gowex coverage analysis by bankia - july 2012

Gowex

Spain/ Telecommunications Company update

Produced by: All ESN research is available on Bloomberg (“ESNR”), Thomson-Reuters, Capital IQ, TheMarkets.com, FactSet

Distributed by the Members of ESN (see last page of this report)

Investment Research Reason: Estimates Revision 20 July 2012

Buy

6.01closing price as of 19/07/2012

10.706.80from Target Price: EUR

Recommendation unchanged

Target price: EUR

Share price: EUR

Reuters/Bloomberg GOW.MC/GOW SQ

Daily avg. no. trad. sh. 12 mth 8,380

Daily avg. trad. vol. 12 mth (m) 0.04

Price high 12 mth (EUR) 6.40

Price low 12 mth (EUR) 4.33

Abs. perf. 1 mth 0.2%

Abs. perf. 3 mth -2.1%

Abs. perf. 12 mth 19.2%

Market capitalisation (EURm) 78

Current N° of shares (m) 13

Free float 30%

Key financials (EUR) 12/11 12/12e 12/13e

Sales (m) 67 94 117

EBITDA (m) 17 24 29

EBITDA margin 24.8% 25.1% 25.2%

EBIT (m) 10 17 20

EBIT margin 14.2% 17.8% 17.5%

Net Profit (adj.)(m) 7 13 15

ROCE 44.5% 49.9% 39.9%

Net debt/(cash) (m) (22) (18) (18)

Net Debt Equity -0.6 -0.4 -0.3Net Debt/EBITDA -1.3 -0.8 -0.6

Int. cover(EBITDA/Fin.int) (125.8) (134.9) (204.2)

EV/Sales 0.6 0.6 0.5

EV/EBITDA 2.4 2.5 2.0

EV/EBITDA (adj.) 2.4 2.5 2.0

EV/EBIT 4.2 3.5 2.9

P/E (adj.) 8.6 6.1 5.2

P/BV 1.8 1.6 1.2OpFCF yield 58.8% 14.8% 21.7%

Dividend yield 1.3% 2.5% 2.9%

EPS (adj.) 0.56 0.99 1.17

BVPS 2.72 3.70 4.86

DPS 0.08 0.15 0.17

3.5

4.0

4.5

5.0

5.5

6.0

6.5

Jul 11 Aug 11 Sep 11 Oct 11 Nov 11 Dec 11 Jan 12 Feb 12 Mar 12 Apr 12 May 12 Jun 12 Jul 12

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GOWEX MAB (Rebased)Source: Factset Shareholders: Jenaro García 60%; Alvasebi 10%;

For company description please see summary table footnote

Capturing Wi-Fi growth

In our opinion, Gowex is an interesting alternative within the telecommunications sector, being a winning horse within the wireless broadband growth trend, and the increasing use of Wi-Fi. Despite the positive market performance (+19% in last 12 months), at current market price Gowex trades at EV/EBITDA’12e of 2.5x and P/E’12e 6.1x, with CAGR 2011-13e 34% in EBITDA and 44% EPS, net cash of EUR22m (28% of current market cap), international growth (42% international sales in 2011) and positive news flow.

Gowex accumulates +19% during the last 12 months (vs. Ibex 35’s -31%), in line with the positive operating performance, in which we highlight: 1) compliance with 2011 guidance: EBITDA +76% EUR16.5m (vs. EUR12.4m guidance); 2) positive news flow, increasing backlog (cities, transportation agencies in countries such as China, France, Argentina) and new roaming agreements.

The scenario is still favourable for growth in Wi-Fi, leaning on the increasing connectivity and mobile services (high demand of smartphones, tablets and connected handsets) and the saturation of 3G-4G mobile networks. Gowex is a neutral manager within the Wi-Fi sector, positioning itself in the middle of the value chain, offering a neutral and transparent interconnection point, and solutions to: 1) lack of standardization; 2) lack of interconnection between a growing number of operators; 3) population need to access high speed mobility data; 4) improving coverage deficit.

Gowex presented good 2011 results, with sales growing +34% (EUR66.7m), +7.6% EBITDA (EUR16.5m) and +41% Net Profit (EUR7.2m). The results came in above Gowex’ guidance and our estimates (20% in sales, and 37% in EBITDA).

The company presents a healthy financial situation, with a net cash position of EUR22.1m. Despite the more intense CAPEX in 2012-13e (co-investment, accelerating the capturing of critical mass), we do not expect a substantial erosion in the company’s financial situation due to the strong cash flow generation.

Estimates and valuation: Following 2011 results and the positive commercial performance, we have adjusted upward our estimates (+62% in EBITDA 2012-13e) and our fair value up to EUR10.7/share (+57% DCF valuation: WACC 14.5% and g=2.0%). Our new FV implies EV/EBITDA’12e 4.9x and P/E’12e 10.8x. We estimate CAGR 2011-13e of 32% in revenues, +34% in EBITDA and +44% in Net Profit (all organic).

Its US peer, Boingo, trades at EV/EBITDA’12e 6.9x, well above Gowex’ 2.5x (at our EUR10.7/share, GOW would trade at a 30% discount vs. Boingo in terms of EV/EBITDA).

Buy recommendation, in light of the 78% upside potential to our new fair value. In our opinion, Gowex is an interesting alternative within the telcos sector, as a winner within the mobile broadband growth trend and increasing use of Wi-Fi.

Analyst(s): David Cabeza Jareño +34 91 4367818 [email protected]

Gowex

CONTENIDOS

Capturing Wi-Fi growth .............................................................................. 3

High double digit growth and improving mix. ......................................... 4

Improving profitability 6

Positive news flow: increasing critical mass 7

Sector scenario: Wi-Fi, complementing wireless networks ................... 8

Gowex. Positioning and strategy ............................................................ 10

Organic growth 10

Co-investment to accelerate growth 11

Inorganic growth 12

Estimates adjusted ................................................................................... 13

Financial strength. EUR22m net cash. 13

Valuation EUR10.7/share ......................................................................... 14

Multiples comparison 15

Comparable transactions 16

Market performance and shareholder structure 16

Risk Factors 17

Annex ......................................................................................................... 18

Company description and history 18

ESN Recommendation System ............................................................... 25

Gowex

Capturing Wi-Fi growth

Gowex accumulates +19% during the last 12 months (vs. Ibex 35’s -31%), in line with the positive operating performance, in which we highlight: 1) compliance with 2011 guidance: EBITDA +76% EUR16.5m (vs. EUR12.4m guidance); 2) positive news flow, increasing backlog (cities, transport means, especially abroad) and new roaming agreements.

The scenario is still favourable for growth in Wi-Fi, leaning on the increasing connectivity services and mobile services (high demand of smartphones, tablets and connected handsets) and the saturation of 3G-4G mobile networks. According to Cisco, mobile data traffic will double worldwide in 2012, and traffic will increase another 78% until 2014. In parallel, we observe a similar growth in Wi-Fi: the number of Wi-Fi connection points is expected to reach 2.7m in 2014, with use growing 200%. Gowex occupies a neutral management position within the sector, positioning itself in the middle of the value chain, offering a neutral and transparent interconnection point, and solutions to: 1) lack of standardization; 2) lack of interconnection between the growing number of operators; 3) population need to access high speed data mobility; 4) improving coverage deficit.

Gowex presented good 2011 results, with sales growing +34% (EUR66.7m), +7.6% EBITDA (EUR16.5m) and +41% net profit (EUR7.2m). The results came in above Gowex’ guidance and our estimates (20% above sales, EUR56m, and 37% higher in EBITDA, EUR12m). Following 2011 results and the positive commercial performance, we have adjusted estimates up (+62% in EBITDA 2012-13e) and our fair value to EUR10.7/share (+57%), discounting EV/EBITDA’12e 4.9x and P/E’12e 10.8x.

Gowex. Main figures

2010 2011 Var %Revenues 49.6 66.7 34% Gowex Telecom 23 20 -13% Gowex Wireless 26.7 46.5 74%Gross Margin 18.5 29.8 61% Gowex Telecom 4.3 5.8 35% Gowex Wireless 14.2 23.9 68%EBITDA 9.4 16.5 76%Net Profit 5.1 7.2 41%

2010 2011 Var %WiFi cities 35 52 49%Transportation agencies 1 15 1400%Freemium users (m) 340 740 118%Pages viewed (m) 1450 4600 217%Roaming operators 65 95 46%Revenues Spain 70% 58% -12.0 p.p.Revenues International 30% 42% 12.0 p.p.Recurrent revenues (Wireless) 55% 63% 8.0 p.p.

Source: Gowex:

Despite the positive market performance, at current market price Gowex trades at EV/EBITDA’12e of 2.5x and P/E’12e 6.1x, with CAGR 2011-13e 34% in EBITDA and 44% EPS, net cash of EUR22m (28% capitalization), international growth (42% international sales in 2011) and positive news flow. It’s US peer, Boingo (USD250m market cap), trades at EV/EBITDA’12e 6.9x and P/E 12e 37x, well above Gowex’ current multiples. We recommend Buy, considering the 78% upside potential to our fair value (EUR10.7/share).

Gowex

High double digit growth and improving mix.

In 2011, 70% of the revenues (80% of gross margin) were generated in Gowex Wireless (vs. 54% in 2010), with 52 cities, 15 transport means and 95 operators (vs. 35, 1 and 65 respectively a year earlier). The remaining 30% was generated in Gowex Telecom. 42% of the revenues were generated abroad (vs. 30% in 2010), reinforcing its presence in Europe, LatAm and Asia, with integral Wi-Fi city modules (development, commercialisation and management).

Gowex: Activity Revenues Mix (2011) Gowex. Geographic Revenues Mix (2011)

Gowex Telecom

30%

Network (roaming & offloading)

23%

Engineering & consulting

41%

Media platform

6%

Spain58%

International42%

Gowex. Revenues Per Activity (2007-13e) Gowex. Geographic Revenues Mix (2007-13e)

17 21 25 23 20 21 221 3

1127

47

7395

0

20

40

60

80

100

120

140

2007 2008 2009 2010 2011 2012e 2013e

Gowex Telecom Gowex Wireless

17.0 22.6 30.4 34.7 38.7 49.1 57.10.0

1.64.8

14.928.0

45.4

59.9

0.0

20.0

40.0

60.0

80.0

100.0

120.0

140.0

2007 2008 2009 2010 2011 2012e 2013e

Spain International

Source: Gowex. Estiamtes Bankia Bolsa Source: Gowe. Estimates Bankia Bolsa

Gowex Wireless represented 70% of the revenues in 2011 and 80% of Gowex’ gross margin, generating EUR47m revenues (vs. EUR3m in 2008). Out of its 3 segments, network and engineering activities are performing better than expected, whereas media is evolving below estimates, affected by the economic context in Spain. In 2011, 63% of Gowex Wireless’ revenues were recurrent (vs. 55% in 2010). We distinguish:

1) The Network activity (32% of Gowex Wireless revenues in 2011) includes recurrent roaming, offloading, interconnection and access activities. Sales grew +78% in 2011 thanks to the increasing critical mass and the greater use of wireless services (resulting in increasing roaming, offloading and interconnections for Gowex). Currently there are over 95 operators using the platform, creating a network with >400,000 access points (the clients of these operators are potential consumers of Gowex’ roaming services).

