Asseco Poland

Asseco Poland SHARE PRICE PERFORMANCE COMPANY DESCRIPTION Bloomberg ticker ACP PW Asseco Poland is the largest IT software house in CEE and the sixth-largest 65 Closing price, PLN 57.6 70 Asseco Poland WIG Index vendor in Europe. It has developed software solutions for more than 100k 60 52 Week range, PLN 50.0-62.0 60 companies and institutions, within all the key sectors of the economy, for more than 50 52 Week performance -1.0% 20 years. It has operations in 43 countries, employing over 18k people. After 40 55 acquisitions in the Israeli market, this country accounts for 52% of total revenues, 52 Week relative performance 10.0% 30 with another 23% coming from Poland. It also operates in all of the South-Eastern Shares outstanding, mln 83.0 20 50 European countries, Turkey, Spain and Portugal. Its most important client groups Market cap, EUR m 1,128 10 are banking and finance, and public institutions. Free float 90% 0 45 Asseco Poland WIG Index Mar-15Mar-15 Jun-15Jun-15 Sep-15Sep-15 Dec-15Dec-15 Average daily turnover, EUR m 1.97 RATIOS

PER SHARE RATIOS, PLN 2012 2013 2014 2015 2016E 2017E DUPONT ANALYSIS 2012 2013 2014 2015 2016E 2017E EPS 4.76 3.69 4.32 4.40 4.43 4.65 Net margin 6.7% 5.3% 5.8% 5.0% 4.9% 4.9% BVPS 62.1 63.2 63.6 64.6 70.0 72.2 Asset turnover 0.57x 0.58x 0.58x 0.60x n.a. n.a. DPS (year of payout) 2.19 2.41 2.60 2.90 3.01 2.95 ROA 3.9% 3.1% 3.5% 3.2% 3.4% 3.4% Leverage 1.91x 1.88x 1.96x 2.14x 1.87x 1.98x PROFITABILITY 2012 2013 2014 2015 2016E 2017E ROE 7.4% 5.9% 6.8% 6.9% 6.3% 6.6% Gross profit margin 26.7% 24.7% 24.4% 24.1% 22.9% 23.0% EBITDA margin 15.9% 15.0% 14.6% 13.9% 14.0% 13.7% EBIT margin 11.6% 10.3% 10.3% 10.3% 10.2% 10.2% VALUATION RATIOS 2012 2013 2014 2015 2016E 2017E Net margin 6.7% 5.3% 5.8% 5.0% 4.9% 4.9% EV/EBITDA 6.3x 6.5x 7.1x 7.2x 7.1x 6.8x P/E 9.5x 12.6x 12.1x 12.9x 13.0x 12.4x FINANCIAL RATIOS 2012 2013 2014 2015 2016E 2017E EV, PLN m 5,582 5,642 6,456 7,225 7,415 7,359 Net debt/EBITDA -0.28x -0.40x -0.52x -0.47x -0.35x -0.39x Net debt, PLN m -249 -350 -468 -471 -361 -417 Net debt/equity -0.03x -0.05x -0.06x -0.06x n.a. n.a. FCF, PLN m 457 519 466 636 501 515 Asset turnover 0.57x 0.58x 0.58x 0.60x n.a. n.a. FCF yield 9.5% 10.8% 9.7% 13.3% 10.4% 10.7% Capex/deprecation 0.83x 0.82x 0.78x 0.73x 0.94x 0.96x Dividend yield 4.5% 5.3% 5.7% 5.7% 5.3% 5.1% Op. cash flow/capex 3.11x 3.41x 3.28x 4.32x n.a. n.a. COMPANY FINANCIALS INCOME STATEMENT, PLN m 2012 2013 2014 2015 2016E 2017E BALANCE SHEET, PLN m 2012 2013 2014 2015 2016E 2017E Revenues 5,529 5,780 6,232 7,256 7,457 7,844 PPE 686 707 724 776 n.a. n.a. Cost of sales -4,052 -4,353 -4,712 -5,507 -5,749 -6,040 LT investment 74 95 193 274 n.a. n.a. Gross profit 1,477 1,427 1,520 1,750 1,708 1,804 Others 6035 6187 6326 6745 n.a. n.a. Total non-current assets 6,795 6,989 7,242 7,795 n.a. n.a. Other operating income 0 15 27 30 n.a. n.a. SG&A and other -836 -845 -907 -1035 n.a. n.a. Inventories 77 96 60 72 n.a. n.a. Trade accounts recievable 1,182 1,279 1,767 2,099 n.a. n.a. EBITDA 880 867 908 1,007 1,043 1,077 Cash and cash equivalents 960 969 1,224 1,600 n.a. n.a. EBIT 641 597 639 745 762 800 Other 628 636 390 487 n.a. n.a. Total current assets 2,848 2,979 3,441 4,257 n.a. n.a. PBT 668 559 650 742 733 776 Income tax -110 -112 -131 -166 n.a. n.a. Total assets 9,643 9,969 10,684 12,052 n.a. n.a.

Net profit 371 306 358 366 364 383 Total shareholders equity 7,224 7,425 7,973 8,343 n.a. n.a. Minority interest 2,067 2,177 2,691 2,981 n.a. n.a.

CASH FLOW STATEMENT, PLN m 2012 2013 2014 2015 2016E 2017E LT Debt 549 495 625 836 n.a. n.a. CF from operations 674 735 670 828 n.a. n.a. Other LT liabilities 348 383 366 488 n.a. n.a. o/w depreciation 239 271 268 263 275 276 Total non-current liabilities 897 878 991 1,325 n.a. n.a. o/w change in WC -52 12 -409 -150 n.a. n.a. ST Debt 215 186 233 422 n.a. n.a. CF from investments -275 -407 -398 -405 n.a. n.a. ST payables 356 432 582 830 n.a. n.a. o/w capex -217 -216 -204 -192 -257 -265 Other LT liabilities 951 1,048 904 1,133 n.a. n.a. Total current liabilities 1,522 1,666 1,719 2,385 n.a. n.a. CF from fin. activities -358 -297 -15 -155 n.a. n.a. o/w dividends -290 -200 -216 -241 -235 -245 Total equity and liabilities 9,643 9,969 10,684 12,052 n.a. n.a.

1YF CONSENSUS P/E 1YF CONSENSUS EV/EBITDA

16.0 9.0

15.0 8.5

14.0 8.0 7.5 13.0 7.0 12.0 6.5 11.0 6.0 10.0 5.5 9.0 5.0

8.0 4.5

7.0 4.0 2011 2012 2013 2014 2015 2016 2011 2012 2013 2014 2015 2016

Source: all Bloomberg Integer SHARE PRICE PERFORMANCE COMPANY DESCRIPTION Bloomberg ticker ITG PW Integer.pl SA (based in Kraków, Poland) is a provider of postal, courier and 200 Integer WIG Index Closing price, PLN 84.0 200 financial services, and a global operator of automated parcel lockers. The 180180 160 company was founded in 1999 and listed on the WSE in 2007. Integer 52 Week range, PLN 60.0-175.0 160 140 operates via >20 subsidiaries in 21 countries. Its main strategic target for the 52 Week performance -51.6% 120140 100 52 Week relative performance -40.6% 120 next few years is to implement InPost parcel lockers services across Europe. 80 Shares outstanding, mln 7.8 60100 By the end of 2016E, the company wants to have 16,000 parcel devices on its 40 home continent, and it wants to expand in the Americas and Asia within four-to- Market cap, EUR m 153 80 20 five years. Free float 64% 0 60 Integer WIG Index Mar-15Mar-15 Jun-15Jun-15 Sep-15Sep-15 Dec-15Dec-15 Average daily turnover, EUR m 0.07 RATIOS

