Deutsche Bank Markets Research
Europe Periodical Date Italy 7 February 2014 Italian Equities Daily
Newsflow Carola Bardelli Research Analyst (+39) 0286379708 [email protected]
Contents Francesca Di Pasquantonio Research Analyst (+39) 02 86379-753 [email protected] Azimut: Inflows in January: a very good start Gilles Errico Research Analyst ENI: 4Q13 Results and strategy update preview (+39) 02 86379-855 [email protected]
Telecom Italia: Surprise preliminary results: 2013 debt/EBITDA guidance met Paola Sabbione
Research Analyst European Broadcasters: Mediaset: Buy, target price E5.0 (+39) 02 86379-704 [email protected]
Figure 1: FTSE MIB performance as of 6 February 2014 Best Performers Worst Performers AZIMUT Euro 22.45 + 6.35% PIRELLI & C Euro 11.80 - 1.01% BMPS Euro 0.18 + 5.43% SAIPEM Euro 16.72 + 0.00% BPER Euro 6.98 + 4.65% GTECH Euro 22.93 + 0.13% ENEL Euro 3.49 + 4.43% WORLD DUTY FREE Euro 10.57 + 0.19% MEDIASET Euro 3.76 + 4.15% CNH Euro 7.73 + 0.65% Source: Deutsche Bank, Bloomberg Finance LP
Figure 2: Performance of main European stock markets as of 6 Feb. 2014 Italy Europe FTSE ITALIA ALL SHARE 20738 + 2.18% DJ Euro STOXX 309 + 1.75% FTSE MIB INDEX 19504 + 2.28% FTSE 100 6558 + 1.55% FTSE ITALIA MID CAP 26865 + 1.55% GERMAN DAX 9257 + 1.54% FTSE ITALIA SMALL CAP 18009 + 1.61% CAC 40 4188 + 1.71% Source: Deutsche Bank, Bloomberg Finance LP
______Deutsche Bank AG/London Deutsche Bank does and seeks to do business with companies covered in its research reports. Thus, investors should be aware that the firm may have a conflict of interest that could affect the objectivity of this report. Investors should consider this report as only a single factor in making their investment decision. DISCLOSURES AND ANALYST CERTIFICATIONS ARE LOCATED IN APPENDIX 1. MICA(P) 054/04/2013.
7 February 2014 Italian Equities Daily
Azimut Hold
Reuters: AZMT.MI Exchange: MIL Ticker: AZMT Inflows in January: a very good start
Price (EUR) 22.45 Price target (EUR) 17.60 Yesterday Azimut disclosed January's net inflows, which were positive at Euro 701m 52-week range (EUR) 22.45 - 11.99 (versus Euro 285m in December). In particular, mutual funds’ and discretionary Market cap (EUR) 2,953 funds’ inflows increased MoM, reaching Euro 482.1m (Euro 271.6m in December) Shares outstanding (m) 132 and Euro 164.0m (Euro 61.9m inflows in December), respectively; the insurance Free float – inflows were largely stable (Euro 48.7m, versus Euro 49.1m in December). The DJ (.STOXXE) 308.6 performance was slightly positive MoM.
Total AUM increased and reached Euro 24.5bn in January (2.4% MoM, 23.3% YoY), while total managed assets net of double counting increased to Euro 22.0bn, up 23.6% YoY, from Euro 21.4bn in December.
Paola Sabbione (+39) 02 86379-704 [email protected]
Page2 Deutsche Bank AG/London
7 February 2014 Italian Equities Daily
ENI Hold
Reuters: ENI.MI Exchange: MIL Ticker: ENI 4Q13 results and strategy update preview
Price (EUR) 16.46 4Q13 results & strategy update due 13th February Price Target(EUR) 19.00 We expect 4Q13 earnings to be 17% lower Y/Y, a deterioration in Libyan volumes 52-week range (EUR) 18.98 - 15.29 and refining conditions partially offset by the GasTerra contract settlement. However, Market cap (EUR)(m) 59,631.3 with these issues transparent, beyond some difficulty in calibrating the impact in Shares outstanding (m) 3,623 R&M (-ve) & G&P (+ve), our focus is on the strategy update. We continue to see Eni Free float (%) – as the most attractive Euro Major on FCF Yield, but if the market is to recognize this, DJ (.STOXXE) 308.6 management must build confidence that the drivers of strong CFFO growth will be
delivered. Absent this the shares are likely to remain ‘cheap’ until visibility improves.
