Trevi Group. Hold (None) Slow recovery priced in. keplercheuvreux.com

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1 06 August 2013 Trevi Group Italy Capital goods Hold (None) Target price EUR 6.50 Current price EUR 6.36 Matteo Bonizzoni, CFA Slow recovery priced in Very favourable business conditions over (which boosted Trevi s P&L with low working capital) stemmed from drivers that we do not expect to be repeated any time soon. We believe 2012 marked the bottom for Trevi s business, but we factor in a slow recovery path with uninspiring FCF and deleverage. We initiate with Hold, EUR6.5TP. Well-diversified player in special foundations and drilling Trevi Group s core business is represented by its Trevi division(39% of 2013E sales), which boasts a strong footprint in special foundations services and engineering worldwide with solid track record in complex jobs. Trevi division is strongly integrated with Soilmec (20% of 2013E sales), active in foundations equipment. Leveraging on its mechanical expertise, the group has successfully expanded into onshore/offshore drilling machines/rigs through Drillmec (33% of 2013E sales), and then into drilling services, which are currently operated in Latam through its Petreven division (18% of 2013E sales). Boom and bust - from here, main drivers point to slow recovery Trevi s business is characterised by high cyclicality and capital intensity and mid-to-high execution risks. The company quadrupled its EBITDA in , leading net profit from slightly above breakeven to >EUR80m. Exceptionally favourable (and hardly repeatable) market conditions in the Middle East (Dubai/Abu Dhabi) strongly contributed to this boom. Following the bust in 2010/12 (down to EUR11m net profit), exacerbated by adverse working capital dynamics and growing NFP, we expect recovery to start in 2013 at a slow pace, with minor deleverage. We expect EBIT margin up 140bp by 2015 to 5.7%, half the peak We project a 6% CAGR on revenues, 10% on EBITDA, 32% on EPS, on the back of improving market conditions. We project EBIT margin to recover by 140bps over the period to 5.7%, still well below the peak touched in 2007 (12.4%) and more similar to 2004/05 levels. According to our sensitivity, upside to our base case could come from any awards of large jobs under tender mainly in the US, and higher growth for Drillmec. Stock fully valued, trading at sizeable premium to peers We value Trevi through our DCF (WACC 8.3%, TG 2%, terminal EBIT margin 8.2%), which returns EUR6.5 TP. The stock looks fairly valued at current prices. Trevi also trades at stretched 20% (EV/EBITDA 13/15E) premium to its main peer Bauer, which has historically achieved very similar business dynamics and, on our estimates, looks set to do the same in 2013/15. Our best case valuation (higher intake for Trevi/Drillmec) points to EUR8ps. Reuters TFI.MI Bloomberg TFI IM Index DJ Stoxx 600 Market data Market cap (EURm) 446 Free float 51% No. of shares outstanding (m) 70 Avg. daily trading volume('000) 171 YTD abs performance 57.4% 52-week high (EUR) week low (EUR) Aug 12 Nov 12 Feb 13 May 13 Aug 13 Price DJ Stoxx 600 (rebased) FY to 31/12 (EUR) 2013E 2014E 2015E Sales (m) 1, , ,321.1 EBITDA adj (m) EBIT adj (m) Net profit adj (m) Net fin. debt (m) FCF (m) EPS adj. and fully dil Consensus EPS Net dividend FY to 31/12 (EUR) 2013E 2014E 2015E P/E (x) adj and ful. dil EV/EBITDA (x) EV/EBIT (x) FCF yield (%) 5.2% 3.6% 6.5% Dividend yield (%) 2.0% 2.0% 1.9% Net debt/ebitda (x) Gearing (%) 90.8% 88.7% 84.2% ROIC (%) 3.5% 4.0% 4.8% EV/IC (x) IMPORTANT. Please refer to the last page of this report for Important disclosures and analyst(s) certifications keplercheuvreux.com

2 Summary Company profile The Trevi Group is active in four businesses 1) Trevi - foundations services (core business). In this division, Trevi operates in tunnel excavation, soil consolidation, recovery of polluted sites; 2) Petreven - drilling services; 3) Soilmec - foundation machinery; 4) Drillmec - drilling machinery. The company has a well-diversified geographic footprint Management structure Davide Trevisani Stefano Trevisani Daniele Forti Chairman CEO CFO Key shareholders Trevisani family 48.7% EPS and PE FCF and Gearing Balance sheet structure, 2013E E 14E 15E EPS adj. P/E (x) E 14E 15E FCF LS Gearing RS 160% 140% 120% 100% 80% 60% 40% 20% 0% 100% 80% 60% 40% 20% 0% Goodwill Other assets Cash Shareholders equity Other liabilities Financial debt Valuation Base case We derive a EUR6.5ps TP through our DCF (WACC: 8.3%, TG: 2%), which is based on terminal EBIT margin (2022) = 8.5%, up from 4.7% 2013E. Best case Assuming a steeper margin recovery with terminal EBIT margin of 10% (from 4.7% 2013E), we would derive a EUR8.4 FV. Worst case In case of lower margin recovery and assuming a terminal 6.5% EBIT margin (from 4.7% in 2013E), we would derive a EUR4.5FV. Target price DCF SOP Target price Base case Current price Best case Worst case Risk to our rating Main risks: 1) higher/lower than expected margin recovery, driven by better/worse conditions in the reference markets; 2) higher/lower than expected deleverage, mainly deriving from working capital dynamics. 2 keplercheuvreux.com

3 Slow recovery ahead well priced The very favourable business dynamics seen in 2006/2008, which boosted P&L with low working capital, were based on drivers that we do not expect to be repeated any time soon. We believe 2012 marked the bottom for Trevi s business, but factor in a slow recovery path with uninspiring FCF and deleverage. The stock looks well priced: we initiate with Hold, EUR6.5 TP. Well positioned in a diversified, niche business Company profile and geographical diversification With c EUR1.2bn revenues (2013E), the Trevi Group is active in foundation and drilling services and machinery. Its business model relies on integration between its four divisions: Four divisions, strongly integrated Trevi (foundation services; 39% of 2013E sales). This division, which represents the core business, operates in the execution of specialised works in the field of underground engineering, including tunnel excavation, soil consolidation, dam repairs and recovery of polluted sites. Soilmec (foundation machinery; 20% of 2013E sales), which manufactures plants and rigs that are used for foundation engineering. Petreven (drilling services, 9% of 2013E sales): as a drilling contractor, this division operates onshore and offshore drilling rig engineering & management services. Petreven currently operates 14 HH (hydraulic) rigs in Latam. Drillmec (drilling machinery, 32% of 2013E sales), which manufactures onshore and, as a more recent diversification, offshore Oil & Gas (both conventional and HH/hydraulic) and water rigs. Trevi boasts a well-diversified geographic exposure: we expect the largest region in 2013 to be LatAm, where the company is active with all its four divisions and to which Petreven has exclusive exposure. We expect Middle East to represent 21% of 2013E revenues, still down sharply from 35/40% in 2008/09 when several large and very profitable contracts were under execution, notably in Dubai, Abu Dhabi and Qatar. We expect Italy to account for just 7% of total revenues, down sharply from 17% (2007), due to the ongoing slump in new infrastructure building in the country. We expect the US to represent 10% of 2013E sales. Broad geographical diversification 3 keplercheuvreux.com