PER SHARE RATIOS, PLN 2012 2013 2014 2015 2016E 2017E DUPONT ANALYSIS 2012 2013 2014 2015 2016E 2017E EPS 8.91 3.58 -1.28 -0.61 -2.08 1.85 Net margin 18.8% 6.8% -1.6% -0.7% -2.6% 2.0% BVPS 33.6 51.3 78.5 84.8 110.0 111.8 Asset turnover 0.51x 0.41x 0.50x 0.51x n.a. n.a. DPS (year of payout) n.a. n.a. n.a. n.a. n.a. n.a. ROA 12.6% 3.3% -0.9% -0.4% n.a. n.a. Leverage 2.84x 2.57x 2.15x 2.09x n.a. n.a. PROFITABILITY 2012 2013 2014 2015 2016E 2017E ROE 35.9% 8.6% -2.0% -0.7% n.a. n.a. Gross profit margin 84.3% 94.3% 97.6% 94.9% n.a. n.a. EBITDA margin 4.8% 14.3% 6.4% 3.2% 4.1% 13.8% EBIT margin -1.8% 7.1% -0.2% -6.4% -7.1% 3.6% VALUATION RATIOS 2012 2013 2014 2015 2016E 2017E Net margin 18.8% 6.8% -1.6% -0.7% -2.6% 2.0% EV/EBITDA 86.2x 49.2x 39.0x 42.8x 41.0x 11.0x P/E 20.7x 89.9x 31.6x n.a. n.a. 45.3x FINANCIAL RATIOS 2012 2013 2014 2015 2016E 2017E EV, PLN m 1,173 2,450 1,507 1,006 1,074 1,081 Net debt/EBITDA 0.00x 2.27x 3.38x 2.47x 4.58x 1.29x Net debt, PLN m 0 113 131 58 120 127 Net debt/equity 0.00x 0.23x 0.17x 0.06x n.a. n.a. FCF, PLN m -66 -230 -396 -123 n.a. n.a. Asset turnover 0.51x 0.41x 0.50x 0.51x n.a. n.a. FCF yield -10.1% -35.3% -60.8% -19.0% n.a. n.a. Capex/deprecation 1.00x 3.25x 3.36x 2.46x n.a. n.a. Dividend yield n.a. n.a. n.a. n.a. n.a. n.a. Op. cash flow/capex 0.05x -0.01x -0.69x 0.28x n.a. n.a. COMPANY FINANCIALS INCOME STATEMENT, PLN m 2012 2013 2014 2015 2016E 2017E BALANCE SHEET, PLN m 2012 2013 2014 2015 2016E 2017E Revenues 282 347 604 727 634 712 PPE 147 340 454 525 n.a. n.a. Cost of sales -44 -20 -14 -37 n.a. n.a. LT investment n.a. n.a. 57 70 n.a. n.a. Gross profit 238 328 590 690 n.a. n.a. Others n.a. n.a. 195 267 n.a. n.a. Total non-current assets 253 486 706 862 n.a. n.a. Other operating income 8 9 7 12 n.a. n.a. SG&A and other -251 -312 -598 -747 n.a. n.a. Inventories 21 13 22 20 n.a. n.a. Trade accounts recievable 98 182 n.a. 300 n.a. n.a. EBITDA 14 50 39 23 26 98 Cash and cash equivalents 100 84 81 165 n.a. n.a. EBIT -5 25 -1 -46 -45 26 Other 85 91 n.a. 91 n.a. n.a. Total current assets 304 370 503 576 n.a. n.a. PBT 49 16 -19 -72 -55 14 Income tax -2 -8 -13 30 n.a. n.a. Total assets 557 855 1,209 1,438 n.a. n.a.

Net profit 53 24 -9 -5 -16 14 Total shareholders equity 277 488 790 961 n.a. n.a. Minority interest 78 138 180 303 n.a. n.a.

CASH FLOW STATEMENT, PLN m 2012 2013 2014 2015 2016E 2017E LT Debt 56 34 53 164 n.a. n.a. CF from operations 4 -3 -161 48 n.a. n.a. Other LT liabilities 34 26 22 28 n.a. n.a. o/w depreciation 19 25 40 70 n.a. n.a. Total non-current liabilities 90 60 75 192 n.a. n.a. o/w change in WC -94 52 -96 -132 n.a. n.a. ST Debt 44 164 163 64 n.a. n.a. CF from investments -17 -240 -208 -186 n.a. n.a. ST payables 76 85 123 151 n.a. n.a. o/w capex -70 -226 -234 -172 n.a. n.a. Other LT liabilities 70 58 57 70 n.a. n.a. Total current liabilities 190 307 344 285 n.a. n.a. CF from fin. activities 105 228 366 221 n.a. n.a. o/w dividends 0 0 0 0 n.a. n.a. Total equity and liabilities 557 855 1,209 1,438 n.a. n.a.

1YF CONSENSUS P/E 1YF CONSENSUS EV/EBITDA

2000.0 49.0

44.0 1500.0 39.0

34.0 1000.0 29.0

24.0 500.0 19.0

0.0 14.0

9.0

-500.0 4.0 2012 2013 2014 2015 2016 2012 2013 2014 2015 2016

Source: all Bloomberg Wirtualna Polska Holding SHARE PRICE PERFORMANCE COMPANY DESCRIPTION Bloomberg ticker WPL PW Wirtualna Polska Group (WP Group) owns one of the two most popular 43 Wirtualna Polska Holding Closing price, PLN 41.5 45 WIG Index horizontal internet portals in Poland, Wirtualna Polska. It also runs the 40 41 52 Week range, PLN 31.4-42.0 35 39 horizontal O2 portal and numerous specialist vertical portals. The company 37 52 Week performance 17.8% 30 was created through the merger of WP (founded in 1995) and O2 (founded in 25 35 52 Week relative performance 29.3% 20 33 1999), and floated on the WSE in 2015. According to a study by Megapanel Shares outstanding, mln 15.9 15 31 PBI/Gemius, the group has 7.9m real email users (#1 in Poland), allowing it a 10 29 broad ad market reach. WP’s key goal is to provide basic internet services to a Market cap, EUR m 278 5 27 large number of users, focusing on those used with high frequency and/or Free float 60% 0 25 Wirtualna Polska Holding Jun-15Jun-15 Sep-15Sep-15 Dec-15Dec-15 Mar-16Mar-16 regularity. Average daily turnover, EUR m 0.05 RATIOS

