Baltic Stocks Relative Valuation Report - Swedbank · Baltic Stocks Relative Valuation Report Equity Research, The Baltic Region, April 29, 2009 Take A Look At The Yields

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Baltic Stocks Relative Valuation Report Equity Research, The Baltic Region, April 29, 2009

Take A Look At The Yields

Equity Research – Swedbank Markets Page 2 of 25

Baltic Stocks Relative Valuation Report

Attention: Please note important background and customer information at the end of this report

Table of Contents:

Trading overview............................................................................................................... 3 Top picks - dividend stocks currently offering best risk adjusted return ............................ 3 Company Target Values Based On Peer Group Multiples ................................................ 4 Summary........................................................................................................................... 5 Eesti Telekom AS ............................................................................................................. 6 Tallink Grupp A.S..............................................................................................................7 Olympic Entertainment Group AS ..................................................................................... 8 Tallinna Kaubamaja AS .................................................................................................... 9 Tallinna Vesi AS.............................................................................................................. 10 Silvano Fashion Group AS.............................................................................................. 11 Nordecon International AS.............................................................................................. 12 Arco Vara AS .................................................................................................................. 13 Ekspress Grupp AS ........................................................................................................ 14 Baltika AS ....................................................................................................................... 15 Norma AS .......................................................................................................................16 Merko Ehitus AS ............................................................................................................. 17 TEO LT AB......................................................................................................................18 Grindeks AS.................................................................................................................... 19 Methodology of Relative Valuation Report ...................................................................... 20 Contacts:......................................................................................................................... 21 Background Information: ................................................................................................. 21 Information to the customer: ........................................................................................... 21




Trading overview Starting from March all three Baltic market indices have moved in a lateral direction: Estonian OMXT +3.1%, Latvia OMXR +1.9% and Lithuania OMXV -0.4%.

Despite the unexpected negative surprise posted by Tallink in terms of 2Q results, share price have remained stable with a strong institutional demand on buy side at €0.3-0.33 levels. Bigger accounts who were sitting on the sell side for quite a long time have finished reducing their positions and the seemingly never-ending selling pressure has eased off for now.

Eesti Telekom proposed better than expected dividends (€0.67 vs €0.64 expected) which led pleased investors to push the price above €5 level. Still there are several institutions from Scandinavia and Central Europe who have been exiting the name carefully. Volumes are reasonable and demand seems decent and it prevents the share price from slumping.

Recently quite an action was recorded in Grindeks. While recently it seemed that the name was forgotten by institutional investors, several bigger institutional funds suddenly started to look for blocks which are not easy to find.

From other names Merko Ehitus and Silvano Fashion Group have been an interest for investment funds, Olympic on the other hand has been lacking of interest.

Top picks - dividend stocks currently offering best risk adjusted return TEO LT is an attractively valued dividend case. TEO LT will pay LTL0.23 in dividends for 2008. Bearing in mind the current share price of LTL 1.29 it is a 17.8% dividend yield before tax. In Lithuania dividends are taxed at 20% personal income and 6% health insurance tax. After tax the dividend yield would stand at 13.2% which, in our view, is not a bad deal.

Financial position is robust. As of 1Q 2009, the company had LTL0.42 of net cash per share. Despite the economic recession and pressure on sales TEO LT manages to sustain high profitability (1Q09 EBITDA margin at 45.8%). We do not say that TEO LT will skip the recession with no consequences to its financial results, however much of bad new has already been priced in.

We reiterate a Buy recommendation with the medium risk assessment due to the attractive dividends and strong balance sheet.

Eesti Telekom is a dividend case and thus we focus on long term sustainable dividend level. Company proposed €0.67 per share dividends. At current €4.88 per share price, the before tax yield is 13.7%.

2009 will be a weaker year for Eesti Telekom, as the company will not be immune to 10.5% GDP drop in Estonia estimated by Swedbank. Company reported 19.1% EPS drop in 1Q 2009, driven by regulatory factors (drop in interconnection fees) and sales of IT/Telecom equipment. Telecom is a late-cyclical industry and the impact of the crisis is becoming evident now. Our current dividend estimate for 2009 is currently at €0.50 per share, which at current price level indicates 10.3% dividend yield. As Estonian economy is expected to get out of the recession in 2010, Eesti Telekom, as a dominant player in both mobile and broadband markets, will likely be able to increase its bottom line and also dividends. As a result, our recommendation is a Buy.

Tallinna Vesi announced that dividends for 2008 for A-share holders will be €0.73 (less than expected €0.8 per share). The company is being extra cautious in the current environment. We still remain positive about the stock, despite slightly weaker dividend announcement – it is a low risk company operating with excellent profitability margins, has a good cash position and visible earnings profile. Target price of €14.2, dividend yield for 2008 at current price is 8.1% and recommendation reiterated as Buy.

Baltics didn’t participate in the global rally Baltics did not join the global rally

17.8% Dividend yield and robust net cash position even after dividend payment from a dominant fixed line telecom operator.

13.7% Dividend yield and robust net cash position even after dividend payment from a dominant fixed line and mobile telecom operator.

Water utility with 8.1% dividend yield.




Company Target Values Based On Peer Group Multiples

CompanyCurrent

Price Close (€)

Average P/E 2009-

2011

Average EV/EBITDA 2009-2011

Median LFI P/B

Median 2008

Dividend Yield

P/E EV/ EBITDA P/B

2008 Dividend

Yield

Relative Target

price (RTP)

Discount/ (Premium) on the RTP

Eesti Telekom AS 4.90 5.41 5.70 2.66 7.99 20% 20% 10% 50% 6.48 32%Scenario II 33% 33% 33% 0% 4.59 -6%Scenario III 25% 25% 25% 25% 5.44 11%

Tallink Grupp A.S. 0.33 0.97 0.44 0.98 0 33% 33% 33% 0% 0.79 138%Scenario II 30% 40% 30% 0% 0.76 130%Scenario III 40% 20% 40% 0% 0.87 162%

Olympic Entertainment Group AS 0.41 0.99 1.62 0.60 0 30% 50% 20% 0% 1.23 200%Scenario II 40% 20% 40% 0% 0.96 135%Scenario III 33% 33% 33% 100% 1.07 161%

Tallinna Kaubamaja AS 1.85 5.67 3.11 5.76 1.90 40% 40% 20% 0% 4.66 152%Scenario II 40% 20% 40% 0% 5.19 181%Scenario III 20% 40% 40% 0% 4.68 153%

Tallinna Vesi AS 9.00 14.26 12.15 8.46 16.54 15% 15% 35% 35% 12.71 41%Scenario II 10% 20% 20% 50% 13.82 54%Scenario III 25% 25% 25% 25% 12.85 43%

Silvano Fashion Group AS 0.33 2.01 2.78 2.62 0 33% 33% 33% 0% 2.47 650%Scenario II 40% 40% 20% 0% 2.44 641%Scenario III 20% 40% 40% 0% 2.57 677%

Nordecon International AS 0.67 4.04 4.37 1.83 2.76 40% 40% 20% 0% 3.73 456%Scenario II 25% 25% 25% 25% 3.25 385%Scenario III 33% 33% 33% 0% 3.41 409%

Arco Vara AS 0.10 0.41 0.06 0.39 0 10% 10% 80% 0% 0.36 257%Scenario II 20% 20% 60% 0% 0.33 227%Scenario III 25% 25% 50% 0% 0.31 212%

Ekspress Grupp AS 0.61 3.05 1.65 2.71 0 33% 33% 33% 0% 2.47 305%Scenario II 40% 40% 20% 0% 2.42 297%Scenario III 45% 45% 10% 0% 2.39 291%

Baltika AS 0.47 3.03 2.61 2.25 0 33% 33% 33% 0% 2.63 459%Scenario II 40% 40% 20% 0% 2.71 476%Scenario III 20% 40% 40% 0% 2.55 442%

Norma AS 2.75 3.99 6.54 3.64 19.02 25% 25% 25% 25% 8.30 202%Scenario II 33% 33% 33% 0% 4.73 72%Scenario III 10% 60% 10% 20% 8.49 209%

Merko Ehitus AS 2.25 7.34 7.03 8.80 0 33% 33% 33% 0% 7.72 243%Scenario II 40% 40% 20% 0% 7.51 234%Scenario III 20% 40% 40% 0% 7.80 247%

TEO LT AB 0.37 0.48 0.93 0.63 0 33% 33% 33% 0% 0.68 84%Scenario II 40% 40% 20% 0% 0.69 87%Scenario III 20% 40% 40% 0% 0.72 95%

Grindeks AS 3.31 11.79 9.97 5.91 0 33% 33% 33% 0% 9.22 178%Scenario II 40% 40% 20% 0% 9.89 198%Scenario III 20% 40% 40% 0% 8.71 163%

Source: SWB 04.30.09

Target Prices Weights




Summary

RICPrice Close (LC)

Relative Target Price (RTP)

MOM price performance

(%)

YTD price performance

Market Cap (€m)

FF Market Cap (€m)

3M avg d turnover (000`€)

P/B (Last Q)

Last Q EPS

growth yoy (%)

TTM EPS growth

(%)TTM P/E P/E

2009

EV/ EBITDA

TTM

EV/ EBITDA

2009

FY 2008 Div Yld % P/S 2009 ROE

LTM

TTM EBITDA margin

TTM Net margin D/E last Q

Eesti Telekom AS ETLAT.TL 4.88 6.48 3% 26% 676 99 149 2.5 -12% -10% 7.8 8.1 4.0 4.2 13.7% 1.92 29% 38% 23% 0%

PEER GROUP MEDIAN -8% -11% 1.3 1% -8% 9.1 9.2 4.8 4.9 8.4% 1.15 15% 39% 14% 59%

Tallink Grupp A.S. TAL1T.TL 0.33 0.79 6% -13% 221 130 158 0.3 - - 47.6 7.1 10.0 7.6 0.0% 0.26 1% 16% 2% 166%

PEER GROUP MEDIAN 4% -13% 0.7 -18% -56% 9.6 11.8 10.1 10.1 1.9% 0.80 6% 17% 4% 97%

Olympic Entertainment Group AS OEG1T.TL 0.40 1.23 -13% -16% 62 13 32 0.5 - - -2.1 -18.9 2.4 2.1 0.0% 0.35 -23% 15% -16% 16%

PEER GROUP MEDIAN 21% 37% 0.8 28% -3% 1.6 27.1 7.9 6.7 0.0% 0.79 3% 11% 0% 62%

Tallinna Kaubamaja AS TKM1T.TL 1.82 4.66 -1% -11% 75 24 27 0.6 - -80% 14.2 5.0 9.6 5.5 3.4% 0.17 4% 4% 1% 84%

PEER GROUP MEDIAN 11% 6% 2.0 -13% -56% 14.4 14.3 6.1 7.1 3.3% 0.36 10% 5% 2% 76%

Tallinna Vesi AS TVEAT.TL 9.00 12.71 -2% 0% 180 52 57 2.2 13% 7% 9.5 8.3 7.5 6.9 8.1% 3.52 24% 69% 41% 91%

PEER GROUP MEDIAN -3% -4% 2.2 -28% 6% 16.9 13.1 11.5 8.7 4.4% 1.65 8% 35% 9% 115%

Silvano Fashion Group AS SFGAT.TL 0.31 2.47 24% -35% 13 8 11 0.3 - - -1.7 3.4 4.3 1.8 0.0% 0.11 -17% 5% -6% 21%


Nordecon International AS NCN1T.TL 0.67 3.73 5% -34% 21 8 12 0.4 - -46% 2.2 2.0 2.4 2.1 25.4% 0.07 20% 7% 4% 72%


Arco Vara AS ARC1T.TL 0.11 0.36 10% -41% 9 3 24 0.2 - - -0.1 -1.4 -1.0 -9.0 0.0% 0.21 -88% -158% -176% 148%