4 Chart 1: Sales by region 2013E Chart 2: Sales by region E Middle East 21% Far East/RoW 9% Italy 7% Europe 15% North America 10% Africa 14% South America 24% Source: Trevi, Kepler Cheuvreux Chart 3: Foundations/drilling services -presence Chart 4: Foundations/drilling machinery - presence Peers and competitive environment In foundation services, Trevi ranks no4 worldwide after the UK-listed Keller (which, unlike Trevi, has high exposure to the US non-residential market), Soletanche-Bachy (part of the French Vinci) and the German Bauer, which we consider the closest peer in terms of job specialisation. No4 worldwide in special foundations services 4 keplercheuvreux.com

5 Chart 5: Special foundations 2012 revenues EURm (left) and EBIT margin (right) Keller Soletanche Bauer Trevi - special foundations 4.5% 4.0% 3.5% 3.0% 2.5% 2.0% 1.5% 1.0% 0.5% 0.0% Source: Company data (EBIT margin not disclosed for Soletanche Bachy), Kepler Cheuvreux In foundation equipment (Soilmec division), Trevi ranks second with EUR236m revenues in 2012, less than half the level of Bauer (EUR596m), which however also includes Drilling machines in this division. Taking Soilmec+Drillmec, Trevi s turnover in 2012 was EUR583m, quite in line with Bauer. Unlike foundation services, which is quite concentrated and with medium to high entry barriers (execution track record required; job complexity typically high), the foundation machinery competitive arena suffers from lower entry barriers and looks increasingly fragmented. In particular, apart from smaller established European competitors, price competition from emerging Asian players is on the rise, which exacerbated margin pressure in the downturn. In drilling machinery (Drillmec) and Services (Petreven), Trevi is a very small player by size. Drillmec s main competitor is the US major National Oilwell Varco, which is worldwide leader in onshore/offshore drilling rigs. However, in the last five years Drillmec has considerably strengthened from a technological point of view, through the development of the HH series, which benefits from the know-how developed by Soilmec in hydraulic foundation machinery. The HH hydraulics rigs have better performance, smaller dimensions, greater flexibility and lower logistic/transport costs than conventional rigs. Overall, >350 Drillmec rigs are operating worldwide. The recent entry into the offshore segment and growing penetration of key clients (eg Pemex) bode well for Drillmec, supporting our above-average growth expectations for this division (2013E +12% YOY, %, %), with potential upside in case of major contract awards. We believe Drillmec could benefit from the high potential for customisation and flexibility embedded in its solutions, which might help it to grab market share from big established players focused on a more traditional and standardised approach. Petreven, on the other hand, operates 14 rigs in Latam: after strong growth from 2005 (4 rigs operated) to 2012 (14 rigs), the development of this division has recently slowed, as attractive margins (EBITDA margin in the 18-20% range) are coupled to high capital intensity. No2 worldwide in foundations equipment low entry barriers Smaller player in drilling machinery and services Drillmec to drive growth in 2013/15: technological expertise, favourable outlook Overall, we expect Services to account for 48% of revenues in 2013 but for a much higher 69% of consolidated EBITDA. 5 keplercheuvreux.com

6 Chart 6: Sales by division 2013E Chart 7: EBITDA by division 2013E Machinery - Drilling (DRILLMEC) 32% Services - Foundation (TREVI) 39% Machinery 31% Machinery - Foundations (SOILMEC) 20% Services - Drilling (PETREVEN) 9% Services 69% with high cyclicality and capital intensity Main drivers for backlog and profitability: past and future We highlight the following main drivers for Trevi s business: The Construction side of the business (Trevi and Solimec divisions) is mostly dependent on infrastructure spending worldwide. In fact, Trevi is not exposed to residential, while non-residential (commercial) forms a very small part. The Oil&Gas side of the business (Drillmec and Petreven) relies on capex spending in the industry. The readiness of clients (traditionally conservative) to switch to less traditional/higher technological content solution is also an important driver for Drillmec s future growth. Main business drivers Overall, barring a decline in 2009 after the boom in 2005/08, Trevi has constantly increased its backlog and order intake over time, keeping a healthy book-to-bill at >1x. However, we point out that taking order backlog as a proxy for economic performance and profitability would have been totally misleading, as it would have prevented the capture of the key drivers of major profitability swings. Backlog evolution not a good proxy for profitability Chart 8: Sound backlog performance Chart 9: not a good proxy for profitability E 2014E 2015E Backlog (right) Intake (left) Revenues (left) Book to bill (right) 6 keplercheuvreux.com

7 In fact, the sharp profitability decline that drove EBIT margin from >11% in 2007/09 to 4.3% in 2012 was driven by two main issues: 1. The end of very lucrative (and in our view one-off ) projects in the Middle East. Trevi has been present in Middle East for a long time through its Swissboring subsidiary and it benefited from the construction, boom particularly in Dubai, suffering strongly from the subsequent downturn of As per Chart 2, the declining weight of Middle East in the overall turnover was coupled with increases in Latam and North America: while intake and turnover were well protected, the adverse mix impact was significant: EBIT margin in services fell from 15% in 2009 to 5.6% in 2012, entirely due to the Trevi division as Petreven kept resilient margins over the period (breakdown not officially disclosed). Booming profitability of 2007/09 unlikely to be repeated any time soon 2. A massive profitability decline in Machinery, with EBIT margin down from the peak of 13.7% in 2007 to just 2.8% in Also in this case, the breakdown between Soilmec and Drillmec is not officially disclosed, but we believe most of it was driven by Soilmec, which kept relatively resilient revenues over the period but suffered from huge price competition, also driven by growing competition from newcomers (Asian players). Chart 10: Machinery profitability suffered most Chart 11: Capital employed up, ROCE down sharply Margin deterioration was only a part of the story, as its detrimental impact on ROCE was greatly exacerbated by strong growth in capital employed, which almost trebled from EUR0.3bn in 2007 to >EUR0.8bn in This was largely driven by working capital deterioration: in fact NWC grew from c EUE0.1bn (2007) to c EUR0.5bn (2005), despite increasing resort to non-recourse factoring. This trend was driven by a mix of longer payment terms for clients (higher receivables), higher inventories (notably at Soilmec) and lower advance payments. Trevi versus peer Bauer: historical and expected trends very similar We have compared Trevi s operating trends with those of Bauer, its closest listed competitor based in Germany. P&L trends (2007 = 100) were very similar: both companies posted growing revenues over and declining profitability, and we (KECH estimates for both companies) still expect similar trends for in our base case, with potential for Trevi to outperform Bauer in the event of significant intake by Drillmec. Capital employed deterioration was much greater for Trevi: as such, its initial ROCE 2010/12: growing capital employed + declining profitability = strong ROCE deterioration Trevi vs. Bauer: similar past and expected trends 7 keplercheuvreux.com

