trevi cr 29nov2006 - trevi finanziaria industriale · banca akros, nell’ultimo anno, ha...

Company report

Italy 30 November 2006

Trevi Buy(unchanged)

29/11/2006

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Nov 05 Dec 05 Jan 06 Feb 06 M ar 06 Apr 06 M ay 06 Jun 06 Jul 06 Aug 06 Sep 06 Oct 06 Nov 06

TREVI M ibtel (Rebased)

Source: Datastream

Benchmark rebased to stock price

EUR 10.30

EUR 10.30Target Price

Price

Construction & Materials

EUR 9.00

Accounting Standard/Since IFRS/2005

Reuters/Bloom berg TFI.MI/TFI IM

(EUR) 12/04 12/05 12/06e 12/07e 12/08eSales (m) 366 497 633 755 901EBITDA (m) 41.7 55.3 84.1 106.5 133.3EBIT (m) 18.4 28.7 54.9 69.2 84.3Net profit (reported) (m) 2.6 12.8 23.3 30.2 38.2Net debt/(cash) (m) 148 126 152 162 140EPS (adj.) 0.04 0.20 0.37 0.47 0.60CFPS 0.40 0.62 0.82 1.06 1.36BVPS 1.21 1.52 1.86 2.31 2.88DPS 0.02 0.03 0.03 0.03 0.03Int.cover(EBITDA/Fin.int) 5.6 6.2 7.3 8.1 9.7EV/EBITDA 5.29 5.59 8.97 7.13 5.51EV/EBIT 12.0 10.8 13.7 11.0 8.7P/E (adj.) 26.3 13.0 24.5 19.0 15.0Dividend yield (%) 1.4 0.3 0.3 0.3 0.3ROCE (%) 4.7 7.3 11.7 12.9 15.0

Share price on 29/11/2006 (EUR) 9.00Target price (EUR) 10.30Market capitalisation (EURm) 576.0No. of shares (m) 64.0Free float 43.0%Daily avg. no. trad. sh. 12 mth 490,000Daily avg. trad. vol. 12 mth (m) 2.95Price high 12 mth (EUR) 9.00Price low 12 mth (EUR) 3.62Abs. perf. 1 mth 19.5%Abs. perf. 3 mth 42.5%Abs. perf. 12 mth 135.6%

Local index MibtelDJ Stoxx or EuroStoxx 50 NoEPS 08-06 CAGR 27.7%

Shareholders: Trev i Family 57%;

Track record and competitive advantage of know-how: key for a soaring growth

• Thanks to its track-record and reliability, the group is acquiring increasingly important newand ever larger orders in the Foundation sector. We believe that Trevi Group could increase its orders even more in the coming years both in foundation works and in foundation equipment. Therefore, we increase our 2006e and 2007e Foundation division sales by +2.6%and +6%.

• In the Drilling sector, the strong increase in the order backlog shows that the oil market recognises the competitive advantage of the technological know-how Trevi Group can currently boast over its peers. Therefore, based on the market’s interest in the group’s products and on oil rig demand, which continues to remain strong, we estimate that Drillmec, the drilling equipment division, will retain the same growth rates in 2007 as seen in 2006. As such, we increase our 2007e Drilling equipment division sales from EUR 144m toEUR 159.4m.

• Buy Rating confirmed: based on our valuation, we confirm our Buy recommendation and weset a Target Price of EUR 10.30 per share.

