Anlarop Development AG Development AG_Kalliwoda_Analysis… · SETEC Stiftung 63,70% MI Group Ltd 12,50% ADAG LLC 6,10% Free float 17,70% ... 1 Company profile ... air. T he company

∎ Anlarop Development AG is a Swiss holding company engaged in solutions for the

nutrition and environment sectors. The company owns the full capital of the subsidiaries Babys Life Deutschland GmbH, which manufacture the world´s first nutritional supplement drink for pregnant women and ISS Global AG which is engaged in solutions to purify breathing air in sectors of particulate matter and ultra-particulate matter.

∎ It is estimated that 97% of the all pregnant women in Germany consume regularly nutritional supplements. The market is mainly served by traditional products as capsule and tablets. In this framework, Babys Life innovative drink for pregnant women, might ranks has new concept much safer and natural. Babys Life is the first substantial change for nutritional supplements for pregnant women and will become the new benchmark in this market sector.

∎ With its development in Photocatalytic active material for air cleaning, a promising intangible asset, the young ISS Global AG intend to provide sustainable breathing air solutions in the glass, automotive, solar and consumer electronics industry. The result stemmed from basic research and investments in the ECARC (European clean air research center) based inside the Medical University of Vienna, one of the world´s leading medical universities. Funds needed for ECARC amounted to €5.2m.

∎ The early stage of both Babys Life and ISS Global implies the consideration of some risks. Additionally to the risks of the holding management companies, we underline uncertainty of product development and in the pipeline stages, and ongoing regulations issues. Key growth drivers for Anlarop might be the leverage on strategic partnerships (R&D, sales and marketing), and the challenge in raising capital.

∎ In FY 2013 revenues were streamed from the sell of shares of the ISS Global AG and Anlarop Development AG. As July 2015 Alarop Development has no debt. The IPO will be in the Marché Libre (France) on July 15th 2015. It was recorded a pre-IPO price of €3 per shares.

∎ We assessed Analrop with our DCF model. Although we consider for both the subsidiaries risks related to the early stage development and market risks as direct competition with multinationals, our analysis point out the potential that might stem from the development and sales of Babys Life´s pregnancy drink and ISS solutions. The global framework to reduce healthcare costs and environmental issues represent a deep market for ISS Global both in Europe and in emerging market as China. Thus, we released for Anlarop a buy recommendation with a 12-months enterprise value of €40m.

∎ Key Figures

in CHFm 2013 2014 2015E 2016E 2017E

Net sales 1,20 0,01 7,20 34,90 93,00EBITDA 0,69 -0,37 2,54 10,93 36,56EBIT 0,69 -0,38 2,52 10,82 36,27Net income 0,46 -0,35 2,09 8,98 30,10

EPS 0,07 -0,05 0,31 1,34 4,49BVPS 0,13 0,13 0,44 1,33 5,08

RoE 71,82% -40,00% 109,08% 150,97% 140,11%P/E neg -57,76x 9,63x 2,24x 0,67xP/BVPS 23,10x 23,10x 6,80x 2,25x 0,59xEV/EBITDA 29,17x -54,47x 7,90x 1,84x 0,55x

Source: Dr. Kalliwoda International Research GmbH

Innovative businesses with high potential

July 14th, 2015 Europe | Switzerland | Nutrition and Environment

Initial Coverage

BUY

Target price: EUR 6.16 Overview Industry: Nutrition and EnvironmentCountry SwitzerlandISIN: CH0121668229Website: www.anlarop.com

Last price (Pre-IPO) 3,00Number of shares (m) 6,70

Shareholder structure

SETEC Stiftung 63,70%MI Group Ltd 12,50%ADAG LLC 6,10%Free float 17,70%

GoingPublic Country FranceGoingPublic Segment Marché LibreGoingPublic Date July 15th 2015

Analyst Dr. Norbert Kalliwoda Email: [email protected] Phone: +49 69 97 20 58 53 www.kalliwoda.com

Anlarop Development AG

2 Anlarop Development AG | Initial coverage | July 2015

Dr. Kalliwoda International Research GmbH

Content

1 Company profile ............................................................................................................................... 3

2 Shareholders ..................................................................................................................................... 4

3 Valuation ........................................................................................................................................... 5

4 Outlook.............................................................................................................................................. 5

5 Management...................................................................................................................................... 6

5. Market and Trends .............................................................................................................................. 7

5.1 Nutrition and Health Industry ......................................................................................................... 7

5.2 Active Coatings and Purufucation of Breathing Air ...................................................................... 9

6. Strategy................................................................................................................................................. 9

7. Outlook ................................................................................................................................................11

6 Profit and loss statements ................................................................................................................12

7 Balance sheets ..................................................................................................................................13

8 Cash flow statements........................................................................................................................14

9 Financial ratios ................................................................................................................................14

Essential information, disclosures and disclaimer ............................................................................17



1 Company profile With the aim to support its subsidiaries in the sustainable and value-creating corporate strategies, Anlarop

Development AG is a holding management company with focus in the nutrition and environmental sectors. The

company holds two main participations: Babys Life Deutschland GmbH and ISS Global AG.