8 premium (2007: c 30% Trevi, c 20% Bauer) faded over time. We expect post-tax ROCE to have bottomed to c 5% for both companies in 2012, with a mild recovery to 7/8% in Chart 12: Trevi vs Bauer: very similar P&L trends Chart 13: Trevi vs Bauer: ROCE/capital employed trend Table 1: SWOT analysis STRENGTHS Well established positioning/track record Technological expertise Broad geo diversification smoothes risks Outsourcing lower fixed costs OPPORTUNITIES Drillmec: further market share gain leveraging on HH technology and newly built penetration in offshore Trevi: sizeable order opportunities, mostly in the US, Middle East WEAKNESSES Capital intensive business (fixed + working capital) High financial leverage, patchy FCF generation THREATS Trevi division: mid to high execution risks in complex jobs Soilmec: growing competition from Asian players Anaemic recovery in developed countries in infra-spending Weaker USD vs. Euro Recovery and some deleveraging ahead, at a slow pace Good old days ( ) not expected to return any time soon We project a 6% CAGR 2012/15 on revenues, 9% on EBITDA and 32% on net profit (starting from low absolute figures). We expect EBIT margin to have bottomed in FY 2012 at 4.3%, but we project a quite uninspiring 140bps cumulative margin expansion to 5.7% in FY This is well below peaks of >11% touched in 2007/09, when: 1) the Trevi division was benefiting from positive infrastructure spending across all geographic areas and in particular from hefty and in effect one-off profitability in the Middle East (Dubai, Abu Dhabi and Qatar); 2) Soilmec too was running healthy margins (and low inventory levels), in a much less harsher competitive environment. At this time, we do not expect such favourable business conditions to be repeated in the period 2013/15. In the Valuation section, we have in any case drafted a best case scenario, including a sensitivity analysis in We flag the downward guidance revision issued by Bauer on 2 August. Bauer, which revised its EBIT guidance down from EUR85m to EUR70m, blamed delays in major projects in the Construction area, reduced margins in the Equipment segment. While this looks quite company-specific, particularly as regards special foundations, nevertheless it points to a continued weak environment for the Trevi and Soilmec division in the next few quarters. Bottom in 2012 We project 6% CAGR 2012/15 on revenues, 9% on EBITDA, 32% on net profit Bauer: recent guidance downgrade 8 keplercheuvreux.com

9 Company update 9 keplercheuvreux.com Table 2: Divisional sales, order intake, order backlog E Intake Sales Backlog Intake Sales Backlog Intake Sales Backlog Intake Sales Backlog Intake Sales Backlog Intake Sales Backlog Intake Sales Backlog Intake Sales Backlog Intake Sales Backlog FY07 FY07 FY07 FY08 FY08 FY08 FY09 FY09 FY09 FY10 FY10 FY10 FY11 FY11 FY11 FY12 FY12 FY12 FY13E FY13E FY13E FY14E FY14E FY14E FY15E FY15E FY15E Trevi (Foundation services) YOY 11% 28% 9% -15% -4% 12% 3% 4.5% 5% Petreven (Drilling services) YOY 69% 39% 1% 22% 23% 11% 2% 2% 3% Interco Total services YOY 49% 11% 37% 52% 29% 62% -57% 7% -31% 61% -11% 10% 28% 0% 38% -20% 13% 0% 3% 4% -1% 5% 4% 0% 7% 5% 2% Solimec (Foundations machinery) YOY 62% 14% -41% 8% 10% 6% 2% 6% 7% Drillmec (Drilling machinery) YOY 62% 49% 8% -7% 31% -8% 12% 6% 7% Interco Total machinery YOY -5% 50% -14% 75% 31% 47% -48% -18% -27% 15% -2% -13% 40% 23% 10% 3% -2% 21% 5% 8% 12% 6% 6% 12% 7% 7% 11% Elisions Total YOY 19% 30% 11% 61% 27% 56% -52% -3% -30% 36% -8% 1% 34% 11% 28% -9% 5% 6% 4% 6% 3% 6% 5% 5% 7% 6% 5% Source: Trevi, Kepler Cheuvreux Table 3: Divisional EBITDA and EBIT E FY07 FY08 FY09 FY10 FY11 FY12 FY13E FY14E FY15E Services EBITDA margin 16.2% 18.3% 24.7% 19.4% 14.5% 14.4% 14.5% 15.4% 15.6% Machinery EBITDA margin 15.5% 12.9% 9.2% 9.0% 8.3% 5.4% 6.0% 6.3% 7.2% Services -EBIT margin 11.2% 13.3% 15.0% 11.6% 7.6% 5.6% 6.0% 6.7% 7.0% Machinery EBIT margin 13.7% 11.4% 7.3% 6.3% 5.9% 2.8% 3.5% 3.9% 4.6% Services - EBITDA Machinery - EBITDA Other/Elisions EBITDA total Margin 15.9% 15.6% 17.6% 14.4% 11.2% 10.1% 10.1% 10.7% 11.1% Services - EBIT Machinery - EBIT Other/elisions EBIT Total Margin 12.4% 11.9% 11.3% 8.8% 6.5% 4.3% 4.7% 5.2% 5.7% Source: Trevi, Kepler Cheuvreux

