www.erstegroup.com
CEE Credit
Corporate Bond Markets – October 2008
CEE corporates remain relatively robust, with only few rating impacts
Defensive bonds outperform sector indices
Preference for short maturities
Conclusion: Insecurity keeps spreads at high level
This research report was prepared by Erste Bank der oesterreichischen Sparkassen AG (”Erste Bank”) or its affiliate named herein. The information herein has been obtained from, and any opinions herein are based upon, sources believed reliable, but we do not represent that it is accurate or complete and it should not be relied upon as such. All opinions, forecasts and estimates herein reflect our judgement on the date of this report and are subject to change without notice. The report is not intended to be an offer, or the solicitation of any offer, to buy or sell the securities referred to herein. From time to time, Erste Bank or its affiliates or the principals or employees of Erste Bank or its affiliates may have a position in the securities referred to herein or hold options, warrants or rights with respect thereto or other securities of such issuers and may make a market or otherwise act as principal in transactions in any of these securities. Erste Bank or its affiliates or the principals or employees of Erste Bank or its affiliates may from time to time provide investment banking or consulting services to or serve as a director of a company being reported on herein. Further information on the securities referred to herein may be obtained from Erste Bank upon request. Past performance is not necessarily indicative for future results and transactions in securities, options or futures can be considered risky. Not all transaction are suitable for every investor. Investors should consult their advisor, to make sure that the planned investment fits into their needs and preferences and that the involved risks are fully understood. This document may not be reproduced, distributed or published without the prior consent of Erste Bank. Erste Bank der oesterreichischen Sparkassen AG confirms that it has approved any investment advertisements contained in this material. Erste Bank der oesterreichischen Sparkassen AG is regulated by the Financial Services Authority for the conduct of investment business in the UK.
Please refer to www.erstebank.at for the current list of specific disclosures and the breakdown of Erste Bank’s investment recommendations. Table of contents
Page
Market overview 2
Primary & Secondary Markets 3
Credit Ratings Trends 5
Market Outlook 6
Company Factsheets 7
Exchange rates 27
Lists of selected bonds 28
Contacts 37
Analyst: Alihan Karadagoglu +43 (0)50 100-19633 [email protected]
Erste Group - CEE Credit Page 1 Market overview
CEE credit spreads at The double burden comprising the global liquidity crisis and fears about a painful all-time highs slowdown in the Eurozone have negatively affected risk premiums in Central and Eastern Europe (CEE). After the peak in mid-September - after Lehman Brothers filed for Chapter 11 1 and the world's biggest insurance company AIG was saved at the last minute by the US Federal Reserve - CEE credit spreads again rose sharply in the last couple of weeks and reached new all-time highs, mainly due to the liquidity problems of European financial institutions (Fortis, Dexia, Hypo Real Estate, Icelandic banks). The cost of insuring sovereign debt has soared, pricing in an increasing risk of default. The CDS of sovereigns of Hungary and Poland widened to 396bps and 185bps respectively, as the CDS of Czech Republic reached 145bps.
CEE Sovereign EUR 5-yr CDS* in bp
400 Problems by 350 European banks peak 300 250 Lehman files Chapter 11
200 JPMorgan and Fed Move to Bail Out 150 Bear Stearns 100 50 0 Jul-05 Jul-06 Jul-07 Jul-08 Jan-05 Mar-05 Jan-06 Mar-06 Jan-07 Mar-07 Jan-08 Mar-08 Nov-04 Nov-05 Nov-06 Nov-07 May-05 Sep-05 May-06 Sep-06 May-07 Sep-07 May-08 Sep-08 16/09/2008 03/10/2008 10/10/2008
Czech Rep (A+) Hungary (BBB+) Poland (A-) Slovakia (A+)
Source: Bloomberg; *Average of bid-offer prices of five-year senior debt CDS contracts; as of 13.10.2008
Interbank markets are With big trouble in Iceland, markets are worried about some banks in emerging functioning well in CEE markets. OTP Bank of Hungary came under pressure in CEE, awakening fears that the global financial crisis could spill into the Central and Eastern European banking system. The development of sovereign CDS as well as the news for some CEE financials reflect the lack of confidence among investors. They are sending the message - credit tightening can evolve very quickly - and are charging high risk premiums. Concerns regarding the credit tightening in CEE are fundamentally not supported, in our view. The banks in CEE are not at all involved in any sub-prime related investments and so had no need to write off their assets2. Spreads between key interest rates and money market rates indicate much higher confidence among local banks. Furthermore, the effectiveness of CEE banks in mobilizing funds from the public (and in channeling them in the form of credits) is much greater than in Western Europe.
1 A case filed under Chapter 11 of the United States Bankruptcy Code is frequently referred to as a "reorganization" bankruptcy. A Chapter 11 debtor usually proposes a plan of reorganization to keep its business alive and pay creditors over time. Source: U.S. Courts 2 Please see also our "CEE Banks - Sector report" from June 19, 2008.
Erste Group - CEE Credit Page 2 Primary & Secondary Markets
Interbank rates vs. Key interst rates
Interbank Rates 3 Months Key Interest Rates
Czech Republic 4.09% 3.50%
Eurozone 5.38% 3.75%
Poland 6.82% 6.00%
Slovakia 4.29% 5.00%
Source: Bloomberg, as of 10.10.2008
Defensive bonds out- In times of financial turmoil, investors are looking for safety. Treasuries and perform sector indices government related issuers (GRI) are particularly in demand. So, the development of sovereign CDS is relevant to corporate bonds in CEE because many issuers have full or partial government ownership or have a charter from a national or local government (e.g. Czech utility CEZ, in which the Czech Republic holds 64% of the capital). A default by the government increases the likelihood that a GRI might fail in the case of high default dependence between the government and the corporation.
Besides that, investors are looking for corporations from defensive sectors assumed to generate stable cash flows. When we look at the performance of some euro-denominated bonds from defensive sectors like telecoms and utilities in CEE (incl. Austria), they all have outperformed the sector indices since mid- September. In particular, securities with short-term maturities had a positive return. This can be explained by the current market conditions, in which investors focus on short-term papers to reduce the duration risk.
Total Return Index Level and Performance of Benchmark Eurobonds (iBoxx Non Financial Corporates)
Sector since 15.09.2008 since 01.01.2008 Oil & Gas -4.75% -4.81% Telecoms -4.18% -2.17% Utilities -3.33% -0.15%
Bond Issuer since 15.09.2008 since 01.01.2008 CEZCO 5 1/8 10/12 CEZ AS -0.80% -0.39% CEZCO 4 1/8 10/13 CEZ AS -1.52% -0.12% CEZCO 4 5/8 06/11 CEZ FINANCE BV 0.89% 0.52% MOLHB 3 7/8 10/15 MOL HUNGARIAN OIL & GAS -0.95% -9.62% TPSA 4 5/8 07/11 TPSA EUROFINANCE FRANCE 4.84% 1.81% TKA 3 3/8 01/27/10 TELEKOM FINANZMANAGEMENT 0.28% 0.91% TKA 4 1/4 01/27/17 TELEKOM FINANZMANAGEMENT -3.77% -3.98% TKA 5 07/22/13 TELEKOM FINANZMANAGEMENT -1.44% -2.27% OMV 3 3/4 06/10 OMV AG -0.84% -0.86% VERBND 5 06/25/14 VERBUND INTERNATIONAL FI -1.30% -0.32%
Source: Bloomberg, Market iBoxx; as of 10.10.2008
Primary market: On the primary market, the rare bond issuance concentrates in general at the Preference for short short end, which is due to the risk aversion of investors. However, issuers are maturities also showing a preference for short maturities as a way of avoiding having to bear the burden of the (on average) high refinancing cost over many years. For
Erste Group - CEE Credit Page 3 Primary & Secondary Markets
example, OEBB Infrastruktur (Aaa/AAA) has been able to place its three-year Euro benchmark bond (ISIN: XS0392808415) successfully. The security is priced 73.5bps more than treasuries. The new issues must be attractively priced. Thus, due to the high spreads of the new Eurobonds, a revaluation of existing bonds may be expected on the secondary market in some cases.
As shown in the following charts, there will be high volumes of outstanding bonds of CEE corporations and financials maturing only in the year 2009. The outstanding securities maturing until the end of 2008 amount to about EUR 1,283mn by corporates (here, a great portion by Polish telecom TPSA) and EUR 2,136mn by financials. Credit markets are expected to remain "closed" in the coming months. Considering these conditions (high credit spreads), we expect the companies in 2008 to refinance outstanding debt mainly by cash flows and bank loans, although banks in CEE are also becoming more selective in lending and thus charging higher risk premiums.
Outstanding maturities - corporates in EURmn Outstanding maturities - financials in EURmn
3,500 12,000
3,000 10,000 2,500 8,000 2,000 6,000 1,500 4,000 1,000 500 2,000 0 0 2008 2009 2010 2011 2012 2013 2014 as 2008 2009 2010* 2011 2012 2013 2014 as from from CEE Corporates 2015 CEE Financials 2015
Source: Erste Group Research, Bloomberg, *Imexbank bond of Ukraine (about EUR 20bn) is not included
Moderate investment Companies will have to reduce their investment plans not only due to high growth financing costs. The economic slowdown in the Eurozone - clearly visible by now - is a reason for slowing capital expenditures because CEE economies are exporting a sizeable portion of their export production to Western Europe. So, we expect that investments by CEE corporations will slow down next year because of weakening external demand and the higher cost of capital. However, house- hold consumption is to remain robust in CEE next year, becoming the most important driver of GDP growth3.
Global speculative- The credit quality of European issuers has been in a steady downwards trend grade default rate since the outbreak of the US sub-prime crisis in 3Q07. In particular, the data on continues to rise speculative-grade companies presents a gloomy picture. According to Moody's, the global default rate of bonds with low credit ratings will rise to 6.05% in the course of next year. Should the US economy take a long time to improve, the default rate might even rise to 10%. The expected default rate in Europe (4.8%) is noticeably below the baseline forecast for the US (6.77%).
3 Please see also our "Special Report - How will the global economic downturn affect growth in CEE?" from October 13, 2008.
Erste Group - CEE Credit Page 4 Credit Ratings Trends
European1, US and Global Speculative-Grade Default Rate Forecasts 18% 16% 14% 12% 10% 8% 6% 4% 2% 0% Jul-02 Oct-00 Apr-04 Oct-07 Jan-99 Mar-00 Jun-05 Jan-06 Mar-07 Aug-99 Dec-01 Feb-03 Sep-03 Nov-04 Aug-06 Dec-08 May-01 May-08
Global Forecast Europe Forecast US Forecast US Europe Global 1Countries of domicile of European Moody's rated corporate bond issuers: Austria, Belgium, Bosnia and Herzegovina, Bulgaria, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Iceland, Italy, Latvia, Liechtenstein, Lithuania, Luxembourg, Malta, Moldova, Netherlands, Norway, Poland, Portugal, Romania, Russia, Slovak Republic, Slovenia, Spain, Sweden, Switzerland, Ukraine, United Kingdom. Source: Moody’s; as of August 2008
Across industries over the coming year, Moody's default rate forecasting model indicates that the durable consumer goods sector (6.15%) will fall into hard times the most in Europe, followed by packaging (6.07%) and the metals & mining industry (4.97%). In the same default study by Moody's, utilities (0.13%), financials and the energy sector (0.58%) are considered to be among the less risky industries.
One-Year Corporate Default Rate Forecasts by Industry
Consumer goods: durable 6.15% Containers, Packaging, & Glass 6.07% Metals & Mining 4.97% Wholesale 4.31% Forest Products & Paper 4.08% Capital Equipment 2.78% Retail 2.61% Chemicals, Plastics, & Rubber 2.46% Consumer goods: non-durable 2.18% Automotive 1.67% Telecommunications 1.60% Beverage, Food, & Tobacco 1.48% Healthcare & Pharmaceuticals 1.39% Construction & Building 1.36% Transportation: Consumer 0.85% Energy: Oil & Gas 0.58% Banking 0.23% Insurance 0.21% Real Estate 0.14% Utilities: Electric 0.13%
0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 7.0% Source: Moody’s, as of August 2008
Erste Group - CEE Credit Page 5 Market Outlook
CEE corporates remain Thus far in 2008, the credit quality of CEE corporates remains relatively robust, relatively robust with only a few rating impacts. The deterioration in the upgrade/downgrade ratio is mainly due to the negative rating impacts on speculative-grade corporations. In the last three quarters, there have been seven downgrades on four issuers (three issuers were downgraded twice) and two upgrades in the Moody's CEE universe, including Russian and Bulgarian corporations.
Credit Ratings Trends - Non-Financials
25
20
15
10
5
0 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
Upgrades Downgrades
Source: Moody’s, Erste Group Research
Outlook
Volatile spreads at high The credit markets welcomed the coordinated approach of European countries in level supporting their financial systems. We consider the plan a good sign for credit markets. However, we expect it will take a period of time until the credit freeze comes to an end. So, the volatile movement by CDS spreads will continue until confidence returns and the credit spreads should remain at a high level.
CEE investment-grade companies have in general strong cash flow generation. Moreover, funding is backed up by loan facilities with banks. Therefore, we do not expect firms to witness a liquidity risk. However, the economic slowdown is indeed a threat to operating cash flows, particularly in cyclical industries and at speculative-grade firms, which are assumed to suffer a deterioration of credit quality into 2009.
In the coming months, we expect the primary market to remain closed. In case any new bonds are issued, a revaluation of existing bonds may be expected on the secondary market in some cases. Further on, we favor mainly CEE Eurobonds from the defensive sectors - telecoms and utilities - which typically generate stable cash flows and have a more positive risk return profile than their Western European peers.
