Morning Comments. Equity Market. Company & Sector Information. Bank Securities. 28 September Poland

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1 28 September 2011 Equity Market Poland Morning Comments Morning Comments BRE Bank Securities Institutional Sales and Research: M. Marczak ( ) I. Rokicka ( ) K. Kliszcz ( ) P. Grzybowski ( ) M. Stokłosa ( ) J. Szkopek ( ) G. Borowska ( ) P. Zybała ( ) Index Close Change Index Close Change Index Close Change DJIA % FTSE % Copper (LME) % S&P % WIG % Crude Oil (Brent) % NASDAQ % BUX % USD/PLN % DAX % PX % EUR/PLN % CAC % PLBonds % EUR/USD % Company & Sector Information Kredyt Bank Reduce 05/09/11 Target price: PLN 13.1 Millennium Hold - 05/09/11 Target price: PLN 4.8 PZU Hold - 03/06/11 Target price: PLN PGNiG Hold - 06/09/11 Target price: PLN 4.29 Cersanit Hold - 05/07/11 Target price: PLN 10.7 Impexmetal Buy 29/07/11 Target price: PLN 6.3 Santander reportedly bids for Kredyt Bank According to unofficial sources quoted by today s Gazeta Wyborcza, having completed a due diligence review, Santander made an offer to buy Kredyt Bank, and possibly also Warta, from KBC. KBC is to make a decision in the next two weeks. Note that KBC has not officially offered Kredyt Bank up for sale, although it has admitted to wanting to divest the Polish assets. KBC s 80% stake in Kredyt Bank is carried at EUR 658m book value (2Q 2011), implying EUR 3.03 or PLN per share (at current 4.39 EUR/PLN exchange rate). Any bid below that amount would mean a loss for the Belgian bank. If Santander s bid is confirmed, at the current price level, Kredyt Bank offers attractive upside potential of ca. 16% relative to PLN (and 14% to our PLN 13.1 target). Note that the stock has fallen 20% since our September 5th Reduce rating. (I. Rokicka) Millennium sells at least PLN 600m mortgage loans in Q Millennium estimates that it has sold over PLN 600m mortgage loans in the third quarter of July sales were PLN 225m, and August sales amounted to PLN 200m. Over PLN 600m Q3 sales suggest sales growth of at least 10% relative to PLN 547m reported in Q an impressive achievement given the expected 5%-10% Q/Q drop across the bank sector. (I. Rokicka) PZU goes ex-dividend Today is the first day that PZU shares are trading ex dividend (PLN 26/share), and we are adjusting our price target accordingly to PLN 364 from PLN 390 per share. (I. Rokicka) European Commission makes unannounced inspections at EU gas companies European Commission inspectors are paying unannounced visits at CEE companies active in the supply, transmission, and storage of natural gas. According to unofficial information, the raids may have something to do with Gazprom s activity in Europe. The 20 companies targeted for audits include Poland s PGNiG and Gaz-System. If Gazprom is indeed the real target of the inspections, PGNiG will be unaffected. Given that gas prices in Poland are government regulated, it is hard to imagine the European Commission could accuse PGNiG of abusing its dominant position. (K. Kliszcz) Cersanit makes capital injection into subsidiary The owners of Opoczno III Sp. z o.o. made cash injections to increase its capital. Barcocapital Investment Limited, a company controlled by Cersanit s main shareholder Michał Sołowow, made a contribution in the amount of PLN 130m, and Cersanit paid in PLN 0.65m. The purpose of the capital injection was to streamline cash management. We think a capital injection into a subsidiary may have been aimed at improving Cersanit s debt-to-ebitda ratio to ensure fulfillment of loan covenants. At 30 June 2011, Cersanit had PLN 883m net debt and PLN 131.5m EBITDA. (J. Szkopek) CEO on Q3 outlook Impexmetal s CEO says sales volumes have rebounded from the slight slump seen since June. He says a weak zloty is making up for the downturn in LME metal prices, moreover, it contributes to reduced imports of finished products and boosts the profitability of exports. Falling metal prices may prompt buyers to postpone orders in hopes of a stronger downturn. Impexmetal fulfilled 55.3% of BRE 28 September Bank Securities 2011 does not rule out offering brokerage services to an issuer of securities being the subject of a recommendation. Information concerning a conflict of interest arising in connection with issuing a recommendation (should such a conflict exist) is located on the final page of this report.

