Gowex G x

Spa ain/ Telecomm munications

F Flash note e

Inv vestment Research

Re eason: Estimat tes Revision

30 Oct tober 2013

Bu uy
from m Accumulate

WiFi y m ucho ms s. Que el espectcu e lo contin e.

8.95 12.50 5.20
GOW.MC/GOW SQ

Sha are price: EU UR

closing g price as of 29/10/2013 3

Tar rget price: EUR E

from m Target Price: EUR
Reuter rs/Bloomberg

Daily avg. no. trad. sh. 12 mth Daily avg. trad. vol. 12 mth m (m) Price high 12 mth (EUR) ) Price low 12 mth (EUR) Abs. perf. 1 mth Abs. perf. 3 mth Abs. perf. 12 mth

144,323 1,266.09 9.70 2.24 54.3% 61.3% 259.5%

En esta no ota de actu ualizacin, repasamos las perspec ctivas de Gowex, G consecucin n de nuevos acuerdos, a eje ecucin de su u plan estrat gico y explo oramos potenciales lneas de ne egocio. Revis samos VT a 12,5 EUR/ac ccin (5,2 EU UR/acc. anterior), y recomendam mos Compra ar (potencia al +40%). La a evolucin de la cotizacin (+ +260% en 12m, x13 desde su salida a al MAB en 20 010) ha reflej jado el fuerte crecim miento en ben neficios y un re-rating. No o obstante, co otiza a mltip plos de 5,5x EV/EBIT TDA 2015e, que q nos sigu uen parecien ndo atractivo os, y no inco orporan totalmente e el potencial de e crecimiento o de la empre esa. We2: Mo odelo coope erativo. Lnea a de negociio disruptiva a y aumento o de la capilarid dad: La idea se s basa en co onvertir los WiiFI hotspots privados (come ercios y el nmero de puntos de ac hogares) ) en pblicos compartidos, aumentando e cceso a los que p podrn accede er los usuarios s registrados e en We2. A dif ferencia del co oncepto compara able de FON, se podr utilizar cualquie er router WiF Fi, y la app We2 W es gratuita. We2 se lanz zar el 15-dic-13 en Nueva a York, donde e habr punto os WiFi equipado os con We2 en >500 comer rcios. El objetiivo es que a principios p de 2014 2 se sumen lo os WiFis priva ados de hoga ares a travs de acuerdos s con operado oras de telecomu unicaciones (modelo ( coo operativo), q que a camb bio obtienen: 1) la posibilida ad de descarg gar trfico de datos d a redes s WiFi; 2) nuevas vas de in ngresos (publicida ad y otras v as de monet tizacin). Con n el desarrollo o de We2, GOWEX G crece y refuerza su escalabilidad, e con una pro opuesta difere enciada de co onsumo masivo q que le conviert te en un socio o estratgico o para los ope eradores. Acuerdo o con ZTE par ra el desarrollo de proyecto os Wireless Sm mart City. Con ntempla que: 1) G GOWEX ofrec ce su modelo de negocio ( (plataformas, servicios, ges stin de usuarios, , roaming y offloading); o 2) ZTE ser el proveedor de e equipos pre eferente GOWEX en la imple ementacin de d sistemas de conectividad inteligen nte, en ciudades s chinas y en todo t el mundo o. No se han o ofrecido detalles econmico os, pero se eleva a significativa amente la visi ibilidad del p potencial en China C y Asia. Dentro del XII P Plan Quinquen nal (2011-15), el gobierno c chino tiene com mo objetivo co onvertir las princiipales 100 ciu udades del pas en ciudade es inteligentes. ZTE es una a de las compaa as selecciona adas por el go obierno Chino o (ya est des sarrollando pro oyectos en Beijin ng, Shangai o Xiamen). Creemos que el acuerdo permitir a GOWEX G acelerar su crecimient to y consecuc cin de objetiv vos, as como o definir un es stndar en el des sarrollo de las ciudades inte eligentes. Cifras a 6m13: ingre esos +40%, EBITDA E +55% % a 12,5 M EU UR. La compa aa no desglosa a mrgenes operativos o por r divisin, si bien apunta a que ingeniera se sitan en n media con el grupo, y netw work (roaming g y offloading) por encima. Creemos s que los lt timos resulta ados, acuerd dos y desarr rollos aumen ntan la visibilida ad en el inc cremento de masa crtica a de Gowex, la consecuc cin de objetivos s (llegar al 20% % de la poblacin mundial y a 300 ciuda ades antes de e 2020), su apalan ncamiento op perativo y crec cimiento de ca ara a prximos s aos. Desta acamos: 1) la tec cnologa propi ietaria; 2) aum mento de ma asa crtica / efecto e red (ciu udades, operador res, usuarios) y 3) el model lo de negocio neutral (bene eficios para to odos los actores). Gowex se diferencia frente a otr ras alternativ vas/promotor res de ciudades s WiFi, por su posicionamiento neu utral, que permite dar ent trada a ayuntam ientos, anunc ciantes (public cidad geoloca alizada), empr resas que utilizan la infraestru uctura para ab baratar sus costes, etc. a tra avs de proye ectos llave en mano.
+3 34 91 4367818 dcabeza@b bankia.com