Its subsidiary Babys Life developed a unique nutritional supplement drink for pregnant women. The company

intends to cover the daily demand for vital substances in a safe and comfortable way.

Thus, the more nutrients absorption Babys Life pregnancy drinks might become

substitute to traditional and uncomfortable capsule and tablets. Babys Life has the aim

to become the number one in the market sector for liquid nutritional supplements for

pregnant women.

According to the Nutrition Business Journal report the global market for nutrition and supplements reached

USD96bn in 2012 and USD 104bn in 2013. With a target value of USD179.8 bn in 2022, the company

Persistence Market Research, is expected a CAGR of 7.4% from 2014 to 2020 in the global dietary supplement

market. For Euromonitor, main three markets by value are U.S., China and Japan. Inside the nutritional

supplements for expectant mothers, the data published from the IMS World Review Executive showed an

increase of 6% in 2013 global sales. This performance is confirmed by Nestlé revenues in the nutritional

supplements, which reached a global turnover of over €8bn in 2013.

ISS Global AG is a young company which aims to develop active surface coating used to purify the breathing

air. The company is engaged in the research development of breathing air materials for viruses, allergens, gases,

microorganisms and radioactive. The cooperation with the Medical University of Vienna, where ISS developed a

European clean air research center, increased the quality of the technology and left to ISS the unique opportunity

to have access at the University resource network. The next step is to develop a product for industrial use based

one the laboratory product. The company has intensive cooperation negotiations with major industrial partner.



Anlarop Development AG - Structure

Source: Company data

2 Shareholders

Source: Company data, Dr. Kalliwoda International Research GmbH



3 Valuation In order to value Analrop Development AG, we have used our DCF model, which derives a 12-months price

target for the stock of €6.16 (tax rate 17% and WACC of 15.3%).

DCF model

Discounted Cash Flow Model (Basis 7/2015)

in CHFm 2014 2015E 2016E 2017E 2018E 2019ENe t sales 0,01 7,20 34,90 93,00 165,00 238,00 (y-o-y change) -99,2% 71900,0% 384,7% 166,5% 77,4% 44,2%

EBIT -0,38 2,52 10,82 36,27 56,10 75,21

(EBIT margin) -3810,0% 35,0% 31,0% 39,0% 34,0% 31,6%NOPLAT -0,34 2,09 8,98 30,10 46,56 62,42+ Depreciation 0,01 0,02 0,11 0,29 0,52 0,75= Net operating cash f low -0,33 2,11 9,09 30,40 47,08 63,17- Total investments (Capex and WC) -0,13 -0,01 -0,10 -0,15 -0,51 -0,24 Capital expenditure 0,00 0,00 -0,20 -0,20 -0,20 -0,20 Working capital -0,13 -0,01 0,10 0,05 -0,31 -0,04= Free cash f low (FCF) -0,46 2,11 8,99 30,24 46,57 62,93PV of FCF's -0,40 1,59 5,87 17,14 22,90 26,85

Enterpris e value (EV) 35,83+ Net cash / - net debt (31 March 2013) 0,00+ Investments / - Minorities 0,00

Share holde r value 35,83

Number of shares outstanding (m) 6,70

WA CC 15,3%Fair value pe r s hare in CHF (today) 5,35Fair value pe r s hare in CHF (in 12 m onths) 6,16

Source: Dr. Kalliwoda International Research GmbH

4 Outlook

Despite the early stage in the subsidiaries development, the nutrition and environment industries are both

challenging areas in which to begin a startup venture. One of the challenges for the success of Babys Life

pregnancy drink in the coming steps it will be the development of strategic partnerships with multinational

companies in the field of research and development, sales and marketing. The development of a strategy to

address this challenge and to optimize holding management economy is fundamental for Anlarop future growth.

As innovative and sustainable businesses, Anlarop has the opportunities to catch good market positions,

especially with Babys Life pregnancy drink and ISS breathing air solutions in the glass industry. We find

positive that the company has already inquiries for distributing Babys Life in UK, Russia, Spain and Portugal



and has got a LOI for the Spanish Latin Region with a well-known pharmaceutical company based in South

America. In our estimates, we took also in account ISS Global expansion in Germany, as well as overall in

Europe. The management vision to extend internationally the businesses seems the right way to establish a

sustainable growth.

Based on our DCF model, we released a BUY recommendation with a 12-months target price of €6.16. This

corresponds to an upside of +105.3% compared to the pre-IPO price.

5 Management

Marc Wallendorf, Chairman, who joined the Anlarop Development AG in 2010 as Chairman. He had also

experience as consultant in private equity, in addition to assisting emerging growth companies in attaining public

status and financing. His work encompassed capital formation, corporate financial and strategy advisory

services, and mergers and acquisitions.