PER SHARE RATIOS, PLN 2012 2013 2014 2015 2016E 2017E DUPONT ANALYSIS 2012 2013 2014 2015 2016E 2017E EPS n.a. n.a. n.a. 0.16 2.32 2.54 Net margin 18.0% 4.2% 1.9% 1.3% 17.5% 18.8% BVPS n.a. n.a. n.a. 12.1 14.8 15.9 Asset turnover 0.54x 0.45x 0.35x 0.43x n.a. n.a. DPS (year of payout) n.a. n.a. n.a. n.a. n.a. 2.19 ROA n.a. 2.0% 1.2% 0.7% n.a. n.a. Leverage n.a. 1.16x 2.15x 2.29x n.a. n.a. PROFITABILITY 2012 2013 2014 2015 2016E 2017E ROE n.a. 2.3% 2.5% 1.5% 16.7% 16.2% Gross profit margin n.a. n.a. n.a. n.a. n.a. n.a. EBITDA margin 31.2% 13.8% 25.3% 30.3% 31.9% 32.5% EBIT margin 23.4% 5.4% 15.0% 20.9% 23.3% 24.0% VALUATION RATIOS 2012 2013 2014 2015 2016E 2017E Net margin 18.0% 4.2% 1.9% 1.3% 17.5% 18.8% EV/EBITDA n.a. n.a. n.a. 13.4x 10.4x 8.7x P/E n.a. n.a. n.a. 249.4x 18.0x 16.5x FINANCIAL RATIOS 2012 2013 2014 2015 2016E 2017E EV, PLN m n.a. n.a. n.a. 1,325 1,272 1,189 Net debt/EBITDA -0.08x -0.62x 3.73x 1.85x 0.62x -0.05x Net debt, PLN m -1 -3 189 182 75 -7 Net debt/equity -0.01x -0.04x 0.77x 0.51x n.a. n.a. FCF, PLN m 5 9 17 42 57 80 Asset turnover 0.54x 0.45x 0.35x 0.43x n.a. n.a. FCF yield 0.5% 0.7% 1.4% 3.6% 4.8% 6.8% Capex/deprecation 0.13x 0.11x 0.51x 1.05x 1.20x 0.89x Dividend yield n.a. n.a. n.a. n.a. n.a. 5.2% Op. cash flow/capex 2.39x 3.61x 2.10x 2.31x n.a. n.a. COMPANY FINANCIALS INCOME STATEMENT, PLN m 2012 2013 2014 2015 2016E 2017E BALANCE SHEET, PLN m 2012 2013 2014 2015 2016E 2017E Revenues 40 38 201 326 383 422 PPE 4 4 49 52 n.a. n.a. Cost of sales n.a. n.a. n.a. n.a. n.a. n.a. LT investment 0 n.a. n.a. n.a. n.a. n.a. Gross profit n.a. n.a. n.a. n.a. n.a. n.a. Others 60 n.a. n.a. n.a. n.a. n.a. Total non-current assets 64 66 485 638 n.a. n.a. Other operating income 1 0 1 1 n.a. n.a. SG&A and other -32 -36 -171 -258 n.a. n.a. Inventories n.a. n.a. n.a. n.a. n.a. n.a. Trade accounts recievable 7 5 39 54 n.a. n.a. EBITDA 13 5 51 99 122 137 Cash and cash equivalents 1 4 31 49 n.a. n.a. EBIT 9 2 30 68 89 101 Other n.a. n.a. n.a. n.a. n.a. n.a. Total current assets 11 19 85 112 n.a. n.a. PBT 10 2 7 15 79 88 Income tax -2 0 -3 -10 n.a. n.a. Total assets 75 85 570 750 n.a. n.a.

Net profit 7 2 4 4 67 79 Total shareholders equity 68 73 246 358 n.a. n.a. Minority interest 0 3 12 16 n.a. n.a.

CASH FLOW STATEMENT, PLN m 2012 2013 2014 2015 2016E 2017E LT Debt 0 0 201 193 n.a. n.a. CF from operations 9 12 32 74 n.a. n.a. Other LT liabilities 0 1 47 101 n.a. n.a. o/w depreciation 3 3 21 30 35 36 Total non-current liabilities 0 1 247 293 n.a. n.a. o/w change in WC n.a. -4 0 -5 n.a. n.a. ST Debt 0 0 20 38 n.a. n.a. CF from investments -11 -9 -408 -161 n.a. n.a. ST payables 4 8 28 30 n.a. n.a. o/w capex -4 -3 -15 -32 -42 -32 Other LT liabilities 3 2 29 30 n.a. n.a. Total current liabilities 7 11 77 99 n.a. n.a. CF from fin. activities -5 0 403 105 n.a. n.a. o/w dividends -5 0 -14 0 n.a. -35 Total equity and liabilities 75 85 570 750 n.a. n.a.

1YF CONSENSUS P/E 1YF CONSENSUS EV/EBITDA

45.0 15.0

40.0 13.5 35.0

12.0 30.0

25.0 10.5

20.0 9.0 15.0

10.0 7.5 Oct-15 Nov-15 Dec-15 Jan-16 Feb-16 Mar-16 Oct-15 Nov-15 Dec-15 Jan-16 Feb-16 Mar-16

Source: all Bloomberg Livechat Software SHARE PRICE PERFORMANCE COMPANY DESCRIPTION Bloomberg ticker LVC PW LiveChat is premium customer services software used by businesses to 45 42 Livechat Software Closing price, PLN 36.9 WIG Index communicate with customers browsing their websites and online stores. The 40 40 52 Week range, PLN 26.1-41.0 35 38 LiveChat product can be accessed directly from the browser or using the 52 Week performance 7.0% 30 36 dedicated application designed both for desktop (Windows, Mac OS X) and 25 34 52 Week relative performance 17.9% 20 mobile platforms (iOS, Android). The company was founded in 2002 in 32 Shares outstanding, mln 25.8 15 Wroclaw and entered the WSE in 2014. Currently, it serves 14k clients, with 10 30 80% of sales coming from the US. LiveChat operates in the quickly growing Market cap, EUR m 226 5 28 software as a service (SAAS) market, which management estimates to grow at Free float 65% 0 26 Livechat Software WIG Index Mar-15Mar-15 Jun-15Jun-15 Sep-15Sep-15 Dec-15Dec-15 nearly a 20% CAGR by 2020E. Average daily turnover, EUR m 0.12 RATIOS

PER SHARE RATIOS, PLN 2012 2013 2014 2015 2016E 2017E DUPONT ANALYSIS 2012 2013 2014 2015 2016E 2017E EPS n.a. n.a. 0.38 0.72 1.12 1.56 Net margin 43.7% 50.6% 51.2% 56.2% 55.4% 54.6% BVPS n.a. n.a. 0.4 0.8 1.2 1.6 Asset turnover 1.56x 1.35x 1.47x 1.55x n.a. n.a. DPS (year of payout) n.a. 0.00 0.37 0.37 0.71 0.71 ROA n.a. 96.2% 91.6% 108.5% n.a. n.a. Leverage n.a. 1.20x 1.19x 1.12x n.a. n.a. PROFITABILITY 2012 2013 2014 2015 2016E 2017E ROE n.a. 115.1% 109.5% 121.9% 93.0% 94.7% Gross profit margin 88.8% 84.5% 79.1% 84.6% n.a. n.a. EBITDA margin 61.2% 68.9% 66.6% 72.9% 71.1% 70.5% EBIT margin 59.1% 67.0% 63.7% 70.4% 68.9% 67.9% VALUATION RATIOS 2012 2013 2014 2015 2016E 2017E Net margin 43.7% 50.6% 51.2% 56.2% 55.4% 54.6% EV/EBITDA n.a. n.a. n.a. 34.3x 25.0x 18.1x P/E n.a. n.a. n.a. 45.3x 33.3x 23.9x FINANCIAL RATIOS 2012 2013 2014 2015 2016E 2017E EV, PLN m n.a. n.a. n.a. 825 936 927 Net debt/EBITDA -0.50x -0.18x -0.66x -0.63x -0.64x -0.65x Net debt, PLN m -2 -1 -8 -15 -24 -34 Net debt/equity -0.59x -0.19x -0.78x -0.77x n.a. n.a. FCF, PLN m 2 5 11 18 29 39 Asset turnover 1.56x 1.35x 1.47x 1.55x n.a. n.a. FCF yield 0.2% 0.5% 1.2% 1.9% 3.1% 4.0% Capex/deprecation 0.36x 1.71x 0.00x 0.00x 1.67x 1.33x Dividend yield n.a. n.a. n.a. n.a. 2.2% 1.9% Op. cash flow/capex 7.80x 4.32x n.a. n.a. n.a. n.a. COMPANY FINANCIALS INCOME STATEMENT, PLN m 2012 2013 2014 2015 2016E 2017E BALANCE SHEET, PLN m 2012 2013 2014 2015 2016E 2017E Revenues 5 11 19 33 53 73 PPE 0 0 0 0 n.a. n.a. Cost of sales -1 -2 -4 -5 n.a. n.a. LT investment n.a. n.a. n.a. n.a. n.a. n.a. Gross profit 5 9 15 28 n.a. n.a. Others n.a. n.a. n.a. n.a. n.a. n.a. Total non-current assets 0 1 3 4 n.a. n.a. Other operating income 0 n.a. 0 0 n.a. n.a. SG&A and other -2 -2 -3 -5 n.a. n.a. Inventories 0 0 0 0 n.a. n.a. Trade accounts recievable 0 0 0 0 n.a. n.a. EBITDA 3 8 13 24 37 51 Cash and cash equivalents 2 1 8 15 n.a. n.a. EBIT 3 7 12 23 36 49 Other 1 5 1 2 n.a. n.a. Total current assets 3 7 10 17 n.a. n.a. PBT 3 7 12 23 37 49 Income tax -1 -1 -2 -5 n.a. n.a. Total assets 4 8 13 21 n.a. n.a.

