First Take 30/04/2015

Transcription

1 First Take Companies Recommendation * Price target * Page BASF SE Hold EUR 2 Continental AG Buy EUR 3 Fuchs Petrolub SE Sell EUR 4 HOCHTIEF AG Buy EUR 5 Leifheit AG Buy EUR 6 Linde AG Hold EUR 7 SHW AG Buy EUR 8 Ströer Media SE Buy EUR 9 Disclaimer 10 * as per last working day Bankhaus Lampe Düsseldorf, +49 (0) , research@bankhaus-lampe.de See end of document for more details.

2 BANKHAUS LAMPE // 2 BASF SE Strong Chemicals results in Q1 Hold EUR Bloomberg: BAS EUR WKN: BASF11 Chemicals 52 week high week low DAX YTD 10.9% 1 month -0.1% 12 months 5.1% BASF reported good quality Q1 results with significantly better-than-expected earnings in its Chemicals activities and in Agricultural Solutions. EBIT before special items in Oil & Gas was higher than expected as well, but this, in our view, was mainly driven by a one-off impact in Natural Gas Trading. The Others segment was significantly impacted by an increase in provisions for the long-term incentive programme and therefore showed much higher costs than expected. A higher-than-expected tax rate led to a miss in EPS. Operating cash flow was strong and improved 37%; the FCF increased by 350 m. in EUR m Q Q1 2015e (BHL) Q % yoy Sales 20,067 19,317 19, % EBIT 1,995 1,875 2, % EBIT before special items 2,070 1,990 2, % EPS (in ), adjusted % Source: Company information, Bankhaus Lampe Research The operating results for Q1 were strong, in our view, and of good quality. As expected, BASF reiterated the guidance for A conference call will start at 8:30 CET. Market Cap (m EUR) 81,809 No. of shares (m) 918 Free float 100.0% Trading vol. Ø (m EUR) Next event 24/07/2015 Quarterly Results Heiko Feber, Phone: +49 (0) heiko.feber@bankhaus-lampe.de in m EUR e 2016e 2017e Sales 73,973 74,326 76,037 78,471 80,904 EBIT 7,160 7,626 7,451 8,121 8,738 EBIT margin 9.7% 10.3% 9.8% 10.3% 10.8% Net financial debt 12,563 13,647 13,561 12,319 9,827 Free cash-flow 2,106 2,462 2,519 3,763 5,100 EPS (in EUR) DPS (in EUR) Dividend yield 3.5% 4.0% 3.3% 3.4% 3.6% EV/Sales EV/EBIT Price Earnings ratio (P/E)

3 BANKHAUS LAMPE // 3 Continental AG Q1 headline figures out - earnings in line Buy EUR EUR Bloomberg: CON WKN: Automotive 52 week high week low DAX YTD 4.9% 1 month 1.5% 12 months -0.7% The sales figures were surprisingly strong, most likely due to positive FX effects. The adj. EBIT was more or less in line with our forecasts and street expectations. Integration costs and one-off expenses for Veyance burdened the results by 37 m Conti considers its start to the year to be very encouraging as the end markets were only sluggish in its view. We expect an improvement of the replacement tyre market in Europe as well as an uptick in European car production in the months ahead Conti sales and earnings are expected to improve in the coming quarters, according to CEO Degenhart BHL Consensus Continental [Mio. ] pq Q1 2015e Q1 2015e Q % yoy Sales ,6% Automotive na Rubber Group na EBIT adj ,7% EBIT adj.-marge 10,4% 11,2% 11,3% 11,2% -0,8 PP EBIT ,0% EBIT-Marge 0,0% 10,8% 10,8% 10,6% -10,6 PP Net income (after min.) na EPS [ ] - 3,22 3,20 2,87 na Source: Company information, Bankhaus Lampe Research Market Cap (m EUR) 42,641 No. of shares (m) 200 Free float 54.0% This is a solid start to the year and the company is on track to meet its FY guidance, but we currently see no reason to increase our estimates significantly. We are leaving our estimates, rating and PT unchanged until next week. More details are due to follow when the full set of figures is published on Thursday, 7 May Trading vol. Ø (m EUR) 82.8 Next event 07/05/2015 Quarterly Results in m EUR e 2016e Sales 32,736 33,331 34,496 37,978 40,757 EBIT 3,186 3,264 3,391 4,045 4,389 EBIT margin 9.7% 9.8% 9.8% 10.7% 10.8% Net financial debt 5,754 4,558 3,039 3,312 2,031 Free cash-flow 1,653 1,818 2, ,927 EPS (in EUR) DPS (in EUR) Christian Ludwig, CFA Phone: +49 (0) christian.ludwig@bankhaus-lampe.de Dividend yield 2.6% 1.6% 1.7% 1.5% 1.7% EV/Sales EV/EBIT Price Earnings ratio (P/E)