Gowex

2) Engineering, consultancy and maintenance (58% Wireless revenues in 2011). Gowex

offers the following services: a) consultancy: designing the network, non-recurrent revenues, high margins; b) installation: Gowex controls the process, but outsources the physical installation to an engineer, non-recurrent revenues and margins in line with the group’s average; and c) management/maintenance of Wi-Fi networks: software maintenance, generating recurrent revenues and margins in line with the group’s average. The better than estimated performance of this unit was owing to the good performance of international projects, trend that we believe will continue in upcoming years, bearing in mind the recently announced agreements with cities and transport companies.

3) Media (9% Wireless revenues in 2011) includes advertising, applications and services. Despite growing +30% in revenues to EUR4.3m, it is the activity with the worse relative performance in 2011, affected by the difficult advertising scenario. In our view, the higher weight of the international activity (opening of new international Wi-Fi cities) and the heavy weight of geo-localised advertising in the advertising mix should result in growths in future years (we estimate 2 fold revenues in 2013 vs. 2011).

Gowex Wireless. Recurrent Revenues Gowex Wireless: Network (roaming, offloading, access)

15

29

12

17

05

101520253035404550

2010 2011

Recurrent Non recurrent

0.73.7

8.4

15.0

27.2

46.1

0.0

5.0

10.0

15.0

20.0

25.0

30.0

35.0

40.0

45.0

50.0

2008 2009 2010 2011 2012e 2013e

Network (roaming & offloading)

Gowex Wireless. Engineering Gowex Wireless. Media

2.56.4

15.0

27.2

39.5 39.7

0.0

5.0

10.0

15.0

20.0

25.0

30.0

35.0

40.0

45.0

2008 2009 2010 2011 2012e 2013e

Engineering & consulting

0.0 0.3

3.3

4.3

6.3

8.7

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

9.0

10.0

2008 2009 2010 2011 2012e 2013e

Media platform

Source: Gowex. Estimates Bankia Bolsa Source: Gowex. Estimates Bankia Bolsa

Gowex

Gowex Telecom (30% revenues and 20% gross margin) is focused on B2B products and telecommunication services (broadband, data transmission circuits, private virtual networks, etc) via its commercial exchange platform. Telecom revenues proceed from the following:

Adhesion fee for new members (interconnection and physical infrastructure) and of membership (monthly), according to volume, lines to be connected, etc.

Fees from purchase/sales operations in broad band at transparent and competitive prices, data transmission circuits, voice services.

Consultancy, and infrastructure management services (monitorising, management and back-up) and equipment storage.

Since 2010, the company is modifying the way in which revenues and costs proceeding from intermediation are accounted (end of the process in 2012). The intention is to adjust the accounting of the affiliate to the scope of intermediation. The impact on results has been lower revenues and costs in 2010 and 2011. The gross margin in absolute terms has not been affected nor the rest of the P&L lines which depend on the gross margin (to be determined by the net result in added value service sales plus fees accrued from intermediation services). Despite the fall in revenues in 2011 (see table), the gross margin increased (+35%, EUR5.8m) thanks to the higher volumes. Including the intermediation activity, growth would have reached +79% (from EUR27.0m to EUR48.3m). For the next few years we estimate a prudent, single digit growth in sales and stable gross margin (28% vs. 29% in 2011).

Gowex Telecom. Sales & Gross Margin (2007-13e) Gowex Telecom. Functioning

0%

5%

10%

15%

20%

25%

30%

35%

0.0

5.0

10.0

15.0

20.0

25.0

30.0

2006 2007 2008 2009 2010 2011 2012e 2013e

Sales Gross margin (%)

Source: Gowex. Estimates: Bankia Bolsa Source: Gowex

Improving profitability

The change in revenues mix, with greater weight of Wireless (wider margins), explains the better margins seen in recent years, from 9.5% EBITDA margin in 2008 to 24.8% in 2011. Regarding EBIT margin, in 2011 EUR3.5m were provisions (5% of the sales vs. 3% in 2010, we are estimating EUR2.0m for 2012-13e), and an accelerated depreciation of assets was carried out which partially explains the lower rise in percentage points of the EBIT margin. For 2012 we estimate EBITDA mg of 25.1%, to remain stable in 2013-14e and EBIT margin of 17.5% to 18% in said period, with costs growing in line with revenues.

Gowex

Gowex. Sales & Margins Performance (2008-14e) Gowex. Better Pipeline

Source: Gowex. Estimates: Bankia Bolsa Source: Gowex

Positive news flow: increasing critical mass

Throughout 2011 and year to date, the news flow and commercial momentum has been positive, reinforcing Gowex’s pipeline. We highlight:

15 public transport companies (EMT Madrid, Buenos Aires’ underground).

France: Bordeaux (Dec’11), Gowex’ first Wi-Fi city in France, Paris (announced in June 2012, 48 transport station).

Argentina: 5 cities, urban transport.

China: Increasing penetration. Agreement with CRSC (second rail engineering company in China), high speed trains, 1 city in China (Nanjing).

Agreements with iPass, Boingo, Nintendo, AT&T, Skype, Korean Telecom, MASMovil

Gowex formed part of WBA (Wireless Broadband Alliance, 95 operators).

Offices opened in Shanghai, Paris, Buenos Aires, London, US and Arabian Emirates.

Creation of Gowex Mobile, focusing on developing applications based on services for mobile handsets, making access to geo-localised, discount and downloading easier for WI-FI network users.

Gowex

Sector scenario: Wi-Fi, complementing wireless networks

The Wi-Fi services market continues growing substantially, at the same time as mobile data traffic, leaning on the increasing connectivity services (high demand of smartphones, tablets, and connected handsets) and the saturation of 3G-4G mobile networks. Much of the consumptions in wireless data take place in fixed or nomad areas, where Wi-Fi services can be found at low costs (and frequently for free). As a result, consumers have learned to accept Wi-Fi as a complement to the 3G and 4G data programs. Some relevant figures:

According to the Wireless Broadband Alliance (report 2011), the number of public Wi-Fi access points around the world will increase from 1.3m in 2011 to 5.8m in 2015 (CAGR 20’11-153 +45%).

According to Cisco’s Visual Networking Index (VNI), mobile data traffic will multiply by 256x between 2010 and 2015, reaching 6.3 exabytes/month in 2015. The global mobile traffic will continue exploding, growing 3x quicker than fixed IP traffic during the same period.

Have telecom operators considered Wi-Fi priority in recent years? In general the answer would be no. Telecom operators have concentrated on developing 3G networks (and designing 4G). Wi-Fi had simply grown in parallel. Some recent changes (included in Cisco’s VNI) are:

1) Strong growth of terminals with Wi-Fi. ABI Research estimates a prudent rise in terminals with Wi-Fi (smartphones, tablets, video game consoles) of >300% between 2009-2015, up to over 2bn world-wide.

2) Half the mobile traffic in networks is Wi-Fi

3) Substantial growth in Wi-Fi access points

4) Increasing moves from free access to Wi-Fi hotspots.

5) Wi-Fi is becoming a viable, mobile data downloading technology.

6) Wi-Fi is forming part of the more ample, wireless network design.

Projected Global IP Traffic by Access Network. Wi-Fi hotspots world-wide (millions)

Source: Cisco Visual Networking Index. Global IP Traffic Forecast, 2010–2015 Source: Alcatel Lucent (2012, report Telecoms&Media)

Gowex

Given the fundamental changes in the market, Cisco considers Wi-Fi will be a viable

alternative to the wireless access network. The technology is ready, there is ample coverage, and clients are using Wi-Fi as an alternative to mobile networks. Additionally, service providers are finding new ways to monetize investments via the creation of Wi-Fi networks.

Location of Mobile Data usage (% of Time Spent in Activity). Wi-Fi Access by U.S. Smartphone Users (% o/total Browsing)

Source: Cisco IBSG Connected Life Market Watch Source: Cisco IBSG Mobile Cloud Watch, 2011

Based on observations, investigations and experience in the industry and interactions with service providers, Cisco has made 6 assertions regarding WI-FI’s future and its relation with traditional mobile telephony networks.

1) Wi-Fi covers the majority of the locations where present.

2) Much of what we do is nomad, not mobile.

3) The new nomad terminals will consume even higher amounts of mobile data.

4) Consumers use Wi-Fi easily as a substitute or complement to mobile

5) Wi-Fi can offer a more profitable solution and better user experience

6) There are various alternatives to develop profitable Wi-Fi models.

Wi-Fi. Business models (I) Wi-Fi. Business model (II). Source of value and returns

Source: Cisco IBSG, 2011 Source: Cisco IBSG, 2012

Gowex

Gowex. Positioning and strategy

The context is therefore favourable for Gowex’ business model. The growth outlook for the mobile data market, the new terminals, new applications and services related to mobility are exceptional. Demand on behalf of users and need to lay out wireless networks is ever increasing, as well as the number of operators (wireless market with higher number of operators vs. mobile telephony). Wi-Fi is amongst the highest growth technologies thanks to the low development cost (a tenth of 3G), the use of frequencies are not subject to licenses (2.4GHz and 5GHz) and the high number of terminals integrating WI-FI technology.

Gowex occupies a neutral management position within the Wi-Fi sector, offering solutions to: 1) lack of standardization; 2) lack of interconnection between the growing number of operators; 3) population need to access high speed data mobility; 4) improving coverage deficit. Gowex positions itself in the centre of wireless internet value chain, offering a neutral and transparent interconnection point.

