Budget points to stable earnings

Transcription

1 Utilities, Romania 08 February 2017 Conpet Budget points to stable earnings Conpet has published its budget for 2017E, as well as some projections for 2018E and 2019E. These point towards stable earnings going forward vs. our previous expectations of a small decline in profit. While management expects a small decline in terms of revenues, they also expect a corresponding decline in expenses. As a result, we have increased our earnings estimates for 2017E by 29% to RON 66m, and by 31% to RON 67m for 2018E. The company still holds a significant cash position, which is currently invested in governmental bills and generates a low return. We would see an eventual distribution of part of this cash position as a special dividend as a catalyst for our share prices, but we have not incorporated this in our model at this time. As a result of the changes in our earnings estimates, we maintain our HOLD rating, with a new price target (PT) of RON (up from RON 74.3), implying 9.7% upside. Earnings to stay strong over the coming years. The company has published its budget for 2017E, which indicates that earnings are likely to remain flat over the coming years. Transport volumes are likely to have peaked in 2016, as the Lukoil refinery worked at full capacity. We expect a fall in 2017E especially on the imports side where, according to the contracts signed with, Lukoil, the decline is likely to be in the range of 10-15%. This is also likely to translate into lower transport revenues (down 6% in 2017E). Still, given the expected cut in operating expenses, the decline is not likely to affect operating profit, in our view. As a result, we expect operating profit of around RON 75m for the next two years, before starting to decline later on. Potential for a special dividend. Conpet holds a total of RON 407m in cash and equivalents (up 7% yoy). Some of this results from the development quota (a form of tax deductible expense similar to depreciation), but part of it could be distributed as a dividend, especially given that the investment plan does not require such a high cash position and the company does not have any debt. An attempt to distribute a DPS of RON 8.3 last year (implying a yield of more than 10% at the time) failed as the state voted against this distribution. Given the stretched state budget this year, however, we see a higher chance of a special dividend being passed, should one be proposed again at this year s AGM (usually called for at the end of March). Dependency on a small number of clients. While management has some visibility over the short term, e.g., signed contracts with OMV Petrom and Lukoil for 2017E, we note that these companies being Conpet s two major clients creates some risks related to the financials. While the transport of oil via pipelines is definitely cheaper than by other means, volumes contracted by Petrom and Lukoil will depend on market conditions, and domestic transport should begin declining due to Petrom s mature field profiles. Trading at a discount to its peers. On a 2018E EV/EBITDA of 3.8x, Conpet trades at a 45% discount to its peers, while its P/E of 12.5x is in line with its peers. The discount on EV/EBITDA is generated by Conpet s high cash position, which produces a low return, as seen in the high P/E ratio. A special dividend could lead to the P/E dropping and EV/EBITDA increasing. Expected events Hold Maintained Price: RON 96.0 Price target: RON (from RON 74.3) Results call 29 March 2017 AGM 26 April 2017 Key data Market Cap RON 806.8m Free float 41% Shares outstanding 8.65m Major shareholder RO State Bloomberg code COTE RO BET Index 7,568 Price performance 52-w range RON w performance 22% Relative performance 0% Conpet 12M share price performance Feb-16 May-16 Aug-16 Nov-16 COTE RO BET Index EQUITY RESEARCH Year Sales Net Profit Shares Out EPS EPS P/E EV/EBITDA ROE Dps Dividend (RON bn) (RON m) (m) (RON) growth (x) (x) (%) (RON) yield % % % % % % % % % 2017E % % % 2018E % % % 2019E % % % Analysts: Lucian Albulescu, CFA, Jonathan Lamb Prague: lucian.albulescu@wood.cz, jonathan.lamb@wood.com Website:

2 Contents Valuation... 3 Changes in our forecasts... 4 Risks... 5 Financials... 6 Important disclosures... 8 Closing Prices as of 07 February by WOOD & Company Financial Services, a.s. All rights reserved. No part of this report may be reproduced or transmitted in any form or by any means electronic or mechanical without written permission from WOOD & Company Financial Services, a.s. This report may not be lent, resold, hired out or otherwise disposed of by way of trade in any form of binding or cover other than that in which it is published without written permission from WOOD & Company Financial Services, a.s. Requests for permission to make copies of any part of this report should be mailed to: WOOD & Company Financial Services a.s. Palladium, Namesti Republiky 1079/1a, Prague 1 Czech Republic tel.: fax: http//: Conpet 2 WOOD & Company

