This document has been prepared by IPOPEMA Securities S.A. with its regi stered seat in Warsaw, Próżna 9, 00-107 Warsaw, Poland, entered into the Register of Entrepreneurs of the
National Court Register maintained by the District Court for the City of Warsaw, XI I Commercial Division of the Nation al Court Register under entry number KRS 0000230737, the initi al
capital and paid capital in the amount of PLN 2.993.783 ,60, NIP 5272468122, www.ipopema.pl. IPOPEMA Securities S.A. is s uperv ised by the Polish Financial Supervision Authority
(Komisja Nadzoru Finansowego), Piękna 20, 00 -549 Warsaw, Poland.
This document was prepared by IPOPEMA Securities S.A. for informatio n purposes only. This document is addressed to IPOPEMA Se curities S.A. clients entitled to receive it on the
basis of contracts for the provision of services. This docume nt, using mass media distribution channels, may also reach other investors. It has been produced independently of t he
company mentioned in this document and any forecasts, op inions and exp ectations are entirely those of IPOPEMA Securities S.A. Unless otherwise specified, the estimates and
opinions contained in the document constitute an independent as sessment of IPOPEMA Securities S.A. analysts preparing the doc ument as of the date of issuing the document.
IPOPEMA Securities S.A. prepared this document with the preservation of all adequate diligence, thoroughness and reliability on the basis of publicly available information which
IPOPEMA Securities S.A. believes to be reliable. The sources of data are primarily: Bloomberg, Reuters, EPFR, Polska Agenc ja Prasowa, WSE, Główny Urząd Statystyczny, Narodowy
Bank Polski, financial press, online financial and econom ic services. While due diligence has been taken by IPOPEMA Securiti e s S.A. to ensure that the facts stated herein are accurate
and that any forecasts, opinions and expectations contai ned herein are fair and reasonable, IPOPEMA Securities S.A. has n ot i ndependently verified all the information given in this
document. Accordingly, no representation or warranty, exp ress or implied, is made as to the fairness, accuracy, completeness or correctness of the informatio n and opinions
contained in this document. The opinions expressed in the d ocument can change without notice and IPOPEMA Securities S.A. is under no obligation to keep these opinion current.
None of the IPOPEMA Securities S.A. or any other person accepts an y liability whatsoever for any loss howsoever arising from any use of this document or its contents or otherwise
arising in connection therewith provided that IPOPEMA Securities S.A. has been exercised due diligence and integrity during its preparation. Th is document may be sent to the mass
media, however its copying or publishing in whole or in part as well as d issemination of inform ation enclosed to it is allowed only with prior permission of IPOPEMA Securities S.A. This
document nor any copy hereof is not to be distributed directly or in directly in the United States, Australia, Canada or Japan , subject to the following section.
Important disclosures for U.S. Persons: Auerbach Grayson & Company Inc. may distribute this document in the U.S. This document i s provided for distribution to Major U. S.
Institutional Investors in reliance on the exemption from regi stration provided by Rule 1 5a-6 of the U.S. Securities Exchange Act of 1934, as amended and may not be furnished to any
other person in the U.S. Each Major U.S. Institutional In vestor that receives this document shall not distribute or p rovide i t to any other person. Under no circumstances shou ld any
U.S. recipient of this document effect any transaction to buy or sell securities or related financial instruments through IPO PEMA Securities S.A. Any U.S. recipient of this docum ent
wishing to effect any transaction to buy or sell securities or related financial instruments based on the information provided in this document should do so only through Auerbach
Grayson & Company Inc. 25 West 45th Street, Floor 16, New York, NY 10036 U.S. which is a registered broker dealer in the U.S. IPOPEMA Securities S.A. is not a registered broker-
dealer in the U.S. and, therefore, is not subject to U.S. r ules regarding the preparation of research reports and the ind epen dence of research analysts. IPOPEMA Securities S.A. and its
research analysts are not associated persons of Auerbach G rayson & Company, nor are they affiliated with Auerbach Grayson & Company. The author of this document whose name
appears in this document is not registered or qualified as a research analyst with the Financial Industry Regulatory Authority (“FINRA”), is not subject to the SEC r ules on research
analysts and is not subject FINRA’s rules on debt research analysts and debt research reports, equity research analysts and equity research reports. U.S. recipients should take into
account that information on non-U.S. securities or related financial instruments discussed in this document may be limited. The financial instruments of non -U.S. issuers may not be
registered with, or be subject to the regulations of, the SEC. Foreign comp anies may not be subject to audit and reporting standards and regulatory requirements comparable to those
in effect within the U.S.