Claudia Brodhage-Becker, born in 1973, managing director of Babys Life Deutschland GmbH. Mrs. Brodhage-

Becker studied Biomedical Engineering at the University of Applied Sciences in Aachen. After studying, she

worked in several executive positions in the financial area until she joined Babys Life Deutschland GmbH in

November 2012.

Kieron E. Gavaghan, born in 1982, key account manager for the implementation of the new category

"pregnancy drink" for Babys Life Deutschland GmbH. Mr. Gavaghan went to the Ludwig Erhard College, where

he received a letter of reference from the director of education. After college, he joined Avent, which was

acquired by Philips in May 2006. Wihtin Avent, Mr Gavaghan hold several executive positions until he became

key account manager professional, being responsible for the implementation of a new product category in the

pain management. Mr. Gavaghan will be soon next deputy Managing Director in Babys Life Deutschland

GmbH.

ECARC - European Clean Air Research Center - being responsible for the operations of ISS Global AG,

works together with globally established research teams, ensuring access to extensive technical and experimental

research equipment. Formerly based in the University of Vienna, Austria, the ECARC - European Clean Air

Research Center plans to continue its work - especially towards the industrialisation of the lead product - at the

University of Duisburg, Germany.

The Anlarop Development AG - including its fully-owned participations - has a total staff of 14 employees.



5. Market and Trends

5.1 Nutrition and Health Industry Market

According to Euromonitor, the world market size of micronutrients, based on retails sales, has been 1.450 billion

Euro in 2013. The following chart shows the revenue break-down in billion Euro:

There are four main drivers for the long-term growth of micronutrients:

1. Global Aging

Due to the Global Aging of the world's population, healthcare-costs are rising. This stimulates preventive health

and wellness treatments - also via nutrition.

2. Health claims

The regulations in the food and beverage industry have become even stricter in the past years. This includes,

among others, monitored obligations in labelling. At the same time, consumer got more and more sensitive

regarding the ingredients and the composition of their food. Hence, quality science became a key to build and

protect consumer brands.

3. Transparency

Consumers seek to know and understand what they eat and drink. This awareness makes quality key to integrity

of brands and companies.

4. Urbanization

The consumption of processed foods, as a result of the Urbanization, created a counterculture, namely bio-food.



Trends

Although the vitamins and dietary supplements (VDS) industry is increasingly focused on the growing elderly

population with more products targeted towards healthy aging, there is a tremendous opportunity in the

paediatric and prenatal supplements market. Paediatric and prenatal supplements are increasingly used to

optimize healthy physical and mental development. Globally, paediatric VDS and pregnancy multivitamins

continue to outpace the total VDS market. Together, retail value sales of these products reached US$4.7 billion

worldwide in 2013. For the next years, market outperformance is expected as the understanding of the

importance of proper nutrition on healthy development improves, along with increasing disposable incomes and

a shift in the parental demographic.

It is common knowledge that nutrition is essential to a child’s development. Modern scientific advancements

have allowed a deeper insight: one of the most significant recent findings demonstrates how a women’s diet,

including right at the time of conception, can alter a baby’s genes permanently. In the study “Maternal nutrition

at conception modulates DNA methylation of human metastable epialleles” published by Nature

Communications in April 2014, a team of scientist found that nutrition can impact whether or not certain genes

are activated in early embryonic development. More specifically, the deficiency of several B vitamins and

nutrients associated with them is correlated with lower levels of methylation in a set of six genes. Currently,

almost all obstetricians in the EUR and the US recommend that pregnant women take prenatal vitamins to

support healthy growth and reduce the chances of birth defects.

The increasing demand for supplements targeted towards children is generally consistent across the globe. All

regions, except Latin America, have experienced solid gains in retail value sales of both paediatric VDS and

pregnancy multivitamins. logo



5.2 Active Coatings and Purification of Breathing Air Market

There are several types of chemically active organic coatings, which rely on controlled chemical

(electrochemical, biochemical, photochemical) processes. Because of growing environmental concerns, their

efficiency and toxic characteristics deserve special attention and, in the majority of cases, are the objects of

corresponding regulations. Traditional types of chemically active coatings are anticorrosive, rust-conversion, fire

retardant, wood bio-protecting and antifouling.

A more recent type of coating is the photocatalytic coating - among others with the aim of purifying breathing

air. One of the market leaders in this sector is the US based PURETi Group, LLC, that offers treatments of roads

and buildings to eat smog and reverse pollution by reducing criteria pollutants such as NOx and PM 2.5.

Globally seen, one of the strongest demands for those solutions comes from China, where smog became a real

issue. Air purification and deodorisation equipment faces strong demand and according to recent studies, only

the private households demand generates a market volume of almost 20 billion Euro. Obviously, governmental

institutions are funding that type of equipment, too.

Trends

Actually, air purifiers were sold already in the 1950s and 60s and they already became mainstream in the 1970s

and 80s. A market study made published by Honeywell International shows the global Air Purifier Consumer

Trends.

6. Strategy In this Research Report we solely focus on the company's strategy to launch and establish the "Babys Life

Pregnancy Drink", the lead product of Babys Life Deutschland GmbH.