Ekspress Grupp AS EEG1T.TL 0.57 2.47 - -23% 12 5 5 0.3 -91% -50% 3.9 2.5 5.4 5.0 0.0% 0.13 8% 13% 3% 132%

PEER GROUP MEDIAN 4% 2% 1.3 - -44% 2.8 11.0 7.3 6.7 4.6% 0.57 5% 10% 3% 51%

Baltika AS BLT1T.TL 0.50 2.63 -12% -59% 9 5 17 0.5 - - -1.9 2.7 11.3 3.5 0.0% 0.10 -6% 3% -2% 92%

PEER GROUP MEDIAN 3% -3% 2.2 -16% 2% 9.5 13.1 5.7 7.3 4.5% 0.78 24% 17% 9% 21%

Norma AS NRM1T.TL 2.75 8.30 10% 6% 36 17 21 0.6 -16% -11% 6.0 9.9 -0.3 -0.6 11.6% 0.62 10% 13% 10% 0%

PEER GROUP MEDIAN 8% 52% 0.8 30% 80% 5.8 -5.2 8.1 10.2 1.7% 0.33 3% 8% 0% 46%

Merko Ehitus AS MRK1T.TL 2.36 7.72 5% -20% 40 10 26 0.3 -54% -46% 2.1 3.7 - 2.5 0.0% 0.16 15% - 10% 37%


TEO LT AB TEO1L.VL 1.28 2.39 4% 10% 286 108 208 0.9 -4% -3% 6.3 6.5 2.1 2.2 18.1% 1.20 14% 42% 19% 1%

PEER GROUP MEDIAN -8% -11% 1.6 1% -10% 9.1 9.2 4.8 4.9 8.4% 1.24 17% 38% 14% 59%

Grindeks AS GRD1R.RI 2.25 6.18 13% -27% 32 12 19 0.5 -39% 26% 2.5 3.4 2.3 2.9 0.0% 0.37 21% 21% 15% 17%

PEER GROUP MEDIAN 7% 10% 1.0 54% 18% 6.3 13.8 7.1 6.3 1.5% 1.68 4% 23% 5% 24%

Company

Trading data Valuation Fundamentals




Eesti Telekom AS TRADING DATA RIC Country

Price Close (LC)

Relative Target Price

(RTP)


(%)

YTD price performa

nce

Market Cap (€m)



Eesti Telekom AS ETLAT.TL Estonia 4.88 6.42 3% 25% 673 99 147 PEER GROUP MEDIAN -6% -12%TEO LT AB TEO1L.VL Lithuania 1.28 6% 10% 288 109 209 Telefonica O2 Czech Republic AS SPTTsp.PR Czech Republic 402.10 1% -5% 4 846 1 434 7 709 Magyar Telekom Nyrt. MTEL.BU Hungary 504.00 -6% -15% 1 791 712 5 029 Telekomunikacja Polska SA TPSA.WA Poland 17.97 -7% -14% 5 348 2 463 12 326 Elisa Oyj ELI1V.HE Finland 10.22 -6% -17% 1 590 1 383 9 261 TeliaSonera AB TLSN.ST Sw eden 37.00 -10% -2% 15 523 7 451 55 776 Koninklijke KPN NV KPN.AS Netherlands 9.41 -9% -9% 15 991 15 831 80 840 Telecom Italia SpA TLIT.MI Italy 0.93 -7% -19% 18 134 14 851 116 216

VALUATION P/B (Last Q)

Last Q EPS growth yoy

(%)

TTM EPS growth

(%)

Last Q Statement

dateTTM P/E P/E 2009 P/E 2010 P/E 2011 TTM P/OCF

Eesti Telekom AS 2.5 -12% -10% 31.03.2009 7.7 8.1 7.6 7.5 5.3PEER GROUP MEDIAN 1.3 1% -8% 9.0 9.0 8.5 8.0 4.0TEO LT AB 0.9 -4% -3% 31.03.2009 6.3 6.4 6.4 6.7 16.1Telefonica O2 Czech Republic AS 1.6 0% 10% 31.12.2008 11.2 11.2 10.6 9.8 6.0Magyar Telekom Nyrt. 0.9 1537% 47% 31.12.2008 5.1 6.2 6.2 6.3 2.3Telekomunikacja Polska SA 1.4 -63% -37% 31.12.2008 13.9 10.5 9.9 9.1 3.3Elisa Oyj 1.9 4% -18% 31.03.2009 9.0 9.1 8.5 8.1 3.5TeliaSonera AB 1.2 -15% -8% 31.03.2009 9.0 8.7 8.2 8.0 6.3Koninklijke KPN NV 4.3 1% -46% 31.12.2008 12.3 10.1 9.0 8.3 4.0Telecom Italia SpA 0.7 96% -9% 31.12.2008 8.2 9.0 8.5 7.4 -

VALUATIONEV/

EBITDA TTM

EV/ EBITDA 2009

EV/ EBITDA

2010

EV/ EBITDA 2011

FY 2008 Div Yld %

TTM P/S P/S 2009 TTM EV/Sales

EV/Sales 2009

Eesti Telekom AS 4.0 4.2 4.1 4.0 13.7% 1.70 1.92 1.51 1.70PEER GROUP MEDIAN 4.7 4.8 4.7 4.7 8.5% 1.16 1.15 1.77 1.78TEO LT AB 2.2 2.2 2.2 2.2 14.1% 1.19 1.19 0.90 0.90Telefonica O2 Czech Republic AS 4.6 4.6 4.6 4.7 12.6% 2.06 2.05 2.00 1.99Magyar Telekom Nyrt. 2.8 3.1 3.2 3.2 14.9% 0.71 0.79 1.10 1.22Telekomunikacja Polska SA 4.2 4.0 4.1 4.2 9.5% 1.41 1.34 1.72 1.65Elisa Oyj 5.1 5.1 5.0 5.0 6.4% 1.09 1.09 1.66 1.67TeliaSonera AB 8.3 6.5 6.3 6.2 5.1% 1.60 1.48 2.18 2.02Koninklijke KPN NV 5.3 5.2 5.0 4.9 7.4% 1.12 1.12 1.86 1.88Telecom Italia SpA 4.9 4.9 4.8 4.8 5.4% 0.59 0.61 1.82 1.88

FUNDAMENTAL RATIOS ROE LTM ROA LTMTTM

EBITDA margin

TTM EBIT margin

TTM Net margin

D/E last QNet

debt/EBITDA

Current Ratio, LFI

Sales growth CAGR 2008-

2011Eesti Telekom AS 29% 26% 38% 29% 23% 0% - 4.6 0%

PEER GROUP MEDIAN 15% 9% 39% 20% 14% 59% 3.4 0.9 -1%TEO LT AB 14% 13% 42% 23% 19% 1% - 6.7 0%Telefonica O2 Czech Republic AS 14% 11% 44% 24% 18% 4% - 0.9 -2%Magyar Telekom Nyrt. 18% 9% 40% 24% 16% 67% 287.5 0.9 -4%Telekomunikacja Polska SA 13% 7% 41% 17% 10% 35% 3.6 0.6 -4%Elisa Oyj 22% 9% 32% 18% 12% 108% 1.8 0.7 -1%TeliaSonera AB 16% 9% 26% 28% 20% 51% 23.6 1.2 4%Koninklijke KPN NV 32% 5% 35% 18% 9% 372% 2.1 0.6 0%Telecom Italia SpA 9% 3% 37% 18% 7% 164% 3.3 0.8 -1%




Tallink Grupp A.S. TRADING DATA RIC Country

Price Close (LC)


(RTP)


(%)

YTD price performa

nce

Market Cap (€m)



Tallink Grupp A.S. TAL1T.TL Estonia 0.33 0.78 10% -13% 221 130 165 PEER GROUP MEDIAN 4% -12%Carnival Corp CCL.N United States 25.55 11% 12% 15 376 11 506 149 795 Royal Caribbean Cruises Ltd RCL.N United States 12.50 44% -3% 2 043 1 615 57 150 Attica Holdings SA EPAr.AT Greece 2.25 -10% -52% 319 119 61 Irish Continental Group PLC ICG_u.I Ireland 13.25 - -26% 338 282 13 Minoan Lines S.A. MILr.AT Greece 3.40 4% -28% 241 239 15 Viking Line Abp VIK1V.HE Finland 30.60 0% -4% 330 187 12 Finnlines Oyj FLG1S.HE Finland 5.14 1% -20% 209 71 17 Mols Linien A/S MOLS.CO Denmark 75.00 50% 19% 141 50 15



(%)

TTM EPS growth

(%)

Last Q Statement


Tallink Grupp A.S. 0.3 - - 28.02.2009 47.6 7.1 3.5 3.1 11.0PEER GROUP MEDIAN 0.7 -18% -56% 9.5 11.1 11.7 10.8 12.6Carnival Corp 1.0 32% - 28.02.2009 8.5 12.0 12.2 10.8 64.0Royal Caribbean Cruises Ltd 0.4 - -16% 31.03.2009 5.9 11.1 10.6 7.7 2.7Attica Holdings SA 0.6 -18% -56% 31.12.2008 10.5 11.1 9.3 8.7 14.6Irish Continental Group PLC - - 5% 31.12.2008 8.1 8.6 11.3 - -Minoan Lines S.A. 0.9 - -80% 31.12.2008 72.9 10.7 9.0 - 695.0Viking Line Abp 2.0 -74% - 31.01.2009 24.5 23.2 21.4 - 10.6Finnlines Oyj 0.5 - -99% 31.12.2008 412.9 -25.7 32.1 20.6 3.4Mols Linien A/S - - - 31.12.2008 -18.4 53.6 21.4 13.2 -

VALUATIONEV/

EBITDA TTM

EV/ EBITDA 2009

EV/ EBITDA

2010

EV/ EBITDA 2011

FY 2008 Div Yld %


EV/Sales 2009

Tallink Grupp A.S. 10.0 7.6 6.9 6.5 0.0% 0.28 0.26 1.60 1.51PEER GROUP MEDIAN 10.2 10.0 9.0 8.6 1.9% 0.70 0.87 1.66 1.69Carnival Corp 7.0 8.5 8.3 7.6 0.0% 1.40 1.55 1.96 2.23Royal Caribbean Cruises Ltd 7.3 8.3 7.2 6.3 1.0% 0.42 0.45 1.44 1.54Attica Holdings SA 11.9 11.5 9.6 8.6 2.9% 0.71 0.90 1.81 1.70Irish Continental Group PLC - 5.2 4.6 - 6.3% - 0.84 - 0.96Minoan Lines S.A. 14.4 11.7 11.2 - 3.2% 1.13 1.06 2.80 2.63Viking Line Abp 9.1 8.3 7.5 - 3.3% 0.69 0.70 0.91 0.92Finnlines Oyj 11.3 12.8 10.2 8.9 0.0% 0.28 0.33 1.50 1.76Mols Linien A/S - 14.1 11.0 8.7 0.0% - 1.40 - 1.69


EBITDA margin

TTM EBIT margin

TTM Net margin

D/E last QNet

debt/EBITDA

Current Ratio, LFI


2011Tallink Grupp A.S. 1% 0% 16% 8% 2% 166% 8.2 0.5 3%

PEER GROUP MEDIAN 6% 3% 17% 9% 4% 97% 6.2 1.1 1%Carnival Corp 12% 7% 28% 19% 16% 50% 2.8 0.3 0%Royal Caribbean Cruises Ltd 7% 3% 20% 11% 7% 103% 6.7 0.4 6%Attica Holdings SA 5% 2% 15% 7% 6% 90% 5.6 2.4 -Irish Continental Group PLC 22% 12% - - - - - 1.1 -Minoan Lines S.A. 1% 0% 19% 11% 2% 136% 8.6 1.2 -Viking Line Abp 8% 4% 10% 5% 3% 74% 2.2 1.2 -Finnlines Oyj 0% 0% 13% 5% 0% 209% 9.2 0.4 -1%Mols Linien A/S -14% -7% - - - - - 1.1 2%