Net profit 2 6 10 19 29 40 Total shareholders equity 3 7 11 20 n.a. n.a. Minority interest 0 0 0 0 n.a. n.a.

CASH FLOW STATEMENT, PLN m 2012 2013 2014 2015 2016E 2017E LT Debt 0 0 0 0 n.a. n.a. CF from operations 2 6 11 18 n.a. n.a. Other LT liabilities 0 0 0 0 n.a. n.a. o/w depreciation 0 0 1 1 1 2 Total non-current liabilities 0 0 0 0 n.a. n.a. o/w change in WC n.a. -4 -2 -8 n.a. n.a. ST Debt 0 0 0 0 n.a. n.a. CF from investments 0 -5 2 -2 n.a. n.a. ST payables 0 0 1 0 n.a. n.a. o/w capex 0 -1 0 0 -2 -2 Other LT liabilities 1 1 1 1 n.a. n.a. Total current liabilities 1 1 2 2 n.a. n.a. CF from fin. activities 0 -1 -6 -10 n.a. n.a. o/w dividends n.a. -1 -6 -10 -18 -18 Total equity and liabilities 4 8 13 21 n.a. n.a.

1YF CONSENSUS P/E 1YF CONSENSUS EV/EBITDA

55.0 40.0

50.0 35.0 45.0

30.0 40.0

35.0 25.0

30.0 20.0 25.0

20.0 15.0 Jul-14 Oct-14 Jan-15 Apr-15 Jul-15 Oct-15 Jan-16 Jul-14 Oct-14 Jan-15 Apr-15 Jul-15 Oct-15 Jan-16

Source: all Bloomberg Selvita SHARE PRICE PERFORMANCE COMPANY DESCRIPTION Bloomberg ticker SLV PW Selvita is a drug discovery company engaged in research and development in 27 Closing price, PLN 21.9 30 Selvita WIG Index the area of oncology, as well as the provision of integrated drug discovery 25 52 Week range, PLN 14.6-25.7 25 services. It was established in 2007, and entered the WSE in 2014. Currently, 23 52 Week performance 16.6% 20 it employs 300 people, including 90 PhDs. Selvita’s laboratories are located in 21 52 Week relative performance 27.5% 15 Krakow, Poland, and possess both GLP and GMP certification. Besides Shares outstanding, mln 9.1 10 19 Krakow, the company's offices are also located in the Greater Boston Area, and Cambridge, UK. Selvita also develops its own drugs, which originate from Market cap, EUR m 68 5 17 research at Polish universities, and commercialises them with partners from Free float 51% 0 15 Selvita WIG Index Mar-15Mar-15 Jun-15Jun-15 Sep-15Sep-15 Dec-15Dec-15 the pharmaceutical industry. Currently, Selvita focuses on oncology. Selvita expects to move its first candidates to the clinics in 2016E. Average daily turnover, EUR m 0.04 RATIOS

PER SHARE RATIOS, PLN 2012 2013 2014 2015 2016E 2017E DUPONT ANALYSIS 2012 2013 2014 2015 2016E 2017E EPS -0.61 -0.23 0.56 0.48 0.45 0.63 Net margin -68.2% -18.7% 20.3% 15.3% 9.2% 11.4% BVPS 0.5 0.3 0.9 n.a. n.a. n.a. Asset turnover 0.61x 0.71x 1.08x n.a. n.a. n.a. DPS (year of payout) 0.00 0.00 0.00 0.00 n.a. n.a. ROA -39.1% -14.6% 26.0% 16.7% 14.1% 11.9% Leverage 1.88x 3.76x 3.56x 1.77x 1.50x 1.45x PROFITABILITY 2012 2013 2014 2015 2016E 2017E ROE -73.5% -54.7% 92.4% 29.6% 21.1% 17.2% Gross profit margin 96.0% 98.0% 98.8% n.a. n.a. n.a. EBITDA margin -48.3% -1.1% 26.4% 19.7% 19.0% 17.7% EBIT margin -65.9% -17.1% 18.3% 13.7% 16.9% 14.3% VALUATION RATIOS 2012 2013 2014 2015 2016E 2017E Net margin -68.2% -18.7% 20.3% 15.3% 9.2% 11.4% EV/EBITDA n.a. n.a. 20.2x 23.1x 20.3x 18.7x P/E n.a. n.a. 27.0x 43.7x 48.8x 34.9x FINANCIAL RATIOS 2012 2013 2014 2015 2016E 2017E EV, PLN m n.a. 82 154 252 246 239 Net debt/EBITDA n.a. n.a. -0.56x -3.35x -3.43x -3.85x Net debt, PLN m n.a. -5 -4 -37 -42 -49 Net debt/equity n.a. -1.47x -0.46x n.a. n.a. n.a. FCF, PLN m -10 -9 -8 1 6 7 Asset turnover 0.61x 0.71x 1.08x n.a. n.a. n.a. FCF yield -3.6% -3.0% -2.9% 0.5% 2.0% 2.6% Capex/deprecation 0.73x 0.62x 1.50x n.a. n.a. n.a. Dividend yield 0.0% 0.0% 0.0% 0.0% n.a. n.a. Op. cash flow/capex -5.02x -4.92x -1.40x n.a. n.a. n.a. COMPANY FINANCIALS INCOME STATEMENT, PLN m 2012 2013 2014 2015 2016E 2017E BALANCE SHEET, PLN m 2012 2013 2014 2015 2016E 2017E Revenues 9 13 29 41 64 72 PPE 5 5 7 n.a. n.a. n.a. Cost of sales 0 0 0 n.a. n.a. n.a. LT investment n.a. n.a. n.a. n.a. n.a. n.a. Gross profit 9 13 29 n.a. n.a. n.a. Others n.a. n.a. n.a. n.a. n.a. n.a. Total non-current assets 7 7 9 n.a. n.a. n.a. Other operating income 7 9 13 n.a. n.a. n.a. SG&A and other -22 -24 -36 n.a. n.a. n.a. Inventories 0 0 1 n.a. n.a. n.a. Trade accounts recievable 1 4 7 n.a. n.a. n.a. EBITDA -5 0 8 11 12 13 Cash and cash equivalents 5 5 5 n.a. n.a. n.a. EBIT -6 -2 5 8 11 10 Other 1 1 5 n.a. n.a. n.a. Total current assets 8 11 17 n.a. n.a. n.a. PBT -6 -2 5 7 6 8 Income tax n.a. 0 0 n.a. n.a. n.a. Total assets 15 18 27 n.a. n.a. n.a.

Net profit -6 -2 6 6 6 8 Total shareholders equity 6 3 9 n.a. n.a. n.a. Minority interest 0 0 0 n.a. n.a. n.a.