4 BANKHAUS LAMPE // 4 Fuchs Petrolub SE Q1 benefits from FX effects Sell EUR EUR Bloomberg: FPE3 WKN: Basic Resources 52 week high week low MDAX YTD -4.9% 1 month 2.0% 12 months -4.3% Fuchs Petrolub benefited from positive FX effect in Q1 and therefore showed higher-than-expected sales compared to consensus expectations. The EBIT beat consensus expectations and slightly missed BHLe. The main disappointment in our view is the EBIT margin of only 16.6%. We had expected 17% and the consensus forecast 16.9%. Fuchs Petrolub has become more optimistic for FY Should the euro remain weak, EBIT and earnings after tax are expected to increase by a mid to higher single-digit percentage. Up until now, the company projected low single-digit growth. In terms of free cash flow, Fuchs Petrolub reiterated its expectation that it should once again exceed 150 m. Market Cap (m EUR) 5,120 No. of shares (m) 71 Free float 100.0% Trading vol. Ø (m EUR) 5.1 The Q1 results are decent, in our view, although the margin is slightly disappointing. The improved outlook for FY 2015 is in line with our expectations for a sales increase of 7.1% and an increase in EBIT of 7.7%. Fuchs Petrolub will hold a conference call today at 14:30 CET. Next event 06/05/2015 AGM Heiko Feber, Phone: +49 (0) heiko.feber@bankhaus-lampe.de in m EUR e 2016e 2017e Sales 1,832 1,866 1,998 2,078 2,161 EBIT EBIT margin 17.1% 16.8% 16.9% 17.0% 17.0% Net financial debt Free cash-flow EPS (in EUR) DPS (in EUR) Dividend yield 2.0% 2.3% 2.2% 2.3% 2.5% EV/Sales EV/EBIT Price Earnings ratio (P/E)

5 BANKHAUS LAMPE // 5 HOCHTIEF AG CIMIC (previously Leighton) again the profit earner Buy EUR EUR Bloomberg: HOT WKN: Construction 52 week high week low MDAX YTD -1.9% 1 month -1.3% 12 months 2.6% Leighton has changed its name to CIMIC (Construction, Infrastructure, Mining and Concessions) in an attempt to distance itself from corruption allegations. The business remains the profit earner within Hochtief. CIMIC (HOT Asia-Pacific) contributed m, or 72%, to group EBT ( m). There was more good news: The other two regions (Americas doubled EBT) were also successful in improving their earnings in the first quarter (see table below). Hochtief confirmed its outlook for FY 2015 today including growth of 15-35% in underlying net profit from 190 m in 2014 to m. Strategy remains unchanged: de-risk the balance sheet and improve earnings quality in all three regions. In Q1, margins improved in all regions, and we therefore believe that Hochtief is on track to achieving its targets. According to ACS s CEO Florentino Perez, Marcelino Fernandez Verdes might return to ACS after the successful streamlining at Hochtief and CIMIC. He would make a good successor to Perez at ACS, in our view, although Perez does not appear to be ready for retirement. BHL Hochtief AG [ m] Q Q1 2015e Q % yoy Sales 5058,9 5065,5 4881,5 3,6% EBT total operating 151,2 144,6 99,5 45,3% EBT - Americas operating 46,4 36,8 22,7 62,1% EBT - Asia / Pacific operating 108,8 110,8 84,4 31,3% EBT - Europe operating 2,4 2,0-7,7 >-100% EBT-margin 3,0% 2,9% 2,0% 1 PP Net income (after min.) operating 60,1 50,5 41,7 44,1% EPS [ ] 0,88 0,73 0,60 46,7% Source: Company information, Bankhaus Lampe Research, Market Cap (m EUR) 4,793 No. of shares (m) 69 Free float 27.9% Trading vol. Ø (m EUR) 6.2 On 6 May, the AGM is to decide on extending the share buy-back programme as well as the dividend proposal of 1.90 (incl bonus). These factors should support the equity story going forward. The strong start to the year fully supports our BUY rating and our PT of Next event 06/05/2015 AGM Marc Gabriel, CIIA, CEFA Phone: +49 (0) marc.gabriel@bankhaus-lampe.de in m EUR e 2016e 2017e Sales 22,499 22,099 23,904 24,597 25,580 EBT EBT margin 2.4% -0.8% 2.0% 2.2% 2.2% Net financial debt Free cash-flow , EPS (in EUR) DPS (in EUR) Dividend yield 2.4% 3.2% 2.9% 2.9% 3.2% EV/Sales EV/EBT Price Earnings ratio (P/E)