Marke et capitalisation (E EURm) Curre ent N of shares (m) Free float

Key financials (EUR) Sales (m) EBITD DA (m) EBITD DA margin EBIT (m) ( EBIT margin m Net Pr rofit (adj.)(m) ROCE E Net de ebt/(cash) (m) Net De ebt Equity Net De ebt/EBITDA Int. co over(EBITDA/Fin.int) EV/Sa ales EV/EB BITDA EV/EB BITDA (adj.) EV/EB BIT P/E (adj.) P/BV OpFC CF yield Divide end yield EPS (a adj.) BVPS DPS 12/12 114 34 29.6% 25 21.7% 20 76.5% (29) -0.4 -0.9 (112.1) 1.2 3.9 3.9 5.4 8.1 2.3 0.3% 0.4% 0.28 0.96 0.03 12 2/13e 177 50 28 8.4% 41 22 2.9% 30 49.0% (30) -0.3 -0.6 (122.8) 3.5 12.3 12.3 15.2 21.3 6.5 0 0.6% 0 0.7% 0.42 1.38 0.06

647 72 37%
12/14e 275 80 29.0% 64 23.2% 48 46.3% (23) -0.2 -0.3 (222.8) 2.3 7.8 7.9 9.8 13.6 4.4 -0.4% 1.1% 0.66 2.03 0.10

vvdsvdvsdy

10

2
Oct 12 Nov 12 Dec 12 Jan 13 Feb 13 M 13 Mar Apr 13 May 13 Jun 13 Jul 13 Aug 13 Sep 13 Oct 13

Source: Factset

GOWEX

MAB (Rebased)

Share eholders: Managem ment team 53%; Alv vasebi 10%;

Analyst(s): Da avid Cabeza Ja areo

For co ompany description ple ease see summary tab ble footnote

Produced d by:

All ESN re esearch is availlable on Bloom mberg (ESNR ), Thomson-Reuters, Capit tal IQ, FactSet

ed by the Members of ESN Distribute

(see last pag ge of this report)

Gowex

Cmo ser Gowex dentro de 5-7 aos? El potencial de los servicios a las ciudades inteligentes. Adems de los negocios actuales (ingeniera/network/media), creemos que las lneas de negocio de Smart services (mercado M2M, conectividad) y disruptivas (We2) tendrn un creciente peso en los resultados, compensando la previsible cada de negocios ingeniera/consultora y roaming. La oferta de ms servicios a la ciudad utilizando las redes Wifi para las comunicaciones maquina a mquina (en non cellular devices, sin SIM), constituye una oportunidad para Gowex que creemos podr monetizar gracias a su posicionamiento. Revisamos al alza estimaciones (+36% EBITDA 2014-15e), incorporando nuevos proyectos y acuerdos, con mayor nmero de ciudades y tamao de las mismas. Nuestras estimaciones anteriores incorporaban 135 ciudades a 2017e (vs. 65 ciudades a finales de 2012 y 80 actuales). Las nuevas estimaciones incorporan 200 ciudades a 2017 (todas las nuevas ciudades fuera de Espaa), que comparan con el objetivo de GOW de 300 grandes ciudades en 2020. Estimamos una TACC 2012-15e del 50% en ventas, +48% en EBITDA del 48% y +56% en B.Neto. Gowex. Sensitivity to Wi-Fi cities development
2014e 228.0 275.1 20.7% 62.9 79.7 26.7% 34.2 47.2 37.9% 41.0 49.5 20.7% 2015e CAGR 12-15e 284.9 36% 386.6 50% 35.7% 75.2 30% 109.5 48% 45.5% 39.1 25% 64.1 56% 64.0% 39.9 25% 54.1 38% 35.7%
Number of cities Sales per city (EURm) Sales Ebitda in % of Sales Ebitda Investments Ebitda Investments Cash on BS P/share EV / EBITDA EV / Sales 2013e 80 2.2 176 28% 49 54 49 54 60 9.0 11.9 3.3 2014e 110 2.5 275 28% 77 54 77 54 9.0 7.3 2.1 2015e 140 2.5 350 28% 98 54 98 54 9.0 5.3 1.5 2016e 170 2.5 425 28% 119 54 119 54 9.0 3.8 1.1 2017e 200 2.5 500 28% 140 54 140 54 9.0 2.6 0.7

