Theme of the Day: Swiss Re's Insurance Market Review 2017 and Outlook 2018/19 Bond, Money and Currency Markets: Two Credit Rating Agencies to Revise Bulgarian Rating This Friday Croatian Equity Market: AD Plastik Concludes New Contract for Edison and Renaul Clio Projects Regional Equity Market: Monbat's Jan-Oct 2017 Cons Sales up by 29% YoY Global Equity Market: Major Indexes all Close at Record High Technical Perspective - Region: RIVPRA ZA – SMAVG200 Technical Perspective - Global: FTSE100 – SMAVG200 IC Daily Highlights [CROATIA] AD Plastik signs two new deals worth EUR 87.1m [CROATIA] Dalekovod signs EUR 50m worth deal in Norway [CROATIA] Industrial turnover (seasonally and working-day adjusted) up by 2.3% YoY in Sep 2017 [SLOVENIA] Telekom Slovenije published financial calendar for 2018 [SLOVENIA] Gorenje appoints advisors for its search of a strategic partner [SLOVENIA] Intereuropa publishes Financial calendar link [ROMANIA] Romania budget deficit widened to RON 6.6bn or 0.79% of GDP in Jan-Oct 2017 (from deficit of BGN 1.3bn in Jan-Oct 2016) [BULGARIA] Holding Varna 9M 2017 sales up by 24% to BGN 49.5m, net profit up by 65% to BGN 5.4m [BULGARIA] Monbat Jan-Oct 2017 cons sales up by 29% to BGN 266.3m, EBT increased by 21% to BGN 29.8m (data include a positive BGN 2.7 net financial impact of the acquisition of EAS Batteries and MNP) IC Daily Newsflash InterCapital Contacts Important: Please read the references at the end of this report to possible conflicts of interest and disclaimers/disclosures IC MARKET ESPRESSO InterCapital Research 29 November 2017 Quote of the Day: „During the first period of a man’s life, the greatest danger is not to take the risk.” Soren Kierkegaard Ivan Dražetić Money Market and Fixed Income, Dealer Phone: + 385 (0)1 4825 852 E-mail: [email protected]Kristina Pukšec Head of Fixed Income and Money Market Phone: + 385 (0)1 4825 854 E-mail: [email protected]IC.trader InterCapital.hr 1 Đivo Pulitika Analyst Phone: + 385 (0)1 4825 867 E-mail: [email protected]Croatia I Slovenia I Romania I Bulgaria I Serbia Margareta Maresić Junior Analyst Phone: + 385 (0)1 4825 857 E-mail: [email protected]Irena Ivanković Head of Institutional Desk Phone: + 385 (0)1 4825 891 E-mail: [email protected]Danijel Delač Board Member in charge of Brokerage Phone: + 385 (0)1 4825 894 E-mail: [email protected]Filip Majić Broker Phone: + 385 (0)1 4825 896 E-mail: [email protected]Marin Onorato Money Market and Fixed Income, Dealer Phone: + 385 (0)1 4343 180 E-mail: [email protected]Marcel Dimač Junior Analyst Phone: + 385 (0)1 4825 858 E-mail: [email protected]Date Announcement 30-Nov-17 Unior - 9M 2017 results 13-Dec-17 CICG - Business plan for 2018 15-Dec-17 Petrol - Business plan for 2018 11-Jan-18 Gorenje - Business plan for 2018 11-Jan-18 Gorenje - Estimated FY 2017 results 21-Feb-18 OMV Petrom - Prelim. FY 2017 results 23-Feb-18 TPNG - Q4 2017 results 1-Mar-18 TLSG - Prelim. FY 2017 results 5-Mar-18 Triglav - Prelim. FY 2017 results Upcoming Announcements Company Investment Thesis VALAMAR RIVIERA One of the largest hospitality groups Favourable accommodation positioning Strong growth potential PETROL GROUP Stable cash flow High level of debt Strong retail player ADRIS GROUP Strategic shift Strong cash position Growth potential in insurance FONDUL PROPR. Managed by Franklin Templeton Significant discount to NAV Possible privatizations of portfolio companies Top Regional Investment Stories 80 90 100 110 120 130 140 29-Nov-16 28-Feb-17 31-May-17 31-Aug-17 CRO Index SBITOP Index BELEX15 Index BET Index SOFIX Index Source: Bloomberg Regional indices TTM
