New EU car registrations

June 2014




Philippe Lorrain
Analyst
+49 40 414 3885 83
[email protected]


21. July 2014
June 2014



Hauck & Aufhuser Institutional Research AG 2



Table of Contents

June EU28 E!T" new car registrations up 4#$% &o& $
'(rr ") 11
LE*N+ ") 1$
,- +n.ustrie ") 14
Progress/0er1 *ber1irch ") 12
3hein4etall ") 15
N*3," )roup -E 18
6U6" ") 17
-"!/8*LL"N' -" 2$
9ertran.t ") 24
Elring6linger ") 25
Contacts: 8auc1 ; "ufh<user +n=est4ent 9an1ing $1



June 2014



Hauck & Aufhuser Institutional Research AG $




8auc1 ; "ufh<user
June 2014



21. July 2014

June EU28 E!T" new car registrations up 4#$% &o&

June new passenger car registrations up 4#$% &o& in the EU28E!T" to 1#2$
4illion units driven y !"ain #$2%.&' yoy() *+ #$,.2' yoy( and Italy #$%.-' yoy(

>T' European new car registrations up 5#2% &o&

=e ?/rea.: ./01I) 10R2A) /lrin3+lin3er) Rhein4etall) 560

li4ite. ?/rea.: 7ertrandt

/=e ?/rea.: none


8his 4ornin3) the A9/A released ne: "assen3er car re3istration fi3ures for June
2014) :ith a yoy increase of 4.%';

+n -pain@ the figures #$2%.&' yoy( were still positi=el& i4pacte. b& the
scrappage sche4e P+AE# 5ositively) :hile sales to "rivate custo4ers :hich are the
only eneficiary of the scra""a3e sche4e :ere u" 1<.4' yoy) sales to cor"orate and
fleet custo4ers :ere u" 20.,' and %,.,' yoy res"ectively :hich odes :ell for the
further 4arket develo"4ent.

+n U6 #$,.2'(@ the o=erall goo. econo4ic en=iron4ent continue. to show a
positi=e effect on car sales in all se34ents.

+n )er4an& #=1.&' yoy() car sales were negati=el& i4pacte. b& one less
selling .a&# !o far this year) the "ositive develo"4ent :as driven y de4and fro4
cor"orate custo4ers #$4.%' yoy( :hile "rivate de4and re4ained stale #=0.-' yoy(.

!rance saw its new car sales increase again in June #$2.>' yoy( after a stale
develo"4ent in 2ay #$0.%' yoy(. !till) the 4arket is "ositively su""orted y
cor"orate de4and as :ell as y 0/2s? o:n re3istrations :hich result in deferred
sales to "rivate custo4ers at hi3her discounts. 2oreover the consu4er confidence
see4s to still e urdened y the on3oin3 fiscal "ressure.

+talian car sales #$%.-' yoy( resu4ed 3ro:in3 in June after a %.-' yoy decline in
2ay. All in all the 4arket :as su""orted y increasin3 de4and fro4 fleet custo4ers
lookin3 for "rice incentives in H1 :hile "rivate de4and suffered fro4 ti3htenin3
access to credit facilities. Ho:ever) the 4arket should continue to "ick u" as orders
:ere u" <' yoy in June.

All in all) Europe shows signs of a stabilisation after years of declinin3 car sales.

Car 4ar1et e=olution &o& B%C
June >T'
@rance 2.>' 2.&'
Ger4any =1.&' 2.4'
Italy %.-' 2.&'
!"ain 2%.&' 1<.-'
*+ ,.2' 10.,'
EU12E!T" $#D% 2#4%
EU28E!T" 4#$% 5#1%
*! 1.1' 4.2'
9hina 11.4' 11.2'
7rasil =1&.%' =10.2'
India 14.-' =1.1'
Russia =1<.%' =<.<'
Source: ACA! "A! CAA#! A$%A&A! S'A#! A"! "loo()er*


'(rr ")
9u&E PT EU3 D2#00
*"side A Bo:nside; 1&.,'

LE*N+ ")
9u&E PT EU3 D8#00
*"side A Bo:nside; %-.-'

,- +n.ustrie ")
9u&E PT EU3 2#10
*"side A Bo:nside; 2<.>'

Progress/0er1 *ber1irch ")
9u&E PT EU3 58#00
*"side A Bo:nside; 2,.4'

3hein4etall ")
9u&E PT EU3 52#00
*"side A Bo:nside; 2<.-'

N*3," )roup -E
9u&E PT EU3 48#00
*"side A Bo:nside; 20.0'

6U6" ")
9u&E PT EU3 48#00
*"side A Bo:nside; 11.-'

-"!/8*LL"N' -"
9u&E PT EU3 15#00
*"side A Bo:nside; 41.>'

9ertran.t ")
8ol.E PT EU3 111#00
*"side A Bo:nside; 2.-'

Elring6linger ")
8ol.E PT EU3 $0#00
*"side A Bo:nside; 4.0'

June 2014



Hauck & Aufhuser Institutional Research AG 4



0estern Europe is still the .ri=er for the EUFs perfor4ance



EU12E!T" 4ar1et e=olution B>T' &o&@ in %C
Source: ACA
=12.0'
=10.0'
=-.0'
=,.0'
=4.0'
=2.0'
0.0'
2.0'
4.0'
,.0'
-.0'
10.0'
Jan @e 2ar A"r 2ay Jun Jul Au3 !e" 0ct 1ov Bec
2012 201% 2014
EU12E!T" car 4ar1et e=olution Bin unitsC
Source: ACA
0
2>0)000
>00)000
<>0)000
1)000)000
1)2>0)000
1)>00)000
Jan @e 2ar A"r 2ay Jun Jul Au3 !e" 0ct 1ov Bec
2012 201% 2014


EU28E!T" car 4ar1et e=olution B>T' &o&@ in %C
Source: ACA
=12.0'
=10.0'
=-.0'
=,.0'
=4.0'
=2.0'
0.0'
2.0'
4.0'
,.0'
-.0'
10.0'
Jan @e 2ar A"r 2ay Jun Jul Au3 !e" 0ct 1ov Bec
2012 201% 2014
EU28E!T" car 4ar1et e=olution Bin units@ 2012: EU2DE!T"C
Source: ACA
0
400)000
-00)000
1)200)000
1),00)000
Jan @e 2ar A"r 2ay Jun Jul Au3 !e" 0ct 1ov Bec
2012 201% 2014



Loo1ing at the seasonall& a.Guste. .e=elop4ent



EU12E!T" / -easonall& ".Guste. "nnual -elling 3ate =s# 12 4onth rolling sales Bin unitsC
Source: ACA+ ,auc- . Au/h0user
10)000)000
11)000)000
12)000)000
1%)000)000
14)000)000
1>)000)000
1,)000)000
Jan && Jan 00 Jan 01 Jan 02 Jan 0% Jan 04 Jan 0> Jan 0, Jan 0< Jan 0- Jan 0& Jan 10 Jan 11 Jan 12 Jan 1% Jan 14
/*1>$/@8A !AAR /*1>$/@8A Rollin3 124 !ales %2 4ovin3 avera3e #!AAR(



"n. at 4ar1et in.icators



Consu4er confi.ence
Source: "loo()er*
0.0
20.0
40.0
,0.0
-0.0
100.0
120.0
0,A0< 12A0< 0,A0- 12A0- 0,A0& 12A0& 0,A10 12A10 0,A11 12A11 0,A12 12A12 0,A1% 12A1% 0,A14
=%>.0
=%0.0
=2>.0
=20.0
=1>.0
=10.0
=>.0
0.0
*! consu4er confidence #l.s.( 9hina consu4er confidence #l.s.(
/*2< consu4er confidence #r.s.(
Une4plo&4ent rates
Source: "loo()er*
,.0
<.0
-.0
&.0
10.0
11.0
12.0
0,A0< 12A0< 0,A0- 12A0- 0,A0& 12A0& 0,A10 12A10 0,A11 12A11 0,A12 12A12 0,A1% 12A1%
4.0
>.0
,.0
<.0
-.0
&.0
10.0
11.0
/*2< une4"loy4ent rate #') l.s.( *! une4"loy4ent rate #') r.s.(

June 2014



Hauck & Aufhuser Institutional Research AG 2


Loo1ing at the .ifferent European 4ar1ets Bshort ter4 =iewC



!rench car 4ar1et e=olution B>T' &o&@ in %C
Source: ACA
=2>.0'
=20.0'
=1>.0'
=10.0'
=>.0'
0.0'
>.0'
Jan @e 2ar A"r 2ay Jun Jul Au3 !e" 0ct 1ov Bec
2012 201% 2014
!rench car 4ar1et e=olution Bin unitsC
Source: ACA
0
>0)000
100)000
1>0)000
200)000
2>0)000
Jan @e 2ar A"r 2ay Jun Jul Au3 !e" 0ct 1ov Bec
2012 201% 2014


)er4an car 4ar1et e=olution B>T' &o&@ in %C
Source: ACA
=1>.0'
=10.0'
=>.0'
0.0'
>.0'
10.0'
Jan @e 2ar A"r 2ay Jun Jul Au3 !e" 0ct 1ov Bec
2012 201% 2014
)er4an car 4ar1et e=olution Bin unitsC
Source: ACA
0
100)000
200)000
%00)000
400)000
Jan @e 2ar A"r 2ay Jun Jul Au3 !e" 0ct 1ov Bec
2012 201% 2014


+talian car 4ar1et e=olution B>T' &o&@ in %C
Source: ACA
=2>.0'
=20.0'
=1>.0'
=10.0'
=>.0'
0.0'
>.0'
10.0'
Jan @e 2ar A"r 2ay Jun Jul Au3 !e" 0ct 1ov Bec
2012 201% 2014
+talian car 4ar1et e=olution Bin unitsC
Source: ACA
0
40)000
-0)000
120)000
1,0)000
Jan @e 2ar A"r 2ay Jun Jul Au3 !e" 0ct 1ov Bec
2012 201% 2014


-panish car 4ar1et e=olution B>T' &o&@ in %C
Source: ACA
=1>.0'
=10.0'
=>.0'
0.0'
>.0'
10.0'
1>.0'
20.0'
Jan @e 2ar A"r 2ay Jun Jul Au3 !e" 0ct 1ov Bec
2012 201% 2014
-panish car 4ar1et e=olution Bin unitsC
Source: ACA
0
20)000
40)000
,0)000
-0)000
100)000
Jan @e 2ar A"r 2ay Jun Jul Au3 !e" 0ct 1ov Bec
2012 201% 2014


U6 car 4ar1et e=olution B>T' &o&@ in %C
Source: ACA
=2.0'
0.0'
2.0'
4.0'
,.0'
-.0'
10.0'
12.0'
14.0'
1,.0'
Jan @e 2ar A"r 2ay Jun Jul Au3 !e" 0ct 1ov Bec
2012 201% 2014
U6 car 4ar1et e=olution Bin unitsC
Source: ACA
0
100)000
200)000
%00)000
400)000
>00)000
Jan @e 2ar A"r 2ay Jun Jul Au3 !e" 0ct 1ov Bec
2012 201% 2014


June 2014



Hauck & Aufhuser Institutional Research AG 5


Loo1ing at the .ifferent European 4ar1ets Blong ter4 =iewC



EU12E!T" / -easonall& ".Guste. "nnual -elling 3ate B-""3C =s# actual &earl& sales Bin unitsC
Source: ACA! ,auc- . Au/h0user
10)000)000
11)000)000
12)000)000
1%)000)000
14)000)000
1>)000)000
1,)000)000
Jan 00 Jan 01 Jan 02 Jan 0% Jan 04 Jan 0> Jan 0, Jan 0< Jan 0- Jan 0& Jan 10 Jan 11 Jan 12 Jan 1% Jan 14
Annual sales !AAR %2 4ovin3 avera3e
!rance / -easonall& ".Guste. "nnual -elling 3ate B-""3C =s# actual &earl& sales Bin unitsC
Source: ACA! ,auc- . Au/h0user
1)>00)000
1)<00)000
1)&00)000
2)100)000
2)%00)000
2)>00)000
2)<00)000
Jan 00 Jan 01 Jan 02 Jan 0% Jan 04 Jan 0> Jan 0, Jan 0< Jan 0- Jan 0& Jan 10 Jan 11 Jan 12 Jan 1% Jan 14
Annual sales !AAR %2 4ovin3 avera3e


)er4an& / -easonall& ".Guste. "nnual -elling 3ate B-""3C =s# actual &earl& sales Bin unitsC
Source: ACA! ,auc- . Au/h0user
2)<00)000
2)&00)000
%)100)000
%)%00)000
%)>00)000
%)<00)000
%)&00)000
4)100)000
4)%00)000
Jan 00 Jan 01 Jan 02 Jan 0% Jan 04 Jan 0> Jan 0, Jan 0< Jan 0- Jan 0& Jan 10 Jan 11 Jan 12 Jan 1% Jan 14
Annual sales !AAR %2 4ovin3 avera3e
+tal& / -easonall& ".Guste. "nnual -elling 3ate B-""3C =s# actual &earl& sales Bin unitsC
Source: ACA! ,auc- . Au/h0user
1)100)000
1)%00)000
1)>00)000
1)<00)000
1)&00)000
2)100)000
2)%00)000
2)>00)000
2)<00)000
Jan 00 Jan 01 Jan 02 Jan 0% Jan 04 Jan 0> Jan 0, Jan 0< Jan 0- Jan 0& Jan 10 Jan 11 Jan 12 Jan 1% Jan 14
Annual sales !AAR %2 4ovin3 avera3e


-pain / -easonall& ".Guste. "nnual -elling 3ate B-""3C =s# actual &earl& sales Bin unitsC
Source: ACA! ,auc- . Au/h0user
400)000
,00)000
-00)000
1)000)000
1)200)000
1)400)000
1),00)000
1)-00)000
Jan 00 Jan 01 Jan 02 Jan 0% Jan 04 Jan 0> Jan 0, Jan 0< Jan 0- Jan 0& Jan 10 Jan 11 Jan 12 Jan 1% Jan 14
Annual sales !AAR %2 4ovin3 avera3e
U6 / -easonall& ".Guste. "nnual -elling 3ate B-""3C =s# actual &earl& sales Bin unitsC
Source: ACA! ,auc- . Au/h0user
1)>00)000
1)<00)000
1)&00)000
2)100)000
2)%00)000
2)>00)000
2)<00)000
2)&00)000
Jan 00 Jan 01 Jan 02 Jan 0% Jan 04 Jan 0> Jan 0, Jan 0< Jan 0- Jan 0& Jan 10 Jan 11 Jan 12 Jan 1% Jan 14
Annual sales !AAR %2 4ovin3 avera3e



Loo1ing at pre4iu4 =s# =olu4e an. at the .ifferent bran.s



EU12E!T" new car 4ar1et / pre4iu4 =s# =olu4e Bcurrent 4onthC
Source: ACA! ,auc- . Au/h0user
0
200)000
400)000
,00)000
-00)000
1)000)000
1)200)000
1)400)000
0, A 200- 0, A 200& 0, A 2010 0, A 2011 0, A 2012 0, A 201% 0, A 2014
10'
1>'
20'
2>'
5re4iu4 rands #l.s.( Colu4e rands #l.s.( 5re4iu4 rands #as a ' of total 4arket) r.s.(
EU12E!T" new car 4ar1et / pre4iu4 =s# =olu4e B>T'C
Source: ACA! ,auc- . Au/h0user
0
1)000)000
2)000)000
%)000)000
4)000)000
>)000)000
,)000)000
<)000)000
D8B 200- D8B 200& D8B 2010 D8B 2011 D8B 2012 D8B 201% D8B 2014
10'
1>'
20'
2>'
5re4iu4 rands #l.s.( Colu4e rands #l.s.( 5re4iu4 rands #as a ' of total 4arket) r.s.(


June 2014



Hauck & Aufhuser Institutional Research AG D


EU12E!T" new car registrations b& bran. groups Bcurrent 4onthC
Source: ACA! ,auc- . Au/h0user
5!A Grou"
11'
0ther 3rou"s and
rands
1,'
8oyota
4'
G2 Grou"
-'
@ord Grou"
<'
@iat Grou"
,'
Renault Grou"
11'
Audi
>'
5orsche $ other C6
"re4iu4
0'
Ja3uar .and Rover
1'
0ther Colks:a3en
rands
1&'
Bai4ler Grou"
>'
726 Grou"
<'



U-: No .ecline in June after a strong ,a&

U-F new light =ehicle sales were up 1#1% &o& in June and a4ounted to 1.41 4illion
units accordin3 to the 7/A. !easonally AdEusted Annual Rate #!AAR( reached 1,.&
4illion units) the hi3hest level since end 200, = e3innin3 200<. 8he recent trend
confir4s that the :eakness oserved at the e3innin3 of the year :as only :eather=
related. All in all) the solid econo4ic develo"4ent in the re3ion enefitted to the li3ht
truck se34ent #$%.>' yoy in June) $-.<' yoy D8B( :hile the "assen3er car se34ent
contracted sli3htly y c. 1' yoy after a stron3 2ay #$&' yoy(.