This document does not constitute any offer to sell or induce any offer to bu y or sell any financial instruments, cannot be r elied on in connection with any contract or liability and does
not constitute advertising or promotion of a financial instrument or the company. Investment decisions should only be made on the basis of a prospectus or other publicly available
information and materials.
The document was prepared without taking into account th e needs and situation of the recipients of the document. When prepari ng the document, IPOPEMA Securities S.A. does not
examine the recipient's investment objectives, risk tolerance level, time horizon and financial standing of the investors. The company or the financial instruments discussed in the
document may not be suitable for the users of the document, i .e. it may not be suitable for the specific objectives and time horizon or the financial situation. Information included in
the document cannot be regarded as a substitute for obtain ing investment advice service. The value of financial instrument s m ay fluctuate, including declines. Changes in FX rates
may have an adverse effect on the value of investments. The investment i n financial instruments is linked to investment risks including loss of entire or part of the invested capital.
Past performance is not necessarily indicative of future results. IPOPEMA Securities S.A. points out that the price of financial instruments is affected by many different factors that are
or may be independent of the company and the results of its operations. These include, among others changing economic, legal, political and tax conditions. IPOPEMA Securities S.A.
may have issued in the past or may issue other documents in the future, presenting other conclusions, not consistent with tho se presented herein document. Such documents reflect
different assumptions, points of view and analytical methods adopted by the analysts preparing them.
Investors should be aware that IPOPEMA Securities S.A. or its related entities may have a conflict of interest that could affect this document’s objectivity. The investor should assume
that IPOPEMA Securities S.A. or its related entities may provide ser vices in favour of the company and obtain remuneration on this account. They may also have anothe r financial
interest with respect to the company. IPOPEMA Securities S.A. or its related enti ties may seek to do business with the company or other entities mentioned in this document. IPOPEMA
Securities S.A. has an organizational structure and int ernal regulations in place to ensure that the client’s int erests are not compromised in the event of a conflict of interests, in
relation to preparing this document. Conflict of interest m anagement policy is available on the website at
https://www.ipopemasecurities.pl/analizy-i-rekomendacje,p162 . This document was prepared irrespective and independently of the inter ests of IPOPEMA Securities S.A., the company that is the subject of this do cument and holder of financial
instrument issued by aforementioned company. IPOPEMA Securities S. A., its shareholders, employees an d associates may hold long or short positions in the company's financial
instruments or other financial instruments related to the company 's financial instruments.
On the order of the Warsaw Stock Exchange S.A. ("WSE"), IPOPEMA Secu rities S.A. creates an alytical materials for the following companies: AC S.A., Capital Park S.A., Mirbud S.A., PKB
Pekabex S.A., Vigo System S.A. The WSE has proprietary c opyrights to these materials. For the preparation of IPOPEMA Se curiti es S.A. receives remuneration from the WSE.
Information on the program is available on the website https://www.gpw. pl/gpwpa.
IPOPEMA Securities S.A. uses a number of valuation methodologies in cluding discounted cash flows models (such as discounted o perating earnings or dividend discount model), and
earnings and cash-flow based models, which are often related t o comparisons with selected peer companies. Cash flow models encapsulate the cash streams forecast to flow to a
company, and are widely used in the investment industry. Peer comparis ons factor in amongst other factors, differential growth rates, and indicate how expensive one company might
appear relative to a chosen comparator. The subjective opini ons of the report’s author or authors, formed by their knowledge and experience, play a significant role in the valuation.
Also included are assumptions on numerous economic varia bles, particularly interest rates, inflation and exchange rates and v arying these assumptions could results in significa ntly
different opinions. The strength of the earnings and cash flo w based models is the closer attention to a company on a standalone basis, and tying the valuation to its f undamental
value. The weakness of such method is the number of assumptions , which need to be adopted and resulting sensitivity to t hose assumptions. The peer comparisons methods are less
dependent on the analyst’s judgment as to the individual parameters, however the problem with this method appears when the peer comparator is over- or undervalued. Moreover,
leading multiples (based o n the future earnings, book values, operating profit or cash flows) inclu de an analyst’s estimate of those values.
This document was not transferred to the company prior to its pub lication. This document was prepared according to the author’s own view, assumptions and knowledge.
Recommendations issued by IPOPEMA Securities S.A. they are valid for a period of 12 months from the date of issue, unless the y are updated during this period. IPOPEMA Securities
S.A. updates the issued recommendations depending on the market si tuation and subjective analysts' assessment.
List of all recommendations regarding any financial instr ument or issuer that have been disseminated within the last 12 month s by IPOPEMA Securities S.A. is available on the website
The date and the time stated on the front page is the da te of the preparation of this document. The price used thr oughout the recommendation to calculate adequate ratios is the
“last” price stated on the front page of this document.