Transcript
Theme of the Day:
Swiss Re's Insurance Market Review 2017 and Outlook 2018/19 Bond, Money and Currency Markets:
Two Credit Rating Agencies to Revise Bulgarian Rating This FridayCroatian Equity Market:
AD Plastik Concludes New Contract for Edison and Renaul Clio ProjectsRegional Equity Market:
Monbat's Jan-Oct 2017 Cons Sales up by 29% YoYGlobal Equity Market:
Major Indexes all Close at Record High Technical Perspective - Region:
RIVPRA ZA – SMAVG200 Technical Perspective - Global:
FTSE100 – SMAVG200
IC Daily Highlights
[CROATIA] AD Plastik signs two new deals worth EUR 87.1m [CROATIA] Dalekovod signs EUR 50m worth deal in Norway[CROATIA] Industrial turnover (seasonally and working-day adjusted) up by 2.3% YoY in Sep 2017[SLOVENIA] Telekom Slovenije published financial calendar for 2018[SLOVENIA] Gorenje appoints advisors for its search of a strategic partner[SLOVENIA] Intereuropa publishes Financial calendar link[ROMANIA] Romania budget deficit widened to RON 6.6bn or 0.79% of GDP in Jan-Oct 2017 (from deficit of BGN 1.3bn in Jan-Oct 2016)[BULGARIA] Holding Varna 9M 2017 sales up by 24% to BGN 49.5m, net profit up by 65% to BGN 5.4m[BULGARIA] Monbat Jan-Oct 2017 cons sales up by 29% to BGN 266.3m, EBT increased by 21% to BGN 29.8m (data include a positive BGN 2.7 net financial impact of the acquisition of EAS Batteries and MNP)
IC Daily Newsflash
InterCapital Contacts
Important: Please read the references at the end of this report to possible conflicts of interest and disclaimers/disclosures
IC MARKET ESPRESSOInterCapital Research
29 November 2017
Quote of the Day:„During the first period of a man’s life, the greatest
danger is not to take the risk.”
Soren Kierkegaard
Ivan DražetićMoney Market and Fixed Income, DealerPhone: + 385 (0)1 4825 852E-mail: [email protected]
Kristina PukšecHead of Fixed Income and Money MarketPhone: + 385 (0)1 4825 854E-mail: [email protected]
Important: Please read the references at the end of this report to possible conflicts of interest and disclaimers/disclosures 2 IC.traderInterCapital.hr
Swiss Re's Insurance Market Review 2017 and Outlook 2018/19
Theme of the Day
Swiss Re published an interesting overview of global developments in the insurance business in 2017 as well as outlook for 2018/19, so we decided to highlight thekey findings and information.
Global growth prospects continued to improve during 2017 and a recession next year is unlikely. Even so, only moderate growth is expected this year. Emergingmarkets are performing better, especially in Asia (6%+ growth), but growth in commodity exporting regions is also accelerating as energy and metal prices rise.Inflation is currently fairly subdued globally, but with low unemployment rates in some countries (US, UK, Germany), the risk to casualty lines from inflation needs tobe monitored.
The multitude of large natural CAT events – Harvey, Irma, Maria, earthquakes in Mexico, wildfires in California – in the second half of the year have drained capitalout of the re/insurance P&C sector (non-life). Price increases in loss-affected segments are already happening and could be substantial. Global non-life insurancepremiums have grown by about 3% this year, and growth is forecast to remain steady at around 3% in 2018 and 2019 but could be stronger depending on the afore-mentioned price increases. Assuming 2018 is an average CAT loss year, profits will improve.