Paola Saglietti +39 02 4344 4287 [email protected] Jacopo Majocchi +39 02 4344 4237 [email protected]

Trevi

CONTENTS

Company profile .....................................................................................................3 SWOT Analysis...........................................................................................................3

Very positive Q3 06 results....................................................................................4 The growth continues….........................................................................................5

Strong know-how and high reliability drive growth ......................................................5 Indirect convertible bond to fuel business growth .......................................................6

Valuation..................................................................................................................7 Trevi: Summary tables .........................................................................................10

Il presente documento è stato redatto da Paola Saglietti (socio AIAF) e Jacopo Majocchi che svolgono funzioni di analista presso Banca Akros SpA ("Banca Akros"), soggetto responsabile della produzione del documento stesso. Banca Akros - banca autorizzata anche alla prestazione di servizi di investimento con provvedimento di Banca d’Italia del 14/11/1996, iscritta all’albo delle Banche al n. 5328, appartenente al Gruppo Bipiemme Banca Popolare di Milano (il “Gruppo”) e soggetta all’attività di direzione e coordinamento di Banca Popolare di Milano (la “Capogruppo”) - ha prodotto il presente documento per i propri clienti istituzionali (“operatori qualificati” così come definiti all’art. 31 del Regolamento Consob in materia di Intermediari). Esso è distribuito dal giorno 30 novembre 2006. Banca Akros, ai sensi degli artt. 69 quater e quinquies del Regolamento Consob in materia di Emittenti, dichiara di non avere propri rilevanti interessi finanziari negli strumenti finanziari oggetto del presente documento ovvero rilevanti conflitti di interesse derivanti da rapporti con l’emittente detti strumenti finanziari (l’”Emittente”) ovvero, più in generale, derivanti da operazioni descritte nel presente documento. Banca Akros dichiara di non essere a conoscenza della sussistenza di rilevanti interessi finanziari e/o di rilevanti conflitti di interesse della Capogruppo nei confronti dell’Emittente. Gli analisti Paola Saglietti (socio AIAF) e Jacopo Majocchi, che hanno redatto il presente documento, hanno maturato una significativa esperienza presso Banca Akros e altri intermediari. Gli analisti e i loro familiari non detengono Strumenti Finanziari emessi dall’Emittente, né svolgono ruoli di amministrazione, direzione o consulenza per l’Emittente, né gli analisti ricevono bonus, stipendi o altre forme di retribuzione correlate, direttamente o indirettamente, al successo di operazioni di investment banking. Banca Akros, nell’ultimo anno, ha pubblicato sulla società oggetto di analisi tre studi in data 23 e 24 novembre 2006. La Banca rende disponibili ulteriori informazioni, ai sensi delle disposizioni Consob di attuazione dell’art. 114, comma 8 del D.Lgs 58/98 (TUF) ed in particolare ai sensi dell’art. 69 quinquies, comma 2, del Regolamento Emittenti, presso il proprio sito internet (si veda http://bancaakros.webank.it/akros/sito.nsf/homepage). Le informazioni e le opinioni contenute in questo documento si basano su fonti ritenute attendibili. La provenienza di dette informazioni e il fatto che si tratti di informazioni già rese note al pubblico è stata oggetto di ogni ragionevole verifica da parte di Banca Akros. Banca Akros tuttavia, nonostante le suddette verifiche, non può garantire in alcun modo né potrà in nessun caso essere ritenuta responsabile qualora le informazioni alla stessa fornite, riprodotte nel presente documento, ovvero sulla base delle quali è stato redatto il presente documento, si rivelino non accurate, complete, veritiere ovvero corrette. Il documento è fornito a solo scopo informativo; esso non costituisce proposta contrattuale, offerta o sollecitazione all’acquisto e/o alla vendita di strumenti finanziari o, in genere, all’investimento, né costituisce consulenza in materia di investimenti. Banca Akros non fornisce alcuna garanzia di raggiungimento di qualunque previsione e/o stima contenuto nel documento stesso. Inoltre Banca Akros non assume alcuna responsabilità in merito a qualsivoglia conseguenza e/o danno derivante dall’utilizzo del presente documento e/o delle informazioni in esso contenute. Le informazioni o le opinioni ivi contenute possono variare senza alcun conseguente obbligo di comunicazione in capo a Banca Akros, fermi restando eventuali obblighi di legge o regolamentari. E’ vietata la riproduzione e/o la ridistribuzione, in tutto o in parte, direttamente o indirettamente, del presente documento, non espressamente autorizzata.