2 our FY2011 revenue forecast, 57.6% of our EBITDA estimate, and 63.5% of the bottom-line estimate in H The Q contraction in aluminum sheet sales volumes, followed by a rebound in Q4, has been consistent with the company s expectations. We remain bullish on Impexmetal. (J. Szkopek) Budimex Buy 06/09/11 Target price: PLN 90.0 Mirbud P.A. Nova Buy 17/05/11 Target price: PLN 37.4 PKP Board agrees to sell PNI The Supervisory Board of PKP SA has agreed to sell PNI to Budimex. The next step are approvals from antitrust, the Infrastructure Ministry, and PNI s owners, which Budimex hopes to secure by the end of October. If it succeeds, it can start consolidating PNI s earnings in November. The preliminary acquisition agreement sets PNI s price at PLN 225m. In fiscal 2009/2010, the railroad repairer generated PLN 541m revenue and PLN 9.1m net profit. The PNI acquisition is not factored in our valuation model for Budimex for now, but it does not have much relevance for the company s 2012 earnings outlook. (M. Stokłosa) PLN 65m contract Mirbud signed a PLN 65m contract for construction of an exhibition hall in Ostróda. The contract accounts for about 11.7% of the company s expected 2011 revenue. Mirbud is currently focused on accumulating a backlog of orders for Its real-estate arm JHM Development is holding off equity and debt offerings until the market improves. The developer is finalizing negotiations concerning a big-box store contract and another 100 sqm project. JHM s land bank can be developed into 2.7 thousand flats with an estimated total sales value of PLN 800m and costs over PLN 500m. Mirbud s 2012 order backlog is currently worth about PLN m, which means it is just under 60% full. (M. Stokłosa) PA Nova takes out loan PA Nova took out a PLN 106.4m investment loan with PKO BP to finance the construction of a shopping center in Kędzierzyn Koźle (LTV is 70%). The loan is payable in 132 monthly installments ending on 30 June Moreover, PA Nova also signed an agreement for a PLN 5.5m revolving facility. The timing and size of the loan and the status of the Kędzierzyn Koźle shopping center (which is scheduled for completion in Q4 2012), are all consistent with our predictions. (P. Zybała) More News 4Fun Media Agora Agrowill Bioton CD Projekt Red Emperia Emperia, śabka Polska Energopol Płd IT KBJ <IPO NC> 4fun Media is taking a several potential acquisition targets. The ratecard advertising revenue of Gazeta Wyborcza fell 12.4% y/y to PLN 42.06m in August. Rzeczpospolita saw a 25.8% drop to PLN 6.6m, Polska The Times lost 6.8% at PLN 20.44m, and the ad revenue of Fakt declined 2.7% to PLN 14.04m. Agrowill would like to expand beyond farm and milk production and venture out into construction and operation of biogas power plants. Bioton and Actavis have filed to form a joint venture under the name of Actavis Bioton registered in Switzerland. A court in Lyon agreed to move the hearing on the Namci Bandai Partners case from 27 September to 18 October. Tradis is launching a new chain of cash&carry outlets for small grocery retailers called Minutka. The initial six locations are to expand to 100 by the end of the year and 1000 by the end of Member retailers have to generate monthly turnover of at least PLN 10,000 at Tradis wholesale outlets. śabka Polska wants to buy a chain of stores with sqm store space and annual sales of at least PLN 1 billion. Emperia s Stokrotka chain consists of sqm stores. Whether śabka made an offer to buy the chain in unkown. Energopol-Południeis planning a buyback of up to 1.5 million shares at PLN 10 a share. Venture capital fund Nomad is considering investing in four IT companies. The fund is aiming to have a portfolio of companies from eastern Poland. IT software developer and consultant KBJ is preparing for an October debut on the NewConnect. The company expects to generate sales of ca. PLN 5m in 2011, and achieve a net profit margin of 27%. 28 September