3 Valuation Our valuation for Conpet is based on an average of: i) our DCF calculations; and ii) a DDM valuation. To the result, we have separately added the net cash position, discounted by 40%. We have decided to add the cash position to the DDM valuation as well, given the potential for a special dividend. Valuation summary Equity value (RON m) Per share 1. DCF DDM Average (50:50) Adjusted with cost of equity 83.6 Cash discounted by 40% Value of land plots that belong to the state Resulting price Current price 96.0 Upside 9.7% Source: WOOD Research DCF assumptions: A risk free rate (RFR) of 4.5%. An equity risk premium (ERP) of 4.5% and a beta of 1.0x. A terminal growth rate of 1.0%. DCF valuation 2017E 2018E 2019E 2020E EBIT Corporate tax rate [T] 16.0% 16.0% 16.0% 16.0% EBIT*(1-T)=NOPAT Depreciation & amortisation Development quota (net) Cash from working capital CAPEX [I] Unleveraged free cash flow [FCF] Discount factor Present value of FCFs [PV:FCF] Sum of [PV:FCF] 219 Long term FCF growth rate 1.0% Residual value at horizon (modernisation quota adjusted) 601 PV of residual value 418 EV 636 Number of shares 8.66 Value per share 73.5 Source: WOOD Research WACC calculation E Beta 1.1 Risk free rate 4.50% Market premium 4.50% Cost of equity 9.9% Cost of debt (pre-tax) 6.0% Marginal tax rate 16.0% Cost of debt after tax 5.0% Weight k(e) 100.0% Weight k(d) 0.0% WACC % 9.9% Source: WOOD Research DDM assumptions We use a cost of equity of 9.0%, a 4.5% RFR, a 4.5% ERP and a beta of 1.0x. To forecast the dividends, we have applied a payout varying from 50% to 80% (in 2020E, at the end of the forecast period). A 1.0% terminal growth rate. Conpet 3 WOOD & Company

4 DDM valuation 2016E 2017E 2018E 2019E 2020E Dividends Discount factor Present value Sum 248 Long term FCF growth rate 1.0% Residual value at horizon 644 PV of residual value 433 EV 680 Number of shares 8.66 Value per share 78.6 Source: WOOD Research Conpet: peer comparison Company Mkt cap P/E (x) EV/EBITDA Dividend yield (EURm) 2017E 2018E 2019E 2017E 2018E 2019E 2017E 2018E 2019E Transgaz Sa Medias RO Transelectrica Sa RO Societatea Energetica Electr RO 1, Enagas Sa SP 5, Snam Spa IT 12, Engie FR 26, Red Electrica Corporacion Sa SP 9, Terna Spa IT 8, Elia System Operator Sa/Nv BE 2, n.a n.a. Cez As CZ 8, E.On Se GE 13, Polskie Gornictwo Naftowe I PD 7, Rwe Ag GE 7, Energa Sa PD Average Conpet Discount/premium 3.5% 4.0% 11.7% -45.0% -44.7% -37.2% 47.3% 45.0% 21.9% Source: WOOD Research, Bloomberg Changes in our forecasts Income statement: old vs. new 2017E 2018E 2019E New Old Change New Old Change New Turnover % % 362 Domestic transport % % 280 Import % % 80 Modernisation quota % % 36 Total operating revenues % % 405 Total volumes transported (mt) % % 7 Personnel % % 113 Depreciation % % 43 Third parties % % 101 Royalties % % 28 Others % % 71 Modernisation quota % % 54 Total operating expenses % % 333 EBITDA % % 115 EBIT % % 72 Financial profit % % 3 Pre-tax profit % % 75 Net profit % % 63 Dividends % % 57 Source: WOOD Research Conpet 4 WOOD & Company

