RECOMMENDATION 27 NOVEMBER 2018 EXPLANATION OF TERMINOLOGY USED IN RECOMMENDATION BV - EV book value - market valuation of the company increased by the net interest debt value EBIT - CF operating profit (CFO) - NOPAT cash flow from operating activities - operating profit less the hypothetical tax on this EBITDA profit - operating profit increased by EBITDAA depreciation - EBITDA adjusted by the change in the fair value of EPS portfolios - net profit per 1 share DPS - dividend per 1 share P / E - share price to net profit per share P / EBIT - ratio of share price to operating profit per 1 share P / EBITDA - share price to operating profit increased by amortization per 1 share P / BV - share price / book value ratio per 1 EV / EBIT share - company market valuation ratio increased about long tto to EV / EBITDA operating profit - ratio of the company's market valuation plus net debt to operating profit plus ROE depreciation - ROA equity return rate - WACC return rate - average weighted FCFF capital cost - free cash flow for owners of equity and creditors Beta - a factor that takes into account the dependence of changes in the share price of a given company on changes in the SG & A index value - total costs of general management and sales BASIC RULES FOR GIVING RECOMMENDATIONS This recommendation, hereinafter referred to as the "Recommendation" was prepared by Noble Securities SA ("NS") based in In Warsaw. The Recommendation was based on publicly available information known to the Analyst as at the date of the Recommendation, in particular information provided by the Issuer in current and periodic reports prepared as part of its disclosure obligations. The recommendation expresses only the analyst's knowledge and views as at the date of its preparation. The forecasts and evaluation elements presented in the Recommendation are based solely on the analysis performed by the Analyst, without arrangements with the Issuer or with other entities, and are based on a number of assumptions that may turn out to be irrelevant in the future. NS or the Analyst do not give any assurance that the forecasts will work. The recommendation issued by NS is valid for a period of 9 months, unless it is previously updated. The update depends on the analyst's market situation and subjective assessment. STRONG AND WEAKNESSES METHODS OF VALUATION USED BY NS IN RECOMMENDATION The DCF method (discounted cash flow) - is considered the methodologically most appropriate valuation technique and consists in discounting financial flows generated by the rated entity. The strengths of this method include taking into account all cash flows that flow in and out of the company and the cost of money over time. The disadvantages of the DCF valuation method are: a large number of assumptions and parameters that need to be estimated and the sensitivity of valuation to changes in these factors. A variation of this method is the method of discounted dividends. Comparative method - based on a comparison of valuation multipliers of companies in the industry in which the rated entity operates. This method very well reflects the current state of the market, requires fewer assumptions and is simpler to apply (relatively high availability of indicators for compared entities). Its disadvantages include high volatility related to price fluctuations and stock exchange indices (in the case of comparison to listed companies), subjectivism in the selection of a group of comparable companies and simplification of the company image leading to the omission of some important parameters (eg growth rate, corporate governance, non-operational assets , differences in accounting standards). INTERESTS OR CONFLICTS OF INTERESTS THAT MAY AFFECT THE RECOMMENDANCE OF THE RECOMMENDATION The analyst is not a party to any contract concluded with the Issuer and does not receive remuneration from the Issuer. The analyst's remuneration resulting from the recommendation made by NS is not directly related to transactions in brokerage services provided by NS or other types of transactions that NS or any other legal entity that is part of the group to which NS belongs or with fees for transactions that they receive NS or these people. It can not be ruled out that the remuneration that may be due in future to a NS Analyst by another title may be indirectly dependent on NS financial results, including those obtained as part of investment banking transactions related to the Issuer's financial instruments. It is possible that NS has or will have the intention to submit an offer to provide services to the Issuer. ORGANIZATIONAL AND ADMINISTRATIVE SOLUTIONS AND INFORMATION BARRATORS ESTABLISHED TO PREVENT CONFLICT OF INTERESTS AND THEIR AVOIDANCE Detailed rules of conduct in case of conflicts of interest are set out in the "Regulations of Conflict of Interest Management at Noble Securities SA" available at www.noblesecurities.pl in the tab: " About us "/" Regulations "/" Information policy ". The internal structure of NS ensures organizational separation of analysts from individuals (teams) performing activities that involve the risk of a conflict of interest and prevents conflicts of interest, and in the event of such conflict enables protection of client interests against the harmful effects of this conflict. In particular, Analysts do not have access to information