Global life insurance premiums are estimated to have grown by about 3% in 2017 (up from 2% in 2016), supported by robust performance of savings products inemerging markets, particularly in Asia. Premiums are forecast to increase by close to 4% annually over the next two years.
Non-life reinsurers´ premiums will grow slightly less than, and profits slightly more than those of primary non-life insurers, but follow the same pattern. Continuedrecovery in primary life insurance should support growth in life reinsurance revenues, including a recovery in traditional renewable business. Premium growth willnonetheless likely remain modest, especially in the large advanced markets.
Profitability remains challenging given the global low interest rate environment, which is putting pressure on investment returns and existing long-duration booksof business. Namely, insurers' investment income has been weak for a long while running given the ultralow interest rate environment over recent years, and willnot recover soon. As interest rates gradually rise, investment income will grow only slowly, and with a lag to rising rates. As such, while profitability in non-lifeinsurance is expected to strengthen in 2018 and 2019, the improvement will be modest. Life ROE will remain at around 7-8%.
-4%
-2%
0%
2%
4%
6%
8%
10%
World Advanced
markets
Emerging
markets
2016 2017E 2018F 2019F
Non-life insurance premium growth by region, 2016 to 2019F
Non-life (left) and life (right) reinsurance premium growth by region, 2016 to 2019F
-2%
0%
2%
4%
6%
8%
10%
World North
America
Western
Europe
Developed
Asia-Pacific
Emerging
markets
CEE
2016 2017E 2018F 2019F
Life insurance premium growth by region, 2016 to 2019F
-5%
0%
5%
10%
15%
20%
World North
America
Western
Europe
Developed
Asia-Pacific
Emerging
markets
CEE
2016 2017E 2018F 2019F
-5%
0%
5%
10%
15%
20%
World Advanced
markets
Emerging
markets
2016 2017E 2018F 2019F
Global non-life insurance premiums have grown by about 3% this year, and growth is forecast to remain steady at around 3% in 2018 and 2019 .
Global life insurance premiums have grown by about 3% in 2017 and are forecast to increase by close to 4% annually over the next two years.
Two Credit Rating Agencies to Revise Bulgarian Rating This Friday
Bond, money and currency markets
IC MARKET ESPRESSO
InterCapital domestic bond quotes Bloomberg: INKA5 <GO>BBG User: INTERCAPITAL FI
Important: Please read the references at the end of this report to possible conflicts of interest and disclaimers/disclosures 3 IC.traderInterCapital.hr
S&P (‘BB+’) and Fitch Ratings (‘BBB-‘) are scheduled in the end of this week to maintainits regular revision of Bulgarian credit rating. Considering positive outlook within bothhouses and favourable macroeconomic trends it will be interesting to read whatagencies will say on Friday but for now let’s see what they said on the last revision andwhat happened between two revisions.
Six months ago, on June 2nd, Fitch Ratings revised Bulgaria’s outlook to positive whichwas driven by prolonged deleveraging and positive current account trends that helpedBulgaria to become net external creditor in 2016. Also, uplift was justified by publicfinances that compare favourably with ‘BBB’ peers as deficit as a share of GDP wasexpected at 0.6% in 2017 while being at 2.4% among ‘BBB’ countries. On the same day,S&P also lifted Bulgarian outlook to positive due to agencies’ expectations thatBulgaria’s fiscal and external metrics will continue to improve in the following periodwhile solid economic growth could accelerate as domestic demand is on the right foot.In the end of the statement S&P’s analysts say that positive outlook reflects their viewthat there are at least 33% chances of an upgrade over the next 12 months in casepositive signs continue.
Looking at the high frequency data published after June 2nd, it is obvious thatfavourable continued and even accelerated. Namely, Bulgarian budget balance by GFSstandards looks unreal as in the first nine months of 2017 it stood at surplus of 2.5% ofGDP while in the end of last year it stood at 1.6% which translated in ESA 2010 was0.00%. In the end of the third quarter, CA surplus was at 5.2% of GDP driven by strongexports of services. In H1 GDP grew by 3.9% and is expected to overjump it in H2. In theend, we shouldn’t forget markets expectations. On the chart submitted below you couldsee risk premium on EUR denominated Eurobonds maturing in 2027 and Bulgarian riskpremium which halved in 2017 and is now close to Poland which is rated three notcheshigher.