5 Risks Regulatory risk. We assess the regulatory risk as being high, as we believe that the regulatory framework is less complex and obsolete vs. that for other regulated monopolies, such as Transgaz or Transelectrica, leaving room for multiple interpretations and implying a much higher dependency on the regulator s decision. This could directly influence the profit that Conpet can achieve. Investments needed to maintain the system in an active fashion. The company might be subject to making several necessary investments in order to maintain the system as operational, and in line with environmental regulations. High dependency on a small number of clients. Revenues related to the services undertaken for OMV Petrom represented close to 80% of the total revenues in Petrom s oil fields are mature and production is on a downward trend. We assess this dependency as high, representing a significant risk related to the future of Conpet. Political risk. Conpet is state-owned, with the state s decisions regarding the operation of the company affecting its profitability and financial position. While private management has been implemented, there might still be misalignments between the interest of the minority shareholders and those of the state. Legal risks. In 2013, the Court of Audit asked the company to increase the value of its share capital with some state-owned land plots that the company is using. The share capital increase can only be undertaken in the presence of shareholders holding more than 75% of the shares, and quorum was not reached. As a consequence, the Court of Audit s decision could not be implemented. If it were eventually implemented, Conpet would need to increase its share capital by RON 54m (the value of the land plots), representing 7% of its market cap. We have already adjusted our valuation with the value of the land plots. Low market liquidity. The average traded volumes over the past 12 months have been as low as EUR 50k per day, which creates a risk of higher price fluctuations. A switch from domestic to import volumes might cause a loss of margin. Our assumptions are that the overall volume of oil processed in the country is not going to decline significantly, but that a reduction in the oil produced internally by OMV Petrom should be replaced with imports. Profits on the import lines are lower than on the domestic pipelines currently, due mainly to the low capacity utilisation; however, once the volumes grow, economies of scale could also help to improve margins (as the costs are fixed). Lukoil can switch production to Burgas. According to the company, a significant increase in the tariffs charged to Lukoil for imports may not be possible, as it could switch production to the Burgas refinery. Oil Terminal tariffs influence import tariffs. The amounts paid by Lukoil for importing oil are dependent on both the transport tariffs charged by Conpet and those charged by Oil Terminal, which handles the discharge of oil from ships and loading into the pipelines. Conpet 5 WOOD & Company

6 Financials Income statement RONm E 2018E 2019E Turnover Domestic transport Import Modernisation quota Total operating revenues Total volumes transported (mt) Personnel Depreciation Third parties Royalties Others Modernisation quota Total operating expenses EBITDA EBIT Financial profit Pre-tax profit Net profit Dividends Source: Company data, WOOD Research Balance sheet RONm E 2018E 2019E Fixed assets Current assets Trade and other receivables Cash and bank balances Total Assets ,030 1,033 1,038 Equity Long-term debt Short-term debt Trade and other payables Other liabilities Total Equity and Liabilities ,030 1,033 1,038 Source: Company data, WOOD Research Cash-flow statement RONm E 2018E 2019E Pre-tax income Tax Depreciation & amortisation Other non-cash adjustments Changes in working capital Other adjustments Operating cash flow Purchase of fixed assets Investing cash flow Dividends, net Long-term debt issued (repaid) Financing cash flow Cash balance changes Beginning cash Change in cash flow Ending cash Source: Company data, WOOD Research Conpet 6 WOOD & Company

7 Ratios E 2018E 2019E Number of shares (m) Net debt (RONm) EPS (RON) EPS growth 61% 22% 5% 2% 2% -5% Dividend (RONm) DPS (RON) Payout ratio 102% 103% 95% 92% 90% 90% Dividend yield 6% 8% 7% 7% 7% 7% BVPS (RON) ROE 7% 8% 8% 8% 8% 8% PER (x) EV/EBITDA (x) EV/EBITDA (x) adjusted for the development quota P/BV (x) Source: Company data, WOOD Research Conpet 7 WOOD & Company