Gowex’s growth keys are: 1) positioning of Gowex’ Roaming Platform as a reference solution in the market for various agents (that we believe will be achieved with the increasing number of cities connected); 2) international expansion via agreements with cities; and 3) potential operating leverage (scalable model); 4) capacity to monetise Wi-Fi networks via the advertising WILOC platform and geo-localised contents.

Gowex. Positioning Gowex. Revenues Diversification

Soruce: Gowex Source: Gowex

Organic growth

Gowex enjoys a leading position and high penetration in exploiting Wi-Fi cities in Spain, while progressively increasing its international presence. The company’s strategy is to repeat the successful business model in other markets and cities in Europe, Asia and Latin America (considering co-investments as an alternative), and continue attracting operators. The circle is virtuous, in which the increasing critical mass and access points increases the company’s appeal, be it to obtain new contracts in cities (developing Wi-Fi cities) and operators (roaming, offloading) apart from geographically diversifying revenues. Specifically speaking we highlight the following strategy lines:

Gowex

Continue growing in Wi-Fi cities and associated networks. Continue growing in

international network deployment, as a priority to achieve higher, recurrent revenues. The strategy is to do so in leading cities, obtaining greater commercial capacity, network effects and large economies of scale. The presence in leading cities would allow the greater use of operator’s demand to download their 3G networks, as this need is more acute in large cities. In certain cases, Gowex will co-invest in cities under the PPP consortium format, in which Gowex is the promoter thus allowing for greater efficiency and higher economies of scale.

Leveraging over Gowex’ neutral, multi-lateral MSP platform: The intention is to take advantage of the positioning obtained, thanks to the higher number of cities, projects and operators already working within Gowex’ platform, thus reaching higher economies of scale and network externalities, as well as the expulsion effect of certain competitors.

Attracts larger operators to become members of Gowex’ MSP platform. To date, the company has mainly obtained small, mid and large operators but always within WI-FI. The majority of Gowex’s current attraction is in allowing the adhesion of large operators (domestic and international) to integrate their 3G networks with Gowex’ WI-FI cities.

Final user: increase the appeal of Gowex’ services in developing activity with final users and the Freemium model. Gowex has developed a software solution, including a business model, that is installed in client’s terminals allowing the transparent use of all networks, including Wi-Fi Cities and networks associated to Gowex’ technological platforms.

Co-investment to accelerate growth

Since 2009, Gowex has played important roles in promoting Public/Private Consortiums to create Wi-Fi cities, participating in the promotion, design and creation of projects and training consortiums; later via a stake (direct or indirect) in executing the implementation and laying out the infrastructure, and finally manage, exploit and operate the project.

During Gowex’ listing in 1Q’10, one of the points underscored in our investment case was the low investment requirements. However, in some cases, Gowex believes it essential to carry out the mentioned functions and participate as co-investor in the consortium. This decision implies:

Acquiring a controlling stake in the consortium or, on occasions, a minority stake (via minority reinforcement agreements)

Allows the development of big projects, greater surface and longer exploitation period.

Increase its competitive advantage vs. other players.

On the other hand, the co-investment demands a greater investment effort for Gowex – reflected in our estimates.

Developing this co-investment policy in 2010 and 2011 allowed the company to surpass targets regarding Wi-Fi cities and economic results. In our view, capturing new cities, concessions etc will continue accelerating the capturing of sufficient critical mass to convert Gowex’ Roaming Platform in one of the reference solutions in the market.

The investment and co-investment plan is mainly focused on leading cities or entities dependant on the former (municipal transport etc). The business case on these co-investments greatly depends on the consortium model proposed, but in the majority of the cases implies Gowex investing between 10 – 25% of the total investment and includes hiring Gowex as the main contractor or implementer of its technology (as the base platform making up the Wi-Fi City).

Gowex

Gowex. Co-investment Formulae. Gowex. Example of Co-investment

Source: Gowex Source: Gowex

Inorganic growth

Gowex carried out two capital increases in 2010 (listing to MAB) and in 2011 (June), capturing EUR6.0m and EUR6.9m respectively, earmarked to finance growth (organic and inorganic). Currently, the company holds a net cash position of EUR22m.

The company stated its interest in accelerating its national and international expansion via acquisitions, such as engineering companies with demonstrated experience in wireless networks, know-how, and a reasonable client portfolio (cities, operators). Gowex continues seeking opportunities in this field, with an estimated size below EUR5m per operation, ruling out various operations in the past (to date there is only one candidate). Despite the lack of track record, the potential size of acquisitions limits the reinvestment risk. We do not include any potential operation in our estimates or valuation.

Gowex

Estimates adjusted

We revise our estimates for 2012 onwards up following the good 2011 results and the commercial advances announced – reinforcing the pipeline and visibility for upcoming years. For 2012-13e our estimates increase 50% in revenues and 62% in EBITDA.

CAGR 2011-13e 32% in revenues, 34% in EBITDA and 44% in Net Profit, with Wireless, international and recurrent revenues progressively increasing their weight in total group revenues.

Our estimates are below Gowex’ 2012 guidance (20% in revenues and 19% in EBITDA). Despite this, for 2012 we estimate 42% growth in revenues and 43% in EBITDA, up to EUR23.7m.

Gowex will release 1H’12 results in September, during which we believe the company may update its 2012 guidance (disclosed in mid-2011).

Gowex. Estimates adjustment Guía Gowex. 2011 vs. reported & 2012e vs. Bankia Bolsa

2011a 2012e 2013e CAGR 11-13eOld 55.8 66.1 74.6 16%

Sales New 66.7 94.5 117.0 32%Dif.% 19.5% 42.9% 56.8%

Old 12.0 15.3 17.4 20%EBITDA New 16.5 23.7 29.5 34%

Dif.% 37.6% 54.7% 69.4%Old 7.4 9.2 10.3 18%

Net Profit New 7.2 12.8 14.9 44%Dif.% -2.4% 38.7% 44.9%

2011 2011 Diff.% 2012e 2012e Diff.%(GOW) (pub) (GOW) BKIA B.

Revenues 66.5 66.7 0.3% 118.7 94.5 -20% G.Wireless 43.8 46.9 7.1% 106.5 73.0 -31% G.Telecom 22.7 20.2 -11.3% 12.2 21.5 76%Gross margin 25.8 29.8 15.5% 56.0 43.2 -23% G.Wireless 21.2 23.9 12.6% 51.1 37.2 -27% G.Telecom 4.5 5.8 27.6% 4.9 6.0 23%Operating expenses 13.4 13.2 -0.9% 26.6 19.6 -26%EBITDA 12.4 16.5 33.1% 29.4 23.7 -19%

Source: ESN Bankia Bolsa estimates, Factset Source: Gowex (DAR 2011), ESN Bankia Bolsa estimates

Financial strength. EUR22m net cash.

Gowex presents a healthy financial situation, with a net cash position of EUR22m at Dec’11, strengthened by both the cash generation and EUR6.9m capital increase in mid-2011. Gowex has a low leveraged financial structure, with equity representing around 60% of the balance (at December 2011).

CAPEX: we estimate more intense CAPEX in 2012-14e, due to the co-investment policy during said period. We revise our CAPEX forecasts up to EUR16.1m in 2012e (17% over sales) and EUR17.5m in 2013e (15% over sales). Despite this rise we do not expect a substantial erosion in cash levels (estimating EUR18m net cash in 2012-13e, not including possible acquisitions).

Shareholders’ remuneration policy: in 2011 Gowex distributed EUR1.0m in dividends against 2010 (19% pay out) and in 2012 another EUR1.0m (EUR0.077/share, 14% EPS 2011). For upcoming years we estimate 15% DPS (reinvesting the rest of the cash).

Gowex

Gowex. ND/EBITDA Gowex. Breakdown of aggregate 5 yrs Free Cash Flow

-1.60

-1.40

-1.20

-1.00

-0.80

-0.60

-0.40

-0.20

0.00

-0.70

-0.60

-0.50

-0.40

-0.30

-0.20

-0.10

0.00

08 09 10 11 12e 13e

Gearing Debt/EBITDA (rhs)

16.2 14.0

30.2

14.7

-20.4

8.6

2.0

16.9

27.5

-30

-20

-10

0

10

20

30

40

Net profit Non cash items

Cash F low Change in Net Working

Capital

Capex Operating free cash flow

Dividends Capital increase

Free cash flow

Source: Gowex. Estimates ESN Bankia Bolsa Source: Gowex. Estimates ESN Bankia Bolsa

Valuation EUR10.7/share

The positive adjustment in estimates together with the better valuation hypothesis triggers a +57% rise in our fair value on Gowex, up to EUR10.7/share (vs. previous EUR6.8/sh).

We carried out a DCF valuation for the period 2012-18e, applying prudent hypotheses: WACC 14.5% (penalized by the share’s low liquidity and the net cash position) a 2.0% perpetual growth, and EBITDA margin in 2018e of 21% below the 25% estimated for 2012-14e.

GOWEX DCF VALUATION TO 31-Dec-12

CASH FLOW (EUR m) 2011 2012e 2013e 2014e 2015e 2016e 2017e 2018eNet sales 66.7 94.5 117.0 144.8 176.5 197.9 219.1 216.7EBIT 9.5 16.8 20.4 24.8 27.4 28.9 32.1 31.4Normative tax rate 25% 25% 27% 28% 28% 28% 28% 28%NOPLAT 7.1 12.6 14.9 17.8 19.7 20.8 23.1 22.6Depreciations and other provisions -7.0 -6.8 -9.0 -11.4 -13.8 -15.8 -17.7 -15.2Gross operating cash flow 14.1 19.5 23.9 29.2 33.5 36.6 40.8 37.8Capital expenditure -10.7 -16.1 -17.5 -18.8 -19.4 -15.8 -15.3 -15.2Change in net working capital 0.0 -4.1 -2.8 -3.8 -4.6 -2.3 -2.3 -0.4Cash flow to be discounted 3.5 -0.7 3.6 6.6 9.5 18.4 23.1 22.2

DCF EVALUATION (EUR m) 2012e 2013e 2014e 2015e 2016e 2017e Nominal yearWACC 14.5% 14.5% 14.5% 14.5% 14.5% 14.5% 14.5%Discount Rate factor 1.00 0.87 0.76 0.67 0.58 0.51 0.44Discounted cash flow -0.7 3.1 5.0 6.3 10.7 11.7Cumulated DCF -0.7 2.4 7.5 13.8 24.5 36.3

WACC & DCF ANALISYS

Free risk rate 4.50% Cumulated DCF 36.3 - Net financial debt (Cash) (11) -22Company risk factor 2.50 Perpetual growth rate (g) 2.0% - Minorities (estimated value) 0Market risk premium 4.00% Normalised Annual CF 22 + Associates 0Cost of Equity (Ke) 14.50% Terminal Value at Nominal Year 178Cost of debt (gross) 5.5% Disc.Rate of Terminal Value 0.44Normative tax rate 30.0% NPV Terminal Value 78.8 Equity Market Value (EUR m) 138Cost of Debt Net (Kd) 3.85% Number of shares (m) 12.93

Target gearing (D/E) % Kd 0% Financial assets (treasury stock) 1.1 Fair Value per share (EUR) 10.7 % Ke 100% Enterprise value (EUR m) 116.2 Price (EUR) 6.01WACC 14.5% Potential upside (downside) 78%

Source: ESN Bankia Bolsa estimates

Gowex

Our fair value discounts 2012e multiples of 4.9x EV/EBITDA and 10.8x P/E (3.9x and 9.3x

2013e multiples, respectively). Considering the 78% upside potential we have a Buy recommendation.