U- light =ehicle 4ar1et e=olution B>T' &o&@ in %C
Source: "A
=,.0'
=4.0'
=2.0'
0.0'
2.0'
4.0'
,.0'
-.0'
10.0'
12.0'
14.0'
1,.0'
Jan @e 2ar A"r 2ay Jun Jul Au3 !e" 0ct 1ov Bec
2012 201% 2014
U- light =ehicle 4ar1et e=olution Bin 1 unitsC
Source: "A
0
400
-00
1)200
1),00
Jan @e 2ar A"r 2ay Jun Jul Au3 !e" 0ct 1ov Bec
2012 201% 2014


U-" / -easonall& ".Guste. "nnual -elling 3ate B-""3C =s# actual &earl& sales Bin 4 unitsC
Source: "A
-.0
10.0
12.0
14.0
1,.0
1-.0
20.0
Jan 00 Jan 01 Jan 02 Jan 0% Jan 04 Jan 0> Jan 0, Jan 0< Jan 0- Jan 0& Jan 10 Jan 11 Jan 12 Jan 1% Jan 14
Annual sales !AAR %2 4ovin3 avera3e


















June 2014



Hauck & Aufhuser Institutional Research AG 8


The Chinese 4ar1et re4ains strong

At the sa4e ti4e) Chinese new passenger car sales grew 11#4% &o& in June to 1.,
4illion units. 8he recent sound "erfor4ance of the 4arket should also have een
su""orted y de4and fro4 custo4ers ein3 "ulled for:ard ahead of "otential car sales
restrictions y i3 cities due to the s4o3.



Chinese car 4ar1et e=olution B>T' &o&@ in %C
Source: CAA#
=%0.0'
=20.0'
=10.0'
0.0'
10.0'
20.0'
%0.0'
40.0'
>0.0'
,0.0'
Jan @e 2ar A"r 2ay Jun Jul Au3 !e" 0ct 1ov Bec
2012 201% 2014
Chinese car 4ar1et e=olution Bin unitsC
Source: CAA#
0
>00)000
1)000)000
1)>00)000
2)000)000
Jan @e 2ar A"r 2ay Jun Jul Au3 !e" 0ct 1ov Bec
2012 201% 2014


China / -easonall& ".Guste. "nnual -elling 3ate B-""3C =s# actual &earl& sales Bin unitsC
Source: CAA#! "loo()er*! ,auc- . Au/h0user
0
2)000)000
4)000)000
,)000)000
-)000)000
10)000)000
12)000)000
14)000)000
1,)000)000
1-)000)000
20)000)000
Jan 0> Jan 0, Jan 0< Jan 0- Jan 0& Jan 10 Jan 11 Jan 12 Jan 1% Jan 14
Annual sales !AAR %24ovin3 avera3e



9raHil re4ains un.er pressure



9raHilian car 4ar1et e=olution B>T' &o&@ in %C
Source: A$%A&A
=1>.0'
=10.0'
=>.0'
0.0'
>.0'
10.0'
1>.0'
20.0'
Jan @e 2ar A"r 2ay Jun Jul Au3 !e" 0ct 1ov Bec
2012 201% 2014
9raHilian car 4ar1et e=olution Bin unitsC
Source: A$%A&A
0
100)000
200)000
%00)000
400)000
Jan @e 2ar A"r 2ay Jun Jul Au3 !e" 0ct 1ov Bec
2012 201% 2014


9raHil / -easonall& ".Guste. "nnual -elling 3ate B-""3C =s# actual &earl& sales Bin unitsC
Source: A$%A&A! "loo()er*! ,auc- . Au/h0user
0
>00)000
1)000)000
1)>00)000
2)000)000
2)>00)000
%)000)000
%)>00)000
4)000)000
Jan 0% Jan 04 Jan 0> Jan 0, Jan 0< Jan 0- Jan 0& Jan 10 Jan 11 Jan 12 Jan 1% Jan 14
Annual sales !AAR %2 4ovin3 avera3e

June 2014



Hauck & Aufhuser Institutional Research AG 7


+n.ia see4s to stabilise



+n.ian car 4ar1et e=olution B>T' &o&@ in %C
Source: S'A#! "loo()er*
=2>.0'
=20.0'
=1>.0'
=10.0'
=>.0'
0.0'
>.0'
10.0'
1>.0'
20.0'
Jan @e 2ar A"r 2ay Jun Jul Au3 !e" 0ct 1ov Bec
2012 201% 2014
+n.ian car 4ar1et e=olution Bin unitsC
Source: S'A#! "loo()er*
0
>0)000
100)000
1>0)000
200)000
2>0)000
Jan @e 2ar A"r 2ay Jun Jul Au3 !e" 0ct 1ov Bec
2012 201% 2014


+n.ia / -easonall& ".Guste. "nnual -elling 3ate B-""3C =s# actual &earl& sales Bin unitsC
Source: S'A#! "loo()er*! ,auc- . Au/h0user
0
>00)000
1)000)000
1)>00)000
2)000)000
2)>00)000
Jan 00 Jan 01 Jan 02 Jan 0% Jan 04 Jan 0> Jan 0, Jan 0< Jan 0- Jan 0& Jan 10 Jan 11 Jan 12 Jan 1% Jan 14
Annual sales !AAR %2 4ovin3 avera3e



3ussia: the .ecline accelerates



3ussian light =ehicle 4ar1et e=olution B>T' &o&@ in %C
Source: A"! "loo()er*
=10.0'
=>.0'
0.0'
>.0'
10.0'
1>.0'
20.0'
2>.0'
Jan @e 2ar A"r 2ay Jun Jul Au3 !e" 0ct 1ov Bec
2012 201% 2014
3ussian light =ehicle 4ar1et e=olution Bin unitsC
Source: A"! "loo()er*
0
>0)000
100)000
1>0)000
200)000
2>0)000
%00)000
Jan @e 2ar A"r 2ay Jun Jul Au3 !e" 0ct 1ov Bec
2012 201% 2014


3ussia / 12 4onth rolling sales Bin unitsC
Source: A"! "loo()er*! ,auc- . Au/h0user
1)000)000
1)200)000
1)400)000
1),00)000
1)-00)000
2)000)000
2)200)000
2)400)000
2),00)000
2)-00)000
%)000)000
Jan 0& Jul 0& Jan 10 Jul 10 Jan 11 Jul 11 Jan 12 Jul 12 Jan 1% Jul 1% Jan 14






June 2014



Hauck & Aufhuser Institutional Research AG 10


+4plications for our co=erage

B=e ?/rea.C LE*N+ is a 9U> with a PT of I D8 B!C!>F12EC as its eF"osure to /uro"e
is still si3nificant #c. ,0' in 2012(. As the co4"any is currently launchin3 several ne:
"roducts 4ainly in the 7RI9 $ !outh +orean re3ions) the to" line develo"4ent should
e stron3 in the neFt years #9AGR 1%=1,/; $-.,'(. At the sa4e ti4e) earnin3s should
increase dis"ro"ortionately #9AGR 1%=1,/; $2<.%'( due to the 3radual eli4ination of
the initial ra4"=u" costs for ne: 4odels and a etter ca"acity utilisation. PE3F12E:
7#5? a.G# for PP"E EAJE9+TF12E: D#D? a.G# for PP"#

B=e ?/rea.C N*3," )roup is a 9U> with a PT of I 48 B!C!>F15EC as the
co4"any?s eF"osure to /uro"e is still around ,0'. 2oreover) 10R2A is ale to
4aintain its hi3h level of 4ar3ins even in a difficult 4arket environ4ent #as evidenced
durin3 the first & 4onths of 201%(. @inally) the co4"any currently enefits fro4 the
introduction of the /uro CI e4ission standard #resultin3 in an -.>' yoy increase in
sales for @D?14/(. Goin3 for:ard) the introduction of the /5A 1> in 201> in the *! and
of /uro C in lar3e 9hinese cities #in 2014/=1>/( :ill have further "ositive effects on the
to" line :hile value=accretive 2&A should not e ruled out as 10R2A can rely on a
cash "ile of c. G &44. PE3F12E: 14#D? a.G# for PP"E EAJE9+TF12E: 7#8? a.G# for PP"#

B=e ?/rea.C Elring6linger is a 8*L' with a PT of I $0 B!C!>F12EC as the co4"any
successfully inte3rated Hu3 /n3ineerin3 and the ne3ative effects fro4 the inte3ration
of @reudener3?s flat 3asket usiness are 3radually da4"enin3. 8he co4"any looks
:ell on track to further out"erfor4 the 3loal auto4otive 4arket thanks to its stron3
"roduct innovation 3eared to:ards 3reen 4oility #:ei3ht and e4ission reduction(.
PE3F12E: 14#1? a.G# for PP"E EAJE9+TF12E: 11#1? a.G# for PP"# Ho:ever) :e "refer
10R2A to /lrin3+lin3er as the co4"any is still at the e3innin3 of its 4arket?s
consolidation "hase and has a 4ore co4"rehensile "roduct "ortfolio.

B=e ?/rea.C 3hein4etall is a 9U> with a PT of I 52 Ba=g# !C!>F12/15EC as the
co4"any enefits fro4 a 3ood to"=line visiility in Befence #>0' of 3rou" sales( :hile
Auto4otive #>0' of 3rou" sales( "erfor4s :ell driven y increasin3 /uro"ean
volu4es) a further internationalisation #Asia) 1A@8A( and a secular trend to:ards
3reen 4oility #/GR valves & "u4"s) etc.(. PE3F12E: 12#2?E EAJE9+TF12E: 7#8?#

B=e ?/rea.C Progress/0er1 *ber1irch BP0*C is a 9U> with a PT of I 58
B!C!>F12EC as the co4"any stron3ly enefits fro4 a secular trend to:ards 3reen
4oility leadin3 to an increasin3 "enetration of li3ht:ei3ht "arts in 4odern cars)
es"ecially in the "re4iu4 se34ent. PE3F12E: 10#1?E EAJE9+TF12E: 11#7?
BEAJE9+T'"F12E: 5#1?C#

BLi4ite. ?/rea.C 9ertran.t is a 8*L' with a PT of I 111 B!C!>F12/15EC as the stock
is already "riced for "erfection. Re4inder; the co4"any is not de"endin3 on "roduction
or sales volu4es. PE3F14/12E: 15#0?E EAJE9+TF14/12E: 10#8?#



8auc1 ; "ufh<user / "uto4oti=e co=erage =aluation o=er=iew
3ating PT EAJ-ales EAJ-ales EAJ-ales EAJE9+T EAJE9+T EAJE9+T PE3 PE3 PE3 E9+T 4argin
2014E 2012E 2015E 2014E 2012E 2015E 2014E 2012E 2015E 2014E
11A ad2. 11A ad2. 11A ad2. 11A ad2. 11A ad2. 11A ad2. 11A ad2.
BHrr AG 7*D <>.00 0.& 0.< 0., 10.0 -.2 <.2 14.< 12.- 12.0 -.,'
+*+A AG 7*D 4-.00 0.< 0., 0., 11.& &.> <.& 2<.2 1-.< 1,.4 ,.1'
10R2A Grou" !/ 7*D 4-.00 2.0 1.- 1., 11.4 &.- -.< 1-.2 14.< 1%.4 1<.2'
/lrin3+lin3er AG H0.B %0.00 1.< 1., 1.4 1%.0 11.1 &.> 1,.< 14.1 12.% 1%.%'
./01I AG 7*D <-.00 0.> 0.> 0.4 &.- <.< >.& 12.% &., <.> >.4'
Rhein4etall AG 7*D ,2.00 0., 0., 0.> 1%., &.- <., 1-.1 12.2 &.0 4.>'
!A@=H0..A1B !A 7*D 1,.00 0.< 0., 0., &.- <.< ,., 1%.4 10.2 -.< ,.&'
7ertrandt AG H0.B 111.00 1.2 1.1 1.0 11.< 10.- &., 1<.4 1,.0 14.> 10.>'
2! Industrie AG 7*D >.10 0.- 0.< 0., 1%.- &.% ,., 1<.& 11.4 -.% >.&'
5ro3ress=6erk 0erkirch AG 7*D ,-.00 0.- 0.- 0.< 1%.1 11.& 10.0 11.2 10.1 -.4 ,.2'
Source: Co(pany data! ,auc- . Au/h0user! #ar-et#ap



Attached) you find the latest u"dates for the related co4"anies.





'(rr ")
)er4an& / Engineering



9u& #old; 7uy(
1,=July=14

Philippe Lorrain Price target: EU3 D2#00 #old; /*R <1.00(
Analyst
Price: /*R ,1.>0 Ne?t result: H1 2014 %1.0<.14
9loo4berg: B*/ GR ,ar1et cap: /*R 2)1&2.< 4
"hili""e.lorrainIha=research.de

3euters: B*/G Enterprise Aalue: /*R 2)%&<.& 4

8el.; $4& 40 414 %--> -%

"cKuisition of 8o4ag shoul. bring further secular growth
opportunities@ chg in est# ; PT

Desterday) '(rr announce. that it has reache. an agree4ent with se=eral 4aGor
sharehol.ers of 8o4ag to acKuire 2$#D% of the co4pan&Fs shares# 8he total
a4ount of the transaction is G 21&4 and re"resents a valuation 4ulti"le of >.<F
/CA/7I8BA?1>/ on H&A esti4ates #vs. ,.-F for BHrr stand alone(.

6hile Beutsche 7eteili3un3s AG and the !chuler=+less4ann share "ool :ill sell %&.>'
and %' of Ho4a3?s shares res"ectively) t:o other shareholders :ill hand over
a""roFi4ately 11' of the co4"any?s shares. 6ith the acJuisition of the %' fro4 the
!chuler=+less4ann share "ool) BHrr controls directly and indirectly u" to <>.-' of
Ho4a3?s votin3 ri3hts. A control andAor "rofit and loss transfer a3ree4ent is "lanned.
@urther4ore) '(rr offers to bu& the re4aining of 8o4ag shares for I 25#$2 per
share) or a c. 1%.1' "re4iu4 on the %=4onth C6A5.

The acKuisition is cash/finance. since '(rr has a=ailable liKui.it& in the a4ount
of I 85D4 #includin3 fro4 the "lace4ent of the co4"any?s ne: ond :ith a volu4e of
G %004( at the end of 2arch. 8he transaction :ill e closed :ith the a""roval of the
relevant antitrust authorities :hich is not eF"ected to e a 4aEor issue as oth
co4"anies o"erate in different end=4arkets. !irst significant effects fro4 a full
consoli.ation are e?pecte. for !>F12E. 1either a sJueeKe=out of the re4ainin3
shareholders nor a delistin3 of Ho4a3 is "lanned at this sta3e. 2oreover) Ho4a3 :ill
o"erate under its o:n rand as an inde"endent unit :ithin the BHrr 3rou".