10 Table 4: P&L E EURm E 2014E 2015E Revenues YOY 36.1% 33.3% 30.1% 36.7% -8.9% -14.0% 20.7% 1.8% 6.0% 5.3% 5.7% Costs (249.3) (357.4) (485.1) (623.3) (888.6) (748.2) (632.3) (825.2) (822.3) (876.4) (919.7) (968.9) on revenues 65.3% 69.4% 71.0% 69.8% 73.1% 68.3% 67.1% 72.5% 71.0% 71.4% 71.2% 70.9% Labour (81.5) (94.0) (104.7) (121.6) (146.9) (165.3) (172.6) (193.5) (223.0) (232.0) (241.4) (251.2) on revenues 22.2% 18.9% 16.3% 14.4% 13.7% 16.0% 18.1% 18.2% 20.0% 19.6% 19.4% 19.0% EBITDA EBITDA margin 11.4% 11.1% 13.3% 15.9% 15.6% 17.6% 14.4% 11.2% 10.1% 10.1% 10.7% 10.8% YOY 33.0% 54.9% 56.5% 24.1% 9.3% -24.5% -13.3% -5.6% 6.7% 11.0% 10.8% Provisions (5.6) (6.1) (3.6) (3.6) (6.3) (22.3) (7.6) (3.3) (15.6) (8.0) (8.0) (9.0) Amortisation (1.4) (1.7) (1.9) (2.1) (2.6) (3.4) (3.6) (4.3) (5.3) (6.3) (6.8) (7.4) Depreciation (16.2) (18.8) (22.0) (24.3) (29.8) (38.8) (41.7) (42.1) (43.9) (49.2) (52.8) (55.7) D&A on rev. 4.7% 4.0% 3.5% 3.0% 2.7% 3.8% 4.8% 4.4% 4.4% 4.7% 4.8% 4.8% EBIT EBIT margin 5.0% 5.8% 9.0% 12.4% 11.9% 11.3% 8.8% 6.5% 4.3% 4.7% 5.2% 5.7% YOY 56.2% 102.4% 79.0% 22.7% -8.0% -28.1% -17.8% -31.5% 18.6% 16.1% 15.1% Net fin. charges (8.8) (3.4) (15.5) (18.1) (18.4) (12.7) (14.1) (18.0) (26.5) (25.7) (24.7) (23.8) Pre tax profit Taxes (6.4) (11.6) (14.7) (28.0) (31.8) (20.4) (24.5) (24.2) (9.5) (14.7) (19.5) (23.1) Tax rate 67% 45.8% 34.4% 32.7% 29.1% 19.5% 34.9% 47.2% 45.2% 48.0% 48.0% 45.0% Total net profit Minorities (0.6) (0.9) (1.2) (2.0) (2.7) (2.0) 0.7 (1.4) (0.7) (2.1) (2.7) (3.4) Net Profit Net margin 0.7% 2.6% 4.2% 6.6% 7.0% 7.9% 4.9% 2.4% 1.0% 1.2% 1.5% 1.9% YOY 412.8% 108.7% 108.6% 33.8% 10.0% -43.6% -44.6% -58.0% 27.9% 33.0% 35.3% Source: Trevi, Kepler Cheuvreux We project NWC/sales stabilisation, slow deleveraging ahead On our estimates, NWC/sales should continue to decline slightly, following the peak touched in 2010, on the back of gradually improving payment terms from clients and assuming some improvement in advance payments. Coupled to profitability recovery from the 2012 bottom, this should enable NFP/EBITDA to improve from 3.7x (2012) to 2.7x (2015E). We project NFP/EBITDA down from 3.7x (2012) to 2.7x (2015E) 10 keplercheuvreux.com

11 Table 5: Balance sheet E E 2014E 2015E Intangibles Tangibles Stakes/other Fixed assets Inventories Due from clients Receivables Other Current assets Payables (135.5) (215.2) (218.4) (290.5) (442.1) (279.9) (270.9) (463.9) (335.6) (384.2) (415.7) (451.3) Other (5.2) (11.4) (12.1) (29.5) (25.8) (33.5) (24.4) (26.9) (28.5) (30.7) (32.2) (33.9) Current liabilities (140.7) (226.6) (230.4) (320.0) (468.0) (313.4) (295.4) (490.8) (364.1) (414.9) (447.9) (485.2) NWC % on sales 26.4% 17.1% 19.5% 13.1% 22.4% 40.0% 45.6% 44.1% 42.5% 39.3% 37.8% 35.8% Severance Pay (12.6) (14.2) (16.1) (14.8) (15.4) (16.8) (16.9) (17.9) (19.3) (19.3) (19.3) (19.3) Other funds (23.1) (30.7) (30.7) (29.7) (29.2) (29.6) (34.4) (39.1) (41.9) (46.9) (51.9) (56.9) Total Funds (35.8) (44.8) (46.7) (44.5) (44.6) (46.4) (51.3) (57.0) (61.2) (66.2) (71.2) (76.2) Capital employed Financed by : Equity Minorities Total equity Short-term debt Long-term debt Cash (34.5) (51.4) (89.9) (90.8) (88.1) (112.0) (134.7) (162.6) (189.9) (189.9) (189.9) (189.9) Other (0.2) (0.2) (0.2) (0.1) (1.0) (1.4) 0.0 (0.5) (0.1) NFP NFP/Equity (x) NFP/EBITDA (x) Source: Trevi, Kepler Cheuvreux Chart 14: NWC/Sales and NWC/EBITDA to have peaked in 2010/2012 respectively % % % % % % % % % e 2014E 2015E NFP/EBITDA (left) NWC/Sales (right) 11 keplercheuvreux.com

12 The capital intensity of Trevi s business was reflected in organic FCF absorption in past years, particularly in 2008/09 when high capex was coupled with NWC deterioration. Going forward, we assume: 1) capex 2013/15 to stabilise around EUR70m, still above D&A; 2) NWC outflow to stop. Under these assumptions, we expect equity FCF in the EUR16-29m range in 2013/15 (FCF yield: %). Assuming DPS to remain flat at EUR0.13ps over the period, this should be just enough to allow for a minor deleverage. High capital intensity to stay, but we project NWC/Sales to stabilise Table 6: Cash flow E E 2014E 2015E EBIT Depreciation Amortisation Total sources Taxes Capex Change in NWC Total uses Net fin. charges FCF Convertible Dividends Other Cash flow from other Delta NFP NFP (debt)/cash We believe D&A and financial charges are underestimated by consensus While we are quite aligned with consensus on revenues and EBITDA, we believe most contributors are failing to capture growing D&A and financial charges going forward. Hence, we are positioned 16-17% below EBIT consensus and a material 27-42% below on net profit over the period. We are aligned to consensus on sales/ebitda, but remain materially below on EPS Table 7: Our estimates versus Bloomberg consensus EURm KECH 2013 BBG delta 2014 KECH 2014 BBG delta 2015 KECH 2015 BBG delta CAGR CAGR 2012/ /15 KECH BBG Revenues % % % 6% 6% EBITDA % % % 9% 10% Margin 10.1% 10.1% 10.4% 10.7% 10.8% 11.1% 11.1% EBIT % % % 17% 24% Margin 4.3% 4.7% 5.6% 5.2% 6.3% 5.7% 6.8% Net profit % % % 32% 47% NFP % % % Source: Bloomberg, Kepler Cheuvreux 12 keplercheuvreux.com