6 BANKHAUS LAMPE // 6 Leifheit AG Ad-hoc supports BUY case Buy EUR EUR Bloomberg: LEI WKN: Consumer 52 week high week low Prime All Share YTD -12.3% 1 month -1.3% 12 months -7.3% Market Cap (m EUR) 230 No. of shares (m) 5 Free float 76.8% Trading vol. Ø (m EUR) 0.21 Yesterday afternoon, Leifheit published an ad hoc and increased its EBIT guidance for 2015 on the back of the Q1 performance. The company is now targeting an EBIT of between 19 m and 20 m. Up to now it had assumed that group earnings would be in line with the previous year s adjusted result of 16.4 m. The numbers show that the guidance increase was mainly driven by foreign exchange rates as the performance of the US dollar led to a foreign-exchange result of 3.2 m in Q (Q1 2014: 0.1 m). Nevertheless the adj. EBIT increased by 0.4 m to 4.3 m, which leads to a margin improvement as we assume a 3.8% turnover increase in Q1 driven by brand business. The turnover forecast for 2015 remains unchanged. Leifheit expects turnover growth of 2-3% (BHLe: 2.5%). As our economists forecast an average EUR/USD of close to 1.15 for 2015, we believe that the positive dollar effect for Leifheit in 2015 will be around 2 m. Today, we feel fine with our current EBIT forecast for 2015 of 19 m including the aforementioned 2 m result from foreign-exchange rates. This ad-hoc should support our BUY rating due to the guidance upgrade, but more important for us is that the adj. EBIT outgrew sales, which leads to margin improvements at the group level. Our valuation is equally based on our DCF model and the results of our cashflow-yield model. Even though the share is too expensive in terms of the traditional multiples (EV/EBIT, PER), the dividend (current yield 3.7%) and the expectation of higher pay-outs make the share appear an attractive proposition. Next event 12/05/2015 Quarterly Results Christoph Schlienkamp, Investmentanalyst DVFA Phone: +49 (0) christoph.schlienkamp@bankhaus-lampe.de in m EUR e 2016e 2017e Sales EBIT EBIT margin 6.8% 9.8% 8.3% 8.6% 8.8% Net financial debt Free cash-flow EPS (in EUR) DPS (in EUR) Dividend yield 5.3% 3.9% 4.0% 4.3% 4.7% EV/Sales EV/EBIT Price Earnings ratio (P/E)