'(rr ") / New group structure post 8o4ag acKuisition
Source: Co(pany data! ,auc- . Au/h0user

>JE $1#12 BEU3 4C 2010 2011 2012 201$ 2014E 2012E 2015E

!ales 1)2,1.4 1)&22.0 2)%&&.- 2)40,.& 2)<1-.% %)>01.1 %),%0.0
!ales 3ro:th 1< ' >2 ' 2> ' 0 ' 1% ' 2& ' 4 '
/7I8BA >4., 12<.1 20>.4 2%0.4 2<0.- %4&., %<2.,
/7I8 %,., 10,.> 1<,.& 20%.0 2%%.- 2-<.1 %0-.>
1et inco4e ,.% ,1.& 10<.2 140.1 14>.- 1,<.> 1<-.&
1et det =20.0 =12.4 =,%.2 =1-<.> 1%-.- 1>2., ,.&
1et 3earin3 =,.4 ' =%.> ' =14.& ' =%<.2 ' 24.1 ' 22.1 ' 0.- '
1et BetA/7I8BA 0.0 0.0 0.0 0.0 0.> 0.4 0.0
/5! "ro for4a 0.1- 1.<& %.10 4.0> 4.22 4.-4 >.1<
95! 1.0- %.10 2.>< -.<2 %.>< 1.41 >.<4
B5! 0.1> 0.,0 1.1% 1.4> 1.>0 1.>> 1.,0
Bividend yield 0.2 ' 0.& ' 1.- ' 2.% ' 2.4 ' 2.4 ' 2.> '
Gross "rofit 4ar3in 1-.- ' 1<.2 ' 1-.2 ' 20.2 ' 20.> ' 20.2 ' 20.> '
/7I8BA 4ar3in 4.% ' ,., ' -., ' &., ' 10.0 ' 10.0 ' 10.% '
/7I8 4ar3in 2.& ' >.> ' <.4 ' -.4 ' -., ' -.2 ' -.> '
R09/ ,.2 ' 14.& ' 21.- ' 22.< ' 20.% ' 20.1 ' 1&.< '
/CAsales 1.- 1.2 0.& 0.& 0.& 0.< 0.,
/CA/7I8BA 40.- 1<., 10., -.& -.& ,.& ,.1
/CA/7I8 ,0.- 21.0 12.% 10.1 10.% -.4 <.%
5/R %4,.& %>.> 20.> 1>.< 1>.0 1%.1 12.%
AdEusted @9@ yield 1.2 ' %.1 ' >.% ' ,.2 ' ,.0 ' ,.< ' <.< '
!ource; 9o4"any data) Hauck & Aufhuser 9lose "rice as of; 1>.0<.2014

!ource; 9o4"any data) Hauck & Aufhuser
8ighJlow 22 wee1s: ,<.<4 A 4&.22
PriceJ9oo1 3atio: %.<
3elati=e perfor4ance #2BAL(;
% 4onths >.& '
, 4onths =4.< '
12 4onths ,.< '

Changes in esti4ates
-ales E9+T EP-
old: 2)4&1.% 21,.< 4.0-
2014
L &.1' <.&' %.2'
old: 2)>,,.1 22-.4 4.40
2012
L %,.4' 2>.<' 10.0'
old: 2),%0.0 2%&.% 4.,%
2015
L %-.0' 2-.&' 11.-'

6e& share .ata:
1u4er of shares; #in 4 "cs( %4.,
Authorised ca"ital; #in G 4( 22.1
7ook value "er share; #in G( 1,.,
M tradin3 volu4e; #12 4onths( ><)->2

,aGor sharehol.ers:
@ree @loat <1.1 '
HeinK BHrr 2-.& '
7lackrock N %.0 '
2ain@irst N 2.4 '
1or3es 7ank I2 N 1.4 '
2ana3e4entN 1.1 '
3 included in /ree /loat

Co4pan& .escription:
!u""lier of "roducts) syste4s) and
services) 4ainly for auto4oile
4anufacturin3.


'(rr ")

12 Hauck & Aufhuser Institutional Research
3ationale of the acKuisition is@ accor.ing to '(rr@ a further .i=ersification outsi.e
the auto4oti=e in.ustr& :hich still re"resents c. 2A% of BHrr?s total sales. Burin3 its
@D?14 92B) BHrr had stated that it ai4s to acJuire healthy niche 4arket usinesses in
the "lant and 4echanical en3ineerin3 industry. BHrr had also stated that it does not look
for restructurin3 cases ut rather for co4"anies :ith 4id=ter4 earnin3s i4"rove4ent
"otential.

6ith that re3ard) 8o4ag see4s to fulfil all the criteria as the co4"any enefits fro4
B1C a .o4inant position #:orld:ide O1 "layer :ith 2-' 3loal 4arket share() #2C a
strong inno=ation capacit& and B$C an e?posure to auto4ation technolog& shared
:ith BHrr. @urther4ore) Ho4a3?s usiness offers o"ti4isation "otential at o"erational
level #"rocess i4"rove4ents) 3loal I8 structures) "urchasin3 and financin3(. Hence)
8o4ag shoul. benefit fro4 '(rrFs 1now/how in operational opti4isation #the
co4"any :as restructured and o"ti4ised in 200>=200&(. @urther4ore) BHrr should e
ale to su""ort Ho4a3 in etter eF"loitin3 the "otential in e4er3in3 4arkets #es"ecially
Asia as Ho4a3 only does 1<' of its total sales in the re3ion vs. 40' for BHrr( :here
de4and for auto4ated :ood="rocessin3 4achines is increasin3 on the ack of risin3
:a3es and suseJuent de4and for furniture.

As oth co4"anies do not yield the sa4e level of o"eratin3 4ar3ins) the acJuisition is
eF"ected to have a sli3htly dilutive effect on BHrr at the e3innin3. Ho:ever) Ho4a3 is
eF"ected to enefit fro4 stron3 end=4arkets es"ecially in 1A@8A) /astern /uro"e and
the e4er3in3 4arkets driven y a reindustrialisation in the *! and hi3her :a3es and
de4and for furniture in other re3ions. 8o3ether :ith so4e enefits fro4 the on3oin3
o"ti4isation "ro3ra44e as :ell as fro4 BHrr?s efficient internal "rocesses in sourcin3)
"roduction and I8) this shoul. lea. to a c# 2/2#2pp i4pro=e4ent in operating
4argins within 2/$ &ears#

"ll in all@ we see this step as a confir4ation that '(rrFs .o4inant position in its
4ain en./4ar1ets #%0=>0' 3loal 4arket share( 4a1es bol./on acKuisitions
unattracti=e# "s the co4pan&Fs core business is losing 4o4entu4@ 4a1ing ,;"
is a serious alternati=e for growth# In our vie:) BHrr has decided to "urchase a 3ood
asset at a fair "rice #>.,F /CA/7I8BA?1>/ vs. ,.&F for BHrr(. 2oreover) the deal should
e eneficial for Ho4a3 in the lon3 run :hich should hel" BHrr to eF"loit further secular
3ro:th "otential :hile reducin3 its eF"osure to the auto4otive industry.

0ur revised esti4ates for BHrr includin3 the full consolidation of the >%.<' stake in
Ho4a3 lead to a new PT of I D2 #old; G <1( ased on @9@D 201,/ :hich is eF"lained
y the eFchan3e of un"roductive cash into a cashflo: 3eneratin3 unit. 9U>.





LE*N+ ")
)er4an& / "uto4obile



9u& #old; 7uy(
10=July=14

Philippe Lorrain Price target: EU3 D8#00 #old; /*R <-.00(
Analyst
Price: /*R ><.<- Ne?t result: P2 2014 12.0-.14
9loo4berg: ./0 GR ,ar1et cap: /*R 1)--<., 4
"hili""e.lorrainIha=research.de

3euters: ./0Gn.B/ Enterprise Aalue: /*R 2)2<0.1 4

8el.; $4& 40 414 %--> -%

-tabilisation of European car 4ar1et bo.es well for LE*N+

!ince the e3innin3 of July) the 4aGor European countries ha=e reporte. new car
registrations figures for June an. 81F14 which bo.e well for LE*N+Fs M2;
!"ain re"orted a 2%.&' yoy increase in ne: car sales in June #$1<.-' yoy in H1(
oosted y the 5IC/ scra""a3e sche4e)
*+ ne: car sales :ere u" ,.2' yoy in June #$10.,' yoy in H1( still su""orted y
the stron3 econo4ic develo"4ent)
Italy re"orted a %.-' yoy increase in ne: car sales in June #$%.%' yoy in H1
su""orted y de4and fro4 fleet custo4ers( after a decrease of %.-' yoy in 2ay)
@rance sa: its ne: car sales increase a3ain in June :ith a %.2' yoy 3ro:th #$2.&'
yoy in H1( after a stale develo"4ent in 2ay #$0.%' yoy(. !till) the 4arket is "ositively
su""orted y cor"orate de4and as :ell as y 0/2s? o:n re3istrations.
Ger4any :as the only 4aEor 4arket to e do:n :ith a 1.&' yoy decrease #$2.4'
yoy in H1( ho:ever i4"acted y one less sellin3 day #statistical effect of c. 4'(.
"ll in all@ the 0estern European car 4ar1et was up c# $#7% &o& in June #>.4'
yoy in H1() accordin3 to .29 Auto4otive.

6hile /uro"e continues to sho: si3ns of recovery fro4 su""ressed levels #eH&A;
c. 124 ne: cars in 6/ in 2014/ vs. c. 14=1>4 in 1&&&=200<() other regions where
LE*N+ is also e?pan.ing its acti=ities BN"!T"@ "siaC are continuing on their
growth path #*! .C re3istrations u" 1' yoy in June and 4' yoy in H1) 9hina car
sales u" 14' yoy in June and 12' yoy in H1(.

8he overall develo"4ent of the :orld:ide car 4arkets odes :ell for ./01I :hich still
3enerates c. <>' of its total sales in the auto4otive usiness. Goin3 for:ard) the
co4"any should enefit fro4 #1( the ra4"=u" of "roduction of ne: 4odels and #2( the
eF"ansion into the 7RI9 $ !outh +orean re3ions. 8his is acked y a sound order
acklo3 in 6!B esti4ated at c. G 12n y the co4"any. 0n the otto4=line) an
increasin3 ca"acity utilisation in 69! as :ell as "ositive learnin3 curve effects at 6!B
should lift the 3rou"?s 4ar3in fro4 4.2' in @D?1% to ,.<' in @D?1,/.

6ith an un.e4an.ing =aluation of 8#0? EAJE9+TF12E a.Guste. for PP" #vs. &.-F for
our auto4otive covera3e() the stock re4ains a clear 9U>) es"ecially as ./01I should
enefit fro4 a recovery in /uro"e :hich still accounts for ,>' of 3rou" sales. PT is
I D8 base. on !C!>F12E#

>JE $1#12 BEU3 4C 2010 2011 2012 201$ 2014E 2012E 2015E

!ales 2)&>>.< %)<01.> %)-0&.0 %)&1<.& 4)1%<.0 4)>1,.1 >)01<.4
!ales 3ro:th %< ' 2> ' % ' % ' , ' & ' 11 '
/7I8BA 241.0 %44.2 %>4.1 2-4.1 %44.& 40&., 4-%.%
/7I8 1%0.< 2%<.1 2%<.& 1,%.1 214.& 2,<., %%,.%
1et inco4e ,<.1 1>>.< 1>,.< 10>.> 140.1 1-%.2 2%>.-
1et det 4,0.- 24,.1 2>>.- 2,%.- 2,,.& 204., 10,.&
1et 3earin3 &,.0 ' %>.4 ' %2.< ' %1.& ' 2-., ' 1&.0 ' -.> '
1et BetA/7I8BA 1.& 0.< 0.< 0.& 0.- 0.> 0.2
/5! "ro for4a 2.2, 4.&& 4.-0 %.2% 4.2& >.,1 <.22
95! 1.-1 4.1% 2.&- 2.14 %.44 4.>& >.4,
B5! 0.<0 1.>0 1.>0 1.00 1.%0 1.<0 2.10
Bividend yield 1.2 ' 2., ' 2., ' 1.< ' 2.2 ' 2.& ' %., '
Gross "rofit 4ar3in 1<.> ' 1-.2 ' 1<.< ' 1<.% ' 1<.- ' 1-.% ' 1-.& '
/7I8BA 4ar3in -.2 ' &.% ' &.% ' <.% ' -.% ' &.1 ' &., '
/7I8 4ar3in 4.4 ' ,.4 ' ,.2 ' 4.2 ' >.2 ' >.& ' ,.< '
R09/ 10.> ' 1,.& ' 1>., ' 10.< ' 14.2 ' 1,.& ' 1&.< '
/CAsales 0.- 0., 0., 0., 0.> 0.> 0.4
/CA/7I8BA &.2 ,.> ,.4 -.0 ,., >.4 4.4
/CA/7I8 1<.0 &.4 &.> 1%.& 10., -.% ,.%
5/R 2>., 11., 12.0 1<.& 1%.> 10.% -.0
AdEusted @9@ yield >.& ' -.& ' &.0 ' ,.4 ' <.- ' &.- ' 12.% '
!ource; 9o4"any data) Hauck & Aufhuser 9lose "rice as of; 0&.0<.2014

!ource; 9o4"any data) Hauck & Aufhuser
8ighJlow 22 wee1s: ,0.,, A %,.&4
PriceJ9oo1 3atio: 2.0
3elati=e perfor4ance #2BAL(;
% 4onths ,.2 '
, 4onths ,., '
12 4onths 2&.% '

Changes in esti4ates
-ales E9+T EP-
old: 4)1%<.0 214.& 4.2&
2014
L = = =
old: 4)>1,.1 2,<., >.,1
2012
L = = =
old: >)01<.4 %%,.% <.22
2015
L = = =

6e& share .ata:
1u4er of shares; #in 4 "cs( %2.<
Authorised ca"ital; #in G 4( 14.&
7ook value "er share; #in G( 2-.,
M tradin3 volu4e; #12 4onths( 2%,)>1-

,aGor sharehol.ers:
@ree @loat 100.0 '
7lackrockN 4.0 '
1or3es 7ankN %.% '
AllianK GIN 2.< '
1Hrner3er
.eensversicherun3N
2.< '
Can3uard Grou"N 1., '
3 included in /ree /loat

Co4pan& .escription:
!u""lier of :irin3 syste4s and cales)
4ainly for the auto4otive industry.




,- +n.ustrie ")
)er4an& / "uto4obile



9u& #old; 7uy(
0<=July=14

Philippe Lorrain Price target: EU3 2#10 #old; /*R >.10(
Analyst
Price: /*R 4.20 Ne?t result: P2 2014 1>.0-.14
9loo4berg: 2!AG GR ,ar1et cap: /*R 12,.0 4
"hili""e.lorrainIha=research.de

3euters: 2!AG.B/ Enterprise Aalue: /*R 1->., 4

8el.; $4& 40 414 %--> -%

3eassuring 3- N Profitable growth loo1s set to continue

@ollo:in3 a roadsho: in .ondon :ith 2! Industrie?s 9/0 Br Aufschnaiter and 900
2r Bistel last @riday) we confir4 our 9U> rating an. our PT of I 2#10 base. on
!C!>F12E#

Current tradin*: @ollo:in3 a stron3 start into the year :ith P1?14 sales u" %>' yoy to
G 4&4) 4ana3e4ent stated that the current top/line 4o4entu4 re4ains .&na4ic)
4ainly driven y "o:ertrain technolo3y :hich enefits fro4 #1( the healthiness of the
*! 4arket #class - re3istrations u" 1>' yoy D8B( and #2( the s:itch fro4 /uro C to
/uro CI :hich results in sales "er Bai4ler en3ine of c. G &00 vs. "reviously a 4iF of
G 100=1>0 and G &00 as the ra4"=u" of the 6elt4otor had not fully taken "lace.
@urther4ore) de4and for ultrasonic s"ecial :eldin3 4achines #for the auto4otive
industry( re4ains very stron3 driven y #1( the increasin3 nu4er of ne: car 4odels
and variants) #2( the increasin3 "lastic content in vehicles as :ell as #%( the fact that
0/2s no: tend to source all the :eldin3 4achines needed for one car 4odel fro4
one sin3le su""lier.

4i5ersi/ication o/ custo(er port/olio (o5es into /ocus a*ain: @ollo:in3 several years
of "articular focus on the successful ra4"=u" of Bai4ler?s 6elt4otor :hich ca4e
alon3 :ith an eF"osure of c. 4>' of total sales in @D?1%) ,- +n.ustrie will again
concentrate its efforts on the acKuisition of new custo4ers in both the on/ an.
off/roa. seg4ents #e.3. !cania) Colvo) 9ater"illar(. 8his could ha""en oth
or3anically or throu3h s4all acJuisitions.