Trevi

Company profile The Group operates in four different divisions:

• Foundation rigs: plants and rigs that are used for foundation engineering that are designed and manufactured by SOILMEC.

• Foundation services: special foundations, soil consolidation for infrastructures such as bridges, railways, dams, industrial systems and tunnels, all realized by TREVI through the rigs manufactured by Soilmec.

• Drilling rigs (hydraulic and conventional rigs): drilling rigs that are used for hydrocarbons, designed and manufactured by DRILLMEC.

• Drilling services: well drilling for the extraction of hydrocarbons and for water research, realized by PETREVEN thanks to the use of drilling rigs manufactured by Drillmec.

Trevi Group’s structure

TREVI - Finanziaria Industriale S.p.A.Drilling and Foundation Specialist

Special foundation rigs Oil drilling rigs Oil drilling services

Full package oil drilling mechanical rigs

Ground Engineering 76,9% (*) Drilling 23,1% (*)

Special foundation services

Foundation Services 49,8%Foundation Equipments 27,1%

Drilling Services 4,8%Drilling Equipments 18,3%

• Deep Foundations

• Geotechnical Works

• Marine Works

• Tunnel Consolidation

• Automated Car Parks

• Hydraulic Rotary Rigs

• Cranes

• Jet Grouting

• Tunnel Consolidation

• Casing Oscillators

• Extractors

• Drilling Tools

• etc.

• Hydraulic Rigs (HH Series)

• Derricks & Offshore

• Masts & Substructures

• Mobile Drilling Rigs

• Hydraulic Top Drives

• Triplex Mud Pumps

Source: Company Presentation (*) as of 30/09/2006

SWOT Analysis STRENGTHS WEAKNESSES High technological level thanks to constant high investments to

develop technologies and innovative products; High entry barriers: in the foundation division, represented by a

solid track record, and in the drilling division, represented by its innovative hydraulic rigs;

Vertical integration among the various business divisions as competitive advantage;

High geographical diversification.

Currency risk: particularly in the drilling division, a strong and sudden euro/dollar exchange could negatively weigh upon the operating profitability.

Country risk: particularly in the drilling and foundation service divisions, the group mainly works in countries that are characterized by growing economies but also by strong instability.

High capital intensive business: because of the high level of production resources, two equipment divisions (Drillmec and Soilmec) are decidedly capital intensive.

Potential problems related to the growing Group’s size (management, technicians, etc).

OPPORTUNITIES THREATS Strong demand still expected for the coming years both in the

foundation sector and in the drilling sector. Cyclical businesses: the Group business areas are closely linked to

the trend in the construction and building sector and to the oil sector trend.

Trevi

Very positive Q3 06 results The results posted a good performance compared to the same period of 2005, with double digit growth for both revenues and margins.

9M net revenues were up by 33.4% Y/Y to EUR 469m (vs. Akros estimates of EUR 466m). All the Group’s business areas showed good performance, but this strong growth is largely due to the equipment divisions, which were up by 54.5% Y/Y.

Operating leverage translated into much higher margins: 9M EBITDA was EUR 61.8m (+57.9% Y/Y), at 13.2% on net sales and EBIT was EUR 41.6m (+129.6% Y/Y) at 8.8% on net sales.

TREVIGROUP: 9M ‘06a results

9M 05a 9M 06a %ChgSales 351.6 469.0 +33.4%EBITDA 39.1 61.8 +57.9%Margin % 111.1% 13.2%EBIT 18.1 41.6 +129.6%Margin % 5.1% 8.9%Source: Company Data

The order book reached EUR 613.4m and showed clear improvement compared to June 2005 (+39.4%).

