BOMI ITALIA. Buoyant results in 1H17 and acquisition of minorities. Buy (maintained) Company Update. 20 September :30 PM.

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1 Company Update Buy (maintained) 5:30 PM MARKET PRICE: EUR2.70 TARGET PRICE: EUR4.14 (from EUR3.46) Home Automation Data Shares Outstanding (m): Market Cap. (EURm): Enterprise Value (EURm): Free Float (%): 35.9% Av. Daily Trad. Vol. (m): 0.01 Main Shareholder: Reuters/Bloomberg: Incab & Co 49.6% BOMI.MI BOMI IM 52-Week Range (EUR) Source: Factset Performance 1m 3m 12m Absolute 4.5% 17.2% 55.5% Rel. to FTSE IT 1.7% 10.3% 13.6% Graph area Absolute/Relative 12 M Source: Factset Marco Cristofori Senior analyst marco.cristofori@ubibanca.it Tel Buoyant results in 1H17 and acquisition of minorities Despite rally in the share price since our initiation of coverage in July (+26%) we strongly reiterate our positive stance on Bomi Italia: 1) 1H17 preliminary results exceededd our expectations with solid organic growth (+12%) and an improvement in profitability driven by efficiencies (closure of some of the existing legal entities) and a better geographical mix. Lower financial charges and taxes also helped boost net attributable profit by 250%; 2) the acquisition of 45% of Biomedical Brazil, for a total consideration of about EUR20 million willl strongly reduce the impact of minorities which, in past years, absorbed a significant proportion of group earnings. Overall, Bomi Italia seems well on track to reap the benefits of its recent acquisitions while operational leverage (fixed costs will be spread over a higher revenue base) and effective cost cutting initiatives should combine to improve profitability in the future. We have revised our estimates for incorporating lower taxes and the sharp reduction in minorities leading to an increase of >60% to our 2017 EPS, >50% compared to 2018 and 35% in We have upgraded our target price to EUR4.14 per share (vs. EUR3.46) indicating potential upside of >50%. > The acquisition of 45% of Biomedical Brazil is a major step for Bomi Italia which will now control the entire cash inflow generated in Brazil while reducing the weighting of minorities (and therefore sharply increasing net attributable profit). In addition, the transaction could generate cross-selling opportunities and could lower the consolidated tax rate. > Following the slowdown in 2016 (EBITDA margin declined to 8.7% from 10.5% in 2015) relating to the consolidation of five companies acquired during the year, 1H17 showed that the recent deals are starting to bear fruit. We were also impressed by the outstanding organic growth rate (12%). > We have increased our target price by 19% to EUR4.14 per share implying potential upside of >50%. Despitee the strong share price performance (+58% since the beginning of the year), the shares are still trading 44% below our peer sample. Financials priced on 19 September E 2018E 2019E Revenues (EURm) EBITDA (EURm) EBITDA margin (%) 8.7% 8.9% 9.8% 10.0% EBIT (EURm) EPS (EUR) CFPS (EUR) DPS (EUR) Source: Company Data, UBI Banca Estimates Ratios priced on 19 September * 2017E 2018E 2019E P/E(x) P/CF(x) 6.1 P/BV(x) 2.0 Dividend Yield 0.0% 1.5% 1.9% 2.2% EV/EBITDA(x) 6.4 Debt/Equity (x) 0.8 Debt/EBITDA (x) 1.8 Source: UBI Banca Estimates * based on 2016 average price 1

2 Key Financials (EURm) E 2018E 2019E Revenues EBITDA EBIT NOPAT Free Cash Flow Net Capital Employed Shareholders Equity Net Financial Position Source: Company data, UBI Banca estimates Key Profitability Drivers E 2018E 2019E Net Debt/Ebitda (x) Net Debt/Equity (x) Interest Coverage (%) Free Cash Flow Yield (%) -10.7% nm nm 10.0% ROE (%) 3.1% 14.6% 26.1% 22.5% ROI after tax (%) 7.5% 12.1% 13.9% 14.8% ROCE (%) 8.1% 12.9% 14.8% 15.7% Source: Company data, UBI Banca estimates Key Valuation Ratios E 2018E 2019E P/E (x) P/BV (x) P/CF (x) Dividend Yield (%) 0.0% 1.5% 1.9% 2.2% EV/Sales (x) EV/EBITDA (x) EV/EBIT (x) EV/CE (x) Source: Company data, UBI Banca estimates Key Value Drivers (%) E 2018E 2019E Payout 0.0% 24.1% 20.2% 22.9% Cost of Equity 8.8% 8.8% 8.8% 8.8% NWC/Sales 2.6% 4.2% 2.9% 3.1% Capex/Sales -5.0% -2.3% -1.7% -2.0% Source: Company data, UBI Banca estimates 2