Gowex. Estimates adjustment

2012a Old 114.1 Sales New 114.3 Dif.% 0.2% Old 33.8 EBITDA New 33.8 Dif.% 0.0% Old 19.8 Net Profit New 17.0 Dif.% -13.9% Old 20.5 Capex New 20.6 Dif.% 0.2%
Source: ESN Bankia Bolsa estimates

2013e 182.9 176.8 -3.3% 50.9 50.2 -1.4% 29.7 30.0 1.2% 32.9 31.8 -3.3%

Source: ESN Bankia Bolsa estimates

Revisamos al alza la valoracin de Gowex, de 5,2 a 12,5 EUR/accin, tras 1) el ajuste de estimaciones; 2) rebaja de la WACC al 9,1% (vs. 9.5%, positivo track record, aumento de liquidez) y 3) DCF a dic-14. Cotiza a 5,5x EV/EBITDA 2015e y PER 15e de 10x, que nos parecen atractivos y no incorporan totalmente el potencial de crecimiento de GOW. Comprar.
31-Dec-14 2012 114.3 21.8 16.7 25.8 -20.6 -7.9 -2.7 2013e 176.8 40.6 30.0 39.6 -31.8 -4.4 3.5 2014e 275.1 63.7 47.2 63.1 -49.5 -16.5 -2.9 2015e 386.6 86.6 64.1 87.0 -54.1 -19.0 13.8 2016e 519.7 112.1 81.8 112.6 -62.4 -23.0 27.3 2017e 656.6 135.4 97.5 136.7 -65.7 -19.6 51.4 2018e 720.6 127.0 91.4 149.1 -57.6 -11.3 80.2 2018e

GOWEX DCF VALUATION TO CASH FLOW (EUR m) Net sales EBIT NOPLAT Gross operating cash flow Capital expenditure Change in net working capital Cash flow to be discounted WACC & DCF ANALISYS Free risk rate Company risk factor Market risk premium Cost of Equity (Ke) Cost of debt (gross) Normative tax rate Cost of Debt Net (Kd) Target gearing (D/E) % K % Ke WACC Implicit ratios @ FV Price EV / Sales EV / EBITDA PER
Source: ESN Bankia Bolsa

81.8

4.50% 1.15 4.00% 9.10% 5.0% 30.0% 3.50% 0% 100% 9.1% 2011 1.0 0.6x 2.4x 8.6x 2012 2.3 1.2x 4.0x 9.9x

Cumulated DCF Perpetual growth rate (g) Normalised Annual CF Terminal Value at Nominal Year Disc.Rate of Terminal Value NPV Terminal Value Financial assets Enterprise value (EUR m)

128.8 2.0% 82 1,152 0.65 744.8

- Net financial debt (Cash) (13e) - Minorities (estimated value) + Associates

-28 0 0

Equity Market Value (EUR m) Number of shares (m)

901.4 72.31

Fair Value per share (EUR)

