CANCOM SE — Regulatory Filings 2012

Jul 31, 2012

CANCOM AG Germany - IT Services

Buy (old: Buy)				30-July-12
Price target: EUR 18.50 (old: EUR 18.50)			Tim Wunderlich, CFA Analyst
Price:	EUR 14.76	Next result:	Q2 2012: 09.08.12
Bloomberg:	COK GR	Market cap:	EUR 151.5 m	tim.wunderlich@ha-research.de
Reuters:	COKG.DE	Enterprise Value:	EUR 119.1 m	Tel.: +49 40 4143885 81

Prelim. Q2 in-line for EBIT and Net Profit; Good start into Q3

Preliminary Q2 figures released last week Friday (see next page) showed flat and lower-than-expected sales of € 127m (eH&A: € 134m) reflecting a strong comparison base and a shift of c. € 3-4m of revenues into Q3. The reason: Customers postponed purchases in April and May waiting for Apple's new MacBook Pro which was due in June but due to supply issues could only be delivered in July.

Accordingly, CANCOM had a strong start into Q3 with sales up by 15-20% yoy (eH&A). A discussion with management following the release of prelims revealed that the company has not experienced any economic headwinds on its home turf Germany (c. 90% of sales) and revenue should grow by 5-10% yoy in FY '12 (eH&A: 9%) indicating a return to growth in Q3 and Q4.

Despite the flat and lower-than-expected top-line EBIT rose by 8% yoy to € 4.9m which was in-line with expectations of € 5.0m. In light of no economies of scale this implies a very strong Q2 gross margin of c. 32% (eH&A) after 31% in Q2 '11, reflecting a shift from hardware to service sales and here especially Cloud Computing business, in our view. Here, CANCOM has a strong positioning thanks to its proprietary AHP platform which makes the implementation of a Cloud Solution faster and cheaper. The growth in Q2 EBIT is even more impressive considering that two internal projects, namely the introduction of a new webshop and the implementation of SAP at a subsidiary, should have eaten up some € 0.5m profit (eH&A).

EPS of € 0.33 were up 28% yoy and in-line with expectations of € 0.32 despite a tax rate of 38% reflecting a fiscal one-time effect. According to the company, the tax rate should normalise to levels of 30-31% going forward.

Achieving our FY '12 EBITDA estimates implies 16% yoy EBITDA growth in H2 versus 24% in H1. Hence, less dynamic growth in H2 is already anticipated given a softer macro climate. As such, estimates stay unchanged and CANCOM remains a BUY with a PT of € 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 %	1.0 %	1.0 %	2.0 %	2.0 %	2.7 %	2.7 %
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	0.5	0.4	0.3	0.2	0.2	0.2	0.1
EV/EBITDA	20.2	15.7	7.9	5.3	4.0	3.3	2.6
EV/EBIT	28.0	21.0	9.9	7.2	4.9	4.0	3.3
PER	48.3	30.7	16.0	12.9	9.5	8.4	7.7
Adjusted FCF yield	2.8 %	4.1 %	7.7 %	11.9 %	15.3 %	18.7 %	23.6 %

Source: Company data, Hauck & Aufhäuser Close price as of: 27.07.2012

Source: Company data, Hauck & Aufhäuser

High/low 52 weeks:	15.13 / 6.74
Price/Book Ratio:	2.1
Relative performance (TecDAX):
3 months	13.1 %
6 months	69.0 %
12 months	57.4 %

Changes in estimates

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

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.

EUR	Q2 12	Q2 12 est	Q2 11	yoy	Q1 12	qoq	H1 12	H1 11	yoy
Sales	127.0	134.0	126.9	0%	141.1	-10%	268.1	251.5	7%
EBITDA	6.4	6.4	6.1	5%	7.0	-9%	13.4	10.8	24%
EBITDA margin	5.0%	4.8%	4.8%	+ 0.2 pp	5.0%	+ 0.1 pp	5.0%	4.3%	+ 0.7 pp
EBIT	4.9	5.0	4.5	8%	5.3	-8%	10.2	7.6	33%
EBIT margin	3.9%	3.7%	3.6%	+ 0.3 pp	3.8%	+ 0.1 pp	3.8%	3.0%	+ 0.8 pp
Net profit	3.5	3.4	2.7	28%	2.0	69%	5.5	4.4	25%
Net margin	2.7%	2.5%	2.1%	+ 0.6 pp	1.4%	+ 1.3 pp	2.1%	1.7%	+ 0.3 pp
EPS	0.33	0.32	0.26	28%	0.20	69%	0.53	0.42	25%

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

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

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	6.6 %	3.9 %	5.8 %	11.4 %	11.2 %	9.7 %	11.1 %
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	3.9	3.5	3.0	2.5	2.1	1.7	1.5
EV/sales	0.5	0.4	0.3	0.2	0.2	0.2	0.1
EV/EBITDA	20.2	15.7	7.9	5.3	4.0	3.3	2.6
EV/EBITA	28.0	21.0	9.9	6.0	4.5	3.7	3.0
EV/EBIT	28.0	21.0	9.9	7.2	4.9	4.0	3.3
EV/FCF	15.6	24.9	17.0	7.7	7.0	7.3	5.7
Dividend yield	0.0 %	1.0 %	1.0 %	2.0 %	2.0 %	2.7 %	2.7 %

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 13.10 % 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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