At current market price, Gowex trades at EV/EBITDA 2.5x and P/E’12e 6.1x, that in our opinion does not reflect the company’s potential growth (CAGR 11-13e +32% sales, +34% EBITDA and 45% net Profit), financial health (net cash represents 28% of the current market cap) and the positive track-record.

Implicit ratios @ FV 2010 2011 2012e 2013ePrice 3.4 4.8 10.7 10.7EV / Sales 0.6x 0.6x 1.2x 1.0xEV / EBITDA 3.1x 2.4x 4.9x 3.9xEV / EBIT 4.7x 4.2x 6.9x 5.7xPER 7.5x 8.6x 10.8x 9.3xSource: ESN Bankia Bolsa Sensitivity analysis (WACC & g)

Gowex. Sensitivity AnalysisWACC Perpetual growth rate (g)

10.68 0.5% 1.0% 1.5% 2.0% 2.5% 3.0% 3.5%11.5% 13.0 13.4 13.8 14.3 14.8 15.4 16.012.5% 11.8 12.1 12.5 12.8 13.2 13.7 14.213.5% 10.9 11.1 11.4 11.7 12.0 12.3 12.714.5% 10.0 10.2 10.4 10.7 10.9 11.2 11.515.5% 9.3 9.5 9.7 9.9 10.1 10.3 10.516.5% 8.7 8.8 9.0 9.2 9.3 9.5 9.717.5% 8.2 8.3 8.4 8.5 8.7 8.8 9.0

Source: ESN Bankia Bolsa estimates

Multiples comparison

Although there is no purely, comparable company with Gowex (due to its particular business model, diversification, etc) within Wireless sector there are two listed companies in the US (they aggregate operators networks to offer roaming and interconnection services):

- Boingo: >500,000 hotspots world-wide, began trading in May 2011 in the Nasdaq. Boingo is an international, WI-FI service provider, offering retail clients (final users) and wholesalers access service to Wi-Fi points. In 2011 the company generated USD95m revenues and USD28m EBITDA. Boingo’s 2012 guidance points to +19% revenues and +30% EBITDA.

- iPass. 750,000 hotspots in 120 countries. Offers mobile connectivity services to companies. In 2011 it generated USD140m revenues (falling 9%) and small loss at operating level (EBITDA USD-0.2m).

Boingo trades at 6.9x EV/EBITDA’12e vs. Gowex’ 2.5x. At our fair value (EUR10.7/share, implying 4.9x EV/EBITDA’12e), Gowex’ discount vs. Boingo would be of 30%, which we would consider justified considering Boingo’s greater liquidity (trades in the Nasdaq).

Company Price Mkt. Cap. EV/EBITDA PER Mg EBITDA CAGR EBITDA DN/EBITDA Performance %(EUR) (EUR m) 2012e 2013e 2012e 2013e 2012e 2011-13e 2011 1m 6m 12m

Boingo Wireless Inc. 8.73 303 6.9x 5.2x 36.9x 26.5x 33.4% 29.4% -3.3x -2% 37% 37%iPass Inc. 116 26.2x -5% 59% 64%Gowex (Bankia) 6.01 78 2.5x 2.0x 6.1x 5.2x 25.1% 33.6% -1.3x 1% 5% 19%Gowex (Factset) 6.01 78 2.2x 1.6x 6.3x 5.3x 25.1% 50.8% -0.9x 1% 5% 19%Source: Facset, Bankia Bolsa

Gowex

Comparable transactions

The Wi-Fi sector is a young, atomised sector in which, in our opinion, a consolidation process must take place to seek critical mass. In recent months some operations have taken place, granting visibility to the sector’s growth. The most recent has been Arqiva Broadcast Holding’s acquisition of Spectrum Interactive Ltd, acquiring 100% for GBP23.4m. Spectrum Interactive is one of the largest, independent Wi-Fi operators in the UK, with 15,500 access points in 2,100 Premium locations (hotels, restaurants, airports, etc). According to the official release, the agreement will allow Arqiva to accelerate growth in the wholesale mobile data activity via the acquisition of a scalable platform. Following this acquisition Arquiva will be one of the largest Wi-Fi access point providers in UK.

Market performance and shareholder structure

Gowex began trading in the alternative market (MAB) on March 12th 2010, via a subscription offer among institutional investors at EUR3.5/share. Since then the stock has enjoyed a +75% performance. Apart from trading in the Spanish MAB, it also trades in the French Alternext since June 2010. The dual listing increases and diversifies its shareholder structure, and crosses a larger number of trading operations. Gowex’ intention is to jump to the spanish continuous market and also to one or various renowned international markets.

Gowex’ shareholder structure is made up by Mr. Jenaro Garcia (CEO, 60% via Cash Devices and Biotelgy VC) and the rest of the management, that jointly hold 70.3% of the group. The free float is 29.7% (c. half of free float is held by institutional investors).

Gowex. Price performance Gowex. Shareholder structure

Jenaro García60%

Alvasebi10%

Free-float30%

Source. Facset: Source: Gowex & ESN Bankia Bolsa

Gowex

Risk Factors

1) Risk of not attaining sufficient critical mass that would convert the GOWEX Roaming Platform into one of the reference solution in the market.

2) Technological risks: obsolescence, network security.

3) Risk of new competitors.

4) Risk in relation to the position of the incumbent and large operators.

5) Risk of depending on key people.

6) Risk of acquisitions (although not included in our estimates, there is the risk of overpaying for potential acquisitions).

7) Risk of reduced market liquidity.

SWOT analysis

STRENGTHS WEAKNESSES

The backlog of GOWEX Wireless.

Neutral positioning and technological innovation capabilities.

Strong financial position (net cash).

GOWEX Telecom’s positive track record.

Relatively small size.

Reduced liquidity in Alternative markets (MAB, Alternext)

OPPORTUNITIES THREATS

Development of WiFi cities abroad.

Wireless roaming platform as a reference in the sector.

Potential offered by geolocalised Internet advertising.

The position of the incumbent and large operators.

New competitors.

Technological obsolescence.

Gowex

Annex

Company description and history

Group Gowex operates in the telecommunication sector, holding a unique position as a neutral infrastructure manager and interconnection service provider for operators, exploiting telecommunication networks. Gowex defines itself as an agent or neutral player, with the intention to endow the market with the electronic communications, instruments and tools necessary to make the best and most efficient use of the latter (internet broad band, data transmission circuits, use of radio electric spectrum and WI-FI).

Let’s Gowex is the result of the changed corporate name in 2008 from IBER-X (Iber Band Exchange SA), founded in 1999 as a telecommunications service company for wholesalers. The main milestones are summed up in the following graph:

Gowex. Milestones

Source: Gowex

The Group’s growth pillars are 1) creation, development and exploitation of technological platforms; 2) technological and legal consultant; 3) creator of contents, service and geo-localised advertising platforms and WI-FI points map; 4) exploitation of WI-FI Cities. Gowex bases its activity on two main business lines:

1) GOWEX Wireless (group’s main growth driver) provides diverse services related to wireless telecommunications: consultancy, management and exploitation of WI-FI networks, wireless roaming platform, advertising and electronic geo-localised commerce of wireless networks.

2) GOWEX Telecom Services (traditional activity, previously Iber-X): managing and exploitation of a commercial product exchange platform and services for the B2B telecommunications market and certain accessory services.

Gowex

Gowex: Summary tables PROFIT & LOSS (EURm) 12/2008 12/2009 12/2010 12/2011 12/2012e 12/2013eSales 24.2 35.2 49.6 66.7 94.5 117Cost of Sales & Operating Costs -21.9 -29.7 -40.3 -50.2 -70.8 -87.5Non Recurrent Expenses/Income 0.0 0.0 0.0 0.0 0.0 0.0EBITDA 2.3 5.5 9.4 16.5 23.7 29.5EBITDA (adj.)* 2.3 5.5 9.4 16.5 23.7 29.5Depreciation -0.8 -1.0 -1.6 -3.4 -4.8 -7.0EBITA 1.5 4.5 7.8 13.1 18.8 22.4EBITA (adj)* 1.5 4.5 7.8 13.1 18.8 22.4Amortisations and Write Downs -0.3 -0.9 -1.6 -3.6 -2.0 -2.0EBIT 1.3 3.6 6.3 9.5 16.8 20.4EBIT (adj.)* 1.3 3.6 6.3 9.5 16.8 20.4Net Financial Interest 0.0 -0.1 0.1 0.1 0.2 0.1Other Financials 0.0 0.0 0.0 0.0 0.0 0.0Associates 0.0 0.0 0.0 0.0 0.0 0.0Other Non Recurrent Items 0.0 0.0 0.0 0.0 0.0 0.0Earnings Before Tax (EBT) 1.2 3.5 6.3 9.6 17.0 20.6Tax -0.3 -0.6 -1.2 -2.4 -4.3 -5.5Tax rate 21.9% 17.9% 18.7% 25.1% 25.0% 26.8%Discontinued Operations 0.0 0.0 0.0 0.0 0.0 0.0Minorities 0.0 0.0 0.0 0.0 0.0 0.0Net Profit (reported) 1.0 2.9 5.1 7.2 12.8 15.1Net Profit (adj.) 1.0 2.9 5.1 7.2 12.8 15.1