7 BANKHAUS LAMPE // 7 Linde AG Strong FX benefits in Q1 Hold EUR EUR Bloomberg: LIN WKN: Chemicals 52 week high week low DAX YTD -4.0% 1 month -4.4% 12 months -4.7% Linde s Q1 results are slightly below expectations, mainly due to the Others segment. Margins of 27.5% in Gases and 8.5% in Engineering are in line with BHL forecasts. These results are higher than the consensus estimates for Gases and lower in Engineering. Linde reiterated its guidance for FY 2015: Sales of bn and adjusted EBITDA of bn. BHL Linde AG [ m] Q Q1 2015e Q % yoy Sales 4,398 4,351 4, % EBITDA 993 1, % EBITDA-margin 22.6% 23.2% 22.9% -0.3 PP EBIT % EBIT-margin 11.9% 12.5% 12.8% -0.9 PP Net income (reported) % EPS [ ], adjusted % Source: Company information, Factset, Bankhaus Lampe Research With the operating results in line with BHL estimates, we reiterate our HOLD rating. Linde will host a conference call today at 14:00 CET. Market Cap (m EUR) 32,238 No. of shares (m) 186 Free float 100.0% Heiko Feber, Phone: +49 (0) heiko.feber@bankhaus-lampe.de in m EUR e 2016e 2017e Sales 16,655 17,047 18,547 19,660 20,643 EBIT 2,171 1,885 2,332 2,771 2,911 EBIT margin 13.0% 11.1% 12.6% 14.1% 14.1% Net financial debt 8,229 8,198 7,735 6,849 5,983 Free cash-flow 1, ,048 1,537 1,582 EPS (in EUR) DPS (in EUR) Dividend yield 2.0% 2.0% 2.0% 2.2% 2.3% EV/Sales EV/EBIT Price Earnings ratio (P/E)

8 BANKHAUS LAMPE // 8 SHW AG Q1 figures in line with expectations Buy EUR Bloomberg: SW EUR WKN: A1JBPV Automotive 52 week high week low SDAX YTD -6.0% 1 month -8.4% 12 months -16.7% Solid set of results and largely in line with our expectations; EBITDA/EBIT even slightly better. Order intake increased by 6% to m (b-2-b: 1.0x). In the Pumps & MC divisions, the passenger car business grew by 18% while the industrial part declined slightly by ~4%. The EBITDA margin improved to 10% from 9.3% a year ago. Nevertheless, a less favourable product mix prevented an even higher margin. In the brake disc division, the EBITDA margin climbed from 7.2% to 8.7% Free CF came in negative at m due to some WCap build-up as well as a payment of 8.9 m to the Chinese JV partner for the brake disc business. SHW reiterated the FY guidance: sales of ~ 460 m and an adj. EBITDA of between 46 m and 50 m. BHL SHW [ m] Q Q1 2015e Q % yoy Sales 117,0 116,0 104,8 11,6% Pumps & EC 92,5 92,0 80,6 14,8% Brake Discs 24,5 24,0 24,2 1,0% EBITDA 11,0 10,7 8,8 24,9% EBITDA-margin 9,4% 9,2% 8,4% 1 PP EBIT 6,1 5,7 4,8 25,6% EBIT-margin 5,2% 4,9% 4,6% 0,6 PP Net income 4,1 3,9 3,2 26,1% EPS [ ] 0,67 0,64 0,55 21,0% Source: Company information, Bankhaus Lampe Research Market Cap (m EUR) 263 No. of shares (m) 6 Free float 100.0% Trading vol. Ø (m EUR) 0.64 As expected, SWH delivered a solid start to the year but some of the 2014 issues still remain: Very high demand led to additional cost for extra shifts and logistics especially in the powder metallurgy business. No change to estimates required, more details after the CC at 14:00 CET. Next event 12/05/2015 AGM in m EUR e 2016e 2017e Sales EBIT EBIT margin 5.6% 3.9% 6.3% 7.1% 7.7% Net financial debt Free cash-flow EPS (in EUR) DPS (in EUR) Christian Ludwig, CFA Phone: +49 (0) christian.ludwig@bankhaus-lampe.de Dividend yield 2.2% 2.7% 2.7% 3.4% 3.6% EV/Sales EV/EBIT Price Earnings ratio (P/E)