3 Recent Developments > Bomi Italia reported positive preliminary results in the first half of the year (full results are due on September 29): revenues rose 27% to >EUR58 million reflecting organic growth of 12% (well above the 5.7% reported in 2016 and our 5% estimate), the consolidation of the Chinese subsidiary and of Faro, which was acquired in March-17, and a positive forex impact which boosted revenues by about 8%. The EBITDA margin (net of non-recurring costs, undisclosed) improved to 9.5% (from 8.1% in 1H16), exceeding our expectations, mainly due to operating leverage which reduced the weight of fixed costs on sales, efficiencies and a better geographical sales mix. The net result more than doubled to EUR1.5 million, also benefitting from lower financial charges and taxes and the net attributable result reached EUR0.9 million (+250%). Net debt was in line with our forecast at EUR17.8 million, after acquisitions for around EUR2 million. > At the end of July, Bomi Italia announced the acquisition (to be finalized by the end of January 2018) of the 45% minority shareholding in Biomedical Brazil from the Luft family for BRL48 million, about EUR12.8 million at current exchange rates (EUR3.8 million will be held in escrow for five years as a guarantee against potential liabilities). In addition, Biomedical Brazil will distribute an extraordinary dividend of BRL11 million (circa EUR2.9 million) to the sellers. Moreover, Bomi Italia signed a reciprocal non-competition agreement lasting five years paying BRL15 million (EUR4 million) in instalments. The agreement includes a 2-year transportation contract with the Luft family for BRL19.2 million (EUR5.2 million) and the right for Bomi Italia to act for five years as international agent for the pharmaceutical company of the Luft family. > The total consideration of the transaction is around EUR20 million, implying a valuation of around EUR35.4 million for 100% of Biomedical Brazil. This corresponds to a 2016 EV/EBITDA of 6.2x and an EV/Sales of 0.93x compared with 6.4x and 0.56x respectively for Bomi Italia in 2016 (based on the average 2016 share price). > The transaction strongly reinforces our investment case: 1) Bomi Italia will have control of all cash flow generated in Brazil, 2) the impact of minorities will decline significantly from the current year increasing net attributable profit by at least EUR1 million p.a. or by >30%, 3) we believe that there are attractive crossselling opportunities (not included in our estimates) arising from the distribution of Luft family products in Europe, 4) the deal could also lower the consolidated tax rate. Overall, the transaction removes one of the main weaknesses of Bomi Italia as Brazilian minorities have, until now, diverted a significant proportion of earnings outside the company (we estimate >40% on average in the past three years). On the contrary, the transaction increases the company s exposure to the BRL which could affect the bottom line. > The business plan presented in May 2017 on a stand-alone basis (excluding any further acquisitions) has clearly changed in order to factor in the sharp reduction in minorities related to the Brazilian operations. Our projections of net attributable profit in 2017 have risen from EUR1.4 million to about EUR2.5 million, for 2018 from EUR3.1 million to EUR4.7 million and for 2019 from EUR4 million to EUR5.6 million. We should stress that the business plan does not include potential synergies arising from the agreement with the Luft family. We also note that the plan is based on fixed currency rates (BRL at 3.4, COP at 3.270, USD at 1.07, MXN at 21.87, TRY at 4.0), a key issue for the translation of foreign currencies into EUR. 3

4 Figure 1 1H17 preliminary results (EURm) 1H16A 1H17A % Chg. 1Q17E UBI % Chg. Sales total % % EBITDA % % % margin 8.1% 9.5% 8.4% Net result % % Minorities % % Net attributable result % % Net debt (cash) % % Source: Company data, UBI Banca estimates Figure 2 Revenues and EBITDA margin semi-annual trend H1-14A H2-14A H1-15A H2-15A H1-16A H2-16A H1-17A Sales EBITDA % margin 17.0% 15.0% 13.0% 11.0% 9.0% 7.0% 5.0% Source: Company data 4

