H m ricercaf

7/23/2019 H m ricercaf

http://slidepdf.com/reader/full/h-m-ricercaf 1/8

HENNES & MAURITZRetail/Apparel Sweden 5 August 2009

E Öhman J :or Fondkommiss ion AB P .O. Box 7415 SE-103 91 S tockholm Sweden V i s i t ing address Berze l i i Park 9 Te lephone +46 8 402 50 00 Te le fax +46 8 20 00 75 www.ohman.se

Easier sales comparables after JulyWe downgrade our recommendation to ACCUMULATE (BUY)

Weaker US dollar favors gross margin

^é~êí Ñêçã É~ëáÉê ë~äÉë Åçãé~ê~ÄäÉë ~ÑíÉê gìäó íÜÉ ÅìêêÉåí ÑçêÉñ

ëáíì~íáçåI ïáíÜ ~ ëíêçåÖÉê pïÉÇáëÜ âêçå~ îëK ãçëí ÑçêÉáÖå

ÅìêêÉåÅáÉëI êÉéêÉëÉåíë ~åçíÜÉê éçëáíáîÉ íêáÖÖÉê Ñçê ÑìíìêÉ É~êåáåÖëK

páåÅÉ íÜÉ nO êÉéçêí ï~ë éìÄäáëÜÉÇ áå ä~íÉ gìåÉ íÜÉ pïÉÇáëÜ âêçå~

Ü~ë ëíêÉåÖíÜÉåÉÇ Äó NMB ~Ö~áåëí íÜÉ rp Ççää~ê Ó åÉ~êäó íïçJíÜáêÇë

çÑ eCjÛë éìêÅÜ~ëÉë ~êÉ ÇÉåçãáå~íÉÇ áå Ççää~êëK ^í íÜÉ ë~ãÉ

íáãÉI íÜÉ Éìêç Ü~ë ïÉ~âÉåÉÇ Äó TB ~Ö~áåëí íÜÉ pïÉÇáëÜ âêçå~ Ó

ïÜáÅÜ ~ÅÅçìåíë Ñçê íÜÉ êÉã~áåáåÖ çåÉJíÜáêÇ çÑ íçí~ä éìêÅÜ~ëÉëK

cìêíÜÉêI ïÉ ÄÉäáÉîÉ íÜ~í ä~Åâ çÑ ÄìëáåÉëë Ñçê ëìééäáÉêë ÖáîÉë eCj~å ÉñÅÉääÉåí çééçêíìåáíó íç åÉÖçíá~íÉ ÄÉííÉê éìêÅÜ~ëáåÖ éêáÅÉëI

áåÇÉéÉåÇÉåíäó çÑ ÅìêêÉåÅó ÑäìÅíì~íáçåëK

Raised expectation from 2009

^ë ïÉ ÉñéÉÅí ~ ëíêçåÖÉê pïÉÇáëÜ ÅìêêÉåÅó ~åÇ ÅçåíáåìÉÇ ÉÑÑÉÅíáîÉ

Åçëí Åçåíêçäë ïÉ áåÅêÉ~ëÉ çìê É~êåáåÖë Éëíáã~íÉë ëäáÖÜíäóK tÉ ê~áëÉ

çìê bmp ÑçêÉÅ~ëíë Ñçê OMMV Äó MKRB íç pbh NVKMM ENUKVQFI Ñçê

OMNM Äó MKRB íç pbh OPKOP EOPKNTF ~åÇ Ñçê OMNN Äó MKRB íç pbh

OSKVT EOSKVMFK tÉ ~äëç ìéÖê~ÇÉ çìê amp Éëíáã~íÉë Ñçê OMMV Äó

PB íç pbh NSKMM ENRKRMF Äìí ã~áåí~áå çìê OMNM ÑçêÉÅ~ëí çÑ pbh

NVKMMK cçê OMNN ïÉ ê~áëÉ çìê amp Éëíáã~íÉ Äó OKRB íç pbh OOKRM

EOOKMMFK

Valuation less tempting – downgraded to ACC. (BUY)