about transactions concluded on own-account NS and customer orders. NS ensures that there is no possibility for third parties to exert any adverse influence on the way the Analyst performs work. NS ensures that there are no links between the amount of remuneration of employees of one organizational unit and the amount of remuneration of employees of another organizational unit or the amount of revenues achieved by that other organizational unit, if these units perform activities that involve the risk of a conflict of interests. NS has implemented internal rules regarding the flow of confidential and professional information, which is aimed at securing confidential information or professional secrecy and preventing its unjustified flow or misuse. NS limits to a minimum the circle of people who have access to confidential information or professional secrecy. In order to control access to relevant non-public information, within NS there are internal limitations and barriers in the transfer of information, so-called Chinese walls, ie rules, procedures and physical solutions to prevent the flow and use of confidential and professional secret information. NS uses restrictions in physical access (separate rooms, lockable wardrobes) and in access to information systems. NS has implemented regulations in the scope of performing activities consisting in preparing investment analyzes, financial analyzes and other general recommendations regarding transactions in financial instruments, as well as the internal procedure regulating the subject scope. NS discloses in the content of the Recommendations prepared by itself all connections and circumstances that could affect the objectivity of the Recommendations prepared. It is forbidden to accept material or non-material benefits by NS or the Analyst from entities having a significant interest in the content of the Recommendation, proposing
RECOMMENDATION On November 27, 2018, the Issuer, by NS or Analyst, has beneficial content for this Issuer. It is forbidden to make available to the Issuer or other persons than Analysts, a Recommendation, containing the content of the recommendation or the target price, before commencing its distribution for purposes other than verification of the compliance of NS with its legal obligations. NS has implemented internal regulations regarding the principles of personal transactions concluded by persons involved, including prohibits the use of information obtained in connection with business activities for personal transactions. In addition, Analysts may not enter into personal transactions regarding the Issuer's financial instruments or related financial instruments prior to the dissemination of the Recommendation, as well as personal transactions contrary to the Recommendation, and in the event that NS starts or works on issuing Issuer's financial instruments since the Insurer in this respect until the prospectus is published - in the case of a public offer or to launch an offer. OTHER INFORMATION AND DISCLAIMER NS ensures that the Recommendation has been prepared with due diligence and integrity based on generally available facts and information considered reliable, reliable and objective by the Analyst, however NS or the Analyst does not guarantee that they are fully accurate and complete. If the Recommendation indicates the addresses of websites used in the preparation of the Recommendation, neither the Analyst nor NS shall be liable for the content of these websites. Investing can involve high investment risk. The recommendation can not be treated as an assurance or guarantee of avoiding losses, or achieving potential or expected results, in particular profits or other benefits from transactions carried out on its basis, or in connection with refraining from such transactions. The general description of financial instruments and the risk related to investing in individual financial instruments is presented at www.noblesecurities.pl in the tab Dom Maklerski / Rachunek maklerski / Dokumenty. NS points out that although the above information has been prepared with due diligence, in particular in a reliable manner and in accordance with NS's best knowledge, it may not be exhaustive and may exist or be updated in the specific situation in which an investor is or will be located other risk factors than those indicated in the above information by NS. The investor should keep in mind that investments in individual financial instruments may result in the loss of some or all of the funds invested, and even involve the incurring of additional costs. Investors using the Recommendation may not resign from carrying out an independent assessment and taking into account other circumstances than indicated by the Analyst or by NS. The final decision regarding specific transactions based on the Recommendation, in particular the disposal or acquisition of a financial instrument or refraining from making such transactions, belongs only to the investor. The recommendation has been prepared in accordance with the legal requirements ensuring independence, in particular with the Commission Delegated Regulation (EU) 2016/958 of 9 March 2016 supplementing Regulation (EU) No 596/2014 of the European Parliament and of the Council with regard to regulatory technical standards concerning technical means for the purpose of