5 Financial Projections > Following 1H17 preliminary results and the acquisition of the minorities in Brazil, we have revised our estimates for We have merely fine-tuned our top line estimates, slightly increasing the forecasts for Italy, China and for Brazil. > Below the operating line we have reduced the forecast tax rate to 38% in (from 43% previously) and have significantly reduced our expectations of minorities charges. This has led to an increase of >60% to our 2017 EPS, >50% on 2018 and 36% in We have also significantly revised our projection of net debt due to the acquisition of the minorities in Brazil (total consideration around EUR20 million), considering the acquisition finalized in > Our estimates imply an increase in revenues of 13.3% in the second half, with an EBITDA margin of 8.3% and a bottom line of EUR1.9 million (EUR1.6 million after minorities). The main risk to our estimates is exposure to currency fluctuations: even though the company is naturally hedged as both revenues and costs are in the same currency there is a potential impact from translation into EUR. Our estimates are based on an exchange rate of BRL 3.63 this year, 3.85 in 2018 and 4.10 in Should BRL exchange rates remain stable at the current level (3.75), our 2017 sales estimates would decline by 1% and the EBITDA estimate would decline by and by 4%. > The business plan forecasts CAGR in sales of 11.5% through to 2019 with an EBITDA margin of 10% in 2019 compared to 8.7% in Profitability improvements should be easily achievable, given that the average EBITDA margin was 11.2% in and that last year was penalized by non-recurring costs. Figure 3 - Old vs. new estimates (EURm) 2016A 2017E 2018E 2019E Old New Old New Old New Sales % change 0.3% 0.1% 0.0% EBITDA % change 0.1% 0.3% 0.1% % margin 8.7% 8.9% 8.9% 9.8% 9.8% 10.0% 10.0% EBIT % change 0.2% 0.5% 0.2% % margin 5.2% 5.9% 5.9% 6.9% 6.9% 7.2% 7.2% Net Income % change 17.7% 4.4% -7.6% Net Income attribtable % change 65.0% 53.3% 35.1% Net debt (cash) Source: Company data, UBI Banca estimates 5

6 Valuation > Our target price per share is based on the average of a DCF analysis (50% weight) and a relative valuation (50% weight), after applying a 20% liquidity discount for the listing on the AIM market and the modest liquidity of the shares. Following the acquisition of minorities in Brazil, we have lowered from 30% to 15% the discount applied to EV/EBITDA and EV/EBIT multiples in order to take into account the weighting of minorities in Bomi Italia. In other words, we estimate that minorities generate 15% of EBITDA and EBIT vs. our previous estimate of 30%. > Following the revision to our estimates, our target price has risen by nearly 22% to EUR4.14 per share (from EUR3.46). Our new target price indicates upside of >50% supporting our Buy rating. > At the current market price Bomi Italia is trading at an average 44% discount to peers. At our target price, the company would trade at 9.3x 2017 EV/EBITDA, which is well below the average multiple of our peer sample (12.8x). > The EUR5.4 million convertible bond issued at the time of the IPO (June 2015) can be converted up to June 2020 at a ratio of shares for each bond (issued at EUR3.600 each) at EUR3.6 per share. In the event of full bond conversion, which seems unlikely given that the current share price is 25% below the strike price, Bomi Italia will issue 1.5 million new shares resulting in dilution of around 10%. Figure 4 Valuation Summary Method Fair Value (EUR) Weight 24/07/2017 % Chg. DCF % % Relative valuation % % Fair value % 20% discount Target price % Current price % Increase/decrease % 53.5% 61.9% Source: UBI Banca estimates Figure 5 - WACC and embedded DCF assumptions WACC assumptions Embedded DCF assumptions Risk-free rate 2.5% Revenue CAGR (%) 3.7% Debt spread (%) 3.5% Target EBIT margin 2025 (%) 6.5% Cost of debt [net] (%) 4.4% D&A. on sales (avg ) (%) 2.9% Market risk premium (%) 4.5% Capex on sales (avg ) (%) 3.9% Beta (x) 1.14 Cost of equity (%) 7.7% Weight of Debt 46% Weight of Equity 54% WACC 6.15% Source: UBI Banca estimates 6