Hold. We expect growth targets to be recalibrated post-divestments We expect E&P targets to be rebased following the sale of Eni’s interest in SeverEnergia. As a key growth asset (~50% of net adds thru 2016) we expect the 4- year cagr to fall from >4% (2012-16) to ~3% (2013-17). Furthermore, the 2016-2022 ambition of >3% p.a. (to ~2.5mboed) seems likely to be scaled back to ~2% p.a. (~2.3mboed). However, noting modest unit margins in a portfolio context we see limited read through to cash generation (~0.5bn p.a.). Volume growth potential is apparent, but confidence needs to be improved For a variety of reasons our perception of Eni’s volume inflexion point has slipped, however 2014/15 should show strong growth ex-Libya (DBe underlying 4% 2014, 8% 2015). Kashagan, Goliat, Block 15/06 & Perla could together yield >125kboed in 2015, but our concern is that once again we are factoring in ‘best case’ outcomes such that slippage will further undermine forecast EPS & CFFO. Gaining a strong sense that each project is on track is important if we are to become comfortable that EPS d/grades have played-out. Looks ‘cheap’ on cash-based metrics, but are the numbers robust? Cash generation is at the heart of the Eni bull-thesis – 2016e CFFO of €18.6bn (pre divestments, guidance apparently €19-20bn) drives a FCFY of 7.5%. Higher margin growth barrels and a partial recovery in downstream explain the uplift, but against 2013e CFFO of €12bn this looks challenging. Clarity on the cash flow target and building blocks bridging 2013-16 (or ‘17) strike us as necessary if the market is to pay for the potential in advance of its delivery. Valuation & Risk Our €19/sh target is based on the blended average of our DCF, SOTP and FCF based valuations. Upside risks include a sustained recovery in Libyan & Nigerian production and prompt settlement in gas contract renegotiations Downside risks include project delays.
Excerpt from a note published on 6 February 2014.
Click/copy this link into a browser to access the report: https://ger.gm.cib.intranet.db.com/ger/document/pdf/0900b8c087e2a216.pdf
Mark Bloomfield Lucas Herrmann (+44) 20 754-57905 (+44) 20 754-73636 [email protected] [email protected]
Deutsche Bank AG/London Page3
7 February 2014 Italian Equities Daily
Telecom Italia Buy
Reuters: TLIT.MI Exchange: MIL Ticker: TLIT Surprise preliminary results: 2013 debt/EBITDA guidance met
Price (EUR) 0.84 2013 debt, organic group and domestic EBITDA guidance met. The market is below Price target (EUR) 0.90 Net debt was guided to be Sales expected to be below last February’s guidance, consensus is well below T.I. had revised EBITDA guidance last August. Sales were not revised. However DB and consensus had trimmed sales in line with the new EBITDA guidance. Hence consensus is already well below these new indications. Domestic sales were guided down mid single digit. DB is on -9.2%, consensus down double digit. Group organic sales were guided broadly flat yoy. DB is on -6.9%, consensus - 8.6%. DB estimate is -4% yoy in organic terms. T.I. press release, Vodafone call, Swisscom’s investor day support our bullish view on domestic mobile The T.I. press release states that “Overall the recent trend of the domestic operations shows signs of gradual improvement, in line with the new targets of the 2014-2016 Plan”. This supports our view that domestic mobile prices were +30% since last August on avg. and +17% since last January. Post-paid prices have fallen in the same period as operators try to upsell, hence we estimate blended increase is in the region of 12-15% since last August with prices back to the YE 2012 level. Churn has improved as a result and MNP numbers have shrunk with the implied benefit on margins. Vodafone expressed the same view: it will take Vodafone a couple of quarters to see the benefit in numbers, however. We would expect T.I. to be quicker as its most aggressive offers were not on the customer base but only on new clients. Fastweb’s CEO stated today that: 1) he expects mobile consolidation in Italy because forces will need to be combined to roll out LTE, 2) the wire line price environment is still very solid, 