#er*er o/ #A$ and Scania should )e positi5e /or #S 'ndustrie: 8he fact that #1( eF
Bai4ler 8rucks 4ana3er 2r Renschler?s :ill 4ove fro4 Bai4ler to C6 in @D?1> and
#2( C6 intends to fully inte3rate !cania :ith 2A1 inside C6 9o44ercial Cehicles
should e "ositive for 2! Industrie. Indeed) syner3ies fro4 the 4er3er of 2A1 and
!cania could e achieved throu3h the undle of sourcin3 activities or the introduction
of a Q:orld en3ineR :ith a 4odular desi3n #like Bai4ler?s 6elt4otor :hich :as
"ushed y 2r Renschler at Bai4ler(. In any case) the inte3ration of !cania and 2A1
should result in increasin3 volu4es for 2! Industrie :hich already acts as a sin3le
source su""lier for rocker ar4s for 2A1?s heavy truck and stationary en3ines
:orld:ide and :hich should :in !cania as a custo4er as :ell.

As :e eF"ect 2! Industrie to continue its dyna4ic develo"4ent the stock?s valuation
still looks unde4andin3 :ith a PE3F12E of 12? a.Guste. for PP". Hence) we
confir4 our 9U> rating# PT of I 2#10 is base. on !C!>F12E#

>JE $1#12 BEU3 4C 2010 2011 2012 201$ 2014E 2012E 2015E

!ales 11,.< 1>4.% 1<4.- 1<&.- 212.1 2%<.% 2,<.-
!ales 3ro:th 14 ' %2 ' 1% ' % ' 1- ' 12 ' 1% '
/7I8BA 1>.& 20.& 1,.% 1<.% 21., 2,., %2.1
/7I8 >., &.2 ,.0 ,.< 11.2 1,.% 2%.2
1et inco4e 0.- 2.1 2.1 2.0 >.4 &.2 14.0
1et det 4&.> <4.% -1.- -4.& >&., 4&.> %<.1
1et 3earin3 1>,.% ' 21-.- ' 2%<.> ' 2%<.& ' 1,1.& ' 10<., ' ,1.- '
1et BetA/7I8BA %.1 %.> >.0 4.& 2.- 1.& 1.2
/5! "ro for4a 0.0% 0.14 0.0& 0.0- 0.1- 0.%1 0.4<
95! =0.%, =0.>2 =0.01 0.00 0.11 0.20 0.2-
B5! 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Bividend yield 0.0 ' 0.0 ' 0.0 ' 0.0 ' 0.0 ' 0.0 ' 0.0 '
Gross "rofit 4ar3in 42., ' 42.> ' 42.2 ' 4>.< ' 4%., ' 4%., ' 4%.1 '
/7I8BA 4ar3in 1%., ' 1%., ' &.% ' &., ' 10.2 ' 11.2 ' 12.0 '
/7I8 4ar3in 4.- ' ,.0 ' %.4 ' %.< ' >.% ' ,.& ' -., '
R09/ >.4 ' <.& ' 4., ' >.0 ' -.& ' 1%.4 ' 1&.0 '
/CAsales 1.4 1.% 1.2 1.2 0.& 0.< 0.,
/CA/7I8BA 10.% &.> 12., 12.1 -., ,., >.1
/CA/7I8 2&.1 21.< %4.2 %1.0 1,., 10.< <.0
5/R 1%<.4 2&.& 4<.4 >>.< 2%.% 1%.< &.0
AdEusted @9@ yield >.2 ' <.1 ' >.1 ' 4., ' ,.2 ' -., ' 11.0 '
!ource; 9o4"any data) Hauck & Aufhuser 9lose "rice as of; 04.0<.2014

!ource; 9o4"any data) Hauck & Aufhuser
8ighJlow 22 wee1s: 4.20 A 1.,-
PriceJ9oo1 3atio: %.4
3elati=e perfor4ance #!BAL(;
% 4onths 24.1 '
, 4onths 44., '
12 4onths 11&.0 '

Changes in esti4ates
-ales E9+T EP-
old: 212.1 11.2 0.1-
2014
L = = =
old: 2%<.% 1,.% 0.%1
2012
L = = =
old: 2,<.- 2%.2 0.4<
2015
L = = =

6e& share .ata:
1u4er of shares; #in 4 "cs( %0.0
Authorised ca"ital; #in G 4( &.<
7ook value "er share; #in G( 1.2
M tradin3 volu4e; #12 4onths( >2)&41

,aGor sharehol.ers:
@ree @loat ,4.0 '
2! 5roActive 20.0 '
2ana3e4ent 10.0 '
Breyer Centures &
2ana3e4ent
,.0 '
Ruffer N >.4 '
AllianK GI N 4.2 '
3 included in /ree /loat

Co4pan& .escription:
!u""lier of Biesel 4otor "arts and
syste4s for truck 0/2s) of electric
4otors and of :eldin3 4achines for the
auto4otive and "acka3in3 industries.




Progress/0er1 *ber1irch ")
)er4an& / "uto4obile



9u& #old; 7uy(
2,=June=14

Philippe Lorrain Price target: EU3 58#00 #old; /*R ,-.00(
Analyst
Price: /*R >0.,& Ne?t result: P2S14 %1.0<.14
9loo4berg: 560 GR ,ar1et cap: /*R 1>-.4 4
"hili""e.lorrainIha=research.de

3euters: 560G.B/ Enterprise Aalue: /*R %14.& 4

8el.; $4& 40 414 %--> -%

Capacit& e?pansion to help capture future growth N chg# in est#
8his :eek@ P0* announce. to ha=e pulle. forwar. in=est4ents in its CHech
facilit& b& one &ear as hi3h=volu4e "roduction series #already on hand( :ill start at
the location in @D?1>/A@D?1,/. 9onseJuently) the co4"any looks set to invest
additionally G <=104 over @D?14=1>/. 8his should drive the total volu4e of
invest4ents to c. G 404 #eH&A ne:( in @D?14/ #fro4 c. G %44 eH&A old( and to c.
G %,4 #eH&A ne:( in @D?1>/ #fro4 c. G %44 eH&A old( :hile invest4ents for @D?1,/
look set to decrease fro4 c. G %44 #eH&A old( to c. G 2<4 #eH&A ne:(.
8his ste" si3nals that 560 currently eF"eriences stron3 de4and. Interestin3ly) the
ca"acity utilisation at the 9Kech location see4s to e currently very hi3h #c. -0=&0'
ased on 24A<) eH&A( and the facility has already outsourced so4e lo3istical
activities so that the e?pansion of the capacities shoul. B1C allow for a higher
output an. B2C opti4ise the operating .e=elop4ent an. the logistics #y storin3
inventories on site for eFa4"le(.
Chan*e in esti(ates: All in all) :e had already accounted for an increase in volu4es
at the 9Kech location due to the ra4"=u" of ne: series. 6e no: Eust reflect a
so4eho: stron3er ra4"=u" in oth @D?1>/ and @D?1,/ :hich leads us to increase
our 3rou" sales esti4ates y c. G 14 in @D?1>/ and @D?1,/ :hile our /7I8 esti4ates
re4ain lar3ely unaffected. 0ur /5! are sli3htly revised do:n:ards y 4' for the
forecast "eriod on the ack of a hi3her det and interest eF"enses. @ollo:in3 the
successful ra4"=u") :e antici"ate that the 9Kech location should 3enerate so4e
G ,,4 of sales in @D?1,/ :hich co4"ares :ith G 4>4 in @D?1% :hile 4ar3ins are
eF"ected to recover to the 12.0' level y @D?1,/ #already oserved in @D?1%( after a
trou3h of 11.4' in @D?1>/. As :e no: antici"ate stron3er 9A5/L in oth years
@D?1>/ and @D?1,/ so4e of :hich should e "artly financed :ith ank liailities) our
net .ebt esti4ate increases slightl& in both &ears #fro4 G 10<4 to G 11%4 in
@D?14/ and fro4 G 1114 to G 11&4 in @D?1>/(. Ho:ever) we let our PT unchange.
as the invest4ent looks value accretive fro4 @D?1,/ since the 9Kech facility sho:s
the est o"eratin3 "erfor4ance in the 3rou".
All in all) the latest newflow shoul. be seen positi=el& as 560 enefits fro4 a
3ood visiility on the ra4"=u" of ne: series and de4and for li3ht:ei3ht "roducts
continue to increase on the ack of a secular trend to:ards 3reen 4oility. @ollo:in3
the recent share "rice dro" #=1%' since the hi3h of G >-.-0 oserved on 2ay ,)
2014() the share looks attractive) tra.ing at a PE3F12E of Gust 7#8?. 9U># PT is I 58
base. on !C!>F12E#

>JE $1#12 BEU3 4C 2010 2011 2012 201$ 2014E 2012E 2015E

!ales 2,4.2 %%1.1 %>-.1 %<<.4 400.1 42-.& 4>&.-
!ales 3ro:th 2- ' 2> ' - ' > ' , ' < ' < '
/7I8BA %%.1 %>.- 40.2 4%.> 4<., >%.0 ,0.2
/7I8 1,.0 1&.2 21.% 22.% 24.- 2<.& %2.2
1et inco4e ,.> &.0 10.4 1%.1 1>.0 1,.< 20.0
1et det -1.& &2.< &1.& 100.> 112.& 11&.2 10&.1
1et 3earin3 11-.< ' 1%2.% ' &,., ' &-.1 ' 101.0 ' &<.2 ' -0.0 '
1et BetA/7I8BA 2.> 2., 2.% 2.% 2.4 2.% 1.-
/5! "ro for4a 2.>- %.,1 %.,1 4.20 4.-0 >.%4 ,.40
95! 4.4> 4.&, 4.<% 4.2- ,.,4 ,.-2 <.-2
B5! 1.00 1.40 1.,0 1.-0 1.&0 2.00 2.20
Bividend yield 2.0 ' 2.- ' %.2 ' %., ' %.< ' %.& ' 4.% '
Gross "rofit 4ar3in 4-.0 ' 4>.% ' 4,.0 ' 4,.& ' 4<.1 ' 4<.% ' 4<., '
/7I8BA 4ar3in 12.> ' 10.- ' 11.2 ' 11.> ' 11.& ' 12.4 ' 1%.1 '
/7I8 4ar3in ,.1 ' >.- ' >.& ' >.& ' ,.2 ' ,.> ' <.0 '
R09/ -., ' &., ' &.> ' -.& ' &.2 ' &., ' 10., '
/CAsales 0.& 0.- 0.< 0.- 0.- 0.- 0.<
/CA/7I8BA <.1 <.1 ,.> ,.& ,., ,.1 >.2
/CA/7I8 14.< 1%.2 12.% 1%.> 12.< 11., &.<
5/R 1&., 14.1 14.0 12.1 10., &.> <.&
AdEusted @9@ yield ,.- ' <.4 ' -.1 ' <.< ' -.1 ' -., ' 10.0 '
!ource; 9o4"any data) Hauck & Aufhuser 9lose "rice as of; 2>.0,.2014

!ource; 9o4"any data) Hauck & Aufhuser
8ighJlow 22 wee1s: >-.20 A %2.%<
PriceJ9oo1 3atio: 1.4
3elati=e perfor4ance #!BAL(;
% 4onths =-.2 '
, 4onths =
12 4onths 2-., '

Changes in esti4ates
-ales E9+T EP-
old: 400.1 24.- 4.-0
2014
L = = 0.0'
old: 42-.1 2<.- >.%-
2012
L 0.2' 0.2' =0.<'
old: 4>-.1 %2.1 ,.4>
2015
L 0.4' 0.4' =0.<'

6e& share .ata:
1u4er of shares; #in 4 "cs( %.1
Authorised ca"ital; #in G 4( 1.1
7ook value "er share; #in G( %>.-
M tradin3 volu4e; #12 4onths( 2)0>-

,aGor sharehol.ers:
9onsult Invest 4,., '
@ree @loat %,.4 '
Belta .loyd A2 1<.0 '
!"arkassen
@inanK3ru""e
>.& '
Bi4ensional @und
Advisors
0.< '
+79 Asset 2ana3e4ent 0., '

Co4pan& .escription:
.eadin3 develo"er and "roducer of
co4"leF 4etal co4"onents and
susyste4s used in auto4oile
structures) safety co4"onents and
electrical A electronic a""lications.




3hein4etall ")
)er4an& / Engineering



9u& #old; 7uy(
24=June=14

Philippe Lorrain Price target: EU3 52#00 #old; /*R ,2.00(
Analyst
Price: /*R >1.&0 Ne?t result: P2 2014 0<.0-.14
9loo4berg: RH2 GR ,ar1et cap: /*R 1)&,-., 4
"hili""e.lorrainIha=research.de

3euters: RH2G.B/ Enterprise Aalue: /*R %)04-.- 4

8el.; $4& 40 414 %--> -%

3eassuring roa.show fee.bac1 N 'efence 4a1es progress
@ollo:in3 a roasho: in 5aris :ith 9@0 2r 2erch last :eek) we confir4 our 9U>
rating for 3hein4etall an. our PT of I 52 base. on a=erage !C!>F12/15E# All in
all) the 4eetin3s confir4ed our i4"ression that #1( auto4otive is runnin3 :ell) driven
y the healthiness of the 3loal car 4arkets and ti3hter e4ission standards and #2(
the Befence usiness is ein3 successfully turned around.

Auto(oti5e )ene/its /ro( 5olu(e *ro6th and sharpenin* e(ission standards: 8he
auto4otive se34ent currently eF"eriences "rofitale 3ro:th. 8his is "ri4arily due to
the fact that ,echatronics B48% of seg4ent salesC clearl& outgrows the 4ar1et
as it can rely on an increasin3 content "er car driven y shar"enin3 e4ission
standards #/uro CI( and the introduction of ne: "roducts :ith an i4"roved "ricin3.
@urther4ore) the 4ore scalale hard"arts usiness enefits fro4 3ro:in3 car
volu4es all around the 3loe :hile the recent restructurin3 #reallocation of ca"acities
fro4 hi3h=cost countries to lo:=cost re3ions( has a "ositive i4"act on the "rofitaility
of the auto4otive se34ent #/7I8 4ar3in 201,/; <.4' vs. 201%; ,.>'(.

4e/ence7s pro/ita)ility re(ains a//ected )y a 6ea- a((unition (ar-et and less
pro/ita)le pro2ects )ut sho6s /irst si*ns o/ i(pro5e(ent: In Befence) the "rofitaility is
still i4"acted y the 4iF to:ards the syste4s usiness :hich ears lo:er 4ar3ins
than the co4"onents usiness #includin3 a44unition(. As the co4"any does not
eF"ect an i44ediate i4"rove4ent in a44unition de4and and as lar3e "roEects :ith
a "oor "rofitaility such as the 5u4a and 7oFer contracts continue to :ei3h on the
se34ent?s 4ar3ins) 4ana3e4ent reduced its 4id=ter4 tar3ets to a <=&' /7I8 4ar3in
at the e3innin3 of @D?14/ #fro4 old; 10'(. Ho:ever) the operational .e=elop4ent
of the o=erall 'efence seg4ent loo1s set to i4pro=e again :ith re"orted /7I8
4ar3ins increasin3 fro4 0.2' #adEusted; 2.-'( in @D?1% to <.>' #adEusted; <.>'( in
@D?1,/. 8his is due to the fact that the co4"any is :orkin3 on #1( reducin3 its
headcount y c. ,00 e4"loyees #c. ,' of Befence headcount( until @D?1,/ and
4akin3 its cost structure 4ore fleFile as :ell as #2( i4"rovin3 its "roEect
4ana3e4ent su""orted y e4"loyees :ith a stron3 co4"etence in this field :hich
should result in cost overruns fadin3 out 3oin3 for:ard. @urther4ore) Rhein4etall?s
sound Befence order acklo3 should allo: the co4"any to enefit fro4 hi3her
ca"acity utilisation in its different divisions 3oin3 for:ard.