TREVI GROUP: 9M Sales breakdown

by division

Drilling Services5% Drilling Machines

18%Foundation Machines

27%

Foundation Works50%

by geographical area

Rest of World1%

Far East6%

North America15%

South America8%

Middle East25%

Africa16%

Europe (less Italy)13%

Italy16%

Source: Company data

Trevi

The growth continues…

Strong know-how and high reliability drive growth

Foundation division The foundation business continues to show significant growth rates even for the coming years particularly thanks to the heavy investments expected from the emerging countries, which are today benefiting from large cash flows deriving from oil drilling and raw material mining, and to important infrastructure construction works in industrialized countries.

Thanks to its track-record and reliability, the group is acquiring increasingly important new and ever larger orders in the Foundation sector (we remind investors of the last joint venture signed by Trevi and the US Kiewit Construction for the construction of the wall for the Transport Center of the World Trade Center and for three new towers which will be built on Ground Zero, total amount of USD 34m - Trevi 50% or USD 17m, which we believe is very positive from a strategic point of view as it will add to the Group’s already important track record in acquiring new orders in future projects in the US).

Based on the foregoing consideration, we believe that Trevi Group could increase its orders in the coming years, both in the foundation works and in foundation equipments.

Therefore, we increase our 2006e and 2007e Foundation division sales by +2.6% and +6%.

Drilling division In the drilling businesses, Trevi Group shows a strong increase in order backlog: in the drilling service, we remind investors of the significant contracts signed by the Petreven subsidiary with the primary oil companies Petrobras, Chevron-Texaco and Repsol in the last few years. In the drilling equipment, we highlight the important contracts acquired by the Drillmec subsidiary in Africa, the Persian Gulf, USA.

Following these initial agreements, the Group’s innovative hydraulic oil drilling equipment has received overwhelming approval. The company has also started a campaign to present this new technology to all the large oil companies in the world. This campaign has already drawn a great deal of interest, especially the news that Trevi, through its drilling equipment subsidiary Drillmec, has entered into an agreement with Al-Jumaa in Kuwait. This partnership is intended to develop the presence of the Group’s new technology in the drilling sector in Kuwait.

The above mentioned factors show that the oil market recognises the competitive advantage of the technological know-how Trevi Group can currently boast over its peers.

Therefore, based on the interest in this market and on oil rig demand, which continues to remain strong, we estimate that Drillmec, the drilling equipment division, will retain the same growth rates in 2007 as seen in 2006. As such, we increase our 2007e Drilling equipment division sales from EUR 144m to EUR 159.4m.

Trevi

The following table summarises our new 2006-2007 forecasts.

TREVI GROUP – old and new estimates

PROFIT & LOSS (Euro mn) 2006

old est 2006

new est 2007

old est 2007

new est Sales 611.4 632.9 706.9 755.1 EBITDA 78.6 84.1 96.5 106.5 EBITDA margin 12.8% 13.3% 13.7% 14.1% Depreciation & amortization (31.3) (29.2) (36.6) (37.3) EBIT 47.3 54.9 60.0 69.2 EBIT margin 7.7% 8.7% 8.5% 9.2% Net financial income(charges) (9.2) (11.5) (9.4) (13.2) Extraordinary items 0.0 0.0 0.0 0.0 Pre-tax profit 38.1 43.5 50.6 56.1 Taxes (16.8) (19.2) (22.3) (24.7) Tax rate 44.0% 44.0% 44.0% 44.0% Minorities 0.9) (0.9) (1.1) (1.1) Net profit 20.4 23.5 27.2 30.3 Net margin 3.3% 3.7% 3.8% 4.0%

Source: Banca Akros estimates

Our estimates do not factor in any considerably sized contracts given the low visibility and the highly uncertain timing of such deals. Therefore, if the group should acquire an order to substantially change our P&L estimates, we may have to revise our valuation upwards.