8 Important disclosures This investment research is published by Wood & Company Financial Services, a.s. ( Wood & Co ) and/or one of its branches who are authorised and regulated by the CNB as Home State regulator and in Poland by the KNF, in Slovakia by the NBS, in Italy by the CONSOB and in the UK by the FCA as Host State regulators. Wood s ratings and price targets history for Conpet Rating Price target 22/10/2015 HOLD 03/03/2015 RON /02/2017 RON Explanation of Ratings BUY: The stock is expected to generate total returns of over 15% during the next 12 months as measured by the target price. HOLD: The stock is expected to generate total returns of 0-15% during the next 12 months as measured by the tnarget price. SELL: The stock is expected to generate a negative total return during the next 12 months as measured by the target price. RESTRICTED: Financial forecasts, and/or a rating and/or a target price is restricted from disclosure owing to Compliance or other regulatory/legal considerations such as a blackout period or a conflict of interest. NOT RATED: Suspension of rating after 30 consecutive weekdays where the current price vis-à-vis the target price has been out of the range dictated by the current BUY/HOLD/SELL rating. COVERAGE IN TRANSITION: Due to changes in the Research team, the disclosure of a stock s rating and/or target price and/or financial information are temporarily suspended. Equity Research Ratings (as of 8 February 2017) Buy Hold Sell Restricted Not rated Coverage in transition Equity Research Coverage 50% 41% 9% 1% N.A.% 7% IB Clients 1% 1% N.A. N.A. N.A. N.A. Securities Prices Prices are taken as of the previous day s close on the home market unless otherwise stated. Valuation & Risks Analysis of specific risks to set stock target prices highlighted in our investment case(s) are outlined throughout the report. For details of methodologies used to determine our price targets and risks related to the achievement of the targets referred to in the main body of the report or at in the Section Corporate Governance or via the link Users should assume that the investment risks and valuation methodology in Daily news or flash notes not changing our estimates or ratings is as set out in the most recent substantive research note on that subject company and can be found on our website at Wood Research Disclosures (as of 8 February 2017) Company Disclosures AT&S 5 BRD 5 BZ WBK 5 CD Projekt 5 CETV 5 CEZ 5 Conpet 1 DO&CO 1 Erste Group Bank 5 Enea 5 Energa 5 Fortuna 5 S.C. Fondul Proprietatea S.A. 1, 4, 5 Getin Noble Bank 5 GTC 5 ITG 1, 3 Immofinanz 5 IPF 5 JSW 5 KGHM 5 Komercni 5 mbank 5 MedLife 1, 2, 3 Millennium 5 MONETA Money Bank 1, 2, 3, 5 Netia 5 Orange PL 5 Pekao 5 PGE 5 Philip Morris 5 PKO BP 1, 2, 3, 5 PKN 5 PZU 5 RC2 4 Romgaz 5 SIF2 10 SNP 3, 5 O2 CR 1, 4, 5 Transilvania 5 Transgaz 1 WSE 1 Warimpex 1, 5 # Description 1 The company currently is, or in the past 12 months was, a client of Wood & Co or its affiliated companies for the provision of investment banking services. 2 In the past 12 months, Wood & Co or its affiliated companies have received compensation for Corporate Finance/Investment Banking services from this company. 3 In the past 12 months, Wood & Co or any of its affiliated companies have been lead manager, co-lead manager or co-manager of a public offering of the company s financial instruments. 4 Wood & Co acts as corporate broker to this company and/or Wood & Co or any of its affiliated companies may have an agreement with the company relating to the provision of Corporate Finance/Investment Banking services. 5 Wood & Co or any of its affiliated companies is a market maker or liquidity provider in relation to securities issued by this company. 6 In the past 12 months, Wood & Co, its partners, affiliated companies, officers or directors, or any authoring analyst involved in the preparation of this investment research has provided services to the company for remuneration, other than normal course investment advisory or trade execution services. 7 Those persons identified as the author(s) of this investment research, or any individual involved in the preparation of this investment research, have purchased/received shares in the company prior to a public offering of those shares, and the price at which they were acquired along with the date of acquisition are disclosed above. 8 The authoring analyst, a member of the authoring analyst's household, or any individual directly involved in the preparation of this investment research has a direct ownership position in securities issued by this company. 9 A partner, director, officer, employee or agent of Wood & Co and its affiliated companies, or a member of his/her household, is an officer, or director, or serves as an advisor or board member of this company. Conpet 8 WOOD & Company