3) Vodafone is 2 ys behind FWB in FTTC roll out. Only negative for T.I.: Sky’s relationship with FWB remains very solid. Procedure set for the potential disposal of Tim Brasil The procedure meets the highest standards of governance and regulates the investigation and decision-making process for any transaction that may result in the transfer to any entity other than T.I. of its holdings in Tim Brasil and to any transaction involving assets or branches of business for a value, even cumulative, exceeding E2bn. Towers and real estate remain out. Excerpt from a note published on 6 February 2014. Click/copy this link into a browser to access the report: https://ger.gm.cib.intranet.db.com/ger/document/pdf/0900b8c087e31991.pdf Carola Bardelli (+39) 0286379708 [email protected] Page4 Deutsche Bank AG/London 7 February 2014 Italian Equities Daily European Mediaset: Buy, target price E5.0 Broadcasters Focus stocks FY results on 25th March Mediaset (MS.MI),EUR3.76 Buy Price Target EUR5.00 Mediaset is scheduled to release its FY results on 25th March. A conference call will follow on the same day but the time is yet to be confirmed. Group upgrade from MSE; ests unchanged on Italian ops We make minor tweaks to the model following discussions with the company which amount to immaterial/<1% impact on EBIT and EPS. 4Q ad revenues -5% vs -4% offset by slightly lower OPEX (EBITA unchanged) Small cut to FY14/15E net interest offset by higher tax. We also incorporate the changes made to MSE earnings discussed in the following company sections. This sees Group EPS rise 7% in 2013E and 3% in 2014E. We raised mid-term margins in our report of Jan 27, Ad discussed in our report of 27 Jan (Milan Investor Day: Upping the upside) following stronger-than expected management targets for mid-term margins of 20-25% by 2016E (prior est 20%, raised to 22%) with only modest ad recovery of 3% CAGR, 10% cumulative. It is worth repeating that an often overlooked part of Mediaset’s earnings potential is the benefits still to come from the 2012-14 cost plan. E250m of the E500m savings were made in CAPEX/programming rights. These will take until 2016 to fully impact, meaning that amortization is set to fall over the next 3 years (excl 2014 offset by continuing Serie A. Excerpt from a note published on 6 February 2014. Click/copy this link into a browser to access the report: https://ger.gm.cib.intranet.db.com/ger/document/pdf/0900b8c087c7123b.pdf Laurie Davison (+44) 20 754-75849 [email protected] Deutsche Bank AG/London Page5 7 February 2014 Italian Equities Daily Appendix 1 Important Disclosures Additional information available upon request Disclosure checklist Company Ticker Recent price* Disclosure Azimut AZMT.MI 22.45 (EUR) 6 Feb 14 NA ENI ENI.MI 16.46 (EUR) 6 Feb 14 1,6,7,14,17 Telecom Italia TLIT.MI 0.84 (EUR) 6 Feb 14 1,7,14,17 Mediaset MS.MI 3.76 (EUR) 6 Feb 14 1,6,7,14 *Prices are sourced from local exchanges via Reuters, Bloomberg and other vendors. Data is sourced from Deutsche Bank and subject companies Important Disclosures Required by U.S. Regulators Disclosures marked with an asterisk may also be required by at least one jurisdiction in addition to the United States. See Important Disclosures Required by Non-US Regulators and Explanatory Notes. 1. Within the past year, Deutsche Bank and/or its affiliate(s) has managed or co-managed a public or private offering for this company, for which it received fees. 6. Deutsche Bank and/or its affiliate(s) owns one percent or more of any class of common equity securities of this company calculated under computational methods required by US law. 7. Deutsche Bank and/or its affiliate(s) has received compensation from this company for the provision of investment banking or financial advisory services within the past year. 14. Deutsche Bank and/or its affiliate(s) has received non-investment banking related compensation from this company within the past year. Important Disclosures Required by Non-U.S. Regulators Please also refer to disclosures in the Important Disclosures Required by US Regulators and the Explanatory Notes. 