[Bulgaria – Monbat – 5MB BU] In October, 2017 the companies in the economic groupof Monbat AD have generated consolidated net sales revenues in the amount of BGN34.4m, an increase by 27.8 % compared to the consolidated net sales revenuesgenerated in October, 2016. In the first ten months of 2017, Monbat Group generatedconsolidated net sales revenues in the amount of BGN 266.3m, an increase by 29.1 %YoY. The summarized data for the period show that the Group has reached EBITDA in theamount of BGN 43.5m, up by 15.7% YoY. Finally, the consolidated EBT increased by 21%YoY to the amount of amounted to BGN 29.8m Note that the data include the financialimpact of the acquisition of EAS Batteries and MNP. The acquisition of these twocompanies was treated in the consolidated statements of Monbat as of 30 September2017. The effect of was BGN 3.9m increase and BGN 1.2m negative impact on EBITDA.This gives a net effect of BGN 2.7m on EBITDA end EBT level.[Bulgaria – Holding Varna – 5V2 BU] Holding Varna consolidated sales revenue rose toBGN 49.5m in the first nine months of the year, an increase of 24% YoY. Finanical incomealso increased, ending at BGN 6.9m, up by 17% YoY. As operating and financial expensesincreased to a lower extent, net profit ended 65% higher, ultimately reaching BGN 5.4m.Holding Varna’s portfolio includes companies in the tourism, media, real estate, andfinancial sectors.
Monbat's Jan-Oct 2017 Cons Sales up by 29% YoY
Regional Equity Market
IC MARKET ESPRESSO
Important: Please read the references at the end of this report to possible conflicts of interest and disclaimers/disclosures 4
In a filing published on Zagreb Stock Exchange, AD Plastik has notified investors on twonew deals. The local plastic car parts manufacturer arranged the production of frontbumpers with components and interior mudguard linings for the second phase of theproject Edison. The second deal was signed for the production of bumpers, panels andsome other car parts for Renault Clio.
The production for the Edison project is scheduled for the second half of 2019 with theestimated duration of four years, whereas the production for Renault Clio will begin inmid-2019 and should last for seven years. The expected revenue from these two dealsduring their estimated duration amounts to EUR 87.1m. If we split this amount on 7years, we get EUR 12.4m per year, or about 10% of sales realized in 2016.
On the back of this positive news, the price of AD Plastik’s share closed yesterday ingreen (+0.4%) at HRK 170.47. The share is up by 24.3% from the beginning of the year.
AD Plastik Concludes New Contract for Edison and Renault Clio Projects
Croatian Equity Market
Index fundamentals
Daily market snapshot
Volume: EUR 0.65m
* ARNTRA ZA is excluded from CROBEX multiples and ratios due to large one-off event / Market snapshot includes only main index components
IC.traderInterCapital.hr
90
95
100
105
110
115
120
125
130
29-Nov-16 28-Feb-17 31-May-17 31-Aug-17
SBITOP Index
Source: Bloomberg
80
85
90
95
100
105
110
115
120
125
130
29-Nov-16 28-Feb-17 31-May-17 31-Aug-17
BELEX15 Index
BELEXLIN Index
Source: Bloomberg
80
90
100
110
120
130
140
150
160
29-Nov-16 28-Feb-17 31-May-17 31-Aug-17
SOFIX Index
BGBX40 Index
Source: Bloomberg
Fondul Proprietatea 2,45 KD Group 9,43% Sojaprotein -7,13%
Electrica 0,90 Varteks 5,62% Belje -5,12%
Banca Transilvania 0,77 Uljanik Plovidba 5,47% Luka Ploce -3,62%
NIS 0,61 Duro Dakovic 2,45% Pozavarovalnica Sava -1,56%
Romgaz 0,30 Dalekovod 2,45% Chimimport -0,99%
Krka 0,24 CB First Investment Bank 1,85% Industrial Holding Bulgaria -0,74%
Transgaz 0,21 CB Central Cooperative Bank 1,51% Krka -0,61%
Stocks finished at record highs on Tuesday as the Senate took a step toward passing abill aimed at reforming the U.S. tax code.