7 Figure 6 DCF Valuation Our DCF valuation implies an EV/EBITDA of 6.9x at terminal value Valuation (EUR m) % Weight Per share (EUR) Sum of PV FCF % 1.68 Terminal value % 4.84 Total Enterprise value % Pension provision (1.6) (0.11) - Net cash (debt) (16.0) (1.05) Total Equity value Minorities (15% DCF) (12.2) (0.80) Total Equity value Bomi Italia Number of shares outstanding (m) 15.2 Fair value per share (EUR) 4.56 Source: UBI Banca estimates Figure 7 Peer comparison and valuation based on multiples (priced on 19 September 2017) Company Market Cap Country P/E EV/EBITDA EV/EBIT (EURm) 2017E 2018E 2019E 2017E 2018E 2019E 2017E 2018E 2019E Cardinal Health 17,504 USA 12.1 x 13.3 x 11.9 x 7.6 x 8.8 x 8.0 x 8.8 x 10.3 x 9.2 x DSV 11,697 Denmark 26.2 x 22.5 x 19.9 x 17.2 x 15.6 x 14.5 x 20.0 x 18.0 x 16.5 x Kuhne & Nagel International AG 18,261 Switzerland 27.8 x 25.6 x 23.9 x 17.3 x 16.0 x 14.9 x 20.8 x 18.9 x 17.5 x McKesson Corporation 26,043 USA 12.3 x 11.5 x 10.6 x 8.0 x 7.5 x 6.9 x 9.5 x 9.0 x 8.3 x Owens & Minor 1,457 USA 18.0 x 10.2 x UDG Healthcare 2,390 Ireland 32.6 x 28.1 x 25.3 x 18.6 x 16.2 x 14.6 x 22.7 x 19.6 x 17.1 x United Parcel Service 84,637 USA 19.5 x 18.0 x 16.8 x 10.7 x 10.1 x 9.8 x 13.6 x 12.8 x 12.3 x Average 21.2 x 19.8 x 18.1 x 12.8 x 12.4 x 11.5 x 15.9 x 14.8 x 13.5 x Median 19.5 x 20.3 x 18.4 x 10.7 x 12.9 x 12.2 x 16.8 x 15.4 x 14.4 x Bomi Italia current market multiples x 10.9 x 10.3 x 6.6 x 5.8 x 5.1 x 10.0 x 8.2 x 7.1 x Premium (discount) to average -25.2% -45.1% -43.0% -50.0% -53.0% -55.6% -37.4% -44.3% -47.6% Valuation based on average Source: Factset, UBI Banca estimates Figure 8 Implicit multiples based on our EUR4.14 target price (x) 2017E 2018E 2019E P/E 25.0 x 16.7 x 15.8 x EV/EBITDA 9.3 x 7.8 x 6.9 x EV/EBIT 14.0 x 11.0 x 9.5 x EV/Sales 2.4 x 2.2 x 2.1 x P/BV 3.6 x 4.4 x 3.6 x P/CF 14.0 x 6.8 x 8.1 x EV/ Capital employed 2.6 x 2.3 x 2.2 x Source: Company data 7

8 Income Statement (EURm) E 2018E 2019E Net Revenues EBITDA EBITDA margin 8.7% 8.9% 9.8% 10.0% EBIT EBIT margin 3.7% 5.9% 6.9% 7.2% Net financial income /expense Associates & Others Profit before taxes Taxes Minorities & discontinuing ops Net Income Balance Sheet (EURm) E 2018E 2019E Net working capital Net Fixed assets M/L term funds Capital employed Shareholders' equity Minorities Shareholders' funds Net financial debt/(cash) Cash Flow Statement (EURm) E 2018E 2019E NFP Beginning of Period Group Net Profit Minorities D&A Change in Funds & TFR Gross Cash Flow Change In Working Capital Other Operating Cash Flow Net Capex Other Investments Free Cash Flow Dividends Paid Other & Chg in Consolid. Area Chg in Net Worth & Capital Incr Change in NFP NFP End of Period