Erste Group - CEE Credit Page 6 Fact Sheet – Andritz – Machinery & Engineering – Austria – October 20, 2008
Andritz Gerald Walek +43 (0)5 0100 - 16360 [email protected] Andritz
Machinery& Engineering Key figures overview Financial strength
EUR mn 2007 2008e 2009e 2010e 2007 2008e 2009e 2010e Net sales 3,282.5 3,642.5 3,626.6 3,722.1 ROE (%) 30.51 31.57 25.04 22.12 EBITDA 242.3 288.0 273.6 275.1 ROCE (%) 31.51 32.67 29.76 28.86 EBIT 192.6 235.3 220.9 222.3 Equity ratio (%) 19.21 21.84 24.93 27.08 EBT 198.02 237.94 226.75 231.00 Net debt (EUR mn) -62.80 -196.84 -250.31 -360.75 Net profit 132.7 165.5 157.4 160.3 Gearing (%) -13.04 -32.78 -35.72 -44.85 EPS (EUR) 2.57 3.21 3.05 3.11 Trading data & Statistics CEPS (EUR) 4.00 4.26 4.18 4.22 Daily averages 5 days 30 days last year BVPS (EUR) 8.99 11.17 13.00 14.88 Volume 406,418 331,351 232,189 Dividend\Share (EUR) 1.00 1.20 1.20 1.20 Trading value (EUR mn) 8.3 8.5 8.5 EV/EBITDA (x) 8.69 2.45 2.41 2.01 P/E (x) 16.10 5.30 5.57 5.47 Company description P/CE (x) 10.36 3.99 4.07 4.03 Andritz is a global market leader in the supply of customized plants, Dividend yield (%) 2.41 7.06 7.06 7.06 systems and services for the pulp and paper, hydropower, steel and EBITDA margin (%) 7.38 7.90 7.54 7.39 other specialized industries. Major driver for Andritz is the strong Operating margin (%) 5.86 6.46 6.09 5.97 exposure to renewable energy and emerging countries. With a smat Net profit margin (%) 4.14 4.69 4.49 4.45 outsourcing strategy, Andritz has mastered the recent economic
Austria cycles quite skillfully (no loss-making year since 1990). Shareholders Certus PF 26.0%
Treasury shares 2.0%
55 1,600,000 55 50 1,400,000 50 45 1,200,000 45 40 1,000,000 40 35 800,000 35 30 600,000 30 25 400,000 25 20 200,000 20 15 0 15 17.10.2007 17.11.2007 17.12.2007 17.01.2008 17.02.2008 17.03.2008 17.04.2008 17.05.2008 17.06.2008 17.07.2008 17.08.2008 17.09.2008 17.10.2008 17.10.2007 17.11.2007 17.12.2007 17.01.2008 17.02.2008 17.03.2008 17.04.2008 17.05.2008 17.06.2008 17.07.2008 17.08.2008 17.09.2008 17.10.2008
Volume Price Andritz ATX DJ EURO STOXX Industrial Goods & Services
Price performance: 1M 3M 6M 12M Ytd in EUR -47.6% -55.6% -52.4% -66.7% -59.0%
Strengths/Opportunities Weaknesses/Threats - Supported by its net cash position (EUR 300mn), Andritz is an - Size and complexity of project nature of its business carry number active driver of the industry consolidation process of inherent risks - Master of the cycle and a very efficient manager of production - Weakening global economic environment expected to slow down - Highly cash generative business model (ROCE of around 30%), Andritz order intake growth which allows a generous dividend payout ratio of 30-40%, still fuelling tremendous growth - Strong foothold in the renewable energy market
Erste Group – Fact Sheet October 20, 2008 - Gerald Walek Phone: +43 (0)5 0100 - 16360 [email protected] Page 7
Fact Sheet – BRD - Group SG – Banking – Romania – October 20, 2008
BRD - Group SG Gernot Jany +43 (0)5 0100 - 11903 [email protected] BRD - Group SG
Banking
Key figures overview Financial strength
RON mn 2007 2008e 2009e 2010e 2007 2008e 2009e 2010e Net interest Income 1,499.39 1,833.75 2,335.34 2,931.37 ROE (%) 37.99 40.98 32.56 30.45 Net fees & commissions income632.31 861.72 1,151.81 1,513.11 ROA (%) 2.97 3.08 2.54 2.54 Total Income 2,504.96 3,110.21 3,978.91 5,015.28 Equity ratio (%) 7.75 7.40 8.12 8.56 EBT 1,215.25 1,706.22 1,829.80 2,346.82 Loans/deposits (%) 97.03 95.61 94.15 97.16 Net profit 1,021.64 1,434.66 1,538.57 1,973.30 Loans/assets (%) 67.64 68.15 68.68 69.22 EPS (RON) 1.47 2.06 2.16 2.66 Trading data & Statistics BVPS (RON) 4.41 5.64 7.59 9.83 Daily averages 5 days 30 days last year NAV/Share Volume 498,758 329,992 169,297 Dividend\Share (RON) 0.59 0.82 0.85 1.04 Trading value (RON mn) 4.7 3.5 3.3 P/E (x) 19.10 4.59 4.37 3.55 P/BV(x) 6.35 1.68 1.24 0.96 Company description P/NAV (x) BRD Groupe Société Générale (BRD) is a universal bank offering the Dividend yield (%) 2.11 8.71 8.96 11.04 full range of products for private and corporate clients, including NIM avg. tot. assets (%) 4.37 3.94 3.85 3.78 investment banking and market operations. As a 58.32% subsidiary Cost/Income ratio (%) 45.75 46.47 46.19 45.20 of Société Générale (SocGen), it is a pure local player, focusing on Risk earnings ratio (%) 9.58 12.94 13.33 13.70 the Romanian banking market. In terms of total assets, it is (with a
Romania market share of 15.4% in 2007) No. 2 in the Romanian banking Shareholders market, but has an even stronger foothold in the retail loan segment, Société Générale 58.3% where it reached a market share of 22.7% in 2006. With CIR and SIFs 25.3% EBRD 5.0% ROE of 46% and 38% in 2007, respectively, it is the most efficient
Others 11.4%
30 1,000,000 30
25 800,000 25
20 600,000 20
15 400,000 15
10 200,000 10
5 0 5 17.10.2007 17.11.2007 17.12.2007 17.01.2008 17.02.2008 17.03.2008 17.04.2008 17.05.2008 17.06.2008 17.07.2008 17.08.2008 17.09.2008 17.10.2008 17.10.2007 17.11.2007 17.12.2007 17.01.2008 17.02.2008 17.03.2008 17.04.2008 17.05.2008 17.06.2008 17.07.2008 17.08.2008 17.09.2008 17.10.2008
Volume Price BRD - Group SG BET DJ EURO STOXX Banks
Price performance: 1M 3M 6M 12M Ytd 1M 3M 6M 12M Ytd in EUR -25.1% -49.1% -55.4% -67.5% -67.0% in RON -25.0% -47.5% -54.6% -64.3% -66.3%
Strengths/Opportunities Weaknesses/Threats - No. 2 position in terms of total assets, with even stronger foothold in - Highest valuation in CEE banking sector high growth & high margin retail and SME segment - Increasing competition puts pressure on margins - Leadership in terms of efficiency and profitability, despite fast - Vulnerable to RON depreciation, due to high FX exposure expansion of branch network - Tightening of lending restrictions - Strong geographic coverage
- Support from parent company (funding, know -how)
- Long-term catch-up potential of banking sector in Romania - Strong growth rates in all market segments
Erste Group – Fact Sheet October 20, 2008 - Gernot Jany Phone: +43 (0)5 0100 - 11903 [email protected] Page 8
Fact Sheet – CEZ – Utility – Czech Republic – October 20, 2008
CEZ Jakub Zidon +420 224 995- 340 [email protected] CEZ
Utility
Key figures overview Financial strength
CZK mn 2007 2008e 2009e 2010e 2007 2008e 2009e 2010e Net sales 174,563.0 191,621.8 201,384.6 205,899.2 ROE (%) 19.73 19.48 15.33 13.52 EBITDA 75,326.0 88,999.6 93,865.1 92,247.7 ROCE (%) 15.15 15.74 15.72 14.74 EBIT 53,203.0 63,971.9 67,802.7 65,101.1 Equity ratio (%) 49.66 69.79 71.82 73.47 EBT 51,151.00 61,971.86 66,398.06 64,051.40 Net debt (CZK mn) 50,244.00 -4,711.34 -27,543.18 -52,983.02 Net profit 41,555.0 47,785.2 51,681.6 50,178.9 Gearing (%) 27.27 -1.44 -7.57 -13.36 EPS (CZK) 72.91 89.65 96.97 94.15 Trading data & Statistics CEPS (CZK) 111.58 136.76 145.86 145.08 Daily averages 5 days 30 days last year BVPS (CZK) 316.24 599.03 666.22 726.04 Volume 3,557,944 2,527,175 1,310,683 Dividend\Share (CZK) 37.01 49.15 53.63 53.84 Trading value (CZK mn) 2900.1 2346.9 1584.9 EV/EBITDA (x) 10.64 4.51 4.04 3.84 P/E (x) 18.68 8.32 7.69 7.92 Company description P/CE (x) 12.21 5.45 5.11 5.14 CEZ is the biggest Czech power producer, distributor, wholesale Dividend yield (%) 2.72 6.59 7.19 7.22 trader and retailer. In 1H 08, it generated roughly 67% of all electricity EBITDA margin (%) 43.15 46.45 46.61 44.80 produced in the CR. The foundations of the present form of CEZ Operating margin (%) 30.48 33.38 33.67 31.62 Group were laid in 2003 when CEZ Power Company merged with Net profit margin (%) 24.50 25.14 25.88 24.61 distribution companies.CEZ Group is also developing its production
Czech Republic sources portfolio - the installed capacity of 12,298MW was increased Shareholders with the purchase of two Polish power plants with total installed Czech ministry of finance 67.6% capacity of 830MW and 1,260MW in the case of Varna PP in 2006.
1,500 8.0 M 1,500 1,400 7.0 M 1,400 1,300 1,300 6.0 M 1,200 1,200 5.0 M 1,100 1,100 4.0 M 1,000 1,000 3.0 M 900 900 2.0 M 800 700 800 1.0 M 600 700 0.0 M 500 17.10.2007 17.11.2007 17.12.2007 17.01.2008 17.02.2008 17.03.2008 17.04.2008 17.05.2008 17.06.2008 17.07.2008 17.08.2008 17.09.2008 17.10.2008 17.10.2007 17.11.2007 17.12.2007 17.01.2008 17.02.2008 17.03.2008 17.04.2008 17.05.2008 17.06.2008 17.07.2008 17.08.2008 17.09.2008 17.10.2008
Volume Price CEZ PX DJ EURO STOXX Utilities
Price performance: 1M 3M 6M 12M Ytd 1M 3M 6M 12M Ytd in EUR -30.8% -47.9% -37.6% -35.6% -42.0% in CZK -28.1% -43.4% -37.3% -41.2% -45.2%
Strengths/Opportunities Weaknesses/Threats - Strong share on local market and rising wholesale prices of power - Auctioning of CO2 permits as of 2013 - Owner of five local distribution companies and expansion in region - Acquisitions in some CEE countries may add higher risk - Low indebtedness, Lower costs of power production compared to - Possible outage of Temelin nuclear power plant peers - Technical limitations at cross-border capacities with Germany - Very high operating margins, Generates huge amount of free cash restricting power exports flow yearly - Czech Green Party’s proposal to preserve coal mining limits and - Owner of coal mines, cheap supply rejection of further nuclear power plants - Rising demand for power in Czech Republic and Western Europe - Mismanagement - some acquisitions might be overpaid for and growth of electricity prices in Europe
Erste Group – Fact Sheet October 20, 2008 - Jakub Zidon Phone: +420 224 995-340 [email protected] Page 9
Fact Sheet – EVN – Utility – Austria – October 20, 2008
EVN Christoph Schultes +43 (0)5 0100 - 16314 [email protected] EVN
Utility
Key figures overview Financial strength
EUR mn 2007 2008e 2009e 2010e 2007 2008e 2009e 2010e Net sales 2,233.1 2,430.6 2,663.5 2,766.5 ROE (%) 8.55 6.70 7.03 7.89 EBITDA 350.7 351.3 379.9 420.1 ROCE (%) 6.50 5.52 5.65 6.27 EBIT 197.3 171.1 190.5 223.3 Equity ratio (%) 48.14 50.52 54.53 57.26 EBT 287.44 249.02 300.27 371.89 Net debt (EUR mn) 790.76 962.16 873.86 749.80 Net profit 227.0 197.7 232.8 289.4 Gearing (%) 26.23 28.53 22.95 18.04 EPS (EUR) 1.39 1.21 1.42 1.77 Trading data & Statistics CEPS (EUR) 2.59 2.56 3.17 3.21 Daily averages 5 days 30 days last year BVPS (EUR) 17.05 19.05 21.48 23.38 Volume 84,886 102,429 74,923 Dividend\Share (EUR) 0.38 0.40 0.41 0.46 Trading value (EUR mn) 1.2 1.5 1.5 EV/EBITDA (x) 13.45 9.43 8.58 7.56 P/E (x) 16.30 10.59 8.99 7.23 Company description P/CE (x) 8.73 4.99 4.04 3.99 EVN is a regional provider of energy and infrastructure services Dividend yield (%) 1.66 3.12 3.17 3.59 based in the federal province of Lower Austria. The company's core EBITDA margin (%) 15.64 14.38 14.20 15.12 business is the distribution of power, natural gas and heating. EVN Operating margin (%) 8.80 7.00 7.12 8.04 has a total generating capacity of some 1,600 MW. In recent years, Net profit margin (%) 11.55 9.36 10.05 11.84 EVN has successfully extended its core business by entering the
Austria water and waste incineration segments. In January 2005 and 2006, Shareholders EVN successfully expanded in the CEE/SEE region. EVN's main Lower Austria 51.0% asset is a 12.5% participation in Verbund. EnBW 35.0%
24 600,000 26 24 22 500,000 22 20 400,000 20 18 18 300,000 16 16 200,000 14 14 100,000 12 10 12 0 8 17.10.2007 17.11.2007 17.12.2007 17.01.2008 17.02.2008 17.03.2008 17.04.2008 17.05.2008 17.06.2008 17.07.2008 17.08.2008 17.09.2008 17.10.2008 17.10.2007 17.11.2007 17.12.2007 17.01.2008 17.02.2008 17.03.2008 17.04.2008 17.05.2008 17.06.2008 17.07.2008 17.08.2008 17.09.2008 17.10.2008
Volume Price EVN ATX DJ EURO STOXX Utilities
Price performance: 1M 3M 6M 12M Ytd in EUR -18.1% -26.8% -37.4% -43.5% -42.2%
Strengths/Opportunities Weaknesses/Threats - Successful expansion in the SEE region - Obligatory 51% stake (fixed by constitutional law) held by Lower - EVN successfully diversified its product portfolio by entering the Austria fails to provide short- or mid-term takeover fantasy water and waste incineration segments - Low free float of less than 14% - EVN holds a 12.5% stake in Verbund which can be seen as hedge - EVN is short on CO2 emission certificates against higher electricity prices (as Verbund benefits from rising - Possible pressure on margins due to mandatory tariffs fixed by the electricity prices) regulatory authorities - Strong development of associates and other investments drives financial result
Erste Group – Fact Sheet October 20, 2008 - Christoph Schultes Phone: +43 (0)5 0100 - 16314 [email protected] Page 10
Fact Sheet – FHB – Banking – Hungary – October 20, 2008
FHB Gernot Jany +43 (0)5 0100 - 11903 [email protected] FHB
Banking
Key figures overview Financial strength
HUF mn 2007 2008e 2009e 2010e 2007 2008e 2009e 2010e Net interest Income 16,602.41 17,156.18 18,336.71 19,665.39 ROE (%) 17.20 19.80 18.11 16.64 Net fees & commissions income1,630.94 1,966.54 2,477.84 2,885.96 ROA (%) 0.92 1.05 1.01 0.97 Total Income 20,247.55 21,296.93 23,598.36 25,603.16 Equity ratio (%) 5.20 5.41 5.69 5.91 EBT 6,540.17 8,835.78 9,406.32 9,927.65 Loans/deposits (%) 15,582.33 13,992.29 12,110.49 10,998.32 Net profit 5,294.16 6,891.91 7,336.93 7,743.57 Loans/assets (%) 90.90 90.70 89.20 88.38 EPS (HUF) 80.21 104.42 111.17 117.33 Trading data & Statistics BVPS (HUF) 487.11 571.32 661.08 755.93 Daily averages 5 days 30 days last year NAV/Share Volume 229,111 107,270 68,637 Dividend\Share (HUF) 0.00 20.96 22.33 23.59 Trading value (HUF mn) 202.1 100.6 95.4 P/E (x) 23.05 7.66 7.20 6.82 P/BV(x) 3.80 1.40 1.21 1.06 Company description P/NAV (x) FHB is the second largest player on the Hungarian mortgage market, Dividend yield (%) 0.00 2.62 2.79 2.95 with some 18% market share. It is a nearly pure mortgage bank, NIM avg. tot. assets (%) 2.88 2.62 2.52 2.45 originating own loans and refinancing other banks, which is a unique Cost/Income ratio (%) 65.97 56.20 57.69 58.57 business model for CEE. Historically, FHB has been benefiting from Risk earnings ratio (%) 2.11 2.87 3.15 3.45 the government subsidy system for residential mortgage lending. Due
Hungary mainly to adverse changes in the subsidy system and increased Shareholders refinancing costs, the profitability (ROE) of FHB declined to 17% in Clearstream 17.8% 2007, from the spectacular 50% seen in 2003. Citibank 17.6% Allianz 9.9% VCP Finanz Holding 9.9%
HSBC 9.5%
2,200 800,000 2,200 2,000 700,000 2,000 1,800 600,000 1,800 1,600 500,000 1,600 1,400 400,000 1,400 1,200 300,000 1,200 1,000 200,000 1,000 800 100,000 800 600 0 600 17.10.2007 17.11.2007 17.12.2007 17.01.2008 17.02.2008 17.03.2008 17.04.2008 17.05.2008 17.06.2008 17.07.2008 17.08.2008 17.09.2008 17.10.2008 17.10.2007 17.11.2007 17.12.2007 17.01.2008 17.02.2008 17.03.2008 17.04.2008 17.05.2008 17.06.2008 17.07.2008 17.08.2008 17.09.2008 17.10.2008
Volume Price FHB BUX DJ EURO STOXX Banks
Price performance: 1M 3M 6M 12M Ytd 1M 3M 6M 12M Ytd in EUR -24.9% -39.1% -40.1% -63.6% -59.1% in HUF -17.9% -29.1% -36.9% -61.2% -56.7%
Strengths/Opportunities Weaknesses/Threats - No. 2 position in Hungarian mortgage market - Strong competition in origination - High efficiency, currently negatively affected by strategy - Declining importance of refinancing function for partner banks implementation costs (trend softened by current liquidity crisis) - Long-term catch-up potential and strong growth rates in Hungarian - Unfavorable changes of subsidy system in 2003 mortgage market - Direct and indirect negative effects from austerity package and - Good quality of loan portfolio growth dent in HU - High dependence on capital markets for refinancing (high loan/deposit ratio) - Potential increase in credit risk, due to rising FX exposure
Erste Group – Fact Sheet October 20, 2008 - Gernot Jany Phone: +43 (0)5 0100 - 11903 [email protected] Page 11
Fact Sheet – Ingra – Construction Services – Croatia – October 20, 2008
Ingra Davor Spoljar +385 (0)62 372 825 [email protected] Ingra
Construction Services Key figures overview Financial strength
HRK mn 2004 2005 2006 2007 2004 2005 2006 2007 Net sales 222.2 317.3 327.7 655.8 ROE (%) 33.27 28.14 18.64 EBITDA 10.4 17.8 29.1 52.0 ROCE (%) 6.05 7.57 7.10 EBIT 6.9 11.5 22.0 49.0 Equity ratio (%) 32.58 22.82 20.58 45.71 EBT 8.28 28.96 49.86 87.82 Net debt (HRK mn) -3.25 12.81 122.75 150.17 Net profit 6.5 25.1 39.0 71.0 Gearing (%) -4.10 11.94 72.12 25.37 EPS (HRK) 1.09 4.19 6.50 11.04 Trading data & Statistics CEPS (HRK) 1.57 5.33 7.69 11.50 Daily averages 5 days 30 days last year BVPS (HRK) 7.34 17.83 28.37 91.99 Volume 41,462 29,320 29,349 Dividend\Share (HRK) 1.27 0.80 1.33 1.67 Trading value (HRK mn) 5.9 4.2 0.6 EV/EBITDA (x) 6.82 9.73 47.46 P/E (x) 4.30 4.10 32.62 Company description P/CE (x) 3.37 3.47 31.30 Ingra offers a wide range of construction activities. Although initially Dividend yield (%) 4.44 5.00 0.46 founded for export activities, the intention of management is to EBITDA margin (%) 4.67 4.89 7.50 7.29 equalize the presence on foreign and domestic markets. In the last Operating margin (%) 3.11 3.16 5.67 6.87 ten years, its presence on the domestic market has expanded, due to Net profit margin (%) 2.95 6.92 10.07 9.96 intensive cycles of construction work motivated by renovation after
Croatia the civil war and highway construction. In recent history, the company Shareholders played a big role in the construction of residential buildings, tourism Oppenheim Igor 10.2% (especially nautical), shipbuilding, civil engineering, construction of Privredna banka Zagreb (custody) 7.1% Tehnika d.d. 6.0% public institutions and road construction.