13 Initiating with Hold, TP EUR6.5 DCF returns EUR6.5 fair value We value Trevi at EUR6.5 per share (downside: -3%) through our DCF (WACC: 8.3%, TG: 2%). We assume EBIT margin to recover from 4.7% (2013) to 8.5% in the terminal year, well below the 12.4% peak touched in As the stock is trading in full valuation territory, we rate it a Hold. Our DCF points to EUR6.5ps Table 8: DCF valuation EURm 2013E 2014E 2015E 2016E 2017E 2018E 2019E 2020E 2021E 2022E Terminal EBIT EBIT margin 4.7% 5.2% 5.7% 7.5% 7.5% 8.0% 8.0% 8.2% 8.3% 8.5% Taxes on EBIT (27) (31) (34) (43) (44) (49) (50) (53) (54) (58) tax rate 48% 48% 45% 42% 42% 42% 42% 42% 42% 42% NOPAT D&A (56) (60) (63) (54) (56) (58) (59) (61) (63) (65) Gross operating cash flow Change in net working capital 11 (6) 1 (14) (15) (15) (16) (16) (16) (17) Adj. for down-payments Net operating cash flow Capex (66) (66) (71) (55) (57) (58) (60) (62) (64) (66) FCF WACC 8.3% TG 2% Discounted cash flow discounted cash flow A. discounted cash flow % Terminal value 1,290 Implied EV/EBITDA TV 6.3x Implied EV/EBIT TV 9.2x B. discount. terminal value % A+B. enterprise value % NFP of FY2012A (413) Employee's benefits (19) Minorities as of FY2011E (23) Equity Value 448 No of shares (m) 70.4 Fair value - EURps 6.5 upside +2% DCF sensitivity to margin recovery/terminal EBIT margin The following table reports our valuation sensitivity to terminal EBIT margin, which is quite huge also in light of high financial leverage (NFP is 47% of current EV): in fact, each 100bps of margin swing in the terminal year drives a 17% swing in the equity value. If we assume terminal EBIT margin up to 12.4% (2007 peak), the stock would be worth EUR11.1ps, 71% above our base case. DCF: high sensitivity to terminal EBIT margin 13 keplercheuvreux.com

14 Table 9: DCF valuation sensitivity to terminal EBIT margin EBIT margin - terminal year Fair value - EURps delta vs. base case 4.3% (no recovery vs. 2012) % 5.2% % 6.2% % 7.2% % 8.2% 6.5 0% 9.2% % 10.2% % 11.2% % 12.4% (return to 2007 peak) % Trading multiples: peer comparison We have compared Trevi with its two listed peers in special foundations, Bauer (Germany) and Keller (UK), and with its closest peer in drilling, National Oilwell Varco (US). Trevi is trading at a sizeable premium to its peers, particularly on P/E. Trading multiples: Trevi trading at premium to peers Table 10: Peer comparison P/E (x) EV/EBITDA (x) EV/EBIT (x) 2013E 2014E 2015E 2013E 2014E 2015E 2013E 2014E 2015E Bauer Keller Average Special Foundations National Oilwell Varco (NOV) Trevi Trevi vs Construction 138% 119% 86% 13% 15% 11% 28% 33% 24% Trevi vs NOV 154% 123% 89% 2% 6% 3% 72% 75% 64% Source: Bloomberg, Kepler Cheuvreux SOP by division points to EUR5.2 fair value We have also built a SOP valuation by division, centred on 2014E, applying 5.9x EV/EBITDA as the average of Bauer and Keller to the special foundation business (Trevi+Soilmec divisions) and 6.5x EV/EBITDA (in line with NOV) to the Drilling business. Our divisional SOP returns a EUR5.2ps fair value (downside: -18%). SOP by division points to EUR5.2ps Table 11: SOP by division EURm EBITDA 2014E EV/EBITDA 2014E EV/Equity Value 2014E Foundations (Trevi+Soilmec), est x Drilling (Drillmec+Petreven), est x EV NFP (401.9) Pension (19.3) Minorities (31.8) Equity value Number of shares 70.2 FV per share (EUR) 5.2 downside -18% 14 keplercheuvreux.com

15 Best case valuation: what if extra EUR450m intake H2 2013E-2015E? Finally, we have carried out a sensitivity analysis assuming a best-case scenario for order intake, with the following assumptions: 1) EUR450m additional order intake in the Special Foundations division in H , related to potential big projects under tender in the US (dam repairs) or at Drillmec, mostly related to more successful penetration with key clients (eg. Pemex) and in the offshore segment, in which penetration was more recent, and where potential intake opportunities might be sizeable; 2) these orders bring an average 20% EBITDA margin, well above the divisional average. The impact on 2015 would be quite sizeable, as sales would be boosted by 12%, EBITDA by 22% and EPS by a huge 67%. Assuming such a scenario, we would derive a EUR8ps FV based on 5.5x EV/EBITDA 2015E (upside: 25%), a hefty 52% above our base case SOP. Best case valuation: what if EUR450m extra intake in H213/FY15? points to EUR8ps Table 12: Best case valuation what if additional EUR450m intake is collected in 2013/15 (Trevi and/or Drillmec)? EURm Intake base case EBITDA 2015 best 179 Intake best case EV/EBITDA x Delta 12.4% 11.7% 10.9% EV 986 Revenues base case NFP (360) Revenues best case Pension (19) Delta 2.5% 11.2% 12.1% Minorities (49) EBITDA base case Equity value 559 EBITDA best case Number of shares 70.2 Delta 5.0% 21.1% 21.7% SOP best case-eurps 8.0 Net profit base case upside 25% Net profit best case SOP base case-eurps 5.2 Delta 22.6% 79.3% 67.0% delta vs base case 52% 15 keplercheuvreux.com

16 Valuation FY to 31/12 (EUR) E 2014E 2015E Per share data EPS adjusted % Change 33.8% 10.0% -43.6% -49.5% -58.0% 27.9% 33.0% 35.3% EPS adjusted and fully diluted % Change 33.8% 10.0% -43.6% -49.5% -58.0% 27.9% 33.0% 35.3% EPS reported % Change 33.8% 10.0% -43.6% -49.5% -58.0% 27.9% 33.0% 35.3% EPS Consensus Cash flow per share Book value per share DPS Number of shares, YE (m) Number of shares, fully diluted, YE (m) Share price Latest price / year end week high (Year high) week low (Year low) Average price (Year) Enterprise value (EURm) Market capitalisation Net financial debt Pension provisions Market value of minorities Market value of equity affiliates (net of tax) Others Enterprise value 1, , , , Valuation P/E adjusted P/E adjusted and fully diluted P/E consensus P/BV P/CF na na 6.8 na Dividend yield (%) 1.0% 1.4% 1.1% 1.5% 2.8% 2.0% 2.0% 1.9% Dividend yield preference shares (%) 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% FCF yield (%) na na 7.6% na 3.8% 5.2% 3.6% 6.5% ROE (%) 37.4% 29.8% 13.6% 6.4% 2.5% 3.2% 4.1% 5.4% ROIC (%) 20.4% 14.3% 7.3% 4.6% 3.1% 3.5% 4.0% 4.8% EV/Sales EV/EBITDA keplercheuvreux.com

