1 Pricing anomalies. The high correlation of stock markets. 2 High-yield stocks. Interest rates in the developed world

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1 Global Research German top picks H Stock selection:, H Company BBG Rating Target Price* Potential (Old)* return (% ) EV/ EBITDA 2011e PE 2011e Aareal Bank ARL GR OW(V) 28(26) % nm 11.1 Aixtron AIXA GR OW(V) 35(34) % Gagfah GFJ GR OW % Gerresheimer GXI GR OW 39(34) % Kloeckner & Co KCO GR OW(V) 27(25) % MTU Aero Engines MTX GR OW 60(52) % Tognum TGM GR OW 25(20) % Tomorrow Focus TFA GR OW(V) % Wacker Chemie WCH GR OW % Source: HSBC. *In euros; prices as at close 5 January Our top picks reports in the European small- and mid-cap space are designed to highlight Overweight ideas that we think are particularly worthy of attention in the coming three to six months. These are not necessarily the stocks with the greatest upside or downside to target prices on publication day. Thomas Teetz* Analyst HSBC Trinkaus & Burkhardt AG, Germany thomas.teetz@hsbc.de The German macroeconomic environment should stabilise in 2011, supported by strengthening domestic demand German midcaps should outperform again this year We identify six themes and identify nine stocks as our key investment ideas After dominating equity markets since mid-2007, the economic environment is likely to be more stable in The high-correlation environment of the past few quarters means that many stocks and sectors moved together that should not have, even in the mid-cap market. Since markets remain in risk on mode, we expect German midcaps could rise by 14% over the year because of their strong growth potential, attractive valuation parameters and an expected pick-up in M&A. In this report, we have developed what we see as the themes that will drive the German mid-cap market in Pricing anomalies. The high correlation of stock markets has resulted in significantly mispriced individual securities, suggesting investment opportunities. 2 High-yield stocks. Interest rates in the developed world will stay ultra-low for a long time. This boosts the income attraction of some yield stocks. 3 Cash-rich companies. Some companies have emerged better off financially from the recession. They are now in a position to invest excess cash on M&A or capex. 4 Winners from emerging-markets growth. The emerging-market story still has a way to go. We identify some less obvious winners. View HSBC Global Research at: *Employed by a non-us affiliate of HSBC Securities (USA) Inc, and is not registered/qualified pursuant to FINRA regulations Issuer of report: HSBC Trinkaus & Burkhardt AG Disclaimer & Disclosures This report must be read with the disclosures and the analyst certifications in the Disclosure appendix, and with the Disclaimer, which forms part of it 5 Techtonic and regulatory changes. We have tried to identify companies that will be able to benefit from major technological breakthroughs in the next few years. 6 German domestic recovery. Employment, consumer confidence and personal income are reaching multi-year highs, so domestic demand has become a second pillar of growth in Germany. We looked for winners from this development.

2 Tomorrow Focus Leading German internet firm, whose travel and dating platforms, Holidaycheck and Elitepartner, offer a promising growth profile The company is benefiting from rising internet penetration and usage in Germany as well as increasing online ad spending We reiterate our Overweight (V) rating and target price of EUR5 Investment case All about the internet Tomorrow Focus s core segment is e-commerce (70% of group sales). The segment includes the travel business (Holidaycheck, Germany s largest online travel platform by unique users and visits) and dating (ElitePartner, Germany s No. 2 premium dating site, with about 2 million members). The company is also one of the leading online marketing service providers, with a brand portfolio of c50 websites. The outlook for group EBIT is promising: our 2010e-12e CAGR forecast of c32% is driven by the international roll-out of the profitable travel platform in Europe. Tomorrow Focus will benefit from the continued increase in internet usage in Germany and rising online ad spending driven by an improved macro environment. We expect online ad spending in Germany to rise c13%pa until 2014e. Ambitious mid-term strategy to 2015 After its Q report, management announced its new mid-term strategy for It aims to increase its revenues by more than 100%, to ceur250m, and has adopted an EBITDA target of EUR30m-40m. This strategy is to be achieved via the international roll-out of the company s existing e-commerce business, mainly with Holidaycheck, and further takeovers of already profitable companies. Based on its healthy cash flow generation we expect FCF yields of c9% for 2011 and c11% for 2012 and its solid financial structure, we expect the company to have ceur35m-40m available for acquisitions. We would not be surprised if it announced a takeover in H given the reference to a full pipeline of M&A targets in the Q conference call. Tobias Britsch* Analyst HSBC Trinkaus & Burkhardt AG, Germany tobias.britsch@hsbc.de *Employed by a non-us affiliate of HSBC Securities (USA) Inc, and is not registered/ qualified pursuant to FINRA regulations Financial summary (EURm) Valuation summary (x) Year to 12/2009a 12/2010e 12/2011e 12/2012e Year to 12/2009a 12/2010e 12/2011e 12/2012e Revenue Dividend yield (%) EBITDA EV/EBITDA EBIT margin (%) EV/IC HSBC net profit HSBC PE HSBC EPS (EUR) ROIC (%) HSBC EPS growth (%) HSBC REP Key data RIC TFAG.DE Bloomberg TFA GR Rating Overweight (V) Share (EUR) 3.61 Target (EUR) 5.00 Market cap (EURm) Free float (%) 30 Source: HSBC estimates Source: HSBC estimates 56