9 BANKHAUS LAMPE // 9 Ströer Media SE Feedback from CMD Buy EUR EUR Bloomberg: SAX WKN: Media 52 week high week low Prime All Share YTD 23.8% 1 month 12.8% 12 months 27.2% Ströer held its CMD in Berlin yesterday and focused strongly on the digital strategy. The CMD was well attended with roughly 60 participants. Ströer for the first time introduced a mid-term guidance expecting sales of 1 bn by 2017 (BHLe 913 m) and an EBITDA margin of 22-23%. Two thirds of this growth should be derived organically. 50% of sales should come from digital by Ströer's big advantage versus other marketers is that it mainly markets thirdparty content while most other marketers (e.g. Axel Springer or Interactive Media) market their own content. However, we expect Ströer to cautiously build up its asset portfolio and thereby increase margins in the digital segment. Ströer introduced a new segment reporting (OOH Germany, Digital, OOH international). In this new reporting, Public Video will be included in the Digital segment rather than the German OOH segment. With this move, Ströer intends to increase transparency, particularly with regard to the highly profitable public video segment. Ströer is the only provider of public video. Ströer holds an exclusive agreement with Dt. Bahn until 2025, so we see only limited risk of rising competition in this field. Ströer made clear that it looking for potential acquisition targets. However, if it does not find suitable targets, it would not rule out a special dividend. The company does not believe that reducing net debt/ebitda to below 1.5x would any sense. In terms of new acquisitions, the company is aiming for a ROCE of at least 15% (in line with the overall business). Market Cap (m EUR) 1,695 No. of shares (m) 49 Free float 40.0% Trading vol. Ø (m EUR) 2.1 Overall, the CMD confirmed our positive view of the company. We reiterate our Buy rating. We see the new medium-term guidance as a sign of management's confidence in the success of the current strategy. Next event 13/05/2015 Quarterly Results Alexandra Schlegel Phone: +49 (0) alexandra.schlegel@bankhaus-lampe.de in m EUR e 2016e 2017e Sales EBITDA EBITDA margin 17.5% 18.6% 21.2% 21.4% 21.6% Net financial debt Free cash-flow EPS (in EUR) DPS (in EUR) Dividend yield 0.8% 1.6% 1.6% 1.8% 2.1% EV/Sales EV/EBITDA Price Earnings ratio (P/E)

10 BANKHAUS LAMPE // 10 Disclaimer declaration The relevant research analysts, as named on the front cover of this research report, certify that (a) all of the views expressed in this research report accurately reflect their personal views about the securities and companies mentioned in this research report; and (b) that no part of their compensation was, is or will be directly or indirectly related to the specific recommendation(s) or views expressed by them in this research report. Rating system Shares are rated based upon analyst forecasts with regard to the performance of the share during a period of twelve months. The rating Buy within this general concept means that the share s forecast performance is at least 10%. Hold means a price movement in a bandwidth of 0% to 10%. Sell means that the share s forecast performance is negative. Explanation of valuation Unless shown otherwise, the stated upside targets are based upon either a discounted cash-flow pricing or upon a comparison of the performance ratios of companies that the respective analyst considers to be comparable, or upon a combination of these two analyses. s modify the result of this fundamental assessment to incorporate the potential trend in market sentiment. Overview of changes in our recommendations/price targets in the previous twelve months for: BASF SE (BAS GY), Close (29/04/2015): EUR, : Heiko Feber (). 17/04/ EUR Hold EUR 24/02/ EUR Buy EUR 16/12/ EUR Buy EUR 08/07/ EUR Buy EUR 02/05/ EUR Buy EUR Overview of changes in our recommendations/price targets in the previous twelve months for: Continental AG (CON GY), : EUR, : Christian Ludwig (CFA). 05/05/ EUR Buy EUR Overview of changes in our recommendations/price targets in the previous twelve months for: Fuchs Petrolub SE (FPE3 GY), : EUR, : Heiko Feber (). 22/04/ EUR Sell EUR 18/02/ EUR Sell EUR 13/11/ EUR Hold EUR 04/08/ EUR Hold EUR 06/05/ EUR Sell EUR