873.6 Price (EUR) Potential upside (downside) 2016e 12.5 1.7x 6.1x 11.0x 2017e 12.5 1.3x 5.0x 9.2x

12.5
8.95 39%

Source: ESN Bankia Bolsa estimates

2013e 12.5 4.9x 17.4x 30.0x

2014e 12.5 3.2x 11.0x 19.1x

2015e 12.5 2.3x 8.0x 14.1x

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Gowex

Gowex: Summary tables

PROFIT & LOSS (EURm) Sales Cost of Sales & Operating Costs Non Recurrent Expenses/Income EBITDA EBITDA (adj.)* Depreciation EBITA EBITA (adj)* Amortisations and Write Downs EBIT EBIT (adj.)* Net Financial Interest Other Financials Associates Other Non Recurrent Items Earnings Before Tax (EBT) Tax Tax rate Discontinued Operations Minorities Net Profit (reported) Net Profit (adj.) CASH FLOW (EURm) Cash Flow from Operations before change in NWC Change in Net Working Capital Cash Flow from Operations Capex Net Financial Investments Free Cash Flow Dividends Other (incl. Capital Increase & share buy backs) Change in Net Debt NOPLAT BALANCE SHEET & OTHER ITEMS (EURm) Net Tangible Assets Net Intangible Assets (incl.Goodwill) Net Financial Assets & Other Total Fixed Assets Inventories Trade receivables Other current assets Cash (-) Total Current Assets Total Assets Shareholders Equity Minority Total Equity Long term interest bearing debt Provisions Other long term liabilities Total Long Term Liabilities Short term interest bearing debt Trade payables Other current liabilities Total Current Liabilities Total Liabilities and Shareholders' Equity Net Capital Employed Net Working Capital GROWTH & MARGINS Sales growth EBITDA (adj.)* growth EBITA (adj.)* growth EBIT (adj)*growth 12/2010 49.6 -40.3 0.0 9.4 9.4 -1.6 7.8 7.8 -1.6 6.3 6.3 0.1 0.0 0.0 0.0 6.3 -1.2 18.7% 0.0 0.0 5.1 5.1 12/2010 8.2 -8.1 0.2 -5.8 0.0 -5.6 1.0 3.7 -0.9 4.4 12/2010 5.8 2.0 0.5 8.3 0.0 25.9 0.0 -15.1 41.1 49.4 22.9 0.0 22.9 3.3 0.0 1.4 4.7 2.6 19.2 0.0 21.8 49.4 15.1 6.8 12/2010 41.1% 69.8% 74.2% 74.6% 12/2011 66.7 -50.2 0.0 16.5 16.5 -3.4 13.1 13.1 -3.6 9.5 9.5 0.1 0.0 0.0 0.0 9.6 -2.4 25.1% 0.0 0.0 7.2 7.2 12/2011 14.2 24.9 39.1 -10.7 0.0 28.5 1.0 5.1 34.5 6.7 12/2011 13.3 2.0 0.7 16.0 0.0 9.9 0.0 -31.2 41.1 57.1 35.1 0.0 35.1 6.2 0.0 2.6 8.8 2.9 10.2 0.0 13.2 57.1 15.7 -0.3 12/2011 34.4% 76.3% 67.7% 51.9% 12/2012 114 -80.5 0.0 33.8 33.8 -6.8 27.1 27.1 -2.3 24.8 24.8 0.3 0.0 0.0 0.0 25.1 -5.2 20.6% 0.0 0.0 19.9 19.9 12/2012 29.0 -7.9 21.1 -20.6 0.0 0.5 2.4 15.0 17.9 17.4 12/2012 17.1 3.1 0.4 20.6 0.0 15.8 0.0 -43.4 59.1 79.7 69.5 0.0 69.5 11.3 0.0 -17.4 -6.2 3.1 13.3 0.0 16.4 79.7 23.1 2.5 12/2012 71.4% 104.9% 106.7% 161.1% 12/2013e 177 -127 0.0 50.2 50.2 -9.6 40.6 40.6 0.0 40.6 40.6 0.4 0.0 0.0 0.0 41.0 -10.5 25.7% 0.0 0.0 30.4 30.4 12/2013e 40.1 -4.4 35.7 -31.8 0.0 3.9 4.5 0.0 8.4 28.4 12/2013e 45.3 7.2 0.4 52.9 0.0 17.7 0.0 -44.4 62.1 115 99.6 0.0 99.6 11.3 0.0 -11.1 0.1 3.1 12.2 0.0 15.3 115 58.4 5.4 12/2013e 54.6% 48.3% 49.8% 63.5% 12/2014e 275 -195 1.0 79.7 78.7 -15.9 63.7 62.7 0.0 63.7 62.7 0.4 0.0 0.0 0.0 64.1 -16.6 25.9% 0.0 0.0 47.5 47.5 12/2014e 63.4 -16.5 47.0 -49.5 0.0 -2.6 7.1 0.0 4.5 43.9 12/2014e 74.0 12.1 0.4 86.5 0.0 27.5 0.0 -37.0 64.5 151 147 0.0 147 11.3 0.0 -28.9 -17.7 3.1 18.9 0.0 22.0 151 95.1 8.6 12/2014e 55.6% 56.7% 54.6% 54.6% 12/2015e 387 -277 1.0 109 108 -22.8 86.6 85.6 0.0 86.6 85.6 0.4 0.0 0.0 0.0 87.0 -22.5 25.9% 0.0 0.0 64.5 64.5 12/2015e 87.3 -19.0 68.3 -54.1 0.0 14.1 9.6 0.0 23.7 60.0 12/2015e 101 16.8 0.4 118 0.0 38.7 0.0 -43.7 82.4 200 211 0.0 211 11.3 0.0 -51.8 -40.6 3.1 26.8 0.0 29.9 200 130 11.9 12/2015e 40.5% 37.9% 36.6% 36.6%