9 Financial Ratios (%) E 2018E 2019E ROE 3.1% 14.6% 26.1% 22.5% ROI pre-tax 11.2% 18.1% 20.8% 22.1% Net Fin. Debt/Equity (x) Net Fin. Debt/EBITDA (x) Interest Coverage NWC/Sales 2.6% 4.2% 2.9% 3.1% Capex/Sales 5.0% 2.3% 1.7% 2.0% Pay Out Ratio 0.0% 24.1% 20.2% 22.9% Per Share Data (EUR) E 2018E 2019E EPS DPS Op. CFPS Free CFPS BVPS Stock Market Ratios (x) 2016 * 2017E 2018E 2019E P/E P/OpCFPS P/BV Dividend Yield (%) 0.0% 1.5% 1.9% 2.2% Free Cash Flow Yield (%) -10.7% nm nm 10.0% EV (EURm) EV/Sales EV/EBITDA EV/EBIT EV/Capital Employed * Based on average 2016 price Growth Rates (%) E 2018E 2019E Growth Group Net Sales 27.8% 18.3% 6.7% 6.2% Growth EBITDA 6.0% 21.2% 17.8% 8.5% Growth EBIT -21.3% 87.7% 25.3% 10.8% Growth Net Profit -60.3% 443.9% 49.3% 5.7% 9

10 Disclaimer Analyst Declaration This research report (the Report ) has been prepared by Marco Cristofori on behalf of UBI Banca S.p.A. ( UBI Banca ). UBI Banca is an Italian bank supervised by the European Central Bank and is duly authorised to provide investment services pursuant to Article 1, Paragraph 5, letter a), b), c), c-bis), e) and f) of the Legislative Decree 24 February 1998, n 58 under the supervision of Consob. UBI Banca has its head office at Piazza Vittorio Veneto 8, Bergamo. The analyst who prepared the Report, and whose name and role appear on the front page, certifies that: a. the views expressed on the company mentioned herein (the Company ) accurately reflects his personal views. It does not represent the views or opinions of UBI Banca, its management or any other company which is part of or affiliated to the UBI Banca group (the UBI Banca Group ). It may possible that some UBI Banca Group s employees may disagree with the views expressed in this Report; b. he has not received and will not receive any direct or indirect compensation in exchange for any views expressed in this Report; c. the analyst does not own any securities and/or any other financial instrument issued by the Company or any financial instrument whose price depends on or is linked to any securities and/or any financial instrument issued by the Company; d. neither the analyst nor any member of the analyst s household serves as an officer, director or advisory board member of the Company; e. the remuneration of the analyst is not directly tied to transactions in services of investment firms or other type of transactions it or any legal person part of the same group performs, or to trading fees it or any legal person that is part of the same group receives; f. the analyst named in the document is member of AIAF. General disclosure This Report is for information purposes only. This Report (i) is not, nor may it be construed, to constitute, an offer for sale or subscription of or a solicitation of any offer to buy or subscribe for any securities issued or to be issued by the Company, (ii) should not be regarded as a substitute for the exercise of the recipient s own judgement. In addition, the information included in this Report may not be suitable for all recipients. Therefore the recipient should conduct his own investigations and analysis of the Company and securities referred to in this document and make his own investment decisions without undue reliance on its contents. Neither UBI Banca, nor any other company of the UBI Banca Group, nor any of its directors, managers, officers or employees, accepts any direct or indirect liability whatsoever (in negligence or otherwise), and accordingly no direct or indirect liability whatsoever shall be assumed by, or shall be placed on, UBI Banca, or any other company of the UBI Banca Group, or any of its directors, managers, officers or employees, for any loss, damage, cost, expense, lower earnings howsoever arising from any use of this Report or its contents or otherwise arising in connection with this Report. The information provided and the opinions expressed in this Report are based upon information and data provided to the public by the Company or news otherwise public and refers to the date of publication of the Report. The sources (press publications, financial statements, current and periodic releases, as well as meetings and telephone conversations with the Company s representatives) are believed to be reliable and in good faith, but no representation or warranty, express or implied, is made by UBI Banca as to 10