páåÅÉ íÜÉ nO êÉéçêí ï~ë éìÄäáëÜÉÇ áå ä~íÉ gìåÉ íÜÉ ëÜ~êÉ éêáÅÉ Ü~ë

êáëÉå åÉ~êäó NRB ïáíÜçìí ~åó ëìÄëí~åíá~ä áåÑçêã~íáçå ÄÉáåÖ

éìÄäáëÜÉÇK ^ë ~ êÉëìäíI ïÉ ÇçïåÖê~ÇÉ çìê êÉÅçããÉåÇ~íáçå íç

^``rjri^qb E_rvFK eCj åçï íê~ÇÉë ~í ~ mLb éêÉãáìã çÑ

SJU íáãÉë ~ÄçîÉ çìê ã~áå éÉÉê ÖêçìéI áå äáåÉ ïáíÜ ÜáëíçêáÅ~ä äÉîÉäëK

eçïÉîÉêI ïÉ êÉã~áå çéíáãáëíáÅ ÄÉóçåÇ OMMVI ê~áëáåÖ çìê Öêçëë

ã~êÖáå ÉñéÉÅí~íáçåë ëäáÖÜíäó ~åÇ áåÅêÉ~ëáåÖ çìê Ñ~áê î~äìÉ éÉê ëÜ~êÉ

íç pbh QRM EQORFK

Rating ACCUMULATE 5/8/09

A S O N D J F M A M J J

200

250

300

350

400

450

HENNES & MAURITZ 'B'

OMX STOCKHOLM (OMXS) - PRICE INDEX

Source: Thomson Datastream

Share price SEK 419.5Shares outstanding (m) 827.5Shares fully diluted (m) 827.5

Market cap (SEKm) 347,151

EUR/SEK 10.29USD/SEK 7.14Free float (%) 66

Reuters code HMb.STBloomberg code HMB SS Web site www.hm.comNext interim report 24 September 2009

Analyst Rolf KarpEmail [email protected] Susanna WestmanEmail [email protected]

Sales y/y EBIT marg. Pretax EPS EPS (adj) y/y P/E (adj) P/FCF EV/S EV/EBIT DPS(SEKm) (%) (SEKm) (%) (SEKm) (SEK) (SEK) (%) (x) (x) (x) (x) (SEK)

06/07 78,346 14.5 18,382 23.5 19,170 16.42 16.42 25.8 25.5 22.4 4.2 17.7 14.00

07/08 88,532 13.0 20,138 22.7 21,190 18.48 18.48 12.6 22.7 20.6 3.7 16.2 15.50

08/09E 105,150 18.8 21,165 20.1 21,685 19.00 19.00 2.8 22.1 27.5 3.1 15.4 16.00

09/10E 118,500 12.7 25,614 21.6 26,259 23.23 23.23 22.3 18.1 21.8 2.7 12.7 19.00

10/11E 133,905 13.0 29,754 22.2 30,487 26.97 26.97 16.1 15.6 18.5 2.4 10.9 22.50

Market Cap (SEKm)* 347,151 Assets 55,733 Dividend Yield (%) for 07/08 3.7

Net Debt(+) or Cash(-)* -21,897 Goodwill 431 Equity Ratio (%) 71.5

Minorities – Associates* 0 BV per Share (SEK) 48.1 ROE (%) 40.9

Enterprise Value* 325,254 Price/Book (x) 8.7 ROCE (%) 56.2

Values marked * are current; others are end 08/09E unless otherwise stated. Source: Öhman Equities