The launch-presentation will take place on expopharm, the largest pharmaceutical trade fair in Europe. Between

September 30th and October 3rd, the major manufacturers will present their latest innovations in the industry.

In addition, high-profile politicians and health professional representatives will be on site to provide the

foundations for the future of the market. All in all, this fair will attract more than 27.000 visitors and additional

3.000 professional visitors and pharmacy decision makers from all around the world. Hence, we believe that

expopharm is the right place to introduce Babys Life Pregnancy Drink to the market.

The management of Babys Life Deutschland GmbH defined three key factors for the successful market

penetration of Babys Life.

1. consumer activation

2. professional sponsors and opinion leaders

3. distribution and availability

Due to the early financial stage of the company, the management of Babys Life decided to start distribution and

promotion of its lead product in Germany.



Media

Therefore, Babys Life already negotiated notable cooperations with key media such as the magazin "Eltern"

(parents), the guidebook "Schwanger in meiner Stadt" (pregnant in my city) and several other publications such

as "Baby & Junior", "Rundezeit" (round time) or "Wo bekomme ich mein Baby" (where do I give birth to my

baby). The management of Babys Life will also be present on specialized fairs and events for expectant mothers

and resellers.

Professional Partnerships

Babys Life already reached a partnership with an established Industry partner with over a century of experience

in the Pregancy and Babys sector accessing to a pool of 4.000 midwifes, reaching up to 50.000 pregnant women

with a product sampling mix.

Furthermore, Babys Life already started approaching Key Opinion Leaders such as gynecologists, specialized

medical practices and fertility clinics.

Distribution

Babys Life, as premium upscale brand will be sold exclusively in pharmacies and very few selected online-

shops. Therefore, Babys Life's main partner will be a 2009-established net of over 12.000 pharmacies focused on

baby-related products. At any case, Babys Life shall be available in round 21.500 pharmacies.

Forecast

Still in 2015, Babys Life aims to sell 1.575.000 units of Babys Life pregnancy drink for a price of 2,89 Euro per

unit, resulting into gross revenues of 4,55 million Euro. For 2019, the company expects sales of 19.600.000

units, generating gross sales of 56,64 million Euro.

The chart below shows the forecast of sold units until 2019, estimating a CAGR of 87,82% between 2015 and

2019:



7. Outlook

Despite the early stage in the subsidiaries development, the nutrition and environment industries are both

challenging areas in which to begin a startup venture. One of the challenges for the success of Babys Life

pregnancy drink in the coming steps it will be the development of strategic partnerships with multinational

companies in the field of research and development, sales and marketing. The development of a strategy to

address this challenge and to optimize holding management economy is fundamental for Anlarop future growth.

As innovative and sustainable businesses, Anlarop has the opportunities to catch good market positions,

especially with Babys Life pregnancy drink and ISS breathing air solutions in the glass industry. We find

positive that the company has already inquiries for distributing Babys Life in UK, Russia, Spain and Portugal

and has got a LOI for the Spanish Latin Region with a well-known pharmaceutical company based in South

America. In our estimates, we took also in account ISS Global expansion in Germany and overall in Europe,

given as well the fact that by 2050 world populations will be increased to 9.6 billion people. The management

vision to extend internationally the businesses seems the right way to establish a sustainable growth.

Based on our DCF model, we released a BUY recommendation with a 12-months target price of €6.16. This

corresponds to an upside of +105.3% compared to the pre-IPO price.

The market for air purifiers has been witnessing moderate growth during the past few years. Growing awareness

about various respiratory diseases, such as asthma and chronic obstructive pulmonary disease (COPD), caused

due to air pollution is significantly propelling the demand for air purifiers worldwide. Several governments are

organizing various awareness campaigns as a part of their efforts to reduce air pollution and ensure safe indoor

environment, which is expected to boost sales of air purifier units across all segments.

According to recently published report by TechSci Research , the global air purifier market is projected to

register a CAGR of around 9% during 2014-19.



6 Profit and loss statements

in CHFm 2013 2014 2015E 2016E 2017ENet sales 1,20 0,01 7,20 34,90 93,00

Total Output 0,00 0,00 0,01 0,03 0,09Cost of goods sold -0,34 -0,13 -0,40 -1,10 -3,05

Gross profit 0,86 -0,12 6,80 33,80 89,95Personnel costs -0,08 -0,09 -2,38 -1,85 -1,92Depreciation & Amortization 0,00 -0,01 -0,02 -0,11 -0,29Other operating expenses -0,09 -0,16 -1,88 -21,02 -51,47

EBIT 0,69 -0,38 2,52 10,82 36,27Net financial results -0,02 -0,01 -0,01 -0,01 -0,01

EBT 0,66 -0,39 2,52 10,81 36,27Income taxes -0,04 0,04 -0,43 -1,84 -6,17Extraordinary items -0,16 0,00 0,00 0,00 0,00