9 10 As of the month end immediately preceding the date of publication of this investment research Wood & Co or its affiliate companies, in the aggregate, beneficially owned 1% or more of any class of the total issued share capital or other common equity securities of the company or held a material non-equity financial interest in this company. 11 As of the month end immediately preceding the date of publication of this investment research the relevant company owned 1% or more of any class of the total issued share capital in Wood & Co or any of its affiliated companies. 12 Other specific disclosures as described above. WOOD & Company announces that its affiliated company WOOD & Company Funds SICAV p.l.c (through its mutual funds) increased its stake in Pegas Nonwovens to 22.33%. Some entities of WOOD & Company Group are investors of these mutual funds. The authoring analysts who are responsible for the preparation of this investment research have received (or will receive) compensation based upon (among other factors) the Corporate Finance/Investment Banking revenues and general profits of Wood & Co. However, such authoring analysts have not received, and will not receive, compensation that is directly based upon or linked to one or more specific Corporate Finance/Investment Banking activities, or to recommendations contained in the investment research. Wood & Co and its affiliated companies may have a Corporate Finance/Investment Banking or other relationship with the company that is the subject of this investment research and may trade in any of the designated investments mentioned herein either for their own account or the accounts of their customers, in good faith or in the normal course of market making. Accordingly, Wood & Co or their affiliated companies, principals or employees (other than the authoring analyst(s) who prepared this investment research) may at any time have a long or short position in any such designated investments, Related designated investments or in options, futures or other derivative instruments based thereon. Wood & Co manages conflicts of interest arising as a result of preparation and publication of research through its use of internal databases, notifications by the relevant employees and Chinese Walls as monitored by Compliance. For further details see our website at in the Section Corporate Governance or via the link The information contained in this investment research has been compiled by Wood & Co from sources believed to be reliable, but (with the exception of the information about Wood & Co) no representation or warranty, express or implied, is made by Wood & Co, its affiliated companies or any other person as to its fairness, accuracy, completeness or correctness. Wood & Co has not independently verified the facts, assumptions, and estimates contained herein. All estimates, opinions and other information contained in this investment research constitute Wood & Co judgement as of the date of this investment research, are subject to change without notice and are provided in good faith but without legal responsibility or liability. Wood & Co salespeople, traders, and other professionals may provide oral or written market commentary or trading strategies to our clients and our proprietary trading desk that reflect opinions that are contrary to the opinions expressed in this investment research. Wood & Co affiliates, proprietary trading desk, and investing businesses may make investment decisions that are inconsistent with the recommendations or views expressed in this investment research. This investment research is provided for information purposes only and does not constitute an offer or solicitation to buy or sell any designated investments discussed herein in any jurisdiction where such offer or solicitation would be prohibited. As a result, the designated investments discussed in this investment research may not be eligible for sale in some jurisdictions. This investment research is not, and under no circumstances should be construed as, a solicitation to act as a securities broker or dealer in any jurisdiction by any person or company that is not legally permitted to carry on the business of a securities broker or dealer in that jurisdiction. This material is prepared for general circulation to clients and does not have regard to the investment objectives, financial situation or particular needs of any particular person. Investors should obtain advice based on their own individual circumstances before making an investment decision. To the fullest extent permitted by law, none of Wood & Co, its affiliated companies or any other person accepts any liability whatsoever for any direct or consequential loss arising from or in connection with the use of this material. For United Kingdom or European Residents: This investment research is for persons who are Eligible Counterparties or Professional Clients only and is exempt from the general restrictions in section 21 of the Financial Services and Markets Act 2000 (or any analogous legislation) on the communication of invitations or inducements to engage in investment activity on the grounds that it is being distributed in the United Kingdom only to persons of a kind described in Article 19(5) (Investment Professionals) and 49(2) (High Net Worth companies, unincorporated associations etc) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (as amended). It is not intended to be distributed or passed on, directly or indirectly, to any other class of persons. This material is not for distribution in the United Kingdom or Europe to retail clients, as defined under the rules of the Financial Conduct Authority. For United States Residents: This investment research distributed in the United States by Wood & Co, and in certain instances by Enclave Capital LLC ( Enclave ), a U.S registered broker dealer, only to major U.S. institutional investors, as defined under Rule 15a-6 promulgated under the US Securities Exchange Act of 1934, as amended, and as interpreted by the staff of the US Securities and Exchange Commission. This investment research is not intended for use by any person or entity that is not a major U.S institutional investor. If you have received a copy of this research and are not a major U.S institutional investor, you are instructed not to read, rely on or reproduce the contents hereof, and to destroy this research or return it to Wood & Co or to Enclave. Analyst(s) preparing this report are employees of Wood & Co who are resident outside the United States and are not associated persons or employees of any US registered broker-dealer. Therefore the analyst(s) are not be subject to Rule 2711 of the Financial Industry Regulatory Authority (FINRA) or to Regulation AC adopted by the U.S Securities and Exchange Commission (SEC) which among other things, restrict communications with a subject company, public appearances and personal trading in securities by a research analyst. Any major U.S Institutional investor wishing to effect transactions in any securities referred to herein or options thereon should do so by contacting a representative of Enclave Capital LLC. Enclave is a broker-dealer registered with the SEC and a member of FINRA and the Securities Investor Protection Corporation. Its address is 19 West 44th Street, Suite 1410, New York, NY and its telephone number is Wood & Co is not affiliated with Enclave Capital LLC or any other U.S registered broker-dealer. Conpet 9 WOOD & Company