Allianz ZB Mandatory pension fund 5.0%
450 7,000,000 450 400 6,000,000 400 350 5,000,000 350 300 4,000,000 300 250 3,000,000 250 200 2,000,000 200 150 1,000,000 150 100 0 100 17.10.2007 17.11.2007 17.12.2007 17.01.2008 17.02.2008 17.03.2008 17.04.2008 17.05.2008 17.06.2008 17.07.2008 17.08.2008 17.09.2008 17.10.2008 17.10.2007 17.11.2007 17.12.2007 17.01.2008 17.02.2008 17.03.2008 17.04.2008 17.05.2008 17.06.2008 17.07.2008 17.08.2008 17.09.2008 17.10.2008
Volume Price Ingra CROBEX
Price performance: 1M 3M 6M 12M Ytd 1M 3M 6M 12M Ytd in EUR -10.7% -37.0% -32.7% -66.0% -61.6% in HRK -10.0% -37.5% -33.6% -66.8% -62.5%
Strengths/Opportunities Weaknesses/Threats - EUR 500mn worth of contracts in pipeline - Highly dependent on subcontractors (construction and engineering - More than 30-year presence in Algeria is done by subcontractors) - Strong connections and personal contacts with foreign investors - Possible fines if project deadlines are not reached (especially Zagreb Arena for European handball championship) - Strongly developed know -how - Does not own construction machinery - Capable management - Negative operative cash flow - Highly skilled, educated employees with high level of competence - Financing of high growth
Erste Group – Fact Sheet October 20, 2008 - Davor Spoljar Phone: +385 (0)62 372 825 [email protected] Page 12
Fact Sheet – Komercni banka – Banking – Czech Republic – October 20, 2008
Komercnibanka Guenter Hohberger +43 (0)5 0100 - 17354 [email protected] Komercnibanka
Banking
Key figures overview Financial strength
CZK mn 2007 2008e 2009e 2010e 2007 2008e 2009e 2010e Net interest Income 18,674.00 21,255.65 23,414.69 25,139.94 ROE (%) 22.54 23.95 23.86 23.51 Net fees & commissions income9,283.00 9,751.90 10,393.38 11,191.68 ROA (%) 1.78 1.80 1.80 1.80 Total Income 29,774.00 33,077.45 36,167.55 38,919.21 Equity ratio (%) 7.65 7.62 7.70 7.83 EBT 14,328.00 15,849.20 16,954.01 18,384.03 Loans/deposits (%) 58.10 63.38 68.03 71.81 Net profit 11,188.00 12,477.05 13,677.81 14,816.61 Loans/assets (%) 47.47 51.55 55.33 58.41 EPS (CZK) 294.34 328.26 359.85 389.81 Trading data & Statistics BVPS (CZK) 1,304.77 1,436.07 1,580.01 1,735.93 Daily averages 5 days 30 days last year NAV/Share Volume 224,806 187,445 123,932 Dividend\Share (CZK) 180.00 196.95 215.91 233.89 Trading value (CZK mn) 683.9 673.7 481.8 P/E (x) 14.85 7.66 6.99 6.45 P/BV(x) 3.35 1.75 1.59 1.45 Company description P/NAV (x) Komercni banka offers commercial, retail and investment banking Dividend yield (%) 4.12 7.83 8.58 9.30 services. They comprise commercial, mortgage, consumer and NIM avg. tot. assets (%) 2.96 3.05 3.06 3.03 general purpose cash loans, advice on M&A transactions and Cost/Income ratio (%) 46.33 45.82 45.77 46.09 sponsor credit cards. Komercni is the third largest bank in the Czech Risk earnings ratio (%) 8.84 9.75 11.35 10.33 Republic, with an 18% market share and 1.5mn clients. The
Czech Republic distribution network includes 378 retail branches and 649 ATMs. The Shareholders bank redirected its strategy from corporate to retail, with a particular Société Générale 60.4% focus on mortgages and consumer loans. The retail loan book is Investors Bank & Trust Co. 9.2% growing at rates of 25-30% y/y.
4,600 1,100,000 4,500 4,400 1,000,000 4,200 900,000 4,000 4,000 800,000 3,800 700,000 3,500 3,600 600,000 3,400 500,000 3,000 3,200 400,000 2,500 3,000 300,000 2,800 200,000 2,000 2,600 100,000 2,400 0 1,500 17.10.2007 17.11.2007 17.12.2007 17.01.2008 17.02.2008 17.03.2008 17.04.2008 17.05.2008 17.06.2008 17.07.2008 17.08.2008 17.09.2008 17.10.2008 17.10.2007 17.11.2007 17.12.2007 17.01.2008 17.02.2008 17.03.2008 17.04.2008 17.05.2008 17.06.2008 17.07.2008 17.08.2008 17.09.2008 17.10.2008
Volume Price Komercni banka PX DJ EURO STOXX Banks
Price performance: 1M 3M 6M 12M Ytd 1M 3M 6M 12M Ytd in EUR -30.5% -39.4% -35.6% -36.4% -39.1% in CZK -27.7% -34.2% -35.2% -41.8% -42.4%
Strengths/Opportunities Weaknesses/Threats - Strengthening position in fast growing retail market - Still low interest environment with thin spreads of EURIBOR - Strong foothold in mortgage market (acquisition of MPSS) - Competition for big-ticket lending squeezes margins - Strong franchise among Czech customers (1.5mn clients at KB - Flat fee & commission income dynamics suffer from decreasing bank alone) transaction fees - Relaxed loan/deposit ratio of 59% - Accelerating operating costs due to marketing and inflation effects - Further improving CIR, despite low level (45.7%) - Increasing cost of risk, due to higher risk profile (strongly growing - Improved asset quality: standard loans account for 90% of loan retail lending) portfolio
Erste Group – Fact Sheet October 20, 2008 - Guenter Hohberger Phone: +43 (0)5 0100 - 17354 [email protected] Page 13
Fact Sheet – Magyar Telekom – Integrated Telcoms – Hungary – October 20, 2008
Magyar Telekom Thomas Unger +43 (0)5 0100- 17344 [email protected] Magyar Telekom
Integrated Telcoms
Key figures overview Financial strength
HUF mn 2007 2008e 2009e 2010e 2007 2008e 2009e 2010e Net sales 676,661.0 680,810.2 684,370.1 688,569.5 ROE (%) 11.56 15.55 16.28 17.20 EBITDA 243,907.0 267,324.1 267,588.7 268,542.1 ROCE (%) 11.14 13.55 13.84 14.27 EBIT 128,312.0 154,738.6 159,027.8 162,328.6 Equity ratio (%) 51.22 52.12 52.96 53.56 EBT 99,277.00 123,705.19 129,592.95 134,190.77 Net debt (HUF mn) 261,440.00 246,459.49 231,549.44 220,519.44 Net profit 60,155.0 79,326.0 81,550.3 84,443.6 Gearing (%) 44.94 42.10 39.21 37.14 EPS (HUF) 57.82 76.25 78.39 81.17 Trading data & Statistics CEPS (HUF) 176.91 184.47 182.74 183.27 Daily averages 5 days 30 days last year BVPS (HUF) 495.04 485.66 477.32 466.67 Volume 3,520,018 2,840,614 1,862,396 Dividend\Share (HUF) 74.00 75.00 80.00 85.00 Trading value (HUF mn) 2270.8 2079.2 1538.4 EV/EBITDA (x) 5.18 3.55 3.55 3.54 P/E (x) 15.56 7.86 7.64 7.38 Company description P/CE (x) 5.09 3.25 3.28 3.27 Magyar Telekom provides telecommunication services in Hungary. Dividend yield (%) 8.22 12.52 13.36 14.19 The firm offers local and long-distance, mobile, data transmission and EBITDA margin (%) 36.05 39.27 39.10 39.00 Internet access services. It owns 100% of its mobile subsidiary T- Operating margin (%) 18.96 22.73 23.24 23.57 Mobile Hungary. The company is the market leader in both fixed and Net profit margin (%) 10.80 13.63 13.94 14.34 mobile services in Hungary. International activities include Maktel, the
Hungary incumbent and leading mobile service provider in Macedonia and Shareholders Telekom Montenegro, the incumbent and leading mobile service Deutsche Telekom 59.2% provider in Montenegro. The stock is listed in Budapest and New York Stock Exchange (ADR) since November 14, 1997.
950 16.0 M 1,000 900 14.0 M 900 850 12.0 M 800 10.0 M 800 750 8.0 M 700 700 6.0 M 600 650 4.0 M 600 2.0 M 500
550 0.0 M 400 17.10.2007 17.11.2007 17.12.2007 17.01.2008 17.02.2008 17.03.2008 17.04.2008 17.05.2008 17.06.2008 17.07.2008 17.08.2008 17.09.2008 17.10.2008 17.10.2007 17.11.2007 17.12.2007 17.01.2008 17.02.2008 17.03.2008 17.04.2008 17.05.2008 17.06.2008 17.07.2008 17.08.2008 17.09.2008 17.10.2008
Volume Price Magyar Telekom BUX DJ EURO STOXX Telecommunications
Price performance: 1M 3M 6M 12M Ytd 1M 3M 6M 12M Ytd in EUR -23.9% -33.2% -32.2% -40.6% -37.0% in HUF -16.8% -22.3% -28.4% -36.7% -33.4%
Strengths/Opportunities Weaknesses/Threats - Magyar Telekom should maintain and consolidate its industry- - MTel’s fixed-line revenue erosion gathered pace as cable operators leading position in fixed and mobile segments are becoming more popular - Generous cash distribution policy as defined by gearing ratio target - Saturated mobile market will challenge MTel to generate top line of between 30% and 40% growth - Attractive valuation compared to peers in terms of EV/EBITDA and - Lingering effect of Hungarian austerity package, reducing P/E purchasing power, increasing taxes and costs, as well as slowing - Successful acquisition of Telecom Montenegro and Telecom demand Macedonia, looking for further opportunities in SE Europe - Still facing ongoing investigation into its contracts - Strong cash flow generating ability, positively influenced by capex - Fixed-line competition set to increase further (UPC, HTCC/Invitel, control and cost cutting efforts etc.) - New wireless entrants in Montenegro and Macedonia will make competition fiercer
Erste Group – Fact Sheet October 20, 2008 - Thomas Unger Phone: +43 (0)5 0100 - 17344 [email protected] Page 14
Fact Sheet – MOL – Oil & Gas – Hungary – October 20, 2008
MOL Jakub Zidon +420 224 995- 340 [email protected] MOL
Oil & Gas
Key figures overview Financial strength
HUF mn 2007 2008e 2009e 2010e 2007 2008e 2009e 2010e Net sales 2,593,951.0 3,231,712.2 3,143,264.2 3,058,946.1 ROE (%) 27.43 29.08 23.05 20.60 EBITDA 496,043.0 456,471.9 470,977.8 485,215.9 ROCE (%) 18.40 14.77 14.06 13.42 EBIT 355,505.0 298,729.9 302,533.3 309,658.3 Equity ratio (%) 37.88 41.14 44.17 47.12 EBT 344,256.00 321,226.89 292,388.82 298,466.60 Net debt (HUF mn) 455,251.00 279,104.31 388,560.79 244,373.43 Net profit 257,796.0 247,747.3 224,713.5 227,852.9 Gearing (%) 49.64 26.61 32.72 18.27 EPS (HUF) 3,001.73 2,870.46 2,590.77 2,614.10 Trading data & Statistics CEPS (HUF) 4,660.41 4,721.45 4,553.72 4,646.97 Daily averages 5 days 30 days last year BVPS (HUF) 9,223.80 10,560.57 11,966.81 13,473.20 Volume 530,978 432,652 229,805 Dividend\Share (HUF) 883.00 400.00 400.00 400.00 Trading value (HUF mn) 6363.9 5920.6 1412.6 EV/EBITDA (x) 5.41 2.99 3.17 2.82 P/E (x) 8.16 3.83 4.25 4.21 Company description P/CE (x) 5.26 2.33 2.42 2.37 MOL is an integrated oil and gas company operating primarily in Dividend yield (%) 3.60 3.64 3.64 3.64 Hungary, Slovakia and Croatia and to a lesser extent in the Czech EBITDA margin (%) 18.51 14.12 14.98 15.86 Republic, Austria and Romania. The company's proven reserves total Operating margin (%) 13.27 9.24 9.62 10.12 roughly 300mn boe. MOL's downstream business comprises two Net profit margin (%) 9.79 8.05 7.53 7.90 major refineries: Duna, with 8.1mn tons capacity and Bratislava, with
Hungary 6.0mn tons, while complexity is above European average (10.6 and Shareholders 12.3, respectively). MOL owns a significant gas transmission OMV Group 20.2% business as well. MOL owns 25% in Croatian oil company INA and OTP Bank 9.1% Oman Oil Company 8.0% Hungarian flagship petrochemical company TVK. BNP Paribas 7.0%
CEZ 7.0%
28,000 1,800,000 30,000 26,000 1,600,000 28,000 24,000 1,400,000 26,000 22,000 1,200,000 24,000 22,000 20,000 1,000,000 20,000 18,000 800,000 18,000 16,000 600,000 16,000 14,000 400,000 14,000 12,000 200,000 12,000 10,000 0 10,000 17.10.2007 17.11.2007 17.12.2007 17.01.2008 17.02.2008 17.03.2008 17.04.2008 17.05.2008 17.06.2008 17.07.2008 17.08.2008 17.09.2008 17.10.2008 17.10.2007 17.11.2007 17.12.2007 17.01.2008 17.02.2008 17.03.2008 17.04.2008 17.05.2008 17.06.2008 17.07.2008 17.08.2008 17.09.2008 17.10.2008
Volume Price MOL BUX DJ EURO STOXX Oil & Gas
Price performance: 1M 3M 6M 12M Ytd 1M 3M 6M 12M Ytd in EUR -31.1% -49.7% -53.3% -62.9% -57.5% in HUF -24.7% -41.5% -50.7% -60.4% -55.1%
Strengths/Opportunities Weaknesses/Threats - Very well vertically integrated, covering all segments from - Vulnerable to a decrease in refining margins and weak USD exploration to retail - More exposure to Russian and CIS upstream could increase risk - Experienced, strong management team - Political relationships may hamper efforts to expand in some - Joint venture in Russia with Russneft, in Croatia with INA neighboring countries - Sale of natural gas business to strategic investors - INA: further acquisiton to reach majority - New strategy concentrates on upstream activity (mainly gas) and finishing downstream acquisitions (TVK()
Erste Group – Fact Sheet October 20, 2008 - Jakub Zidon Phone: +420 224 995-340 [email protected] Page 15
Fact Sheet – OMV – Oil & Gas – Austria – October 20, 2008
OMV Jakub Zidon +420 224 995- 340 [email protected] OMV
Oil & Gas
Key figures overview Financial strength
EUR mn 2007 2008e 2009e 2010e 2007 2008e 2009e 2010e Net sales 20,042.0 26,503.0 25,378.6 24,880.6 ROE (%) 20.89 25.23 21.73 19.26 EBITDA 3,161.9 4,639.9 5,035.1 5,326.3 ROCE (%) 13.35 15.21 14.40 13.47 EBIT 2,184.5 3,328.3 3,481.2 3,567.8 Equity ratio (%) 48.66 48.73 51.77 53.83 EBT 2,412.12 3,489.44 3,556.98 3,616.20 Net debt (EUR mn) 3,560.94 2,833.77 2,852.49 3,485.32 Net profit 1,578.8 2,270.1 2,305.6 2,334.2 Gearing (%) 34.44 23.45 20.84 22.73 EPS (EUR) 5.31 7.62 7.73 7.80 Trading data & Statistics CEPS (EUR) 8.87 15.30 12.84 12.73 Daily averages 5 days 30 days last year BVPS (EUR) 27.30 33.12 38.11 43.13 Volume 1,811,150 1,425,098 748,627 Dividend\Share (EUR) 1.26 1.85 2.71 2.70 Trading value (EUR mn) 48.5 41.3 33.3 EV/EBITDA (x) 7.05 2.57 2.39 2.40 P/E (x) 10.45 3.02 2.97 2.95 Company description P/CE (x) 6.25 1.50 1.79 1.81 OMV is one of the leading integrated oil and gas groups in Central Dividend yield (%) 2.27 8.02 11.79 11.74 and Eastern Europe, with a 51% share in Romanian oil and gas EBITDA margin (%) 15.78 17.51 19.84 21.41 company Petrom, OMV has captive crude oil and gas production of Operating margin (%) 10.90 12.56 13.72 14.34 approximately 350kboe per day (mostly in Romania, Austria and Net profit margin (%) 9.19 9.61 10.23 10.61 Libya), four fully owned refineries and a 45% stake in the refinery
Austria network Bayernoil. The market share of the group in the R&M Shareholders business segment in the Danube region is now approximately 18%. Österr. Industrieholding AG 31.5% OMV holds a 20.2% stake in Hungarian oil and gas company MOL, International Petroleum Investment Compa 17.6% 36.0% in petrochemical company Borealis and 36.4% in Petrol Ofisi.