3 Outlook Sales will be driven by e-commerce and M&A We are projecting a e sales CAGR of 16.2%, driven mainly by the e-commerce segment, which accounts for 70% of group sales. In this segment we expect a e sales CAGR of c22%. The company s new mid-term strategy to reach revenues of EUR250m by 2015 leads us to expect further acquisitions in the next two years. Cost optimisation to boost profitability We expect the EBIT margin to increase 200bp from its 2010e level, to 13.0% in 2012e, driven by a decline in COGS in particular the reduction in printing and publishing costs arising from the sale of the 50.4% stake in the German publishing company of Playboy in early October Profitability should also benefit from a reduction in the personnel-cost-to-sales ratio, from 16% in 2009 to 15% in 2012e. We assume that the bulk of new hires will be for call-centre activities less expensive employees than IT-developers or salespeople. Net profit improvement We expect net profit to increase to EUR16m in 2012e from EUR2.9m in 2009, benefiting from higher profitability at the EBIT level. We expect a rise in cash too boost interest income, causing the net financial result to decline by more than 30% to EUR2.7m. At the bottom line we expect EPS to increase by five times to EUR0.30 in 2012e from EUR0.06 in Tomorrow Focus HSBCe versus consensus (EURm) 2010e 2011e 2012e Sales HSBCe Consensus difference 0% 3% 13% EBIT HSBCe Consensus difference 7% 2% 12% EPS (EUR) HSBCe Consensus difference 4% 11% 21% Source: HSBCe, Thomson Reuters Datastream Catalysts Catalysts would be: 1) announcements of valueadded takeovers, especially in the company s e- commerce business in H1 2011; 2) the faster-thanexpected international roll-out of its booking platform for Holidaycheck; 3) a strong set of 2010 figures, scheduled to be reported on 31 March 2011; 4) a stronger-than-expected increase in companies budgets for online ad spending; and 5) a faster-thanexpected rise in internet usage and online buyers. Valuation and risks HSBC has introduced new estimates for the cost of equity across global markets. Based on our new cost of capital (WACC of 9.3%, up from 9.2% using a 3.5% risk-free-rate, a 5% equity risk premium and a beta of 1.2) as well as a terminal value with a longterm growth rate (LTG) of 2.0% our fundamental DCF model yields an unchanged 12-month target price of EUR5. Under the HSBC research model for stocks with a volatile indicator, the Neutral band is 10pp above and below the hurdle rate for Europe ex-uk stocks of 8.5%. Our 12-month target price of EUR5 implies a potential return of c39%, which is above the Neutral band; we therefore reiterate our Overweight (V) rating on the stock. We believe the major downside risks to our rating are: 1) execution risks related to the international roll-out of the company s platform business in the e- commerce segment, in particular Holidaycheck which, as expected, required higher investments and a longer time-period to break even; (2) a loss in market share for its dating platform, ElitePartner, and a decline in membership resulting from aggressive marketing campaigns by competitors; (3) a failure by the acquired companies to achieve expected growth and profitability rates, which could lead to restructuring costs and put pressure on margins. 57