Indirect convertible bond to fuel business growth

In the light of the strong increase in the above mentioned order backlog, the BoD endorsed the issue of an indirect convertible bond with the exclusion of the option right and which is due on 30th November 2011. The capital increase will be realized by issuing up to 6,194,690 million new shares (9.68% of current shareholders’ capital) with a nominal value of EUR 0.5 each.

The conversion price has been fixed at EUR 11.30 per share (a premium of 30% on the official market price on 23rd November 2011).

The annual fixed coupon is 1.5%. The bond will be convertible as of the 41st day after the issue day.

This capital increase will finance further strong development in both business areas (Foundation and Drilling), which could require substantial investments.

In our opinion, this indirect convertible bond issue is positive, because it will allow Trevi to access the capital market at attractive conditions. We believe that these financial resources could be utilised to finance the new important orders to be acquired shortly.

Trevi

Valuation Our valuation of Trevi Group is based on a DCF Model and takes a peer’s multiples comparison into account.

DCF Model In the light of our estimates outlined in the paragraph above, and based on our DCF model, we set a target price of EUR 10.30 per share, showing an upside of above 13.0% on the current share price.

The Wacc is determined by assuming a target capital structure with debt covering 25% of net capital employed. Beta is at 1.1, reflecting that there is a certain amount of penalisation on mid/small caps in light of their modest liquidity. Terminal growth, at 2.0%, looks appropriate to reflect the considerable potential growth rates both in the foundation sector and in the drilling sector.

Our assumptions are given in the following tables.

TREVI Group: WACC calculation

Risk free rate 4.5% Beta 1.1 Market risk premium 4.0% Cost of Equity 8.9% % equity 75.0% Cost of Debt (gross) 7.0% Tax rate 33.0% Cost of Debt (net) 4.7% % debt 25.0% WACC 7.85%

Source: BANCA AKROS estimates

TREVI Group: DCF analysis

Perpetual Growth Rate 2.0%WACC 7.85%Terminal Value 1,082.0Discounting Rate of Terminal Value 0.64Discounted Terminal Value 687.6Cumulated DFOCF 108.0Financial Assets as of 31/12/05 2.7Enterprise Value (EUR mn) 798.4Net Financial Debt (EUR m) (126.0)Minorities market value (EUR m) (13.2)Equity Value (EUR m) 659.2Value per share (EUR) 10.30Source: BANCA AKROS estimates

Trevi

SOP based on a peers multiple comparison for each Group Division Our SOP valuation, based on a peers multiple comparison for each Group Division, shows an Enterprise Value of EUR 801m (a Fair Value of EUR 10.02 per share), calculated on the 2007e EV/EBITDA.

In particular, each division (Foundation Services, Foundation Rigs, Drilling Rigs, Drilling Services) is valuated through a specific group of peer multiples.

We did not apply any discount because: in the Foundation divisions, the company is one of the four world leaders and, in the Drilling divisions, the group shows sales and EBITDA growth rates higher than its competitors thank to its competitive advantage in technological know-how.

The peer analysis shows a lower value than the DCF Model, given that the EV/EBITDA ‘07e multiple does not factor in the drilling sector development which, based on our estimates, will increase from 38% on Group EBITDA in 2006e to 50% on Group EBITDA in 2010e.

TREVI GROUP: Foundation services peer multiples

07e EV/EBITDA Astaldi 5.6x Impregilo 6.5x Bauer 5.8x Keller 7.0x Average 6.2x

Source: Bloomberg data and BANCA AKROS estimates

TREVI GROUP: Foundation rigs peer multiples

07e EV/EBITDA Caterpillar 10.7x Atlas Copco 9.0x Average 9.9x


TREVI GROUP: Drilling rigs peer multiples

07e EV/EBITDA Transocean 7.6x Rowan 4.2x National Oilwell 7.2x Smedvig 10.2x Cooper Cameron Corporation 7.9x Tenaris 9.6x Socotherm 8.5x Average 7.9x


Trevi

TREVI GROUP: Drilling services peer multiples

06e EV/EBITDA Global santa Fè 5.9x Saipem 10.4x Precision Drilling 6.2x Pride International 4.5x Average 6.7x