1. Within the past year, Deutsche Bank and/or its affiliate(s) has managed or co-managed a public or private offering for this company, for which it received fees. 6. Deutsche Bank and/or its affiliate(s) owns one percent or more of any class of common equity securities of this company calculated under computational methods required by US law. 7. Deutsche Bank and/or its affiliate(s) has received compensation from this company for the provision of investment banking or financial advisory services within the past year. 17. Deutsche Bank and or/its affiliate(s) has a significant Non-Equity financial interest (this can include Bonds, Convertible Bonds, Credit Derivatives and Traded Loans) where the aggregate net exposure to the following issuer(s), or issuer(s) group, is more than 25m Euros. For disclosures pertaining to recommendations or estimates made on securities other than the primary subject of this research, please see the most recently published company report or visit our global disclosure look-up page on our website at http://gm.db.com/ger/disclosure/DisclosureDirectory.eqsr Analyst Certification The views expressed in this report accurately reflect the personal views of the undersigned lead analyst about the subject issuers and the securities of those issuers. In addition, the undersigned lead analyst has not and will not receive any compensation for providing a specific recommendation or view in this report. Carola Bardelli Page6 Deutsche Bank AG/London 7 February 2014 Italian Equities Daily Historical recommendations and target price: Azimut (AZMT.MI) (as of 2/6/2014) 25.00 Previous Recommendations Strong Buy Buy 20.00 12 Market Perform 11 Underperform 89 10 Not Rated 15.00 6 7 Suspended Rating Current Recommendations 4 5 10.00 Buy Security Price Security 3 1 Hold 2 Sell 5.00 Not Rated Suspended Rating *New Recommendation Structure 0.00 as of September 9,2002 Feb 11 May 11 Aug 11 Nov 11 Feb 12 May 12 Aug 12 Nov 12 Feb 13 May 13 Aug 13 Nov 13 Date 1. 07/07/2011: Buy, Target Price Change EUR9.50 7. 07/03/2013: Buy, Target Price Change EUR14.50 2. 19/10/2011: Buy, Target Price Change EUR8.50 8. 25/04/2013: Buy, Target Price Change EUR15.00 3. 17/04/2012: Buy, Target Price Change EUR9.50 9. 09/05/2013: Buy, Target Price Change EUR15.60 4. 15/10/2012: Buy, Target Price Change EUR10.10 10. 09/07/2013: Buy, Target Price Change EUR16.00 5. 08/11/2012: Buy, Target Price Change EUR10.50 11. 25/07/2013: Buy, Target Price Change EUR17.60 6. 25/01/2013: Buy, Target Price Change EUR14.00 12. 29/10/2013: Downgrade to Hold, EUR17.60 Historical recommendations and target price: ENI (ENI.MI) (as of 2/6/2014) 25.00 Previous Recommendations Strong Buy Buy 20.00 1 7 2 5 6 9 Market Perform 4 3 8 Underperform Not Rated 15.00 Suspended Rating Current Recommendations 10.00 Buy Security Price Security Hold Sell 5.00 Not Rated Suspended Rating *New Recommendation Structure 0.00 as of September 9,2002 Feb 11 May 11 Aug 11 Nov 11 Feb 12 May 12 Aug 12 Nov 12 Feb 13 May 13 Aug 13 Nov 13 Date 1. 16/02/2011: Hold, Target Price Change EUR19.00 6. 29/08/2012: Buy, Target Price Change EUR21.00 2. 04/04/2011: Hold, Target Price Change EUR20.00 7. 13/05/2013: Buy, Target Price Change EUR22.00 3. 21/07/2011: Hold, Target Price Change EUR19.00 8. 01/07/2013: Buy, Target Price Change EUR20.00 4. 06/12/2011: Upgrade to Buy, Target Price Change EUR20.00 9. 11/12/2013: Downgrade to Hold, Target Price Change EUR19.00 5. 03/07/2012: Buy, Target Price Change EUR19.50 Deutsche Bank AG/London Page7 7 February 2014 Italian Equities Daily Historical recommendations and target price: Telecom Italia (TLIT.MI) (as of 2/6/2014) 1.20 1 Previous Recommendations Strong Buy 1.00 Buy 2 3 4 5 Market Perform Underperform 0.80 Not Rated 6 Suspended Rating 0.60 Current Recommendations 7 8 Buy Security Price Security 0.40 Hold Sell Not Rated 0.20 Suspended Rating *New Recommendation Structure 0.00 as of September 9,2002 Feb 11 May 11 Aug 11 Nov 11 Feb 12 May 12 Aug 12 Nov 12 Feb 13 May 13 Aug 13 Nov 13 Date 1. 01/03/2011: Buy, Target Price Change EUR1.45 5. 07/09/2012: Buy, Target Price Change EUR1.24 2. 13/07/2011: Buy, Target Price Change EUR1.30 6. 11/02/2013: Buy, Target Price Change EUR1.18 3. 