presenting investment recommendations or other information recommending or suggesting an investment strategy and disclosing particular interests or indications of conflicts of interest. The recommendation is an investment study referred to in art. 36 par. 1 of Commission Delegated Regulation (EU) 2017/565 of 25 April 2016 supplementing Directive 2014/65 / EU of the European Parliament and of the Council with regard to organizational requirements and operating conditions of investment firms and concepts defined for the purposes of this directive. The recommendation or any of its provisions do not constitute: offers within the meaning of art. 66 of the Act of 23 April 1964 - the Civil Code, grounds for concluding a contract or creating a liability, public suggestion of acquisition of financial instruments or public offering of financial instruments within the meaning of art. 3 of the Act of 29 July 2005 on public offerings and conditions governing the introduction of financial instruments to organized trading, and on public companies, invitations to subscribe for or purchase securities of the Issuer, investment advisory services or portfolio management services referred to in Act on trading in financial instruments. Recommendation is distributed among NS clients and employees. The abbreviation recommendation may be made public on the NS www.noblesecurities.pl website, it is intended for distribution only in the Republic of Poland, and is not intended for distribution or transmission, directly or indirectly, in the United States of America, Canada, Japan or Australia or the area of any other jurisdiction where such distribution would violate applicable jurisdictions or require registration in that jurisdiction, does not contain all information about the Issuer and does not enable the Issuer to fully evaluate, in particular as regards the Issuer's financial situation, because the Recommendation has been selected only some data regarding the Issuer, is for information purposes only, so it is not possible to comprehensively evaluate the Issuer on the basis of the Recommendation. FINAL REMARKS An analyst preparing the Recommendation: Krzysztof Radojewski Date and time of completion of the Recommendation: November 27, 2018 8:41. Date and time of the first dissemination of the Recommendation: 27/11/2018 at 8:43. Distribution or reproduction of the Recommendation (in whole or in any part) without the written consent of NS is prohibited. NS is subject to the supervision of the Polish Financial Supervision Authority. The latest recommendation / update for Dino Polska SA Recommendation / update Hold Hold Release date 21/11/2017 16/04/2018 Rate on recommendation 67.3 91.9 Target price 70.0 90.3 WIG on the day of recommendation 63 621,92 60,477 , 53
RECOMMENDATION 27 NOVEMBER 2018 List of all recommendations disseminated in the last 12 months: Company Recommendation Target price Price at issue Current price Difference to the Target Price Issue date (1) Expiration date (2) Prepared (3) Amrest Holdings Accumulate 52.5 47.5 37.2 41% 09/10/2018 9M Krzysztof Radojewski Ciech Buy 72.2 47.7 40.9 77% 26/09/2018 9M Dawid Radzynski Bogdanka Accumulate 67.6 61.4 54.9 23% 24/09/2018 9M Michał Sztabler Eurocash Buy 24.8 20.6 17.3 43% 31/08/2018 9M Krzysztof Radojewski PKP Cargo Buy 62.7 49.8 39.9 57% 23/08/2018 9M Michał Sztabler CD Projekt Hold 213.2 197.4 138.9 53% 06/08/2018 9M Kamil Jędrej Alumetal Hold 53.8 48.5 43.9 22% 01/08/2018 9M Dawid Radzyński Budimex Reduce 106.4 126.6 116.2 -8% 30/07/2018 9M Krzysztof Radojewski PKP Cargo Accumulate 53.1 45.1 19.06.2018 9M Michał Sztabler Elektrobudowa Hold 74.6 70.8 32.1 132% 19/06/2018 9M Krzysztof Radojewski Apator Accumulate 29.0 26.0 23.7 22% 12/06/2018 9M Michał Sztabler Trakcja PRKiI Buy 4.7 3.4 3.3 43% 12/06/2018 9M Krzysztof Radojewski Wielton Accumulate 16.2 13.8 8.8 84% 30/05/2018 9M Michał Sztabler Stalprodukt Buy 599.0 477.532 , 0 84% 22.05.2018 9M Dawid Radzyński Pfleiderer Group Buy 47.7 36.5 31.8 50% 19/04/2018 9M Krzysztof Radojewski Dino Poland Hold 90.3 91.9 83.5 8% 16/04/2018 9M Krzysztof Radojewski Amica Buy 177.0 128.0 110.2 61% 12/04/2018 9M Michał Sztabler Amrest Holdings * Hold 43.0 45.6 22/03/2018 9M Krzysztof Radojewski Eurocash Hold 23.2 22.0 05.03.2018 9M Krzysztof Radojewski Aplisens na 14.6 12.8 10.2 43% 02/03/2012 n / a Michał Sztabler Izoblok in current. 121.0 100.0 08.01.2018 9M Michał Sztabler Bogdanka Hold 71.5 68.8 08.01.2018 9M Michał Sztabler Budimex Reduce 182,1 206.4 20/12/2017 9M Krzysztof Radojewski PKP Cargo Reduce 45.2 55.8 12.12 .2017 9M Michał Sztabler Eurocash Buy 37.5 27.6 04.12.2017 9M Krzysztof Radojewski Apator Buy 33.8 28.0 04.12.2017 9M Michał Sztabler Elektrobudowa Hold 833,586.5 27.11.2017 9M Krzysztof Radojewski Dino Poland Hold 70.0 67.3 21/11/2017 9M Krzysztof Radojewski Trakcja PRKiI Hold 8,5 8.1 21/11/2017 9M Krzysztof Radojewski Pfleiderer Group Accumulate 46,0 39,5 31/10/2017 9M Krzysztof Radojewski (1) The date of issue is also the date first recommendation, (2) recommendation is valid for 9 months or until update (3) Job description: Krzysztof Radojewski - Director of the Market Analysis Department, Michał Sztabler - Stock Analyst, Dawid Radzyński - Junior Action Analyst, Kamil Jędrej - Junior Stock Analyst, * price adjustment for stock split
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