TREVI GROUP: SOP on 2007 EV/EBITDA multiples (EUR m)

EV 07 EV/ EBITDA07e EBITDA

Division% on Group

EBITDA07e EBITDA

marginFoundation works 303.7 6.2x 48.6 45% 13%Drilling services 90.7 6.7x 13.5 13% 30%Drilling Equipement 155.8 6.1x 25.5 24% 13%Foundation equipment 250.9 12.7x 19.8 18% 12%Total 801.1 107.4 100%Net debt (151)Minorities (5.0)Equity Value (SOP) 645.0Sh. Outs. 64,000FAIR VALUE 10.08Source: Bloomberg data and BANCA AKROS estimates

Trevi

Trevi: Summary tables P R OF IT & LOSS (EUR m) 2003 2004 2005 2006e 2007e 2008e C A GR 08/ 03Sales 366.6 366.4 496.7 632.9 755.1 901.4 19.7%EB IT D A 41.7 41.7 55.3 84.1 106.5 133.3 26.2%Depreciation, Provisions & Impairment -24.6 -23.2 -26.6 -29.2 -37.3 -49.0EB IT 17.1 18.4 28.7 54.9 69.2 84.3 37.6%Net Financial Interest -10.1 -7.4 -9.0 -11.5 -13.2 -13.7Other Financials -0.1 -1.4 5.6 0.0 0.0 0.0Associates 0.0 0.0 0.0 0.0 0.0 0.0Non Recurrent Items -2.2 0.0 0.0 0.0 0.0 0.0Earnings B efo re T ax (EB T ) 4.7 9.6 25.3 43.4 55.9 70.6 71.9%Tax -3.2 -6.4 -11.6 -19.2 -24.7 -31.1Tax rate 67.3% 66.9% 45.8% 44.0% 44.0% 44.0%Discontinued OperationsM inorities 0.0 -0.6 -0.9 -0.9 -1.1 -1.3N et P ro f it ( repo rted) 1.4 2.6 12.8 23.3 30.2 38.2 92.4%Net Profit (adj.) 2.3 2.6 12.8 23.5 30.3 38.3C A SH F LOW (EUR m)Net profit (reported) + M inorities 1.5 3.2 13.7 24.2 31.3 39.5Non cash items 24.7 24.7 21.1 29.2 37.3 49.0C ash F lo w 26.1 27.8 34.8 53.4 68.6 88.5 27.6%Change in Net Working Capital 4.8 -9.2 14.2 -18.1 -16.2 -19.4Capex -22.0 -25.8 -28.0 -55.0 -55.0 -40.0Operat ing F ree C ash F lo w (OpF C F ) 9.0 -7.1 20.9 -19.6 -2.6 29.1 26.6%Net Financial Investments 0.0 0.0 0.0 0.0 0.0 0.0Dividends 0.0 0.9 1.0 1.6 1.6 1.6Other (incl. Capital Increase) -13.4 22.1 5.3 5.1 5.8 6.0F ree C ash F lo w -4.5 16.0 27.2 -12.9 4.8 36.7 R +NOPLAT 10.6 11.4 17.8 34.0 42.9 52.2B A LA N C E SH EET & OT H ER IT EM S (EUR m)Net Tangible Assets 126.7 154.4 167.8 199.7 223.3 220.3Net Intangible Assets (ex Goodwill) 3.1 3.8 4.6 4.6 4.6 4.6Goodwill 0.0 0.0 0.0 0.0 0.0 0.0Net Financial Assets & Other 4.1 2.0 2.7 2.7 2.7 2.7T o tal F ixed A ssets 134.0 160.2 175.2 207.0 230.7 227.6 11.2%Net Working Capital 70.0 81.3 67.1 85.1 101.4 120.7Total capital invested/employed 199.9 239.5 239.5 289.4 329.3 345.6Shareho lders Equity 66.8 77.2 97.2 119.1 147.8 184.5 22.5%M inorities Equity 3.5 3.7 4.8 4.9 5.0 5.0N et D ebt 113.4 148.0 126.0 152.3 162.1 140.5 4.4%Provisions 10.7 0.0 0.0 0.0 0.0 0.0Other