13/11/2011: Buy, Target Price Change EUR1.25 7. 16/07/2013: Buy, Target Price Change EUR1.10 4. 18/01/2012: Buy, Target Price Change EUR1.20 8. 06/08/2013: Buy, Target Price Change EUR0.90 Historical recommendations and target price: Mediaset (MS.MI) (as of 2/6/2014) 6.00 Previous Recommendations Strong Buy 5.00 1 Buy Market Perform Underperform 4.00 16 2 1415 Not Rated Suspended Rating 3.00 3 4 13 Current Recommendations 12 Buy Security Price Security 5 2.00 6 Hold 7 8 11 9 10 Sell Not Rated 1.00 Suspended Rating *New Recommendation Structure 0.00 as of September 9,2002 Feb 11 May 11 Aug 11 Nov 11 Feb 12 May 12 Aug 12 Nov 12 Feb 13 May 13 Aug 13 Nov 13 Date 1. 05/05/2011: Buy, Target Price Change EUR5.30 9. 02/08/2012: Downgrade to Sell, EUR1.00 2. 16/06/2011: Buy, Target Price Change EUR4.20 10. 14/11/2012: Upgrade to Hold, Target Price Change EUR1.30 3. 15/09/2011: Buy, Target Price Change EUR3.60 11. 10/12/2012: Upgrade to Buy, Target Price Change EUR2.00 4. 14/02/2012: Downgrade to Hold, Target Price Change EUR2.90 12. 18/01/2013: Downgrade to Hold, Target Price Change EUR2.30 5. 27/04/2012: Hold, Target Price Change EUR2.10 13. 22/05/2013: Hold, Target Price Change EUR3.00 6. 09/05/2012: Hold, Target Price Change EUR1.50 14. 16/07/2013: Hold, Target Price Change EUR4.00 7. 10/07/2012: Hold, Target Price Change EUR1.30 15. 04/08/2013: Upgrade to Buy, Target Price Change EUR4.50 8. 01/08/2012: Hold, Target Price Change EUR1.00 16. 28/01/2014: Buy, Target Price Change EUR5.00 Page8 Deutsche Bank AG/London 7 February 2014 Italian Equities Daily Equity rating key Equity rating dispersion and banking relationships Buy: Based on a current 12- month view of total 400 share-holder return (TSR = percentage change in 350 55 % share price from current price to projected target price 300 plus pro-jected dividend yield ) , we recommend that 250 36 % 200 investors buy the stock. 38 % Sell: Based on a current 12-month view of total share- 150 51 % 100 9 % holder return, we recommend that investors sell the 50 33 % stock 0 Hold: We take a neutral view on the stock 12-months Buy Hold Sell out and, based on this time horizon, do not recommend either a Buy or Sell. Companies Covered Cos. w/ Banking Relationship Notes: European Universe 1. Newly issued research recommendations and target prices always supersede previously published research. 2. Ratings definitions prior to 27 January, 2007 were: Buy: Expected total return (including dividends) of 10% or more over a 12-month period Hold: Expected total return (including dividends) between -10% and 10% over a 12- month period Sell: Expected total return (including dividends) of -10% or worse over a 12-month period Deutsche Bank AG/London Page9 7 February 2014 Italian Equities Daily Regulatory Disclosures 1. Important Additional Conflict Disclosures Aside from within this report, important conflict disclosures can also be found at https://gm.db.com/equities under the “Disclosures Lookup” and “Legal” tabs. Investors are strongly encouraged to review this information before investing. 2. Short-Term Trade Ideas Deutsche Bank equity research analysts sometimes have shorter-term trade ideas (known as SOLAR ideas) that are consistent or inconsistent with Deutsche Bank’s existing longer term ratings. These trade ideas can be found at the SOLAR link at http://gm.db.com. 3. Country-Specific Disclosures Australia and New Zealand: This research, and any access to it, is intended only for “wholesale clients” within the meaning of the Australian Corporations Act and New Zealand Financial Advisors Act respectively. Brazil: The views expressed above accurately reflect personal views of the authors about the subject company(ies) and its(their) securities, including in relation to Deutsche Bank. The compensation of the equity research analyst(s) is indirectly affected by revenues deriving from the business and financial transactions of Deutsche Bank. In cases where at least one Brazil based analyst (identified by a phone number starting with +55 country code) has taken part in the preparation of this research report, the Brazil based analyst whose name appears first assumes