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Gowex

Gowex: Summary tables

GROWTH & MARGINS Net Profit growth EPS adj. growth DPS adj. growth EBITDA (adj)* margin EBITA (adj)* margin EBIT (adj)* margin RATIOS Net Debt/Equity Net Debt/EBITDA Interest cover (EBITDA/Fin.interest) Capex/D&A Capex/Sales NWC/Sales ROE (average) ROCE (adj.) WACC ROCE (adj.)/WACC PER SHARE DATA (EUR)*** Average diluted number of shares EPS (reported) EPS (adj.) BVPS DPS VALUATION EV/Sales EV/EBITDA EV/EBITDA (adj.)* EV/EBITA EV/EBITA (adj.)* EV/EBIT EV/EBIT (adj.)* P/E (adj.) P/BV Total Yield Ratio EV/CE OpFCF yield OpFCF/EV Payout ratio Dividend yield (gross) EV AND MKT CAP (EURm) Price** (EUR) Outstanding number of shares for main stock Total Market Cap Net Debt o/w Cash & Marketable Securities (-) o/w Gross Debt (+) Other EV components Enterprise Value (EV adj.) Source: Company, Bankia Bolsa estimates. Notes
* Where EBITDA (adj.) or EBITA (adj)= EBITDA (or EBITA) -/+ Non Recurrent Expenses/Income and where EBIT (adj)= EBIT-/+ Non Recurrent Expenses/Income - PPA amortisation

12/2010 78.4% 51.8% n.m. 18.9% 15.7% 12.6% 12/2010 -0.4 -1.0 n.m. 185.4% 11.6% 13.7% 29.0% 30.0% 14.5% 2.1 12/2010 57.6 0.09 0.09 0.40 0.02 12/2010 0.6 3.1 3.1 3.7 3.7 4.7 4.7 7.5 1.7 -2.6% 2.0 -14.6% -19.1% 19.5% 2.6% 12/2010 0.67 57.6 38 -9 -15 6 0 29

12/2011 40.7% 25.3% -11.0% 24.8% 19.6% 14.2% 12/2011 -0.6 -1.3 n.m. 152.0% 16.0% -0.5% 24.9% 44.5% 14.5% 3.1 12/2011 64.7 0.11 0.11 0.54 0.02 12/2011 0.6 2.4 2.4 3.0 3.0 4.2 4.2 8.5 1.8 -3.9% 2.7 46.1% 71.7% 13.8% 1.6% 12/2011 0.95 64.7 62 -22 -31 9 0 40

12/2012 176.0% 146.9% 113.4% 29.6% 23.7% 21.7% 12/2012 -0.4 -0.9 n.m. 227.9% 18.0% 2.2% 38.1% 76.5% 12.5% 6.1 12/2012 72.3 0.28 0.28 0.96 0.03 12/2012 1.2 3.9 3.9 4.9 4.9 5.4 5.4 8.1 2.3 -0.7% 5.9 0.3% 0.4% 12.0% 0.4% 12/2012 2.24 72.3 162 -29 -43 14 0 133

12/2013e 52.7% 52.7% 88.8% 28.4% 22.9% 22.9% 12/2013e -0.3 -0.6 n.m. 330.8% 18.0% 3.1% 36.0% 49.0% 9.1% 5.4 12/2013e 72.3 0.42 0.42 1.38 0.06 12/2013e 3.5 12.3 12.3 15.2 15.2 15.2 15.2 21.3 6.5 -1.1% 10.6 0.6% 0.6% 14.8% 0.7% 12/2013e 8.95 72.3 647 -30 -44 14 0 617