60 4,000,000 60 55 3,500,000 55 50 3,000,000 50 45 2,500,000 45 40 2,000,000 40 35 1,500,000 35 30 1,000,000 30 25 500,000 25 20 0 20 17.10.2007 17.11.2007 17.12.2007 17.01.2008 17.02.2008 17.03.2008 17.04.2008 17.05.2008 17.06.2008 17.07.2008 17.08.2008 17.09.2008 17.10.2008 17.10.2007 17.11.2007 17.12.2007 17.01.2008 17.02.2008 17.03.2008 17.04.2008 17.05.2008 17.06.2008 17.07.2008 17.08.2008 17.09.2008 17.10.2008
Volume Price OMV ATX DJ EURO STOXX Oil & Gas
Price performance: 1M 3M 6M 12M Ytd in EUR -31.7% -47.1% -51.0% -54.0% -58.5%
Strengths/Opportunities Weaknesses/Threats - Strong CEE exposure and know -how - Strong decline in oil price w ill affect E&P result - Acquisition of 51% of Petrom group is attractive chance to become - Natural gas prices in Romania may not increase in future clear number one player in target region - Petrol Ofisi increases exposure to Turkey’s macroeconomic risk - CEE offers impressive growth potential, supported by EU - Restructuring in Romania is still major challenge for OMV enlargement - High oil price level, strong refining margins and Petrom restructuring as earnings drivers, attractive oil reserves - OMV entered into the turkish market by acquiring onethird of Petrol Ofisi
Erste Group – Fact Sheet October 20, 2008 - Jakub Zidon Phone: +420 224 995-340 [email protected] Page 16
Fact Sheet – OTP – Banking – Hungary – October 20, 2008
OTP Gernot Jany +43 (0)5 0100 - 11903 [email protected] OTP
Banking
Key figures overview Financial strength
HUF mn 2007 2008e 2009e 2010e 2007 2008e 2009e 2010e Net interest Income 431,692.00 468,961.40 535,176.77 599,812.23 ROE (%) 24.86 36.05 20.82 20.63 Net fees & commissions income152,885.00 177,694.99 212,950.88 254,146.72 ROA (%) 2.68 3.91 2.27 2.18 Total Income 654,879.00 716,838.02 829,987.06 948,216.95 Equity ratio (%) 10.58 11.17 10.77 10.52 EBT 248,952.00 436,552.83 309,050.64 355,601.05 Loans/deposits (%) 114.34 117.01 121.94 126.51 Net profit 208,208.00 365,028.02 256,101.61 294,676.63 Loans/assets (%) 68.08 69.21 70.44 71.68 EPS (HUF) 795.60 1,411.18 990.07 1,139.20 Trading data & Statistics BVPS (HUF) 3,441.56 4,387.90 5,122.44 5,919.88 Daily averages 5 days 30 days last year NAV/Share Volume 6,225,154 4,167,956 1,793,489 Dividend\Share (HUF) 0.00 233.15 297.02 341.76 Trading value (HUF mn) 22582.6 19585.2 12323.1 P/E (x) 11.05 2.23 3.18 2.77 P/BV(x) 2.55 0.72 0.61 0.53 Company description P/NAV (x) OTP is a pure CEE player, focusing on retail and commercial Dividend yield (%) 0.00 7.40 9.43 10.85 banking. It is the only CEE-based bank with a regional expansion NIM avg. tot. assets (%) 5.55 5.02 4.73 4.44 strategy. Including its home market Hungary, where (with a 23% Cost/Income ratio (%) 53.10 52.88 53.67 53.80 market share in terms of total assets) it has a very strong position, it Risk earnings ratio (%) 13.48 13.91 14.11 13.75 is active in nine countries. OTP is also No. 1 in Montenegro (CKB)
Hungary and No. 2 in Bulgaria (DSK), with respective market shares of 34% Shareholders and 12%. It is also present in Slovakia, Romania, Serbia, Croatia, Bank of New York 12.0% Ukraine and Russia. Besides the 8% stake held by Groupama, OTP Julius Baer 10.2% Medget (Ramikulov) 9.8% has no strategic investor.
Treasury shares 4.5%
10,000 14.0 M 10,000 9,000 12.0 M 9,000 8,000 10.0 M 8,000 7,000 8.0 M 7,000 6,000 6.0 M 6,000 5,000 4.0 M 5,000 4,000 2.0 M 4,000 3,000 0.0 M 3,000 17.10.2007 17.11.2007 17.12.2007 17.01.2008 17.02.2008 17.03.2008 17.04.2008 17.05.2008 17.06.2008 17.07.2008 17.08.2008 17.09.2008 17.10.2008 17.10.2007 17.11.2007 17.12.2007 17.01.2008 17.02.2008 17.03.2008 17.04.2008 17.05.2008 17.06.2008 17.07.2008 17.08.2008 17.09.2008 17.10.2008
Volume Price OTP BUX DJ EURO STOXX Banks
Price performance: 1M 3M 6M 12M Ytd 1M 3M 6M 12M Ytd in EUR -53.0% -59.2% -56.9% -68.7% -66.1% in HUF -48.6% -52.5% -54.5% -66.6% -64.2%
Strengths/Opportunities Weaknesses/Threats - High profitability - Increasing competition in CEE puts pressure on margins - Only CEE-based bank with clear regional expansion focus - Re-pricing and refinancing of subsidized mortgage loans in HU - Strong position in Hungary (No.1), Bulgaria (No. 2) and Montenegro - Direct and indirect negative effects from austerity package and (No. 1) growth dent in HU - Presence in fast growing markets in SEE and CIS - Potential increase in credit risk, due to rising FX exposure in HU - Good quality of loan portfolio and RO - High catch-up potential and growth rates in banking markets in - Integration risk, due to numerous acquisitions in 2006 which OTP operates
Erste Group – Fact Sheet October 20, 2008 - Gernot Jany Phone: +43 (0)5 0100 - 11903 [email protected] Page 17
Fact Sheet – PKO BP – Banking – Poland – October 20, 2008
PKO BP Guenter Hohberger +43 (0)5 0100 - 17354 [email protected] PKO BP
Banking
Key figures overview Financial strength
PLN mn 2007 2008e 2009e 2010e 2007 2008e 2009e 2010e Net interest Income 4,643.73 5,754.18 6,653.02 7,557.76 ROE (%) 26.40 28.66 29.30 28.35 Net fees & commissions income2,335.20 2,651.25 3,166.39 3,669.77 ROA (%) 2.79 3.17 3.26 3.26 Total Income 8,108.73 9,768.24 11,332.02 12,837.61 Equity ratio (%) 11.03 10.93 11.14 11.59 EBT 3,609.23 4,646.94 5,655.86 6,519.90 Loans/deposits (%) 90.97 98.49 106.67 114.50 Net profit 2,903.63 3,738.02 4,549.61 5,234.02 Loans/assets (%) 72.57 75.30 78.06 80.12 EPS (PLN) 2.90 3.74 4.55 5.23 Trading data & Statistics BVPS (PLN) 11.92 14.16 16.89 20.03 Daily averages 5 days 30 days last year NAV/Share Volume 4,767,088 3,207,730 1,769,048 Dividend\Share (PLN) 1.09 1.50 1.82 2.09 Trading value (PLN mn) 153.4 121.9 81.2 P/E (x) 18.12 7.65 6.29 5.46 P/BV(x) 4.41 2.02 1.69 1.43 Company description P/NAV (x) PKO BP is a universal commercial bank offering services to retail and Dividend yield (%) 2.07 5.23 6.36 7.32 corporate clients. The bank was established in 1919 as a state-owned NIM avg. tot. assets (%) 4.41 4.82 4.71 4.63 company and was floated on the Warsaw Stock Exchange on Cost/Income ratio (%) 54.79 49.26 46.26 44.69 November 10, 2004. After the IPO, the state Treasury still holds 52% Risk earnings ratio (%) 1.22 5.38 6.53 7.69 of the shares. After the integration of BPH-285 into Pekao, PKO BP is
Poland currently the second largest player on the Polish market, with a Shareholders 12.6% market share in terms of total assets. PKO BP’s strong State Treasury 51.5% position in retail banking can be seen as its greatest asset. Meanwhile, PKO BP has a No. 3 position in mutual funds.
60 14.0 M 60 55 12.0 M 55 50 10.0 M 50 45 45 8.0 M 40 40 6.0 M 35 35 4.0 M 30 30 2.0 M 25 25 0.0 M 20 17.10.2007 17.11.2007 17.12.2007 17.01.2008 17.02.2008 17.03.2008 17.04.2008 17.05.2008 17.06.2008 17.07.2008 17.08.2008 17.09.2008 17.10.2008 17.10.2007 17.11.2007 17.12.2007 17.01.2008 17.02.2008 17.03.2008 17.04.2008 17.05.2008 17.06.2008 17.07.2008 17.08.2008 17.09.2008 17.10.2008
Volume Price PKO BP WIG 20 DJ EURO STOXX Banks
Price performance: 1M 3M 6M 12M Ytd 1M 3M 6M 12M Ytd in EUR -36.1% -42.3% -38.0% -45.8% -45.0% in PLN -32.3% -36.4% -35.5% -48.0% -45.6%
Strengths/Opportunities Weaknesses/Threats - Strong position in retail banking supported by large branch network - High staffing level (1,257 outlets) - Natural fluctuation policy and upgrade to average salary levels - Among most recognized banks in Poland (81% brand recognition) slowly increases personnel costs - Loan quality better than at many other Polish banks - Management board replacements - Strong growth of consumer loans, mortgage loans and credit cards - CIR still above Polish peers - CIR improved to 53% (59%) - Uncertainty about reduction of the Treasury’s stake - Good funding quality (loan/deposit ratio 88%)
Erste Group – Fact Sheet October 20, 2008 - Guenter Hohberger Phone: +43 (0)5 0100 - 17354 [email protected] Page 18
Fact Sheet – Podravka – Food & Beverage – Croatia – October 20, 2008
Podravka Vladimira Urbankova +43 50100 17343 [email protected] Podravka
Food & Beverage
Key figures overview Financial strength
HRK mn 2007 2008e 2009e 2010e 2007 2008e 2009e 2010e Net sales 3,431.8 3,573.4 3,749.8 3,937.5 ROE (%) 0.99 1.62 2.82 3.42 EBITDA 255.8 317.7 367.3 395.6 ROCE (%) 1.79 2.80 3.67 4.08 EBIT 92.3 107.7 147.5 165.7 Equity ratio (%) 50.30 47.03 46.30 45.77 EBT 33.92 39.72 70.25 86.70 Net debt (HRK mn) 924.02 1,142.64 1,139.55 1,108.92 Net profit 18.3 31.8 56.2 69.4 Gearing (%) 47.51 57.80 56.81 54.14 EPS (HRK) 3.38 5.86 10.37 12.80 Trading data & Statistics CEPS (HRK) 33.55 44.59 50.93 55.23 Daily averages 5 days 30 days last year BVPS (HRK) 358.85 364.71 370.10 377.90 Volume 10,157 9,220 4,210 Dividend\Share (HRK) 0.00 5.00 5.00 6.00 Trading value (HRK mn) 3.1 3.0 1.7 EV/EBITDA (x) 14.42 8.63 7.46 6.84 P/E (x) 150.75 50.32 28.45 23.05 Company description P/CE (x) 15.20 6.62 5.79 5.34 Podravka remains one of the biggest CEE food sector companies. Dividend yield (%) 0.00 1.69 1.69 2.03 Podravka's product portfolio is much wider than those of its peers, EBITDA margin (%) 7.45 8.89 9.80 10.05 including pharmaceuticals, manufactured at 100% subsidiary Belupo, Operating margin (%) 2.69 3.02 3.93 4.21 the second largest Croatian pharmaceutical company. Podravka's Net profit margin (%) 0.53 0.89 1.50 1.76 flagship product is branded seasoning Vegeta. In 2007, seasoning
Croatia sales accounted for 19.4% of the group's total. Podravka remains one Shareholders of the investable companies in Zagreb, and reappearing rumors of a FIMA 10.6% possible takeover linked to the privatization of the state's remaining CPF /CPII 10.6% stake (26.4%) has kept interest high. CPF 9.8%
550 60,000 600 550 500 50,000 500 450 40,000 450 400 30,000 400
350 20,000 350 300 300 10,000 250 250 0 200 17.10.2007 17.11.2007 17.12.2007 17.01.2008 17.02.2008 17.03.2008 17.04.2008 17.05.2008 17.06.2008 17.07.2008 17.08.2008 17.09.2008 17.10.2008 17.10.2007 17.11.2007 17.12.2007 17.01.2008 17.02.2008 17.03.2008 17.04.2008 17.05.2008 17.06.2008 17.07.2008 17.08.2008 17.09.2008 17.10.2008
Volume Price Podravka CROBEX DJ EURO STOXX Food & Beverage
Price performance: 1M 3M 6M 12M Ytd 1M 3M 6M 12M Ytd in EUR -19.8% -18.3% -20.3% -43.6% -40.8% in HRK -19.2% -19.0% -21.3% -44.9% -42.2%
Strengths/Opportunities Weaknesses/Threats - Traditionally solid position in CEE markets, with high level of brand - Profitability still largely reliant on contribution from pharmaceutical awareness of Podravka’s products, further solidified recently by arm, which brought in 17.9% of group’s sales revenues and all of acquisitions of brands (Warzywko, Perfecta, Lero, EVA) group operating profit in 2007 - Strong position, namely in former Yugoslav markets, makes - Competitive pressures are increasing on regional markets, with big Podravka partner of choice for cooperation retail chains dictating pricing policies of food producers, including - Further streamlining of business portfolio, including staff cuts and Podravka sharper focus on profitability in core food operations, promises to - Terminating distribution contract with Nestle resulted in slower enhance competitiveness in future sales tempo on SEE markets
Erste Group – Fact Sheet October 20, 2008 - Vladimira Urbankova Phone: +43 50100 17343 [email protected] Page 19
Fact Sheet – STRABAG – Construction Services – Austria – October 20, 2008
STRABAG Franz Hoerl +43 (0)5 0100- 18506 [email protected] STRABAG
Construction Services Key figures overview Financial strength
EUR mn 2007 2008e 2009e 2010e 2007 2008e 2009e 2010e Net sales 9,878.6 11,458.6 12,854.5 14,386.4 ROE (%) 9.13 8.66 9.62 10.47 EBITDA 595.9 778.5 933.5 1,039.2 ROCE (%) 10.37 9.89 9.36 9.95 EBIT 312.4 411.4 501.2 578.4 Equity ratio (%) 40.00 36.10 36.69 36.83 EBT 276.26 404.76 473.29 548.06 Net debt (EUR mn) -795.17 277.23 432.00 384.35 Net profit 170.2 257.0 305.3 356.2 Gearing (%) -25.68 8.30 11.98 9.82 EPS (EUR) 2.05 2.25 2.68 3.12 Trading data & Statistics CEPS (EUR) 5.59 5.57 6.59 7.29 Daily averages 5 days 30 days last year BVPS (EUR) 25.18 26.88 28.76 30.94 Volume 254,716 341,108 236,471 Dividend\Share (EUR) 0.55 0.80 0.95 1.10 Trading value (EUR mn) 4.8 9.1 10.4 EV/EBITDA (x) 8.37 3.19 2.88 2.60 P/E (x) 23.73 7.50 6.31 5.41 Company description P/CE (x) 8.71 3.03 2.56 2.32 STRABAG is the leading construction company in Germany, Austria Dividend yield (%) 1.13 4.74 5.61 6.51 and CEE combined. It has three business segments - Building EBITDA margin (%) 6.11 6.75 7.22 7.18 Construction & Civil Engineering (50%), Transportation Infrastructures Operating margin (%) 3.20 3.57 3.88 4.00 (43%) and Special Divisions & Concessions (7%). The goal is to Net profit margin (%) 2.13 2.67 2.76 2.86 increase the CEE share in total output to 50% and participate in the
Austria expected strong growth rates in CEE at above average margins. Shareholders Based on a record order backlog (>1 year's output) we expect double Haselsteiner Group 25.0% digit annual growth and a slight recovery of margins in Germany. Rasperia Trading 25.0%
Raiffeisen/Uniqa 25.0%
55 8.0 M 55 50 7.0 M 50 45 6.0 M 45 40 5.0 M 40 35 4.0 M 35 30 3.0 M 30 25 2.0 M 25 20 1.0 M 20 15 0.0 M 15 19.10.2007 19.11.2007 19.12.2007 19.01.2008 19.02.2008 19.03.2008 19.04.2008 19.05.2008 19.06.2008 19.07.2008 19.08.2008 19.09.2008 19.10.2007 19.11.2007 19.12.2007 19.01.2008 19.02.2008 19.03.2008 19.04.2008 19.05.2008 19.06.2008 19.07.2008 19.08.2008 19.09.2008
Volume Price STRABAG ATX DJ EURO STOXX Construction & Material
Price performance: 1M 3M 6M 12M Ytd in EUR -49.9% -61.0% -59.2% -66.1% -65.3%
Strengths/Opportunities Weaknesses/Threats - Growth course in CEE and market segments with promising outlook - Cyclical and capital-intensive industry (e.g. PPP, railways) - Rising raw material costs - Little exposure to low -margin residential construction - Intense competition might pressure margins - The entry of strategic shareholder Deripaska with a 25% stake - General performance risks in construction supports STRABAG’s accelerated growth on the Russian market (already > EUR 2bn order backlog), particularly in the Sochi region, - Seasonality in revenues and earnings where the Olympic Winter Games 2014 will take place. - Below -average profitability in STRABAG’s biggest market Germany - Extensive own resource base - Infrastructure investments are dominated by public funding including Cohesion Fund flows especially in CEE, which should make them somewhat more resilient in a downturn.