- continued -

>JE $1#12 BEU3 4C 2010 2011 2012 201$ 2014E 2012E 2015E

!ales %)&-&.0 4)4>4.0 4)<04.0 4),1%.0 4)-20.2 >)0-<.0 >)44<.2
!ales 3ro:th 1< ' 12 ' , ' =2 ' 4 ' , ' < '
/7I8BA 4,4.0 >%-.0 4&0.0 %24.0 414.2 4&&.> >-,.&
/7I8 2&<.0 %>4.0 2&,.0 112.0 21&.2 %01.> %-%.&
1et inco4e 1,2.0 21%.0 1<%.0 2&.0 104.& 1>>.0 211.1
1et det <,.0 1%0.0 &-.0 1%-.0 1<1.4 144.% <-.&
1et 3earin3 ,.0 ' &.2 ' <.2 ' 11.0 ' 12.< ' &.& ' 4.& '
1et BetA/7I8BA 0.2 0.2 0.2 0.4 0.4 0.% 0.1
/5! "ro for4a 4.0& >.%- 4.%< 0.<% 2.,> %.&1 >.%%
95! =0.0- %.14 4.-4 0.11 0.,1 %.2> >.1<
B5! 1.>0 1.-0 1.-0 0.40 1.20 1.-0 2.%0
Bividend yield 2.& ' %.> ' %.> ' 0.- ' 2.% ' %.> ' 4.4 '
Gross "rofit 4ar3in >1.0 ' 4&.1 ' 4<.% ' 4>.& ' 4,.0 ' 4>.& ' 4,.4 '
/7I8BA 4ar3in 11., ' 12.1 ' 10.4 ' <.0 ' -., ' &.- ' 10.- '
/7I8 4ar3in <.4 ' <.& ' ,.% ' 2.4 ' 4.> ' >.& ' <.0 '
R09/ &.< ' 10.> ' -.> ' %.% ' ,.> ' -.- ' 10.< '
/CAsales 0.< 0.< 0., 0., 0., 0., 0.>
/CA/7I8BA ,.1 >.4 ,.1 &.% <.4 ,.1 >.1
/CA/7I8 &.> -.2 10.1 2,.- 1%.& 10.1 <.-
5/R 12.< &., 11.& <0.& 1&., 1%.% &.<
AdEusted @9@ yield -.> ' &., ' -., ' %.& ' ,.0 ' <.& ' &.< '
!ource; 9o4"any data) Hauck & Aufhuser 9lose "rice as of; 2%.0,.2014


!ource; 9o4"any data) Hauck & Aufhuser
8ighJlow 22 wee1s: ><.-< A %>.01
PriceJ9oo1 3atio: 1.>
3elati=e perfor4ance #2BAL(;
% 4onths =0., '
, 4onths 1>., '
12 4onths 20.% '

Changes in esti4ates
-ales E9+T EP-
old: 4)-20.2 21&.2 2.,>
2014
L = = =
old: >)0-<.0 %01.> %.&1
2012
L = = =
old: >)44<.2 %-%.& >.%%
2015
L = = =

6e& share .ata:
1u4er of shares; #in 4 "cs( %<.&
Authorised ca"ital; #in G 4( 1-.4
7ook value "er share; #in G( %4.0
M tradin3 volu4e; #12 4onths( 2%0)4,2

,aGor sharehol.ers:
@ree @loat &>.% '
Harris Associates &.- '
7lackrock >.0 '
Rhein4etall 4.- '
.a4"e A2 %.4 '
Bi4ensional @und
Advisors
%.1 '


Co4pan& .escription:
Befence eJui"4ent includin3 land
syste4s) :ea"on) 4unition) si4ulators)
air defence and
Auto4otive co4"onents includin3
"u4"s) valves) "istons) earin3s

3hein4etall ")

1D Hauck & Aufhuser Institutional Research

8heeled &ehicles loo-s set to )ene/it /ro( hi*her capacity utilisation: 5ositively)
Rhein4etall can rely on a sound order acklo3 of G ,.2n at the end of P1?14 :hich
"rovides 3ood visiility for the different divisions) es"ecially for 6heeled Cehicles :hich
has een recently heavily i4"acted y a lo: ca"acity utilisation. Here) a "otential
contract for the @uchs :ith Al3eria should e seen "ositively) in our vie:) as it :ould
increase the ca"acity utilisation of R22C. 6hile headcount has already een reduced
y c. 1-0 e4"loyees #out of ->0() reak=even should e reached in 201>/ as reflected
in our esti4ates.

All in all) the 4arket environ4ent in auto4otive re4ains favourale and Befence should
i4"rove on restructurin3 :hich 3ives us confidence that the co4"any should reach its
4id=ter4 tar3ets. Hence) we reiterate our 9U> rating# PT of I 52 is base. on
a=erage !C!>F12/15E#





N*3," )roup -E
)er4an& / "uto4obile



9u& #old; 7uy(
1&=June=14

Philippe Lorrain Price target: EU3 48#00 #old; /*R 44.00(
Analyst
Price: /*R 40.<- Ne?t result: P2 14; 0,.0-.14
9loo4berg: 10/J GR ,ar1et cap: /*R 1)2&&.% 4
"hili""e.lorrainIha=research.de

3euters: 10/J.B/ Enterprise Aalue: /*R 1)414., 4

8el.; $4& 40 414 %--> -%

3eassuring 3- / Larger acKuisitions coul. be a trigger N chg# PT
@ollo:in3 a roadsho: in 6arsa: :ith 10R2A?s IR tea4 this :eek) we confir4 our
9U> rating for N*3," an. increase our PT fro4 I 44 to I 48 y rollin3 over
valuation to @9@DT1,/. 0ur ne: 58 i4"lies an u"side of 1-' and an /CA/7I8T1>/ of
11.<F adEusted for 55A vs. 11.&F for /lrin3+lin3er currently.

,eetings confir4e. our positi=e =iew on the co4pan& thrivin3 on the healthiness
of the 3loal car 4arkets and the shar"enin3 of e4ission standards around the 3loe
#/uro CI in /uro"e) /5A 1> in the *!) /uro C for lar3e 9hinese cities(.

N*3," loo1s well positione. to continue its growth strateg& :hich can e
su44ed u" in the follo:in3 four layers;
Colu4e 3ro:th #ty"ically) the 3loal car "roduction increases at c. %=>' ".a.(.
0ut"erfor4ance driven y an increasin3 co4"leFity of "roducts A hi3her content
"er vehicle.
Greenfield activities in re3ions :here the co4"any is not active yet.
2&A o""ortunities to ta" ne: 4arkets) a""lications or technolo3ies or to act as a
consolidator; here tar3ets should not dilute the co4"any?s 4ar3in and not e
over"aid #tar3et /CA/7I8A of around >.>=,.0F after syner3ies(.

$9:#A could )uy lar*er tar*ets: :hile ty"ical tar3ets active in 10R2A?s 4arkets are
Juite s4all :ith c. G >=1>4 in annual sales #i.e. in auto4otive() the co4pan& ai4s to
accelerate its .e=elop4ent outsi.e the auto4oti=e sector #currently c. >>' of
3rou" sales( :here there "otential tar3ets are ty"ically lar3er. Given 1or4aSs strong
balance sheet an. 4anage4entOs trac1 recor. to successfull& bu& an. built@
the co4"any should e ale to ste4 acJuisitions :ith annual sales of G >0=1004.

%;714 *uidance loo-s 6ell achie5a)le: 10R2A reiterated its @D?14 3uidance of 4=<'
or3anic sales increase at constant @L) c. G -4 additionally fro4 2&A and an adE.
/7I8A 4ar3in at least on the level of last years #1<' and 4ore(. 6hile :e
understand that the current tradin3 su33est that 10R2A should 4eet the u""er end
of its or3anic sales 3ro:th 3uidance) :e are still a it 4ore o"ti4istic) factorin3 in &'
yoy of or3anic 3ro:th at constant @L #2' yoy currency head:ind(.

At 10? EAJE9+TF12E a.Guste. for PP") 10R2A still trades at a c. 20' discount to
/lrin3+lin3er des"ite a etter cash 3eneration and si4ilar 3ro:th "rofile. 9U># New
PT is I 48 #old; G 44( base. on !C!>F15E#

>JE $1#12 BEU3 4C 2010 2011 2012 201$ 2014E 2012E 2015E

!ales 4&0.4 >-1.4 ,04., ,%>.> ,-&., <42.4 <-<.2
!ales 3ro:th 4& ' 1& ' 4 ' > ' & ' - ' , '
/7I8BA -1.< 100.2 120.- 12&.% 14%.< 1>&.0 1<1.%
/7I8 >,.% <,., &4.4 &&.> 111.< 12<.0 1%&.%
1et inco4e %0.2 %>.< >,., >>., ,%.1 <&.4 -<.-
1et det %%-., 1<,.< 1<4.2 1%-.2 10%.4 >-.1 10.-
1et 3earin3 44&.& ' ,&.1 ' ,0.> ' 4%.% ' 2-.- ' 14.0 ' 2.% '
1et BetA/7I8BA 4.1 1.- 1.4 1.1 0.< 0.4 0.1
/5! "ro for4a nAa 1.1& 1.<- 1.<4 1.&- 2.4& 2.<>
95! nAa 1.-4 2.>& %.22 2.&- %.14 %.%,
B5! 0.00 0.,0 0.,> 0.<0 0.<> 0.&> 1.0>
Bividend yield 0.0 ' 1.> ' 1., ' 1.< ' 1.- ' 2.% ' 2., '
Gross "rofit 4ar3in >>.> ' >>.2 ' >,.< ' >-.0 ' >-.0 ' >-.0 ' >-.0 '
/7I8BA 4ar3in 1,.< ' 1<.2 ' 20.0 ' 20.% ' 20.- ' 21.4 ' 21.- '
/7I8 4ar3in 11.> ' 1%.2 ' 1>., ' 1>.< ' 1,.2 ' 1<.1 ' 1<.< '
R09/ 1%.1 ' 1>.4 ' 1<.1 ' 1>.< ' 1,.- ' 1&.2 ' 1&.4 '
/CAsales 0.< 2., 2.> 2.% 2.1 1.- 1.<
/CA/7I8BA 4.% 14.- 12.% 11.2 &.- -., <.<
/CA/7I8 ,.2 1&.4 1>.< 14., 12.< 10.- &.>
5/R nAa %4.% 2%.0 2%.4 20., 1,.4 14.-
AdEusted @9@ yield 1<.1 ' >.1 ' >., ' ,.2 ' <.2 ' -.0 ' -.< '
!ource; 9o4"any data) Hauck & Aufhuser 9lose "rice as of; 1&.0,.2014

!ource; 9o4"any data) Hauck & Aufhuser
8ighJlow 22 wee1s: 4%.%1 A 2,.21
PriceJ9oo1 3atio: %.,
3elati=e perfor4ance #2BAL(;
% 4onths 2.< '
, 4onths -.< '
12 4onths 2%.- '

Changes in esti4ates
-ales E9+T EP-
old: ,-&., 111.< 1.&-
2014
L = = =
old: <42.4 12<.0 2.4&
2012
L = = =
old: <-<.2 1%&.% 2.<>
2015
L = = =

6e& share .ata:
1u4er of shares; #in 4 "cs( %1.&
Authorised ca"ital; #in G 4( 1>.&
7ook value "er share; #in G( 11.%
M tradin3 volu4e; #12 4onths( &,)0&&

,aGor sharehol.ers:
@ree @loat N 100.0 '
A4eri"rise @inancial 10.0 '
2ondrian I5 >.% '
7lackrock >.1 '
AGI /uro"e >.0 '
B6! %.0 '
3 #ana*e(ent o6ns <.5=

Co4pan& .escription:
.eadin3 "roducer of hi3h=3rade Eoinin3
ele4ents and syste4s #cla4"s)
connectors) fluid conveyance syste4s(
for various industries) es"ecially the
auto4otive sector #>>=,0' of 3rou"
sales(.




6U6" ")
)er4an& / Engineering



9u& #old; 7uy(
04=June=14

Philippe Lorrain Price target: EU3 48#00 #old; /*R 40.00(
Analyst
Price: /*R 41.>- Ne?t result: P2 2014 0,.0-.14
9loo4berg: +*2 GR ,ar1et cap: /*R 1)410.2 4
"hili""e.lorrainIha=research.de

3euters: +*2G.B/ Enterprise Aalue: /*R 1)%,2.2 4

8el.; $4& 40 414 %--> -%

+ntelligent robotics are the future / chg# in est# ; PT

0e increase our esti4ates for 6U6"Fs operational perfor4ance an. our PT
fro4 I 40 to I 48 an. confir4 our 9U> rating# 0ur "ro=for4a /5! esti4ates are
ho:ever sli3htly reduced reflectin3 the dilution resultin3 fro4 the convertile ond.
0ur ne: 58 i4"lies an /CA/7I8?1>/ of 10.,F :hich co4"ares :ith 4ore than 12F for
+*+A?s closest rootics "eers #@anuc) Daska:a /lectric) A77) 1achi=@uEikoshi(.

0ur valuation is rolled over fro4 @9@D?1>/ to @9@D?1,/ due to an increasin3
confidence in the co4"any?s sustainale 3ro:th #1( :ithin the 3eneral industry #c.
%0' of 3rou" sales( earin3 hi3her 4ar3ins due to the lo:er avera3e order siKe and
#2( in the Asian re3ion. 5ositively) oth the 3eneral industry and Asia are
characterised y a lo: "enetration of roots. @urther4ore) hi3her Juality
reJuire4ents for 4anufacturin3 in the 3eneral industry and hi3h :a3e inflation in
eFcess of 10' ".a. in Asia result in an increasin3 de4and for industrial roots.
Additionally) +*+A could enefit fro4 increasin3 "olitical tensions et:een 9hina and
Ja"an) as these could result in Ja"anese co4"etitors losin3 4arket share #currently
c. >0'(.

Low robot penetration in general in.ustr& an. e4erging regions
Source: 'nternational %ederation o/ :o)otics >'%:?
1)>,2
1)1%%
1)0&1
,<<
21%
<1 4%
21&
14<
<,
2< 11 4 1
0
>00
1)000
1)>00
2)000
Ja"an Ger4any *!A *+ 9hina 7raKil India
Auto4otive industry General industry
in roots "er 10)000 e4"loyees

>ester.a&@ the co4pan& hel. its capital 4ar1ets .a& at the A*802A8I9A fair in
2unich :hich :as dedicated to the service rootics area and the Hu4an=Root
9ollaoration #HR9( :hich ears si3nificant 3ro:th o""ortunities. +*+A?s latest
innovation) the Q.7R ii:aR root #Q.eicht7auRooter intelli3ent industrial :ork
assistantR( :hich re"resents a si3nificant advanta3e a3ainst the co4"etition :ho
does not have this kind of "roducts) fla:lessly addresses the latter to"ic. -continued-

>JE $1#12 BEU3 4C 2010 2011 2012 201$ 2014E 2012E 2015E

!ales 1)0<-., 1)4%>., 1)<%&.2 1)<<4.> 1)&>&.- 2)04&.- 2)1>2.-
!ales 3ro:th 20 ' %% ' 21 ' 2 ' 10 ' > ' > '
/7I8BA 4<.1 &-.< 1%-.> 1>-., 1,1.> 1-4.4 20>.2
/7I8 24.- <2., 10&.- 120.4 11&.> 1%&.4 1><.2
1et inco4e =-., 2&.- >>., >-.% >%.& <-.4 -&.<
1et det ,0.% %2., =42.- =14,.> =122.2 =22%.1 =2&>.%
1et 3earin3 %0.< ' 1%.0 ' =14.> ' =%-.- ' =2&.1 ' =4>.< ' =>2.% '
1et BetA/7I8BA 1.% 0.% 0.0 0.0 0.0 0.0 0.0
/5! "ro for4a =0.2- 0.-& 1.,4 1.>% 1.42 2.0, 2.%,
95! =1.>& 0.02 2.1& >.21 2.0, %.-- 2.>%
B5! 0.00 0.00 0.20 0.%0 0.%0 0.40 0.>0
Bividend yield 0.0 ' 0.0 ' 0.> ' 0.< ' 0.< ' 1.0 ' 1.2 '
Gross "rofit 4ar3in 1-.& ' 1&., ' 22.2 ' 24.< ' 2%.0 ' 2%.4 ' 2%., '
/7I8BA 4ar3in 4.4 ' ,.& ' -.0 ' -.& ' -.2 ' &.0 ' &.> '
/7I8 4ar3in 2.% ' >.1 ' ,.% ' ,.- ' ,.1 ' ,.- ' <.% '
R09/ 4.> ' 11.< ' 1<.2 ' 1>.- ' 14.- ' 1<.4 ' 1-.2 '
/CAsales 1.4 1.1 0.- 0.- 0.< 0., 0.,
/CA/7I8BA %1.> 1>.% 10.> -.4 -.4 ,.- >.-
/CA/7I8 >&.- 20.- 1%.2 11.1 11.4 &.1 <.,
5/R =14<.0 4,., 2>.4 2<.1 2&.% 20.2 1<.,
AdEusted @9@ yield 1.4 ' %.1 ' 4.4 ' ,.1 ' >.& ' <.0 ' -.4 '
!ource; 9o4"any data) Hauck & Aufhuser 9lose "rice as of; 0%.0,.2014

!ource; 9o4"any data) Hauck & Aufhuser
8ighJlow 22 wee1s: 42.2- A %1.>0
PriceJ9oo1 3atio: %.-
3elati=e perfor4ance #2BAL(;
% 4onths 14.& '
, 4onths 21.2 '
12 4onths =>.0 '

Changes in esti4ates
-ales E9+T EP-
old: 1)&4%.0 112.< 1.4,
2014
L 0.&' ,.1' =2.-'
old: 2)0%2.> 1%2.1 2.1<
2012
L 0.&' >.>' =4.-'
old: 2)1%>.0 14&.4 2.4&
2015
L 0.-' >.2' =>.%'

6e& share .ata:
1u4er of shares; #in 4 "cs( %%.&
Authorised ca"ital; #in G 4( 44.1
7ook value "er share; #in G( 11.1
M tradin3 volu4e; #12 4onths( 11&)&>&

,aGor sharehol.ers:
@ree @loat -0.2 '
Rudolf GrenKeach 1&.- '
!6098/2 G4H N >.1 '
7lackrock N >.0 '
ALA N >.0 '
0""enhei4 A2 N 4.& '
3 included in /ree /loat

Co4pan& .escription:
.eadin3 su""lier of rootics and "lant A
syste4s solutions) 4ainly for the
auto4otive industry #c. <0' of 3rou"
sales(

6U6" ")

20 Hauck & Aufhuser Institutional Research


2oreover) the Q.7R ii:aR :hich has een tested for 2 years :ith Bai4ler finds several
a""lications includin3 the auto4otive) 3eneral and 4edical industries :hich ode :ell
for the further acce"tance of the "roduct at +*+A?s custo4ers.