3 Komputronik Komputronik is paying PLN 0.12-a-share dividends. Midas The Office for Electronic Communications has upheld its decision to void the tender for MHz and MHz frequencies. Monday Develop. Orbis Monday Development wants to make a PLN 17m stock offering by the end of the year to raise cash to fund a science and technology park project. Orbis expects to finalize the sale of its Francuski hotel in Krakow by 7 November. Petrolinvest During yesterday s EGM, shareholders approved a conditional share capital increase to PLN 400m. Seko Serenity TPSA Zetkama Seko is back in talks with Homann, the German owner of the Lisner brand, which is offering to buy a 25% stake in the Polish company. Serenity, owner of rehabilitation clinics and care homes, wants to take public its subsidiary Serenity Nieruchomości in Q Subsidiary TP Invest has an exclusive right to make an oral bid on government-owned Telefony Podlaskie on 29 September CEO Maciej Witucki says the value of the Polish telecommunications market will not change in Zetkama is one of the four companies bidding to acquire 33,900 shares representing 94.2% of the equity of government-owned industrial valve manufacturer Armak. Insider Trading and Fund Activity Alchemia Alchemia repurchased 25,335 treasury shares for an avg. PLN 5.81 a share on 27 September. Alma OFE PZU Złota Jesień increased equity interests to 10.21% from 9.98%. Bakalland Bakalland repurchased 2805 treasury shares for an avg. PLN 3.14 a share on 27 September. BBI CAPITAL NFI Supernova IDM Fund purchased 5,134,933 shares outside of the regulated market on 22 September. Calatrava Capital Calatrava Capital repurchased 670,200 treasury shares for an avg. PLN 0.39 a share on 27 September. Calatrava Capital repurchased 105,228 treasury shares for an avg. PLN 0.38 a share on 26 September. Centrum Klima Complex Drozapol-Profil Centrum Klima repurchased 3 treasury shares for an avg. PLN 9.24 a share on 26 September. CEO purchased 640 shares for a total of PLN 6,315.8 between 20 and 27 September. Complex repurchased 1000 treasury shares for an avg. PLN 1.55 a share on 26 September. Drozapol Profil repurchased 8,140 treasury shares for an avg. PLN 1.59 a share on 26 September. Energopol Płd Energopol Południe repurchased 6464 treasury shares for an avg. PLN 8.37 a share on 27 September. Ferrum Hawe Kompap KSG Agro Lentex Marvipol Ferrum repurchased 14,704 treasury shares for an avg. PLN 9.01 on 27 September. Hawe repurchased 181,182 treasury shares for an avg. PLN on 26 September. A company affiliated with the CEO purchased 2526 shares for prices ranging between PLN 7.79 and 7.98 a share on 26 and 27 September. ING TFI increased equity interests to 5.55% on 13 September. Lentex repurchased 2500 treasury shares for an avg. PLN a share on 26 September. Marvipol repurchased 4350 treasury shares for an avg. PLN 8.12 a share on 27 September. MCI MCI repurchased 29,778 treasury shares for an avg. PLN 3.98 a share on 26 September. 28 September

4 MNI MNI repurchased 10,000 treasury shares for an avg. PLN 1.85 a share on 27 September. Muza Muza repurchased 5720 treasury shares for an avg. PLN 5.74 a share between 19 and 23 September. Point Group Polna Rainbow Tours Point Group repurchased 9,730 treasury shares for an avg. PLN 0.77 a share on 26 September. Polna repurchased 1524 treasury shares for an avg. PLN 8.80 a share on 26 September. Rainbow Tours repurchased 1,313 treasury shares for an avg. PLN 4.6 a share on 26 September. Rainbow Tours repurchased 1,298 treasury shares for an avg. PLN 4.64 a share on 27 September. Wielton A Management Board member purchased 27,828 shares for an avg. PLN 1.78 a share on 26 September. Corporate Action Calendar Friday / / ACTION FAMUR PGE POLIMEX MOSTOSTAL PZU Tuesday / / JSW EGM. EGM re: merger with subsidiary. Dividend payout (PLN 0.65/share). Dividend payout (PLN 0.04/share). Dividend record date (PLN 26/share). Payout is set for 21. Oct. EGM re: grant of rights to employees to acquire shares free of charge, acquisition of 399,500 shares of WZK Victoria from the State Treasury. 28 September