Olympic Entertainment Group AS TRADING DATA RIC Country

Price Close (LC)


(RTP)


(%)

YTD price performa

nce

Market Cap (€m)



Olympic Entertainment Group AS OEG1T.TL Estonia 0.40 1.17 -9% -18% 60 13 31 PEER GROUP MEDIAN 25% 31%Boyd Gaming Corp BYD.N United States 8.02 105% 80% 539 345 12 109 Century Casinos Inc CNTY.OQ United States 1.90 23% 96% 35 29 49 Gold Reef Resorts Ltd GDFJ.J South Africa 16.90 0% 6% 435 161 73 Great Canadian Gaming Corp GC.TO Canada 3.50 30% 4% 180 135 318 Global Casinos Inc GBCS.OB United States 0.40 -11% -43% 2 2 2 Starent Netw orks Corp STAR.OQ United States 19.21 32% 71% 1 033 618 21 655 Queenco Leisure International Ltd QLIq.L Israel 2.60 8% -5% 92 42 6 Penn National Gaming Inc PENN.OQ United States 31.30 27% 56% 1 870 - 26 022



(%)

TTM EPS growth

(%)

Last Q Statement


Olympic Entertainment Group AS 0.5 - - 31.12.2008 -2.1 -18.9 5.9 3.1 5.2PEER GROUP MEDIAN 0.8 28% -3% 1.8 25.4 18.3 15.5 4.8Boyd Gaming Corp 0.7 - - 31.12.2008 -3.4 25.4 18.3 15.5 3.4Century Casinos Inc 0.5 - - 31.12.2008 -3.5 759.9 22.8 17.3 3.9Gold Reef Resorts Ltd 2.3 2020% 44% 31.12.2008 14.7 10.5 8.6 7.9 -Great Canadian Gaming Corp 0.8 - -67% 31.12.2008 23.5 26.0 12.5 9.2 4.8Global Casinos Inc 0.6 - - 31.12.2008 -11.4 - - - 18.1Starent Netw orks Corp 3.8 57% 1073% 31.03.2009 22.8 26.5 23.0 21.1 9.0Queenco Leisure International Ltd 0.8 -69% -50% 31.12.2008 6.9 3.2 2.7 2.6 4.6Penn National Gaming Inc - -1% - 31.03.2009 -13.9 22.1 19.0 17.4 6.2

VALUATIONEV/

EBITDA TTM

EV/ EBITDA 2009

EV/ EBITDA

2010

EV/ EBITDA 2011

FY 2008 Div Yld %


EV/Sales 2009

Olympic Entertainment Group AS 2.4 2.1 1.6 1.2 0.0% 0.34 0.34 0.35 0.35PEER GROUP MEDIAN 8.0 6.4 5.8 5.7 0.0% 0.83 0.74 1.73 1.88Boyd Gaming Corp -282.7 8.3 8.0 8.0 2.8% 0.42 0.42 1.94 1.94Century Casinos Inc -24.7 6.0 7.3 6.9 0.0% 0.90 0.73 1.52 1.22Gold Reef Resorts Ltd 8.2 6.4 5.8 5.4 3.6% 2.39 2.34 3.22 2.97Great Canadian Gaming Corp 8.5 6.9 5.8 5.7 0.0% 0.77 0.74 1.95 1.88Global Casinos Inc 8.0 - - - - 0.46 - 0.84 -Starent Netw orks Corp - 10.2 8.4 7.9 0.0% 5.35 4.35 3.61 3.10Queenco Leisure International Ltd 1.5 1.3 1.1 1.0 19.5% 0.66 0.56 0.56 0.50Penn National Gaming Inc 9.2 4.0 3.6 3.5 0.0% 1.19 1.01 1.03 1.01


EBITDA margin

TTM EBIT margin

TTM Net margin

D/E last QNet

debt/EBITDA

Current Ratio, LFI


2011Olympic Entertainment Group AS -23% -18% 15% -7% -16% 16% 0.1 1.3 14%

PEER GROUP MEDIAN 3% 2% 11% 8% 0% 62% 6.6 1.3 9%Boyd Gaming Corp -18% -5% -1% -7% -13% 232% - 0.6 0%Century Casinos Inc -18% -11% -6% -19% -35% 43% - 1.4 10%Gold Reef Resorts Ltd 15% 9% 39% 32% 17% 71% 19.5 1.3 9%Great Canadian Gaming Corp 3% 2% 23% 12% 4% 119% 8.2 1.1 5%Global Casinos Inc -7% -3% 10% 0% -3% 52% 5.0 0.5 -Starent Netw orks Corp 20% 13% - 25% 23% - - 2.6 24%Queenco Leisure International Ltd 12% 10% 38% 31% 19% 23% - 1.4 16%Penn National Gaming Inc - - 11% 4% -6% - 0.0 - 4%




Tallinna Kaubamaja AS

TRADING DATA RIC CountryPrice Close (LC)


(RTP)


(%)

YTD price performa

nce

Market Cap (€m)



Tallinna Kaubamaja AS TKM1T.TL Estonia 1.82 4.59 -1% -13% 74 24 27 PEER GROUP MEDIAN 10% 5%Wal-Mart Stores Inc WMT United States 48.47 -8% -8% 145 474 82 022 883 096 Metro AG MEOG.DE Germany 31.46 21% 10% 10 343 3 529 1 046 Koninklijke Ahold NV AHLN.AS Netherlands 8.56 3% -3% 10 071 9 147 53 587 Axfood AB AXFO.ST Sw eden 170.50 10% 5% 836 357 2 121 J Sainsbury PLC SBRY.L United Kingdom 3.23 3% 7% 6 336 6 288 25 708 X5 Retail Group N V PJPq.L Netherlands 13.59 39% 68% 2 750 798 2 964 Kesko Oyj KESBV.HE Finland 17.87 14% 0% 1 748 1 623 8 148 Stockmann Oyj STCBV.HE Finland 12.65 22% 29% 776 630 852 WM Morrison Supermarkets PLC MRW.L United Kingdom 2.45 -4% -5% 7 214 6 781 27 426



(%)

TTM EPS growth

(%)

Last Q Statement


Tallinna Kaubamaja AS 0.6 - -80% 31.12.2008 14.0 5.0 4.0 3.2 4.0PEER GROUP MEDIAN 2.0 -13% -56% 14.2 13.8 12.5 10.6 6.1Wal-Mart Stores Inc 2.9 9% - 31.01.2009 14.0 13.8 12.5 11.6 8.1Metro AG 1.8 -13% -51% 31.12.2008 25.8 12.1 11.0 9.5 3.9Koninklijke Ahold NV 2.2 10% - 28.12.2008 9.9 11.1 10.1 9.2 5.8Axfood AB 4.6 -14% -19% 31.03.2009 12.4 12.0 11.1 10.7 23.9J Sainsbury PLC 1.0 -6% - 4.10.2008 14.8 15.8 14.5 13.4 -X5 Retail Group N V 2.3 - - 31.12.2008 -1.8 26.1 12.9 9.0 6.1Kesko Oyj 0.9 -91% -61% 31.12.2008 15.8 16.9 15.0 11.4 12.9Stockmann Oyj 1.1 -65% -71% 31.03.2009 27.6 17.6 13.8 9.5 4.6WM Morrison Supermarkets PLC - - - 1.02.2009 14.2 13.6 11.8 10.6 -

VALUATIONEV/

EBITDA TTM

EV/ EBITDA 2009

EV/ EBITDA

2010

EV/ EBITDA 2011

FY 2008 Div Yld %


EV/Sales 2009

Tallinna Kaubamaja AS 9.5 5.4 4.8 4.2 3.4% 0.17 0.16 0.39 0.37PEER GROUP MEDIAN 6.0 7.0 5.9 5.7 3.4% 0.34 0.35 0.39 0.40Wal-Mart Stores Inc 7.5 7.4 6.9 6.4 2.1% 0.46 0.46 0.55 0.55Metro AG 4.5 4.5 4.3 4.0 3.8% 0.15 0.15 0.22 0.23Koninklijke Ahold NV 5.9 5.2 4.9 4.7 2.3% 0.41 0.35 0.43 0.39Axfood AB 6.5 6.4 5.9 5.7 5.2% 0.29 0.28 0.33 0.32J Sainsbury PLC 6.1 7.0 6.5 6.3 4.1% 0.27 0.30 0.36 0.40X5 Retail Group N V -3.8 7.5 5.9 5.2 0.0% 0.44 0.43 0.68 0.65Kesko Oyj 5.6 6.9 5.9 5.0 3.4% 0.19 0.20 0.20 0.21Stockmann Oyj 9.0 10.5 9.0 7.5 4.0% 0.39 0.45 0.88 0.95WM Morrison Supermarkets PLC - 7.0 6.3 5.9 2.9% - 0.46 - 0.51


EBITDA margin

TTM EBIT margin

TTM Net margin

D/E last QNet

debt/EBITDA

Current Ratio, LFI


2011Tallinna Kaubamaja AS 4% 2% 4% 2% 1% 84% 5.2 0.9 6%

PEER GROUP MEDIAN 10% 5% 5% 3% 2% 76% 1.5 0.8 3%Wal-Mart Stores Inc 20% 8% 7% 6% 3% 65% 1.6 0.9 9%Metro AG 14% 3% 5% 3% 1% 146% 1.5 0.7 3%Koninklijke Ahold NV 20% 6% 7% 5% 3% 83% 0.5 1.3 7%Axfood AB 40% 11% 5% 3% 2% 70% 8.5 0.8 3%J Sainsbury PLC 7% 3% 6% 3% 2% 54% 1.4 0.6 0%X5 Retail Group N V -88% -35% -18% -21% -26% 126% - 0.6 15%Kesko Oyj 9% 5% 4% 2% 1% 27% 0.3 1.4 -1%Stockmann Oyj 5% 1% 10% 6% 2% 113% 4.8 1.5 0%WM Morrison Supermarkets PLC 10% 6% - - - - - 0.5 2%




Tallinna Vesi AS TRADING DATA RIC Country

Price Close (LC)


(RTP)


(%)

YTD price performa

nce

Market Cap (€m)



Tallinna Vesi AS TVEAT.TL Estonia 9.00 12.62 -2% 0% 180 52 65 PEER GROUP MEDIAN -1% -6%Aqua America Inc WTR United States 18.64 -6% -4% 1 929 1 924 16 973 Athens Water Supply & Sew erage Company SA (EYDAP)

EYDr.AT Greece 5.82 -1% 11% 620 155 137

California Water Service Group CWT United States 39.34 -4% -10% 623 587 5 847 American States Water Co AWR United States 34.86 -1% 12% 461 458 4 038 Severn Trent Plc SVT.L United Kingdom 10.34 4% -6% 2 730 2 707 14 019 Pennon Group Plc PNN.L United Kingdom 4.28 4% -7% 1 676 1 659 10 271 Middlesex Water Co MSEX.O United States 13.94 -4% -14% 143 138 459 United Utilities Group Plc UU.L United Kingdom 4.97 3% -14% 3 794 3 756 19 535 Northumbrian Water Group PLC NWG.L United Kingdom 2.13 -4% -2% 1 238 1 226 3 974



(%)

TTM EPS growth

(%)

Last Q Statement


Tallinna Vesi AS 2.2 13% 7% 31.12.2008 9.5 8.3 8.1 8.0 6.5PEER GROUP MEDIAN 2.2 -17% 6% 16.8 12.5 11.6 12.7 10.4Aqua America Inc 2.5 7% 7% 31.12.2008 27.3 21.9 20.4 17.6 12.1Athens Water Supply & Sew erage Company SA (EYDAP)