4 Tomorrow Focus in pictures Sales by division (2010e) Sales and EBIT margin development ( e) Technology 10% Portal e- commerce 64% % 10.0% 5.0% 0.0% 25% e 2011e 2012e Sales (EURm) EBIT margin (%) Source: HSBC estimates Source: Company data, HSBC estimates OCF, net debt to EBITDA and cash projections ( e) Capex development ( e) % 1. 5% 1. 0% 0. 5% 0. 0% e 2011e 2012e e 2011e 2012e Operating cash flow (EURm) Cash (EURm) N et debt to EBITDA (R HS) Capex (EURm) Capex to s ales ratio (%) Source: Company data, HSBC estimates Source: Company data, HSBC estimates Balance sheet ratios ( e) Shareholder structure (October 2010) % 15.0% Freefloat 30% % 5.0% e 2011e 2012e 0.0% Gearing ROIC (%) ROE (%) Management 6% Burda Group 63% Source: Company data, HSBC estimates Source: Company data 58

5 Financials & valuation: Tomorrow Focus AG Overweight (V) Financial statements Year to 12/2009a 12/2010e 12/2011e 12/2012e Profit & loss summary (EURm) Revenue EBITDA Depreciation & amortisation Operating profit/ebit Net interest PBT HSBC PBT Taxation Net profit HSBC net profit Cash flow summary (EURm) Cash flow from operations Capex Cash flow from investment Dividends Change in net debt FCF equity Balance sheet summary (EURm) Intangible fixed assets Tangible fixed assets Current assets Cash & others Total assets Operating liabilities Gross debt Net debt Shareholders funds Invested capital Ratio, growth and per share analysis Year to 12/2009a 12/2010e 12/2011e 12/2012e Y-o-y % change Revenue EBITDA Operating profit PBT HSBC EPS Ratios (%) Revenue/IC (x) ROIC ROE ROA EBITDA margin Operating profit margin EBITDA/net interest (x) Net debt/equity Net debt/ebitda (x) CF from operations/net debt Per share data (EUR) EPS Rep (fully diluted) HSBC EPS (fully diluted) DPS Book value Valuation data Year to 12/2009a 12/2010e 12/2011e 12/2012e EV/sales EV/EBITDA EV/IC PE* P/Book value FCF yield (%) Dividend yield (%) Note: * = Based on HSBC EPS (fully diluted) Issuer information Share price (EUR) 3.61 Target price (EUR) 5.00 Potent'l rtn (%) 38.5 Reuters (Equity) TFAG.DE Bloomberg (Equity) TFA GR Market cap (USDm) Market cap (EURm) Free float (%) 30 Enterprise value (EURm) Country Germany Sector Internet Analyst Tobias Britsch Contact Price relative Jan-10 Jul-10 Jan-11 Tomorrow Focus Ag Rel to DAX-100 Source: HSBC Note: price at close of 05 Jan