ÖHMAN EQUITY RESEARCH HENNES & MAURITZRetail/Apparel Sweden 5 August 2009

2

STRONG RECOVERY FORECAST FROM 2010

tÉ ÉñéÉÅí ë~äÉë íç ÄÉ Üìêí Äó ~ ëíêçåÖÉê pïÉÇáëÜ âêçå~ îëK ãçëí ÑçêÉáÖåÅìêêÉåÅáÉë ~åÇ Ü~îÉ íÜÉêÉÑçêÉ äçïÉêÉÇ çìê ë~äÉë Éëíáã~íÉë Ñêçã OMMVK tÉ åçïÉëíáã~íÉ ë~äÉë çÑ pbh NMRINRMã Ñçê OMMVI ~ NKRB êÉÇìÅíáçå îëK çìê éêÉîáçìëÑçêÉÅ~ëí çÑ pbh NMSIUVQãK tÉ Ü~îÉ ~äëç äçïÉêÉÇ çìê ë~äÉë Éëíáã~íÉë Ñçê OMNM~åÇ OMNN Äó íÜÉ ë~ãÉ éêçéçêíáçåK eçïÉîÉêI ÄÉÅ~ìëÉ ïÉ ~êÉ ãçêÉ çéíáãáëíáÅÅçåÅÉêåáåÖ íÜÉ Öêçëë ã~êÖáå ÇÉîÉäçéãÉåí Ñêçã íÜáë óÉ~êI ïÉ Ü~îÉ ~ÇàìëíÉÇ çìêÑçêÉÅ~ëíë ~ÅÅçêÇáåÖäóK cçê OMMV ïÉ åçï ÉñéÉÅí ~ Öêçëë ã~êÖáå çÑ RVKUBÅçãé~êÉÇ íç çìê éêÉîáçìë ÑçêÉÅ~ëí çÑ RVKRBK tÉ Ü~îÉ ~äëç ëäáÖÜíäó áåÅêÉ~ëÉÇ çìêÖêçëë ã~êÖáå ~ëëìãéíáçåë Ñçê OMNM íç SMKRB Ñêçã éêÉîáçìëäó SMKNB ~åÇ ÑçêOMNN íç SMKUB Ñêçã éêÉîáçìëäó SMKQBK tÉ Çç ëç Ñçê íÜêÉÉ êÉ~ëçåëW NF ïÉ ÉñéÉÅí~ ëíêçåÖÉê pïÉÇáëÜ âêçåÉê ~åÇ ÅçåíáåìÉÇ ÉÑÑÉÅíáîÉ Åçëí ÅçåíêçäëX OF ~ ëíêçåÖÉêpïÉÇáëÜ ÅìêêÉåÅó ïáää ÄÉåÉÑáí áåíÉêå~ä ÜÉÇÖáåÖ ~êê~åÖÉãÉåíë ë~ó ã~å~ÖÉãÉåíX

~åÇ PF íÜÉ Åçãé~åó Éåàçóë ~ ÄÉííÉê åÉÖçíá~íáåÖ éçëáíáçå ÇìÉ íç ä~Åâ çÑ ÄìëáåÉëëÑçê áíë ëìééäáÉêëK

EARNINGS ESTIMATES AND FORECAST REVISIONS

(SEKm) 11/2008 old new Change old new Change old new Change

Turnover, excl. VAT 88,532 106,894 105,150 -1.6% 120,470 118,500 -1.6% 136,130 133,905 -1.6%