0.7 -6% -28% 31.12.2008 19.8 11.8 11.1 7.7 206.7

California Water Service Group 2.2 -4% 33% 31.12.2008 22.0 19.2 18.4 15.9 9.1American States Water Co 2.1 -51% -18% 31.12.2008 29.4 20.2 18.0 - 10.3Severn Trent Plc - - - 30.09.2008 -84.0 11.8 10.1 12.7 -Pennon Group Plc 2.3 -64% - 30.09.2008 15.5 12.5 11.6 12.7 -Middlesex Water Co 1.4 -28% 6% 31.12.2008 16.8 15.1 13.7 - 10.4United Utilities Group Plc - - - 30.09.2008 5.2 9.4 9.0 11.1 -Northumbrian Water Group PLC - - - 30.09.2008 -214.5 9.7 8.7 10.3 -

VALUATIONEV/

EBITDA TTM

EV/ EBITDA 2009

EV/ EBITDA

2010

EV/ EBITDA 2011

FY 2008 Div Yld %


EV/Sales 2009

Tallinna Vesi AS 7.5 6.9 6.6 6.5 8.1% 3.91 3.52 5.21 4.70PEER GROUP MEDIAN 10.8 8.6 8.3 8.0 4.4% 2.07 1.58 3.11 3.39Aqua America Inc 12.8 10.7 9.9 9.0 3.1% 4.26 3.67 6.52 5.59Athens Water Supply & Sew erage Company SA (EYDAP)

8.6 7.9 7.2 5.4 2.9% 1.54 1.43 1.89 1.76

California Water Service Group 10.1 8.6 8.6 - 3.1% 2.11 1.85 2.93 2.57American States Water Co 11.5 9.0 8.3 - 2.8% 2.02 1.80 3.13 2.79Severn Trent Plc - 8.1 7.2 7.9 6.5% - 1.50 - 3.68Pennon Group Plc 7.7 8.4 8.1 8.1 4.8% 1.40 1.53 3.10 3.39Middlesex Water Co 11.6 10.2 9.6 - 4.4% 2.21 1.96 4.08 3.66United Utilities Group Plc - 8.1 7.4 7.8 6.5% - 1.36 - 3.27Northumbrian Water Group PLC - 8.6 8.3 8.6 5.9% - 1.58 - 4.73


EBITDA margin

TTM EBIT margin

TTM Net margin

D/E last QNet

debt/EBITDA

Current Ratio, LFI


2011Tallinna Vesi AS 24% 12% 69% 56% 41% 91% 1.9 1.8 7%

PEER GROUP MEDIAN 8% 2% 32% 23% 9% 112% 2.6 0.7 4%Aqua America Inc 10% 3% 51% 36% 16% 126% 5.7 0.6 11%Athens Water Supply & Sew erage Company SA (EYDAP)

4% 2% 22% 15% 8% 19% 1.6 1.5 13%

California Water Service Group 10% 3% 29% 20% 10% 82% 3.7 0.6 11%American States Water Co 7% 2% 27% 17% 7% 110% 5.4 0.7 -Severn Trent Plc -2% 0% - - - - 0.0 1.3 -2%Pennon Group Plc 15% 3% 40% 26% 9% 365% 0.0 1.3 4%Middlesex Water Co 9% 3% 35% 26% 13% 115% 7.1 0.3 -United Utilities Group Plc 8% 1% - - - - - 0.6 0%Northumbrian Water Group PLC -1% 0% - - - - 0.0 1.8 -3%




Silvano Fashion Group AS TRADING DATA RIC Country

Price Close (LC)


(RTP)


(%)

YTD price performa

nce

Market Cap (€m)



Silvano Fashion Group AS SFGAT.TL Estonia 0.31 2.43 29% -39% 12 8 10 PEER GROUP MEDIAN 3% 1%H & M Hennes & Mauritz AB HMb.ST Sw eden 353.00 11% 19% 27 292 13 947 127 502 Industria de Diseno Textil SA (Inditex SA) ITX.MC Spain 31.63 3% 1% 19 709 6 633 66 233 LPP SA LPPP.WA Poland 992.00 3% -20% 372 177 179 Etam Developpement SCA TAM.PA France 11.71 56% 65% 126 89 84 Wolford AG WLFD.VI Austria 8.11 1% -32% 40 26 107 Marimekko Oyj MMO1V.HE Finland 8.60 3% 3% 69 45 20 Baltika AS BLT1T.TL Estonia 0.50 -6% -57% 9 6 17



(%)

TTM EPS growth

(%)

Last Q Statement


Silvano Fashion Group AS 0.3 - - 31.12.2008 -1.6 3.4 1.5 1.1 -3.2PEER GROUP MEDIAN 2.5 -28% -4% 15.7 13.0 11.3 9.1 9.9H & M Hennes & Mauritz AB 7.6 -28% - 28.02.2009 20.9 18.6 16.6 14.5 253.3Industria de Diseno Textil SA (Inditex SA) 4.2 -4% - 31.01.2009 15.7 16.6 14.8 13.5 11.1LPP SA 2.8 25% 9% 31.12.2008 9.2 13.0 11.3 9.1 7.9Etam Developpement SCA - - -72% 30.06.2008 17.8 8.6 6.8 6.1 -Wolford AG 0.5 -85% - 31.01.2009 24.6 7.4 6.7 5.7 19.7Marimekko Oyj 2.2 -45% -4% 31.12.2008 9.4 13.9 11.3 10.7 8.6Baltika AS 0.5 - - 31.12.2008 -2.1 3.2 2.0 1.3 3.3

VALUATIONEV/

EBITDA TTM

EV/ EBITDA 2009

EV/ EBITDA

2010

EV/ EBITDA 2011

FY 2008 Div Yld %


EV/Sales 2009

Silvano Fashion Group AS 4.0 1.7 1.3 1.0 0.0% 0.11 0.10 0.23 0.20PEER GROUP MEDIAN 6.7 7.2 6.7 5.8 3.3% 0.90 0.76 0.99 0.84H & M Hennes & Mauritz AB 13.0 11.3 10.1 8.8 4.6% 3.39 2.80 3.11 2.58Industria de Diseno Textil SA (Inditex SA) 8.5 8.4 7.5 6.7 3.3% 1.89 1.89 1.78 1.78LPP SA 7.0 7.2 7.0 5.8 0.0% 0.95 0.76 1.21 0.97Etam Developpement SCA - 3.7 3.2 3.0 2.7% - 0.13 - 0.31Wolford AG 6.4 5.5 6.6 5.5 4.4% 0.26 0.26 0.51 0.52Marimekko Oyj 5.6 7.8 6.7 6.3 5.8% 0.85 0.92 0.78 0.84Baltika AS 4.0 2.2 1.7 0.8 2.0% 0.12 0.12 0.14 0.13


EBITDA margin

TTM EBIT margin

TTM Net margin

D/E last QNet

debt/EBITDA

Current Ratio, LFI


2011Silvano Fashion Group AS -17% -9% 6% 3% -6% 22% 2.0 2.1 9%

PEER GROUP MEDIAN 24% 16% 16% 13% 10% 30% 6.6 1.3 11%H & M Hennes & Mauritz AB 39% 30% 24% 21% 16% 0% - 3.2 12%Industria de Diseno Textil SA (Inditex SA) 28% 17% 21% 15% 12% 5% - 1.4 9%LPP SA 33% 16% 17% 13% 10% 98% 6.8 1.2 16%Etam Developpement SCA 3% 1% - - - - - 1.3 -Wolford AG 2% 1% 8% 3% 1% 55% 3.2 1.3 -3%Marimekko Oyj 24% 18% 14% 12% 9% 1% - 3.7 -1%Baltika AS -6% -3% 3% 0% -2% 92% 6.6 1.3 15%




Nordecon International AS TRADING DATA RIC Country

Price Close (LC)


(RTP)


(%)

YTD price performa

nce

Market Cap (€m)



Nordecon International AS NCN1T.TL Estonia 0.67 3.65 5% -34% 21 8 11 PEER GROUP MEDIAN 14% 35%YIT Oyj YTY1V.HE Finland 6.60 28% 44% 826 735 6 022 Lemminkainen Oyj LEM1S.HE Finland 17.60 11% 35% 300 104 97 Skanska AB SKAb.ST Sw eden 83.00 14% 10% 3 224 2 957 25 172 NCC AB NCCb.ST Sw eden 71.00 21% 46% 719 450 3 399 Peab AB PEABb.ST Sw eden 33.70 30% 60% 877 507 2 102 Koninklijke BAM Groep NV BAMN.AS Netherlands 7.02 3% 9% 948 701 7 420 Panevezio Statybos Trestas PTR1L.VL Lithuania 1.50 6% 0% 7 3 24



(%)

TTM EPS growth

(%)

Last Q Statement


Nordecon International AS 0.4 - -46% 31.12.2008 2.2 2.0 1.4 1.2 1.1PEER GROUP MEDIAN 1.2 -5% -31% 5.5 9.7 9.6 7.5 17.3YIT Oyj 1.2 -96% -63% 31.03.2009 10.0 12.7 10.2 7.4 17.3Lemminkainen Oyj 1.0 20% -23% 31.12.2008 5.4 10.6 9.6 7.5 12.2Skanska AB 1.9 - -35% 31.12.2008 11.5 12.9 14.1 12.8 64.0NCC AB 1.2 -16% -31% 31.12.2008 4.4 9.7 11.5 9.1 61.8Peab AB 1.5 -5% 12% 31.12.2008 5.5 8.1 8.9 8.3 -Koninklijke BAM Groep NV 1.1 - -54% 31.12.2008 5.9 5.2 6.1 5.5 7.5Panevezio Statybos Trestas 0.2 240% 69% 31.12.2008 0.5 1.1 1.4 1.6 -

VALUATIONEV/

EBITDA TTM

EV/ EBITDA 2009

EV/ EBITDA

2010

EV/ EBITDA 2011

FY 2008 Div Yld %


EV/Sales 2009

Nordecon International AS 2.4 2.1 1.7 1.5 25.4% 0.08 0.07 0.18 0.16PEER GROUP MEDIAN 5.2 6.1 6.6 5.9 6.3% 0.14 0.15 0.21 0.22YIT Oyj 6.2 8.0 8.3 6.8 4.5% 0.22 0.24 0.38 0.42Lemminkainen Oyj 1.3 1.8 1.9 1.8 3.5% 0.12 0.14 0.08 0.09Skanska AB 8.3 6.2 6.3 5.9 6.3% 0.25 0.26 0.21 0.22NCC AB 4.1 6.0 6.6 6.1 4.8% 0.14 0.15 0.20 0.22Peab AB - 6.1 6.9 5.4 6.5% 0.18 0.26 0.43 0.39Koninklijke BAM Groep NV 6.3 6.2 6.9 6.0 7.1% 0.11 0.11 0.23 0.25Panevezio Statybos Trestas 0.6 1.1 1.2 1.3 6.7% 0.04 0.05 0.06 0.08


EBITDA margin

TTM EBIT margin

TTM Net margin

D/E last QNet

debt/EBITDA

Current Ratio, LFI


2011Nordecon International AS 20% 8% 7% 5% 4% 72% 1.3 1.3 11%

PEER GROUP MEDIAN 18% 5% 6% 4% 3% 81% 3.1 1.3 -4%YIT Oyj 11% 3% 6% 5% 2% 118% 2.7 1.7 -4%Lemminkainen Oyj 18% 5% 6% 5% 3% 38% - 1.2 -6%Skanska AB 16% 4% 3% 3% 2% 17% - 1.2 -3%NCC AB 26% 5% 5% 4% 3% 81% 14.0 1.4 -6%Peab AB 22% 5% - 4% 3% 105% - 1.3 4%Koninklijke BAM Groep NV 18% 2% 4% 3% 2% 209% 3.4 1.3 -2%Panevezio Statybos Trestas 52% 14% 11% 9% 7% 58% 0.7 1.7 -7%




Arco Vara AS TRADING DATA RIC Country

Price Close (LC)


(RTP)


(%)

YTD price performa

nce

Market Cap (€m)