17 Income statement FY to 31/12 (EURm) E 2014E 2015E Sales 1, , , , , , ,321.1 % Change 27.0% -3.1% -8.0% 11.4% 5.1% 6.3% 5.2% 5.9% EBITDA reported % Change 24.1% 9.3% -24.5% -13.3% -5.6% 6.7% 11.0% 10.8% Depreciation and amortisation Goodwill impairment Other financial result and associates EBIT reported % Change 22.7% -8.0% -28.1% -17.8% -31.5% 18.6% 16.1% 15.1% Net financial items Associates Others Earnings before tax % Change 27.1% -4.2% -32.9% -26.9% -59.1% 45.5% 33.0% 26.5% Tax Net profit from continuing operations % Change 33.8% 8.9% -45.7% -40.7% -57.6% 38.1% 33.0% 33.8% Net profit from discontinuing activities Net profit before minorities Minorities Net profit reported % Change 33.8% 10.0% -43.6% -44.6% -58.0% 27.9% 33.0% 35.3% Adjustments Net profit adjusted % Change 33.8% 10.0% -43.6% -44.6% -58.0% 27.9% 33.0% 35.3% Gross profit EBITDA adjusted EBIT adjusted Gross profit margin (%) 30.3% 33.5% 32.5% 29.4% 30.1% 29.6% 29.9% 30.1% EBITDA margin (%) 15.6% 17.6% 14.4% 11.2% 10.1% 10.1% 10.7% 11.1% EBIT margin (%) 11.9% 11.3% 8.8% 6.5% 4.3% 4.7% 5.2% 5.7% Net profit margin (%) 7.0% 7.9% 4.9% 2.4% 1.0% 1.2% 1.5% 1.9% Tax rate (%) 29.1% 19.5% 34.9% 47.2% 45.2% 48.0% 48.0% 45.0% Payout ratio (%) 11.3% 10.3% 9.3% 19.7% 35.5% 84.5% 66.1% 49.7% EPS reported (EUR) % change 33.8% 10.0% -43.6% -49.5% -58.0% 27.9% 33.0% 35.3% EPS adjusted (EUR) % change 33.8% 10.0% -43.6% -49.5% -58.0% 27.9% 33.0% 35.3% EPS adj and fully diluted(eur) % change 33.8% 10.0% -43.6% -49.5% -58.0% 27.9% 33.0% 35.3% DPS (EUR) % change 20.0% 0.0% 8.3% 0.0% 0.0% 0.0% 0.0% -7.4% DPS,preference shares (EUR) % Change na na na na na na na na Consensus Sales (EURm) 1, , ,325.0 Consensus EBITDA (EURm) Consensus EBIT (EURm) Consensus EPS (EUR) Consensus DPS (EUR) keplercheuvreux.com

18 Cash flow statement FY to 31/12 (EURm) E 2014E 2015E Net profit before minorities Depreciation and amortisation Goodwill impairment Change in working capital Others Cash Flow from operating activities % Change na na na -94.9% % 4.5% -8.2% 22.0% Capex Free cash flow % Change na na na na na 89.3% -31.4% 81.9% Acquisitions Divestments Dividend paid Share buy back Capital increases Others Change in net financial debt Change in cash and cash equivalents Attributable FCF Cash flow per share (EUR) % Change na na na -95.3% % 4.5% -8.2% 22.0% FCF per share (EUR) na na 0.86 na % Change na na na na na 89.3% -31.4% 81.9% Capex / Sales (%) 11.4% 7.8% 5.4% 6.8% 6.6% 5.6% 5.3% 5.4% Capex / D&A (%) 377.1% 190.6% 114.5% 156.2% 148.7% 118.9% 110.7% 112.4% Cash flow / Sales (%) -3.6% -1.9% 11.2% 0.5% 7.7% 7.5% 6.6% 7.6% FCF / Sales (%) -15.0% -9.7% 5.8% -6.3% 1.1% 2.0% 1.3% 2.2% FCF Yield (%) na na 7.6% na 3.8% 5.2% 3.6% 6.5% Unlevered FCF Yield (%) na na 3.9% na 3.1% 3.0% 2.5% 3.4% 18 keplercheuvreux.com

19 Balance sheet FY to 31/12 (EURm) E 2014E 2015E Cash and cash equivalents Inventories Accounts receivable Other current assets Current assets , , , , ,124.5 Tangible assets Goodwill Other Intangible assets Financial assets Other non-current assets Non-current assets Short term debt Accounts payable Other short term liabilities Current liabilities Long term debt Pension provisions Other long term provisions Other long term liabilities Non-current liabilities Shareholders' equity Minority interests Total equity Balance sheet total 1, , , , , , , ,569.7 % Change 52.2% 6.4% 0.9% 24.9% -6.0% 2.9% 2.1% 2.3% Book value per share (EUR) % Change 44.7% 33.5% 17.2% 9.6% -1.5% 0.3% 1.6% 2.2% Net debt Net financial debt Trade working capital Working capital Inventories/sales 30.1% 33.6% 24.6% 27.6% 23.7% 24.7% 24.7% 24.1% Invested capital Net debt / EBITDA (x) Net debt / FCF (x) Gearing (%) 136.9% 140.5% 108.1% 92.4% 95.7% 90.8% 88.7% 84.2% Goodwill / Equity (%) 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 19 keplercheuvreux.com

20 Divisions and regions FY to 31/12 (EUR) E 2014E 2015E Key assumptions Sales by division Foundations Drlling Intercoy EBIT by division Foundations Drlling Intercoy EBIT margin (%) Foundations (%) 18.3% 24.7% 19.4% 14.5% 14.4% 14.5% 15.4% 15.6% Drlling (%) 12.9% 9.2% 9.0% 8.3% 5.4% 6.0% 6.3% 7.2% Geographic breakdown of sales, adjusted (%) Eurozone 28.7% 18.0% 19.0% 24.1% 24.1% 24.1% 24.1% 24.1% of which Italy 12.0% 12.7% 13.7% 11.5% 11.5% 11.5% 11.5% 11.5% North America 8.6% 11.2% 15.8% 14.8% 14.8% 14.8% 14.8% 14.8% Latam 11.1% 11.8% 18.3% 30.9% 30.9% 30.9% 30.9% 30.9% Asia 5.2% 3.9% 5.3% 8.0% 8.0% 8.0% 8.0% 8.0% Middle East 34.0% 40.7% 30.9% 15.7% 15.7% 15.7% 15.7% 15.7% Currency exposure of sales (%) EUR 28.7% 18.0% 19.0% 24.1% 24.1% 24.1% 24.1% 24.1% USD 71.3% 82.0% 81.0% 75.9% 75.9% 75.9% 75.9% 75.9% Hedging policy none 20 keplercheuvreux.com