Net income / loss 0,46 -0,35 2,09 8,98 30,10

EPS 0,07 -0,05 0,31 1,34 4,49

Change y-o-y

Net sales n.a. -99,17% 71900,00% 384,72% 166,48%

Total Output n.a. -99,17% 71900,00% 384,72% 166,48%Cost of goods sold n.a. -62,86% 220,00% 175,00% 177,27%Gross profit n.a. -113,34% -6013,04% 397,06% 166,12%Personnel costs n.a. 7,90% 2544,44% -22,27% 3,78%Depreciation & Amortization n.a. 219,49% 87,99% 384,72% 166,48%Other operating expenses n.a. 82,76% 1044,78% 1019,70% 144,84%EBIT n.a. -155,60% -761,42% 329,33% 235,24%Net financial results n.a. -75,89% 0,00% 0,00% 0,00%EBT n.a. -158,08% -751,55% 329,98% 235,35%Income taxes n.a. -190,70% -1225,13% 329,98% 235,35%Extraordinary items n.a. -100,00% n.a. n.a. n.a.Net income / loss n.a. -175,71% -699,84% 329,98% 235,35%EPS n.a. -175,71% -699,84% 329,98% 235,35%

Share in total sales

Net sales 100,00 % 100,00 % 100,00 % 100,00 % 101,00 %Total Output 0,10 % 0,10 % 0,10 % 0,10 % 0,10 %Cost of goods sold -28,08 % -1250,00 % -5,56 % -3,15 % -3,28 %Gross profit 71,92 % -1150,00 % 94,44 % 96,85 % 96,72 %Other operating income 0,00 % 0,00 % 0,00 % 0,00 % 0,00 %Personnel costs -6,96 % -900,00 % -33,06 % -5,30 % -2,06 %Depreciation & Amortization -0,31 % -120,00 % -0,31 % -0,31 % -0,31 %Other operating expenses -7,49 % -1640,00 % -26,08 % -60,23 % -55,34 %EBIT 57,17 % -3810,00 % 35,00 % 31,00 % 39,00 %Net financial results -1,73 % -50,00 % -0,07 % -0,01 % -0,01 %EBT 55,44 % -3860,00 % 34,93 % 30,99 % 38,99 %

Profit and loss statement - Anlarop Development AG

Fiscal year

Income taxes -3,50 % 380,00 % -5,94 % -5,27 % -6,63 %Extraordinary items -13,60 % 0,00 % 0,00 % 0,00 % 0,00 %Net income / loss 38,34 % -3480,00 % 28,99 % 25,72 % 32,37 %

Dr. Kalliwoda | Research © 2015 Source: Company data, Dr. Kalliwoda International Research GmbH



7 Balance sheets

in CHFm 2013 2014 2015E 2016E 2017E Assets Cash and cash equivalents 0,32 0,19 2,26 8,08 32,88Other current assets -0,15 0,02 0,06 0,07 0,18

Current assets 0,17 0,21 2,32 8,15 33,06 Rights, patents and licenses 0,50 0,50 0,50 0,70 0,90Partecipation 0,25 0,25 0,25 0,25 0,30Financial assets 0,02 0,02 0,04 0,14 0,28Other assets 0,01 0,01 0,01 0,02 0,02

Non-current assets 0,78 0,78 0,80 1,10 1,50

Total assets 0,94 0,99 3,12 9,26 34,56

Liabilities

Trade payables 0,00 0,00 0,01 0,01 0,04Other short-term liabilities 0,07 0,11 0,14 0,24 0,37Short-term bank debt 0,00 0,00 0,02 0,07 0,12

Total liabilities 0,07 0,12 0,16 0,32 0,53

Shareholders equity 0,87 0,87 2,96 8,93 34,03

Total equity and liabilities 0,94 0,99 3,12 9,26 34,56

Dr. Kalliwoda | Research © 2015

Balance sheet - Anlarop Development AG

Fiscal year




8 Cash flow statements

in CHFm 2013 2014 2015E 2016E 2017E Net income / loss 0,46 -0,35 2,09 8,98 30,10Depreciation & Amortization 0,00 0,01 0,02 0,11 0,29Change of working capital -0,14 -0,13 -0,01 0,10 0,05Others 39,11 0,00 0,00 0,00 0,00

Net operating cash flow 39,43 -0,46 2,10 9,18 30,44

Cash flow from investment -5,13 0,00 0,00 -0,20 -0,20Free cash flow 34,31 -0,46 2,10 8,98 30,24

Cash flow from financing -0,89 0,33 -0,03 -3,17 -5,44

Change of cash 33,42 -0,13 2,08 5,82 24,80Cash at the beginning of the period #BEZUG! 0,32 0,19 2,26 8,08Cash at the end of the period 0,32 0,19 2,26 8,08 32,88

Dr. Kalliwoda | Research © 2015

Cash flow statement - Anlarop Development AG

Fiscal year


9 Financial ratios

Fiscal year 2013 2014E 2015E 2016E 2017EGross margin 71,92% -1150,00% 94,44% 96,85% 96,72%EBITDA margin 57,48% -3690,00% 35,31% 31,31% 39,31%