Arco Vara AS ARC1T.TL Estonia 0.11 0.33 10% -35% 10 4 28 PEER GROUP MEDIAN 30% 12%Globe Trade Centre SA GTCE.WA Poland 17.00 15% 3% 831 439 2 017 Echo Investment SA EPRS.WA Poland 2.77 11% 18% 259 153 212 Nordicom A/S NRDC.CO Denmark 102.00 57% 50% 41 22 17 Sjaelsoe Gruppen A/S SJGR.CO Denmark 17.00 70% -17% 57 37 162 Kungsleden AB KLED.ST Sw eden 42.40 30% -19% 541 539 3 471 Atrium Ljungberg AB LJGRb.ST Sw eden 75.00 13% 23% 912 275 107 IMPACT Developer & Contractor SA IMPT.BX Romania 0.37 80% 12% 175 105 40



(%)

TTM EPS growth

(%)

Last Q Statement


Arco Vara AS 0.2 - - 31.12.2008 -0.1 -1.4 4.2 0.6 -1.3PEER GROUP MEDIAN 0.7 -28% -53% 3.2 10.0 9.1 10.3 7.1Globe Trade Centre SA 0.7 -28% -37% 31.12.2008 5.6 14.9 5.0 14.0 -8.0Echo Investment SA 0.7 -41% -70% 31.12.2008 9.8 277.0 3.0 10.2 16.2Nordicom A/S 0.3 - - 31.12.2008 -1.5 9.6 8.0 -16.7 -7.3Sjaelsoe Gruppen A/S 0.2 - -82% 31.12.2008 3.2 5.9 9.1 2.1 -Kungsleden AB 0.8 - - 31.03.2009 -5.4 10.0 10.2 10.4 7.1Atrium Ljungberg AB 1.2 - - 31.03.2009 -20.9 21.4 22.0 21.2 16.9IMPACT Developer & Contractor SA 1.9 -18% -15% 31.12.2008 85.6 -36.9 460.4 - -

VALUATIONEV/

EBITDA TTM

EV/ EBITDA 2009

EV/ EBITDA

2010

EV/ EBITDA 2011

FY 2008 Div Yld %


EV/Sales 2009

Arco Vara AS -1.0 -9.1 26.1 3.9 0.0% 0.25 0.23 1.58 1.48PEER GROUP MEDIAN 18.3 18.6 18.1 15.7 0.0% 2.46 2.71 5.72 10.12Globe Trade Centre SA 39.5 22.4 16.0 13.7 0.0% 8.50 5.12 16.81 10.12Echo Investment SA 3.8 6.2 5.0 - 0.0% 2.46 1.47 5.72 3.41Nordicom A/S -99.4 18.3 18.1 17.7 14.7% 0.56 0.75 7.54 10.32Sjaelsoe Gruppen A/S 18.0 74.0 57.3 12.8 0.0% 0.08 0.17 0.62 1.45Kungsleden AB - 19.6 21.7 21.7 6.9% 1.29 2.77 5.71 12.30Atrium Ljungberg AB 21.0 18.6 18.8 18.7 2.7% 5.41 5.97 10.05 11.10IMPACT Developer & Contractor SA 18.7 17.2 12.1 5.3 0.0% 4.12 2.71 4.04 2.78


EBITDA margin

TTM EBIT margin

TTM Net margin

D/E last QNet

debt/EBITDA

Current Ratio, LFI


2011Arco Vara AS -88% -42% -158% -159% -176% 148% - 2.5 39%

PEER GROUP MEDIAN 2% 1% 32% 20% 3% 115% 87.7 2.1 -3%Globe Trade Centre SA 15% 8% 43% 260% 174% 95% 87.7 2.6 28%Echo Investment SA 7% 3% 150% 149% 25% 115% 9.7 2.1 33%Nordicom A/S -17% -4% -8% -14% -37% 378% - 0.1 -9%Sjaelsoe Gruppen A/S 8% 2% 3% 3% 3% 194% 118.2 2.1 -20%Kungsleden AB -14% -4% - -8% -24% 291% - 2.6 -20%Atrium Ljungberg AB -5% -2% 48% 48% -22% 98% 103.9 0.2 -3%IMPACT Developer & Contractor SA 2% 1% 22% 20% 6% 55% 2.0 2.9 30%




Ekspress Grupp AS TRADING DATA RIC Country

Price Close (LC)


(RTP)


(%)

YTD price performa

nce

Market Cap (€m)



Ekspress Grupp AS EEG1T.TL Estonia 0.57 2.36 -14% -28% 11 5 5 PEER GROUP MEDIAN 5% -1%Schibsted ASA SBST.OL Norw ay 58.60 41% -22% 432 315 2 932 Sanoma Oyj SAA1V.HE Finland 9.50 -3% 3% 1 526 951 3 203 Alma Media Oyj ALN1V.HE Finland 4.95 -6% 0% 369 316 1 100 Rambler Media ZAO RMG.L United Kingdom 5.40 35% 88% 64 63 16 Dogan Yayin Holding AS DYHOL.IS Turkey 0.63 15% -3% 184 44 2 202 Agora SA AGOD.WA Poland 14.55 5% -18% 170 107 674 Daw son Holdings PLC DWN.L United Kingdom 0.10 -13% -87% 7 7 16 Axel Springer AG SPRGn.DE Germany 51.10 0% -1% 1 523 631 222 Daily Mail and General Trust PLC DMGOa.L United Kingdom 2.91 22% 17% 1 281 458 7 567



(%)

TTM EPS growth

(%)

Last Q Statement


Ekspress Grupp AS 0.3 -73% -46% 31.12.2008 3.4 2.5 1.8 1.4 1.4PEER GROUP MEDIAN 1.3 - -44% 2.8 10.7 9.3 8.1 5.7Schibsted ASA 1.2 - - 31.12.2008 -4.6 16.3 11.5 6.9 5.6Sanoma Oyj 1.3 - -50% 31.12.2008 13.1 10.7 9.3 8.5 6.1Alma Media Oyj 5.3 -50% -33% 31.12.2008 11.0 13.0 12.4 11.1 7.9Rambler Media ZAO 2.0 - -38% 31.12.2008 24.8 11.2 10.2 6.4 -Dogan Yayin Holding AS 0.2 - - 31.12.2008 -1.2 -2.5 -7.7 20.1 3.2Agora SA 0.6 - -81% 31.12.2008 34.1 11.2 9.7 10.8 -Daw son Holdings PLC - - - 27.09.2008 0.8 0.9 1.0 1.5 -Axel Springer AG 1.5 - - 31.12.2008 2.8 8.3 7.7 6.2 5.7Daily Mail and General Trust PLC - - - 28.09.2008 -767.5 8.9 8.8 8.1 -

VALUATIONEV/

EBITDA TTM

EV/ EBITDA 2009

EV/ EBITDA

2010

EV/ EBITDA 2011

FY 2008 Div Yld %


EV/Sales 2009

Ekspress Grupp AS 4.8 4.9 4.4 3.9 0.0% 0.13 0.12 0.69 0.66PEER GROUP MEDIAN 7.1 6.5 6.0 5.1 5.1% 0.55 0.53 0.69 0.73Schibsted ASA 23.5 7.2 6.0 5.1 3.4% 0.31 0.29 0.75 0.71Sanoma Oyj 6.6 6.5 6.1 5.7 7.9% 0.49 0.53 0.80 0.87Alma Media Oyj 7.1 8.1 7.8 6.9 6.1% 1.11 1.15 1.12 1.16Rambler Media ZAO 7.9 2.9 3.2 2.4 0.0% 0.80 0.76 0.56 0.53Dogan Yayin Holding AS 9.4 9.8 13.4 9.0 0.0% 0.11 0.14 0.65 0.82Agora SA 4.7 4.1 3.3 3.5 3.5% 0.57 0.59 0.47 0.51Daw son Holdings PLC - 1.9 1.8 2.2 72.9% - 0.01 - 0.04Axel Springer AG 4.3 5.0 4.7 4.1 8.6% 0.55 0.58 0.69 0.73Daily Mail and General Trust PLC - 7.0 7.0 6.6 5.1% - 0.52 - 1.01


EBITDA margin

TTM EBIT margin

TTM Net margin

D/E last QNet

debt/EBITDA

Current Ratio, LFI


2011Ekspress Grupp AS 8% 3% 14% 9% 4% 130% 4.0 0.6 7%

PEER GROUP MEDIAN 5% 4% 10% 3% 3% 51% 2.6 0.8 -1%Schibsted ASA -22% -5% 3% -1% -6% 170% 122.3 0.8 3%Sanoma Oyj 9% 4% 12% 8% 4% 89% 2.6 0.5 -2%Alma Media Oyj 37% 22% 16% 13% 10% 51% 0.1 0.7 -1%Rambler Media ZAO 7% 4% 7% 3% 3% 0% - 1.7 12%Dogan Yayin Holding AS -26% -9% 7% 2% -1% 134% 16.5 1.4 13%Agora SA 2% 1% 10% 3% 2% 13% - 1.8 0%Daw son Holdings PLC - 6% - - - - - 0.7 -12%Axel Springer AG 52% 17% 16% 12% 20% 51% 0.9 1.6 -1%Daily Mail and General Trust PLC 0% 1% - - - - - 0.6 -6%




Baltika AS TRADING DATA RIC Country

Price Close (LC)


(RTP)


(%)

YTD price performa

nce

Market Cap (€m)



Baltika AS BLT1T.TL Estonia 0.50 2.66 -6% -57% 9 6 17 PEER GROUP MEDIAN 6% -4%H & M Hennes & Mauritz AB HMb.ST Sw eden 353.00 11% 19% 27 292 13 947 127 502 Industria de Diseno Textil SA (Inditex SA) ITX.F Spain 31.75 6% 2% 19 709 6 633 66 485 Benetton Group SpA BNG.MI Italy 5.76 16% -4% 995 318 1 436 LPP SA LPPP.WA Poland 992.00 3% -20% 372 177 179 Marimekko Oyj MMO1V.HE Finland 8.60 3% 3% 69 45 20 APRANGA (LITH) APG1L.VL Lithuania 1.51 -21% -30% 15 7 8 Silvano Fashion Group AS SFGAT.TL Estonia 0.31 29% -39% 12 8 10



(%)

TTM EPS growth

(%)

Last Q Statement


Baltika AS 0.5 - - 31.12.2008 -2.1 2.7 1.8 1.3 3.3PEER GROUP MEDIAN 2.2 -16% 2% 9.2 13.0 11.3 9.1 7.9H & M Hennes & Mauritz AB 7.6 -28% - 28.02.2009 20.9 18.6 16.6 14.5 253.3Industria de Diseno Textil SA (Inditex SA) 4.2 -4% - 31.01.2009 15.8 16.7 14.8 13.5 11.1Benetton Group SpA 0.7 12% 9% 31.12.2008 6.6 8.9 8.8 7.7 6.2LPP SA 2.8 25% 9% 31.12.2008 9.2 13.0 11.3 9.1 7.9Marimekko Oyj 2.2 -45% -4% 31.12.2008 9.4 13.9 11.3 10.7 8.6APRANGA (LITH) 0.6 -58% -45% 31.12.2008 3.9 3.5 1.9 1.2 4.5Silvano Fashion Group AS 0.3 - - 31.12.2008 -1.6 -1.3 1.7 1.2 -3.2

VALUATIONEV/

EBITDA TTM

EV/ EBITDA 2009

EV/ EBITDA

2010

EV/ EBITDA 2011

FY 2008 Div Yld %


EV/Sales 2009

Baltika AS 10.2 3.2 2.5 2.0 0.0% 0.12 0.11 0.35 0.30PEER GROUP MEDIAN 5.6 7.2 6.7 5.8 4.6% 0.85 0.76 0.83 0.85H & M Hennes & Mauritz AB 13.0 11.3 10.1 8.8 4.6% 3.39 2.80 3.11 2.58Industria de Diseno Textil SA (Inditex SA) 8.5 8.4 7.5 6.7 3.3% 1.90 1.89 1.78 1.78Benetton Group SpA 5.0 5.6 5.4 4.9 5.5% 0.49 0.48 0.83 0.85LPP SA 7.0 7.2 7.0 5.8 0.0% 0.95 0.76 1.21 0.97Marimekko Oyj 5.6 7.8 6.7 6.3 5.8% 0.85 0.92 0.78 0.84APRANGA (LITH) 3.0 2.9 5.0 4.2 6.0% 0.13 0.12 0.30 0.29Silvano Fashion Group AS 4.0 1.7 1.1 1.0 0.0% 0.11 0.13 0.23 0.26