CASH FLOW (EURm) 12/2008 12/2009 12/2010 12/2011 12/2012e 12/2013eCash Flow from Operations before change in NWC 2.0 4.8 8.2 14.2 19.6 24.1Change in Net Working Capital 0.0 -2.1 -8.1 24.9 -4.1 -2.8Cash Flow from Operations 2.0 2.7 0.2 39.1 15.5 21.3Capex -1.4 -1.6 -5.8 -10.7 -16.1 -17.5Net Financial Investments 0.0 0.0 0.0 0.0 0.0 0.0Free Cash Flow 0.6 1.1 -5.6 28.5 -0.6 3.7Dividends 0.0 0.0 1.0 1.0 1.9 2.2Other (incl. Capital Increase & share buy backs) -1.8 -1.3 3.7 5.1 -2.7 0.0Change in Net Debt -1.1 -0.2 -0.9 34.5 -1.3 6.0NOPLAT 0.9 2.5 4.4 6.7 11.8 14.3

BALANCE SHEET & OTHER ITEMS (EURm) 12/2008 12/2009 12/2010 12/2011 12/2012e 12/2013eNet Tangible Assets 1.3 1.7 5.8 13.3 22.9 31.9Net Intangible Assets (incl.Goodwill) 1.7 1.9 2.0 2.0 3.6 5.2Net Financial Assets & Other 0.2 0.2 0.5 0.7 0.7 0.7Total Fixed Assets 3.2 3.8 8.3 16.0 27.2 37.8Inventories 0.0 0.0 0.0 0.0 0.0 0.0Trade receivables 19.4 20.7 25.9 9.9 9.4 11.7Other current assets 0.0 0.0 0.0 0.0 0.0 0.0Cash (-) -2.3 -5.8 -15.1 -31.2 -27.6 -27.3Total Current Assets 21.8 26.5 41.1 41.1 37.1 39.0Total Assets 25.0 30.3 49.4 57.1 64.3 76.8Shareholders Equity 9.5 12.5 22.9 35.1 47.9 62.8Minority 0.0 0.0 0.0 0.0 0.0 0.0Total Equity 9.5 12.5 22.9 35.1 47.9 62.8Long term interest bearing debt 0.8 1.2 3.3 6.2 6.2 6.2Provisions 0.0 0.0 0.0 0.0 0.0 0.0Other long term liabilities 0.4 0.6 1.4 2.6 -5.1 -8.1Total Long Term Liabilities 1.2 1.8 4.7 8.8 1.1 -1.9Short term interest bearing debt 0.9 1.9 2.6 2.9 2.9 2.9Trade payables 13.4 14.0 19.2 10.2 12.3 12.9Other current liabilities 0.0 0.0 0.0 0.0 0.0 0.0Total Current Liabilities 14.3 16.0 21.8 13.2 15.3 15.9Total Liabilities and Shareholders' Equity 25.0 30.3 49.4 57.1 64.3 76.8Net Capital Employed 9.2 10.4 15.1 15.7 24.3 36.5Net Working Capital 6.0 6.7 6.8 -0.3 -2.9 -1.2

GROWTH & MARGINS 12/2008 12/2009 12/2010 12/2011 12/2012e 12/2013eSales growth 42.6% 45.4% 41.1% 34.4% 41.7% 23.8%EBITDA (adj.)* growth 107.3% 139.2% 69.8% 76.3% 43.3% 24.5%EBITA (adj.)* growth 255.7% 190.0% 74.2% 67.7% 43.8% 19.1%EBIT (adj)*growth 529.6% 184.0% 74.6% 51.9% 77.2% 21.4%

Gowex

Gowex: Summary tables GROWTH & MARGINS 12/2008 12/2009 12/2010 12/2011 12/2012e 12/2013eNet Profit growth +chg 197.5% 78.4% 40.7% 76.8% 18.1%EPS adj. growth +chg 197.5% 51.8% 25.3% 76.8% 18.1%DPS adj. growth +chg -11.0% 91.4% 17.0%EBITDA (adj)* margin 9.5% 15.7% 18.9% 24.8% 25.1% 25.2%EBITA (adj)* margin 6.4% 12.7% 15.7% 19.6% 19.9% 19.2%EBIT (adj)* margin 5.2% 10.2% 12.6% 14.2% 17.8% 17.5%

RATIOS 12/2008 12/2009 12/2010 12/2011 12/2012e 12/2013eNet Debt/Equity -0.1 -0.2 -0.4 -0.6 -0.4 -0.3Net Debt/EBITDA -0.3 -0.5 -1.0 -1.3 -0.8 -0.6Interest cover (EBITDA/Fin.interest) nm 68.9 nm nm nm nmCapex/D&A 132.1% 83.2% 185.4% 152.0% 235.1% 194.5%Capex/Sales 5.7% 4.6% 11.6% 16.0% 17.0% 15.0%NWC/Sales 24.9% 19.0% 13.7% -0.5% -3.1% -1.0%ROE (average) 12.7% 26.1% 29.0% 24.9% 30.7% 27.2%ROCE (adj.) 9.8% 24.4% 30.0% 44.5% 49.9% 39.9%WACC 14.5% 14.5% 14.5% 14.5% 14.5% 14.5%ROCE (adj.)/WACC 0.7 1.7 2.1 3.1 3.4 2.8

PER SHARE DATA (EUR)*** 12/2008 12/2009 12/2010 12/2011 12/2012e 12/2013eAverage diluted number of shares 9.8 9.8 11.5 12.9 12.9 12.9EPS (reported) 0.10 0.29 0.45 0.56 0.99 1.17EPS (adj.) 0.10 0.29 0.45 0.56 0.99 1.17BVPS 0.97 1.28 1.99 2.72 3.70 4.86DPS 0.00 0.00 0.09 0.08 0.15 0.17

VALUATION 12/2008 12/2009 12/2010 12/2011 12/2012e 12/2013eEV/Sales 0.6 0.6 0.6 0.5EV/EBITDA 3.1 2.4 2.5 2.0EV/EBITDA (adj.)* 3.1 2.4 2.5 2.0EV/EBITA 3.8 3.0 3.1 2.7EV/EBITA (adj.)* 3.8 3.0 3.1 2.7EV/EBIT 4.7 4.2 3.5 2.9EV/EBIT (adj.)* 4.7 4.2 3.5 2.9P/E (adj.) 7.5 8.6 6.1 5.2P/BV 1.7 1.8 1.6 1.2Total Yield Ratio -2.6% -2.5% -2.9% -3.4%EV/CE 2.0 2.7 2.5 1.7OpFCF yield -3.3% 58.8% 14.8% 21.7%OpFCF/EV -4.3% 91.3% 19.4% 28.4%Payout ratio 0.0% 0.0% 19.5% 13.8% 15.0% 14.9%Dividend yield (gross) 2.6% 1.3% 2.5% 2.9%

EV AND MKT CAP (EURm) 12/2008 12/2009 12/2010 12/2011 12/2012e 12/2013ePrice** (EUR) 3.35 4.79 6.01 6.01Outstanding number of shares for main stock 9.8 9.8 11.5 12.9 12.9 12.9Total Market Cap 39 62 78 78Net Debt -1 -3 -9 -22 -18 -18o/w Cash & Marketable Securities (-) -2 -6 -15 -31 -28 -27o/w Gross Debt (+) 2 3 6 9 9 9Other EV components 0 0 0 0 0 0Enterprise Value (EV adj.) 29 40 59 60Source: Company, Bankia Bolsa estimates.

Notes* Where EBITDA (adj.) or EBITA (adj)= EBITDA (or EBITA) -/+ Non Recurrent Expenses/Income and where EBIT (adj)= EBIT-/+ Non Recurrent Expenses/Income - PPA amortisation **Price (in local currency): Fiscal year end price for Historical Years and Current Price for current and forecasted years

Sector: Telecommunications/Telecommunications

Company Description: Gowex operates within the telecommunication sector, occupying a unique position as a neutral infrastructuremanager and interconnection services company for operators. Gowex was founded in 1999 and currently focuses on 2 main activities:1) Gowex Wireless (main growth driver): services related to wireless telecommunications: management and operation of WiFi networks,wireless roaming platform 2) Gowex Telecom (traditional activity): bandwith trading and B2B telecoms market services.

Gowex

European Coverage of the Members of ESN

A ero space & D efense M em(*) Unicredit BAK M etka IBG Deceuninck BDG F inancial Services M em(*)

Eads CIC Credit Agrico le Sa CIC Altri CBI Buzzi Unicem BAK Corp. Financiera A lba BBO

Dassault Aviation CIC Alpha Bank IBG Crown Van Gelder SNS Heijmans SNS Bb Bio tech EQB

Latecoere CIC Banca M ps BAK Salzgitter EQB M ota Engil CBI Deutsche Boerse EQB

Safran CIC Bper BAK Talvivaara M ining Co Plc POH Obrascon Huarte Lain BBO Gbl BDG

Thales CIC Banco Popolare BAK Nyrstar BDG Italcementi BAK Binckbank SNS

Zodiac CIC Bcp CBI Dnick Holding Plc EQB Ballast Nedam SNS Bois Sauvage BDG

Bae Systems Plc CIC Bes CBI B io techno lo gy M em(*) Royal Bam Group SNS Cir BAK

Rolls Royce CIC Bankinter BBO Transgene CIC Boskalis Westminster SNS Comdirect EQB

Finmeccanica BAK Banco Popular BBO Zeltia BBO Cfe BDG Dab Bank EQB

Rheinmetall EQB Bpi CBI M orphosys EQB Ellaktor IBG Gimv BDG

M tu EQB Banco Sabadell BBO Epigenomics Ag EQB Impregilo BAK Ifg Group Plc NCB

Lisi CIC Bank Of Ireland NCB 4Sc Ag EQB Trevi BAK M lp EQB

A irlines M em(*) Piraeus Bank IBG Bioalliance Pharma CIC Sacyr Vallehermoso BBO Ackermans & Van Haaren BDG

Air France Klm CIC Commerzbank EQB Wilex EQB Gek Terna IBG Banca Ifis BAK

Lufthansa EQB Efg Eurobank Ergasias IBG M etabolic Explorer CIC Uponor POH Hellenic Exchanges IBG

Ryanair NCB Intesa Sanpaolo BAK Neovacs CIC Yit POH Kbc Ancora BDG

Easyjet P lc NCB Kbc Group BDG Agennix EQB Capelli CIC Azimut BAK

Finnair POH M ediobanca BAK C hemicals M em(*) Bilfinger Berger EQB Grenkeleasing Ag EQB

Aer Lingus NCB National Bank Of Greece IBG Air Liquide CIC Hochtief EQB Luxempart BDG