10 CONTACTS Czech Republic namesti Republiky 1079/1a Palladium Praha 1 Czech Republic Tel Fax Romania Metropolis Center Grigore Alexandrescu St Bucharest 1 Tel.: Research Co-Head of Research/ Head of Research Poland Marta Jezewska-Wasilewska marta.jezewska-wasilewska@wood.com Poland Skylight Zlote Tarasy Zlota Warszawa Poland Tel Fax Co-Head of Research/Head of Greek Research Alex Boulougouris alex.boulougouris@wood.com UK City Point, 15 th Floor 1 Ropemaker Street London EC2Y 9HT Tel Head of Turkey/Industrials Oytun Altasli oytun.altasli@wood.com Italy Via Vittor Pisani, Milan Italy Tel Macroeconomics Kristen Andrasko/ Sadiq Razak Co-Heads of Equities / kristen.andrasko@wood.com sadiq.razak@wood.com Bloomberg page WUCO Raffaella Tenconi raffaella.tenconi@wood.com Consumer/Industrials Lukasz Wachelko lukasz.wachelko@wood.com Energy Jonathan Lamb jonathan.lamb@wood.com Romania Lucian Albulescu lucian.albulescu@wood.com Utilities/Mining/Pharma Bram Buring bram.buring@wood.com Financials/Turkey Can Demir can.demir@wood.com Non-banks financials Jerzy Kosinski jerzy.kosinski@wood.com Metals/Mining Andy Jones andrew.jones@wood.com Consumer/Industrials Gabriela Burdach gabriela.burdach@wood.com Real Estate Jakub Caithaml Consumer/Industrials Maciej Wardejn maciej.wardejn@wood.com Poland Pawel Wieprzowski pawel.wieprzowski@wood.com Poland Piotr Raciborski piotr.raciborski@wood.com Ondrej Slama ondrej.slama@wood.com Jakub Mician jakub.mician@wood.com Sales Head of Sales Kristen Andrasko kristen.andrasko@wood.cz Jan Koch jan.koch@wood.com Piotr Kopec piotr.kopec@wood.com Ioana Pop ioana.pop@wood.com Vinay Ruparelia vinay.ruparelia@wood.com Grzegorz Skowronski grzegorz.skowronski@wood.com Jan Thomson jan.thomson@wood.com Kostas Tsigkourakos kostas.tsigkourakos@wood.com Markus Ulreich markus.ulreich@wood.com Tatiana Sarandinaki Enclave Capital in association with WOOD & Company tsarandinaki@wood-enclave.com Sales Trading and Execution Services Ashley Keep ashley.keep@wood.com Jennifer Ewing jennifer.ewing@wood.com Jan Jandak jan.jandak@wood.com Zuzana Mora zuzana.mora@wood.com Ermir Shkurti ermir.shkurti@wood.com Martin Stuchlik m.stuchlik2@wood.com Vladimir Vavra vladimir.vavra@wood.com RECENTLY PUBLISHED REPORTS Date Company/Sector Title Analyst 07/02/17 MedLife A healthy play on the Romanian consumer Bram Buring, Lucian Albulescu 06/02/17 Mytilineos/METKA Rally not over yet Alex Boulougouris, Bram Buring 02/02/17 The Rear-View Mirror CEE markets Polish stock market the top performer in January Rersearch Team 30/01/17 Romanian Utilities Diminishing marginal utility Lucian Albulescu, Bram Buring 30/01/17 Turkish Telecoms Valuation is not so taxing for TCELL Oytun Altasli, Piotr Raciborski 26/01/17 Cypriot Banks The boys are back in town! Alex Boulougouris, Can Demir 25/01/17 OPAP VLTs not yet priced in Lukasz Wachelko, Jakub Mician 24/01/17 Ciech No splash in soda ash Maciej Wardejn, Lukasz Wachelko 24/01/17 Synthos Long-awaited bounce back Maciej Wardejn, Lukasz Wachelko 20/01/17 Polish Banks 4Q16E previews Jerzy Kosinski Although the information contained in this report comes from sources Wood & Company believes to be reliable, we do not guarantee its accuracy, and such information may be incomplete or condensed. All opinions and estimates included in this report constitute our judgment as of this date and are subject to change without notice. This report is for information purposes only and is not intended as an offer or solicitation with respect to the purchase or sale of any security.