EBITDA margin

TTM EBIT margin

TTM Net margin

D/E last QNet

debt/EBITDA

Current Ratio, LFI


2011Baltika AS -6% -3% 3% 0% -2% 92% 6.6 1.3 15%

PEER GROUP MEDIAN 24% 16% 17% 12% 9% 22% 4.1 1.4 9%H & M Hennes & Mauritz AB 39% 30% 24% 21% 16% 0% - 3.2 12%Industria de Diseno Textil SA (Inditex SA) 28% 17% 21% 15% 12% 5% - 1.4 9%Benetton Group SpA 11% 6% 17% 12% 7% 64% 2.2 1.3 1%LPP SA 33% 16% 17% 13% 10% 98% 6.8 1.2 16%Marimekko Oyj 24% 18% 14% 12% 9% 1% - 3.7 -1%APRANGA (LITH) 15% 7% 10% 5% 3% 81% 6.0 0.9 14%Silvano Fashion Group AS -17% -9% 6% 3% -6% 22% 2.0 2.1 9%




Norma AS TRADING DATA RIC Country

Price Close (LC)


(RTP)


(%)

YTD price performa

nce

Market Cap (€m)



Norma AS NRM1T.TL Estonia 2.75 7.60 2% 6% 36 17 20 PEER GROUP MEDIAN 20% 55%Autoliv Inc ALV.N Sw eden 23.44 23% 16% 1 525 1 515 33 942 TRW Automotive Holdings Corp TRW.N United States 7.52 123% 122% 582 56 5 340 Kendrion NV SVEL.AS Netherlands 7.14 -4% -1% 73 40 39 DENSO CORP 6902.T Japan 2280.00 11% 55% 14 546 9 099 79 707 TOKAI RIKA CO LTD 6995.T Japan 1216.00 20% 56% 869 503 5 869 Takata Corp 7312.T Japan 1093.00 33% 74% 709 262 3 056 ASHIMORI INDUSTRY CO LTD 3526.T Japan 100.00 6% 3% 45 34 40



(%)

TTM EPS growth

(%)

Last Q Statement


Norma AS 0.6 -16% -11% 31.03.2009 6.0 9.9 9.7 7.3 3.9PEER GROUP MEDIAN 0.8 30% 80% 5.8 -5.2 -9.8 21.1 3.5Autoliv Inc 0.9 - -93% 31.03.2009 101.6 -17.8 23.2 12.2 3.5TRW Automotive Holdings Corp 0.7 - - 31.12.2008 -1.0 -1.9 -5.4 10.3 1.0Kendrion NV 0.8 - 254% 31.12.2008 5.8 17.9 14.3 10.5 2.5DENSO CORP 1.1 - - 31.12.2008 - -28.7 -19.8 59.8 8.3TOKAI RIKA CO LTD 0.8 - - 31.12.2008 - 78.5 -14.2 84.4 5.8Takata Corp 0.6 - - 31.12.2008 - -13.6 -17.9 29.9 4.5ASHIMORI INDUSTRY CO LTD 0.3 30% - 31.12.2008 - -5.2 - - 3.4

VALUATIONEV/

EBITDA TTM

EV/ EBITDA 2009

EV/ EBITDA

2010

EV/ EBITDA 2011

FY 2008 Div Yld %


EV/Sales 2009

Norma AS -0.3 -0.6 -0.6 -0.5 11.6% 0.41 0.62 -0.04 -0.06PEER GROUP MEDIAN 8.1 8.6 7.7 5.1 1.7% 0.30 0.33 0.56 0.28Autoliv Inc 7.3 12.0 6.3 5.7 1.2% 0.30 0.46 0.56 0.70TRW Automotive Holdings Corp 30.1 8.8 4.4 3.5 0.0% 0.05 0.07 0.22 0.28Kendrion NV 8.1 11.1 9.0 8.0 1.7% 0.35 0.47 0.75 1.00DENSO CORP - 8.4 11.7 6.6 1.3% - 0.60 - 0.64TOKAI RIKA CO LTD - 5.4 9.0 4.4 2.4% - 0.33 - 0.27Takata Corp - 4.3 6.4 4.4 2.3% - 0.24 - 0.27ASHIMORI INDUSTRY CO LTD - - - - 2.4% - 0.13 - 0.05


EBITDA margin

TTM EBIT margin

TTM Net margin

D/E last QNet

debt/EBITDA

Current Ratio, LFI


2011Norma AS 10% 9% 13% 9% 10% 0% - 9.8 -12%

PEER GROUP MEDIAN 3% 1% 8% 2% 0% 46% 4.3 1.6 -6%Autoliv Inc 1% 0% 8% 2% 0% 87% 3.3 2.1 -6%TRW Automotive Holdings Corp -36% -7% 1% -3% -5% 258% 29.5 1.0 -4%Kendrion NV 6% 2% 9% 5% 2% 92% 4.3 1.1 -6%DENSO CORP 4% 3% - - - 29% - 1.9 -5%TOKAI RIKA CO LTD - - - - - 4% - 1.8 -9%Takata Corp - - - - - 46% - 1.6 -8%ASHIMORI INDUSTRY CO LTD - - - - - 0% - 1.5 -




Merko Ehitus AS TRADING DATA RIC Country

Price Close (LC)


(RTP)


(%)

YTD price performa

nce

Market Cap (€m)



Merko Ehitus AS MRK1T.TL Estonia 2.36 7.62 7% -16% 42 11 27 PEER GROUP MEDIAN 13% 22%YIT Oyj YTY1V.HE Finland 6.60 28% 44% 826 735 6 022 Lemminkainen Oyj LEM1S.HE Finland 17.60 11% 35% 300 104 97 Skanska AB SKAb.ST Sw eden 83.00 14% 10% 3 224 2 957 25 172 NCC AB NCCb.ST Sw eden 71.00 21% 46% 719 450 3 399 Peab AB PEABb.ST Sw eden 33.70 30% 60% 877 507 2 102 Koninklijke BAM Groep NV BAMN.AS Netherlands 7.02 3% 9% 948 701 7 420 Panevezio Statybos Trestas PTR1L.VL Lithuania 1.50 6% 0% 7 3 24 Nordecon International AS NCN1T.TL Estonia 0.67 5% -34% 21 8 11



(%)

TTM EPS growth

(%)

Last Q Statement


Merko Ehitus AS 0.3 -54% -46% 31.12.2008 2.2 3.7 2.6 2.3 1.1PEER GROUP MEDIAN 1.1 -5% -33% 5.5 8.9 9.3 7.4 14.7YIT Oyj 1.2 -96% -63% 31.03.2009 10.0 12.7 10.2 7.4 17.3Lemminkainen Oyj 1.0 20% -23% 31.12.2008 5.4 10.6 9.6 7.5 12.2Skanska AB 1.9 - -35% 31.12.2008 11.5 12.9 14.1 12.8 64.0NCC AB 1.2 -16% -31% 31.12.2008 4.4 9.7 11.5 9.1 61.8Peab AB 1.5 -5% 12% 31.12.2008 5.5 8.1 8.9 8.3 -Koninklijke BAM Groep NV 1.1 - -54% 31.12.2008 5.9 5.2 6.1 5.5 7.5Panevezio Statybos Trestas 0.2 240% 69% 31.12.2008 0.5 1.1 1.4 1.6 -Nordecon International AS 0.4 - -46% 31.12.2008 2.2 1.8 2.0 1.5 1.1

VALUATIONEV/

EBITDA TTM

EV/ EBITDA 2009

EV/ EBITDA

2010

EV/ EBITDA 2011

FY 2008 Div Yld %


EV/Sales 2009

Merko Ehitus AS - 2.6 2.0 1.7 0.0% 0.13 0.17 0.12 0.17PEER GROUP MEDIAN 4.1 6.1 6.5 5.7 6.4% 0.13 0.15 0.21 0.22YIT Oyj 6.2 8.0 8.3 6.8 4.5% 0.22 0.24 0.38 0.42Lemminkainen Oyj 1.3 1.8 1.9 1.8 3.5% 0.12 0.14 0.08 0.09Skanska AB 8.3 6.2 6.3 5.9 6.3% 0.25 0.26 0.21 0.22NCC AB 4.1 6.0 6.6 6.1 4.8% 0.14 0.15 0.20 0.22Peab AB - 6.1 6.9 5.4 6.5% 0.18 0.26 0.43 0.39Koninklijke BAM Groep NV 6.3 6.2 6.9 6.0 7.1% 0.11 0.11 0.23 0.25Panevezio Statybos Trestas 0.6 1.1 1.2 1.3 6.7% 0.04 0.05 0.06 0.08Nordecon International AS 1.2 1.0 1.1 0.9 25.4% 0.08 0.07 0.09 0.08


EBITDA margin

TTM EBIT margin

TTM Net margin

D/E last QNet

debt/EBITDA

Current Ratio, LFI


2011Merko Ehitus AS 15% 8% - 11% 10% 37% - 2.2 -3%

PEER GROUP MEDIAN 19% 5% 6% 4% 3% 77% 2.7 1.3 -3%YIT Oyj 11% 3% 6% 5% 2% 118% 2.7 1.7 -4%Lemminkainen Oyj 18% 5% 6% 5% 3% 38% - 1.2 -6%Skanska AB 16% 4% 3% 3% 2% 17% - 1.2 -3%NCC AB 26% 5% 5% 4% 3% 81% 14.0 1.4 -6%Peab AB 22% 5% - 4% 3% 105% - 1.3 4%Koninklijke BAM Groep NV 18% 2% 4% 3% 2% 209% 3.4 1.3 -2%Panevezio Statybos Trestas 52% 14% 11% 9% 7% 58% 0.7 1.7 -7%Nordecon International AS 20% 8% 7% 5% 4% 72% 1.3 1.3 11%




TEO LT AB TRADING DATA RIC Country

Price Close (LC)


(RTP)


(%)

YTD price performa

nce

Market Cap (€m)



TEO LT AB TEO1L.VL Lithuania 1.28 2.39 4% 10% 286 108 208 PEER GROUP MEDIAN -8% -11%Eesti Telekom AS ETLAT.TL Estonia 4.88 3% 26% 676 99 149 Telefonica O2 Czech Republic AS SPTTsp.PR Czech Republic 402.10 0% -1% 5 045 1 493 8 062 Magyar Telekom Nyrt. MTEL.BU Hungary 504.00 -9% -13% 1 837 731 5 119 Telekomunikacja Polska SA TPSA.WA Poland 17.97 -8% -15% 5 292 2 438 12 719 Elisa Oyj ELI1V.HE Finland 10.22 -8% -18% 1 567 1 362 9 099 TeliaSonera AB TLSN.ST Sw eden 37.00 -6% 1% 15 986 7 673 57 557 Koninklijke KPN NV KPN.AS Netherlands 9.41 -9% -10% 15 889 15 730 79 053 Telecom Italia SpA TLIT.MI Italy 0.93 -11% -17% 18 493 15 145 118 789



(%)

TTM EPS growth

(%)