CASH FLOW STATEMENT, PLN m 2012 2013 2014 2015 2016E 2017E LT Debt n.a. 0 0 n.a. n.a. n.a. CF from operations -9 -7 -5 n.a. n.a. n.a. Other LT liabilities n.a. 3 2 n.a. n.a. n.a. o/w depreciation 2 2 2 n.a. n.a. n.a. Total non-current liabilities 2 3 2 n.a. n.a. n.a. o/w change in WC 5 1 -2 n.a. n.a. n.a. ST Debt n.a. 0 0 n.a. n.a. n.a. CF from investments -2 -2 -4 n.a. n.a. n.a. ST payables 2 3 5 n.a. n.a. n.a. o/w capex -2 -1 -4 -4 -4 -4 Other LT liabilities n.a. 8 9 n.a. n.a. n.a. Total current liabilities 7 11 15 n.a. n.a. n.a. CF from fin. activities 9 10 8 n.a. n.a. n.a. o/w dividends 0 0 0 n.a. n.a. n.a. Total equity and liabilities 15 18 27 n.a. n.a. n.a.

1YF CONSENSUS P/E 1YF CONSENSUS EV/EBITDA

80.0 27.0

70.0 25.0

23.0 60.0

21.0 50.0 19.0

40.0 17.0

30.0 15.0

20.0 13.0 Dec-14 Feb-15 Apr-15 Jun-15 Aug-15 Oct-15 Dec-15 Feb-16 Dec-14 Feb-15 Apr-15 Jun-15 Aug-15 Oct-15 Dec-15 Feb-16

Source: all Bloomberg Work Service BUY SHARE PRICE PERFORMANCE COMPANY DESCRIPTION

Bloomberg ticker WSE PW Work Service WIG Index Work Service (WSE), based in Wroclaw, is Poland’s largest HR company, 22 Closing price, PLN 11.8 25 providing solutions ranging from permanent placement and temporary staffing, 20 52 Week range, PLN 10.7-21.1 20 to outplacement and outsourcing services throughout Central and Eastern 18 Europe. The company cooperates with 3,000 companies, supplying them with 52 Week performance -41.1% 15 16 52 Week relative performance -30.2% 50,000 workers daily, and 300,000 workers p.a. WSE was founded in 1999, 10 Shares outstanding, mln 65.1 14 floated in Warsaw in 2012, and completed its dual-listing in London in 2016. 5 The founder of the company, Tomasz Misiak, currently holds a 14.65% stake Market cap, EUR m 181 12 and presides over the supervisory board. Free float 31% 0 10 Work Service WIG Index Mar-15Mar-15 Jun-15Jun-15 Sep-15Sep-15 Dec-15Dec-15

Average daily turnover, EUR m 0.04 RATIOS

PER SHARE RATIOS, PLN 2012 2013 2014 2015 2016E 2017E DUPONT ANALYSIS 2012 2013 2014 2015 2016E 2017E EPS 0.43 0.46 0.60 0.42 0.76 0.91 Net margin 2.8% 2.9% 2.1% 1.3% 2.2% 2.5% BVPS 2.4 3.7 4.7 4.4 6.4 7.3 Asset turnover 2.05x 1.95x 1.99x 1.91x n.a. n.a. DPS (year of payout) 0.10 n.a. 0.10 0.16 0.20 n.a. ROA 6.5% 6.4% 5.4% 2.8% n.a. n.a. Leverage 3.29x 2.45x 2.53x 3.37x n.a. n.a. PROFITABILITY 2012 2013 2014 2015 2016E 2017E ROE 21.5% 15.7% 13.6% 9.3% 10.9% n.a. Gross profit margin 10.4% 12.3% 11.7% 11.1% 11.2% 11.1% EBITDA margin 5.9% 5.8% 5.7% 4.8% 5.3% 5.4% EBIT margin 5.3% 5.3% 5.1% 4.2% 4.7% 4.8% VALUATION RATIOS 2012 2013 2014 2015 2016E 2017E Net margin 2.8% 2.9% 2.1% 1.3% 2.2% 2.5% EV/EBITDA 8.8x 15.6x 13.0x 12.6x 8.0x 6.8x P/E 13.0x 27.1x 30.0x 34.5x 15.5x 13.1x FINANCIAL RATIOS 2012 2013 2014 2015 2016E 2017E EV, PLN m 378 833 1,277 1,280 985 901 Net debt/EBITDA 2.27x 1.36x 0.73x 2.89x 1.39x 0.66x Net debt, PLN m 97 73 72 295 171 87 Net debt/equity 0.80x 0.31x 0.21x 0.89x n.a. n.a. FCF, PLN m -12 -51 31 -17 n.a. n.a. Asset turnover 2.05x 1.95x 1.99x 1.91x n.a. n.a. FCF yield -1.5% -6.6% 4.1% -2.1% n.a. n.a. Capex/deprecation 0.63x 2.49x 1.33x 2.20x n.a. n.a. Dividend yield n.a. n.a. 0.8% 0.9% 1.7% n.a. Op. cash flow/capex -0.50x -0.60x 2.85x 0.41x n.a. n.a. COMPANY FINANCIALS INCOME STATEMENT, PLN m 2012 2013 2014 2015 2016E 2017E BALANCE SHEET, PLN m 2012 2013 2014 2015 2016E 2017E Revenues 727 918 1,740 2,137 2,336 2,458 PPE 15 17 24 33 n.a. n.a. Cost of sales -652 -806 -1,536 -1,899 -2,074 -2,185 LT investment n.a. n.a. 1 5 n.a. n.a. Gross profit 75 113 203 238 262 273 Others n.a. n.a. 395 551 n.a. n.a. Total non-current assets 185 219 420 589 n.a. n.a. Other operating income 4 8 12 29 n.a. n.a. SG&A and other -40 -72 -126 -178 n.a. n.a. Inventories 5 7 11 17 n.a. n.a. Trade accounts recievable 72 111 240 309 n.a. n.a. EBITDA 43 53 98 102 123 132 Cash and cash equivalents 9 38 72 58 n.a. n.a. EBIT 39 49 89 89 110 118 Other 84 95 131 148 n.a. n.a. Total current assets 171 251 455 532 n.a. n.a. PBT 25 33 63 66 84 95 Income tax -2 -3 -10 -24 n.a. n.a. Total assets 355 470 875 1,121 n.a. n.a.

Net profit 20 26 36 28 51 61 Total shareholders equity 122 235 343 329 n.a. n.a. Minority interest 10 11 36 44 n.a. n.a.

CASH FLOW STATEMENT, PLN m 2012 2013 2014 2015 2016E 2017E LT Debt 38 74 89 210 n.a. n.a. CF from operations -4 -19 48 11 n.a. n.a. Other LT liabilities 6 3 8 81 n.a. n.a. o/w depreciation 4 5 10 13 n.a. n.a. Total non-current liabilities 44 77 97 292 n.a. n.a. o/w change in WC 1 -112 74 -13 n.a. n.a. ST Debt 69 37 70 142 n.a. n.a. CF from investments -55 -46 -128 -178 n.a. n.a. ST payables 15 14 28 45 n.a. n.a. o/w capex -8 -32 -17 -28 n.a. n.a. Other LT liabilities 106 107 337 312 n.a. n.a. Total current liabilities 189 158 435 500 n.a. n.a. CF from fin. activities 62 94 114 152 n.a. n.a. o/w dividends -5 0 0 -10 -13 n.a. Total equity and liabilities 355 470 875 1,121 n.a. n.a.