11 their accuracy, completeness or correctness. Past performance is not a guarantee of future results. Any opinions, forecasts or estimates contained herein constitute a judgement as at the date of this Report, and there can be no assurance that the future results of the Company and/or any future events involving directly or indirectly the Company will be consistent with any such opinions, forecasts or estimates. Any information herein is subject to change, update or amendment without notice by UBI Banca subsequent to the date of this Report, with no undertaking by UBI Banca to notify the recipient of this Report of such change, update or amendment. Organizational and administrative arrangements to prevent conflicts of interests UBI Banca maintains procedures and organizational mechanism (physical and non physical barriers designed to restrict the flow of information between the unit which performs investment research activity and other units of UBI Banca) to prevent and professionally manage conflicts of interest in relation to investment research. For further information please see UBI Banca s website ( Informativa sintetica sull attività di ricerca. Disclosure of potential conflicts of interest In relation to the Company the following potential conflict of interest have been found: > UBI Banca acts as Specialist for Bomi Italia > UBI Banca may have long or short positions with the issuer On the basis of the checks carried out no other conflict of interest arose. Frequency of updates UBI Banca aims to provide continuous coverage of the companies in conjunction with the timing of periodical accounting reports and any exceptional event that occurs affecting the issuer s sphere of operations and in any case at least twice per year. The companies for which UBI Banca acts as Sponsor or Specialist are covered in compliance with regulations of the market authorities. For further information please refer to Valuation methodology UBI Banca s analysts value the Company subject to their recommendations using several methods among which the most prevalent are: the Discounted Cash Flow method (DCF), the Economic Value Added method (EVA), the Multiple comparison method, the SOP method and the NAV method. The analysts use the above valuation methods alternatively and/or jointly at their discretion. The assigned target price may differ from the fair value, as it also takes into account overall market/sector conditions, corporate/market events, and corporate specifics (i.e. holding discounts) reasonably considered to be possible drivers of the company s share price performance. These factors may also be assessed using the methodologies indicated above. For further information please refer to 11

12 Ranking system UBI Banca s analysts use an absolute rating system, not related to market performance. The explanation of the rating system is listed below: Buy: if the target price is 10% higher than the market price, over the next 12 months. Hold: if the target price is 10% below or 10% above the market price, over the next 12 months. Sell: if the target price is 10% lower than the market price, over the next 12 months. No Rating: the investment rating and target price have been suspended as there is not sufficient fundamental basis for determining an investment rating or target. The previous investment rating and target price, if any, are no longer in effect. Alternatively, No Rating is assigned in certain circumstances when UBI Banca is acting in any advisory capacity in a strategic transaction involving the Company. Target price: the market price that the analyst believes that the share may reach within a one-year time horizon. Market price: closing price on the day before the issue date of the report, appearing on the first page. Distribution Italy: This document is intended for distribution in electronic form to Professional Clients and Qualified Counterparties as defined by Legislative Decree 24 February 1998, n. 58 and by Consob Regulation n dated , as further amended and supplemented. This Report has been released within 30 minutes from the timing reported on the front page. IN THE UNITED KINGDOM, THIS DOCUMENT IS BEING DISTRIBUTED ONLY TO, AND IS DIRECTED ONLY AT PERSONS WHO (A) ARE (I) PERSONS FALLING WITHIN ARTICLE 19 OR ARTICLE 49 OF THE FINANCIAL SERVICES AND MARKETS ACT 2000 (FINANCIAL PROMOTION) ORDER 2005 (AND ONLY WHERE THE CONDITIONS CONTAINED IN THOSE ARTICLES HAVE BEEN, OR WILL AT THE RELEVANT TIME BE, SATISFIED) OR (II) ANY OTHER PERSONS TO WHOM IT MAY BE LAWFULLY COMMUNICATED; AND (B) ARE QUALIFIED INVESTORS WITHIN THE MEANING OF ARTICLE 2(1)(E) OF THE PROSPECTUS DIRECTIVE (DIRECTIVE 2003/71/EC), (ALL SUCH PERSONS BEING REFERRED TO AS "RELEVANT PERSONS"). THIS DOCUMENT MUST NOT BE ACTED ON OR RELIED ON BY PERSONS WHO ARE NOT RELEVANT PERSONS. Copyright This Report is being supplied solely for the recipient s information and may not be reproduced, redistributed or passed on, directly or indirectly to any other person or published, in whole or in part, for any purpose without prior written consent of UBI Banca. The copyright and intellectual property rights on the data are owned by UBI Banca Group, unless otherwise indicated. The data, information, opinions and valuations contained in this Report may not be subject to further distribution or reproduction, in any form or via any means, even in part, unless expressly consented by UBI Banca. By accepting this Report the recipient agrees to be bound by all of the forgoing provisions. 12

13 Distribution of ratings Equity rating dispersion in the past 12 months Buy Hold Sell No Rating 84.4% 12.5% 0.0% 3.1% Proportion on issuers to which UBI Banca has supplied investment banking services relating to the last 12 months Buy Hold Sell No Rating 100% 100% - 100% For further information regarding yearly and quarterly rating statistics and descriptions, please refer to Historical ratings and target prices Date Rating Target Price (EUR) Market Price (EUR) 24/07/2017 BUY