5 Economic Calendar Wednesday / / Time Region Report Period Forecast Previous 7:30 France GDP 2Q 0.9% q/q; 2.1% y/y 8:00 Germany Import price index August 0.8% m/m; 7.5% y/y 13:00 USA Mortgage applications Week 0.6% 14:30 USA Durable goods orders ex. transportation means August 0.7% m/m 14:30 USA Durable goods orders August 4.0% m/m 16:00 USA Factory goods orders August 2.4% m/m 16:30 USA Crude oil inventory Week 339.0m Thursday / / Time Region Report Period Forecast Previous 1:50 Japan Retail trade August -0.3% m/m; 0.7% y/y 10:00 Germany Unemployment rate August 6.1% 10:30 UK M4 money supply August -0.1% m/m; -1.1% y/y 10:30 UK Mortgage approvals August 49,240 11:00 EU Business confidence September :00 EU Consumer confidence September :00 EU Economic confidence September :00 EU Industrial confidence September :00 EU Services confidence September :00 Poland Capital account balance 2Q 1.64bn 14:00 Poland Financial account balance 2Q 1.87bn 14:30 USA GDP Deflator 2Q 2.0% q/q 14:30 USA GDP 2Q 1.9% q/q; 2.3% y/y 14:30 USA Initial jobless claims Week 423,000 14:30 USA PCE 2Q 2.2% q/q; 2.7% y/y 14:30 USA Core PCE 2Q 0.9% y/y 16:00 USA Pending home sales August -1.3% 16:30 USA Natural gas inventory Week 3201bn Friday / / Time Region Report Period Forecast Previous 1:15 Japan PMI manufacturing September :30 Japan Tokyo core inflation September -0.2% y/y 1:30 Japan Tokyo CPO September -0.2% y/y 1:30 Japan Core CPI August 0.0% m/m; 0.1% y/y 1:30 Japan CPI August 0.2% y/y 1:30 Japan Household spending August -2.1% y/y 1:30 Japan Unemployment rate August 4.7% 3:00 China PMI Manufacturing September :45 France Consumer spending July 1.2% m/m; 1.8% y/y 11:00 EU Unemployment rate August 10.0% 14:30 USA PCE Deflator core August 0.2% m/m; 0.2% y/y 14:30 USA PCE Deflator August 0.4% m/m; 2.8% y/y 14:30 USA Personal income August 0.3% m/m 14:30 USA Personal spending August 0.8% m/m 15:45 USA Chicago PMI September :55 USA University of Michigan consumer confidence index September 55.7 Monday / / Time Region Report Period Forecast Previous 1:50 Japan Tankan Manufacturers Index 2Q -9 1:50 Japan Tankan Non-Manufacturers Index 2Q -5 9:00 Poland PMI manufacturing September :30 UK PMI manufacturing September :00 USA PMI manufacturing September 50.6 Tuesday / / Time Region Report Period Forecast Previous 11:00 EU PPI August 0.5% m/m; 6.1% y/y 28 September

6 Company Recommendation Date issued Banks Price on report date 28 September Target price Current price Upside / Downside GETIN Hold % HANDLOWY Accumulate % ING BSK Buy % KREDYT BANK Reduce % MILLENNIUM Hold % PEKAO Accumulate % PKO BP Buy % Insurance PZU Hold % Financial services Current recomm endations of BRE Bank Securities S.A. KRUK Buy % Fuels, chemicals CIECH Buy % LOTOS Hold % PGNiG Hold % PKN ORLEN Accumulate % POLICE Reduce % ZA PUŁAWY Conf idential until Pow er Utilities CEZ Hold % ENEA Accumulate % PGE Buy % TAURON Buy % Telecommunications NETIA Hold % TPSA Hold % Media AGORA Buy % CINEMA CITY Accumulate % CYFROWY POLSAT Hold % TVN Reduce % IT AB Buy % ACTION Hold % ASBIS Buy % ASSECO POLAND Buy % COMARCH Hold % SYGNITY Buy % Mining & Metals JSW Buy % KGHM Buy % LW BOGDANKA Buy % Manufacturers ASTARTA Sell % BORYSZEW Buy % CEDC Buy % CENTRUM KLIMA Buy % CERSANIT Hold % FAMUR Accumulate % IMPEXMETAL Buy % KERNEL Buy % KĘTY Buy % KOPEX Buy % MONDI Accumulate % Construction BUDIMEX Buy % ELEKTROBUDOWA Accumulate % ERBUD Buy % MOSTOSTAL WAR. Buy % PBG Buy % POLIMEX MOSTOSTAL Buy % RAFAKO Accumulate % TRAKCJA TILTRA Buy % ULMA CP Buy % UNIBEP Buy % ZUE Buy % Property Developers BBI DEVELOPMENT Buy % DOM DEVELOPMENT Suspended ECHO Buy % GTC Buy % J.W.C. Suspended PA NOVA Buy % POLNORD Suspended ROBYG Suspended Retail\Wholesale EUROCASH Conf idential until LPP Accumulate % NFI EMF Hold % NG2 Buy % VISTULA Hold %

7 CEE bank valuations / / ROE P/BV Price POLISH BANKS BZ WBK % % - - Getin % 20% 11% % 0.0% 0.0% Handlowy % 10% 11% % 8.2% 7.4% ING BSK % 15% 15% % 2.0% 3.8% Kredy t Bank % 13% 11% % 3.2% 0.0% Millenium % 11% 11% % 2.3% 3.6% Pekao % 14% 14% % 5.0% 6.0% PKO BP % 18% 17% % 6.1% 4.8% Median % 14% 11% % 3.2% 3.8% INVESTORS IN POLISH BANKS AIB % 3% % 0.0% 0.0% BCP % 5% 6% % 7.7% 10.3% Citigroup % 7% 9% % 0.1% 0.7% Commerzbank % 7% 12% % 0.4% 2.5% ING % 13% 12% % 1.0% 5.9% KBC % 16% 15% % 5.3% 5.8% UCI % 5% 6% % 6.5% 9.2% Median % 7% 9% % 1.0% 5.8% FOREIGN BANKS BEP % 6% 7% % 5.3% 6.6% Deutsche Bank % 11% 11% % 3.5% 4.4% Erste Bank % 10% 12% % 3.7% 4.6% Komercni B % 18% 18% % 7.4% 8.0% OTP % 12% 15% % 7.3% 10.1% Santander % 12% 13% % 9.5% 10.2% Turkiy e Garanti B % 18% 17% % 2.5% 3.1% Turkiy e Halk B % 23% 21% % 3.3% 3.9% Sbierbank % 