11 BANKHAUS LAMPE // 11 Overview of changes in our recommendations/price targets in the previous twelve months for: HOCHTIEF AG (HOT GY), : EUR, : Marc Gabriel (CIIA, CEFA). 26/02/ EUR Buy EUR 20/02/ EUR Buy EUR 13/11/ EUR Buy EUR 23/07/ EUR Hold EUR Overview of changes in our recommendations/price targets in the previous twelve months for: Leifheit AG (LEI GY), Close (29/04/2015): EUR, : Christoph Schlienkamp (Investmentanalyst DVFA). 24/04/ EUR Buy EUR 18/02/ EUR Buy EUR 19/08/ EUR Buy EUR Overview of changes in our recommendations/price targets in the previous twelve months for: Linde AG (LIN GY), Close (29/04/2015): EUR, : Heiko Feber (). 21/04/ EUR Hold EUR 26/01/ EUR Hold EUR 30/07/ EUR Hold EUR 15/07/ EUR Hold EUR Overview of changes in our recommendations/price targets in the previous twelve months for: SHW AG (SW1 GY), Close (29/04/2015): EUR, : Christian Ludwig (CFA). 18/02/ EUR Buy EUR Overview of changes in our recommendations/price targets in the previous twelve months for: Ströer Media SE (SAX GY), : EUR, : Alexandra Schlegel. 13/04/ EUR Buy EUR The distribution of recommendations in our investments universe is currently as follows (date: 01/04/2015) Rating Basis: all analysed companies Basis: companies with investment banking relationships Buy 52.5% 71.4% Hold 33.8% 28.6% Sell 13.7% 0.0% Under Review 0.0% 0.0%

12 BANKHAUS LAMPE // 12 Prevention and dealing with conflicts of interest The measures taken by Bankhaus Lampe KG within the framework of its management of conflicts of interest in order to prevent and handle conflicts of interest are based, among other things, on the functional separation of sensitive business units, the establishment of confidentiality units by setting up information barriers, the establishment of organisational regulations regarding the treatment of confidential and sensitive information both inside and outside the confidentiality units and the monitoring and limitation of private securities transactions conducted by employees working in sensitive areas of Bankhaus Lampe KG. Conflicts of interest that cannot be avoided despite the measures taken are disclosed. Compliance with the internal and organisational provisions to prevent and handle conflicts of interest is monitored by the independent Compliance unit. Conflict of interest Disclosures of potential conflicts of interest relating to Bankhaus Lampe KG, its affiliates and subsidiaries in the following companies named in this research report are valid as of the end of the month prior to the publication of this report (updating this information may take up to ten days after the month comes to an end). Potential conflicts of interests may exist in the following companies named in this research report. Company Disclosure BASF SE 6 Continental AG --- Fuchs Petrolub SE --- HOCHTIEF AG --- Leifheit AG --- Linde AG --- SHW AG --- Ströer Media SE The author or a person contributing to the production of this financial analysis directly holds financial instruments or related derivatives of this company. Responsible regulatory authority: Federal Financial Supervisory Authority Bundesanstalt für Finanzdienstleistungsaufsicht (BaFin), Marie-Curie-Str , D Frankfurt