A uto mo biles & P arts M em(*) Nordea POH Basf EQB Sonae Industria CBI Financiere De Tubize BDG

Psa Peugeot Citroen CIC Aareal Bank EQB Akzo Nobel SNS Astaldi BAKBolsas Y M ercados Espanoles Sa

BBO

Renault CIC Credem BAK Dsm SNS Grontmij SNS Banca Generali BAK

Faurecia CIC Banesto BBO Henkel EQB Cramo POHFonciere Des 6Eme Et 7Eme Arrondissements De Paris

CIC

M ichelin CIC Ubi Banca BAK Linde EQB Ramirent POH Deutsche Forfait EQB

Plastic Omnium CIC Postbank EQB Solvay BDG Thermador Groupe CIC Hypoport Ag EQB

Valeo CIC Bank Of Cyprus IBG Umicore BDG Vbh Holding EQB

Daimler Ag EQB Boursorama CIC Recticel BDG Vicat CIC

Fiat BAK Atebank IBG Tessenderlo BDG Wavin N.V. SNS

Volkswagen EQB Hellenic Postbank IBG Kemira POH Grupo San Jose BBO

Bmw EQB Garanti Bank IBG Floridienne BDG M aire Tecnimont BAK

Porsche EQB Akbank IBG Holland Colours SNSElectro nic & Electrical Equipment

M em(*)

Continental EQB Yapi Kredi Bank IBG K+S Ag EQB Legrand CIC

Brembo BAK Halkbank IBG Lanxess EQB Rexel CIC

Sogefi BAK Creval BAK Wacker Chemie EQB Schneider Electric Sa CIC

Pirelli & C. BAK Banca Carige BAK Nanogate Ag EQB Ingenico CIC

Nokian Tyres POH B asic R eso urces M em(*) Symrise Ag EQB Nexans CIC

Leoni EQB Acerinox BBO Fuchs Petro lub EQB Barco BDG

Elringklinger EQB Arcelormittal BBO Tikkurila POH Kontron EQB

Stern Groep SNS Stora Enso POHC o nstruct io n & M ateria ls

M em(*) Agfa-Gevaert BDG

Piaggio BAK Thyssenkrupp EQB Eiffage CIC Evs BDG

Landi Renzo BAK Upm-Kymmene POH Vinci CIC Areva CIC

Plastivalo ire CIC Portucel CBI Ciments Français CIC Vacon POH

B anks M em(*) Semapa CBI Imerys CIC Pkc Group POH

Bnp Paribas CIC Ence BBO Lafarge CIC Augusta Technologie EQB

Societe Generale CIC Europac BBO Saint Gobain CIC Gemalto CIC

Dexia BDG Inapa CBI M aisons France Confort CIC Euromicron Ag EQB

Natixis CIC Tubacex BBO Acs BBO Lacie CIC

Ing Group SNS M etsä Board POH Fcc BBO Neways Electronics SNS

Deutsche Bank EQB Outokumpu POH Ferrovial BBO Xeikon Nv SNS

Bbva BBO Rautaruukki POH Holcim Ltd CIC Rcf Group BAK

Banco Santander BBO M ytilineos IBG Titan Cement IBG M obotix Ag EQB

Gowex

F o o d & B everage M em(*) F o o d & D rug R etailers M em(*) Jacquet M etal Service CIC William Hill P lc NCB Delclima BAK

Danone CIC Carrefour CIC H ealthcare M em(*) Sonae Capital CBI Cfao CIC

Ldc CIC Casino Guichard-P CIC Bayer EQB Ladbrokes NCBIndustria l T ranspo rtat io n & M o to rways

M em(*)

Pernod-Ricard CIC Guyenne & Gascogne CIC Cegedim CIC H o useho ld Go o ds M em(*) Norbert Dentressangle CIC

Remy Cointreau CIC Delhaize BDG Novartis CIC Philips Electronics SNS Abertis BBO

Vranken Pommery M onopole CIC Ahold SNS Roche CIC De Longhi BAK Atlantia BAK

Laurent Perrier CIC Rallye CIC Fresenius M edical Care EQB Indesit BAK Brisa CBI

Fleury M ichon CIC Colruyt BDG Fresenius EQB U10 CIC Deutsche Post EQB

Unilever SNS Sonae CBI Celesio EQB Elica BAK Postnl SNS

Bonduelle CIC Sligro SNS M erck EQB Industria l Engineering M em(*) Irish Continental Group NCB

Nestle SNS Kesko POH Ucb BDG Sogeclair CIC Bollore CIC

Heineken SNS M arr BAK Orpea CIC Haulotte Group CIC Gemina BAK

Nutreco SNS Bim IBG Amplifon BAK M anitou CIC Sias BAK

Coca Cola Hellenic IBG Dia BBO Recordati BAK Aixtron EQB Fraport EQB

Csm SNS General Industrials M em(*) M ediq SNS Heidelberger Druck EQB Logwin EQB

Anheuser-Busch Inbev BDG Tessi CIC United Drug NCB Kone POH Hes Beheer SNS

Kerry Group NCB Huhtamäki POH Orion POH M an EQB Adp CIC

Parmalat BAK Neopost CIC Sorin BAK M etso POH Dockwise SNS

Tate & Lyle NCB Bekaert BDG Biomerieux CIC Gea Group EQB Hhla EQB

Ebro Foods BBO Dcc NCB Sanofi CIC Singulus Technologies EQB Caf BBO

Fyffes NCB Aalberts SNS Drägerwerk EQB Zardoya Otis BBO Tnt Express SNS

Dairy Crest Group NCB Azkoyen BBO Rhoen-Klinikum EQB Ima BAK Insurance M em(*)

Campari BAK Prelios BAK Biotest EQB Interpump BAK Axa CIC

Donegal Creameries NCB Frigoglass IBG Faes Farma BBO Sabaf BAK Allianz EQB

Duvel BDG Pöyry POH Natraceutical Sa BBO Exel Industries CIC M unich Re EQB

Glanbia NCB Resilux BDG Grifo ls Sa BBO Ten Cate SNS Aegon SNS

Greencore NCB Analytik Jena EQB Stallergènes CIC Pfeiffer Vacuum EQB Generali BAK

Lotus Bakeries BDG Advanced Vision Technology EQB Orio la-Kd POH Konecranes POH Ageas BDG

Pinguinlutosa BDG Accell Group SNS M edica CIC Wärtsilä POH Zurich Financial Services BAK

Sipef BDG Arcadis SNS Korian CIC Vossloh EQB M edio lanum BAK

Viscofan BBO Kendrion SNS Gerresheimer Ag EQB Kuka EQB Sampo POH

Wessanen SNS Nedap SNS Almirall BBO Danieli BAK M apfre Sa BBO

Ter Beke BDG Vidrala BBO Arseus BDG Gesco EQB Fbd Holdings Plc NCB

Raisio POH Wendel CIC Laboratorios Rovi BBO Gildemeister EQB Fondiaria Sai BAK

C&C Group NCB Saft CIC Ab-Biotics BBO Agta Record CIC M ilano Assicurazioni BAK

Naturex CIC Tkh Group SNS H o tels, T ravel & T o urism M em(*) Biesse BAK Unipo l BAK

Olvi POH Ahlstrom POH Accor CIC Emak BAK Hannover Re EQB

Atria POH Evolis CIC Sodexo CIC Faiveley CIC Delta Lloyd SNS

Baron De Ley BBO Skw Stahl EQB Beneteau CIC Duro Felguera BBO

Baywa EQB Saf-Holland EQB Trigano CIC Krones Ag EQB

Berentzen EQB Derby Cycle EQB Pierre Et Vacances CIC Prima Industrie BAK

Lanson-Bcc CIC M ifa EQB Autogrill BAK Schuler Ag EQB

Greggs NCB General R etailers M em(*) Compagnie Des Alpes CIC Cargotec Corp POH

Hkscan POH Inditex BBO Nh Hoteles BBO Ansaldo Sts BAK

Natra BBO Douglas Holding EQB M elia Hotels International BBO Demag Cranes EQB

Vilmorin CIC D'Ieteren BDG Tui EQB Bauer Ag EQB

Total Produce NCB Fielmann EQB Groupe Partouche CIC M ax Automation Ag EQB

Origin Enterprises NCB M acintosh SNS Intralo t IBG Outotec POH

Ktg Agrar EQB Jumbo IBG Paddy Power NCB Trilogiq CIC

Aryzta NCB Folli Fo llie Group IBG Iberso l CBI Smt Scharf Ag EQB

Campofrio BBO Stockmann POH Opap IBG Prysmian BAK

Acomo SNS Fourlis Holdings IBG I Grandi Viaggi BAK Khd Humboldt Wedag International

EQB

Enervit BAK Beter Bed Holding SNS Lottomatica BAK Fiat Industrial BAK

Gowex

M edia M em(*) Oil Services M em(*) Banimmo BDG Docdata SNS M obistar BDG

Vivendi CIC Vallourec CIC R enewable Energy M em(*) F-Secure POH Telecom Italia BAK

Havas CIC Cgg Veritas CIC Gamesa BBO Osiatis CIC United Internet EQB

Ipsos CIC Technip CIC Sunways EQB Gameloft CIC Teliasonera POH

M 6-M etropo le Television CIC Bourbon CIC Abengoa BBO Gft Technologies EQB Belgacom BDG

Nrj Group CIC Saipem BAK Phoenix So lar EQB Groupe Open CIC Acotel BAK

Lagardere CIC Vopak SNS Solar-Fabrik EQB Guillemot Corporation CIC Jazztel BBO

Publicis CIC Fugro SNS Solarworld EQB I:Fao Ag EQB Telenet Group BDG

Spir Communication CIC Tenaris BAK Biopetro l Industries EQB Ict Automatisering SNSEutelsat Communications Sa

CIC

Teleperformance CIC Tecnicas Reunidas BBO M artifer Sgps Sa CBI I.R.I.S. BDG Gowex BBO

Tf1 CIC P erso nal Go o ds M em(*) Daldrup & Soehne EQB Qurius SNS Turkcell IBG

Hi-M edia CIC Ppr CIC Deutsche Biogas EQB Reply BAK Utilit ies M em(*)

Ubisoft CIC Beiersdorf EQB Solutronic EQB Wincor Nixdorf EQB Enel BAK

Gl Events CIC Hugo Boss EQB Sma Solar Technology EQB Akka Technologies CIC E.On EQB