12/2014e 56.1% 56.1% 57.0% 28.6% 22.8% 22.8% 12/2014e -0.2 -0.3 n.m. 310.8% 18.0% 3.1% 38.6% 46.3% 9.1% 5.1 12/2014e 72.3 0.66 0.66 2.03 0.10 12/2014e 2.3 7.8 7.9 9.8 10.0 9.8 10.0 13.6 4.4 -1.5% 6.6 -0.4% -0.4% 14.9% 1.1% 12/2014e 8.95 72.3 647 -23 -37 14 0 625

12/2015e 35.7% 35.7% 36.0% 28.1% 22.2% 22.2% 12/2015e -0.1 -0.3 n.m. 237.0% 14.0% 3.1% 36.1% 46.4% 9.1% 5.1 12/2015e 72.3 0.89 0.89 2.92 0.13 12/2015e 1.6 5.6 5.7 7.1 7.2 7.1 7.2 10.0 3.1 4.8 2.2% 2.3% 14.9% 1.5% 12/2015e 8.95 72.3 647 -29 -44 14 0 618

**Price (in local currency): Fiscal year end price for Historical Years and Current Price for current and forecasted years Sector: Telecommunications/Telecommunications
Company Description: Gowex operates within the telecommunication sector, occupying a unique position as a neutral infrastructure manager and interconnection services company for operators. Gowex was founded in 1999 and currently focuses on 2 main activities: 1) Gowex Wireless (main growth driver): services related to wireless telecommunications: management and operation of WiFi networks, wireless roaming platform 2) Gowex Telecom (traditional activity): bandwith trading and B2B telecoms market services.

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Gowex

ES SN Reco ommend dation System S

The e ESN Recom mmendation S System is Ab bsolute. It me eans that eac ch stock is rated on the g dividends and bas sis of a total return, mea asured by the e upside potential (including a capital reim mbursement) over a 12 mo onth time hori izon. The e ESN spectr rum of recom mendations (o or ratings) for r each stock c comprises 5 categories: c Bu uy, Accumulate (or Add), H Hold, Reduce e and Sell (in short: B, A, H H, R, S). Furthermore, in specific s cases s and for a lim mited period of time, the ana alysts are allow wed to rate the e stocks as Ra ating Suspend ded (RS) or Not N Rated (NR R), as explaine ed below. Me eaning of each recommen dation or rati ing:

Buy: the e stock is expec cted to generate e total return of over 20% durin ng the next 12 months time horizon n Accumu ulate: the stock k is expected to t generate total return of 10 0% to 20% during th he next 12 mont ths time horizon n Hold: th he stock is expe ected to genera ate total return of 0% to 10% during the next 12 months time ho orizon. Reduce: the stock is ex xpected to gene erate total return n of 0% to -10% % during the next 12 months time ho orizon Sell: the e stock is expec cted to generate e total return un nder -10% durin ng the next 12 months time horizon n Rating Suspended S : th he rating is suspended due to a capital opera ation (takeover bid, SPO, ) whe ere the issuer of o the documen nt (a partner of ESN) or a related party p of the iss suer is or could d be involved or o to a change of analyst covering g the stock Not Rated: there is no rating for a com mpany being floa ated (IPO) by th he issuer of ument (a partne r of ESN) or a related r party of the t issuer the docu a Bolsa Rating gs Breakdown Bankia

Histo ory of ESN Recommendation System Since e 18 October 2004, the Memb bers of ESN are e using an Abso olute Recomme endation System m (before was a Relati ive Rec. System m) to rate any si ngle stock unde er coverage. Since e 4 August 2008, the ESN Rec c. System has been b amended as a follow. T Time horizon changed to 12 mo onths (it was 6 months) m R Recommendatio ons Total Return n Range change ed as below:
TODAY
SELL REDU UCE HOLD ACCUMULA ATE BUY