The Dow Jones industrial average closed 255.93 points higher at 23,836.71, withJPMorgan Chase leading advancers. The S&P 500 jumped 1% to 2,627.04 as financialsclimbed 2.6%; the sector also had its best session since March 1. The Nasdaq compositegained 0.5%, closing at 6,912.36.
The major indexes briefly pared gains after North Korea fired a missile that landed in thewaters off the coast of Japan. Tuesday marked the first time since mid-September thatNorth Korea launched a missile.
Major Indexes all Close at Record High
Global Equity Market
IC MARKET ESPRESSO
Important: Please read the references at the end of this report to possible conflicts of interest and disclaimers/disclosures 5 IC.traderInterCapital.hr
STOXX EUROPE 600 SECTOR PERFORMANCE % Day % YTD % 1M % 3M % 6M % 1Y % Day % YTD % 1M % 3M % 6M % 1Y
Today we are looking @ daily RIVPRA graph. For a last few days it is testing support thatprovides SMAVG200. Next support provides low from 23/06/2017 @ 42,65. Firstresistance provides high from 07/02/2017 @ 44,25 and SMAVG50+100. RSI is below50 points.
RIVPRA ZA – SMAVG200 (daily chart)
Technical Perspective - Region
Today we are looking @ daily FTSE100 index. For a last few days it is testing supportthat provides SMAVG200. Next support provides high from 13/02/2017 @ 7300. Firstresistance provides SMAVG50+100 and high from 12/05/2017 @ 7435. RSI breachedred downward trend line and is below 50 points.
FTSE100 – SMAVG200 (daily chart)
Technical Perspective - Global
We would be sellers in case SMAVG200 gets breached
Trading Suggestion:
We would be sellers in case SMAVG200 gets breached.
Trading Suggestion:
Technical Targets:7599… high 2017
7533… high 16/05/20177451… SMAVG50
7423… SMAVG1007416… last
7396… SMAVG2007096… low 20/04/2017
IC MARKET ESPRESSO
Important: Please read the references at the end of this report to possible conflicts of interest and disclaimers/disclosures 6 IC.traderInterCapital.hr
Regional Equity Market; Fundamentals of Selected Companies
IC MARKET ESPRESSO
Important: Please read the references at the end of this report to possible conflicts of interest and disclaimers/disclosures 7 IC.traderInterCapital.hr
Regional Equity Market; Fundamentals of Selected Companies
IC MARKET ESPRESSO
Important: Please read the references at the end of this report to possible conflicts of interest and disclaimers/disclosures 9 IC.traderInterCapital.hr
Important: Please read the references at the end of this report to possible conflicts of interest and disclaimers/disclosures 10 IC.traderInterCapital.hr
Important: Please read the references at the end of this report to possible conflicts of interest and disclaimers/disclosures 11
InterCapital is an independent investment company established in 2001, and is one of the leading companies fortrading of financial instruments, asset management and investment banking services in the Republic of Croatia.Our mission is to further advance the ongoing development of our domestic capital markets through the introduction and implementation of innovative financialproducts, know-how and sophisticated international standards in financial mediation services. In doing so, we aim to provide superior returns to our diverse customerbase. Experience, knowledge, dedication, reputation and ethical conduct are at the heart of our business. These characteristics are uncompromisingly embedded in eachof our employees, ultimately guaranteeing professional quality and dedication in our approach to clients, our product portfolio and overall mission achievement.The InterCapital Group is headquartered in Zagreb and employs more than 40 individuals.