EBIT 20,138 2 1,109 21,165 0.3% 25,505 2 5,614 0.4% 29,633 2 9,754 0.4%

Pretax profit 21,190 21,614 21,685 0.3% 26,193 26,259 0.3% 30,409 30,487 0.3%

Net profit 15,294 15,671 15,723 0.3% 19,173 19,221 0.3% 22,259 22,316 0.3%

EPS 18.48 18.94 19.00 0.3% 23.17 23.23 0.3% 26.90 26.97 0.3%

DPS 15.50 15.50 16.00 3.2% 19.00 19.00 0.0% 22.00 22.50 2.3%

Key Figures

Sales growth 13.0% 20.7% 18.8% 12.7% 12.7% 13.0% 13.0%

EPS growth 12.6% 2.5% 2.8% 22.3% 22.3% 16.1% 16.1%

Gross margin 61.5% 59.5% 59.8% 60.1% 60.5% 60.4% 60.8%

EBIT margin 22.7% 19.7% 20.1% 21.2% 21.6% 21.8% 22.2%

Pretax margin 23.9% 20.2% 20.6% 21.7% 22.2% 22.3% 22.8%

Net margin 17.3% 14.7% 15.0% 15.9% 16.2% 16.4% 16.7%

Tax rate 27.8% 27.5% 27.5% 26.8% 26.8% 26.8% 26.8%

Net new stores* 216 228 228 0.0% 245 245 0.0% 270 270 0.0%

Total stores 1,738 1,966 1,966 0.0% 2,211 2,211 0.0% 2,481 2,481 0.0%

* incl. 25 Monki+Weekday stores in 2008 (191 H&M stores)

Source: Öhman Equities

11/2009E 11/2010E 11/2011E

Q3E 2009 (PRELIMINARY)

(SEKm) Q3E '09 Q3 '08 9ME '09 9M '08 2009E 2008

Sales 25,055 20,871 74,892 62,222 105,150 88,532

Gross margin 59.4% 60.8% 59.1% 61.2% 59.8% 61.5%

EBIT 4,733 4,365 13,768 13,319 21,165 20,138

Pretax 4,828 4,586 14,166 14,076 21,685 21190

Net profit 3,500 3,325 10,270 10,205 15,723 15,294

EPS, SEK 4.23 4.02 12.41 12.33 19.00 18.48

Key figures

Sales growth 20.0% 11.6% 20.4% 12.1% 18.8% 13.0%

EPS growth 5.3% 5.0% 0.6% 14.2% 2.8% 12.6%

EBIT margin 18.9% 20.9% 18.4% 21.4% 20.1% 22.7%

Pretax margin 19.3% 22.0% 18.9% 22.6% 20.6% 23.9%

Net margin 14.0% 15.9% 13.7% 16.4% 15.0% 17.3%

Tax rate 27.5% 27.5% 27.5% 27.5% 27.5% 27.8%

Source: Öhman

Management says a strongerSwedish currency will benefitH&M’s internal hedging

Q1 Q2 Q3 Q4 Annual

2007 58.9% 61.6% 61.2% 62.1% 61.1%

2008 59.6% 62.9% 60.8% 62.4% 61.5%

Differen ce 0.7% 1.3% -0.4% 0.3% 0.5%

2009 56.6% 61.0% 59.4% 61.4% 59.8%

D if ferenc e -3.1% -1.8% -1.4% -1.0% -1.8%

Source: Öhman

GROSS MARGIN DEVELOPMENT

Q1 2007-Q4E 2009




3

VALUATION – LESS TEMPTING

pç Ñ~ê íÜáë óÉ~ê eCjÛë ëÜ~êÉ éêáÅÉ Ü~ë áåÅêÉ~ëÉÇ Äó QMB îëK PPB Ñçê íÜÉ lju ^ää pÜ~êÉë áåÇÉñK `çãé~êÉÇ íç áíë ã~áå éÉÉê Öêçìé EëÉÉ í~ÄäÉ ÄÉäçïF eCj åçïíê~ÇÉë áå äáåÉ ïáíÜ áíë ÜáëíçêáÅ~ä mLb éêÉãáìã çÑ SJU íáãÉë ã~âáåÖ áíë î~äì~íáçåäÉëë ~ííê~ÅíáîÉK