-10% BEFORE
SELL REDUCE E

0%

10%
ACCUM MULATE

20%
BUY

HO OLD

-15%

0%

5%

15%

Pa age 5

Gowex

Recommendation history for GOWEX Date 30-Oct-13 04-Apr-13 15-Jan-13 05-Dec-12 20-Jul-12 03-Oct-11 Recommendation Buy Accumulate Buy Buy Buy Buy Target price 12.50 5.20 2.94 3.00 2.14 1.36 Price at change date 8.95 4.19 2.54 2.38 1.21 0.88

Source: Factset & ESN, price data adjusted for stock splits. This chart shows Bankia Bolsa continuing coverage of this stock; the current analyst may or may not have covered it over the entire period. Current analyst: David Cabeza Jareo (since 26/03/2010)
10 9 8 7 6 5 4 3 2 1 Oct Nov Dec Jan Feb Mar Apr May Jun 12 12 12 13 13 13 13 13 13 Jul 13 Aug Sep Oct Nov 13 13 13 13

Price history Buy Accumulat

Target price history Hold Reduce Sell Not rated

Information regarding Market Abuse and Conflicts on Interests and recommendation history available in our web page: www.bankiabolsa.es and our offices. The information and opinions contained in this document have been compiled by Bankia Bolsa S.V. S.A., from sources believed to be reliable. This document is not intended to be an offer, or a solicitation to buy or sell relevant securities. Bankia Bolsa S.V. S.A., will not take any responsibility whatsoever for losses which may derive from use of the present document or its contents, Bankia Bolsa S.V. S.A., can occasionally have positions in some of the securities mentioned in this report, through its trading portfolio or negotiation. Additionally, there can exist a commercial relation between Bankia Bolsa S.V. S.A., Bankia and the mentioned companies.
As of the date of this report, Bankia Bolsa S.V.S.A: acts as agent or liquidity provider for the following companies: AB Biotics; Bioorganic Research Services; Carbures Europa SA; Grupo Elektra; Let's Gowex; Lumar Natural Seafood; Nostrum RNL S.A; TV Azteca has in the last 12 months, participated as lead or co-lead manager in corporate operations with the following companies: AB Biotics; Bankia; Carbures Europa SA; Ebioss Energy; Funespaa; Int. Consolidated Airlines Group SA; Mapfre SA; has, during the last year, performed a significant amount of business with ACS; AB Biotics; Carbures Europa SA; Lets Gowex. through its parent company, Group Bankia, holds relevant financial interests with FCC. has a contractual relationship to provide financial services, through which Bankia Bolsa S.V.S.A., executes orders on the treasury stocks of the following companies: Grupo Catalana Occidente; Indra Sistemas; Int. Consolidated Airlines Group SA; Natra. has a liquidity contract as outlined by the CNMV's Circular 3/2007 with: FCC; Sacyr Vallehermoso.

Group Bankia, Bankia Bolsa S.V. S.A's parent company, holds significant stakes (>5%) in the following companies: Deoleo; Iberdrola; Martinsa-Fadesa; NH Hoteles; Realia.