25% 24% % 2.0% 2.7% VTB Bank % 14.8% 16.7% % 1.6% 2.1% Median % 14% 16% % 3.6% 4.5% Insurance company valuations / / ROE P/BV Price PZU % 19% 19% % 7.6% 5.0% FOREIGN COMPANIES Vienna Insurance G % 10% 10% % 3.9% 4.4% Uniqa % 12% 8% % 3.0% 3.1% Aegon % 7% 8% % 3.4% 7.1% Allianz % 12% 12% % 6.9% 7.5% Av iv a % 13% 14% % 8.8% 9.3% AXA % 10% 10% % 7.9% 8.7% Baloise % 11% 11% % 7.0% 7.2% Generali % 9% 14% % 5.7% 6.1% Helv etia % 11% 11% % 6.0% 6.4% Mapf re % 14% 14% % 7.0% 7.3% RSA Insurance % 15% 16% % 8.0% 8.5% Zurich Financial % 13% 13% % 9.8% 10.1% Median % 11% 12% % 7.0% 7.3% Fuels producer valuations / / EV/S EBITDA margin OIL COMPANIES Lotos % 6% 5% 0.0% 0.0% 0.0% PKN Orlen % 5% 5% 0.0% 0.0% 6.1% MOL % 14% 15% 3.4% 4.3% 6.1% OMV % 16% 16% 4.4% 4.9% 5.1% Hellenic Petroleum % 6% 7% 6.7% 7.1% 8.5% Tupras % 4% 4% 7.2% 8.3% 9.2% Unipetrol % 6% 6% 0.3% 1.8% 3.8% Median % 6% 6% 3.4% 4.3% 6.1% GAS COMAPNIES PGNiG % 14% 21% 0.6% 3.0% 2.4% Gazprom % 40% 40% 1.6% 2.7% 3.2% GDF Suez % 19% 19% 6.8% 7.0% 7.4% Gas Natural SDG % 23% 23% 6.4% 6.4% 7.1% Median % 21% 22% 4.0% 4.7% 5.2% Source: BRE Bank Securities for Polish companies, IBES/Bloomberg for foreign companies 28 September

8 Power Utilities company valuations / / EV/S EBITDA margin ENERGY COMPANIES CEZ % 43% 45% 7.4% 7.1% 6.3% ENEA % 16% 17% 2.3% 2.5% 3.0% PGE % 27% 33% 4.6% 3.5% 5.8% TAURON % 15% 16% 0.1% 2.9% 4.2% E.ON % 13% 13% 9.1% 7.9% 8.0% EDF % 24% 25% 5.3% 5.5% 5.8% Endesa % 25% 24% 6.1% 6.0% 6.5% ENEL SpA % 24% 24% 8.4% 8.9% 9.3% Fortum % 40% 40% 5.4% 5.5% 5.7% Iberdrola % 27% 27% 6.4% 6.6% 6.9% RWE AG % 17% 17% 12.6% 10.0% 9.9% Median % 24% 24% 6.1% 6.0% 6.3% Fertilizer producers and chemical company valuations / / EV/S EBITDA margin FERTILIZER PRODUCERS POLICE % 7% 6% 0.0% 0.0% 0.0% ZA Puławy % 10% 10% 1.2% 5.5% 5.5% Acron % 24% 21% 2.1% 2.8% 1.5% Agrium % 16% 16% 0.2% 0.2% 0.2% DSM % 43% 43% 2.5% 2.6% 2.7% K+S % 23% 25% 2.1% 3.6% 4.3% Silv init % 65% 65% 1.2% 1.3% 1.5% Uralkali % 57% 65% 1.3% 5.6% 10.7% Yara % 17% 16% 2.4% 2.5% 2.8% Median % 23% 21% 1.3% 2.6% 2.7% CHEMICAL COMPANIES Ciech % 9% 10% 0.0% 0.0% 0.0% Akzo Nobel % 13% 14% 4.1% 4.5% 4.9% BASF % 18% 18% 4.5% 5.0% 5.4% Croda % 24% 24% 2.0% 2.5% 2.7% Dow Chemical % 15% 16% 2.3% 2.9% 3.0% Rhodia % 16% 16% 1.3% 2.0% 2.2% Sisecam % 24% 24% 1.2% 2.6% 4.2% Soda Sanay ii % 18% 17% - 3.6% 4.0% Solv ay % 15% 15% 4.1% 3.9% 4.1% Tata Chemicals % 17% 18% 2.6% 2.7% 2.7% Tessenderlo Chemie % 9% 9% 5.9% 5.8% 5.9% Wacker Chemie % 26% 27% 2.9% 4.4% 5.1% Median % 17% 17% 2.6% 3.3% 4.0% European national operator valuations / / EV/S EBITDA margin Netia % 24% 24% 0.0% 4.0% 5.8% TPSA % 37% 38% 8.8% 8.8% 8.8% Median % 31% 31% 4.4% 6.4% 7.3% MID CAPS Belgacom % 30% 29% 9.7% 9.7% 9.7% Cesky Telecom % 42% 42% 10.3% 9.4% 9.4% Hellenic Telekom % 34% 35% 5.2% 7.4% 9.8% Matav % 35% 35% 12.0% 10.8% 11.2% Portugal Telecom % 37% 37% 11.3% 13.3% 11.8% Telecom Austria % 34% 34% 10.1% 10.2% 10.0% Median % 35% 35% 10% 10% 10% BIG CAPS BT % 29% 29% 3.9% 4.2% 4.7% DT % 31% 32% 8.2% 8.1% 8.1% FT % 33% 33% 11.5% 11.5% 11.6% KPN % 43% 43% 8.5% 9.1% 9.5% Swisscom % 39% 39% 5.9% 6.1% 6.4% TELEFONICA % 37% 37% 9.8% 11.1% 12.3% TeliaSonera % 35% 36% 5.6% 6.3% 6.7% TI % 42% 41% 7.0% 8.0% 9.1% Median % 36% 37% 7.6% 8.0% 8.6% Source: BRE Bank Securities for Polish companies, IBES/Bloomberg for foreign companies 28 September

9 IT company valuations / / EV/S EBITDA margin AB % 2% 2% 0.0% 0.0% 0.0% ACTION % 2% 2% 5.4% 3.8% 5.0% ASBIS % 1% 1% 0.0% 0.0% 0.0% ASSECO POLAND % 18% 17% 3.9% 4.8% 4.3% COMARCH % 11% 11% 0.0% 0.0% 3.8% KOMPUTRONIK % 2% 2% 0.0% 0.0% 3.4% SYGNITY % 7% 0.0% 0.0% 0.0% Median % 2% 2% 0.0% 0.0% 3.4% FOREIGN COMPANIES Accenture % 14% 14% 1.9% 1.5% 1.8% Atos Origin % 10% 10% 0.5% 1.7% 1.9% CapGemini % 9% 10% 3.4% 4.1% 4.6% IBM % 25% 25% 1.4% 1.5% 1.6% Indra Sistemas % 12% 12% 6.0% 6.3% 6.7% LogicaCMG % 9% 10% 5.0% 5.9% 6.8% Microsof t % 44% 43% 2.1% 2.4% 2.5% Oracle % 47% 48% 0.7% 0.6% 0.6% SAP % 35% 36% 1.5% 1.9% 2.1% TietoEnator % 11% 11% 5.4% 7.1% 7.5% Median % 13% 13% 2.0% 2.1% 2.3% Media company valuations / / EV/S EBITDA margin AGORA % 6% 12% 3.8% 3.8% 3.8% CYFROWY POLSAT % 29% 30% 4.1% 4.8% 5.0% TVN % 25% 27% 2.3% 0.0% 0.3% DAILY Arnolgo Mondadori % 10% 11% 9.8% 11.7% 