Our services:
BROKERAGE SERVICES (tel: + 385 1 48 25 896, mail: [email protected])We specialize in offering of full service brokerage services to foreign and domestic institutional clients & HNWI with expert knowledge in trading with financialinstruments who desire to trade in significant volumes. Becoming our client enables you to trade securities listed on domestic stock exchanges, as well as securities andfinancial derivatives traded in global markets. Our online trading platform, IC.trader, enables fast and direct access to domestic and international markets and offers realtime monitoring and trading with financial instruments on both the Zagreb Stock Exchange and the majority of stock exchanges worldwide.
FIXED INCOME DEALING (tel: + 385 1 48 25 854, mail: [email protected])InterCapital Securities is the top fixed income trader according to bond trading volume on Zagreb Stock Exchange fourteen years in a row. Services offered by thecompany include market making on Croatian government bonds, as well as trading Croatian, Serbian, Slovenian, Romanian and Bulgarian fixed income instruments. Ourspecialties also encompass research services covering MM and FI markets (both domestic and international), providing expert opinions and developing trading ideas inclose cooperation with our clients.
ASSET MANAGEMENT (tel: + 385 1 48 25 868, mail: [email protected])Extensive investment experience in the regional and global financial markets has enabled us to develop most advanced tailor-made asset management solutions. Ourreputable market position has been built on the foundation of long-term and personal relationships with every single client. Whether we are dealing with wealthyindividuals, corporations or institutional investors, our approach to managing their assets is rooted in thorough understanding of their unique needs and constraints. Foreach one of those clients we offer a broad range of products, including both UCITS and alternative funds as well as discretionary asset management.
INVESTMENT BANKING (tel: + 385 1 48 25 866, mail: [email protected])Investment Banking helps companies improve their competitiveness by defining and implementing optimal financial strategies, which is a prerequisite for survival intoday’s dynamic business environment. As a highly specialized segment of the financial services industry, investment banking requires expertise of local financialmarkets, knowledge of specific needs facing companies and capabilities in structuring and executing optimal solution(s) with the end goal of creating new value for theclient. Our investment banking activities are divided into two streams:
financing through the capital markets (debt issues (commercial papers & bonds) and equity issues (public and private equity offerings), as well as official marketlistings
financial advisory services (mergers and acquisitions, financial analysis and company valuations, due diligence services, business restructurings and spin-offs,MBO and ESOP programs)
INSURANCE BROKERAGE (tel: + 385 1 54 96 166, mail: [email protected])InterCapital Risk is specialized in obtaining advanced insurance and reinsurance solutions not only on domestic insurance market but also on established markets likeLloyd’s of London, Bermuda etc. Managing operational risks and insurance brokerage is our core business, while courtesy, innovation and professionalism are the driversof our business philosophy. Although InterCapital Risk is a new insurance brokerage and risk management operation on the market, its employees are proven specialistsin this business with considerable success records.
CUSTODY SERVICE (tel: + 385 1 48 25 844/845, mail: [email protected])With the continued monitoring of our clients’ needs and investing in the development of new and increasing the quality of existing services, we have developed asecurities custody service. InterCapital offering its clients trading on the domestic, as well as on foreign stock exchanges, enables to simultaneously perform followingservices:
payment and settlement of securities in the world’s leading markets; storage and safekeeping of securities in various global depository; managing investment positions with maximum professionalism and discretion; continuous reporting to clients; collection of inflows generated from interests, dividends and other income relating to assets in the custody account and monitoring of other corporate actions.
These services can be achieved with the minimal additional time and administration, as well as maximum flexibility and support ofour professional employees. Software support is achieved through the incorporation of custodial services through IC.trader trading platform.
Notice to Investors and Explanation of Investment Recommendations
Disclaimer
IC MARKET ESPRESSO
„IC Market Espresso“ is a Recommendation that proposes investment strategy in terms of one or more financial instruments or the Issuer offinancial instruments, including opinions about current or future value and price of these instruments. Market Espresso is published every workday.The first issue was published on 2 January 2008, while the technical analysis of Croatian equities and index was introduced on 1 September 2008.Information in this report is intended for informative purposes only and does not represent the solicitation to buy or sell any financial instruments orparticipate in any particular trading strategy.