PEER GROUP

Curr. 4/Aug/09 Jan '09 2008 2009E 2010E 2008 2009E 2010E 2009E 2010E USDm

Hennes & Mauritz SEK 420 37 18.48 1 9.16 21.62 22.7 21.9 19.4 3.7% 12.8% 42,862

Inditex EUR 38 22 2.02 1.86 2.06 19.5 20.6 18.6 -7.9% 10.8% 34,398

TJX USD 36 74 2.01 2.33 2.55 17.4 15.4 14.0 15.9% 9.4% 14,788

GAP USD 17 24 1.34 1.24 1.33 12.6 13.4 12.5 -7.5% 7.3% 11,609

Marks & Spencer GBP 344 60 28.00 23.88 26.20 12.3 14.4 13.1 -14.7% 9.7% 9,171

Limited Brands USD 13 28 1.05 0.80 0.98 19.8 16.1 13.2 -23.8% 22.5% 4,139

Next GBP 1708 58 156.00 144.21 149.10 10.9 11.8 11.5 -7.6% 3.4% 5,691

Benetton EUR 6 -1 0.87 0.59 0.66 7.4 10.2 9.1 -31.8% 11.9% 1,582

Average 15.3 15.5 13.9 -9.2% 11.0%

Average (excl. H&M) 14.3 14.6 13.1 -11.0% 10.7%

Source: Datastream

Difference (excl. H&M) 8.4 7.3 6.3

Historical difference to peer group 6-8 P/E-units (premium)

POSITIVE CURRENCY EFFECTS WILL GRADUALLY FADE OUT

_~ëÉÇ çå çìê ÅìêêÉåÅó Éëíáã~íÉë ïÉ ÑçêÉÅ~ëí ~ éçëáíáîÉ ÅìêêÉåÅó ÉÑÑÉÅí çÑ NNKRJNOKR éÉêÅÉåí~ÖÉ éçáåíë ÇìêáåÖ nP OMMVI áå ~ÇÇáíáçå íç Éëíáã~íÉÇ ë~äÉë ÖêçïíÜáå äçÅ~ä ÅìêêÉåÅó çÑ SJTBK eçïÉîÉêI áÑ íÜÉ ëíêçåÖÉê pïÉÇáëÜ âêçå~ êÉã~áåëìåÅÜ~åÖÉÇ ÖçáåÖ Ñçêï~êÇ íÜÉ éçëáíáîÉ ÅìêêÉåÅó ÉÑÑÉÅí ïáää Öê~Çì~ääó Ñ~ÇÉ çìí ÄóíÜÉ ÉåÇ çÑ íÜÉ óÉ~êK cçê ÑáëÅ~ä OMMV ïÉ Éëíáã~íÉ ~ éçëáíáîÉ ÅìêêÉåÅó ÉÑÑÉÅí çÑ NMJNOB Ó Ä~ëÉÇ çå ÅìêêÉåí ê~íÉëK

CURRENCY IMPACT Q1 2007-Q4E 2009

-10.0%

-5.0%

0.0%

5.0%

10.0%

15.0%

Q1 '07 Q2 '07 Q3 '07 Q4 '07 Q1 '08 Q2 '08 Q3 '08 Q4 '08 Q1 '09 Q2 '09 Q3E '09 Q4E '09

Quarterly AccumulatedSource:Öhman

2007 2008 2009E

2009E: 10-12% os. curr.effect

Q3E 2009: 11.5-12.5% pos. curr.effect




4

THREE YEAR SHARE PERFORMANCE

4/8/09

2006 2007 2008 2009

150

200

250

300

350

400

450

HENNES & MAURITZ 'B'

OMX AFFARSVARLDENS GENERAL - PRICE INDEX


CURRENCY EFFECTS PAST YEAR

4/8/09

A S O N D J F M A M J J

5.50

6.00

6.50

7.00

7.50

8.00

8.50

9.00

9.50

SWEDISH KRONA TO US $ (W MR) - EXCH ANGE RATE

SWEDISH KRONA TO EURO ( WMR) - EXCHANGE RATE


Not too far from all-time

high of SEK 450 in 2007

The Swedish krona isregaining strength – goodon H&M’s gross margin




5

FULL-YEAR ESTIMATES

INCOME STATEMENT (SEKm) 06/07 07/08 08/09E 09/10E 10/11E

Sales 78,346 88,532 105,150 118,500 133,905EBITDA 20,196 22,305 23,850 28,800 33,555

Depreciation of tangible fixed assets -1,814 -2,167 -2,685 -3,186 -3,801EBITA 18,382 20,138 21,165 25,614 29,754