The definitions of terms used in the document include:
NII – Net interest income – interest income minus interest expense.
Net F&C – Net fee and commission income – fee and commission income minus fee and commission expense.
LLP – loan loss provisions – an expense set aside as an allowance for bad loans.
NPL –non-performing loan –loans that are in default or close to be in default.
Cost/Income – operating expenses divided by total banking revenue.
ROE –return on equity – net income (or adjusted net income) divided by the average shareholder s’ equity.
ROA – return on assets – net income (or adjusted net income) divided by the average assets.
EBIT – earnings before interests and tax.
EBITDA – earnings before interests, tax, depreciation and amortization.
EPS – earnings per share – the net income (or adjusted net income divided by the number of shares out standing.
P/E – price to earnings ratio – price divided by earnings per share.
PEG – P/E ratio divided by the annual EPS growth, usually over a certain per iod of time.
CAGR – compound annual growth rate.
BVPS – book value per share, the book value of the Company’s equity divided by th e number of shares outstanding.
P/BV – price to book value - price divided by the BVPS.
DPS – dividend per share – dividend of a given year divided by the number of shares outstanding.
DY – dividend yield – dividend of a given year divided by the current price.
DDM – dividend discount model – a fundamental method of valuation based on the assumption that t he value of stock equals the sum of all discounted future div idends.
FV – Fair Value, calculated based on valuation methods outlined in th e document.
The author of this document has no conflict of interest wit h the company that is the subject of this document. The point of view expressed in the do cument reflects the personal
opinion of the author of the document on the analyzed comp any and its financial instruments. Investors should be aware that flexible part of the author’s compensa tion may depend
on general financial performance of IPOPEMA Securities S.A.
IPOPEMA Securities S.A. shall act with due diligence, honestly, fairly, pr ofessionally and in accordance with the provi sions of the applicable law.
IPOPEMA Securities S.A. does not guarantee achieving the investor’s investment obj ective, the performance of company or prospective prices referred to herein.
When applying ratings for companies following criteria are used wi th regards to the difference between IPOPEMA’s FV and company’s price at the date o f recommendation:
Rating Difference between FV and price at recommendation
Buy Above 10% Hold In between (and including) -10% and 10% Sell Below -10%
IPOPEMA Research - Distribution by rating category (April 1 – June 30, 2020)
Buy 23 55% Hold 11 26% Sell 8 19%
Total 42 100%
Rating History – Cyfrowy Polsat
Date Recommendation Fair Value Price at recommendation Author 07/06/2018 BUY PLN 28.00 PLN 24.9 8 Marcin Nowak
09/01/2019 BUY PLN 26.20 (adjusted on
28/06/2019 to PLN 25.27 by PLN 0.93 DPS PLN 22.40 Marcin Nowak
12/08/2019 HOLD PLN 28.10 PLN 28.80 Marcin Nowak 09/09/2020 BUY PLN 33.00 PLN 26.00 Marcin Nowak
Rating History – Orange Polska
Date Recommendation Fair Value Price at recommendation Author 07/06//2018 SELL PLN 4.35 PLN 5.07 Marcin Nowak 09/01/2019 SELL PLN 4.40 PLN 5.13 Marcin Nowak 12/08/2019 HOLD PLN 6.15 PLN 6.38 Marcin Nowak 09/09/2020 HOLD PLN 7.50 PLN 7.085 Marcin Nowak
Rating History – Play Communications
Date Recommendation Fair Value Price at recommendation Author 07/06/2018 SELL PLN 20.00 PLN 25.98 Marcin Nowak 16/08/2018 HOLD PLN 19.30 PLN 20.38 Marcin Nowak
09/01/2019 SELL PLN 15.50 (adjusted on 30/04/2019 to PLN 14.05 by PLN 1.45 DPS PLN 19.66 Marcin Nowak
12/08/2019 SELL PLN 26.20 (adjusted on
30/04/2020 to PLN 24.55 by
PLN 1.65 DPS PLN 29.96 Marcin Nowak
09/09/2020 BUY PLN 35.00 PLN 28.12 Marcin Nowak
Rating History – Netia
Date Recommendation Fair Value Price at recommendation Author 07/06/2018 HOLD PLN 5.10 PLN 4.95 Marcin Nowak 09/01/2019 HOLD PLN 5.25 PLN 5.15 Marcin Nowak 12/08/2019 BUY PLN 5.35 PLN 4.60 Marcin Nowak 09/09/2020 BUY PLN 5.10 PLN 4.45 Marcin Nowak
Treść w podglądzie może zawierać błędy powstałe podczas konwersji plików pdf.