1YF CONSENSUS P/E 1YF CONSENSUS EV/EBITDA

30.0 14.0

28.0 13.0

26.0 12.0 24.0 11.0 22.0 10.0 20.0 9.0 18.0 8.0 16.0

14.0 7.0

12.0 6.0 Dec-14 Feb-15 Apr-15 Jun-15 Aug-15 Oct-15 Dec-15 Feb-16 Dec-14 Feb-15 Apr-15 Jun-15 Aug-15 Oct-15 Dec-15 Feb-16

Source: all Bloomberg Uniwheels BUY SHARE PRICE PERFORMANCE COMPANY DESCRIPTION Bloomberg ticker UNW PW Uniwheels is one of the leading suppliers of alloy wheels in Europe. Closing price (PLN) 140.0 140 The company operates in two segments: OEM (80% of revenue in Price target (PLN) 142.0 130 2014) and aftermarket (19% of revenue in 2014). In OEM, Uniwheels Upside to PT 1% 120 Shares outstanding (m) 12.4 110 is the third-largest market player, with an 11% market share, while it is Market cap (EURm) 406 100 the biggest player in the aftermarket, with a 13% market share. The Free float 39% 90 Average daily turnover (EURm) 0.3 WIG Index company sells alloy wheels mainly to premium OEM customers, with 80 52 Week performance 37.0% Uniwheels 70 whom it has long-term relationships. 52 Week relative performance 53.2% 52 Week Range (PLN) 105-140

RATIOS

PER SHARE RATIOS, EUR 2013 2014 2015E 2016E 2017E 2018E DUPONT ANALYSIS 2014 2015E 2016E 2017E 2018E EPS 1.32 2.28 2.68 2.95 3.13 3.67 Adjusted net margin 6.3% 8.0% 8.8% 8.5% 9.2% Adjusted EPS 1.32 2.28 2.68 2.95 3.13 3.67 Asset turnover 1.38x 1.27x 1.19x 1.25x 1.28x BVPS 8.5 8.3 15.5 17.3 18.9 21.0 Adjusted ROA 8.7% 10.2% 10.5% 10.6% 11.8% DPS (year of payout) 0.72 0.00 1.00 1.21 1.47 1.57 Leverage 3.16x 1.69x 1.62x 1.56x 1.49x Adjusted ROE 27.3% 17.3% 17.1% 16.6% 17.5% FINANCIAL RATIOS 2013 2014 2015E 2016E 2017E 2018E ROIC 13.1% 13.4% 14.2% 14.7% 16.4% EBITDA margin 11.3% 12.9% 12.9% 14.1% 14.1% 14.2% Adj. EBITDA margin 11.3% 12.9% 12.9% 14.1% 14.1% 14.2% VALUATION RATIOS 2014 2015E 2016E 2017E 2018E EBIT margin 7.0% 9.0% 9.4% 9.8% 9.4% 9.7% EV/EBITDA 9.1x 8.4x 7.8x 7.0x 6.1x Net margin 3.9% 6.3% 8.0% 8.8% 8.5% 9.2% Adj. EV/EBITDA 9.1x 8.4x 7.8x 7.0x 6.1x Adjusted net margin 3.9% 6.3% 8.0% 8.8% 8.5% 9.2% P/E 14.7x 12.4x 11.3x 10.6x 9.1x Adj. P/E 14.7x 12.4x 11.3x 10.6x 9.1x Net debt/EBITDA 2.07x 1.92x 0.62x 0.74x 0.64x 0.22x EV, PLNm 425 446 457 455 429 Net debt/equity 0.93x 1.08x 0.17x 0.20x 0.18x 0.06x Net debt, PLNm 90 33 43 42 15 Asset turnover 1.40x 1.38x 1.27x 1.19x 1.25x 1.28x FCF, PLNm 28 -13 9 24 48 Capex/deprecation 0.48x 0.97x 3.96x 2.64x 1.55x 0.83x FCF yield 8.3% -3.4% 2.1% 5.7% 11.6% Op. cash flow/capex 2.77x 1.73x 0.67x 1.10x 1.59x 3.50x Dividend yield 0.0% 3.0% 3.6% 4.4% 4.6%

COMPANY FINANCIALS INCOME STATEMENT, EURm 2013 2014 2015E 2016E 2017E 2018E BALANCE SHEET, EURm 2014 2015E 2016E 2017E 2018E Revenues 337 363 413 415 458 497 PPE, net 115 158 187 199 195 Changes in inv. of finished goods 2 8 6 6 6 6 Deferred tax assets 35 35 35 35 35 Own work capitalized 1 1 1 1 1 1 Intangible assets, net 6 6 6 6 6 Total operating performance 339 371 420 421 464 503 Goodwill 1 1 1 1 1 Other operating income 5 3 3 3 3 3 Real estate investment 1 1 1 1 1 Cost of material -211 -224 -254 -246 -274 -300 Other 1 1 1 1 1 Personnel expenses -54 -58 -65 -66 -69 -71 Total non-current assets 158 201 230 242 238 Other expenses -41 -46 -51 -54 -60 -65 D&A -15 -14 -15 -18 -22 -22 Inventories 54 62 64 73 79 EBITDA 38 47 53 59 65 70 Trade accounts recievable 26 34 35 38 41 Adj. EBITDA 38 47 53 59 65 70 Current financial assets 1 1 1 1 1 EBIT 24 33 39 41 43 48 Tax recievables 0 0 0 0 0 Adj. EBIT 24 33 39 41 43 48 Cash 21 23 15 7 24 Net financial costs -14 -10 -5 -4 -4 -3 Other 4 4 4 4 4 PBT 10 22 33 37 39 46 Total current assets 105 124 118 123 149 Income tax 4 0 0 0 0 0 Minorities 0 0 0 0 0 0 Total shareholders equity 83 193 214 235 261 Net profit 13 23 33 37 39 46 Minority interest 0 0 0 0 0 Adj. net profit 13 23 33 37 39 46 LT Debt 73 43 33 24 14 CASH FLOW STATEMENT, EURm 2013 2014 2015E 2016E 2017E 2018E Other LT liabilities 17 13 9 5 3 CF from operations 20 24 39 52 54 64 Total non-current liabilities 90 56 42 29 17 o/w depreciation 15 14 15 18 22 22 o/w change in WC -8 -13 -9 -3 -7 -4 ST Debt 38 13 25 25 25 CF from investments -7 -14 -58 -47 -34 -18 ST payables 41 53 56 66 74 o/w capex -7 -14 -58 -47 -34 -18 Other LT liabilities 11 11 11 11 11 CF from fin. activities -10 3 21 -13 -28 -29 Total current liabilities 90 76 92 102 110 o/w dividends -7 0 -10 -15 -18 -19 o/w capital increase 9 0 61 0 0 0 Total equity and liabilities 263 325 348 365 388

OPERATIONS REVENUE SPLIT, EURm 2013 2014 2015E 2016E 2017E 2018E MAIN ASSUMPTIONS 2014 2015E 2016E 2017E 2018E Total revenues 337 363 413 415 458 497 3M Aluminum price, EUR/t 1,430 1,430 1,489 1,545 1,600 OEM 263 284 330 333 374 412 Ingot premium, EUR/t 354 301 170 170 170 Aftermarket 65 74 77 75 76 78 All-in aluminum price, EUR/t 1,785 1,731 1,659 1,715 1,770 Others 9 4 6 7 7 8 EUR/PLN 4.19 4.15 4.15 4.15 4.15 USD/PLN 3.16 3.55 3.55 3.55 3.55 VOLUMES SOLD, ths wheels 2013 2014 2015E 2016E 2017E 2018E Total volumes sold 6,966 7,327 7,786 8,078 8,724 9,272 MARGINS AND COSTS, EUR 2014 2015E 2016E 2017E 2018E OEM 5,583 5,790 6,242 6,538 7,182 7,727 Revenue per wheel, OEM 49.0 52.8 51.0 52.1 53.3 Aftermarket 1,288 1,438 1,438 1,438 1,438 1,438 Revenue per wheel, Aft 51.7 53.8 52.0 53.1 54.3 Aluminium cost per wheel 20.7 22.7 20.1 20.8 21.4 REVENUE PER WHEEL, EUR 2013 2014 2015E 2016E 2017E 2018E Personnel cost per wheel 8.0 8.4 8.2 8.0 7.8 Average revenue per wheel 47.8 49.6 53.0 51.2 52.3 53.4 Other cost per wheel 16.7 17.1 17.5 18.0 18.4 OEM 47.2 49.0 52.8 51.0 52.1 53.3 Premium over production cost, OEM 3.7 4.6 5.1 5.4 5.7 Aftermarket 50.6 51.7 53.8 52.0 53.1 54.3 Premium over production cost, Aft 6.4 5.6 6.1 6.4 6.7