21 Research ratings and important disclosures Disclosure checklist - Potential conflict of interests Stock ISIN Disclosure (See Below) Currency Price Bauer DE nothing to disclose EUR Keller GB nothing to disclose GBP 1, Trevi Group IT nothing to disclose EUR 6.36 Vinci FR nothing to disclose EUR Source: Factset closing prices of 02/08/2013 Stock prices: Prices are taken as of the previous day s close (to the date of this report) on the home market unless otherwise stated. Key: Kepler Capital Markets SA (KCM) holds or owns or controls 100% of the issued shares of Crédit Agricole Cheuvreux SA (CA Cheuvreux), collectively hereafter KEPLER CHEUVREUX. 1. KEPLER CHEUVREUX holds or owns or controls 5% or more of the issued share capital of this company; 2. The company holds or owns or controls 5% or more of the issued share capital of Kepler Capital Markets SA; 3. KEPLER CHEUVREUX is or may be regularly carrying out proprietary trading in equity securities of this company; 4. KEPLER CHEUVREUX has been lead manager or co-lead manager in a public offering of the issuer s financial instruments during the last twelve months; 5. KEPLER CHEUVREUX is a market maker in the issuer s financial instruments; 6. KEPLER CHEUVREUX is a liquidity provider in relation to price stabilisation activities for the issuer to provide liquidity in such instruments; 7. KEPLER CHEUVREUX acts as a corporate broker or a sponsor or a sponsor specialist (in accordance with the local regulations) to this company; 8. KEPLER CHEUVREUX and the issuer have agreed that KEPLER CHEUVREUX will produce and disseminate investment research on the said issuer as a service to the issuer; 9. KEPLER CHEUVREUX has received compensation from this company for the provision of investment banking or financial advisory services within the previous twelve months; 10. KEPLER CHEUVREUX may expect to receive or intend to seek compensation for investment banking services from this company in the next three months; 11. The author of, or an individual who assisted in the preparation of, this report (or a member of his/her household), or a person who although not involved in the preparation of the report had or could reasonably be expected to have access to the substance of the report prior to its dissemination has a direct ownership position in securities issued by this company; 12. An employee of KEPLER CHEUVREUX serves on the board of directors of this c ompany; 13. As at the end of the month immediately preceding the date of publication of the research report Kepler Capital Markets, Inc. beneficially owned 1% or more of a class of common equity securities of the subject company; 14. KEPLER CHEUVREUX and UniCredit Bank AG have entered into a Co-operation Agreement to form a strategic alliance in connection with certain services including services connected to investment banking transactions. UniCredit Bank AG provides investment banking services to this issuer in return for which UniCredit Bank AG received consideration or a promise of consideration. Separately, through the Cooperation Agreement with UniCredit Bank AG for services provided by KEPLER CHEUVREUX in connection with such activities, KEPLER CHEUVREUX also received consideration or a promise of a consideration in accordance with the general terms of the Co-operation Agreement; 15. KEPLER CHEUVREUX and Crédit Agricole Corporate & Investment Bank ( CACIB ) have entered into a Co-operation Agreement to form a strategic alliance in connection with certain services including services connected to investment banking transactions. CACIB provides investment banking services to this issuer in return for which CACIB received consideration or a promise of consideration. Separately, through the Co-operation Agreement with CACIB for services provided by KEPLER CHEUVREUX in connection with such activities, KEPLER CHEUVREUX also received consideration or a promise of a consideration in accordance with the general terms of the Co-operation Agreement; 16. UniCredit Bank AG holds or owns or controls 5% or more of the issued share capital of KEPLER CAPITAL MARKETS SA. UniCredit Bank AG provides investment banking services to this issuer in return for which UniCredit Bank AG received consideration or a promise of consideration; 17. CACIB holds or owns or controls 15% of more of the issued share capital of KEPLER CAPITAL MARKETS SA. CACIB provides investment banking services to this issuer in return for which CACIB received consideration or a promise of consideration; 18. An employee of UniCredit Bank AG serves on the board of directors of KEPLER CAPITAL MARKETS SA; 19. Two employees of CACIB serves on the board of directors of KEPLER CAPITAL MARKETS SA. CACIB provides investment banking services to this issuer in return for which CACIB received consideration or a promise of consideration; 20. The services provided by KEPLER CHEUVREUX are provided by Kepler Equities S.A.S., a wholly-owned subsidiary of KEPLER CAPITAL MARKETS SA. Rating history: KEPLER CHEUVREUX current rating for Trevi Group is Hold and was issued on 06/08/2013. We did not disclose the rating to the issuer before its publication and dissemination. Rating ratio Kepler Cheuvreux Q Rating breakdown A B Buy 52.5% 0.0% Hold 23.5% 0.0% Reduce 23.5% 0.0% Not Rated/Under Review/Accept Offer 0.5% 0.0% Total 100.0% 0.0% A: % of all research recommendations B: % of issuers to which Investment Banking Services are supplied From 9 May 2006, KEPLER CHEUVREUX s rating system consists of three ratings: Buy, Hold and Reduce. For a Buy rating, the minimum expected upside is 10% in absolute terms over 12 months. For a Hold rating the expected upside is below 10% in absolute terms. A Reduce rating is applied when there is expected downside on the stock. Target prices are set on all stocks under coverage, based on a 12-months view. Equity ratings and valuations are issued in absolute terms, not relative to any given benchmark. Analyst disclosures The functional job title of the person(s) responsible for the recommendations contained in this report is Equity Research Analyst unless otherwise stated on the cover. Name of the Equity Research Analyst(s): Matteo Bonizzoni, CFA Regulation AC - Analyst Certification: Each Equity Research Analyst(s) listed on the front-page of this report, principally responsible for the preparation and content of all or any identified portion of this research report hereby certifies that, with respect to each issuer or security or any identified portion of the report with respect to an issuer or security that the equity research analyst covers in this research report, all of the views expressed in this research report accurately reflect their personal views about those issuer(s) or securities. Each Equity Research Analyst(s) also certifies that no part of their compensation was, is, or will be, directly or indirectly, related to the specific recommendation(s) or view(s) expressed by that equity research analyst in this research report. Each Equity Research Analyst certifies that he is acting independently and impartially from KEPLER CHEUVREUX shareholders, directors and is not affected by any current or potential conflict of interest that may arise from any KEPLER CHEUVREUX activities. Analyst Compensation: The research analyst(s) primarily responsible for the preparation of the content of the research report attest that no part of the analyst (s ) compensation was, is or will be, directly or indirectly, related to the specific recommendations expressed by the research analyst s(s ) in the research report. The research analyst s(s ) compensation is, however, determined by the overall economic performance of KEPLER CHEUVREUX. Registration of non-us Analysts: Unless otherwise noted, the non-us analysts listed on the front of this report are employees of KEPLER CHEUVREUX, which is a non-us affiliate and parent company of Kepler Capital Markets, Inc. a SEC registered and FINRA member broker-dealer. Equity Research Analysts