EBIT margin 57,17% -3810,00% 35,00% 31,00% 39,00%Net margin 38,34% -3480,00% 28,99% 25,72% 32,37%Return on equity (ROE) 71,82% -40,00% 109,08% 150,97% 140,11%Return on assets (ROA) 67,71% -35,54% 101,90% 145,11% 137,42%Return on capital employed (ROCE) 73,80% -39,48% 70,72% 100,52% 88,46%Net debt (in EURm) 0,00 0,00 0,00 -0,01 -0,03

Net gearing -36,31% -21,67% -76,08% -89,75% -96,28%Equity ratio 92,17% 88,28% 94,74% 96,51% 98,48%Current ratio 2,26 1,80 14,16 25,22 62,91Quick ratio 4,27 1,63 13,81 25,01 62,57Net interest cover 33,05 -76,20 504,00 2163,80 7254,00Net debt/EBITDA -0,46 0,51 -0,88 -0,73 -0,90Tangible BVPS 0,13 0,13 0,44 1,33 5,08

Capex/Sales 0,00% 0,00% 0,00% -0,57% -0,21%Working capital/Sales -18,56% -965,50% -1,27% -0,54% -0,25%

EV/Sales 16,77 2009,80 2,79 0,58 0,22EV/EBITDA 29,17 -54,47 7,90 1,84 0,55EV/EBIT 29,33 -52,75 7,98 1,86 0,55P/Tangible BVPS 23,10 23,10 6,80 2,25 0,59P/E 43,73 -57,76 9,63 2,24 0,67P/FCF 0,00 -0,04 0,01 0,00 0,66 Source: Company data, Dr. Kalliwoda International Research GmbH





Primary Research │Fair Value Analysis │International Roadshows

Arndtstr. 47 60325 Frankfurt Tel.: 069-97 20 58 53 Fax: 069-13 81 92 15 Head:

Dr. Norbert Kalliwoda E-Mail: [email protected]

CEFA-Analyst; University of Frankfurt/Main; PhD in Economics; Dipl.-Kfm.

Sectors: IT, Software, Electricals & Electronics, Mechanical Engineering, Logistics, Laser, Technology, Raw Materials

Dr. Peter Arendarski E-Mail: [email protected]

Senior-Analyst, Msc & Ph.D in Finance (Poznan Univers. of Economics),CFA Level 3 Candidate

Sectors: Technology,Raw Materials, Banks & Insurances, Financial-Modelling (Quant., Buyside)

Patrick Bellmann E-Mail: [email protected]

Junior-Analyst; WHU - Otto Beisheim School of Management, Vallendar

Sectors: Support Research and Quantitative Approach

Robin Andreas Braun E-Mail: [email protected]

Junior-Analyst; University of Frankfurt/Main

Sectors: Support Research and Quantitative Approach

Michael John E-Mail: [email protected]

Dipl.-Ing. (Aachen) Sectors: Chemicals, Chemical Engineering, Basic Metals, Renewable Energies, Laser/Physics

Olaf Köster E-Mail: [email protected]

Dipl.-Betriebswirt, EBS Sectors: Renewable Energy/Technology

Christoph Löffel E-Mail: [email protected]

Bachelor Betriebswirtschaftslehre Universität Mannheim

Sectors: Financials, Real Estate

Dario Maugeri E-Mail: [email protected]

Master of Science in Corporate Finance; Rotterdam School of Management

Sectors: Automotive, Technology

Dr. Christoph Piechaczek E-Mail: [email protected]

Dipl.-Biologist; Technical University Darmstadt; Univ. Witten-Herdecke.

Sectors: Biotech & Healthcare; Medical Technology Pharmaceutical

Nele Rave E-Mail: [email protected]

Lawyer; Native Speaker, German School London,

Legal adviser

Hellmut Schaarschmidt; E-Mail: [email protected]

Dipl.-Geophysicists; University of Frankfurt/Main.

Sectors: Oil, Regenerative Energies, Specialities Chemicals, Utilities

Dr. Erik Schneider E-Mail: [email protected]

Dipl.-Biologist; Technical University Darmstadt; Univ. Hamburg.

Sectors: Biotech & Healthcare; Medical Technology Pharmaceutical

Alejandro Silva E-Mail: [email protected]

Dipl.-Betriebswirt, Universität Zaragoza, CAIA Level II Candidate

Sectors: Basic Materials, Oil&Gas, Renewables

Hans-Georg Sutter E-Mail: [email protected]

Dipl.-Wirtschaftsingenieur University Kaiserslautern

Sectors: IT/e-commerce

Rainer Wochele E-Mail: [email protected]

Bachelor of Science in Economics and Business Administration (Goethe University Frankfurt M. / Graduation Fall 2013)

Junior-Analyst

Also view Sales and Earnings Estimates: DR. KALLIWODA │ RESEARCH on Terminals of Bloomberg, Thomson Reuters, vwd group and Factset

Analyst of this research: Dr. Norbert Kalliwoda, CEFA



Essential information, disclosures and disclaimer

Essential information, disclosures and disclaimer

A. Essential information

The investments in financial instruments and securities (e.g. equities, bonds) generally involved on high risks. It is possible that the investors lose some or all of the invested money. Potential investors should be aware of the fact that the prices of securities could fall and rise. The income from such an investment might be considerable fluctuations. Investment strategies are not appropriate at all times and past results are not a guarantee for the future performance. Investors should make their own and independent decisions as to whether a risky investment.