Erste Group – Fact Sheet October 20, 2008 - Franz Hoerl Phone: +43 (0)5 0100 - 18506 [email protected] Page 20
Fact Sheet – Telekom Austria – Integrated Telcoms – Austria – October 20, 2008
Telekom Austria Thomas Unger +43 (0)5 0100- 17344 [email protected] Telekom Austria
Integrated Telcoms
Key figures overview Financial strength
EUR mn 2007 2008e 2009e 2010e 2007 2008e 2009e 2010e Net sales 4,919.0 5,166.0 5,292.0 5,411.7 ROE (%) 18.28 16.28 18.03 20.24 EBITDA 1,854.9 1,918.2 1,947.5 1,987.7 ROCE (%) 8.94 8.08 9.13 9.84 EBIT 761.4 755.4 793.1 840.7 Equity ratio (%) 28.49 30.67 31.12 32.28 EBT 607.83 544.37 598.33 663.53 Net debt (EUR mn) 4,440.68 3,917.73 3,610.43 3,267.37 Net profit 492.5 424.6 472.7 524.2 Gearing (%) 173.11 147.77 139.28 126.23 EPS (EUR) 1.09 0.96 1.08 1.23 Trading data & Statistics CEPS (EUR) 3.53 3.61 3.73 3.92 Daily averages 5 days 30 days last year BVPS (EUR) 5.58 5.76 5.64 5.63 Volume 1,716,530 1,754,311 1,573,210 Dividend\Share (EUR) 0.75 0.75 0.75 0.80 Trading value (EUR mn) 17.6 20.9 24.7 EV/EBITDA (x) 7.11 4.48 4.26 4.00 P/E (x) 17.45 10.60 9.42 8.30 Company description P/CE (x) 5.38 2.82 2.73 2.60 With revenues of about EUR 4.9bn and 17,628 employees at the end Dividend yield (%) 3.94 7.37 7.37 7.83 of 2007, Telekom Austria (TA) is the largest telecommunications EBITDA margin (%) 37.71 37.13 36.80 36.73 company in Austria and has been listed on the Vienna Stock Operating margin (%) 15.48 14.62 14.99 15.54 Exchange since November 2000. The wireline segment comprises Net profit margin (%) 10.01 8.22 8.93 9.69 the fixed-line data, wholesale and internet activities. TA‘s wireless
Austria segment encompasses mobilkom austria, the Austrian market leader, Shareholders as well as MDC in Belarus, VIPnet in Croatia, Si.mobil in Slovenia ÖIAG 27.4% and MobilTel in Bulgaria. TA started wireless operations in Macedonia and Serbia in 2H 2007. TA intends to expand (acquisitions) in SEE.
22 14.0 M 22 20 12.0 M 20 18 10.0 M 18 16 16 8.0 M 14 14 6.0 M 12 12 4.0 M 10 10 2.0 M 8 8 0.0 M 6 17.10.2007 17.11.2007 17.12.2007 17.01.2008 17.02.2008 17.03.2008 17.04.2008 17.05.2008 17.06.2008 17.07.2008 17.08.2008 17.09.2008 17.10.2008 17.10.2007 17.11.2007 17.12.2007 17.01.2008 17.02.2008 17.03.2008 17.04.2008 17.05.2008 17.06.2008 17.07.2008 17.08.2008 17.09.2008 17.10.2008
Volume Price Telekom Austria ATX DJ EURO STOXX Telecommunications
Price performance: 1M 3M 6M 12M Ytd in EUR -23.2% -22.6% -31.0% -45.7% -46.5%
Strengths/Opportunities Weaknesses/Threats - TA successfully acquired highly profitable leading Bulgarian mobile - Higher depreciations and financing costs due to MDC acquisition operator MobilTel and Belarusian mobile operator MDC, boosting top and share buyback to lead to profit decline in 2008 and bottom lines - Highly competitive domestic wireless business with four operators, - Strong wireless exposure (>50% of TA group revenues - above falling prices and lower roaming tariffs European average) - Lower fixed market volumes and average prices, due to mobile - International mobile business provides revenue and earnings migration, competition and local loop unbundling, lead to decline in growth traditional voice revenues - Payout of 65% plus up to EUR 2.65bn share buyback (if no - Start-up costs in Serbia and Macedonia will affect profitability in the acquisitions) medium term - Interest in BH Telecom, Cosmofon in Macedonia - Employs around 6,900 civil servants or 60% of employees - Reduction of civil servants will boost profitability, its realisation is nevertheles uncertain
Erste Group – Fact Sheet October 20, 2008 - Thomas Unger Phone: +43 (0)5 0100 - 17344 [email protected] Page 21
Fact Sheet – Telefonica O2 CR – Integrated Telcoms – Czech Republic – October 20, 2008
Telefonica O2 CR Thomas Unger +43 (0)5 0100- 17344 [email protected] Telefonica O2 CR
Integrated Telcoms
Key figures overview Financial strength
CZK mn 2007 2008e 2009e 2010e 2007 2008e 2009e 2010e Net sales 63,033.0 64,417.8 66,065.3 67,544.4 ROE (%) 12.13 15.26 17.06 19.44 EBITDA 28,033.0 28,757.5 28,968.2 29,563.9 ROCE (%) 11.23 14.29 16.04 18.40 EBIT 13,598.0 15,610.3 16,491.5 17,919.6 Equity ratio (%) 72.91 72.10 71.59 71.19 EBT 13,510.00 15,629.08 16,550.59 18,022.32 Net debt (CZK mn) -307.00 -963.44 -2,098.90 -2,901.94 Net profit 10,386.0 12,347.0 13,240.5 14,598.1 Gearing (%) -0.37 -1.22 -2.76 -3.92 EPS (CZK) 32.25 38.33 41.11 45.32 Trading data & Statistics CEPS (CZK) 72.85 79.56 80.33 81.91 Daily averages 5 days 30 days last year BVPS (CZK) 257.05 245.38 236.49 229.81 Volume 1,651,926 1,339,305 707,505 Dividend\Share (CZK) 50.00 50.00 52.00 52.00 Trading value (CZK mn) 642.9 528.5 347.5 EV/EBITDA (x) 6.25 4.06 3.99 3.88 P/E (x) 16.90 9.53 8.88 8.06 Company description P/CE (x) 7.48 4.59 4.55 4.46 Telefónica O2 Czech Republic is an integrated operator formed on Dividend yield (%) 9.18 13.69 14.24 14.24 July 1, 2006 via the merger of the leading fixed line operator, Cesky EBITDA margin (%) 44.47 44.64 43.85 43.77 Telecom, and the strongest mobile operator, Eurotel Praha, into a Operating margin (%) 21.57 24.23 24.96 26.53 single telecommunications organization. The company was privatized Net profit margin (%) 16.48 19.17 20.04 21.61 in April 2005, when Telefónica bought 51% of the shares for CZK
Czech Republic 82.2bn (CZK 502/share). Telefónica later increased its stake through Shareholders a buyout tender to 69.4% (at CZK 456), the rest remains free float. Telefónica 69.4% The company bought the third wireless license in Slovakia for EUR 4.1mn in August 2006, offering services since February 2, 2007.
600 6,000,000 600 550 550 5,000,000 500 500 4,000,000 450 450 3,000,000 400
400 2,000,000 350 300 350 1,000,000 250 300 0 200 17.10.2007 17.11.2007 17.12.2007 17.01.2008 17.02.2008 17.03.2008 17.04.2008 17.05.2008 17.06.2008 17.07.2008 17.08.2008 17.09.2008 17.10.2008 17.10.2007 17.11.2007 17.12.2007 17.01.2008 17.02.2008 17.03.2008 17.04.2008 17.05.2008 17.06.2008 17.07.2008 17.08.2008 17.09.2008 17.10.2008
Volume Price Telefonica O2 CR PX DJ EURO STOXX Telecommunications
Price performance: 1M 3M 6M 12M Ytd 1M 3M 6M 12M Ytd in EUR -13.0% -30.6% -25.4% -27.9% -29.1% in CZK -9.6% -24.7% -24.9% -34.1% -33.0%
Strengths/Opportunities Weaknesses/Threats - Domestic mobile business continues to thrive, despite penetration - Fixed-line business sees declining traditional voice revenues and levels above 120% number of lines, as well as strong competition from cable operators - EBITDA margin at around 44%, above industry average such as UPC and GTS - Effective cost management with focus on efficiency, keeping OpEx - EU roaming regulation to affect 10% of mobile revenues growth under control - Competitive domestic mobile market with above 120% mobile - Lowest gearing among CEE peers (equity ratio >70%) penetration and three operators - Successful start to Slovak unit, customer base stabilizing - Competitor T-Mobile has more mobile subscribers in Czech Republic - Broadband and IT services to drive growth
Erste Group – Fact Sheet October 20, 2008 - Thomas Unger Phone: +43 (0)5 0100 - 17344 [email protected] Page 22
Fact Sheet – TPSA – Integrated Telcoms – Poland – October 20, 2008
TPSA Thomas Unger +43 (0)5 0100- 17344 [email protected] TPSA
Integrated Telcoms
Key figures overview Financial strength
PLN mn 2007 2008e 2009e 2010e 2007 2008e 2009e 2010e Net sales 18,244.0 18,134.9 18,148.4 18,046.6 ROE (%) 12.68 14.14 14.73 15.31 EBITDA 7,712.0 7,897.8 7,822.0 7,705.9 ROCE (%) 10.17 11.39 12.12 12.97 EBIT 3,282.0 3,547.5 3,536.5 3,515.2 Equity ratio (%) 54.82 56.91 58.44 60.11 EBT 2,830.00 3,101.53 3,160.05 3,198.89 Net debt (PLN mn) 6,776.00 5,664.63 4,410.99 3,260.77 Net profit 2,273.0 2,493.6 2,547.0 2,578.3 Gearing (%) 38.13 32.34 25.81 19.63 EPS (PLN) 1.64 1.84 1.93 1.99 Trading data & Statistics CEPS (PLN) 4.63 5.06 5.16 5.23 Daily averages 5 days 30 days last year BVPS (PLN) 12.98 13.08 13.05 12.97 Volume 5,131,192 4,549,917 3,307,522 Dividend\Share (PLN) 1.50 1.70 1.80 1.90 Trading value (PLN mn) 110.0 99.8 73.9 EV/EBITDA (x) 4.87 4.17 3.98 3.81 P/E (x) 13.74 11.07 10.60 10.24 Company description P/CE (x) 4.86 4.04 3.95 3.90 Telekomunikacja Polska is the dominant player in the Polish Dividend yield (%) 6.66 8.33 8.82 9.31 telecommunications market, operating 10.8mn fixed-lines in 2007. EBITDA margin (%) 42.27 43.55 43.10 42.70 TPSA enjoys an 87.8% share of the access market and operates Operating margin (%) 17.99 19.56 19.49 19.48 67% of international connections from Poland. Orange Polska Net profit margin (%) 12.47 13.75 14.03 14.29 (formerly PTK Centertel), a 100% owned subsidiary of TPSA, has
Poland around 14.2mn mobile customers (approximately a 34%) in 2007. Shareholders France Telecom is the strategic investor in the company, controlling France Telecom 47.5% 48.58% of TPSA. State 4.1%
25.5 22.0 M 26 25.0 20.0 M 24 24.5 18.0 M 24.0 16.0 M 22 23.5 14.0 M 20 23.0 12.0 M 22.5 10.0 M 18 22.0 8.0 M 16 21.5 6.0 M 14 21.0 4.0 M 20.5 2.0 M 12 20.0 0.0 M 10 17.10.2007 17.11.2007 17.12.2007 17.01.2008 17.02.2008 17.03.2008 17.04.2008 17.05.2008 17.06.2008 17.07.2008 17.08.2008 17.09.2008 17.10.2008 17.10.2007 17.11.2007 17.12.2007 17.01.2008 17.02.2008 17.03.2008 17.04.2008 17.05.2008 17.06.2008 17.07.2008 17.08.2008 17.09.2008 17.10.2008
Volume Price TPSA WIG 20 DJ EURO STOXX Telecommunications
Price performance: 1M 3M 6M 12M Ytd 1M 3M 6M 12M Ytd in EUR -10.8% -14.2% -10.0% -2.8% -8.3% in PLN -5.6% -5.5% -6.4% -6.8% -9.4%
Strengths/Opportunities Weaknesses/Threats - Dominant position on domestic market in all major segments - Regulatory decisions to open TPSA’s access to competitors via - Strong growth in broadband business: 25% customer growth and WLR, ULL and bitstream access put pressure on market share, 42% volume market share in 1Q08 revenues and profitability - Strong mobile growth with 9.6% customer growth and 33.6% - Heavy regulatory fines, which year-to-date amount to around 20% market share in 1Q08 of net profit 2007, create uncertainty - Expected 10% cost savings between 2007 and 2010, in commercial - Mobile competition increases, as P4 and MVNOs entered in 2007. and technical areas Mobyland and CenterNET will start in 2008. - Cooperation with France Telecom on strategic issues - Dispute with DPTG since 2001 still ongoing, with latest claim from DPTG of PLN 2.6bn plus interest - Strong balance sheet with A3 Moody’s rating - Regulator’s intention to force TPSA splitting its network and service business puts additional risk on TPSA
Erste Group – Fact Sheet October 20, 2008 - Thomas Unger Phone: +43 (0)5 0100 - 17344 [email protected] Page 23
Fact Sheet – Verbund – Utility – Austria – October 20, 2008
Verbund Christoph Schultes +43 (0)5 0100 - 16314 [email protected] Verbund
Utility
Key figures overview Financial strength