Last Q Statement


TEO LT AB 0.9 -4% -3% 31.03.2009 6.3 6.5 6.4 6.7 15.9PEER GROUP MEDIAN 1.6 1% -10% 9.1 9.2 8.5 8.1 4.4Eesti Telekom AS 2.5 -12% -10% 31.03.2009 7.8 8.2 7.7 7.5 5.3Telefonica O2 Czech Republic AS 1.7 0% 10% 31.12.2008 11.7 11.7 11.1 10.6 -Magyar Telekom Nyrt. 0.9 1537% 47% 31.12.2008 5.2 6.4 6.4 6.7 2.3Telekomunikacja Polska SA 1.4 -63% -37% 31.12.2008 13.7 10.4 9.7 8.8 -Elisa Oyj 1.9 4% -18% 31.03.2009 8.9 9.1 8.5 8.0 3.5TeliaSonera AB 1.3 -15% -8% 31.03.2009 9.2 9.0 8.4 8.1 6.5Koninklijke KPN NV 4.2 1% -46% 31.12.2008 12.2 10.2 8.9 8.3 -Telecom Italia SpA 0.7 96% -9% 31.12.2008 8.3 9.3 8.6 7.8 -

VALUATIONEV/

EBITDA TTM

EV/ EBITDA 2009

EV/ EBITDA

2010

EV/ EBITDA 2011

FY 2008 Div Yld %


EV/Sales 2009

TEO LT AB 2.1 2.2 2.2 2.2 18.1% 1.19 1.20 0.89 0.90PEER GROUP MEDIAN 4.8 4.9 4.8 4.9 8.4% 1.25 1.24 1.75 1.78Eesti Telekom AS 4.0 4.2 4.1 4.0 11.8% 1.71 1.88 1.51 1.66Telefonica O2 Czech Republic AS 4.8 4.8 4.8 4.9 11.9% 2.15 2.13 2.09 2.07Magyar Telekom Nyrt. 2.8 3.2 3.2 3.3 14.2% 0.73 0.82 1.12 1.27Telekomunikacja Polska SA 4.1 3.9 3.9 4.0 9.3% 1.40 1.37 1.68 1.66Elisa Oyj 5.1 5.1 5.0 5.0 6.4% 1.07 1.10 1.64 1.69TeliaSonera AB 8.4 6.7 6.5 6.3 5.1% 1.65 1.54 2.23 2.08Koninklijke KPN NV 5.3 5.1 5.0 4.9 7.5% 1.11 1.11 1.85 1.87Telecom Italia SpA 4.9 4.9 4.9 4.8 5.2% 0.60 0.63 1.83 1.89


EBITDA margin

TTM EBIT margin

TTM Net margin

D/E last QNet

debt/EBITDA

Current Ratio, LFI


2011TEO LT AB 14% 13% 42% 23% 19% 1% - 6.7 0%

PEER GROUP MEDIAN 17% 9% 38% 21% 14% 59% 3.3 0.9 -1%Eesti Telekom AS 29% 26% 38% 29% 23% 0% - 4.6 0%Telefonica O2 Czech Republic AS 14% 11% 44% 24% 18% 4% - 0.9 -1%Magyar Telekom Nyrt. 18% 9% 40% 24% 16% 67% 287.5 0.9 -5%Telekomunikacja Polska SA 13% 7% 41% 17% 10% 35% 3.3 0.6 -4%Elisa Oyj 22% 9% 32% 18% 12% 108% 1.8 0.7 -2%TeliaSonera AB 16% 9% 26% 28% 20% 51% 23.6 1.2 4%Koninklijke KPN NV 32% 5% 35% 18% 9% 372% 2.1 0.6 0%Telecom Italia SpA 9% 3% 37% 18% 7% 164% 3.3 0.8 -1%




Grindeks AS

TRADING DATA RIC Country

Price Close (LC)


(RTP)


(%)

YTD price performa

nce

Market Cap (€m)



Grindeks AS GRD1R.RI Latvia 2.25 5.88 13% -30% 30 12 16 PEER GROUP MEDIAN 16% 10%Antibiotice SA ATBE.BX Romania 0.53 31% 39% 57 26 30 Krka dd Novo Mesto KRKG.LJ Slovenia 52.64 -1% 10% 1 779 1 300 628 Bioton SA BOTN.WA Poland 0.29 32% 33% 198 115 1 743 Biofarm SA BIOF.BX Romania 0.15 86% 80% 38 38 58 Richter Gedeon Vegyeszeti Gyar Nyilvanosan Mukodo Rt.

GDRB.BU Hungary 29000 16% -7% 1 841 1 356 5 563

Sanitas SAN1L.VL Lithuania 6.80 0% -22% 61 40 3 EGIS Nyrt EGIS.BU Hungary 11900 3% 8% 316 150 481 Olainfarm AS OLF1R.RI Latvia 0.34 48% -11% 7 2 3



(%)

TTM EPS growth

(%)

Last Q Statement


Grindeks AS 0.5 -39% 26% 31.12.2008 2.4 3.3 2.3 2.3 3.6PEER GROUP MEDIAN 0.9 54% 18% 6.2 13.2 10.0 8.3 11.8Antibiotice SA 0.9 - -72% 31.12.2008 22.4 17.5 8.1 8.3 -Krka dd Novo Mesto 2.3 29% 18% 31.12.2008 11.4 10.5 9.1 7.8 11.8Bioton SA 0.6 - - 31.12.2008 -22.1 29.0 14.5 9.1 30.3Biofarm SA 1.2 - - 31.12.2008 -7.4 14.7 14.7 - -Richter Gedeon Vegyeszeti Gyar Nyilvanosan Mukodo Rt.

1.5 98% 18% 31.12.2008 11.8 11.8 10.9 10.3 11.5

Sanitas 0.7 - - 31.12.2008 -112.3 - - - 2.7EGIS Nyrt 0.7 54% 43% 31.12.2008 6.2 6.9 6.0 6.2 20.2Olainfarm AS 0.3 - - 31.12.2008 -3.4 3.4 1.6 1.1 3.2

VALUATIONEV/

EBITDA TTM

EV/ EBITDA 2009

EV/ EBITDA

2010

EV/ EBITDA 2011

FY 2008 Div Yld %


EV/Sales 2009

Grindeks AS 2.2 2.8 2.0 1.9 0.0% 0.34 0.35 0.46 0.47PEER GROUP MEDIAN 6.5 6.2 5.2 5.1 1.5% 1.87 1.67 1.81 1.41Antibiotice SA 6.7 6.7 4.8 5.1 2.8% 1.05 0.94 1.18 1.06Krka dd Novo Mesto 6.3 6.2 5.7 5.4 2.2% 1.87 1.67 2.06 1.84Bioton SA 62.4 13.7 9.9 7.5 0.0% 2.73 2.02 4.18 3.06Biofarm SA 6.5 5.8 5.2 4.7 - 2.30 1.81 1.84 1.41Richter Gedeon Vegyeszeti Gyar Nyilvanosan Mukodo Rt.

7.8 7.4 6.9 6.5 2.0% 2.07 2.07 1.81 1.81

Sanitas 6.1 3.7 3.5 3.4 0.0% 0.55 0.46 1.44 1.19EGIS Nyrt 4.2 3.7 3.5 3.6 1.0% 0.78 0.77 0.67 0.66Olainfarm AS 8.8 2.6 1.9 1.4 0.0% 0.23 0.17 0.65 0.48


EBITDA margin

TTM EBIT margin

TTM Net margin

D/E last QNet

debt/EBITDA

Current Ratio, LFI


2011Grindeks AS 21% 15% 21% 18% 15% 17% 0.4 3.5 11%

PEER GROUP MEDIAN 4% 3% 23% 13% 5% 24% 8.1 2.0 10%Antibiotice SA 4% 3% 18% 12% 5% 29% 3.1 1.7 5%Krka dd Novo Mesto 21% 13% 32% 25% 16% 24% 0.6 2.0 11%Bioton SA -3% -2% 7% -1% -13% 38% 95.0 1.0 33%Biofarm SA -15% -14% 29% 22% -33% 1% - 4.6 16%Richter Gedeon Vegyeszeti Gyar Nyilvanosan Mukodo Rt.

13% 11% 23% 14% 18% 2% - 4.9 3%

Sanitas -1% 0% 24% 13% 0% 114% 13.0 0.4 10%EGIS Nyrt 12% 10% 16% 9% 13% 2% - 4.4 0%Olainfarm AS -9% -5% 7% -4% -7% 60% 4.0 1.4 26%




Methodology of Relative Valuation Report Relative valuation report compares selected valuation multiples of the peer group with the company. Assuming similar risks, we show what would be the target value of a company based on its respective peer group multiple. This product presents also a Relative Target Price (RTP) which is an alternative view on the company’s value to DCF. Four general multiples are being used: future P/E, future EV/EBITDA, last reported P/B and future dividend yield.

The product relies on Swedbank Markets (SWB) assumptions on future looking net earnings, EBITDA and in some situations dividend yield. These assumptions are presented in detail in our regular research updates.

CompanyCurrent

Price Close (€)

Average P/E 2009-

2011

Average EV/EBITDA 2009-2011

Median LFI P/B

Median 2008

Dividend Yield

P/E EV/ EBITDA P/B

2008 Dividend

Yield

Relative Target

price (RTP)

Discount/ (Premium) on the RTP

Eesti Telekom AS 4.88 5.36 5.58 2.64 7.93 20% 20% 10% 50% 6.42 31%Scenario II 33% 33% 33% 0% 4.53 -7%

Scenario III 25% 25% 25% 25% 5.38 10%

WeightsTarget Prices

Average P/E 2009-2011 Future looking earnings ratios of the peer group are compared to SWB estimates. We arrive at the average P/E 2009-2011 target price by multiplying our forecasted EPS’s with median price to earnings ratio of the peer group. We take the mean average of the three target values for smoothing the result.

TPEP / – average P/E 2009-2011 based target price. mFYEP 1/ – peer group median P/E multiple based on consensus estimates for the first forward-looking year (currently 2009). mFYEP 2/ – peer group median P/E multiple based on consensus estimates for the second forward-looking year (currently 2010). mFYEP 3/ – peer group median P/E multiple based on consensus estimates for the third forward-looking year (currently 2011).

1FYEPS – SWB earnings per share forecast for the company’s first forward looking year (currently 2009).

1FYEPS – SWB earnings per share forecast for the company’s second forward looking year (currently 2010).

1FYEPS – SWB earnings per share forecast for the company’s for the third forward looking year (currently 2011).

( ) ( ) ( )3

*/*/*// 332211 FYmFYFY

mFYFY

mFY

TPEPSEPEPSEPEPSEPEP ++

=

Average P/E 2009-2011

2009 2010 2011Peer Group Median P/E 9.0 8.5 8.0EPS (SWB forecast) 0.61 0.64 0.65

Target Value Per Share 5.46 5.43 5.20Average P/E 2009-2011 5.36

Example: Eesti Telekom AS

Average EV/EBITDA 2009-2011 EV/EBITDA based target price is derived from the market EV/EBITDA ratio which is multiplied by SWBEBITDA estimates. For simplicity and accuracy, we use present EV value in the future-looking ratios.

Average EV/EBITDA 2009-2011 based target price is calculated in following steps. First, to arrive at the EV for the respective year, we multiply SWB EBITDA forecasts with the peer group median EV/EBITDA ratio. Then we subtract the net debt from the EV value to arrive at the market cap. Finally we indicate the per share value of this market cap, i.e. the target price.

EV/EBITDA based target price is derived from the market EV/EBITDA ratio which is multiplied by SWBEBITDA estimates. For simplicity and accuracy, we use present EV value in the future-looking ratios.

Average EV/EBITDA 2009-2011 based target price is calculated in following steps. First, to arrive at the EV for the respective year, we multiply SWB EBITDA forecasts with the peer group median EV/EBITDA ratio. Then we subtract the net debt from the EV value to arrive at the market cap. Finally we indicate the per share value of this market cap, i.e. the target price. EV - enterprise value _(current market cap plus current net debt).