13.6% Axel Springer % 18% 19% 17.9% 19.3% 20.5% Daily Mail % 19% 19% 4.2% 4.6% 5.0% Gruppo Editorial % 18% 20% 6.2% 8.4% 9.8% Mcclatchy % 26% 23% 0.0% 0.0% 0.0% Naspers % 24% 25% 0.7% 0.9% 1.1% New York Times % 14% 15% 0.0% 0.0% 0.0% Promotora de Inf orm % 22% 24% 0.0% 0.0% 0.4% SPIR Comm % 6% 8% 0.0% 0.0% 0.0% Trinity Mirror % 18% 18% 1.4% 1.2% 4.4% Mediana % 18% 19% 1.0% 1.0% 2.8% TV Antena 3 Telev is % 21% 23% 8.8% 10.6% 12.0% CETV % 20% 25% 0.0% 0.0% 0.0% Gestev ision Telecinco % 26% 30% 8.6% 12.7% 16.0% ITV PLC % 24% 25% 0.6% 3.7% 5.0% M6-Metropole Tel % 22% 21% 7.7% 8.5% 9.0% Mediaset SPA % 33% 34% 13.8% 15.1% 16.2% RTL Group % 23% 23% 7.0% 6.7% 6.9% TF1-TV Francaise % 15% 17% 4.8% 7.1% 7.8% Mediana % 22% 24% 7.3% 7.8% 8.4% PAY TV BSkyB PLC % 22% 23% 2.7% 3.0% 3.4% Canal Plus % 5% 5% 6.3% 6.8% 6.8% Cogeco % 40% 40% 1.2% 1.4% 1.8% Comcast % 32% 31% 1.7% 2.0% 2.1% Liberty Global % 46% 46% 0.0% 0.0% 0.0% Multimedia % 52% 52% Shaw Communications % 42% 41% 4.2% 4.4% 4.5% Mediana % 40% 40% 2.2% 2.5% 2.7% Mining company valuations / / EV/S EBITDA margin KGHM % 51% 39% 2.2% 10.8% 7.3% FOREIGN COMPANIES Anglo Amer % 46% 46% 2.2% 3.6% 3.9% BHP Billiton % 54% 57% 4.6% 5.0% 5.5% Freeport-MCMOR % 53% 53% 2.1% 4.6% 3.5% Rio Tinto % 50% 48% 3.0% 3.7% 4.0% Southern Peru % 63% 65% 5.7% 8.0% 10.3% Median % 53% 53% 3.0% 4.6% 4.0% Source: BRE Bank Securities for Polish companies, IBES/Bloomberg for foreign companies 28 September

10 Construction company valuations / / EV/S EBITDA margin Budimex % 7% 9.9% 13.3% 6.4% Elektrobudowa % 8% 8% 3.3% 3.0% 3.3% Erbud % - 4% 2.5% 1.2% 0.0% Mostostal Warszawa % 2% 4% 8.5% 2.6% 1.5% PBG % 9% 8% 2.2% 2.2% 2.6% Polimex Mostostal % 5% 6% 3.0% 0.0% 0.0% Raf ako % 5% 5% 3.4% 0.0% 0.0% Trakcja Tiltra % 8% 7% 0.0% 0.0% 0.0% Ulma Construccion % 50% 46% 0.0% 0.0% 0.0% Unibep % 4% 7% 2.0% 0.0% 0.0% Median % 6% 7% 2.8% 0.6% 0.0% FOREIGN COMPANIES AMEC % 10% 10% 2.3% 2.9% 3.2% BILFINGER % 6% 6% 4.2% 5.3% 4.7% EIFFAGE % 14% 15% 5.2% 5.5% 6.1% HOCHTIEF % 5% 7% 3.6% 4.4% 5.4% NCC % 5% 5% 5.7% 8.8% 9.6% SKANSKA % 8% 5% 5.9% 6.2% 6.4% STRABAG % 5% 5% 2.3% 2.4% 2.5% Median % 6% 6% 4.2% 5.3% 5.4% Property Developers company valuations / / P/BV EBITDA margin BBI Dev elopment % 24% 46% 0.0% 0.0% 0.0% Dom Dev elopment % 16% 17% 3.1% 1.7% 7.8% Echo Inv estment % 92% 113% 0.0% 0.0% 0.0% GTC % 127% 159% 0.0% 0.0% 0.0% J.W. Construction % 29% 39% 0.0% 0.0% 0.0% PA Nov a % 18% 19% 0.0% 0.0% 0.0% Polnord % 26% 36% 7.2% 0.0% 0.0% Roby g % 22% 25% 0.0% 3.7% 4.3% Median % 25% 37% 0% 0% 0% FOREIGN COMPANIES CA IMMO INTERNATIONAL CITYCON % 57% 60% 5.0% 5.2% 5.6% CORIO % 81% 80% 7.6% 7.9% 8.1% DEUTSCHE EUROSHOP % 87% 86% 4.3% 4.5% 4.7% ECHO INVESTMENT % 82% 86% 0.0% 0.0% 0.0% HAMMERSON % 78% 77% 4.1% 4.3% 4.4% KLEPIERRE % 84% 84% 5.9% 6.4% 6.7% SPARKASSEN IMMO % 50% 53% 0.0% 6.4% 7.8% UNIBAIL-RODAMCO % 86% 86% 6.0% 6.0% 6.2% Median % 81% 82% 4.6% 5.6% 5.9% Machinery manufacturer valuations / / EV/S EBITDA margin FAMUR % 29% 30% 0.0% 4.6% 0.0% KOPEX % 10% 14% 0.0% 0.0% 0.0% Median % 20% 22% 0.0% 2.3% 0.0% FOREIGN COMPANIES Atlas Copco % 25% 26% 3.2% 3.6% 4.2% Bucy rus % 20% 20% 0.1% 0.1% 0.1% Emeco % 46% 46% 1.4% 7.4% 5.3% Industrea % 2.8% 3.9% Joy Global % 22% 23% 1.0% 1.0% 1.1% Sandv ik % 20% 21% 3.2% 4.5% 5.4% Median % 22% 23% 2.1% 3.2% 4.0% Paper manufacturer valuations / / EV/S EBITDA margin MONDI % 24% 21% 0.0% 0.0% 12.8% FOREIGN COMPANIES Billerund % 18% 16% 5.9% 7.6% 7.7% Holmen % 18% 18% 3.7% 5.3% 5.3% INTL Paper % 14% 15% 1.5% 3.7% 4.1% M-Real % 13% 13% 1.1% 2.5% 4.1% Norske Skog % 11% 12% 0.0% 0.0% 0.0% Portucel EMP % 29% 29% 9.0% 8.0% 8.9% Stora Enso % 14% 14% 4.0% 4.4% 4.6% Sv enska % 15% 16% 4.7% 5.1% 5.4% UPM-Ky mmene % 18% 19% 5.4% 6.7% 7.0% Median % 15% 16% 4.0% 5.1% 5.3% Source: BRE Bank Securities for Polish companies, IBES/Bloomberg for foreign companies * polish company 28 September

11 WIG Banks index vs. WIG 20 index (EUR) 780 OTP and Komercni s relative performance vs. WIG Banks index (EUR) WIG 20 WIG Banks relative 960 WIG Banks OTP relative Komercni relative BRENT (USD/bbl) BRENT BRENT (USD/bbl) BRENT (USD/bbl) MARGIN BRENT/NWE 3:2: URALS/BRENT PRICE DIFFERENTIAL TPSA vs. BETELES - Bloomberg Europe 500 Telecom Services Index (EUR) National operator quotations: TPSA, Hungarian Magyar Telecom and Czech SPT (EUR) ` TPSA relative BETELES TPSA Matav relative SPT relative Source: Bloomberg 28 September