13 BANKHAUS LAMPE // 13 Declaration of liability The information in this study is based on public sources which the author(s) believe(s) to be reliable. Nevertheless, neither Bankhaus Lampe KG, nor its affiliated companies, nor the legal representatives, supervisory board members and employees of these companies can assume any guarantee for the correctness, completeness and accuracy of the information. All opinions and evaluations expressed in this study only reflect the current opinions and evaluations of the author(s), which do not necessarily correspond to the opinions and evaluations of other spheres of business of Bankhaus Lampe KG or its affiliated companies. All opinions and evaluations can be changed at any time without prior notice. They may differ from views set out in other documents, including research, published by Bankhaus Lampe KG. This study is directed to institutional investors with registered offices in the European Union as well as in Switzerland, Liechtenstein and the United States of America, to whom the Bank has deliberately made it available. Its contents are for information purposes only and are not to be regarded as an offer or invitation to buy or sell financial instruments. Private investors who come to know the contents of this study should, before making a concrete investment decision, consult the investment adviser of their bank on whether any recommendation for a certain investment decision contained in this study is suitable for them in view of their investment objectives and financial conditions. The adviser may not share the views contained herein on the financial instruments and their issuers. The completion and publication of this study is subject to the law of the Federal Republic of Germany. Its publication in other jurisdictions may be restricted by applicable laws or other legal regulations. Persons with residence outside the Federal Republic of Germany who come into possession of this study must inform themselves about any applicable restrictions that they are obligated to observe. They are recommended to contact the authorities of their country that are responsible for the monitoring of financial instruments and of markets in which financial instruments are traded, in order to find out whether there are any restrictions on acquisition regarding the financial instruments this study refers to. This study may neither be reprinted, in whole or in part, nor transferred into an information system, nor stored in any way whatsoever, be it electronically, mechanically, via photocopy, or by any other means, except with the prior written approval of Bankhaus Lampe KG. Additional information for clients in the United Kingdom Publications in the United Kingdom are distributed by Lampe Capital UK (Services) Limited, 2 Savile Row, London W1S 3PA, United Kingdom and this report is only directed at persons who are investment professionals under Article 19 of the Financial Services and Markets Act 2000 (Financial Promotions) Order 2005 and the investment or investment activity to which this report relates is only available to and will only be engaged in with such persons. Persons who do not have professional experience in matters relating to investments should not rely upon the contents of this report. Additional information for clients in the United States This research report has been prepared and approved by Bankhaus Lampe KG ("BHL"), a full-service bank in Germany. BHL is not a registered broker/dealer in the United States and therefore is not subject to U.S. rules regarding the preparation of research reports and the independence of research analysts. This research report is provided in the United States for distribution solely to "major U.S. institutional investors" in reliance on the exemption from registration provided by Rule 15a-6 of the U.S. Securities Exchange Act of 1934, as amended. Any recipient of this research report wishing to effect any transaction to buy or sell securities or related financial instruments based on the information provided in this research report should do so only through International KBR Finance LLC, IKBR ( IKBR ). IKBR may be contacted in writing or by phone: International KBR Finance LLC, IKBR, 712 Fifth Avenue, 28th floor, New York, NY 10019, U.S. phone: IKBR is not an affiliate of BHL. Under no circumstances should any recipient effect any transaction to buy or sell securities or related financial instruments through BHL. Bankhaus Lampe KG, Jägerhofstraße 10, D Düsseldorf is responsible for this study. Further information may be obtained from Bankhaus Lampe KG. 30 April 2015

14 BANKHAUS LAMPE // 14 Contacts HEAD OF CAPITAL MARKETS & ADVISORY Ute Gerbaulet + 49 (0) ute.gerbaulet@bankhaus-lampe.de HEAD OF EQUITY Ralf Menzel + 49 (0) ralf.menzel@bankhaus-lampe.de VIA INTERNATIONAL KBR FINANCE LLC CHAPERONE OF BANKHAUS LAMPE KG IN THE US EQUITY SALES CONTINENTAL EUROPE Ulrich Klingmüller + 49 (0) ulrich.klingmueller@bankhaus-lampe.de EQUITY SALES IN GB Yusuf Bilgic + 44 (0) yb@lampe-capital.com EQUITY SALES IN US Jörg Hagenbuch jh@ikbrfinance.com EQUITY SALES TRADING CONTINENTAL EUROPE Nils Carstens + 49 (0) nils.carstens@bankhaus-lampe.de EQUITY SALES TRADING IN GB Chris Ford + 44 (0) cf@lampe-capital.com EQUITY SALES TRADING IN US Kim Last kl@ikbrfinance.com Bankhaus Lampe Research Jägerhofstraße 10 D Düsseldorf research@bankhaus-lampe.de + 49 (0) (0)