,u(an-:o)ot Colla)oration >,:C? is a secular trend >see )elo6?: As to4orro:?s
"roduction lines need to e 4ore efficient and fleFile in order to co"e :ith an increase
in 3loal co4"etition) the HR9 and +*+A?s solutions rin3 an ans:er to these
reJuire4ents. The 83C is the best wa& to co4bine the robotFs pro.ucti=it& with
the hu4anFs fle?ibilit&# 6ith the hel" of the Q.7R ii:aR root :hich :as s"ecially
desi3ned to co4e into safe contact :ith hu4ans) e4"loyees can no: :ork :ith a
fleFile and "recise tool :hich allo:s for ti4e savin3s. Additionally) users are also
4oile as the Q.7R ii:aR can e 4ounted on a rollin3 "latfor4 #for eFa4"le the
QfleF@/..06R( allo:in3 the4 to Q:alkR fro4 one station to another. !i4ilarly) the root
can e used :ith 4oile units :orkin3 inside the vehicle fra4es.



6U6" ") / The future is geare. towar.s 83C B8u4an/3obot CollaborationC
Source: Co(pany data! 4ai(ler! ,auc- . Au/h0user



@A@A7s BSunriseC open so/t6are syste( contri)utes to the easier (anipulation o/
@A@A7s ne6 ro)ots: !ince the Q.7R ii:aR uses the !unrise soft:are :hich is ased on
the JACA lan3ua3e #:hich is the 4ost=used I8 lan3ua3e in the :orld() users can
enefit fro4 the interactions et:een roots) other custo4ers and +*+A :hich allo:
for faster feedacks and u"3rades thanks to the usa3e of cloud co4"utin3 technolo3y.
8his 4akes +*+A?s latest solutions easy to ada"t and hence "erfectly fits into the
current trend to:ards QIndustry 4.0R :hich "ro4otes the co4"uterisation of
4anufacturin3 activities :ithin Qs4art factoriesR as it cou"les rootics and I8.

:ecent inno5ations should help increase @A@A7s /ootprint in China: +*+A?s recent
innovations #Q+R PuantecR fa4ily for 4ediu4 and heavy "ayloads introduced in 2010)
Q+R A3ilusR for s4all "ayloads :ith a hi3h :orkin3 s"eed introduced in 2012)
li3ht:ei3ht root Q.7R ii:aR introduced in 2014( have hel"ed the co4"any to roaden
its "roduct "ortfolio in ter4s of "ayloads and a""lication ran3e and ta" ne: 4arket
o""ortunities. +*+A should enefit fro4 the secular 3ro:th in the local rootics 4arket
as 9hinese industrial co4"anies) follo:in3 the local 0/2s and seduced y the latest
develo"4ent in ter4s of sensors) 4oility and artificial intelli3ence are increasin3 the
auto4ation of their "roduction. 8his should also e su""orted y the 3ain of 4arket
share on the ack of #1( its innovation ca"acity and #2( a "otential escalation of the
"olitical tensions :ith Ja"an :hich could eventually lead to econo4ic sanctions #such
as hi3her i4"ort duties etc.( i4"actin3 their sales of rootics solutions and reducin3
their share of the 9hinese root 4arket of currently c. >0'. All in all) +*+A?s internal
tar3et of doulin3 9hina sales fro4 currently c. G 2>0=%004 #of :hich Rootics; c.
G 1>04( to c. G >00=,004 #of :hich Rootics; c. G %00=%>04( looks fairly realistic.
- continued-

6U6" ")

21 Hauck & Aufhuser Institutional Research

Chan*e in esti(ates: @ollo:in3 the release of "ositively sur"risin3 P1 fi3ures
es"ecially concernin3 the develo"4ent at !yste4s) :e increase our to"=line and
4ar3in esti4ates for the se34ent. 0verall) our 3rou" sales esti4ates are increased y
c. 1' for @D?14/=1,/ :hile our /7I8 esti4ates are revised u":ards y c. ,=<' over
the sa4e ti4e fra4e. 0ur /5! esti4ates are decreased y c. %=>' reflectin3 the
dilution arisin3 fro4 a "otential conversion of +*+A?s convertile ond :hich is no: in
the 4oney #strike; G %,.-0,< vs. current "rice; G 41.>-(. Ho:ever) this also :ould
further i4"rove net cash y G 1%4.24.

All in all) :e see +*+A on track to eco4e a 4aEor "layer of the Industry 4.0 "roEect)
enefittin3 fro4 the secular trends to:ards HR9 and eF"andin3 its activities outside
the auto4otive industry. @urther4ore) the recent coo"eration :ith !ie4ens #announced
in !e"te4er 201%( should hel" +*+A to ta" further 3ro:th o""ortunities in the
inte3ration of roots and 919 #9o4"uterised 1u4erical 9ontrol( 4achine tools.
8radin3 at an EAJE9+TF12E of 7#1? #vs. 12.%F for +*+A?s closest rootics "eers()
valuation looks unde4andin3 es"ecially earin3 in 4ind the &' /7I8 9AGR?1%=1,/.
9U># New PT of I 48 Bol.: I 40C is base. on !C!>F15E#



6U6" ")
!C! &iel.@ &ear en. 'ec# $1 201$ 2014E 2012E 2015E
E9+T'" 128#5 151#2 184#4 202#2
= 2aintenance ca"eF 44.4 4&.0 >1.2 >%.-
= 2inorities 0.0 0.0 0.0 0.0
= taF eF"enses N 2-.1 21.< %1., %,.2
P ".Guste. !ree Cash !low 85#1 70#8 101#2 112#2
"ctual ,ar1et Cap 1@410#2 1@410#2 1@410#2 1@410#2
$ 1et det #cash( NN =14,.> =2>,.4 =%><.% =42&.>
$ 5ension "rovisions <%.4 <4.1 <4.& <>.,
$ 0ff alance sheet financin3 0.0 0.0 0.0 0.0
$ AdEust4ents "re"ay4ents >2.% <>.0 -0.0 -4.0
= @inancial assets =0.2 =0.2 =0.2 =0.2
= Bividend "ay4ent =,.- =10.2 =10.2 =1%.,
& :econciliations -<D.8 -11D.E -<1<.8 -<83.D
P "ctual EAO 1@$82#4 1@272#5 1@17D#4 1@125#2
".Guste. !ree Cash !low &iel. 5#2% D#0% 8#2% 10#2%
-ales 1@DD4#2 1@727#8 2@047#8 2@122#8
Actual /CAsales 0.-F 0.<F 0.,F 0.>F
Hurdle rate <.>' <.>' <.>' <.>'
@9@ 4ar3in 4.&' 4.,' >.0' >.%'
@air /CAsales 0.,F 0.,F 0.<F 0.<F
!air EA 1@148#4 1@211#0 1@$2$#7 1@2$2#5
- & :econciliations -<D.8 -11D.E -<1<.8 -<83.D
!air ,ar1et Cap 1@1D5#2 1@$28#5 1@255#D 1@817#2
1o. of shares #4illion( NNN %%.& %-.0 %-.0 %-.0
!air =alue per share $4#D $2#0 41#2 4D#7
Pre4iu4 B/C J .iscount BC in % /15#5% /2#8% 11#1% 27#0%
-ensiti=it& anal&sis fair =alue
<.>' %4.< %>.0 41.2 4<.&
10.0' 2,.2 2<.0 %2.% %<.-
12.>' 21.1 22.2 2<.0 %1.<
1>.0' 1<.< 1&.0 2%.4 2<.<
Source: Co(pany data! ,auc- . Au/h0user
3 Cash taF rate ad2usted to <5=
33 Ad2usted /or the con5ersion o/ @A@AGs con5erti)le )ond >stri-e: H 3E.80ED?+ 333 Ad2usted /or dilution /ollo6in* the con5ersion o/ the )ond
8ur.le rate



- continued -


















6U6" ")

22 Hauck & Aufhuser Institutional Research

1eer *roup co(parison underpins @A@A7s under 5aluation: A closer look at +*+A?s
closest co4"arale sho:s that the stock trades at a dee" discount of c. 20' on
/CA/7I8?1>/ :hich looks unEustified in the li3ht of +*+A?s still dyna4ic 3ro:th
4o4entu4. 8o co4"are the different co4"anies) :e look at /CA/7I8 rather than 5/R
as the latter is distorted y the +*+A?s hi3h 5&. taF rate of %-' :hich co4"ares :ith
a cash taF rate of only c. 2>'.



6U6" ") FX Price ,C BI4C
E9+T
C")3 1$/15E
E9+T 4argin
14E
-ales
C")3 1$/15E
A77 .8B 1 >AS4? <1.1 48+D95 4.-' 11.0' =1.&'
@A1*9 .8B. >I1;? 1DE85.0 4+<50 10.&' %-.&' -.>'
DA!+A6A /./98RI9 90R5. >I1;? 1<D4.0 3<E 12.-' <.>' 4.2'
1A9HI=@*JI+0!HI 90R5. >I1;? ED4.0 1D0 %2.1' -.,' -.&'
6U6" ") BEU3C 41#5 1410#2 7#$% 5#1% 5#D%


6U6" ")
EAJ-ales
14E B?C
EAJ-ales
12E B?C
EAJ-ales
15E B?C
EAJE9+T'"
14E B?C
EAJE9+T'"
12E B?C
EAJE9+T'"
15E B?C
EAJE9+T
14E B?C
EAJE9+T
12E B?C
EAJE9+T
15E B?C
PE3 14E B?C PE3 12E B?C PE3 15E B?C
A77 .8B 1 1.4 1.4 1.% 10.0 -.& -.2 12.- 11.1 10.% 1<.< 1>.1 1%.>
@A1*9 .8B. ,.% ,.% >.& 1>.0 14.% 1%.< 1,.% 1>.> 14.& 2%.2 2%.1 21.<
DA!+A6A /./98RI9 90R5. 1.0 1.0 0.& &.4 -.> -.2 1%.2 12.0 11.0 1<.1 1>.2 14.2
1A9HI=@*JI+0!HI 90R5. 1.0 1.0 1.0 <.> ,., ,.2 12.1 10.& &.> 1>.> 1%.< 12.1
6U6" ") 0#D 0#D 0#5 8#$ D#$ 5#2 11#2 7#5 8#2 27#$ 20#2 1D#5
"=erage Bpeer groupC 2#4 2#4 2#$ 10#2 7#5 7#1 1$#5 12#4 11#4 18#4 15#8 12#4
Pre4iu4J.iscount/ in B%C /D2% /D$% /D$% /21% /24% /28% /18% /22% /22% 27% 20% 12%
Source: ,.A esti(ates+ Capital'J+ co(pany /ilin*s
+4plie. !A
EAJE9+T'"
14E B?C
EAJE9+T'"
12E B?C
EAJE9+T'"
15E B?C
EAJE9+T
14E B?C
EAJE9+T
12E B?C
EAJE9+T
15E B?C
PE3 14E B?C PE3 12E B?C PE3 15E B?C
@air /C 1,,%.1 1>4-.2 1,<2.% 1,2<.1 1<2%., 1<&2.,
1et det =14,.> =14,.> =14,.> =14,.> =14,.> =14,.>
5ensions 0.0 0.0 0.0 0.0 0.0 0.0
2arket 9a" 1-0&., 1,&4.< 1-1-.- 1<<%., 1-<0.1 1&%&.1
1osh %%.& %%.& %%.& %%.& %%.& %%.&
i4plie. !A 2$#4 20#0 2$#5 22#$ 22#1 2D#2 25#1 $4#5 $5#$
Source: ,.A esti(ates



-"!/8*LL"N' -"
)er4an& / "uto4obile



9u& #old; 7uy(
2<=2ay=14

Philippe Lorrain Price target: EU3 15#00 #old; /*R 1,.00(
Analyst
Price: /*R 12.00 Ne?t result: P2 2014 0<.0-.14
9loo4berg: !@P GR ,ar1et cap: /*R >44.% 4
"hili""e.lorrainIha=research.de

3euters: [email protected]/ Enterprise Aalue: /*R ,&0.4 4

8el.; $4& 40 414 %--> -%

,ore confi.ence on Trailer -&ste4s / chg# in est#

@ollo:in3 the release of sound P1 results on 2ay 1> "ositively su""orted y the
resilience of the after4arket usiness and o"erational i4"rove4ents in the trailer
usiness) :e reiterate our 7*D reco44endation and our 58 of G 1,.

6hile 8railer !yste4s #><' of sales( enefitted fro4 the hi3h de4and fro4 /uro"ean
fleet custo4ers for ne: trailers in P1?14 #after they concentrated on ne: trucks in
P4?1%( resultin3 in a sound ca"acity utilisation and adE. /7I8 4ar3in) 4anage4ent
recentl& state. that growth in this seg4ent shoul. so4ewhat .ecelerate in M2/
M$F14 still su""orted y the "ositive trends oserved in the industry as orders see4
to have een "ushed fro4 P4?1% into P1?14. 2oreover) the 9UFs profitabilit&
shoul. re4ain soli. as #1( !A@=H0..A1B has started to i4"le4ent restructurin3
4easures #e.3. undlin3 of o"erations( :hich should have contriuted c. 1A% of the
7*?s 4ar3in i4"rove4ent in P1?14 and #2( the additional "ersonnel hired y the
co4"any in P4?1% consisted of te4"orary :orkers.

Bes"ite the 3ro:th deceleration in 8railer !yste4s) we e?pect the o=erall
co4pan&Fs top/ an. botto4/line .e=elop4ent to re4ain .&na4ic) driven y an
increasin3 4o4entu4 in;

5o:ered Cehicle !yste4s #1<' of sales( driven y the healthiness of the *! truck
4arket #class - net orders u" 2-' yoy after 4 4onths( and 9hina ased 9or"co
#acJuired in 201%( e3innin3 to 3enerate si3nificant sales #after 9hinese 1e: Dear
:ei3hed on sales and "rofitaility in P1?14()
After4arket #2,' of sales( :ith the continuous eF"ansion in ne: re3ions #2iddle=
/ast) AsiaAA!/A1( and ne: "roducts #e.3. the QA2R rand !auer Puality 5arts(.

Chan*e in esti(ates: As :e eco4e 4ore confident on the o"eratin3 develo"4ent of
the 8railer !yste4s 7* :hich should enefit fro4 #1( hi3her volu4es) #2( the
o"ti4isation 4easures currently i4"le4ented and #%( the introduction of ne:
"roducts) :e sli3htly increase our /7I8 esti4ates for @D?1>/ and @D?1,/ #$2' and
$%' res"ectively(.