22 employed by KEPLER CHEUVREUX, are not registered/qualified as research analysts under FINRA/NYSE rules, may not be associated persons of Kepler Capital Markets, Inc. and may not be subject to NASD Rule 2711 and NYSE Rule 472 restrictions on communications with covered companies, public appearances, and trading securities held by a research analyst account. Please refer to for further information relating to research and conflict of interest management. Regulators Location Regulator Abbreviation Kepler Capital Markets S.A - France Autorité des Marchés Financiers AMF Kepler Capital Markets, Sucursal en España Comisión Nacional del Mercado de Valores CNMV Kepler Capital Markets, Frankfurt branch Bundesanstalt für Finanzdienstleistungsaufsicht BaFin Kepler Capital Markets, Milan branch Commissione Nazionale per le Società e la Borsa CONSOB Kepler Capital Markets, Amsterdam branch Autoriteit Financiële Markten AFM Kepler Capital Markets, Zurich branch Swiss Financial Market Supervisory Authority FINMA Kepler Capital Markets, Inc. Financial Industry Regulatory Authority FINRA Kepler Capital Markets, London branch Financial Conduct Authority FCA Kepler Capital Markets, Vienna branch Austrian Financial Services Authority FMA Crédit Agricole Cheuvreux, SA - France Autorité des Marchés Financiers AMF Crédit Agricole Cheuvreux España S.V Comisión Nacional del Mercado de Valores CNMV Crédit Agricole Cheuvreux Niederlassung Deutschland Bundesanstalt für Finanzdienstleistungsaufsicht BaFin Crédit Agricole Cheuvreux S.A., branch di Milano Commissione Nazionale per le Società e la Borsa CONSOB Crédit Agricole Cheuvreux Amsterdam Autoriteit Financiële Markten AFM Crédit Agricole Cheuvreux Zurich Branch Swiss Financial Market Supervisory Authority FINMA Crédit Agricole Cheuvreux North America, Inc. Financial Industry Regulatory Authority FINRA Crédit Agricole Cheuvreux International Limited Financial Conduct Authority FCA Crédit Agricole Cheuvreux Nordic AB Finansinspektionen FI Kepler Capital Markets S.A and Crédit Agricole Cheuvreux SA, are authorised and regulated by both Autorité de Contrôle Prudentiel and Autorité des Marchés Financiers. For further information relating to research recommendations and conflict of interest management please refer to

23 Legal and disclosure information Other disclosures This product is not for retail clients or private individuals. The information contained in this publication was obtained from various publicly available sources believed to be reliable, but has not been independently verified by KEPLER CHEUVREUX. KEPLER CHEUVREUX does not warrant the completeness or accuracy of such information and does not accept any liability with respect to the accuracy or completeness of such information, except to the extent required by applicable law. This publication is a brief summary and does not purport to contain all available information on the subjects covered. Further information may be available on request. This report may not be reproduced for further publication unless the source is quoted. This publication is for information purposes only and shall not be construed as an offer or solicitation for the subscription or purchase or sale of any securities, or as an invitation, inducement or intermediation for the sale, subscription or purchase of any securities, or for engaging in any other transaction. This publication is not for private individuals. Any opinions, projections, forecasts or estimates in this report are those of the author only, who has acted with a high degree of expertise. They reflect only the current views of the author at the date of this report and are subject to change without notice. KEPLER CHEUVREUX has no obligation to update, modify or amend this publication or to otherwise notify a reader or recipient of this publication in the event that any matter, opinion, projection, forecast or estimate contained herein, changes or subsequently becomes inaccurate, or if research on the subject company is withdrawn. The analysis, opinions, projections, forecasts and estimates expressed in this report were in no way affected or influenced by the issuer. The author of this publication benefits financially from the overall success of KEPLER CHEUVREUX. The investments referred to in this publication may not be suitable for all recipients. Recipients are urged to base their investment decisions upon their own appropriate investigations that they deem necessary. Any loss or other consequence arising from the use of the material contained in this publication shall be the sole and exclusive responsibility of the investor and KEPLER CHEUVREUX accepts no liability for any such loss or consequence. In the event of any doubt about any investment, recipients should contact their own investment, legal and/or tax advisers to seek advice regarding the appropriateness of investing. Some of the investments mentioned in this publication may not be readily liquid investments. Consequently it may be difficult to sell or realise such investments. The past is not necessarily a guide to future performance of an investment. The value of investments and the income derived from them may fall as well as rise and investors may not get back the amount invested. Some investments discussed in this publication may have a high level of volatility. High volatility investments may experience sudden and large falls in their value which may cause losses. International investing includes risks related to political and economic uncertainties of foreign countries, as well as currency risk. To the extent permitted by applicable law, no liability whatsoever is accepted for any direct or consequential loss, damages, costs or prejudices whatsoever arising from the use of this publication or its contents. KEPLER CHEUVREUX (and its affiliates) have implemented written procedures designed to identify and manage potential conflicts of interest that arise in connection with its research business, which are available upon request. The KEPLER CHEUVREUX research analysts and other staff involved in issuing and disseminating research reports operate independently of KEPLER CHEUVREUX Investment Banking business. Information barriers and procedures are in place between the research analysts and staff involved in securities trading for the account of KEPLER CHEUVREUX or clients to ensure that price sensitive information is handled according to applicable laws and regulations. Country and region disclosures United Kingdom: This document is for persons who are Eligible Counterparties or Professional Clients only and is exempt from the general restriction in section 21 of the Financial Services and Markets Act 2000 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 Articles 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. Any investment to which this document relates is available only to such persons, and other classes of person should not rely on this document. 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Notice to U.S. Investors: This material is not for distribution in the United States, except to major US institutional investors as defined in SEC Rule 15a-6 ("Rule 15a-6"). Kepler Cheuvreux refers to Kepler Capital Markets, Société anonyme (S.A.) ( Kepler Capital Markets SA ) and its affiliates, including CA Cheuvreux, Société Anonyme (S.A.). Kepler Capital Markets SA has entered into arrangements with Crédit Agricole Cheuvreux North America, Inc. ( CA Cheuvreux North America ) and Kepler Capital Markets, Inc. ("KCM, Inc.") (collectively US Broker-Dealers ), which enables this report to be furnished to certain U.S. recipients in reliance on Rule 15a-6 through US Broker-Dealers registered under the U.S. Securities Exchange Act of 1934, as amended. 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25 Local insight, European scale Amsterdam Kepler Cheuvreux Benelux Johannes Vermeerstraat DK Amsterdam Frankfurt Kepler Cheuvreux Germany Taunusanlage Frankfurt Geneva Kepler Cheuvreux SA Route de Crassier Eysins Switzerland London Kepler Cheuvreux UK 12th Floor, Moorhouse 120 London Wall London EC2Y 5ET Madrid Kepler Cheuvreux Espana Alcala Madrid Milan Kepler Cheuvreux Italia Corso Europa Milano Paris Kepler Cheuvreux France 112 Avenue Kleber Paris Stockholm Kepler Cheuvreux Nordic Regeringsgatan Stockholm Vienna Kepler Cheuvreux Vienna Schottenring 16/2 Vienna Zurich Kepler Cheuvreux Switzerland Stadelhoferstrasse 22 Postfach 8024 Zurich Kepler Cheuvreux has exclusive international distribution rights for UniCredit s CEE product. North America Boston Kepler Capital Markets, Inc 225 Franklin Street, Floor 26 Boston MA New York CA Cheuvreux North America 1301 Avenue of the Americas, Floor 15 New York, NY San Francisco Kepler Capital Markets, Inc 50 California Street, Suite 1500 San Francisco, CA New York Kepler Capital Markets, Inc. 600 Lexington Avenue, Floor New York, NY USA