12 WIG Media index vs. WIG 20 index (EUR) 760 WIG IT index vs. MSCI WIG 20 WIG Media relative WIG IT MSCI relative WIG Construction index vs. WIG 20 index (EUR) 860 WIG Developers index vs. WIG 20 index (EUR) WIG 20 WIG Construction relative WIG 20 WIG Developers relative Copper price on LME USD/t 9900 KGHM vs. mining&metal sector index (USD) M mining&metal KGHM relative Source: Bloomberg 28 September

13 Michał Marczak tel. (+48 22) Managing Director Head of Research Strategy, Telco, Mining, Metals Research Department: Kamil Kliszcz tel. (+48 22) Fuels, Chemicals, Energy Piotr Grzybowski tel. (+48 22) IT, Media Maciej Stokłosa tel. (+48 22) Construction, Real-Estate Developers Jakub Szkopek tel. (+48 22) Manufacturers Iza Rokicka tel. (+48 22) Banks Gabriela Borowska tel. (+48 22) Retail Piotr Zybała tel. (+48 22) Real-Estate Developers Sales and Trading: Piotr Dudziński tel. (+48 22) Director Marzena Łempicka-Wilim tel. (+48 22) Deputy Director Traders: Emil Onyszczuk tel. (+48 22) Michał Jakubowski tel. (+48 22) Tomasz Jakubiec tel. (+48 22) Grzegorz Strublewski tel. (+48 22) Michał Stępkowski tel. (+48 22) Paweł Majewski tel. (+48 22) Foreign Markets Unit: Adam Prokop tel. (+48 22) Foreign Markets Manager Michał RoŜmiej tel. (+48 22) Jakub Słotkowicz tel. (+48 22) Jacek Wrześniewski tel. (+48 22) "Private Broker" Jarosław Banasiak tel. (+48 22) Director, Active Sales Dom Inwestycyjny BRE Banku S.A. ul. Wspólna 47/ Warszawa 28 September

14 List of abbreviations and ratios contained in the report. EV net debt + market value (EV economic value) EBIT Earnings Before Interest and Taxes EBITDA EBIT + Depreciation and Amortisation PBA Profit on Banking Activity P/CE price to earnings with amortisation MC/S market capitalisation to sales EBIT/EV operating profit to economic value (Price/Earnings) price divided by annual net profit per share ROE (Return on Equity) annual net profit divided by average equity P/BV (Price/Book Value) price divided by book value per share Net debt credits + debt papers + interest bearing loans cash and cash equivalents EBITDA margin EBITDA/Sales Recommendations of BRE Bank Securities S.A. A recommendation is valid for a period of 6-9 months, unless a subsequent recommendation is issued within this period. Expected returns from individual recommendations are as follows: BUY we expect that the rate of return from an investment will be at least 15% ACCUMULATE we expect that the rate of return from an investment will range from 5% to 15% HOLD we expect that the rate of return from an investment will range from 5% to +5% REDUCE we expect that the rate of return from an investment will range from -5% to -15% SELL we expect that an investment will bear a loss greater than 15% Recommendations are updated at least once every nine months. The present report expresses the knowledge as well as opinions of the authors on day the report was prepared. The opinions and estimates contained herein constitute our best judgement at this date and time, and are subject to change without notice. The present report was prepared with due care and attention, observing principles of methodological correctness and objectivity, on the basis of sources available to the public, which BRE Bank Securities S.A. considers reliable, including information published by issuers, shares of which are subject to recommendations. However, BRE Bank Securities S.A., in no case, guarantees the accuracy and completeness of the report, in particular should sources on the basis of which the report was prepared prove to be inaccurate, incomplete or not fully consistent with the facts. This document does not constitute an offer or invitation to subscribe for or purchase any financial instruments and neither this document nor anything contained herein shall form the basis of any contract or commitment whatsoever. It is being furnished to you solely for your information and may not be reproduced or redistributed to any other person. This document nor any copy hereof is not to be distributed directly or indirectly in the United