Goodwill writedowns 0 0 0 0 0Amortization of intangible fixed assets 0 0 0 0 0EBIT 18,382 20,138 21,165 25,614 29,754

EBIT as reported 18,382 20,138 21,165 25,614 29,754

Net interest 788 1,052 534 659 748Associated income 0 0 0 0 0Other financial items 0 0 -14 -15 -16EBT 19,170 21,190 21,685 26,259 30,487

Tax expense -5,582 -5,896 -5,962 -7,037 -8,170Discontinued operations 0 0 0 0 0

Net income 13,588 15,294 15,723 19,221 22,316Attributable to minority 0 0 0 0 0Attributable to shareholders 13,588 15,294 15,723 19,221 22,316

EBITDA margin (%) 25.8 25.2 22.7 24.3 25.1EBITA margin (%) 23.5 22.7 20.1 21.6 22.2EBIT margin (%) 23.5 22.7 20.1 21.6 22.2Tax rate (%) 29.1 27.8 27.5 26.8 26.8

BALANCE SHEET (SEKm) 06/07 07/08 08/09E 09/10E 10/11E

Goodwill 0 431 431 431 431Other intangible fixed assets 1,136 1,775 1,998 2,252 2,544Tangible fixed assets 9,553 13,100 16,088 19,073 22,244Associated holdings 0 566 566 566 566Other financial fixed assets 990 2,154 2,418 2,726 3,080Inventories 7,969 8,500 9,989 11,258 12,721Accounts receivable 1,122 1,991 2,103 2,370 2,678

Cash and equivalents 20,964 22,726 22,139 24,788 27,823Total assets 41,734 51,243 55,733 63,462 72,087

Common stock 470 1,617 1,617 1,617 1,617Retained earnings 31,623 35,333 38,229 44,187 50,771Minority interest 0 0 0 0 0Total equity 32,093 36,950 39,846 45,804 52,388

Pension liability 156 228 242 257 273Other interest-bearing liabilities 0 0 0 0 0Non-interest-bearing liabilities 9,485 14,065 15,645 17,401 19,427Total liabilities 9,641 14,293 15,887 17,658 19,699

CASH FLOW (SEKm) 06/07 07/08 08/09E 09/10E 10/11E

Operating profit 18,382 20,138 21,165 25,614 29,754Non-cash adjustments 2,572 1,369 2,685 3,186 3,801Net financial items 788 1,052 534 659 748Tax paid -6,288 -5,035 -5,962 -7,037 -8,170Cash earnings 15,454 17,524 18,422 22,422 26,133

Change in net working capital -73 442 83 -87 -100Operating cash flow 15,381 17,966 18,504 22,335 26,033

Investments 50 -1,233 -6,001 -6,542 -7,399Free cash flow before acq’s&div’s 15,431 16,733 12,503 15,793 18,634

Acquisitions 0 0 0 0 0Divestments 94 143 105 118 134Free cash flow 15,525 16,876 12,608 15,912 18,768

Dividends -9,516 -11,584 -12,827 -13,263 -15,733Equity issues 0 0 0 0 0Change in debts and adjustments -3,670 -3,530 -368 0 0Change in cash 2,339 1,762 -587 2,649 3,035





6

KEY RATIOS

PER SHARE FIGURES 06/07 07/08 08/09E 09/10E 10/11E

Shares outstanding (m) 827.5 827.5 827.5 827.5 827.5EPS (SEK) 16.42 18.48 19.00 23.23 26.97EPS, adjusted (SEK) 16.42 18.48 19.00 23.23 26.97Dividend per share (SEK) 14.00 15.50 16.00 19.00 22.50Dividend per share, ordinary (SEK) 14.00 15.50 16.00 19.00 22.50Free cash flow per share (SEK) 18.76 20.39 15.24 19.23 22.68Net debt per share (SEK) -25.1 -27.2 -26.5 -29.6 -33.3