Wolters Kluwer SNS Tod'S BAK Enel Green Power BAK Tomtom SNS Endesa BBO

M ediaset BAK Adidas EQB Semico nducto rs M em(*) Seven Principles Ag EQB Rwe EQB

Editoriale L'Espresso BAK Luxottica BAK Stmicroelectronics BAK Engineering BAK Veolia Environnement CIC

Rtl Group BDG M edion EQB Asm International SNS Transics BDG Acea BAK

Jcdecaux CIC Puma EQB Asml SNS Rib Software EQB Edp CBI

Prisa BBO Loewe EQB Besi SNS Suppo rt Services M em(*) Fortum POH

Cofina CBI Amer Sports POH M elexis BDG Randstad SNS Gas Natural Fenosa BBO

Rcs M ediagroup BAK Van De Velde BDG Suess M icrotec EQB Imtech SNS Acciona BBO

Impresa CBI Sarantis IBG Roodmicro tec SNS Prosegur BBO Iberdrola BBO

Kinepolis BDG Geox BAKSo ftware & C o mputer Services

M em(*) Brunel SNS Red Electrica De Espana BBO

Reed Elsevier N.V. SNS Basic Net BAK Alten CIC Cpl Resources Plc NCB Enagas BBO

Roularta BDG M arco lin BAK Altran CIC Dpa SNS Fluxys BDG

Telegraaf M edia Groep SNS Safilo BAK Atos Origin CIC Usg People SNS Snam BAK

Ti M edia BAK Zucchi BAK Bull CIC Fiera M ilano BAK Public Power Corp IBG

Seat BAK Gerry Weber EQB Capgemini CIC Lassila & Tikanoja POH Hera BAK

Antena 3Tv BBO Salvatore Ferragamo BAK Cegid CIC Batenburg SNS Sechilienne Sidec CIC

Pages Jaunes CIC R eal Estate M em(*) Sopra Group CIC Tmc Group SNS Iren BAK

M ediaset Espana BBO Corio BDG Steria CIC Edenred CIC Terna BAK

Ad Pepper EQB Atenor BDG Amadeus BBO Bureau Veritas S.A. CIC Elia BDG

Alma M edia POH Befimmo BDG Neurones CIC Ei T o wers B A K Gdf-Suez CIC

Adlpartner CIC Cofinimmo BDG Sii CIC T eleco m Equipment M em(*) Ren CBI

Brill SNSIntervest Offices & Warehouses

BDG Logica SNS Hf Company CIC Edp Renováveis CBI

Caltagirone Editore BAK Intervest Retail BDG Aedian CIC Nokia POH Suez Environnement CIC

Lbi International Nv SNS Leasinvest Real Estate BDG Dassault Systemes CIC Ericsson POH A2A BAK

Sanoma POH Wdp BDG Esi Group CIC Gigaset EQB

Nextradio tv CIC Vastned Retail BDG Indra Sistemas BBO T eleco mmunicat io ns M em(*)

M eetic CIC Retail Estates BDG Tieto POH Bouygues CIC

Nostrum BBO Beni Stabili BAK Novabase Sgps CBI France Telecom CIC

Oil & Gas P ro ducers M em(*) Citycon POH Exact Holding Nv SNS Deutsche Telekom EQB

Total CIC Deutsche Euroshop EQB Ordina SNS Telefonica BBO

Eni BAK Ivg Immobilien Ag EQB Ctac SNS Kpn Telecom SNS

Repsol BBO Sponda POH Realdo lmen BDG Tiscali BAK

Hellenic Petro leum IBG Technopolis POH Unit4 SNS Portugal Telecom CBI

M otor Oil IBG Vib Vermoegen EQB Basware POH Vodafone BAK

M aurel Et Prom CIC Igd BAK Itelligence EQB Elisa POH

Neste Oil POH M ontea BDG Psi EQB Ote IBG

Galp Energia CBI Aedifica BDG Beta Systems Software EQB Zon M ultimedia CBI

Gas P lus BAK Ascencio BDG Integralis Ag EQB Sonaecom CBI

Tupras IBG Realia BBO Cenit EQB Freenet EQB

LEGEND: BAK: Banca Akros; BDG : Bank Degroof; BBO: Bankia Bolsa; CIC: CM CIC Securities; CBI: Caixa- Banco de Investimento; EQB: Equinet bank ;IBG: Investment Bank of Greece,

NCB: NCB Stockbrokers, POH: Pohjola Bank; SNS: SNS Securities as of 30th June 2012

Gowex

List of ESN Analysts (**) Ari Agopyan CIC +33 1 45 96 85 80 [email protected] Jean-Christophe Lefèvre-M oulenq CIC +33 1 45 96 91 04 [email protected]

Edouard Aubery EQB +49 69 5899 7439 [email protected] Dov Levy CIC +33 1 45 96 78 74 [email protected]

Christian Auzanneau CIC +33 4 78 92 01 85 [email protected] Sébastien Liagre CIC +33 1 45 96 90 34 [email protected]

Olivier Bails, CFA CIC +33 1 45 96 78 72 o [email protected] Harald Liberge-Dondoux CIC +33 1 45 96 98 12 [email protected]

Helena Barbosa CBI +351 21 389 6831 [email protected] Konstantinos M anolopoulos IBG +30 210 817 3388 [email protected]

Victor Bareño, CFA SNS +312 0 5508822 [email protected] Sergio Ruiz M artin BBO +34 91 436 7866 [email protected]

Javier Bernat BBO +34 91 436 7816 [email protected] Dario M ichi BAK +39 02 4344 4237 dario [email protected]

Dimitris B irbos IBG +30 210 81 73 392 [email protected] José M ota Freitas, CFA CBI +351 22 607 09 31 [email protected]

Jean-Pascal Brivady CIC +33 4 78 92 02 25 [email protected] Louis Nico lopoulos IBG +30 210 81 73 377 [email protected]

David Cabeza Jareño BBO +34 91 4367818 [email protected] Henri Parkkinen POH +358 10 252 4409 henri.parkkinen@pohjo la.com

Giada Cabrino, CIIA BAK +39 02 4344 4092 [email protected] Adrian Pehl, CFA EQB +49 69 58997 438 [email protected]

Niclas Catani POH +358 10 252 8780 niclas.catani@pohjo la.com Victor Peiro Pérez BBO +34 91 436 7812 [email protected]

Jean-M arie Caucheteux BDG +32 2 287 99 20 [email protected] Francis Prêtre CIC +33 4 78 92 02 30 [email protected]

M arco Cavalleri BAK +39 02 4344 4022 [email protected] Francesco Previtera BAK +39 02 4344 4033 [email protected]

P ierre Chedeville CIC +33 1 45 96 78 71 [email protected] Jari Raisanen POH +358 10 252 4504 [email protected]

Emmanuel Chevalier CIC +33 1 45 96 77 42 [email protected] Hannu Rauhala POH +358 10 252 4392 hannu.rauhala@pohjo la.com

Florent Couvreur CIC +33 1 45 96 77 60 flo [email protected] M atias Rautionmaa POH +358 10 252 4408 [email protected]

Edwin de Jong SNS +312 0 5508569 [email protected] Eric Ravary CIC +33 1 45 96 79 53 [email protected]

Nadeshda Demidova EQB +49 69 58997 434 [email protected] Iñigo Recio Pascual BBO +34 91 436 7814 [email protected]

M artijn den Drijver SNS +312 0 5508636 [email protected] M aria Rivas Rodriguez BBO +34 91 436 7815 [email protected]

Brian Devine NCB +353 1 611 5847 [email protected] André Rodrigues CBI +351 21 389 68 39 [email protected]

Christian Devismes CIC +33 1 45 96 77 63 [email protected] Jean-Luc Romain CIC +33 1 45 96 77 36 [email protected]

Andrea Devita, CFA, BAK +39 02 4344 4031 [email protected] Jochen Rothenbacher, CEFA EQB +49 69 58997 415 [email protected]

Hans D'Haese BDG +32 (0) 2 287 9223 [email protected] Vassilis Roumantzis IBG +30 2108173394 [email protected]

Francesco Di Gregorio BAK +39 02 4344 4217 [email protected] Sonia Ruiz De Garibay BBO +34 91 436 7841 [email protected]

Dries Dury BDG +32 2 287 91 76 [email protected] Antti Saari POH +358 10 252 4359 antti.saari@pohjo la.com

Ingbert Faust, CEFA EQB +49 69 58997 410 [email protected] Paola Saglietti BAK +39 02 4344 4287 [email protected]

Rafael Fernández de Heredia BBO +34 91 436 78 08 [email protected] Francesco Sala BAK +39 02 4344 4240 [email protected]

Stefan Freudenreich, CFA EQB +49 69 58997 437 [email protected] Lemer Salah SNS '+312 0 5508516 [email protected]

Gabriele Gambarova BAK +39 02 43 444 289 [email protected] M ichael Schaefer EQB +49 69 58997 419 [email protected]

Claudio Giacomiello , CFA BAK +39 02 4344 4269 [email protected] Holger Schmidt, CEFA EQB +49 69 58 99 74 32 [email protected]

Karl Goggin NCB 00 353 1611 5849 [email protected] Tim Schuldt, CFA EQB +49 69 5899 7433 [email protected]

Ana Isabel González García CIIA BBO +34 91 436 78 09 [email protected] John Sheehan NCB +353 1 611 5794 [email protected]

Darren Greenfield, CFA NCB +353 1611 5918 [email protected] Pekka Spolander POH +358 10 252 4351 pekka.spo lander@pohjo la.com

Arsène Guekam CIC +33 1 45 96 78 76 [email protected] Gert Steens SNS +312 0 5508639 [email protected]

Bernard Hanssens BDG +32 (0) 2 287 9689 [email protected] Kimmo Stenvall POH +358 10 252 4561 [email protected]

Philipp Häßler, CFA EQB +49 69 58997 414 [email protected] Natalia Svyrou-Svyriadi IBG +30 210 81 73 384 [email protected]

Tom Holmes NCB +353 1 611 5876 [email protected] Annick Thévenon CIC +33 1 45 96 77 38 [email protected]

Emmanuel Janin CIC +33 1 45 96 77 64 [email protected] Luigi Tramontana BAK +39 02 4344 4239 [email protected]

Carlos Jesus CBI +351 21 389 6812 [email protected] Johan van den Hooven SNS +312 0 5508518 [email protected]

Siddy Jobe BDG +32 (0) 2 287 9279 [email protected] Guido Varato jo dos Santos CBI +351213896822 [email protected]

Lillian Katelani IBG +30-210-8173-389 [email protected] Richard Withagen SNS +312 0 5508572 [email protected]

Jean-M ichel Köster CIC +33 1 45 96 77 17 [email protected] Andrea Devita, CFA, BAK +39 02 4344 4031 [email protected]

M arc Leemans, CFA BDG +32 (0) 2 287 9361 [email protected] Jean-M ichel Köster CIC +33 1 45 96 77 17 [email protected]

(**) excluding: strategists, macroeconomists, heads of research not covering specific stocks, credit analysts, technical analysts

Gowex

ESN Recommendation System The ESN Recommendation System is Absolute. It means that each stock is rated on the basis of a total return, measured by the upside potential (including dividends and capital reimbursement) over a 12 month time horizon.