States, Australia, Canada or Japan. Recommendations are based on essential data from the entire history of a company being the subject of a recommendation, with particular emphasis on the period since the previous recommendation. Investing in shares is connected with a number of risks including, but not limited to, the macroeconomic situation of the country, changes in legal regulations as well as changes on commodity markets. Full elimination of these risks is virtually impossible. BRE Bank Securities S.A. bears no responsibility for investment decisions taken on the basis of the present report or for any damages incurred as a result of investment decisions taken on the basis of the present report. It is possible that BRE Bank Securities S.A. renders, will render or in the past has rendered services for companies and other entities mentioned in the present report. BRE Bank Securities S.A., its shareholders and employees may hold long or short positions in the issuers shares or other financial instruments related to the issuers shares. BRE Bank Securities S.A., its affiliates and/or clients may conduct or may have conducted transactions for their own account or for account of another with respect to the financial instruments mentioned in this report or related investments before the recipient has received this report. Copying or publishing the present report, in full or in part, or disseminating in any way information contained in the present report requires the prior written agreement of BRE Bank Securities S.A. Recommendations are addressed to all Clients of BRE Bank Securities S.A. The activity of BRE Bank Securities S.A. is subject to the supervision of the Polish Financial Supervision Commission. BRE Bank Securities S.A. serves as underwriter for the following issuers: Asseco BS, Certyfikaty Skarbiec Nieruchomości, Erbud, Es- System, KRUK, LW Bogdanka, Macrologic, Magellan, Mieszko, Mondi, Neuca, Pemug, Polimex-Mostostal, Robyg, ZUE. BRE Bank Securities S.A. serves as market maker for the following issuers: Asseco BS, Rubikon Partners NFI, Asseco Poland, Erbud, Es- System, KGHM, KRUK, LW Bogdanka, Macrologic, Magellan, Mieszko, Mondi, Neuca, PA Nova, Pekao, Pemug, PKN Orlen, PKO BP, Robyg, TP SA, TVN, Unibep, Warfama, ZUE. BRE Bank Securities S.A. receives remuneration from issuers for services rendered to the following companies: AB, Action, Agora, Ambra, Bakalland, Boryszew, BPH, BRE Bank, BZ WBK, Deutsche Bank, DZ Bank Polska, Elzab, Enea, Energoaparatura, EnergomontaŜ Północ, Erbud, Es-System, Farmacol, Ferrum, Fortis Bank, Getin Holding, GTC, Handlowy, Impexmetal, ING BSK, Intergroclin Auto, Koelner, Kredyt Bank, KRUK, Magellan, Mennica, Mercor, Mieszko, Millennium, Mostostal Warszawa, Nepentes, Netia, Neuca, Odratrans, Pekao, Pemug, PGE, PGF, PGNiG, PKO BP, Polimex-Mostostal, Polmos Lublin, Polnord, Prokom Software, PZU, Robyg, Rubikon Partners NFI, Seco Warwick, Sfinks, Sokołów, Sygnity, Techmex, Unibep, ZA Puławy, ZUE. In the last 12 months BRE Bank Securities S.A. has been an offering agent of the issuer s shares in a public offering for the following companies: Kruk, PA Nova, PGE, Robyg, ZUE. Asseco Poland provides IT services to BRE Bank Securities. Individuals who did not participate in the preparation of recommendations, but had or could have had access to recommendations prior to their publication, are employees of BRE Bank Securities S.A. authorised to access the premises in which recommendations are prepared, other than the analysts mentioned as the authors of the present recommendations. Strong and weak points of valuation methods used in recommendations: DCF acknowledged as the most methodologically correct method of valuation; it consists in discounting financial flows generated by a company; its weak point is the significant susceptibility to a change of forecast assumptions in the model. Comparative based on a comparison of valuation multipliers of companies from a given sector; simple in construction, reflects the current state of the market better than DCF; weak points include substantial variability (fluctuations together with market indices) as well as difficulty in the selection of the group of comparable companies. 28 September