GROWTH RATES (%) 06/07 07/08 08/09E 09/10E 10/11E

Sales growth y/y 14.5 13.0 18.8 12.7 13.0EBITDA growth y/y 19.3 10.4 6.9 20.8 16.5EBIT growth y/y 20.2 9.6 5.1 21.0 16.2EPS adj. growth y/y 25.8 12.6 2.8 22.3 16.1

FINANCIAL ANALYSIS 06/07 07/08 08/09E 09/10E 10/11E

ROE (%) 45.4 44.3 40.9 44.9 45.5ROCE (%) 63.7 61.1 56.2 61.0 61.8ROA (%) 49.6 45.6 40.6 44.1 45.0Net debt (SEKm) -20,808 -22,498 -21,897 -24,531 -27,550Net debt / EBITDA (x) -1.0 -1.0 -0.9 -0.9 -0.8Interest coverage (x) 3,835.0 2,649.8 1,538.6 1,754.4 1,918.2Net gearing, leverage (%) -64.8 -60.9 -55.0 -53.6 -52.6Equity ratio (%) 76.9 72.1 71.5 72.2 72.7Payout ratio (%) 85.3 83.9 84.2 81.8 83.4Dividend yield (%) 3.3 3.7 3.8 4.5 5.4Dividend yield, ordinary (%) 3.3 3.7 3.8 4.5 5.4

VALUATION (x) 06/07 07/08 08/09E 09/10E 10/11E

P/E 25.5 22.7 22.1 18.1 15.6P/E, adjusted 25.5 22.7 22.1 18.1 15.6Price/FCF 22.4 20.6 27.5 21.8 18.5Price/Book 10.8 9.4 8.7 7.6 6.6

EV/Sales 4.2 3.7 3.1 2.7 2.4EV/EBITDA 16.1 14.6 13.6 11.3 9.7EV/EBITA 17.7 16.2 15.4 12.7 10.9EV/EBIT 17.7 16.2 15.4 12.7 10.9





7

DISCLOSURES AND DISCLAIMER

DISCLAIMER

This research report has been produced by E. Öhman J:or Fondkommission AB (“Öhman”), a company included in the E. Öhman J:or AB group of companies (the “ÖhmanGroup”), for the private information of its recipients. This report may not be reproduced, redistributed or republished by any recipient for any purpose or to any person.Öhman is a Swedish securities firm subject to supervision by the Swedish Financial Supervisory Authority. Neither the information nor any opinion which may be expressedherein constitutes a solicitation by Öhman of purchase or sale of any securities nor does it constitute a solicitation to any person in any jurisdiction where solicitation wouldbe unlawful. This research report must not be relied upon or acted on by any retail or private clients. All information contained in this research report has been compiledfrom sources believed to be reliable. However, no representation or warranty, express or implied, is made with respect to the completeness or accuracy of its contents, andit is not to be relied upon as authoritative.

The distribution of this research report in certain jurisdictions may be restricted by law and persons into whose possession this document comes should inform themselvesabout, and observe, any such restrictions.

Opinions contained in this research report represent Öhman’s current opinions as of the date of the report only. While Öhman endeavors to update its research reportsfrom time to time, there may be legal and other reasons why Öhman cannot do so and, accordingly, Öhman disclaims any obligation to do so.

The risk associated with investments in financial instruments, including those issued by the company or companies mentioned herein, may generally be high, as their marketvalue may be affected by many different elements, some of which may be specific to the company in question whereas others may depend on the general financial andpolitical situation at large. Past performance may not be repeated and should not be seen as an indication of future performance. The value of investments and the incomefrom them may go down as well as up and investors may forfeit all principal originally invested. Investors are not guaranteed to make profits on investments and may losemoney. Exchange rates may cause the value of investments in other currencies than the currency invested in by the investor and the income arising from them to rise or fall.