B. Disclosures according to Section 34b of the German Securities Trading Act (WpHG) and to the German Regulation governing the Analysis of Financial Instruments (FinAnV).

I. Information about author, company held accountable, regulatory authority:

Company responsible for the content of this document: DR. KALLIWODA INTERNATIONAL RESEARCH GmbH, Frankfurt am Main, Germany.

Regulatory authority for DR. KALLIWODA INTERNATIONAL RESEARCH GmbH is the Federal Financial Supervisory Authority (BaFin), Graurheindorfer Straße 108, 53117 Bonn, Germany and Lurgiallee 12, 60439 Frankfurt am Main, Germany.

Author of this research: Dr. Norbert Kalliwoda, Analyst, CEO and founder of DR. KALLIWODA INTERNATIONAL RESEARCH GmbH.

II. Additional Information:

1. Sources of information:

Essential sources of information for the compilation of this document are publications from domestic and international information services and media (e.g. Bloomberg, dpa-AFX, Reuters, VWD, among others), financial press (e.g. Allgemeine Zeitung Frankfurter, Börsenzeitung, Financial Times Handelsblatt and others), specialized trade press, published statistics, rating agencies as well as publications by peer group companies and the company itself. Additionally, conservation has been held with the management of the company. This document was made available to the company before publishing to ensure the correctness of the information provided.

2. Summary of the basis of valuation principles and methods used to prepare this document:



Within the scope of the evaluation of companies the following valuation methods are applied: Multiple-based models (Price/Earnings, Price/Cash-flow, Price/Book value, EV/Sales, EV/EBIT, EV/EBITDA), peer group comparisons, historic valuation methods, discounting models, sum-of-the-parts-approaches, substance-valuation methods and swot-analyses. The valuation principles and models are dependent on macroeconomic factors, such as interest rates, exchange rates, raw materials and on basic assumptions about the economy. Besides, the market moods and market sentiment affects the valuation of enterprises. The approaches are based on expectations that could change rapidly and without advance warning according on developments specific to individual branch. The valuation results and fair values derived from the models might therefore change accordingly.

The ratings are the evaluation results and refer to a fair value pricing reflecting a time-horizon of up general relate to a twelve-months. Nevertheless, evaluation results are subject to changing market conditions and constitute merely a snapshot. The evaluation results and fair values may be reached faster or slower than expected by the analysts. The results and fair values may to be scale upwards or downwards.

DR. KALLIWODA INTERNATIONAL RESEARCH GmbH uses the following rating model:

BUY: Based on our analysis, we expect the stock to appreciate and produce a total return of at least 10% over the next twelve months

ACCUMULATE: Based on our analysis, we expect the stock to appreciate and produce a total return between 5%- 10% over the next twelve months

HOLD: Based on our analysis, we expect the stock to produce a total return between -5% and +5% over the next twelve months

REDUCE: Based on our analysis, we expect the stock to cause a negative return between -5% and -10% over the next twelve months

SELL: Based on our analysis, we expect the stock to cause a negative return exceeding -10% over the next twelve months

3. Date of first publication of this document: 15th of July 2015

4. Updates:

A specific update of this document has currently not been set. The research reflects the author’s judgement on the date of this publication and is subject to change without any notice. The document might be incomplete or reduced and it may not contain all information concerning the company covered. It is in the sole decision of DR. KALLIWODA INTERNATIONAL RESEARCH GmbH whether and when a potential update of this research is made.

III. Disclosures about potential conflicts of interest:

The business model of DR. KALLIWODA INTERNATIONAL RESEARCH GmbH is based on economic relationships with issuer company and equity transactions to be performed relating to the issuer´s stock. Dr. Kalliwoda Research has entered into an agreement about the creation of this document with the company which is, or whose financial instruments are the issue of this research.

Conflicts of interest may be in existence with employees of DR. KALLIWODA INTERNATIONAL| RESEARCH GmbH who are the authors of this document as well as other persons that were involved in the preparation of this research or related parties.



Following conflicts of interest might exist:

1. DR. KALLIWODA INTERNATIONAL RESEARCH GmbH employees or other persons that were involved in the

preparation of this document or related parties might have a major shareholding (holding more than 5%) of the share capital of the emitter that is, or whose financial instruments are, the subject of the research.


preparation of this document or related parties are possibly holders of instruments that are mentioned in this research (or that are linked to these instruments) or might become holders and could regularly trade the emitter´s securities or securities based on these issues as principal or agent.


preparation of this document or related parties could have participated in leading a consortium for the emitter via a public offering of the financial instruments that are the subject of this research.


preparation of this document or related parties might have been party to an agreement on the provision of investment banking services with the emitter which is the subject of this research, or have received services or a pledge to perform under the terms of such an arrangement during the same period.


preparation of this document or related parties may have other substantial economic interests concerning to the emitter which is the subject of this research.


preparation of this document or related parties might have been party to an agreement with the company, which is the subject of this research, resulting in receiving the compensation for preparation of this research.


preparation of this document or related parties received the feedback concerning the company profile and SWOT from the company, which is the subject of this research, before publishing this report to the public.