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Disclaimer:
These reports have been pr repared and issued by the Members of f European Securities s Network LLP (ESN N). ESN, its Membe ers and their affiliate es (and any director, officer or employee e thereof), are neither liable for the proper p and complete transmission of the ese reports nor for any a delay in their re eceipt. Any unauthoris sed use, disclosure e, copying, distributio on, or taking of any action in reliance on o these reports is s strictly prohibited. The views and express sions in the reports ar re expressions of opinion and are given in good faith, but are e subject to change without w notice. These e reports may not be e reproduced in whole or in part or passed to third parties without permission. . The information herein h was obtained from various source es. 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I Investors should see ek financial advice regarding the appropriateness of investing in any securities or investment strategies s discussed or recom mmended in these reports and should d understand that statements regarding future prospects ma ay not be realised. Inv vestors should note that t income from such h securities, if any, m may fluctuate and tha at each securitys price or value may rise or fall. Accordingly y, investors may rec ceive back less than originally invested. Past performance is not necessarily a guide to future pe erformance. Foreign currency c rates of ex xchange may adver rsely affect the valu ue, price or income of o any security or re elated investment mentioned m in these reports. In addition, investors in securities such as ADRs, wh hose value are influen nced by the currency of o the underlying sec curity, effectively assu ume currency risk. ESN, its Members M and their a affiliates may submit a pre-publication dr raft (without mentionin ng neither the recom mmendation nor the e target price/fair va alue) of its reports fo or review to the Inves stor Relations Depar rtment of the issuer forming the subject of f the report, solely fo or the purpose of correcting any inadverte ent material inaccurac cies. Like all member rs employees, analys sts receive compensa ation that is impacted by overall firm profit tability For further de etails about the spec cific risks of the comp pany and about the e valuation methods s used to determine e the price targets included in this report t/note, please refer to t the latest relevan nt published research on single stock or r contact the analys st named on the front of the report/not te. Research is available through your sales representative e. 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This T document is for r distribution in the U.K. U Only to persons s who have profession nal experience in ma atters relating to inv vestments and fall within w article 19(5) of the t financial services s and markets act 2000 2 (financial promo otion) order 2005 (the e order) or (ii) are persons falling with hin article 49(2)(a) to o (d) of the order, namely high net worth h companies, uninc corporated associatio ons etc (all such pers sons together being referred to as rele evant persons). This s document must not be acted on or relie ed upon by persons who are not relevant persons. Any inves stment or investment t activity to which thi is document relates is available only to rel levant persons and w will be engaged in on nly with relevant perso ons. The distribution of this docum ment in other jurisdictions or to residen nts of other jurisdictions may also be rest tricted by law, and persons p into whose possession this document comes should inform themselves about, and observe e, any such restriction ns. By accepting this s report you agree to be bound by the e foregoing instruction ns. You shall indemn nify ESN, its Membe ers and their affiliate es (and any director, officer o or employee thereof) against any y damages, claims, losses, l and detriments s resulting from or in connection with the unauthorized use u of this document t. For disclo osure upon conflicts of interest on the companies c under cov verage by all the ESN Members and on ea ach company recom mmendation history, please visit the ESN website (www.esn npartnership.eu) For r additional inform mation and individua al disclaimer pleas se refer to www.es snpartnership.eu an nd to each ESN Mem mber websites:
www.banca aakros.it regulated by the CONSOB - Commissione Nazionale per le Societ e la Borsa www.bankia abolsa.es regulated by C CNMV - Comisin Nacion nal del Mercado de Valor res www.caixab bi.pt regulated by the CM MVM - Comisso do Merc cado de Valores Mobilirios www.cgdsecurities.com.br regulated d by the CVM Comisso o de Valores Mobilirios www.cmcics s.com regulated by the A AMF - Autorit des march hs financiers www.degroo of.be regulated by the F SMA - Financial Services s and Markets Authority www.equine et-ag.de regulated by the e BaFin - Bundesanstalt fr Finanzdienstleistungs saufsicht www.ibg.gr regulated by the HCMC - Hellenic Capital Market Commission www.pohjola.com regulated by the F Financial Supervision Authority www.snssecurities.nl regulated by th he AFM - Autoriteit Finan ncile Markten

Members of ESN (European Sec curities Network LLP)

Banca Akro os S.p.A. Viale Eginar rdo, 29 20149 MILAN NO Italy Phone: +39 02 43 444 389 Fax: +39 02 43 444 302

Equinet Bank k AG Grfstrae 97 7 60487 Frankfu urt am Main Germany Phone:+49 69 9 58997 410 Fax:+49 69 58997 299

Bank Degro oof Rue de IInd dustrie 44 1040 Brusse els Belgium Phone: +32 2 287 91 16 Fax: +32 2 231 2 09 04

Investment Bank of Greece 24B, Kifisias Avenue A 151 25 Marous si Greece Phone: +30 21 10 81 73 000 Fax: +30 210 68 6 96 325

Bankia Bols sa Serrano, 39 28001 Madr rid Spain Phone: +34 91 436 7813 Fax: +34 91 577 3770

Pohjola Bank plc P.O.Box 308 FI- 00013 Pohj jola Finland Phone: +358 10 1 252 011 Fax: +358 10 252 2 2703

Caixa-Banco o de Investimento Rua Barata Salgueiro, S 33 1269-050 Lisb boa Portugal Phone: +351 21 389 68 00 Fax: +351 21 389 68 98

SNS Securities s N.V. Nieuwezijds Vo oorburgwal 162 P.O.Box 235 1000 AE Amste erdam The Netherland ds Phone: +31 20 550 8500 Fax: +31 20 626 8064

CM - CIC Se ecurities 6, avenue de Provence 75441 Paris s Cedex 09 France Phone: +33 1 4596 7940 Fax: +33 1 4596 4 7748

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