EUR mn 2007 2008e 2009e 2010e 2007 2008e 2009e 2010e Net sales 3,038.3 3,484.8 3,995.0 4,408.9 ROE (%) 25.86 28.33 27.95 26.52 EBITDA 1,099.1 1,326.9 1,543.4 1,682.1 ROCE (%) 14.70 16.77 17.17 17.21 EBIT 916.1 1,145.6 1,352.8 1,483.7 Equity ratio (%) 36.44 41.49 44.78 48.80 EBT 882.40 1,102.22 1,300.41 1,464.23 Net debt (EUR mn) 1,892.01 2,026.93 2,217.55 2,213.94 Net profit 579.2 748.9 880.5 984.6 Gearing (%) 70.74 62.39 56.74 47.73 EPS (EUR) 1.88 2.43 2.86 3.19 Trading data & Statistics CEPS (EUR) 2.46 2.91 3.56 3.93 Daily averages 5 days 30 days last year BVPS (EUR) 7.81 9.34 11.10 12.99 Volume 317,866 440,666 264,133 Dividend\Share (EUR) 0.90 1.10 1.30 1.50 Trading value (EUR mn) 12.3 18.1 12.5 EV/EBITDA (x) 15.39 10.79 9.48 8.78 P/E (x) 25.48 15.92 13.54 12.11 Company description P/CE (x) 19.45 13.31 10.85 9.84 Verbund is the largest Austrian electricity producer, operating the Dividend yield (%) 1.88 2.84 3.36 3.88 supranational Austrian high-voltage grid. The company’s 108 EBITDA margin (%) 36.17 38.08 38.63 38.15 hydroelectric power plants account for 80-90% of Verbund’s electricity Operating margin (%) 30.15 32.88 33.86 33.65 output. The company primarily delivers electricity to provincial Net profit margin (%) 21.89 24.43 25.00 25.65 suppliers and large customers in Austria and abroad. Over the past
Austria few years, Verbund’s management has succeeded in continually Shareholders improving operating results and reducing debt (gearing has improved Republic of Austria 51.0% to some 65%). EVN 12.5%
60 2,000,000 60 55 55 1,600,000 50 45 50 1,200,000 40 45 800,000 35 30 40 400,000 25 20 35 0 15 17.10.2007 17.11.2007 17.12.2007 17.01.2008 17.02.2008 17.03.2008 17.04.2008 17.05.2008 17.06.2008 17.07.2008 17.08.2008 17.09.2008 17.10.2008 17.10.2007 17.11.2007 17.12.2007 17.01.2008 17.02.2008 17.03.2008 17.04.2008 17.05.2008 17.06.2008 17.07.2008 17.08.2008 17.09.2008 17.10.2008
Volume Price Verbund ATX DJ EURO STOXX Utilities
Price performance: 1M 3M 6M 12M Ytd in EUR -10.5% -22.3% -19.1% -11.9% -19.2%
Strengths/Opportunities Weaknesses/Threats - Increased strategic value of hydropower assets - full production - Low free float costs of some EUR 20/MWh - Shareholder structure: obligatory 51% stake (fixed by constitutional - High electricity wholesale prices and therefore increasing margins law) of Republic of Austria does not provide short- or mid-term as earnings drivers takeover fantasy - Highly valuable peak load as big asset - Dependence on water supply - Low exposure to CO2 emission certificate trading - Decreasing electricity prices could diminish results - Huge growth potential in Italy and Turkey
Erste Group – Fact Sheet October 20, 2008 - Christoph Schultes Phone: +43 (0)5 0100 - 16314 [email protected] Page 24
Fact Sheet – voestalpine – Steel – Austria – October 20, 2008
voestalpine Franz Hoerl +43 (0)5 0100- 18506 [email protected] voestalpine
Steel
Key figures overview Financial strength
EUR mn 2007 2008e 2009e 2010e 2007 2008e 2009e 2010e Net sales 10,481.2 12,107.9 11,798.0 11,834.7 ROE (%) 24.46 23.16 16.89 15.43 EBITDA 1,836.5 2,053.6 1,819.2 1,793.9 ROCE (%) 14.06 11.23 9.44 9.23 EBIT 1,152.6 1,331.8 1,146.2 1,136.0 Equity ratio (%) 34.04 35.14 37.68 40.28 EBT 979.58 1,073.71 895.66 895.80 Net debt (EUR mn) 4,493.75 4,447.75 4,272.61 3,933.86 Net profit 718.2 757.2 619.7 619.8 Gearing (%) 104.77 96.65 86.24 74.12 EPS (EUR) 4.53 4.72 3.85 3.82 Trading data & Statistics CEPS (EUR) 10.88 9.33 7.81 7.90 Daily averages 5 days 30 days last year BVPS (EUR) 19.11 21.74 23.76 25.71 Volume 1,819,740 1,661,410 795,149 Dividend\Share (EUR) 2.10 1.80 1.80 1.80 Trading value (EUR mn) 37.5 34.2 32.0 EV/EBITDA (x) 6.94 4.03 4.47 4.36 P/E (x) 9.71 3.59 4.41 4.44 Company description P/CE (x) 4.04 1.82 2.17 2.15 voestalpine is a medium-sized steel group, and a high quality niche Dividend yield (%) 4.77 10.61 10.61 10.61 player in the European steel market. It boasts one of the longest EBITDA margin (%) 17.52 16.96 15.42 15.16 value-added chains in the industry. voestalpine is organized into five Operating margin (%) 11.00 11.00 9.72 9.60 divisions: Steel, Special Steel, Railway Systems, Profilform and Net profit margin (%) 7.41 6.89 5.88 5.86 Automotive. Application of (non-cash) purchase price allocation
Austria reduced EBIT by EUR 350mn in FY07/08. The second stage of the Shareholders large-scale investment at the steel plant in Linz is almost completed. Employee foundation 10.8% voestalpine is currently evaluating different sites for the construction RLB OÖ Invest > 15.0% of a second steel plant at the Black Sea coast (capacity: 5mn tpy). Oberbank 5.0%
65 5,000,000 70 60 4,500,000 55 4,000,000 60 50 3,500,000 50 45 3,000,000 40 2,500,000 40 35 2,000,000 30 1,500,000 30 25 1,000,000 20 20 500,000 15 0 10 17.10.2007 17.11.2007 17.12.2007 17.01.2008 17.02.2008 17.03.2008 17.04.2008 17.05.2008 17.06.2008 17.07.2008 17.08.2008 17.09.2008 17.10.2008 17.10.2007 17.11.2007 17.12.2007 17.01.2008 17.02.2008 17.03.2008 17.04.2008 17.05.2008 17.06.2008 17.07.2008 17.08.2008 17.09.2008 17.10.2008
Volume Price voestalpine ATX DJ EURO STOXX Basic Resources
Price performance: 1M 3M 6M 12M Ytd in EUR -27.8% -57.8% -62.5% -73.2% -65.7%
Strengths/Opportunities Weaknesses/Threats - Partly integrated in iron ore and energy gives advantage in - Slowdown of general business cycle and drop of steel prices with environment of rising input costs slowing of demand - Long-term relationships with key accounts - Unsure wether mills are sufficiently able/willing to manage - Well placed to benefit from improving demand in CEE production with large demand swings - Consolidation of global steel industry improves the industry’s - Oligopolistic raw material producer structure structure and pricing power - Strong increases of raw material prices, without noticeable steel - A high share of long-term contracts allows a more stable earnings price increases development compared to competitors. - Slowing of growth in China and increasing Chinese exports
Erste Group – Fact Sheet October 20, 2008 - Franz Hoerl Phone: +43 (0)5 0100 - 18506 [email protected] Page 25
Fact Sheet – Wienerberger – Construction Materials – Austria – October 20, 2008
Wienerberger Franz Hoerl +43 (0)5 0100- 18506 [email protected] Wienerberger
Construction Materials Key figures overview Financial strength
EUR mn 2007 2008e 2009e 2010e 2007 2008e 2009e 2010e Net sales 2,477.3 2,401.7 2,302.7 2,332.5 ROE (%) 14.06 -2.54 6.98 8.81 EBITDA 551.2 401.9 391.4 443.0 ROCE (%) 10.01 -10.86 6.51 7.61 EBIT 353.1 165.2 165.8 209.9 Equity ratio (%) 61.73 57.94 58.40 59.60 EBT 358.38 2.35 138.60 178.05 Net debt (EUR mn) 663.71 1,003.31 1,074.25 1,073.11 Net profit 261.4 -52.5 141.7 189.0 Gearing (%) 24.83 40.14 41.29 39.30 EPS (EUR) 3.46 -0.63 1.71 2.27 Trading data & Statistics CEPS (EUR) 6.62 2.09 4.32 5.11 Daily averages 5 days 30 days last year BVPS (EUR) 25.91 23.83 25.03 26.55 Volume 590,456 891,950 542,227 Dividend\Share (EUR) 1.45 0.50 0.75 1.00 Trading value (EUR mn) 9.3 15.6 14.5 EV/EBITDA (x) 7.87 6.99 7.36 6.51 P/E (x) 10.95 -24.52 9.07 6.81 Company description P/CE (x) 5.73 7.41 3.58 3.03 Wienerberger is the world's largest producer of bricks. In the roof tile Dividend yield (%) 3.82 3.23 4.85 6.46 segment, the group is currently ranked number two in continental EBITDA margin (%) 22.22 16.71 16.98 18.97 Europe. The long-term earnings growth target of the group amounts Operating margin (%) 14.24 6.87 7.19 8.99 to about 10% p.a. on average. Expansion is achieved through organic Net profit margin (%) 11.93 -0.86 7.62 9.57 investments and by consolidating mature markets. However,
Austria Wienerberger recently cut back the capex program to focus on cash Shareholders flow generation. The geographic focus is on CEE, Western- and Northern Europe and the US. CEE is the main organic growth market. The group is also looking at North Africa and India as new markets.
50 8,000,000 50 45 7,000,000 45 40 6,000,000 40 35 5,000,000 35 30 4,000,000 30 25 3,000,000 25 20 2,000,000 20 15 1,000,000 15 10 0 10 17.10.2007 17.11.2007 17.12.2007 17.01.2008 17.02.2008 17.03.2008 17.04.2008 17.05.2008 17.06.2008 17.07.2008 17.08.2008 17.09.2008 17.10.2008 17.10.2007 17.11.2007 17.12.2007 17.01.2008 17.02.2008 17.03.2008 17.04.2008 17.05.2008 17.06.2008 17.07.2008 17.08.2008 17.09.2008 17.10.2008
Volume Price Wienerberger ATX DJ EURO STOXX Construction & Material
Price performance: 1M 3M 6M 12M Ytd in EUR -13.7% -11.8% -56.1% -66.9% -59.2%
Strengths/Opportunities Weaknesses/Threats - World market leader in bricks, with significant presence in all core - Cyclical downturn mainly in the markets of Northern- and Western markets. Europe and the US. - Major market presence in CEE region, which has long-term catch- - Capital intensive business with high up-front investments. up potential. - Averse weather conditions. - Know -how transfer over countries and products and cost advantage - Impairment risk from high goodwill in troubled US and UK markets. in comparison to smaller competitors. - Time lag between fluctuating energy prices (mainly gas) and price - Maintenance capex are only about 60% of depreciation. adjustments. - Wienerberger is among the logical market consolidators in the brick business.
Erste Group – Fact Sheet October 20, 2008 - Franz Hoerl Phone: +43 (0)5 0100 - 18506 [email protected] Page 26
Exchange rates
Exchange Rate Development (Basis 01.01.2008 = 100)
130 125 120 115 110 105 100 95 90 85 80 01/01/2008 01/02/2008 01/03/2008 01/04/2008 01/05/2008 01/06/2008 01/07/2008 01/08/2008 01/09/2008 01/10/2008
EURCZK EURSKK EURHUF EURPLN EURHRK EURRON EURTRY EURUAH
Source: Erste Group Research, Bloomberg
Forecasts
current price* Dec-08 Mar-09 Jun-09
EUR/CZK 25.0 24.8 25.1 24.9 EUR/SKK 30.6 30.1 EUR EUR EUR/HUF 268 246 240 238 EUR/RON 3.86 3.75 3.68 3.65 EUR/HRK 7.14 7.20 7.25 7.20 EUR/PLN 3.62 3.35 3.31 3.28 EUR/TRY 1.93 - - - EUR/UAH 7.22 7.18 7.35 7.14
Source: Erste Group Research *as of 10.10.2008
Erste Group - CEE Credit Page 27 List of selected bonds
SELECTED CEE BONDS IN LOCAL CURRENCIES ISIN Bond Issuer (EUR)* Amount Coupon S&P Rating Outstanding Industry Sector Country of Risk Moody's Rating Price Indication