ND - current net debt S - number of current common shares outstanding

TPEBITDAEV / – average EV/EBITDA 2009-2011 based target price. mFYEBITDAEV 1/ – peer group median EV/EBITDA multiple for the first forward looking year (currently 2009) based on current

EV (latest market cap and last reported net debt). mFYEBITDAEV 2/ – peer group median EV/EBITDA multiple for the second forward looking year (currently 2010) based on

current EV (latest market cap and last reported net debt). mFYEBITDAEV 3/ – peer group median EV/EBITDA multiple for the third forward looking year (currently 2011) based on current

EV (latest market cap and last reported net debt).

1FYEBITDA - SWB EBITDA forecast for the company’s first forward looking year (currently 2009)



3

])*/[(])*/[(])*/[(

/332211

SNDEBITDAEBITDAEV

SNDEBITDAEBITDAEV

SNDEBITDAEBITDAEV

EBITDAEVFY

mFYFY

mFYFY

mFY

TP

−+

−+

−

=

Average EV/EBITA 2009-2011

2009 2010 2011Peer Group Median EV/EBITDA 4.75 4.69 4.74EBITDA (€m) (SWB forecast) 142.9 146.5 150.0Target Enterprise Value (€m) 679.0 687.6 710.1Net Debt (€m)Target Market Cap (€m) 755.9 764.5 787.0Shares Outstanding (m)

Target Value Per Share 5.48 5.54 5.70Average EV/EBITA 2009-2011

-76.9

138.0

5.58


Median LFI P/B Price to book ratio based target price is derived by multiplying book value per share with the market median multiple. We use the latest historical figure for accuracy.

TPBP / - median last historical quarter price to book based target price mLFIBP / - last reported quarter median price to book ratio of the peer group.

LFIBVPS - company’s book value per share, last reported quarter.

LFImLFITP BVPSBPBP *// =

Median LFI P/B

Median LFI P/B Ratio 1.33Book Value Per Share (€) 1.99

Target Value Per Share 2.64


Median 2008 dividend yield 2008 dividend yield based target price is derived by dividing expected (or actual, if already available) dividend per share with peer group median dividend yield.

TPyldDiv _ - target price based on 2008 dividend yield




mFYyldDiv 0_ - peer group median dividend yield estimate/actual for 2008 financial year.

0FYDPS - SWB dividend per share estimate/actual for 2008 financial year.

mFY

FYTP yldDiv

DPSyldDiv

0

0

__ =

Median 2008 Dividend Yield

Peer Group Median Dividend Yield for 2008 8.5%Dividend Per Share (SWB forecast) 0.67

Target Value Per Share 7.93


Relative Target Price (RTP) Relative Target Price is the weighted average of abovementioned target prices. Components are varied based on their industry-specific relevance and are set by the analyst covering this stock.

Relative Target Price is the weighted average of abovementioned target prices. Components are varied based on their industry-specific relevance and are set by the analyst covering this stock.

EPX / - P/E target price weight

EBITDAEVX / - EV/EBITDA target price weight

BPX / - P/B target price weight

yldDivX _ - Dividend Yield target price weight

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Contacts:

Swedbank Markets Equities Desk (Estonia) Head of Equities Lauri Lind +372 6 131 355 [email protected] Equity Capital Markets Mihkel Torim +372 6 131 564 [email protected] Sales &Trading Kristiina Vassilkova +372 6 131 663 [email protected] Sales &Trading Andrus Silbaum +372 6 131 631 [email protected] Sales &Trading Andres Suimets +372 6 131 657 [email protected]

Swedbank Markets Research (Baltics)

Equity Analyst (Estonia) Pavel Lupandin +372 6 131 535 [email protected] Equity Analyst (Latvia) Marko Daljajev +372 6 131 246 [email protected] Equity Analyst (Estonia) Risto Hunt +372 6 136 796 [email protected] Equity Analyst (Lithuania) Donatas Užkurėlis +370 5 268 4395 [email protected] Equity Analyst (Lithuania) Neringa Džiugelytė +370 5 268 4733 [email protected]

Swedbank Group Homepage: www.swedbank.com. For Research products on Bloomberg please type: HBMR <GO>.

Background Information: Recommendation structure Swedbank Markets’ recommendation structure consists of six recommendations: Buy, Accumulate, Hold, Reduce, Sell and Avoid. The recommendations are based on an absolute return for the security 12 months forward. The absolute return includes share price appreciation and dividend yield combined.

The recommendations for the securities mentioned in this report are based on risk and return considerations. The higher the risk category of the investment, the higher the required return. For equity investments, returns are defined as capital appreciation and dividends received over the investment horizon of 12 months forward. The expected capital appreciation is the ratio of a stock’s target price over the current price. A company risk rating depends on its stock price volatility, liquidity and business outlook. The target price depends on a company’s fundamentals as well as the market valuation of peer stocks, and can be changed at any time if the relevant changes occur within a company/market perception of the peer group. “Buy”, “accumulate”, “hold”, “reduce”, “sell” and “avoid” recommendations may be used in this report. The table below presents the relationship between recommendations and target prices compared to risk level of the stock. These are indicative ranges and actual recommendations may deviate from the indications if other relevant issues are considered. For more detailed information about the recommendation system please visit http://www.swedbank.ee/disclaimers/recommendation2007.pdf

Recommendation structure

Buy > +20% to target price Accumulate +10% < target price < +20% Hold 0% < target price < +10% Reduce -10% < target price < 0% Sell < -10% to target price Avoid used when security does not match the standards presented in HBMS’s investment guidelines

The recommendation by Swedbank Markets Equity Research department is based on a variety of standard valuation models. However, the base for the calculation of the target price is our DCF model (DCF = discounted cash flow) with the exception of financial and investment companies. The DCF model discounts future cash flow at present value.

In preparation of this report different valuation methods have been used, including, but not limited to, discounted free cash-flow and comparative analysis. The selection of methods depends on the industry, the company, the nature of the stock and other circumstances.

The target price (previous fair value) takes into account the DCF value, the relative valuation of the share versus others peers (national or international) and news that can have a positive or negative effect on the share price. Relative and absolute multiples that we consider are: EV/EBITDA, EV/EBIT, PE, PEG and Net Asset models for companies with liquid markets for their assets and other industry specific ratios when available. Break-up valuation models are also sometimes considered.

Recommendations by the 29 apr 2009

No of shares Part of Total Buy 9 41%

Under Review 13 59%

Buy41%

Under Rev iew

59%


Information to the customer: Issuer and recipients This is a report prepared by a member of Swedbank Group: Swedbank AS in Estonia - registered address Liivalaia 8, Tallinn, 15040, regulated by Financial Supervision Authority; Swedbank AS in Latvia - registered address Balasta dambis 1a, Riga, LV-1048, regulated by the Financial and Capital Markets Commission of the Republic of Latvia; or “Swedbank” AB in Lithuania - registered address Savanoriu 19, Vilnius, LT-03502, regulated by the Securities Commission of the Republic of Lithuania. Equity research report is issued by Swedbank Markets business area within the member of Swedbank Group. The Member responsible for preparation of this research report (hereinafter “Swedbank”) is referred to on the first page of the report. This research report is produced for the private information of recipients and Swedbank is not advisory nor soliciting any action based upon it. If you are not a client of ours, you are not entitled to this research report. The Equity Research report is not, and should not be construed as, an offer to sell or solicitation of an offer to buy any securities. Analyst’s certification The analyst(s) responsible for the content of this report hereby confirm that notwithstanding the existence of any such potential conflicts of interest referred to herein, the views expressed in this report accurately reflect our personal views about the companies and securities covered. The analyst(s) further confirm not to have been, nor are or will be, receiving direct or indirect compensation in exchange for expressing any of the views or the specific recommendation contained in the report. Limitation of liability All information, including statements of fact, contained in this research report have been obtained and compiled in good faith from sources believed to be reliable. However, no representation or warranty, express or implied, is made by Swedbank with respect to the completeness or accuracy of its contents, and it is not to be relied upon as authoritative and should not be taken in substitution for the exercise of reasoned, independent judgment by you. Swedbank Markets would like to point out that recipients of the report should note that investments in capital markets e.g. such as in this document carry economic risks and statements regarding future assessments are compounded with uncertainty. The recipients and clients of Swedbank are responsible for such risks and they are recommended to supplement their decision-making information with that material which is assessed to be necessary, including but not limited to knowledge on the financial instruments in question and on the prevailing requirements as regards trading in financial instruments. Opinions contained in the report represent the analyst's present opinion only and may be subject to change. In the event that the analyst's opinion should change or a new analyst with a different opinion becomes re-sponsible for our coverage of the company, we shall endeavour (but do not undertake) to disseminate any such change, within the constraints of any regulations, applicable laws, internal procedures within Swedbank, or other circumstances. If you are in doubt as to the meaning of the recommendation structure used by Swedbank in its research, please refer to “Recommendation structure”. To the extent permitted by applicable law, no liability whatsoever is accepted by Swedbank for any direct, indirect or consequential loss arising from the use of this report.

Conflicts of interest All research reports are produced by Swedbank Markets’ Research department, which is separated from the rest of its activities by a Chinese wall; as such, research reports are independent and based solely on publicly available information. The analysts at Swedbank Markets own securities mentioned in this report, representing no more than 5% of the total share capital or voting rights of any company mentioned in this report if not indicated otherwise. Internal guidelines are implemented in order to ensure the integrity and independence of research analysts. The guidelines include rules regarding, but not limited to, contacts with covered companies, personal involvement in covered companies, participation in investment banking activities and supervision and review of research reports. Swedbank Markets would like to point out that any company mentioned in this report may have been provided a section of this report prior to its publication in order to verify its factual accuracy and the report may have been amended after that, if necessary. The remuneration of staff within the Research department may include discretionary awards based on the firm’s total earnings, including investment banking income; staff, however, shall not receive remuneration based upon specific investment banking transactions. Swedbank shall not receive compensation from the company being analyzed for making an investment recommendation or enter into an agreement with the said company to make an investment recommendation. Company specific disclosures and potential conflicts of interest In view of Swedbank’s position in its markets, recipients of this report should assume that it may currently (or may in the coming three months and beyond) be providing or seeking to provide confidential investment banking services to the companies referred to in this report and that an agreement regarding such services may have been in effect over the previous 12 months, under which Swedbank may have received payments. Recipients of this report should also note that it may happen that Swedbank, its directors, its employees or its subsidiary companies at various times have had, or have sought, positions, advisory assignments in connection with corporate finance transactions, investment or merchant banking assignments and/or lending as regards companies and/or financial instruments covered by this report. It may also occur that Swedbank Markets may act as sponsor in trading with financial instruments covered by this report. Swedbank has not been lead manager or co-lead manager over the previous 12 months of any publicly disclosed offer of financial instruments of any company mentioned din this report. Planned updates An investment recommendation for a company that Swedbank Markets monitors is normally updated when the company has published an interim report. An update is made after the publication as soon as possible considering the circumstances. In certain cases, a recommendation may be updated in the days leading up to the said report. When required – for example, if the company has some extraordinary items of news – an investment recommendation may also be updated during the period in between the reporting dates. Reproduction and dissemination This material may not be reproduced without permission from Swedbank Markets. The report may not be disseminated to physical or legal person who are citizens of, or have domicile in a country in which dissemination is not permitted according to applicable legislation or other decisions. Information contained in this report is confidential and is intended to be used solely by the clients of Swedbank Group to whom this report was addressed. By accepting this report you have accepted the declared restrictions.

Swedbank Group, 2009, All rights reserved.

The Swedbank does not have shareholdings exceeding 5 % in companies referred to in this report, but it may hold securities mentioned in this report on behalf of its clients, acting in custodial capacity. Companies mentioned in this report do not have shareholdings exceeding 5% in Swedbank. For information regarding the Bank and its internal organizational and administrative arrangements for the prevention and avoidance of conflicts of interest, refer to the following websites:

Swedbank AS in Estonia: http://www.swedbank.ee Swedbank AS in Latvia: http://www.swedbank.lv “Swedbank” AB in Lithuania: http://www swedbank lt

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