primary responsibility for its content from a Brazilian regulatory perspective and for its compliance with CVM Instruction # 483. EU countries: Disclosures relating to our obligations under MiFiD can be found at http://www.globalmarkets.db.com/riskdisclosures. Japan: Disclosures under the Financial Instruments and Exchange Law: Company name - Deutsche Securities Inc. Registration number - Registered as a financial instruments dealer by the Head of the Kanto Local Finance Bureau (Kinsho) No. 117. Member of associations: JSDA, Type II Financial Instruments Firms Association, The Financial Futures Association of Japan, Japan Investment Advisers Association. Commissions and risks involved in stock transactions - for stock transactions, we charge stock commissions and consumption tax by multiplying the transaction amount by the commission rate agreed with each customer. Stock transactions can lead to losses as a result of share price fluctuations and other factors. Transactions in foreign stocks can lead to additional losses stemming from foreign exchange fluctuations. “Moody’s”, “Standard & Poor’s”, and “Fitch” mentioned in this report are not registered credit rating agencies in Japan unless “Japan” or “Nippon” is specifically designated in the name of the entity. Reports on Japanese listed companies not written by analysts of Deutsche Securities Inc. (DSI) are written by Deutsche Bank Group’s analysts with the coverage companies specified by DSI. Russia: This information, interpretation and opinions submitted herein are not in the context of, and do not constitute, any appraisal or evaluation activity requiring a license in the Russian Federation. Page10 Deutsche Bank AG/London David Folkerts-Landau Group Chief Economist Member of the Group Executive Committee Guy Ashton Marcel Cassard Richard Smith and Steve Pollard Global Chief Operating Officer Global Head Co-Global Heads Research FICC Research & Global Macro Economics Equity Research Michael Spencer Ralf Hoffmann Andreas Neubauer Steve Pollard Regional Head Regional Head Regional Head Regional Head Asia Pacific Research Deutsche Bank Research, Germany Equity Research, Germany Americas Research International locations Deutsche Bank AG Deutsche Bank AG Deutsche Bank AG Deutsche Securities Inc. Deutsche Bank Place Große Gallusstraße 10-14 Filiale Hongkong 2-11-1 Nagatacho Level 16 60272 Frankfurt am Main International Commerce Centre, Sanno Park Tower Corner of Hunter & Phillip Streets Germany 1 Austin Road West,Kowloon, Chiyoda-ku, Tokyo 100-6171 Sydney, NSW 2000 Tel: (49) 69 910 00 Hong Kong Japan Australia Tel: (852) 2203 8888 Tel: (81) 3 5156 6770 Tel: (61) 2 8258 1234 Deutsche Bank AG London Deutsche Bank Securities Inc. 1 Great Winchester Street 60 Wall Street London EC2N 2EQ New York, NY 10005 United Kingdom United States of America Tel: (44) 20 7545 8000 Tel: (1) 212 250 2500 Global Disclaimer The information and opinions in this report were prepared by Deutsche Bank AG or one of its affiliates (collectively “Deutsche Bank”). The information herein is believed to be reliable and has been obtained from public sources believed to be reliable. Deutsche Bank makes no representation as to the accuracy or completeness of such information. Deutsche Bank may engage in securities transactions, on a proprietary basis or otherwise, in a manner inconsistent with the view taken in this research report. In addition, others within Deutsche Bank, including strategists and sales staff, may take a view that is inconsistent with that taken in this research report. Opinions, estimates and projections in this report constitute the current judgement of the author as of the date of this report. They do not necessarily reflect the opinions of Deutsche Bank and are subject to change without notice. Deutsche Bank has no obligation to update, modify or amend this report or to otherwise notify a recipient thereof in the event that any opinion, forecast or estimate set forth herein, changes or subsequently becomes inaccurate. Prices and availability of financial instruments are subject to change without notice. This report is provided for informational purposes