Recipients are urged to base their investment decisions upon such information, analysis and investigation as they deem necessary and they are urged to understand thatstatements regarding future prospects may not be realized and that past performance is not necessarily a guide to future performance. No liability whatsoever is accepted forany direct, indirect or consequential loss arising from the use of this research report or any information or opinion which may be set forth herein.

Recipients should be aware that Öhman, any member or affiliate of the Öhman Group, and any officers, directors or employees of the Öhman Group or any such otherentity may from time to time (a) have a long or short position in the securities (including derivative instruments thereof) of companies mentioned herein, (b) buy or sell suchsecurities, (c) provide corporate finance services to such companies or in relation to such securities. In addition, Öhman or other members or affiliates of the Öhman Groupmay make a market in the securities mentioned in this report. Information with regard to such potential conflicts of interest is provided in the section “DISCLOSURE OFFINANCIAL INTERESTS AND POTENTIAL CONFLICTS OF INTEREST” below.

DISCLOSURE OF FINANCIAL INTERESTS AND POTENTIAL CONFLICTS OF INTEREST

Guidelines on conflicts of interest

The Öhman Group has drawn up guidelines for dealing with conflicts of interest within the group. The guidelines include rules and measures aimed at achieving a sufficientdegree of independence between various departments, business areas and sub-business areas within the Öhman Group in order to, as far as possible, avoid conflicts ofinterest from arising between such departments, business areas and sub-business areas as well as their customers. One purpose of such measures is to restrict the flow ofinformation between certain business areas and sub-business areas within the group, where conflicts of interest may arise and to safeguard the impartialness of the employees.For example, the corporate finance departments and certain other departments included in the Öhman Group are surrounded by arrangements, so-called Chinese Walls, torestrict the flows of sensitive information from such departments. Öhman’s internal guidelines also include, without limitation, rules aimed at securing the impartialness of, e.g.,analysts working in Öhman’s research department, restrictions with regard to the remuneration paid to such analysts, requirements with respect to the independence ofanalysts from other departments within Öhman, rules concerning contacts with covered companies and rules concerning personal account trading carried out by analysts.Öhman employees, including analysts, do receive compensation that is generated by overall firm profitability, however, no part of analysts’ compensation is directly orindirectly related to specific recommendations or views expressed within research reports or to the corporate finance activities carried out by Öhman or any member of theÖhman Group.

Company specific disclosures

The beneficial holding of Öhman and other members of the Öhman Group of shares in the subject company of this report (the “Company”), if any, is less than 5 % of the total share capital of the Company.

During the past 12 months, no member of the Öhman Group has been lead manager or co-lead manager of any publicly disclosed issues or offers of or with regard tosecurities of the Company. During the past 12 months, no member of the Öhman Group has received compensation for investment banking services from the Company orotherwise been party to any publicly disclosed agreement with the Company relating to the provision of such services.

Neither Öhman nor any other member of the Öhman Group has entered into an agreement with the Company to write this report. A draft of this report, excluding anyrecommendation and/or target price, may have been submitted to the Company for review and confirmation of the factual information disclosed herein.

The Company does not hold any shares in Öhman.

No company within the Öhman Group is a market maker or other liquidity provider concerning securities issued by the Company.




8

DISCLOSURE OF ANALYSTS’ HOLDINGS

Name Title Net Position

Rolf Karp Analyst No positionSusanna Westman Analyst No positionChristian Wierup Head of Research No position

ÖHMAN RATING BREAK-DOWN

Rating Companies researched (%) Corporate Finance clients (%)

(Updated continuously) (During past 12 months)

BUY 36 0ACCUMULATE 38 0

REDUCE 22 0SELL 4 0

RATING STRUCTURE

Rating Expected total return in 6-12 months

BUY Gain of at least 10 percentACCUMULATE Gain of between 0 and 10 percentREDUCE Loss of between 0 and 10 percentSELL Loss of at least 10 percent

NOT RATED The investment rating, if any, has been suspended temporarily.

DEFINITIONS

Fair value Value based on a long-term, market neutral risk premium.

H m ricercaf

Documents

Transcript of H m ricercaf