The ESN spectrum of recommendations (or ratings) for each stock comprises 5 categories: Buy, Accumulate (or Add), Hold, Reduce and Sell (in short: B, A, H, R, S).

Furthermore, in specific cases and for a limited period of time, the analysts are allowed to rate the stocks as Rating Suspended (RS) or Not Rated (NR), as explained below.

Meaning of each recommendation or rating:

Buy: the stock is expected to generate total return of over 20% during the next 12 months time horizon

Accumulate: the stock is expected to generate total return of 10% to 20% during the next 12 months time horizon

Hold: the stock is expected to generate total return of 0% to 10% during the next 12 months time horizon.

Reduce: the stock is expected to generate total return of 0% to -10% during the next 12 months time horizon

Sell: the stock is expected to generate total return under -10% during the next 12 months time horizon

Rating Suspended: the rating is suspended due to a capital operation (take-over bid, SPO, …) where the issuer of the document (a partner of ESN) or a related party of the issuer is or could be involved or to a change of analyst covering the stock

Not Rated: there is no rating for a company being floated (IPO) by the issuer of the document (a partner of ESN) or a related party of the issuer

Bankia Bolsa Ratings Breakdown

History of ESN Recommendation System

Since 18 October 2004, the Members of ESN are using an Absolute Recommendation System (before was a Relative Rec. System) to rate any single stock under coverage.

Since 4 August 2008, the ESN Rec. System has been amended as follow.

Time horizon changed to 12 months (it was 6 months)

Recommendations Total Return Range changed as below:

BEFORE

-15% 0% 5% 15%

SELL REDUCE HOLD ACCUMULATE BUY

TODAY

-10% 0% 10% 20%


BEFORE

-15% 0% 5% 15%


BEFORE

-15% 0% 5% 15%


TODAY

-10% 0% 10% 20%


TODAY

-10% 0% 10% 20%


Gowex

Recommendation history for GOWEX

Date Recommendation Target price Price at change date20-Jul-12 Buy 10.70 6.0103-Oct-11 Buy 6.80 4.4010-May-10 Buy 7.00 3.57

Source: Factset & ESN, price data adjusted for stock splits. This chart shows Bankia Bolsa continuing coverage of this stock; the current analyst may or may not have covered it over the entire period. Current analyst: David Cabeza Jareño (since 26/03/2010)

3.5

4.0

4.5

5.0

5.5

6.0

6.5

7.0

7.5

Jul 11 Aug 11 Sep 11 Oct 11 Nov 11 Dec 11 Jan 12 Feb 12 Mar 12 Apr 12 May 12 Jun 12 Jul 12

Buy Accumulate Hold Reduce Sell Not rated

Price history Target price history

Information regarding Market Abuse and Conflicts on Interests and recommendation history available in our web page: www.bankiabolsa.es and our offices. The information and opinions contained in this document have been compiled by Bankia Bolsa S.V. S.A., from sources believed to be reliable. This document is not intended to be an offer, or a solicitation to buy or sell relevant securities. Bankia Bolsa S.V. S.A., will not take any responsibility whatsoever for losses which may derive from use of the present document or its contents, Bankia Bolsa S.V. S.A., can occasionally have positions in some of the securities mentioned in this report, through its trading portfolio or negotiation. Additionally, there can exist a commercial relation between Bankia Bolsa S.V. S.A., Bankia and the mentioned companies.

Disclaimer: These reports have been prepared and issued by the Members of European Securities Network LLP (‘ESN’). ESN, its Members and their affiliates (and any director, officer or employee thereof), are neither liable for the proper and complete transmission of these reports nor for any delay in their receipt. Any unauthorised use, disclosure, copying, distribution, or taking of any action in reliance on these reports is strictly prohibited. The views and expressions in the reports are expressions of opinion and are given in good faith, but are subject to change without notice. These reports may not be reproduced in whole or in part or passed to third parties without permission. The information herein was obtained from various sources. ESN, its Members and their affiliates (and any director, officer or employee thereof) do not guarantee their accuracy or completeness, and neither ESN, nor its Members, nor its Members’ affiliates (nor any director, officer or employee thereof) shall be liable in respect of any errors or omissions or for any losses or consequential losses arising from such errors or omissions. Neither the information contained in these reports nor any opinion expressed constitutes an offer, or an invitation to make an offer, to buy or sell any securities or any options, futures or other derivatives related to such securities (‘related investments’). These reports are prepared for the clients of the Members of ESN only. They do not have regard to the specific investment objectives, financial situation and the particular needs of any specific person who may receive any of these reports. Investors should seek financial advice regarding the appropriateness of investing in any securities or investment strategies discussed or recommended in these reports and should understand that statements regarding future prospects may not be realised. Investors should note that income from such securities, if any, may fluctuate and that each security’s price or value may rise or fall. Accordingly, investors may receive back less than originally invested. Past performance is not necessarily a guide to future performance. Foreign currency rates of exchange may adversely affect the value, price or income of any security or related investment mentioned in these reports. In addition, investors in securities such as ADRs, whose value are influenced by the currency of the underlying security, effectively assume currency risk. ESN, its Members and their affiliates may submit a pre-publication draft (without mentioning neither the recommendation nor the target price/fair value) of its reports for review to the Investor Relations Department of the issuer forming the subject of the report, solely for the purpose of correcting any inadvertent material inaccuracies. Like all members employees, analysts receive compensation that is impacted by overall firm profitability For further details about the specific risks of the company and about the valuation methods used to determine the price targets included in this report/note, please refer to the latest relevant published research on single stock or contact the analyst named on the front of the report/note. Research is available through your sales representative. ESN will provide periodic updates on companies or sectors based on company-specific developments or announcements, market conditions or any other publicly available information. Unless agreed in writing with an ESN Member, this research is intended solely for internal use by the recipient. Neither this document nor any copy of it may be taken or transmitted into Australia, Canada or Japan or distributed, directly or indirectly, in Australia, Canada or Japan or to any resident thereof. This document is for distribution in the U.K. Only to persons who have professional experience in matters relating to investments and fall within article 19(5) of the financial services and markets act 2000 (financial promotion) order 2005 (the “order”) or (ii) are persons falling within article 49(2)(a) to (d) of the order, namely high net worth companies, unincorporated associations etc (all such persons together being referred to as “relevant persons”). This document must not be acted on or relied upon by persons who are not relevant persons. Any investment or investment activity to which this document relates is available only to relevant persons and will be engaged in only with relevant persons. The distribution of this document in other jurisdictions or to residents of other jurisdictions may also be restricted by law, and persons into whose possession this document comes should inform themselves about, and observe, any such restrictions. By accepting this report you agree to be bound by the foregoing instructions. You shall indemnify ESN, its Members and their affiliates (and any director, officer or employee thereof) against any damages, claims, losses, and detriments resulting from or in connection with the unauthorized use of this document. For disclosure upon “conflicts of interest” on the companies under coverage by all the ESN Members and on each “company recommendation history”, please visit the ESN website (www.esnpartnership.eu) For additional information and individual disclaimer please refer to www.esnpartnership.eu and to each ESN Member websites:

www.bancaakros.it regulated by the CONSOB - Commissione Nazionale per le Società e la Borsa

www.bankiabolsa.es regulated by CNMV - Comisión Nacional del Mercado de Valores

www.caixabi.pt regulated by the CMVM - Comissão do Mercado de Valores Mobiliários

www.cmcics.com regulated by the AMF - Autorité des marchés financiers

www.degroof.be regulated by the FSMA - Financial Services and Markets Authority

www.equinet-ag.de regulated by the BaFin - Bundesanstalt für Finanzdienstleistungsaufsicht

www.ibg.gr regulated by the HCMC - Hellenic Capital Market Commission

www.ncb.ie regulated by the Central Bank of Ireland

www.pohjola.com regulated by the Financial Supervision Authority

www.snssecurities.nl regulated by the AFM - Autoriteit Financiële Markten

Gowex Spain Telecommunications

Members of ESN (European Securities Network LLP)

Caixa-Banco de Investimento Rua Barata Salgueiro, 33-5 1269-050 Lisboa Portugal Phone: +351 21 389 68 00 Fax: +351 21 389 68 98

SNS Securities N.V.Nieuwezijds Voorburgwal 162 P.O.Box 235 1000 AE Amsterdam The Netherlands Phone: +31 20 550 8500 Fax: +31 20 626 8064

NCB Stockbrokers Ltd. 3 George Dock, Dublin 1 Ireland Phone: +353 1 611 5611 Fax: +353 1 611 5781

Bank Degroof Rue de I’Industrie 44 1040 Brussels Belgium Phone: +32 2 287 91 16 Fax: +32 2 231 09 04

Equinet Bank AG Gräfstraße 97 60487 Frankfurt am Main Germany Phone:+49 69 – 58997 – 410 Fax:+49 69 – 58997 – 299

Pohjola Bank plcP.O.Box 308 FI- 00013 Pohjola Finland Phone: +358 10 252 011 Fax: +358 10 252 2703

CM - CIC Securities 6, avenue de Provence 75441 Paris Cedex 09 France Phone: +33 1 4596 7940 Fax: +33 1 4596 7748

Bankia Bolsa Serrano, 39 28001 Madrid Spain Phone: +34 91 436 7813 Fax: +34 91 577 3770

Banca Akros S.p.A. Viale Eginardo, 29 20149 Milano Italy Phone: +39 02 43 444 389 Fax: +39 02 43 444 302

Investment Bank of Greece 24B, Kifisias Avenue 151 25 Marousi Greece Phone: +30 210 81 73 000 Fax: +30 210 68 96 325

gowex coverage analysis by bankia - july 2012

Economy & Finance