only. It is not an offer or a solicitation of an offer to buy or sell any financial instruments or to participate in any particular trading strategy. Target prices are inherently imprecise and a product of the analyst judgement. As a result of Deutsche Bank’s March 2010 acquisition of BHF-Bank AG, a security may be covered by more than one analyst within the Deutsche Bank group. Each of these analysts may use differing methodologies to value the security; as a result, the recommendations may differ and the price targets and estimates of each may vary widely. In August 2009, Deutsche Bank instituted a new policy whereby analysts may choose not to set or maintain a target price of certain issuers under coverage with a Hold rating. In particular, this will typically occur for “Hold” rated stocks having a market cap smaller than most other companies in its sector or region. We believe that such policy will allow us to make best use of our resources. Please visit our website at http://gm.db.com to determine the target price of any stock. The financial instruments discussed in this report may not be suitable for all investors and investors must make their own informed investment decisions. Stock transactions can lead to losses as a result of price fluctuations and other factors. If a financial instrument is denominated in a currency other than an investor’s currency, a change in exchange rates may adversely affect the investment. Past performance is not necessarily indicative of future results. Deutsche Bank may with respect to securities covered by this report, sell to or buy from customers on a principal basis, and consider this report in deciding to trade on a proprietary basis. Unless governing law provides otherwise, all transactions should be executed through the Deutsche Bank entity in the investor’s home jurisdiction. In the U.S. this report is approved and/or distributed by Deutsche Bank Securities Inc., a member of the NYSE, the NASD, NFA and SIPC. In Germany this report is approved and/or communicated by Deutsche Bank AG Frankfurt authorized by the BaFin. In the United Kingdom this report is approved and/or communicated by Deutsche Bank AG London, a member of the London Stock Exchange and regulated by the Financial Conduct Authority for the conduct of investment business in the UK and authorized by the BaFin. This report is distributed in Hong Kong by Deutsche Bank AG, Hong Kong Branch, in Korea by Deutsche Securities Korea Co. This report is distributed in Singapore by Deutsche Bank AG, Singapore Branch or Deutsche Securities Asia Limited, Singapore Branch (One Raffles Quay #18-00 South Tower Singapore 048583, +65 6423 8001), and recipients in Singapore of this report are to contact Deutsche Bank AG, Singapore Branch or Deutsche Securities Asia Limited, Singapore Branch in respect of any matters arising from, or in connection with, this report. Where this report is issued or promulgated in Singapore to a person who is not an accredited investor, expert investor or institutional investor (as defined in the applicable Singapore laws and regulations), Deutsche Bank AG, Singapore Branch or Deutsche Securities Asia Limited, Singapore Branch accepts legal responsibility to such person for the contents of this report. In Japan this report is approved and/or distributed by Deutsche Securities Inc. The information contained in this report does not constitute the provision of investment advice. In Australia, retail clients should obtain a copy of a Product Disclosure Statement (PDS) relating to any financial product referred to in this report and consider the PDS before making any decision about whether to acquire the product. Deutsche Bank AG Johannesburg is incorporated in the Federal Republic of Germany (Branch Register Number in South Africa: 1998/003298/10). Additional information relative to securities, other financial products or issuers discussed in this report is available upon request. This report may not be reproduced, distributed or published by any person for any purpose without Deutsche Bank’s prior written consent. Please cite source when quoting. Copyright © 2014 Deutsche Bank AG