Source: Wood Research, company information Inter Cars BUY SHARE PRICE PERFORMANCE COMPANY DESCRIPTION Bloomberg ticker CAR PW Inter Cars is the biggest automotive spare parts distributor for 280 Closing price (PLN) 214 WIG Index Rebased Inter Cars passenger cars, commercial vehicles and trucks in CEE. Its product Price target (PLN) 307 260 range also includes garage equipment, particularly tools for servicing, Upside to PT 43% 240 repairing and maintaining cars, as well as motorcycle spare parts and Shares outstanding (m) 14.2 tuning parts. At present, Inter Cars has 175 branches in Poland and Market cap (PLNm) 708 220 175 branches in the CEE region, mostly in the Czech Republic, Free float 59% 200 Slovakia, Ukraine, Romania and Bulgaria. Its product range reaches Average daily turnover (PLNm) 1.1 over one million different automotive spare parts. The company has a 52 Week performance -3.9% 180 52 Week relative performance 8.5% full range of products for Asian and European cars. 160 52 Week Range (PLN) 210-270 Mar-15 Jun-15 Sep-15 Dec-15

RATIOS

PER SHARE RATIOS, PLN 2013 2014 2015E 2016E 2017E 2018E DUPONT ANALYSIS 2014 2015E 2016E 2017E 2018E EPS 10.43 12.54 14.89 16.87 20.56 23.70 Adjusted net margin 4.5% 4.4% 4.2% 4.4% 4.5% Adjusted EPS 10.43 12.54 14.89 16.87 20.56 23.70 Asset turnover 1.93x 1.88x 1.88x 1.94x 2.00x BVPS 63.8 75.5 89.6 105.8 121.3 132.6 Adjusted ROA 8.6% 8.3% 7.9% 8.5% 8.9% DPS (year of payout) 0.00 0.71 0.71 0.72 5.06 12.34 Leverage 1.92x 2.01x 2.01x 1.99x 2.00x Adjusted ROE 16.6% 16.6% 15.9% 17.0% 17.9% FINANCIAL RATIOS 2013 2014 2015E 2016E 2017E 2018E ROIC 12.0% 12.2% 11.3% 12.0% 12.5% Gross profit margin 31.6% 30.6% 30.5% 30.0% 30.0% 30.0% EBITDA margin 6.6% 6.8% 6.6% 6.3% 6.3% 6.3% VALUATION RATIOS 2014 2015E 2016E 2017E 2018E Adj. EBITDA margin 6.6% 6.8% 6.6% 6.3% 6.3% 6.3% EV/EBITDA 12.3x 11.8x 10.7x 9.3x 8.4x EBIT margin 5.5% 5.7% 5.6% 5.4% 5.5% 5.6% Adj. EV/EBITDA 12.3x 11.8x 10.7x 9.3x 8.4x Net margin 4.2% 4.5% 4.4% 4.2% 4.4% 4.5% P/E 15.5x 14.4x 12.7x 10.4x 9.0x Adjusted net margin 4.2% 4.5% 4.4% 4.2% 4.4% 4.5% Adj. P/E 15.5x 14.4x 12.7x 10.4x 9.0x EV, PLNm 3,321 3,712 3,838 3,897 3,997 Net debt/EBITDA 1.85x 2.12x 2.16x 2.25x 2.07x 2.04x Net debt, PLNm 571 680 806 865 965 Net debt/equity 0.48x 0.53x 0.54x 0.54x 0.50x 0.51x FCF, PLNm -92 -79 -91 40 104 Asset turnover 2.07x 1.93x 1.88x 1.88x 1.94x 2.00x FCF yield -3.4% -2.6% -3.0% 1.3% 3.4% Capex/deprecation 1.15x 1.86x 2.60x 2.54x 0.81x 0.84x Dividend yield 0.4% 0.3% 0.3% 2.4% 5.8% Op. cash flow/capex 2.27x 0.58x 0.37x 0.34x 2.01x 3.41x

COMPANY FINANCIALS INCOME STATEMENT, PLNm 2013 2014 2015E 2016E 2017E 2018E BALANCE SHEET, PLNm 2014 2015E 2016E 2017E 2018E Revenues 3,513 3,959 4,786 5,666 6,615 7,502 PPE, net 270 344 424 414 406 Cost of sales -2,403 -2,749 -3,326 -3,966 -4,630 -5,251 Intangible assets, net 158 158 158 158 158 Gross profit 1,110 1,210 1,460 1,700 1,984 2,251 Deffered tax assets 31 31 31 31 31 Other operating income, net -24 -7 -9 -11 -12 -14 Real estate investment 25 25 25 25 25 Costs of sales and administrative costs -506 -546 -675 -788 -913 -1,028 Other 14 14 14 14 14 Distribution expenses -387 -429 -507 -595 -695 -788 Total non-current assets 499 572 652 642 634 EBITDA 232 270 315 359 418 474 Adj. EBITDA 232 270 315 359 418 474 Inventories 1,041 1,386 1,653 1,929 2,188 EBIT 193 227 269 307 365 421 Trade accounts recievable 406 479 567 661 750 Adj. EBIT 193 227 269 307 365 421 Cash and cash equivalents 66 69 94 135 134 Net financial costs -22 -21 -24 -28 -31 -35 Other 46 46 46 46 46 PBT 171 206 245 278 333 387 Total current assets 1,558 1,980 2,359 2,771 3,118 Income tax -23 -28 -34 -40 -42 -51 Minorities 0 0 0 0 0 0 Total shareholders equity 1,069 1,270 1,499 1,718 1,879 Net profit 148 178 211 239 291 336 Minority interest 0 0 0 0 0 Adj. net profit 148 178 211 239 291 336 LT Debt 399 449 599 699 799 CASH FLOW STATEMENT, PLNm 2013 2014 2015E 2016E 2017E 2018E Other LT liabilities 14 14 14 14 14 CF from operations 102 46 45 44 87 154 Total non-current liabilities 414 464 614 714 814 o/w depreciation 39 43 46 52 53 53 o/w change in WC -107 -204 -236 -275 -289 -270 ST Debt 237 300 300 300 300 CF from investments -39 -73 -120 -132 -43 -45 ST payables 234 416 496 579 656 o/w capex -45 -79 -120 -132 -43 -45 Other LT liabilities 103 103 103 103 103 CF from fin. activities -50 113 79 112 -3 -109 Total current liabilities 574 819 899 982 1,059 o/w dividends 0 -10 -10 -10 -72 -175 o/w borrowings -31 141 113 150 100 100 Total equity and liabilities 2,057 2,552 3,011 3,414 3,752