Liabilities 9.6 12.6 14.2 15.9 17.1 18.3T o tal M arket C ap 52.5 67.1 167.1 576.0 576.0 576.0Enterprise Value (EV adj.) 183.5 220.3 309.0 753.8 759.4 734.3M A R GIN S A N D R A T IOSSales growth 11.6% -0.1% 35.6% 27.4% 19.3% 19.4%EBITDA growth 50.8% 0.0% 32.8% 52.0% 26.7% 25.1%EBIT growth 242.9% 8.0% 55.8% 91.3% 26.0% 21.8%EB IT D A margin 11.4% 11.4% 11.1% 13.3% 14.1% 14.8%EBIT margin 4.7% 5.0% 5.8% 8.7% 9.2% 9.3%D ebt/ Equity (gearing) 161.5% 183.0% 123.5% 122.8% 106.1% 74.1%Debt/EBITDA 2.7 3.6 2.3 1.8 1.5 1.1Interest cover (EBITDA/Fin.interest) 4.1 5.6 6.2 7.3 8.1 9.7ROCE 5.2% 4.7% 7.3% 11.7% 12.9% 15.0%WACC 7.8% 7.8% 7.8% 7.8% 7.8% 7.8%R OC E/ WA C C 0.7 0.6 0.9 1.5 1.6 1.9EV/CE 0.90 0.91 1.28 2.58 2.29 2.11OpFCF/CE 4.4% -2.9% 8.6% -6.7% -0.8% 8.3%EV/Sales 0.50 0.60 0.62 1.19 1.01 0.81EV/ EB IT D A 4.4 5.3 5.6 9.0 7.1 5.5EV/EBIT 10.8 12.0 10.8 13.7 11.0 8.7P / E (adj.) 23.1 26.3 13.0 24.5 19.0 15.0P/CF 2.0 2.6 4.2 10.9 8.5 6.6P/BV 0.8 0.9 1.7 4.8 3.9 3.1OpF C F yield 17.1% -10.6% 12.5% -3.4% -0.5% 5.0%Payout ratio 61.4% 37.6% 12.5% 6.8% 5.3% 4.2%D ividend yield (gro ss) 1.8% 1.4% 0.3% 0.3% 0.3% 0.3%P ER SH A R E D A T A (EUR )EPS (reported) 0.02 0.04 0.20 0.37 0.47 0.60 89.6%EP S (adj.) 0 .04 0.04 0.20 0.37 0.47 0.60 75.9%CFPS 0.41 0.40 0.62 0.82 1.06 1.36 27.3%BVPS 1.04 1.21 1.52 1.86 2.31 2.88 22.5%D P S 0.02 0.02 0.03 0.03 0.03 0.03 10.8%

Source: Company, Banca Akros estimates2005 restated as IFRS proforma

Trevi

Recommendation system

From the 18th October 2004, the Members of ESN use a New Recommendation System.

The new 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) over a 6 months 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).

Meaning of each rating or recommendation:

Banca Akros Ratings Breakdown • Buy: the stock is expected to generate a total return of over 15% during the

next 6 months time horizon.

• Accumulate: the stock is expected to generate a total return of 5% to15%

during the next 6 months time horizon.

• Hold: the stock is expected to generate a total return of 0% to 5% during the

next 6 months time horizon

• Reduce: the stock is expected to generate a total return of 0 to -15% during the


• Sell: the stock is expected to generate a total return below -15% during the


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trevi cr 29nov2006 - trevi finanziaria industriale · banca akros, nell’ultimo anno, ha...

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