9 %
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	0.4	0.3	0.3	0.3	0.2	0.2	0.2
EV/EBITDA	16.3	8.2	5.5	5.1	4.0	3.3	2.7
EV/EBIT	21.8	10.3	7.5	7.0	5.5	4.5	3.5
PER	31.7	16.6	13.4	14.3	11.5	10.0	9.0
Adjusted FCF yield	4.0 %	7.5 %	11.4 %	11.7 %	15.7 %	19.0 %	21.1 %

Source: Company data, Hauck & Aufhäuser Close price as of: 20.03.2013

Source: Company data, Hauck & Aufhäuser

High/low 52 weeks:	15.80 / 9.80
Price/Book Ratio:	1.9
Relative performance (TecDAX):
3 months	-0.3 %
6 months	12.5 %
12 months	35.8 %

Changes in estimates

		Sales	EBIT	EPS
old: 2013		591.0	22.6	1.34
∆	-	-	-
	old:	622.0	25.2	1.52
2014	∆	-	-	-
2015	old:	643.8	26.5	1.58
	∆	-	-	-

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	79.3 %
Elber Beteiligung	9.2 %
AGI	4.7 %
Axxion	3.0 %
Stefan Kober	2.3 %
Klaus Weinmann	1.5 %

Company description:

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

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 %	n/a
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 %

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 %

Cash flow statement (EUR m)	2009	2010	2011	2012	2013E	2014E	2015E
Net profit/loss	5.1	7.9	11.7	11.6	15.4	17.6	19.6
Depreciation of fixed assets (incl. leases)	2.4	3.8	2.8	4.0	4.8	5.0	5.3
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	3.7	3.4	3.2	3.4	3.0
Others	-0.6	3.0	4.7	2.9	0.0	0.0	0.0
Cash flow from operations before changes in w/c	6.9	14.7	22.9	21.9	23.4	26.0	27.9
Increase/decrease in inventory	-0.9	0.3	-6.3	6.2	-7.0	-0.8	-0.6
Increase/decrease in accounts receivable	0.8	-15.2	-5.2	-16.1	12.2	-4.0	-2.8
Increase/decrease in accounts payable	2.7	17.1	15.3	4.0	5.6	4.3	3.0
Increase/decrease in other working capital positions	1.1	0.0	0.0	0.0	0.0	0.0	0.0
Increase/decrease in working capital	3.8	2.2	3.8	-5.8	10.8	-0.5	-0.3
Cash flow from operating activities	10.7	16.9	26.7	16.1	34.2	25.5	27.6
CAPEX	4.7	8.1	9.4	12.5	9.6	10.0	10.0
Payments for acquisitions	0.4	10.5	3.6	0.1	0.0	0.0	0.0
Financial investments	-0.2	-0.1	-0.3	0.0	0.0	0.0	0.0
Income from asset disposals	2.3	1.1	4.8	2.0	0.0	0.0	0.0
Cash flow from investing activities	-2.6	-17.3	-7.9	-10.6	-9.6	-10.0	-10.0
Cash flow before financing	8.0	-0.4	18.8	5.5	24.6	15.5	17.6
Increase/decrease in debt position	0.1	8.1	-2.6	-11.9	-4.5	0.0	0.0
Purchase of own shares	0.2	-0.6	0.0	0.0	0.0	0.0	0.0
Capital measures	0.0	0.0	0.0	11.2	0.0	0.0	0.0
Dividends paid	0.0	1.5	1.6	3.3	4.0	4.5	4.5
Others	-1.0	-1.3	-1.6	-1.4	0.0	0.0	0.0
Effects of exchange rate changes on cash	0.0	0.1	0.0	0.0	0.0	0.0	0.0
Cash flow from financing activities	-1.1	5.9	-5.8	-5.3	-8.5	-4.5	-4.5
Increase/decrease in liquid assets	7.0	5.6	13.0	0.2	16.1	10.9	13.0
Liquid assets at end of period	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

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 %	n/a
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	3.8 %	5.6 %	11.1 %	2.1 %	14.2 %	8.9 %	10.1 %
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	3.6	3.1	2.6	2.2	1.9	1.7	1.5
EV/sales	0.4	0.3	0.3	0.3	0.2	0.2	0.2
EV/EBITDA	16.3	8.2	5.5	5.1	4.0	3.3	2.7
EV/EBITA	21.8	10.3	6.2	6.0	4.8	3.9	3.2
EV/EBIT	21.8	10.3	7.5	7.0	5.5	4.5	3.5
EV/FCF	25.7	17.6	8.0	40.0	5.0	7.3	5.7
Dividend yield	1.0 %	1.0 %	2.0 %	2.3 %	2.6 %	2.6 %	2.9 %

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.

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

Important Disclosures

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Contacts: Hauck&Aufhäuser Investment Banking

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