CEZCO 4.3 08/27/10 CEZ AS CZ0003501520 Utilities CZ 283,794,905 4.3 100.0 CEZCO 0 01/26/14 CEZ AS CZ0003501058 Utilities CZ 101,355,323 9.6 HOMECZ 0 06/21/09 HOME CREDIT BV CZ0000000203 Diversified CZ 121,626,388 10.3 KOVBRI 18 12/09/99 KOVOHUTE BRID. CZ0003500951 Basic Mats. CZ 16,216,852 18.0 MERO 10.3 04/15/11 MERO CR A.S. CZ0003500605 Energy CZ 81,084,259 10.3 MORTEP11 3/8 11/08 DALKIA MORAVA CZ0003501033 Utilities CZ 40,542,129 11.4 SKODA 0 12/11/02 SKODA A.S. CZ0003500969 Industrial CZ 68,921,620 0.0 SMVAK 5 11/15/15 SEVEROMORAVSKE CZ0003501462 Utilities CZ 81,084,259 5.0 SZDC 4.6 03/03/11 SPRAVA ZELEZNICNI CZ0003501397 Industrial CZ 283,794,905 4.6 101.7 UNIPCP 12.53 12/13 UNIPETROL A.S. CZ0003501041 Energy CZ 81,084,259 12.5 VOJSTA 13.4 12/01 VOJENSKE STAV CZ0003500761 Industrial CZ 20,271,065 13.4 VW 0 10/26/10 SKODA AUTO CZ0003501199 Cyclical CZ 81,084,259 4.5 98.9 ZSBRCP4.8 06/13/10 ZELEZNICNI STAVI CZ0003501421 Basic Mats. CZ 24,325,278 4.8 CESKA6.95 07/11/10 CESKA EXPORTINI CZ0003700551 Financial CZ 222,981,711 7.0 104.5 CESSPO 0 05/16/15 CESKA SPOR CZ0003701005 Financial CZ 121,626,388 4.7 98.9 CESSPO 4 3/4 10/15 CESKA SPOR CZ0002000623 Financial CZ 202,710,647 4.8 CESSPO 0 10/02/16 CESKA SPOR CZ0003701187 Financial CZ 121,626,388 4.4 98.8 CSKHYP 4.45 05/10 CESKOMOR. HYPO CZ0002000532 Financial CZ 101,355,323 4.5 CSKHYP 0 12/20/37 HYPOTECNI BANKA CZ0002001720 Financial CZ 202,710,647 6.4 KBCBB 4.6 11/15/15 CESKO OBCHODNI CZ0002000706 Financial CZ 52,704,768 4.6 HOMECZ 0 07/06/09 HOME CREDIT CZ0003501488 Financial CZ 121,626,388 6.6 98.8 INTNED 4 1/2 12/19 ING BANK NV CZ0000000039 Financial CZ 81,084,259 4.5 KOMERC4.4 10/21/15 KOMERCNI BANKA CZ0002000664 Financial CZ 405,421,294 4.4 KOMERC 0 12/28/37 KOMERCNI BANKA CZ0002001746 Financial CZ 202,710,647 6.3 MORAVA 0 11/06/08 S MORAVA LEAS AT0000341946 Financial CZ 89,192,685 5.6 100.1 PPFGRP 0 04/30/09 PPF CO2 BV CZ0000000229 Financial CZ 324,337,035 0.0 PRAHA6.95 07/20/10 PRAHA FINANCE CZ0000000062 Financial CZ 152,032,985 7.0 106.9 A RABKAS5.1 12/12/17 RAIFFEISENBANK CZ0002001670 Financial CZ 222,981,711 5.1 UNICZ 0 12/21/37 UNICREDIT BANK CZ0002001910 Financial CZ 486,505,552 6.6 IDCSK6.33 10/15/08 IDC HOLDING AS SK4120004094 Non-cyclical SK 11,484,824 6.3 TATRA4.81 11/26/10 TATRA-LEASING SK4120005661 Industrial SK 24,612,305 4.8 VSZSK 0 10/04/00 VYCHODOSLOVENSKE SK4120000456 Basic Mats. SK 22,969,647 0.0 ZSR 0 06/12/14 ZELEZNICE SLOVENS XS0149619172 Industrial SK 148,974,569 5.0 ZSR 8.6 06/12/14 ZELEZNICE SLOVENS XS0149619099 Industrial SK 75,471,698 8.6 122.3 SLOSPO 0 04/29/09 SLOVENSKA SPOR SK4120004573 Financial SK 65,627,564 4.8 SLOSPO 0 06/01/10 SLOVENSKA SPOR SK4120005422 Financial SK 82,034,454 4.5 TAT 0 07/30/10 TATRA BANKA SK4120006123 Financial SK 65,627,564 5.0 VUB 0 11/24/11 VSEOBECNA UV SK4120005174 Financial SK 49,220,673 4.5 VUB 0 11/28/15 VSEOBECNA UV SK4120004813 Financial SK 82,034,454 4.4 HRELEC 5 11/29/13 HRVATSKA ELECTRO HRHEP0O13BA5 Utilities HR 69,886,086 5.0 BBB HRELEC 6 1/2 12/17 HRVATSKA ELECTRO HRHEP0O17CA4 Utilities HR 97,840,520 6.5 BBB INGRRA 6 1/8 12/11 INGRA DD HRINGRO11CA1 Industrial HR 27,954,434 6.1 JGL 0 06/11/12 JADRAN - GALENSKI HRJDGLO126A5 Non-cyclical HR 17,471,521 7.8
Erste Group - CEE Credit Page 28 List of selected bonds
SELECTED CEE BONDS IN LOCAL CURRENCIES ISIN Bond Issuer (EUR)* Amount Coupon S&P Rating Outstanding Industry Sector Country of Risk Moody's Rating Price Indication
METTEL 8 1/2 07/09 METRONET TELEKOM HRMTELO097A7 Comm. HR 16,772,661 8.5 NEXE5 1/2 06/14/11 NEXE GRUPA d.d. HRNEXEO116A7 Industrial HR 104,829,129 5.5 OPTTEL 9 1/8 02/14 OT OPTIMA TELEKOM HROPTEO142A5 Comm. HR 34,943,043 9.1 PODRAK 5 1/8 05/11 PODRAVKA D.D. HRPODRO115A4 Non-cyclical HR 52,414,564 5.1 RBA 4 1/8 02/10/11 RAIFFEISENBK AUST HRRBA0O112A0 Financial HR 83,863,303 4.1 RIJPRO6.8125 01/18 RIJEKA PROMET HRRPROO181A0 Non-cyclical HR 26,836,257 6.8 DOMPW 0 11/28/12 DOM DEVELOPMENT Cyclical PL 57,252,455 IKEAPO 12.2 11/10 IKEA POLSKA S.A Cyclical PL 35,782,784 12.2 PKNPW 0 02/27/12 POLSKI KONCERN NAFT Energy PL 214,696,705 7.0 PROKOM 0 09/12/11 PROKOM INVEST Diversified PL 57,252,455 TVNSPZ 0 06/14/13 TVN SA Comm. PL 143,131,137 9.5 BB BPHHIP 0 11/21/10 BPH BANK HIPO PLBPHHP00028 Financial PL 114,504,909 6.8 BPHHIP 0 03/28/11 BPH BANK HIPO PLBPHHP00036 Financial PL 57,252,455 6.9 BPHHIP 0 06/02/12 BPH BANK HIPO PLBPHHP00010 Financial PL 57,252,455 6.9 BREPW 0 04/28/11 BRE BANK HIPO PLRHNHP00094 Financial PL 71,565,568 7.4 A2 /*- BREPW 0 06/15/11 BRE BANK HIPO PLRHNHP00102 Financial PL 57,252,455 7.7 BZWFIN4.9 08/07/09 BZ WBK FINANSE PLBZWFL00086 Financial PL 37,214,096 4.9 GTCAPW 0 05/15/13 GLOBE TRADE Financial PL 100,191,796 8.5 GTCAPW 0 04/28/14 GLOBE TRADE Financial PL 206,108,837 7.8 PKOBP 0 10/30/17 PKO BANK POLSKI Financial PL 458,220,021 7.5 SOWA7 1/4 12/06/10 SPAR MAGYAR XS0240788090 Non-cyclical HU 14,329,784 7.3 CIBBAN 0 09/22/11 CENTRAL EUROPEAN HU0000343165 Financial HU 65,571,938 9.4 FHBHU 8 02/14/11 FHB MORTGAGE HU0000652029 Financial HU 101,051,289 8.0 Aa3 FHBHU 10.55 03/12 FHB MORTGAGE HU0000650825 Financial HU 78,440,641 10.6 Aa3 FHBHU 10.796 12/13 FHB MORTGAGE HU0000650684 Financial HU 132,162,404 10.8 Aa3 HUNFOR 0 02/07/11 MKB BANK RT. HU0000339197 Financial HU 163,145,189 OTP 8 02/12/11 OTP MORTGAGE HU0000650387 Financial HU 134,142,701 8.0 Aa1 OTP 9 11/30/11 OTP MORTGAGE HU0000651260 Financial HU 99,512,389 9.0 OTP 9.48 03/18/19 OTP MORTGAGE HU0000650874 Financial HU 99,512,389 9.5 Aa1 UCJB 11 03/19/09 UNICREDIT JELZALOG HU0000650858 Financial HU 55,516,887 11.0 CRDFA 0 03/26/10 CREDITWEST FAKTOR TRSTPFC31015 Financial TR 26,608,483 21.4 AVAUKR 17 05/19/13AVANGARD UA4000038798 Non-cyclical UA 28,429,686 17.0 CENPRU12 3/4 04/11 CENTRAVIS PROD UA4000036172 Industrial UA 21,322,265 12.8 DONTST12 1/2 11/08 DONETSKSTEEL UA4000025274 Basic Mats. UA 21,322,265 12.5 DONTST 13 10/03/11 DONETSKSTEEL UA4000021158 Basic Mats. UA 21,322,265 13.0 DONTST 12 01/11/13 DONETSKSTEEL UA4000030035 Basic Mats. UA 85,289,059 12.0 FOZZYF 17 08/11/11 FORA UA4000019111 Cyclical UA 28,429,686 14.0 FURSH 12 3/4 11/10 FURSHET CJSC UA4000026017 Non-cyclical UA 21,322,265 12.8 KERNEL 14 09/18/10 KERNEL-TRADE UA4000019202 Non-cyclical UA 14,214,843 14.0 KOKTEB 14 03/01/11 KOKTEBEL UA4000034078 Non-cyclical UA 14,214,843 14.0 KYSHEN12 3/4 04/12 KVIZA-TRADE UA4000009559 Non-cyclical UA 35,537,108 12.8 LUAZ 14 06/14/10 BOHDAN AUTO UA030040AA07 Cyclical UA 18,479,296 14.0 RISECO 15 05/23/11 RISE CO UA4000038079 Non-cyclical UA 14,214,843 15.0 UKRTEL 15 07/25/11 UKRTELECOM UA4000043616 Comm. UA 35,537,108 15.0
Erste Group - CEE Credit Page 29 List of selected bonds
SELECTED CEE BONDS IN LOCAL CURRENCIES ISIN Bond Issuer (EUR)* Amount Coupon S&P Rating Outstanding Industry Sector Country of Risk Moody's Rating Price Indication
VVSLTD 15 09/14/11 VVS-LTD UA4000019178 Cyclical UA 14,214,843 0.0 ALFAUA 8 09/10/12 ALFA BANK UKRAINE UA4000019517 Financial UA 44,066,014 0.0 Ba3 BAVLUZ 15 06/01/13 RAIFFEISEN BANK UA4000038137 Financial UA 99,503,902 15.0 BAVLUZ 15 08/25/14 RAIFFEISEN BANK UA4000038145 Financial UA 71,074,216 15.0 DELBNK 14 09/19/09 DELTA BANK UA4000019137 Financial UA 71,074,216 14.0 EXIMUK 9 3/4 06/10 UKREXIMBANK UA4000013759 Financial UA 71,074,216 9.8 FIUKR 15 1/2 06/10 FIRST UKRANIAN UA4000014021 Financial UA 42,644,529 15.5 IMEXBK13 1/2 11/10 IMEXBANK UA4000025852 Financial UA 21,322,264,709 13.5 KREDBK11 1/2 06/11 OJSC KREDITPROM UA4000012876 Financial UA 49,751,951 11.5 NADRA 11 3/4 06/11 NADRA FINANCE UA4000014088 Financial UA 45,487,498 11.8 PRBANK11 1/2 03/10 PRIVATBANK UA4000006993 Financial UA 71,074,216 11.5 SWEDA 11 1/2 07/09 SWEDBANK OJSC UA4000014302 Financial UA 42,644,529 11.5 UCGIM 10 3/4 11/09 UNICREDIT BANK UA4000024285 Financial UA 76,760,153 10.8 UKRGAZ 12 07/30/12 UKRGAZBANK UA4000016935 Financial UA 42,644,529 0.0 UKRSIB 11 01/17/11 UKRSIBBANK UA4000003123 Financial UA 42,644,529 11.0 USCBUZ 12 10/15/12 JSCB UKRSOTS UA4000022040 Financial UA 106,611,324 12.0
*as of 30.06.2008
Erste Group - CEE Credit Page 30 List of selected bonds
SELECTED EURO DENOMINATED CEE BONDS ISIN Bond (EUR) Issuer Amount Coupon S&P Rating Outstanding Industry Sector Country of Risk Moody's Rating Price Indication
CESKA3.86 01/31/11 CESKA EXPORTINI XS0343076526 Financial CZ 100,000,000 3.9 97.1 Aa1 A CESKA 4.682 08/12 CESKA EXPORTINI XS0315538651 Financial CZ 50,000,000 4.7 96.7 A CESKA 4.354 11/12 CESKA EXPORTINI XS0332366383 Financial CZ 50,000,000 4.4 95.8 Aa1 Ae CESKA 4.555 11/17 CESKA EXPORTINI XS0332367274 Financial CZ 50,000,000 4.6 92.2 Aa1 Ae CETV8 1/4 05/15/12 CENTRAL EURO MED XS0218213816 Comm. CZ 245,000,000 8.3 103.0 Ba2 BB CETV 0 05/15/14 CENTRAL EURO MED XS0300714762 Comm. CZ 150,000,000 6.5 Ba2 BB CEZCO 4 5/8 06/11 CEZ FINANCE BV XS0193834156 Utilities CZ 400,000,000 4.6 98.6 A2 A- CEZCO 5 1/8 10/12 CEZ AS XS0324693968 Utilities CZ 500,000,000 5.1 98.3 A2 A- CEZCO 4 1/8 10/13 CEZ AS XS0271020850 Utilities CZ 500,000,000 4.1 92.6 A2 A- CEZCO 6 07/18/14 CEZ AS XS0376701206 Utilities CZ 600,000,000 6.0 100.6 A2 A- KONCPR 5.73 04/14 KONGRESOVE CENT XS0096365951 Non-cyclical CZ 55,000,000 5.7 MEINL 6.8 12/21/11 JULIUS MEINL AT0000330964 Non-cyclical CZ 35,000,000 6.8 NWORLD 7 3/8 05/15 NEW WORLD RES XS0300667820 Basic Mats. CZ 300,000,000 7.4 B3 B NWORLD 7 3/8 05/15 NEW WORLD RES XS0300667408 Basic Mats. CZ 300,000,000 7.4 76.5 B3 B SAZKA 8 1/2 07/21 SAZKA XS0258547057 Cyclical CZ 213,000,000 8.5 B+ ELEKSK 5 5/8 06/11 SLOVENSK ELEK XS0194297502 Financial SK 200,000,000 5.6 99.4 TAT 0 01/31/10 TATRA BANKA SK4120005794 Financial SK 100,000,000 5.3 TAT 4 3/4 05/27/10 TATRA BANKA SK4120005992 Financial SK 200,000,000 4.8 AGROK 7 11/23/11 AGROKOR D.D XS0275181096 Non-cyclical HR 150,000,000 7.0 93.6 B2 B CBRD4 7/8 02/11/11 CROATIAN BK RECON XS0185658977 Financial HR 300,000,000 4.9 94.8 A1 BBB CBRD5 3/4 12/04/12 CROATIAN BK RECON XS0158715804 Financial HR 100,000,000 5.8 96.8 BBB CBRD4.807 07/11/16 CROATIAN BK RECON XS0260606560 Financial HR 150,000,000 4.8 92.3 BBB CBRD 5 06/14/17 HBOR XS0305384124 Financial HR 250,000,000 5.0 90.6 BBB ZAGHLD 5 1/2 07/17 ZAGREBACKI HOLD XS0309688918 Financial HR 300,000,000 5.5 82.8 Baa2 BBB ZAGREB 4 1/4 07/09 ZAGREBACKA BANK XS0196346042 Financial HR 450,000,000 4.3 89.6 A2 BBB CEDC 8 07/25/12 CENTRAL EUR DISTR XS0224445733 Non-cyclical PL 260,000,000 8.0 64.0 B2 B GETINF 0 05/13/09 GETIN FINANCE XS0299283126 Financial PL 350,000,000 7.0 97.9 Ba2 BB TPSA4 5/8 07/05/11 TPSA EUROFINANCE XS0195792717 Comm. PL 300,000,000 4.6 100.5 A3 BBB+ TVNSPZ 9 1/2 12/13 TVN FINANCE XS0181652362 Comm. PL 235,000,000 9.5 105.1 Ba3 BB- ZLOM8 1/2 02/01/14 ZLOMREX INTER XS0283393998 Financial PL 170,000,000 8.5 71.5 Caa3 CCC APV 1 09/28/09 ALLAMI PRIVAT XS0201403994 Financial HU 639,000,000 1.0 100.9 DUNAUT 0 03/31/25 M6 DUNA AUTOPAL XS0245906150 Industrial HU 193,061,781 5.6 Aaa /*- AAA /*- FHBHU 3 7/8 07/09 FHB MORTGAGE HU0000651021 Financial HU 100,000,000 3.9 98.8 Aa3 FHBHU 0 02/10/11 FHB MORTGAGE HU0000651229 Financial HU 50,000,000 5.3 99.8 Aa3 FHBHU 0 08/06/12 FHB MORTGAGE HU0000651526 Financial HU 100,000,000 5.3 97.7 Aa3 HTC10 3/4 08/15/12 MAGYAR TELECOM . XS0197866170 Comm. HU 142,000,000 10.8 92.0 B2 B HTC 0 02/01/13 MAGYAR TELECOM XS0297861279 Comm. HU 200,000,000 8.0 90.3 B HUNFOR 3 1/2 10/09 MKB BANK RT XS0204157035 Financial HU 300,000,000 3.5 99.1 Aa3 MOLHB 3 7/8 10/15 MOL HUNGARIAN OIL XS0231264275 Energy HU 750,000,000 3.9 74.0 BBB- /*- OTP 4 1/2 03/04/10 OTP JELZALOGBANK RESVENYXS0348866368 Financial HU 1,000,000,000 4.5 99.7 Aa1 OTP 4 1/4 07/11/11 OTP MORTGAGE HU0000651658 Financial HU 750,000,000 4.3 97.3 Aa1
Erste Group - CEE Credit Page 31 List of selected bonds
SELECTED EURO DENOMINATED CEE BONDS ISIN Bond (EUR) Issuer Amount Coupon S&P Rating Outstanding Industry Sector Country of Risk Moody's Rating Price Indication
OTPHB 0 02/27/09 OTP BANK NYRT XS0289103631 Financial HU 750,000,000 5.1 99.6 Aa3 OTPHB 5 3/4 05/11 OTP BANK NYRT XS0364137272 Financial HU 500,000,000 5.8 100.0 Aa3 OTPHB 5 7/8 11/49 OTP BANK NYRT XS0274147296 Financial HU 500,000,000 5.9 68.6 A1 SOWA3 3/4 12/06/10 SPAR MAGYAR AT0000499124 Non-cyclical HU 85,000,000 3.8 96.9 BCRBK 3 3/4 12/08 BANCA COM ROM XS0236777339 Financial RO 500,000,000 3.8 98.1 BBB- SUCEA 0 09/27/30 DEUTSCHE BK LU XS0196512668 Financial RO 86,300,000 0.0 FCFIN 0 09/29/15 FINANSBANK NV XS0230745837 Financial TR 60,000,000 8.1 Ba1 INETTR 10 05/29/12 HSBC Bank PLC XS0303410665 Financial TR 110,000,000 10.0 MERINO11 3/4 06/12 HSBC BANK PLC XS0305017484 Cyclical TR 60,000,000 11.8 TEBNK 6.1 10/31/16 ECONOMY LUXEM XS0272957035 Financial TR 110,000,000 6.1 94.4 YASAR 9 1/2 08/11 TROY CAPITAL XS0263392358 Financial TR 200,000,000 9.5 70.3
Erste Group - CEE Credit Page 32 List of selected bonds
SELECTED AUSTRIAN BONDS (NON-FINANCIALS) ISIN Bond (EUR) Issuer Amount Coupon S&P Rating Outstanding Industry Sector Country of Risk Moody's Rating Price Indication
