CANCOM SE — Regulatory Filings 2011

Nov 21, 2011

CANCOM AG Germany - IT Services

Buy (old: Buy)				15-November-11
	Price target: EUR 16.00	(old: EUR 16.00)		Tim Wunderlich Analyst
Price:	EUR 8.84	Next result:	Q4 2011: tba
Bloomberg:	COK GR	Market cap:	EUR 90.8 m	tim.wunderlich@ha-research.de
Reuters:	COKG.DE	Enterprise Value:	EUR 79.7 m	Tel.: +49 40 4143885 81

Roadshow Feedback Paris

We roadshowed CEO and founder Mr. Weinmann to Paris to meet existing and new investors. Questions centred around the following topics:

• Current business environment: Order intake in October and the beginning of November exceeded the company-internal expectations by a low double-digit amount as IT spending in Germany - which explains 91% of CANCOM's sales remained healthy carried mainly by SMEs investing in efficiency-raising measures. Unsurprisingly, the company has not seen any project delays or cancellations. CANCOM confirmed that H&A estimates of € 25m EBITDA in 2011E look very well achievable following the € 17.6m EBITDA after 9m '11 and the fact that evidence for a strong Q4 is mounting. This is important as Q4 may account for up to 40% of FY EBITDA.
• Prospects in Cloud Computing: Next to several smaller projects which were partly won due to the co-operation with IBM, CANCOM is working on six big projects with reputable names which are worth up to 20x the size of smaller deals each and were acquired within the last six months. These projects should not only throw off significant project sales but likely also recurring maintenance commission of up to € 80,000 per month per deal, in our view. The key differentiating factor of CANCOM's private cloud solution developed over several years is a standardised approach which makes the implementation of a Cloud solution much cheaper and faster for the customer.
• What to expect for 2012E: Investors were surprised to learn that roughly 75% of CANCOM's gross profit is quasi-recurring driven by a loyal customer base with average ties spanning ten years supplying a steady flow of project business year after year: even in 2009, which marked the worst slump in the company's history, sales were down by a mere 8% organically. Visibility on 2012E is strong especially as the majority of current service contracts run well into 2012E. With measures underway aimed at stripping out € 4m of costs by next year to further improve the company's lean set-up, CANCOM expects to need merely 0-3% of top-line growth to reach an EBITDA of € 27m in 2012E.
• Against this backdrop, the high valuation gap to Bechtle (25% on EV/EBITDA 2011E) and the low absolute valuation look unjustifiable. Remains a BUY; PT € 16.

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 %	1.7 %	1.7 %	2.5 %	2.8 %	3.1 %
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	0.3	0.3	0.2	0.2	0.1	0.1
EV/EBITDA	12.3	12.3	9.3	4.7	3.2	2.5	2.0
EV/EBIT	15.9	17.1	12.4	5.9	4.2	3.3	2.6
PER	19.0	29.0	18.4	9.6	8.1	7.1	6.6
Adjusted Free Cash Flow	5.8 %	4.6 %	6.9 %	12.8 %	20.2 %	26.1 %	33.2 %

yield Source: Company data, Hauck & Aufhäuser Close price as of: 14.11.2011

Source: Company data, Hauck & Aufhäuser

High/low 52 weeks:	11.40 / 6.74
Price/Book Ratio:	1.5
Relative performance (TecDAX):
3 months	21.5 %
6 months	14.5 %
12 months	-0.1 %

Changes in estimates

		Sales	EBIT	EPS
2011	old:	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:

90.1 %
3.0 %
2.5 %
2.5 %
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

Regional split (EUR m)	2007	2008	2009	2010	2011E	2012E	2013E
Domestic	0.0	322.2	386.1	491.6	471.8	502.0	524.6
yoy change	n/a	n/a	19.8 %	27.3 %	-4.0 %	6.4 %	4.5 %
Rest of Europe	0.0	0.0	36.4	57.7	58.3	62.0	64.8
yoy change	n/a	n/a	n/a	58.5 %	1.1 %	6.4 %	4.5 %
NAFTA	0.0	0.0	0.0	0.0	0.0	0.0	0.0
yoy change	n/a	n/a	n/a	n/a	n/a	n/a	n/a
Asia Pacific	0.0	0.0	0.0	0.0	0.0	0.0	0.0
yoy change	n/a	n/a	n/a	n/a	n/a	n/a	n/a
Rest of world	0.0	0.0	0.0	0.0	0.0	0.0	0.0
yoy change	n/a	n/a	n/a	n/a	n/a	n/a	n/a
TTL	0.0	322.2	422.5	474.6	530.1	564.0	589.4
yoy change	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	1.9 %	11.0 %	6.6 %	9.7 %	9.7 %	14.1 %	15.6 %
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	2.5	2.4	2.1	1.8	1.5	1.3	1.1
EV/sales	0.3	0.3	0.3	0.2	0.2	0.1	0.1
EV/EBITDA	12.3	12.3	9.3	4.7	3.2	2.5	2.0
EV/EBITA	14.8	17.1	12.4	5.9	3.7	2.9	2.3
EV/EBIT	15.9	17.1	12.4	5.9	4.2	3.3	2.6
EV/FCF	55.2	9.5	14.7	10.2	9.1	5.4	4.1
Dividend yield	0.0 %	0.0 %	1.7 %	1.7 %	2.5 %	2.8 %	3.1 %

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.

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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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