8radin3 at Eust 11? PE3F12E a.Guste. for PP" #vs. 1%F for our auto4otive
covera3e() the stock is "riced eF=3ro:th :hich looks not Eustified es"ecially
considerin3 the hi3h "ent=u" de4and for ne: trailers in /uro"e follo:in3 years of
underinvest4ent. 9U># PT of I 15 is base. on !C!>F12E#

>JE $1#12 BEU3 4C 2010 2011 2012 201$ 2014E 2012E 2015E

!ales ,%1.1 -%1.% ->&., -><.0 &%%.< &-4.> 1)0%%.-
!ales 3ro:th >0 ' %2 ' % ' 0 ' & ' > ' > '
/7I8BA 4&.0 <0.4 ,&.1 ,<.1 <&.< &>.- 10,.-
/7I8 %1.4 >1.% 4,.- 4&.% ,0.< <>.- ->.-
1et inco4e =-.% 2,., <.4 24.4 %%.> 4>., >%.-
1et det %02.% 1>&.- 141.& 12>.2 11&.& &,.- <0.&
1et 3earin3 20&<.- ' &1.0 ' <1.< ' >,.4 ' 4&.% ' %>., ' 2%.4 '
1et BetA/7I8BA ,.2 2.% 2.1 1.& 1.> 1.0 0.<
/5! "ro for4a =0.,> 0.,& 0.21 0.>4 0.<4 1.01 1.1&
95! 0.-0 0.>0 0.<% 0.&% 1.00 1.24 1.40
B5! 0.00 0.00 0.00 0.2< 0.%< 0.>0 0.>&
Bividend yield 0.0 ' 0.0 ' 0.0 ' 2.% ' %.1 ' 4.2 ' 4.& '
Gross "rofit 4ar3in 1-.> ' 1<.& ' 1-.2 ' 1-.2 ' 1-.- ' 1&.& ' 20.4 '
/7I8BA 4ar3in <.- ' -.> ' -.0 ' <.- ' -.> ' &.< ' 10.% '
/7I8 4ar3in >.0 ' ,.2 ' >.4 ' >.< ' ,.> ' <.< ' -.% '
R09/ -., ' 1%.> ' 11.> ' 11.& ' 14.> ' 1<.< ' 1&.> '
/CAsales 0.& 0.- 0.- 0.- 0.< 0.< 0.,
/CA/7I8BA 11.- &.- 10.> 10.4 -.< <.0 ,.0
/CA/7I8 1-.4 1%.4 1>.> 14.1 11.4 -.- <.>
5/R =1-.4 1<.> >,.& 22.% 1,.2 11.& 10.1
AdEusted @9@ yield %.& ' <.% ' >.> ' <.0 ' <.- ' &.< ' 11.% '
!ource; 9o4"any data) Hauck & Aufhuser 9lose "rice as of; 2,.0>.2014

!ource; 9o4"any data) Hauck & Aufhuser
8ighJlow 22 wee1s: 12.22 A ,.,2
PriceJ9oo1 3atio: 2.2
3elati=e perfor4ance #!BAL(;
% 4onths >., '
, 4onths 11.2 '
12 4onths %-.> '

Changes in esti4ates
-ales E9+T EP-
old: &%%.4 ,0.< 0.<4
2014
L = = =
old: &-4.2 <4.% 0.&-
2012
L = 2.0' 2.>'
old: 1)0%%.4 -%.< 1.1>
2015
L = 2.>' %.4'

6e& share .ata:
1u4er of shares; #in 4 "cs( 4>.4
Authorised ca"ital; #in G 4( 0.2
7ook value "er share; #in G( >.4
M tradin3 volu4e; #12 4onths( 2&<)0>>

,aGor sharehol.ers:
@ree @loatN 100.0 '
@idelity >.1 '
Henderson 4.& '
Banske 7ank 4.- '
Bi4ensional @und
Advisors
2.> '
2ain@irst 2.> '
3 #ana*e(ent o6ns 3.9=

Co4pan& .escription:
!u""lier of syste4s and co4"onents for
the trailer) truck) us and recreational
vehicle industries




9ertran.t ")
)er4an& / "uto4obile



8ol. #old; Hold(
1>=2ay=14

Philippe Lorrain Price target: EU3 111#00 #old; /*R 10%.00(
Analyst
Price: /*R 110.0> Ne?t result: P% 201%=14 1%.0-.14
9loo4berg: 7B8 GR ,ar1et cap: /*R 1)10-.1 4
"hili""e.lorrainIha=research.de

3euters: 7B8G.B/ Enterprise Aalue: /*R 1)0<&.2 4

8el.; $4& 40 414 %--> -%

-oun. M2 N )rowth .ri=ers are well intact N chg# in est# ; PT

Desterday) 7ertrandt released P2S1%A14 fi3ures :hich :ere roadly in=line :ith our
and consensus esti4ates. A 92B :as held on the sa4e day.

M2O1$J14 sales were up 1$% &o& to I 2154 #eH&A; G 21%4) e9ons; G 2114( driven
y #1( a sli3htly hi3her nu4er of :orkin3 days #,2.4 vs. ,2.1 in P2S1%A1%() #2( an
increasin3 nu4er of e4"loyees needed to handle the increasin3 usiness volu4e
#11)1&> at the end of P2S1%A14 vs. 10)2,0 at the end of P2S12A1%( and #%( a hi3her
"roductivity of the :orkforce as P2S12A1% :as i4"acted y a hi3h rate of sick
e4"loyees #:hich resulted in a sales 4iss of G %4 in P2S12A1%(.

M2O1$J14 E9+T was up b& 1$% &o& to I 224 #eH&A & e9ons; G 224( translatin3
into a stale 4ar3in of 10.2' 3iven that the usiness 4odel is not very scalale. 8he
forei3n research 3rant :hich is ty"ical for P2 a4ounted to G 1.14 #P2S12A1%; G 1.>4(.
AdEustin3 for the decrease in this ite4) the /7I8 4ar3in :ould have een sli3htly
hi3her than our esti4ate of 10.%') at 10.4') increasin3 y 20"s yoy on the ack of
the e4"loyeesS hi3her efficiency.

M2O1$J14 net inco4e was up 10% &o& to I 12#84 #eH&A; G 1>.>4) e9ons; G 1,4(
reflectin3 #1( a hi3her taF rate and #2( the lack of financin3 levera3e of the co4"any.

Koin* /or6ard: 8he 92B confir4ed that all 3ro:th drivers look :ell intact; increase of
R&B s"endin3 and R&B outsourcin3) increase in the nu4er of car 4odels and
variants #7ertrandt calculates :ith an increase of ne: car 4odels :ithout
"redecessors fro4 2&% in @D?14 to %%< in @D?1-/ :hich re"resents a %.,' 9AGR()
secular trends to:ards 3reen 4oility) 4ore safety and 4ore co4fort) connected
cars. @urther4ore) the order "i"eline still looks :ell=filled as 7ertrandt still has around
1)000 vacancies. As usual) the co4"any 3ave no "recise 3uidance.

Chan*e in esti(ates: As :e eco4e 4ore o"ti4istic on 7ertrandt?s 3ro:th "ros"ects
:e increase our to"=line esti4ates for @D?1>/ and @D?1,/ y 2' and 4'
res"ectively. Ho:ever) due to the heavy 9A5/L "ro3ra44e currently under3one y
7ertrandt #2014=1,/() :e increase our 9A5/L #fro4 c. G 404 to c. G ,04( and B&A
eF"ectations for @D?14A1>/ and @D?1>A1,/ :hich lead to a decrease of 1' in our
@D?14A1>/ /7I8 esti4ate and to an increase of only 1.>' to our @D?1>A1,/ /7I8
esti4ate.

- continued -

>JE $0#7 BEU3 4C 2007J10 2010J11 2011J12 2012J1$ 201$J14E 2014J12E 2012J15E

!ales 42-.- ><,.2 <0&.% <-2.4 -,0.- &4>.> 1)0%>.&
!ales 3ro:th 12 ' %4 ' 2% ' 10 ' 10 ' 10 ' 10 '
/7I8BA >4.4 <1.< &0.% 100.- 112.4 12-.% 144.>
/7I8 44.0 ,0.4 <>.1 -1.2 &0.1 &<.< 10-.2
1et inco4e %1.% 42.0 >1.< ><.2 ,2.> ,<.< <>.0
1et det =4<.- =%,.2 =21.4 =4<.0 =%1.- =%0., =>%.0
1et 3earin3 =%>.2 ' =21.- ' =10., ' =1&., ' =11.4 ' =&.4 ' =14.% '
1et BetA/7I8BA 0.0 0.0 0.0 0.0 0.0 0.0 0.0
/5! "ro for4a %.11 4.14 >.10 >.,4 ,.1, ,.,- <.40
95! 1.4> 1.24 2.%< >.-< 4.>< >.0% >.,2
B5! 1.20 1.<0 2.00 2.20 2.40 2.<0 2.&0
Bividend yield 1.1 ' 1.> ' 1.- ' 2.0 ' 2.2 ' 2.> ' 2., '
Gross "rofit 4ar3in &1.< ' &0.4 ' &0.< ' &2.0 ' &2.> ' &2.> ' &2.> '
/7I8BA 4ar3in 12.< ' 12.4 ' 12.< ' 12.& ' 1%.1 ' 1%., ' 14.0 '
/7I8 4ar3in 10.% ' 10.> ' 10., ' 10.4 ' 10.> ' 10.% ' 10.4 '
R09/ 2,.2 ' 2&.& ' %0.< ' 2<.- ' 2,.< ' 2>., ' 2>.1 '
/CAsales 2.> 1.& 1.> 1.4 1.% 1.1 1.0
/CA/7I8BA 1&.> 1>.0 12.0 10., &., -.4 <.%
/CA/7I8 24.1 1<.- 14.> 1%.1 12.0 11.1 &.-
5/R %>.% 2,., 21., 1&.> 1<.& 1,.> 14.&
AdEusted @9@ yield %.0 ' 4.0 ' >.0 ' >., ' ,.1 ' ,., ' <.> '
!ource; 9o4"any data) Hauck & Aufhuser 9lose "rice as of; 14.0>.2014

!ource; 9o4"any data) Hauck & Aufhuser
8ighJlow 22 wee1s: 11-.00 A <,.<>
PriceJ9oo1 3atio: 4.0
3elati=e perfor4ance #!BAL(;
% 4onths =4.% '
, 4onths 2.< '
12 4onths =1.0 '

Changes in esti4ates
-ales E9+T EP-
old: ->-.- &0.> ,.1-
2014
L 0.2' =0.4' =0.4'
old: &2<.< &-.> ,.<%
2012
L 1.&' =0.-' =0.-'
old: &&-.% 10,., <.2-
2015
L %.-' 1.,' 1.>'

6e& share .ata:
1u4er of shares; #in 4 "cs( 10.1
Authorised ca"ital; #in G 4( 4.0
7ook value "er share; #in G( 2<.,
M tradin3 volu4e; #12 4onths( 1%)41-

,aGor sharehol.ers:
@ree float 4,.2 '
5orsche 2>.0 '
7oysen 14.& '
2ana3e4entA
/4"loyees
1%.& '
2ain@irst N %.- '
6illia4 7lair & 9o N %.% '
3 included in /ree /loat

Co4pan& .escription:
.eadin3 inde"endent /uro"ean
en3ineerin3 services "rovider) 4ainly to
the auto4otive #&0' of sales( and
aviation #>' of sales( industries.

9ertran.t ")

22 Hauck & Aufhuser Institutional Research


8radin3 at 15#2? PE3F14J12E B11? EAJE9+TF14J12EC) the stock looks fairly "riced) in
our vie: es"ecially earin3 in 4ind the li4ited o"eratin3 and financin3 levera3e. As the
visiility on to"= and otto4=line is Juite hi3h :e 3ive 7ertrandt 4ore credit for 3ro:th
and roll over our valuation to @D?1>A1,/) derivin3 a new PT of I 111# As the u"side is
still li4ited #c. 1'() the stoc1 re4ains a 8*L'#



9ertran.t M2O1$J14 M2O1$J14 81O1$J14 81O1$J14
@ey /i*ures >A: (? est# cons# est cons
-ales 215#0 21$#1 211#0 171#2 1%.0' 178#0 &.1' 414#0 411#1 407#0 $D2#4 10.%'
*perating profit 22#0 21#7 22#4 17#5 12.,' 17#0 1,.0' 41#1 40#7 41#4 $D#1 10.,'
(ar*in 10.<= 10.3= 10.E= 10.<= 0.0 pp 9.E= 0.E pp 9.9= 4.E= 10.1= 9.9= 0.0 pp
Net inco4e 12#8 12#2 15#0 14#4 &.,' 1$#0 21.,' 28#D 28#4 27#0 25#2 -.%'
(ar*in D.3= D.3= D.E= D.5= -0.< pp E.5= 0.8 pp E.9= E.9= D.1= D.1= -0.1 pp
EP- 1#25 1#24 1#27 1#4$ &.1' 1#27 21.2' 2#82 2#8$ 2#88 2#54 -.2'
Source: Co(pany data! ,auc- . Au/h0user! 'nLuiry %inancial
&o& 81O12J1$ M2O1$J14 M2O12J1$ &o& M1O1$J14 KoK 81O1$J14



Elring6linger ")
)er4an& / "uto4obile



8ol. #old; Hold(
0-=2ay=14

Philippe Lorrain Price target: EU3 $0#00 #old; /*R %0.00(
Analyst
Price: /*R 2-.%% Ne?t result: P2 2014 0<.0-.14
9loo4berg: UI.2 GR ,ar1et cap: /*R 1)<&>.0 4
"hili""e.lorrainIha=research.de

3euters: UI.Gn.B/ Enterprise Aalue: /*R 2)1&-.- 4

8el.; $4& 40 414 %--> -%

-oli. start into the &ear

8oday) /lrin3+lin3er re"orted its P1?14 fi3ures :hich eat our and consensus
esti4ates.

M1F14 sales ca4e in at I $244 #eH&A; G %1%4) e9ons; G %0-4() up 12#$% &o& on
the ack of hi3her car sales and "roduction in /uro"e) on3oin3 solid de4and in
1A@8A and Asia and the introduction of ne: "roducts. @i3ures for P1?1% :ere
restated as 2arusan #:hich is no: fully o:ned y /lrin3+lin3er( :as accounted for
on a "ro rata asis #>0'( "reviously. Hence) the or3anic 3ro:th #at constant @L(
stood at a solid 14' yoy :hile the acJuisition of the re4ainin3 >0' of 2arusan
rou3ht G 11.&4 #on a 100' asis and G ,4 on a >0' asis( and @L head:inds of c.
G -.,4 :ere oserved.

M1F14 E9+T was up .isproportionatel& b& 28% &o& to I 424 #eH&A; G 404)
e9ons; G %&4( still affected y losses in the e=4oility division and 55A a4ortisation
of c. G 0.&4. 8he sound increase in /7I8 :as driven y hi3her ca"acity utilisation) as
:ell as hi3her earnin3s contriutions fro4 Hu3 and the for4er @reudener3?s flat
3asket usiness #@rance no: "rofitale ut still elo: 3rou" avera3e(. 8his resulted
in a 1.%"" /7I8 4ar3in i4"rove4ent to 1%'.

M1F14 net inco4e increase. un.er proportionatel& b& 18% &o& to G 2-4 #eH&A;
G 2<4) e9ons; G 2>4( affected y the current stren3th of the /*R vs. e4er3in3
currencies #e.3. 7R.) I1R(. 8his resulted in a decrease in net financial result of c. G
2.>4.

9utloo-: 8he co4"any confir4ed its outlook) tar3etin3 or3anic sales 3ro:th of >=<'
yoy as :ell as c. G 2>4 of additional contriution of the re4ainin3 >0' of 2arusan
:hile the /7I8 #:Ao @L effects( is eF"ected to e in the ran3e of G 1,0=1,>4. 8his
looks :ell in=reach #1( after the solid start into the year and #2( as the restructurin3 of
the acJuired entities see4s to have orn fruits.