ALLBAU 4 1/2 06/10 ALLG BAU PORR AT0000492707 Industrial AT 100,000,000 4.5 96.1 ALLBAU 5 5/8 06/11 ALLG BAU PORR AT0000A019D6 Industrial AT 60,000,000 5.6 97.4 ALLBAU 5 7/8 05/12 ALLG BAU PORR AT0000A05DC4 Industrial AT 70,000,000 5.9 96.2 ANDRTZ 4 1/2 06/13 ANDRITZ AG AT0000A01633 Industrial AT 200,000,000 4.5 92.2 ANDRTZ 5 1/4 02/15 ANDRITZ AG AT0000A08RK1 Industrial AT 150,000,000 5.3 ASAMER 8 1/4 08/49 ASAMER HOLDING AT0000A0A077 Industrial AT 35,000,000 8.3 ATECI 5 3/4 11/10 A-TEC INDUST AT0000499272 Industrial AT 100,000,000 5.8 91.0 ATECI 2 3/4 05/14 A-TEC INDUST AT0000A05CS2 Industrial AT 180,000,000 2.8 164.9 AUS 5 1/2 05/27/13 AUSTRIA T&S AG AT0000A09S02 Industrial AT 80,000,000 5.5 BERNDF 0 09/03/13 BERNDORF AG AT0000A0ALP5 Basic Mats. AT 45,000,000 5.8 BHSTRB 5 1/2 06/09 BAUHOLD STRABAG AT0000342332 Industrial AT 50,000,000 5.5 98.6 BBB- BHSTRB 4 1/4 06/10 STRABAG SE AT0000492723 Industrial AT 75,000,000 4.3 95.9 BHSTRB 5 1/4 06/11 STRABAG SE AT0000A013U3 Industrial AT 75,000,000 5.3 96.6 BHSTRB 5 3/4 06/12 STRABAG SE AT0000A05HY9 Industrial AT 75,000,000 5.8 95.8 BB+ BHSTRB 5 3/4 06/13 STRABAG SE AT0000A09H96 Industrial AT 75,000,000 5.8 94.1 BB+ BINDER 4 3/4 06/13 BINDER BETEIL AT0000A018T4 Basic Mats. AT 85,000,000 4.8 CAIMMO 5 1/8 09/16 CA IMMOBILIEN AT0000A026P5 Financial AT 200,000,000 5.1 96.2 CASINO 0 06/23/11 CASINOS AUST AT0000A09HT1 Cyclical AT 150,000,000 6.1 CASINO 4 1/8 04/12 CASINOS AUST AT0000342886 Cyclical AT 180,000,000 4.1 94.8 CONPRV 0 12/21/12 CONSTANTIA PACK AT0000505789 Industrial AT 50,000,000 5.7 CROMOT 6 3/8 07/13 CROSS MOTOR AT0000A09YW0 Cyclical AT 75,000,000 6.4 99.2 NR CROSS 4 1/4 12/12 CROSS INDUST AT0000500905 Diversified AT 50,000,000 4.3 93.7 CROSS 6 7/8 12/49 CROSS INDUST AT0000500913 Diversified AT 60,000,000 6.9 CWTAV 5 1/4 04/13 CHRIST WATER AT0000A00Q29 Industrial AT 50,000,000 5.3 92.5 DCMDEC 6 1/8 07/13 DCM DECOMETAL AT0000A0A5E5 Basic Mats. AT 60,000,000 6.1 EGGER 5 7/8 03/09 FRITZ EGGER AT0000341003 Basic Mats. AT 100,000,000 5.9 99.8 EGGER 3 7/8 10/12 EGGER FINANZ AT0000499215 Basic Mats. AT 165,000,000 3.9 90.9 EGGER 0 11/29/49 EGGER HOLZWERK AT0000A00XK6 Basic Mats. AT 133,000,000 EVN 5 1/4 12/14/11 EVN ENERGIE XS0140090514 Utilities AT 300,000,000 5.3 100.6 A1 A EYBL4 7/8 10/28/12 EYBL INTER AT0000499793 Cyclical AT 60,000,000 4.9 90.0 FACC8 5/8 07/31/49 FISCHER ADVANCED AT0000A05TW8 Non-cyclical AT 40,000,000 8.6 FKAAV 3 7/8 06/12 FRAUENTHAL AT0000492749 Cyclical AT 70,000,000 3.9 94.2 HEADHO 8 1/2 02/14 HTM SPORT XS0184717956 Cyclical AT 119,500,000 8.5 46.0 Caa2 CCC KAERTN 5 1/2 05/09 KELAG ELEKTR. XS0147234479 Utilities AT 150,000,000 5.5 99.6 A+ KLASNR 5 1/4 03/14 KLAUSNER AT0000A04LG1 Basic Mats. AT 125,000,000 5.3 98.9 KTMG4 1/2 05/11/09 KTM AT0000342233 Cyclical AT 90,000,000 4.5 98.9 OBBINF 4.195 11/37 OBB INFRA XS0331427905 Financial AT 50,000,000 4.2 96.3 Aaa AAA OBND3 7/8 10/17/11 OBB INFRA XS0392808415 Industrial AT 1,000,000,000 3.9 100.1 Aaae AAAe OBND3 1/2 10/19/20 OBB INFRA XS0232778083 Industrial AT 1,000,000,000 3.5 89.1 Aaa AAA OBND4 7/8 06/27/22 OBB INFRA XS0307792159 Industrial AT 1,300,000,000 4.9 101.1 Aaa AAA OBRKRF 4 02/26/09 ENERGIE OBEROEST XS0094613709 Utilities AT 150,000,000 4.0 99.3 A+
Erste Group - CEE Credit Page 33 List of selected bonds
SELECTED AUSTRIAN BONDS (NON-FINANCIALS) ISIN Bond (EUR) Issuer Amount Coupon S&P Rating Outstanding Industry Sector Country of Risk Moody's Rating Price Indication
OBRKRF 4 1/2 03/25 ENERGIE OBEROEST XS0213737702 Utilities AT 300,000,000 4.5 86.2 A+ OEBB5 1/2 10/23/08 BRAU UNION AT0000396023 Non-cyclical AT 200,000,000 5.5 99.9 OMV 3 3/4 06/30/10 OMV AG AT0000341623 Energy AT 250,000,000 3.8 96.7 PFEIFE 7 1/4 12/10 PFEIFER BETEIL AT0000330485 Industrial AT 175,000,000 7.3 RFVERS5.7 12/29/49 RAIFFEISEN VERS AT0000341292 Financial AT 125,000,000 5.7 RHIAV 6 12/31/09 RHI AG AT0000443049 Industrial AT 72,360,000 6.0 SALZST 0 11/02/13 SALZBURGER STAD AT0000466834 Utilities AT 75,289,063 5.1 SBOAV 5 3/4 06/13 SCHOELLER-BLECK AT0000A09U24 Energy AT 20,000,000 5.8 SBOAV 5 7/8 06/15 SCHOELLER-BLECK AT0000A09U32 Energy AT 20,000,000 5.9 SOWA 6 07/04/09 SPAR OESTER. AT0000347729 Non-cyclical AT 150,000,000 6.0 99.8 SWARCO 8 1/8 06/49 SWARCO HOLDING AT0000A09JZ4 Industrial AT 30,000,000 8.1 97.9 SWIBAU 4.068 11/12 SWIETELSKY BAU AT0000501077 Industrial AT 30,000,000 4.1 92.8 SWIBAU 7 3/4 11/49 SWIETELSKY BAU AT0000A07LU5 Industrial AT 70,000,000 7.8 89.8 TKA 3 3/8 01/27/10 TELEKOM FINANZ XS0210629449 Comm. AT 500,000,000 3.4 97.1 A3 BBB+ TKA 5 07/22/13 TELEKOM FINANZ XS0172844283 Comm. AT 750,000,000 5.0 95.2 A3 BBB+ TKA 4 1/4 01/27/17 TELEKOM FINANZ XS0210629522 Comm. AT 500,000,000 4.3 86.1 A3 BBB+ VOEST 1 1/2 07/10 VOESTALPINE AG AT0000492905 Basic Mats. AT 37,500,000 1.5 117.5 VOEST 7 1/8 10/49 VOESTALPINE AG AT0000A069T7 Basic Mats. AT 1,000,000,000 7.1 81.5 WIEAV 3 7/8 04/12 WIENERBERGER AG XS0217731586 Industrial AT 400,000,000 3.9 85.6 Baa2 BBB WIEAV 6 1/2 02/49 WIENERBERGER AG DE000A0G4X39 Industrial AT 500,000,000 6.5 56.3 Ba1 BB+ WIENHG 3 5/8 11/12 WIEN HOLDING AT0000500764 Diversified AT 70,000,000 3.6 94.1 XXLUTZ 3.828 01/11 XXXLUTZ GMBH AT0000505961 Cyclical AT 50,000,000 3.8 95.7
Erste Group - CEE Credit Page 34 Published by Erste Bank der oesterreichischen Sparkassen AG, Neutorgasse 17, OE 0543, 1010 Vienna, Austria. Phone +43 (0)5 0100 - ext. Erste Bank Homepage: www.erstebank.at On Bloomberg please type: ERBK
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Erste Group - CEE Credit Page 35 Notes
Erste Group - CEE Credit Page 36 Contacts Group Research Head of Group Research Friedrich Mostböck, CEFA +43 (0)5 0100 - 11902 Cristian Mladin (Fixed income) +40 2 1312 6773 - 1028 CEE Equity Research Loredana Oancea (Equity) +40 2 1311 - 2754 Co-Head: Günther Artner, CFA +43 (0)5 0100 - 11523 Eugen Sinca (Fixed income) +40 2 1312 6773 - 1028 Co-Head: Henning Eßkuchen +43 (0)5 0100 - 19634 Raluca Ungureanu (Equity) +40 2 1311 - 2754 Günter Hohberger (Banks) +43 (0)5 0100 - 17354 Research, Slovakia Franz Hörl, CFA (Steel, Construction) +43 (0)5 0100 - 18506 Head: Juraj Barta (Fixed income) +42 1 24862 - 4166 Gernot Jany, CFA (Banks, Real Estate) +43 (0)5 0100 - 11903 Michal Musak (Fixed income) +42 1 24862 - 4512 Daniel Lion (IT) +43 (0)5 0100 - 17420 Maria Valachyova (Fixed income) +42 1 24862 - 4185 Martina Valenta, MBA (Transp., Paper) +43 (0)5 0100 - 11913 Christoph Schultes, CIIA (Ins., Util.) +43 (0)5 0100 - 16314 Research, Ukraine Vera Sutedja, CFA (Telecom) +43 (0)5 0100 - 11905 Viktor Stefanyshyn (Equity) +38 044 593 - 1784 Thomas Unger (Telecom) +43 (0)5 0100 - 17344 Svitlana Bazilevich (Equity) +38 044 593 - 9286 Vladimira Urbankova (Pharma) +43 (0)5 0100 - 17343 Maryan Zablotskyy (Fixed income) +38 044 593 - 9188 Gerald Walek, CFA (Machinery) +43 (0)5 0100 - 16360 International Equities Institutional Sales Hans Engel (Market strategist) +43 (0)5 0100 - 19835 Head of Sales Equities & Derivatives Ronald Stöferle (Asia) +43 (0)5 0100 - 11723 Michal Rizek +44 207 623 - 4154 Stephan Lingnau (Europe) +43 (0)5 0100 - 16574 Brigitte Zeitlberger-Schmid +43 (0)5 0100 - 83123 Macro/Fixed Income Research Equity Sales Vienna XETRA & CEE Head: Gudrun Egger (Euroland) +43 (0)5 0100 - 11909 Hind Al Jassani +43 (0)5 0100 - 83111 Alihan Karadagoglu (Corporates) +43 (0)5 0100 - 19633 Werner Fuerst +43 (0)5 0100 - 83121 Rainer Singer (US) +43 (0)5 0100 - 11185 Josef Kerekes +43 (0)5 0100 - 83125 Elena Statelov, CIIA (Corporates) +43 (0)5 0100 - 19641 Cormac Lyden +43 (0)5 0100 - 83127 Mildred Hager (SW, Japan) +43 (0)5 0100 - 17331 Stefan Raidl +43 (0)5 0100 - 83113 Macro/Fixed Income Research CEE Simone Rentschler +43 (0)5 0100 - 83124 Co-Head CEE: Juraj Kotian (Macro/FI) +43 (0)5 0100 - 17357 Sales Derivatives Co-Head CEE: Rainer Singer (Macro/FI) +43 (0)5 0100 - 11185 Christian Luig +43 (0)5 0100 - 83181 Editor Research CEE Manuel Kessler +43 (0)5 0100 - 83182 Brett Aarons +420 2 33005 - 904 Sabine Kircher +43 (0)5 0100 - 83161 Research, Croatia/Serbia Christian Klikovich +43 (0)5 0100 - 83162 Head:Mladen Dodig +38 1 112200 - 866 Armin Pfingstl +43 (0)5 0100 - 83171 Damir Cukman (Equity) +38 5 6237 - 2820 Roman Rafeiner +43 (0)5 0100 - 83172 Alen Kovac (Fixed income) +38 5 6237 - 1383 Equity Sales, London Davor Spoljar (Equity) +38 5 6237 - 2825 Dieter Benesch +44 207 623 - 4154 Research, Czech Republic Tatyana Dachyshyn +44 207 623 - 4154 Head: David Navratil (Fixed income) +420 2 24995 - 439 Jarek Dudko, CFA +44 207 623 - 4154 Petr Bartek (Real estate) +420 2 24995 - 227 Federica Gessi-Castelli +44 207 623 - 4154 Maria Hermanova (Fixed income) +420 2 24995 - 232 Declan Wooloughan +44 207 623 - 4154 Radim Kramule (Media) +420 2 24995 - 213 Sales, Croatia Martin Lobotka (Fixed income) +420 2 24995 - 192 Zeljka Kajkut (Equity) +38 5 6237 - 2811 Lubos Mokras (Fixed income) +420 2 24995 - 456 Damir Eror (Equity) +38 5 6237 - 2813 Jakub Zidon (Oil and Gas) +420 2 24995 - 340 Sales, Czech Republic Research, Hungary Michal Brezna (Equity) +420 2 24995 - 523 Head: József Miró (Equity) +36 1 235 - 5131 Ondrej Cech (Fixed income) +420 2 24995 - 577 Zoltan Arokszallasi (Equity) +36 1 235 - 5135 Michal Rizek +420 2 24995 - 537 Mihaly Tatar (Equity) +36 1 235 - 5134 Jiri Smehlik (Equity) +420 2 24995 - 510 Gergely Gabler (Equity) +36 1 235 - 5133 Pavel Zdichynec (Fixed income) +420 2 24995 - 590 Orsolya Nyeste (Fixed income) +36 1 373 - 2830 Sales, Hungary Research, Poland Gregor Glatzer (Equity) +36 1 235 - 5144 Head: Artur Iwanski (Equity) +48 2 23306 - 253 Krisztián Kandik (Equity) +36 1 235 - 5140 Magda Jagodzinska (Equity) +48 2 23306 - 250 Istvan Kovacs (Fixed income) +36 1 235 - 5846 Marcelina Hawryluk (Equity) +48 2 23306 - 255 Sales, Poland Tomasz Kasowicz (Equity) +48 2 23306 - 251 Head: Andrzej Tabor +48 2 23306 - 203 Piotr Lopaciuk (Equity) +48 2 23306 - 252 Pawel Czuprynski (Equity) +48 2 23306 - 212 Marek Czachor (Equity) +48 2 23306 - 254 Lukasz Mitan (Equity) +48 2 23306 - 213 Research, Romania Jacek Krysinski (Equity) +48 2 23306 - 218 Head: Lucian Claudiu Anghel +40 2 1312 - 6773 Sales, Slovakia Mihai Caruntu (Equity) +40 2 1311 - 2754 Head: Dusan Svitek +42 1 24862 - 5620 Dumitru Dulgheru (Fixed income) +40 2 1312 6773 - 1028 Rado Stopiak (Derivatives) +42 1 24862 - 5601 Melania Hancila (Fixed income) +40 2 1312 6773 - 1028 Andrea Slesarova (Client sales) +42 1 24862 - 5627 Treasury - Erste Bank Vienna Sales Retail & Sparkassen Head: Manfred Neuwirth +43 (0)5 0100 - 84250 Helmut Kirchner +43 (0)5 0100 - 84144 Equity Retail Sales Christian Skopek +43 (0)5 0100 - 84146 Head: Kurt Gerhold +43 (0)5 0100 - 84232 Markus Pistracher +43 (0)5 0100 - 84100 Domestic Sales Fixed Income Fixed Income Institutional Desk Head: Thomas Schaufler +43 (0)5 0100 - 84225 Head: Thomas Almen +43 (0)5 0100 - 84323 Treasury Domestic Sales Martina Fux +43 (0)5 0100 - 84113 Head: Gottfried Huscava +43 (0)5 0100 - 84130 Michael Konczer +43 (0)5 0100 - 84121 Corporate Desk Ingo Lusch +43 (0)5 0100 - 84111 Head: Leopold Sokolicek +43 (0)5 0100 - 84601 Lukas Linsbichler +43 (0)5 0100 - 84345 Alexandra Blach +43 (0)5 0100 - 84141 Karin Rauscher +43 (0)5 0100 - 84112 Roman Friesacher +43 (0)5 0100 - 84143 Michael Schmotz +43 (0)5 0100 - 84114
Erste Group - CEE Credit Page 37