Market Espresso is based on publicly available information (Stock Exchanges, Bloomberg, financial reports of Issuers, companies' management,business and other websites). Although we believe our information and price quotes to be reasonably reliable, we do no guarantee their accuracy orcompleteness. In addition, the price or value of financial instruments described in this report may fluctuate and realize gains or losses. InterCapitalSecurities Ltd. does not assume responsibility for any damage caused by the use of published information and projections contained in this reportOpinions in this report constitute the current judgement of the author/s as of date of this report and are subject to change without notice.
Recommendations in IC Market Espresso are based on fundamental analysis and instruments and rules of technical analysis. Technical analysis is avaluation method of financial instruments made by analysing statistically generated market activities such as historical prices and trading volumes.Technical analysis usually uses various types of graphical displays, on the basis of which special techniques try to predict future trends. The maintask of technical analysis is to attempt to identify historical price movements and accordingly identify possible future trends.
Fundamental analysis is a financial analysis of industries and companies based on factors such as sales, assets, profit, products or services,markets and management. In conducting fundamental analysis, InterCapital Securities Ltd. uses various methods to determine a value of the Issuer.Among the rest, analysis of comparable companies, discounted cash flow and other methods are being used. Although InterCapital Securities Ltd.uses models generally accepted in the financial industry and theory, the results of these models depend on plans and information obtained from theIssuer as well as subjective opinions of analysts.
The authors of technical and fundamental analyses in IC Market Espresso are Đivo Pulitika, Margareta Maresić and Marcel Dimač. They areemployees of InterCapital Securities Ltd. registered in Zagreb, Masarykova 1. InterCapital Securities Ltd. is supervised by Croatian Financial ServicesSupervisory Agency (HANFA).
Fundamental rating values of an Issuer are given according to the following scale:
•Strong buy - equities with expected absolute revenue of more than 20% in the monitored time period•Buy - equities with expected absolute return of 10%-20% in the monitored time period•Hold - equities with expected absolute return of -10% to 10% in the monitored time period•Sell - equities with expected absolute return below -10% in the monitored time period•Under review - an issuer might be placed Under Review due to new information which is not included in the analysis.
Up to August 14, 2014 the Hold recommendation was used for equities with an expected return of 0% to 10%, while the Sell recommendation wasused for equities with an expected negative absolute return. Criteria for other recommendation remained unchanged.
InterCapital Securities Ltd. is in possession of the following equities:
Analysts engaged in creation of IC Market Espresso and/or related persons are not in possession of significant financial interests in one or morefinancial instruments which are subject to recommendation or significant conflicts of interest in relation to any of the issuers in accordance withArticle 475 of the Capital Market Act.
The company InterCapital Securities Ltd. acts as a market maker for ADPLRA ZA, PODRRA ZA, HTRA ZA, KOEIRA ZA, ATGRRA ZA, ARNTRA ZA andRIVPRA ZA.
Issuer recommendations stated in IC Daily - Market Espresso are not declared to the Issuer before they are published.
Any investments indicated in the report constitute risk, are not readily available in all jurisdictions, can be illiquid and may not be suitable for allinvestors. Value or income realized on any one investment mentioned in the report may vary. If a financial instrument is denominated in a currencyother than an investor's currency, a change in exchange rates may adversely affect the investment. Past performance is not necessarily indicative offuture results. Investors must make their own informed investment decisions without depending on this Recommendation. Only investors withsufficient knowledge and expertise in financial dealings who are able to evaluate risk and return may consider investing in any form of securities ormarkets indicated herein.
Protection of copyright and data base contained in this Recommendation is of great importance. The report may not be reproduced, distributed orpublished by any person for any purpose without prior consent given by InterCapital Securities Ltd. Please cite source when quoting. All rights arereserved.