8radin3 at an EAJE9+TF12E of 11? adEusted for 55A the stock looks fairly "riced) in
our vie:. 8*L'# PT of I $0 is base. on !C!>F12E#

- continued -

>JE $1#12 BEU3 4C 2010 2011 2012 201$ 2014E 2012E 2015E

!ales <&>.< 1)0%2.- 1)12<.2 1)1<>.2 1)2<,., 1)%<-.- 1)4-&.1
!ales 3ro:th %< ' %0 ' & ' 4 ' & ' - ' - '
/7I8BA 1--.& 24>.> 21>.2 2%,.4 2>4.2 2-,.4 %1<.&
/7I8 10,.< 14-.< 1%>.- 1,0.4 1,<.2 1&4.4 221.&
1et inco4e ,>., &4.- ->.< 10>.4 10>.& 12,.4 14,.4
1et det &-.0 222.% 2,0.4 2&>.% %0-.< 2<>.0 220.%
1et 3earin3 1&.< ' %-.2 ' 42., ' 4%., ' 41.1 ' %2., ' 2%.2 '
1et BetA/7I8BA 0.> 0.& 1.2 1.2 1.2 1.0 0.<
/5! "ro for4a 1.11 1.>0 1.%> 1.,, 1.,< 1.&& 2.%1
95! 0.-, 0.0% 0.-& 1.0< 1.%% 1.&- 2.2&
B5! 0.%> 0.>- 0.4> 0.>0 0.>% 0.,% 0.<%
Bividend yield 1.2 ' 2.0 ' 1., ' 1.- ' 1.& ' 2.2 ' 2., '
Gross "rofit 4ar3in %0.1 ' 2<.& ' 2<.< ' 2-.0 ' 2-.% ' 2&.0 ' 2&.4 '
/7I8BA 4ar3in 2%.< ' 2%.- ' 1&.1 ' 20.1 ' 1&.& ' 20.- ' 21.% '
/7I8 4ar3in 1%.4 ' 14.4 ' 12.0 ' 1%., ' 1%.1 ' 14.1 ' 14.& '
R09/ 14.& ' 1,.% ' 12.- ' 14.0 ' 1%.> ' 14.- ' 1,.1 '
/CAsales 2.> 2.0 1.& 1.& 1.< 1., 1.4
/CA/7I8BA 10.4 -.> 10.0 &.2 -., <., ,.<
/CA/7I8 1-.4 14.1 1>.& 1%., 1%.1 11.2 &.>
5/R 2>.> 1-.& 20.& 1<.0 1<.0 14.2 12.%
AdEusted @9@ yield >.2 ' ,.> ' >.- ' ,., ' ,.- ' <.- ' -.& '
!ource; 9o4"any data) Hauck & Aufhuser 9lose "rice as of; 0<.0>.2014


!ource; 9o4"any data) Hauck & Aufhuser
8ighJlow 22 wee1s: %>.14 A 24.20
PriceJ9oo1 3atio: 2.4
3elati=e perfor4ance #2BAL(;
% 4onths ,.> '
, 4onths =&.1 '
12 4onths =>., '

Changes in esti4ates
-ales E9+T EP-
old: 1)2<,., 1,<.2 1.,<
2014
L = = =
old: 1)%<-.- 1&4.4 1.&&
2012
L = = =
old: 1)4-&.1 221.& 2.%1
2015
L = = =

6e& share .ata:
1u4er of shares; #in 4 "cs( ,%.4
Authorised ca"ital; #in G 4( 2%.0
7ook value "er share; #in G( 11.&
M tradin3 volu4e; #12 4onths( 14%)000

,aGor sharehol.ers:
.echler fa4ily and
estate of +laus .echler
>2.0 '
@ree @loat 4-.0 '
Alken %.1 '
2arketfield A2 2.> '
Banske 7ank 1.< '
Beutsche Asset 1.4 '

Co4pan& .escription:
!u""lier of shieldin3 technolo3y) "lastic
housin3 4odules) cylinder=head and
s"ecialty 3askets) attery co4"onents
for en3ines) 3earoFes and eFhaust
syste4s.

Elring6linger ")

2D Hauck & Aufhuser Institutional Research

M1 14 M1 14
est# cons#
-ales $24#0 $12#5 $0D#8 281#0 1>.%' 271#2 11.%'
*perating profit BP E9+TC 42#1 40#0 $8#D $2#8 2-.4' 21#8 =1-.-'
(ar*in 13.0= 1<.8= 1<.E= 11.D= 1.3pp 1D.8= -4.8pp
Net inco4e 2D#7 25#5 22#1 2$#8 1<.,' $$#0 =1>.2'
(ar*in 8.E= 8.5= 8.<= 8.5= 0.<pp 11.3= -<.Dpp
EP- 0#44 0#42 0#40 0#$D 1<.,' 0#22 =1>.2'
Source: Co(pany data! ,auc- . Au/h0user! "loo()er*
M4 1$ KoK
Elring6linger / 1e& figures
BI 4C
M1 14 M1 1$ &o&
June 2014


28 Hauck & Aufhuser Institutional Research

'isclosures regar.ing research publications of 8auc1 ; "ufh<user +nstitutional 3esearch
") pursuant to section $4b of the )er4an -ecurities Tra.ing "ct B0p8)C an. the
regulations of the )er4an !inancial "nal&sis *r.inance B!in"nAC



5ursuant to section %4 of the Ger4an !ecurities 8radin3 Act #6"HG( and section > of the @inancial Analysis 0rdinance #@inAnC( a research
re"ort has to "oint out "ossile conflicts of interest in connection :ith the analysed co4"any. A conflict of interest is "resu4ed to eFist in
"articular if Hauck & Aufhuser Institutional Research AG

#1( or its affiliate#s( :as) :ithin the "ast t:elve 4onths) a 4e4er in a consortiu4 that acJuired the financial instru4ents of the analysed
co4"any)
#2( has entered into an a3ree4ent on the "roduction of the research re"ort :ith the analysed co4"any)
#%( or its affiliate#s( has) :ithin the "ast t:elve 4onths) een "arty to an a3ree4ent on the "rovision of invest4ent ankin3 services :ith the
analysed co4"any or have received services or a "ro4ise of services under the ter4 of such an a3ree4ent)
#4( or its affiliate#s( holds >' or 4ore of the share ca"ital of the analysed co4"any)
#>( or its affiliate#s( re3ularly holds a tradin3 "osition in shares of the analysed co4"any or derivatives thereof)
#,( or its affiliate#s( 4ana3es the financial instru4ents of the analysed co4"any on the asis of an eFistin3 contractual relationshi")
#<( or the analyst has any other si3nificant financial interests relatin3 to the analysed co4"any such as) for eFa4"le) eFercisin3 4andates in
the interest of the analysed co4"any.
#-( 8he research re"ort has een 4ade availale to the co4"any "rior to its "ulication. 8hereafter) only factual chan3es have een 4ade to
the re"ort.
Conflicts of interest that e?iste. at the ti4e when this research report was publishe.;
Co4pan& 'isclosure
BHrr AG
./01I AG
2! Industrie AG
5ro3ress=6erk 0erkirch AG
Rhein4etall AG
10R2A Grou" !/
+*+A AG
!A@=H0..A1B !A
7ertrandt AG
/lrin3+lin3er AG
>
>
>
>
>
>
>
>
>
>

8istorical target price an. rating in the last 12 4onths

June 2014


27 Hauck & Aufhuser Institutional Research




8auc1 ; "ufh<user .istribution of ratings an. in proportion to in=est4ent ban1ing ser=ices
9u& ,2.0< ' ->.<1 '
-ell 1%.<& ' 0.00 '
8ol. 24.14 ' 14.2& '

June 2014


$0 Hauck & Aufhuser Institutional Research

1# )eneral +nfor4ationJLiabilities
8his research re"ort has een "roduced for the infor4ation "ur"oses of institutional investors only) and is not in any :ay a reco44endation) offer
or solicitation to uy or sell the financial instru4ents 4entioned herein. 8he docu4ent is confidential and is 4ade availale y Hauck & Aufhuser
Institutional Research AG #the V9o4"anyV() a 4aEority=o:ned susidiary of Hauck & Aufhuser 5rivatankiers +GaA) eFclusively to selected
reci"ients Win B/) G7) @R) 9H) *!) !candinavia) and 7eneluF or) in individual cases) also in other countriesX. A distriution to "rivate investors in
the sense of the Ger4an !ecurities 8radin3 Act #6"HG( is eFcluded. It is not allo:ed to "ass the research re"ort on to "ersons other than the
intended reci"ient :ithout the "er4ission of the 9o4"any. Re"roduction of this docu4ent) in :hole or in "art) is not "er4itted :ithout "rior
"er4ission of the 9o4"any. All ri3hts reserved.
*nder no circu4stances shall the 9o4"any) any of its e4"loyees involved in the "re"aration) and Hauck & Aufhuser 5rivatankiers +GaA have
any liaility for "ossile errors or inco4"leteness of the infor4ation included in this research re"ort Y neither in relation to indirect or direct nor
conseJuential da4a3es. .iaility for da4a3es arisin3 either directly or as a conseJuence of the use of infor4ation) o"inions and esti4ates is also
eFcluded.
5ast "erfor4ance of a financial instru4ent is not necessarily indicative of future "erfor4ance.

2# 3esponsibilities
8his research re"ort :as "re"ared y the research analyst na4ed on the front "a3e #the V5roducerV(. 8he 5roducer is solely res"onsile for the
vie:s and esti4ates eF"ressed in this re"ort. 8he re"ort has een "re"ared inde"endently) i.e. the content of :hich :as not inde"endently
eFa4ined y the 9o4"any or Hauck & Aufhuser 5rivatankiers +GaA.
8he esti4ates and vie:s in this financial re"ort 4ay deviate fro4 those of Hauck & Aufhuser 5rivatankiers +GaA.
8he content of the research re"ort :as not influenced y the issuer of the analysed financial instru4ent at any ti4e. It 4ay e "ossile that "arts
of the research re"ort :ere handed out to the issuer for infor4ation "ur"oses "rior to the "ulication :ithout any 4aEor a4end4ents ein3 4ade
thereafter.

$# *rganisational 3eKuire4ents
8he 9o4"any and Hauck & Aufhuser 5rivatankiers +GaA took internal or3anisational and re3ulative "recautions to avoid or accordin3ly
disclose "ossile conflicts of interest in connection :ith the "re"aration and distriution of the research re"ort. All 4e4ers of the 9o4"any
involved in the "re"aration of the research re"ort are suEect to internal co4"liance re3ulations.
1o "art of the 5roducer?s co4"ensation is directly or indirectly related to the "re"aration of this financial analysis.

4# +nfor4ation Concerning the ,etho.s of AaluationJUp.ate
8he deter4ination of the fair value "er share) i.e. the "rice tar3et) and the resultant reco44endation is done on the asis of the adEusted free cash
flo: #adE. @9@( 4ethod and on the asis of the discounted cash flo: Y B9@ 4odel. @urther4ore) a "eer 3rou" co4"arison is 4ade.

8he adE. @9@ 4ethod is ased on the assu4"tion that investors "urchase assets only at a "rice #enter"rise value( at :hich the o"eratin3 cash flo:
return after taFes on this invest4ent eFceeds their o""ortunity costs in the for4 of a hurdle rate of <.>'. 8he o"eratin3 cash flo: is calculated as
/7I8BA less 4aintenance ca"eF and taFes.

6ithin the fra4e:ork of the B9@ a""roach) the future free cash flo:s are calculated initially on the asis of a fictitious ca"ital structure of 100'
eJuity) i.e. interest and re"ay4ents on det ca"ital are not factored in initially. 8he adEust4ent to:ards the actual ca"ital structure is done y
discountin3 the calculated free cash flo:s :ith the :ei3hted avera3e cost of ca"ital #6A99() :hich takes into account oth the cost of eJuity
ca"ital and the cost of det. After discountin3) the calculated total enter"rise value is reduced y the interest=earin3 det ca"ital in order to arrive
at the eJuity value.

Hauck & Aufhuser Institutional Research uses the follo:in3 three=ste" ratin3 syste4 for the analysed co4"anies;

7uy; !ustainale u"side "otential of 4ore than 10' :ithin 12 4onths
!ell; !ustainale do:nside "otential of 4ore than 10' :ithin 12 4onths.
Hold; *"sideAdo:nside "otential is li4ited. 1o i44ediate catalyst visile.

17; 8he reco44endations of Hauck & Aufhuser Institutional Research are not ased on a "erfor4ance that is eF"ected to e QrelativeQ to the
4arket.

8he decision on the choice of the financial instru4ents analysed in this docu4ent :as solely 4ade y the 9o4"any. 8he o"inions and esti4ates
in this research re"ort are suEect to chan3e :ithout notice. It is :ithin the discretion of the 9o4"any :hether and :hen it "ulishes an u"date to
this research re"ort.

2# ,aGor -ources of +nfor4ation
5art of the infor4ation reJuired for this research re"ort :as 4ade availale y the issuer of the financial instru4ent. @urther4ore) this re"ort is
ased on "ulicly availale sources #such as) for eFa4"le) 7loo4er3) Reuters) C6B=8rader and the relevant daily "ress( elieved to e reliale.
8he 9o4"any has checked the infor4ation for "lausiility ut not for accuracy or co4"leteness.

5# Co4petent -uper=isor& "uthorit&
8he 9o4"any and Hauck & Aufhuser 5rivatankiers +GaA are under su"ervision of the 7a@in Y Ger4an @ederal @inancial !u"ervisory Authority
#7undesanstalt fHr @inanKdienstleistun3saufsicht() Graurheindorfer !traZe 10-) >%11< 7onn and 2arie=9urie=!traZe 24 Y 2-) ,04%& @rankfurt a.2.

D# -pecific Co44ents for 3ecipients *utsi.e of )er4an&
8his research re"ort is suEect to the la: of the @ederal Re"ulic of Ger4any. 8he distriution of this infor4ation to other states in "articular to the
*!A) 9anada) Australia and Ja"an 4ay e restricted or "rohiited y the la:s a""licale :ithin this state.
8his docu4ent is only ein3 distriuted to and is only directed at #i( "ersons :ho are outside the *nited +in3do4 or #ii( to invest4ent "rofessionals
fallin3 :ithin Article 1&#>( of the @inancial !ervices and 2arkets Act 2000 #@inancial 5ro4otion( 0rder 200> #the [0rderQ( or #iii( hi3h net :orth
entities) and other "ersons to :ho4 it 4ay la:fully e co44unicated) fallin3 :ithin Article 4&#2(#a( to #d( of the 0rder. 8his docu4ent shall not e
4ade availale = :hether directly or indirectly = to another 3rou" of "eo"le in or fro4 the *nited +in3do4.

June 2014


$1 Hauck & Aufhuser Institutional Research
Contacts: 8auc1 ; "ufh<user +n=est4ent 9an1ing


8auc1 ; "ufh<user 3esearch

Hauck & Aufhuser
Institutional Research AG
2ittel:e3 1,A1<

2014- Ha4ur3
Ger4any

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-ascha 9erresch@ C!"
Head of Research
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Leonhar. 9a&er
Analyst
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8enning 9reiter
Analyst
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Lars 'annenberg
Analyst
8el.; $4& #0(40 414 %--> = &2
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Nils/Peter )ehr4ann
Analyst
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Christian )lowa
Analyst
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Philippe Lorrain
Analyst
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Christian -chwen1enbecher
Analyst
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Torben Teichler
Analyst
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Ti4 0un.erlich@ C!"
Analyst
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8auc1 ; "ufh<user -ales

Aincent 9ischoff
!ales
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Ja4es 9onsor@ C!"
!ales
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8a4ish E.sell
!ales
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"le?an.er Lach4ann
!ales
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8ugues ,a.elin
!ales
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,ar1us 0eiss
!ales
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Tob& 0oo.s
!ales
8el.; $44 20< 40- 1100
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-uper=isor& 9oar.

)rae4e 'a=ies
9hair4an
8el.; $4& #0(40 414 %--> = <0
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,ichael 9entlage

8el.; $4& #0(,& 21,1 = 1-,%
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Jeroni4o 9re4er

8el.; $4& #0(40 414 %--> = <0
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8auc1 ; "ufh<user -ales Tra.ing

Hauck & Aufhuser
5rivatankiers +GaA
+aiserstraZe 24

,0%11 @rankfurt a4 2ain
Ger4any

8el.; $4& #0( ,& 21,1= 0
@aF; $4& #0( ,& 21,1= 1%40
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,ir1o 9ruegge4ann
8radin3
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Christian =on -chuler
8radin3
8el.; $4& #0(40 414 %--> <<
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Carolin 0eber
2iddle=0ffice
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