OPERATIONS REVENUE SPLIT, PLNm 2013 2014 2015E 2016E 2017E 2018E BRANCHES, units 2014 2015E 2016E 2017E 2018E Poland 2,277 2,516 2,893 3,211 3,501 3,711 Poland 169 180 192 206 215 Export 790 882 1,145 1,481 1,863 2,233 Foreign operations, current markets 160 189 217 247 291 Foreign operations, current markets 909 1,159 1,583 2,096 2,686 3,297 Foreign operations, new markets 1 4 15 20 24 Foreign operations, new markets 0 0 17 60 124 184 Total 330 373 424 473 531 Other 32 48 49 50 51 52 Consolidation adjustment -496 -645 -901 -1,233 -1,609 -1,974 Total 3,513 3,959 4,786 5,666 6,615 7,502

Source: Wood Research, company information mBank SELL SHARE PRICE PERFORMANCE COMPANY DESCRIPTION Bloomberg ticker MBK PW 500 MBK PW Equity mBank Group is a universal banking group providing retail and WIG Index Closing price (PLN) 344 450 corporate banking services, as well as leasing, factoring, Target price (PLN) 341 brokerage, insurance and wealth management services. The group Upside to TP -1% 400 also comprises mortgage bank mBank Hipoteczny. The bank is

Shares outstanding (m) 42.2 350 headquartered in Poland, which is its primary market, but it is also Market cap (EURm) 3,345 present in the Czech Republic and Slovakia. mBank serves c.4.8m 300 Free float 31% retail clients and over 18,000 corporate clients through over 250 Average daily turnover (EURm) 2.4 250 branches. The major shareholder is Commerzbank AG, holding

52 Week Range (PLN) 268-490 69.54% of the share capital.

Jul-15

Oct-15

Jun-15 Jan-16

Mar-15 Feb-16

Sep-15 Dec-15 May-15

RATIOS PER SHARE RATIOS 2013 2014 2015E 2016E 2017E VALUATION RATIOS 2013 2014 2015E 2016E 2017E EPS (PLN) 28.60 30.48 30.97 22.47 26.83 P/E (x) 12.0x 11.3x 11.1x 15.3x 12.8x BVPS (PLN) 242.54 261.63 292.59 315.07 330.67 P/BV (x) 1.4x 1.3x 1.2x 1.1x 1.0x DPS (PLN)* 17.00 0.00 0.00 11.24 13.42 Dividend yield 4.94% 0.00% 0.00% 3.27% 3.90%

KEY RATIOS 2013 2014 2015E 2016E 2017E Asset quality Gross loans 2013 2014 2015E 2016E 2017E NPL ratio 6.2% 6.3% 6.1% 6.1% 6.1% Corporate loans 29,475 32,841 35,468 38,306 40,604 Coverage ratio 53.8% 57.2% 63.8% 70.0% 70.2% Public sector loans 2,178 1,924 1,767 1,623 1,524 Provisions/ Gross loans 3.4% 3.6% 3.9% 4.3% 4.3% Retail loans 38,308 41,560 44,990 45,273 45,901 Provision expense/ Gross loans (Cost of 0.7% 0.7% 0.5% 0.5% 0.5% Total 70,582 77,373 83,354 86,371 89,237 Risk) Provision expense/ Pre Provision 23.9% 23.8% 21.3% 21.8% 20.0% Gross loans yoy. Ch % Operating profit Balance sheet ratios Corporate loans 3.8% 11.4% 8.0% 8.0% 6.0% Net loans/deposits 110.6% 103.0% 103.1% 99.5% 96.5% Public sector loans -19.3% -11.6% -8.2% -8.2% -6.1% Deposits/assets 59.1% 61.4% 62.3% 64.6% 67.5% Retail loans 1.6% 8.5% 8.3% 0.6% 1.4% Net loans/assets 65.4% 63.2% 64.3% 64.3% 65.2% Total 1.6% 9.6% 7.7% 3.6% 3.3% Equity/assets (including minority interest) 9.8% 9.4% 9.9% 10.3% 10.7% Capital adequacy* 19.4% 14.7% 15.0% 16.8% 17.1% Deposits Tier 1 capital adequacy* 14.2% 12.3% 12.8% 14.6% 15.0% Corporate clients 26,753 32,237 33,565 36,119 38,674 Individual clients 34,203 39,285 43,184 45,930 48,746 GROWTH Public sector clients 718 901 964 1,029 1,094 Net loans 1.9% 9.3% 7.4% 3.2% 3.3% Total 61,674 72,422 77,713 83,079 88,514 Deposits 6.4% 17.4% 7.3% 6.9% 6.5% Deposits yoy. Ch % Equity 6.6% 8.0% 11.8% 7.7% 5.0% Corporate clients 10% 20% 4% 8% 7% Assets 2.1% 13.1% 5.6% 3.2% 1.9% Individual clients 3% 15% 10% 6% 6% Public sector clients 43% 26% 7% 7% 6% Total 6% 17% 7% 7% 7%

COMPANY FINANCIALS INCOME STATEMENT, PLNbn 2013 2014 2015E 2016E 2017E BALANCE SHEET, PLNbnm 2013 2014 2015E 2016E 2017E Cash and due from the central Net Interest Income 2,226 2,491 2,471 2,566 2,769 1,650 3,055 3,663 3,780 3,905 bank Fee and commission income 835 902 896 974 1,046 Interbank loans 3,471 3,751 3,535 3,820 2,396 Other income 613 547 606 505 515 Loans to customers 68,210 74,582 80,124 82,700 85,428 Total non - interest income 1,448 1,449 1,503 1,479 1,561 Debt securities 25,804 28,563 30,498 31,285 32,118 Total operating income 3,674 3,939 3,974 4,045 4,330 Other financial assets 2,652 5,146 4,076 4,218 4,362 Total costs -1,678 -1,771 -1,909 -2,025 -2,052 Tangible and intangible assets 1,165 1,183 1,158 1,140 1,141 Operating profit before provisions 1,995 2,169 2,065 2,020 2,278 Investment in associates 0 0 0 0 0 Provision expense -478 -516 -440 -441 -456 Other assets 1,330 1,706 1,591 1,643 1,697 Operating profit ex. adj. and one - offs 1,517 1,653 1,625 1,579 1,822 Total assets 104,283 117,986 124,644 128,585 131,047 Taxes -309 -363 -318 -319 -368 Interbank deposits, including due Minorities/Pref divs -3 -3 0 0 0 19,224 13,384 13,640 10,502 7,581 to central bank Reported attributable net profit 1,206 1,287 1,307 949 1,133 Deposits from customers 61,674 72,422 77,713 83,079 88,514 Debt securities 5,402 10,342 11,110 11,467 11,846 Subordinated loans 3,763 4,128 3,924 3,924 2,424 Other liabilities 3,964 6,637 5,878 6,284 6,695 Equity 10,229 11,043 12,350 13,299 13,957 Minority interest 27 30 30 30 30 Total liabilities and equity 104,283 117,986 124,644 128,585 131,047

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Wood Research Disclosures (as of 29 March 2016) Company Disclosures AT&S 5 BRD 5 BZ WBK 5 CD Projekt 5 CETV 5 CEZ 5 Conpet 1 DO&CO 1 Erste Group Bank 5 Enea 5 Energa 5 Fortuna 5 S.C. Fondul Proprietatea S.A. 1, 4, 5 Getin Noble Bank 5 GTC 5 ITG 1, 3 Immofinanz 5 IPF 5 JSW 5 KGHM 5 Komercni 5 mBank 5 Millennium 5 Netia 5 Orange PL 5 Pekao 5 PGE 5 Philip Morris 5 PKO BP 1, 2, 3, 5 PKN 5 PZU 5 RC2 4 Romgaz 5 SIF2 10 SNP 3, 5 O2 CR 5 Transilvania 5 Transgaz 1 WSE 1 Warimpex 1, 5

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