Important: Please get familiar with possible risks and possible conflicts of interest in the disclosure and disclaimer at the end of this report, especially for this report: 6. and 7.

The analysts have limited access to gain information that possibly could constitute a conflict of interest for the institution DR. KALLIWODA INTERNATIONAL RESEARCH GmbH keeps insider registers appropriate to sec. 15 WpHG for assignees that normally have approach to inside information. Insiders´ dealings appropriate to sec. 14 WpHG categorically are prohibited.

The analysts that composed this research did not receive or acquire shares in the emitter that is the subject of this document at any time. The analysts mentioned above herby certify that all of the views expressed accurately reflect the individual views about the emitter. No part of the indemnity was, is or will be, directly or indirectly, linked to the evaluation result or views expressed by the analyst in this research.



C. Disclaimer:

This document is published and being distributed by DR. KALLIWODA INTERNATIONAL RESEARCH GmbH solely for informational purposes and for the personal use by persons in Germany. This research is not intended to be in any form an offer or advice to buy or sell the securities referred to herein. This research is intended to provide information to assist investors in making their own investment decisions. Any decision to purchase any securities of the emitter must be made solely on the basis of the information contained in the offering documents from the emitter relating to such securities and not on the contents hereof. Furthermore, our recommendation may not be fully suitable to every investor, depending on their investment objective, individual financial situation or targeted holding period.

Potential investors should seek professional and individual information and advice before making their investment decisions. This document neither constitutes a contract or any kind of obligation.

Neither this document nor any copy, in whole or in part, thereof may be distributed in any other jurisdiction where its distribution might be restricted by law, and person into whose published this document comes should inform and observe themselves about any such restrictions.

The information within this document has been obtained from sources believed by DR. KALLIWODA INTERNATIONAL RESEARCH GmbH to be reliable. DR. KALLIWODA INTERNATIONAL RESEARCH GmbH does not examine the information to be verify and complete, nor warrantees its correctness and completeness. Although due attention has been taken in compilation this document, it cannot be excluded that the information given is not complete or the document contains mistakes.

The liability of DR. KALLIWODA INTERNATIONAL RESEARCH GmbH shall be restricted to gross negligence and wilful misconduct. All aspects penned in this document are those of DR. KALLIWODA INTERNATIONAL RESEARCH GmbH respectively the authors and subject to modify without notice. Possible faults or incompleteness of this document may be reformed by DR. KALLIWODA INTERNATIONAL RESEARCH GmbH and do not constitute reasons for liability, neither with regard to indirect nor to direct or consequential losses.

Moreover, DR. KALLIWODA INTERNATIONAL RESEARCH GmbH does not accept any responsibility and liability for any damage arising from using of this research or its contents or otherwise arising in relation herewith. In each case, the liability and responsibility of DR. KALLIWODA INTERNATIONAL RESEARCH GmbH is limited to typical, predictable damages and the liability for any direct or indirect losses is excluded.

This document is subject to the laws of the Federal Republic of Germany. Place of jurisdiction is Frankfurt am Main, Germany.

This document or any copy, in whole or in part thereof, may be distributed in any other jurisdiction where its distribution might be restricted by law and persons who have access to this document have to inform and observe themselves about any such restrictions.

In the United Kingdom this document is to be distributed only to persons who are described in Section 11 (3) of the Financial Services Act 1986 (Investment Advertisements) (Exemptions) Order 1996 (as amended). This research may not be distributed and forwarded directly or indirectly to any other group of individuals. The distribution of this document in other international jurisdictions may be restricted by law and individuals who possess this study should inform themselves of any existing restrictions and comply with them.

Neither this document nor any copy of it may be taken or transmitted into the United States of America, Canada, Japan or Australia or distributed, directly or indirectly, in the United States of America, Canada, Japan or Australia or to any resident thereof. Any Failure to comply with these restrictions may constitute a violation of United States, Canadian, Japanese or Australian securities laws or the law of any other jurisdiction.



By confirming this document the reader or user agrees and accepts to be bound by all of the foregoing provisions and this disclaimer. Besides, the user accepts not to distribute this document to unauthorized persons. The user of this document compensated DR. KALLIWODA INTERNATIONAL RESEARCH GmbH for any disadvantages, damages, claims and losses resulting from or in relation with the unauthorized use of this document.

© 2015 DR. KALLIWODA INTERNATIONAL RESEARCH GmbH, Arndtstraße 47, D-60325 Frankfurt am Main. All rights reserved.

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