![Page 1: Top Regional Investment Stories - intercapital.hr Espresso... · IC Daily Highlights ... [SLOVENIA] Gorenje appoints advisors for its search of a strategic partner [SLOVENIA] ...](https://reader034.documents.pub/reader034/viewer/2022051507/5a778f237f8b9a9c548e1800/html5/thumbnails/1.jpg)
![Page 2: Top Regional Investment Stories - intercapital.hr Espresso... · IC Daily Highlights ... [SLOVENIA] Gorenje appoints advisors for its search of a strategic partner [SLOVENIA] ...](https://reader034.documents.pub/reader034/viewer/2022051507/5a778f237f8b9a9c548e1800/html5/thumbnails/2.jpg)
![Page 3: Top Regional Investment Stories - intercapital.hr Espresso... · IC Daily Highlights ... [SLOVENIA] Gorenje appoints advisors for its search of a strategic partner [SLOVENIA] ...](https://reader034.documents.pub/reader034/viewer/2022051507/5a778f237f8b9a9c548e1800/html5/thumbnails/3.jpg)
![Page 4: Top Regional Investment Stories - intercapital.hr Espresso... · IC Daily Highlights ... [SLOVENIA] Gorenje appoints advisors for its search of a strategic partner [SLOVENIA] ...](https://reader034.documents.pub/reader034/viewer/2022051507/5a778f237f8b9a9c548e1800/html5/thumbnails/4.jpg)
![Page 5: Top Regional Investment Stories - intercapital.hr Espresso... · IC Daily Highlights ... [SLOVENIA] Gorenje appoints advisors for its search of a strategic partner [SLOVENIA] ...](https://reader034.documents.pub/reader034/viewer/2022051507/5a778f237f8b9a9c548e1800/html5/thumbnails/5.jpg)
![Page 6: Top Regional Investment Stories - intercapital.hr Espresso... · IC Daily Highlights ... [SLOVENIA] Gorenje appoints advisors for its search of a strategic partner [SLOVENIA] ...](https://reader034.documents.pub/reader034/viewer/2022051507/5a778f237f8b9a9c548e1800/html5/thumbnails/6.jpg)
![Page 7: Top Regional Investment Stories - intercapital.hr Espresso... · IC Daily Highlights ... [SLOVENIA] Gorenje appoints advisors for its search of a strategic partner [SLOVENIA] ...](https://reader034.documents.pub/reader034/viewer/2022051507/5a778f237f8b9a9c548e1800/html5/thumbnails/7.jpg)
![Page 8: Top Regional Investment Stories - intercapital.hr Espresso... · IC Daily Highlights ... [SLOVENIA] Gorenje appoints advisors for its search of a strategic partner [SLOVENIA] ...](https://reader034.documents.pub/reader034/viewer/2022051507/5a778f237f8b9a9c548e1800/html5/thumbnails/8.jpg)
![Page 9: Top Regional Investment Stories - intercapital.hr Espresso... · IC Daily Highlights ... [SLOVENIA] Gorenje appoints advisors for its search of a strategic partner [SLOVENIA] ...](https://reader034.documents.pub/reader034/viewer/2022051507/5a778f237f8b9a9c548e1800/html5/thumbnails/9.jpg)
![Page 10: Top Regional Investment Stories - intercapital.hr Espresso... · IC Daily Highlights ... [SLOVENIA] Gorenje appoints advisors for its search of a strategic partner [SLOVENIA] ...](https://reader034.documents.pub/reader034/viewer/2022051507/5a778f237f8b9a9c548e1800/html5/thumbnails/10.jpg)
![Page 11: Top Regional Investment Stories - intercapital.hr Espresso... · IC Daily Highlights ... [SLOVENIA] Gorenje appoints advisors for its search of a strategic partner [SLOVENIA] ...](https://reader034.documents.pub/reader034/viewer/2022051507/5a778f237f8b9a9c548e1800/html5/thumbnails/11.jpg)
![Page 12: Top Regional Investment Stories - intercapital.hr Espresso... · IC Daily Highlights ... [SLOVENIA] Gorenje appoints advisors for its search of a strategic partner [SLOVENIA] ...](https://reader034.documents.pub/reader034/viewer/2022051507/5a778f237f8b9a9c548e1800/html5/thumbnails/12.jpg)