6 HSBC German Small & Mid Cap Universe HSBC German Small & Mid Cap Universe Name Reuters Bloomberg Country Analyst Phone Last rating Target price (EUR) Last close (EUR) as of 05/01/2010 Aareal Bank ARLG.DE ARL GR Germany Thormann, Johannes Overweight (V) Aixtron AIXGn.DE AIXA GR Germany Rath, Christian Overweight (V) Alstria Office REIT AOXG.DE AOX GR Germany Martin, Thomas Neutral (V) Aurubis NAFG.DE NDA GR Germany Zimmermann, Thorsten Neutral (V) Baader Bank BLMG.DE BWB GR Germany Thormann, Johannes Overweight (V) Bauer B5AG.DE B5A GR Germany Siebrecht, Juergen Underweight (V) Bilfinger Berger GBFG.DE GBF GR Germany Teetz, Thomas Neutral Biotest BIOG_p.DE BIO3 GR Germany Keppeler, Jan Overweight Brenntag Holding BNRGn.DE BNR GR Germany Mayer-Wegelin, Jesko Overweight (V) Carl Zeiss Meditec AFXG.DE AFX GR Germany Keppeler, Jan Overweight Centrosolar C3OG.DE C3O GR Germany Rath, Christian Overweight (V) Centrotec CEVG.DE CEV GR Germany Behrens, Svenjo Overweight (V) Centrotherm PV CTNG.DE CTN GR Germany Rath, Christian Neutral (V) Colonia Real Estate KBUG.DE KBU GR Germany Martin, Thomas Neutral (V) Compugroup COPMa.DE COP GR Germany Britsch, Tobias Overweight DAB Bank DRNG.DE DRN GR Germany Thormann, Johannes Neutral Demag Cranes D9CGn.DE D9C GR Germany Schramm, Richard Neutral Deutsche Beteiligung DBAG.DE DBA GR Germany Teetz, Thomas Neutral Deutsche Euroshop DEQGn.DE DEQ GR Germany Martin, Thomas Neutral Deutsche Wohnen DWNG.DE DWNI GR Germany Martin, Thomas Neutral (V) Deutz DEZG.DE DEZ GR Germany Siebrecht, Juergen Overweight Dic Asset DAZG.DE DAZ GR Germany Martin, Thomas Overweight Douglas Holding DOHG.DE DOU GR Germany Britsch, Tobias Overweight Draegerwerk DRWG_p.DE DRW3 GR Germany Keppeler, Jan Neutral (V) Drillisch DRIG.DE DRI GR Germany Klarmann, Dominik Overweight (V) ElringKlinger ZILGn.DE ZIL2 GR Germany Fehre, Niels Neutral (V) Fielmann FIEG.DE FIE GR Germany Britsch, Tobias Neutral Fraport FRAG.DE FRA GR Germany Thomas, Joseph Neutral Freenet FNTG.DE FNTN GR Germany Klarmann, Dominik Overweight Fuchs Petrolub FPEG.DE FPE GR Germany Mayer-Wegelin, Jesko Neutral (V) Gagfah SA GFJG.DE GFJ GR Germany Martin, Thomas Overweight GEA Group G1AG.DE G1A GR Germany Siebrecht, Juergen Neutral Gerresheimer GXIG.DE GXI GR Germany Keppeler, Jan Overweight Gerry Weber GWIG.DE GWI1 GR Germany Britsch, Tobias Neutral Gesco GSCG.DE GSC GR Germany Teetz, Thomas Overweight GfK Group GFKG.DE GFK GR Germany Britsch, Tobias Neutral Gildemeister GILG.DE GIL GR Germany Siebrecht, Juergen Neutral (V) Grenke Leasing GKLG.DE GLJ GR Germany Mayer-Wegelin, Jesko Overweight H&R Wasag WASG.DE WAS GR Germany Mayer-Wegelin, Jesko Underweight (V) Hannover Re HNRGn.DE HNR1 GR Germany Fossard, Thomas Overweight (V) Heidelberger Druck HDDG.DE HDD GR Germany Schramm, Richard Overweight (V) Source: HSBC estimates 64

7 HSBC German Small & Mid Cap Universe (cont d) Name Reuters Bloomberg Country Analyst Phone Last rating Target price Last close (EUR) (EUR) as of 05/01/2011 HHLA HHFGn.DE HHFA GR Germany Schramm, Richard Neutral (V) Hochtief HOTG.DE HOT GR Germany Teetz, Thomas Overweight (V) Homag Group HG1G.DE HG1 GR Germany Schramm, Richard Neutral (V) Hugo Boss BOSG_p.DE BOS3 GR Germany Britsch, Tobias Neutral (V) IVG Immobilien IVGG.DE IVG GR Germany Martin, Thomas Neutral (V) Jungheinrich JUNG_p.DE JUN3 GR Germany Schramm, Richard Neutral (V) Kabel Deutschland KD8Gn.DE KD8 GR Germany Klarmann, Dominik Overweight (V) Kloeckner & Co KCOGn.DE KCO GR Germany Siebrecht, Jürgen Overweight (V) Koenig & Bauer SKBG.DE SKB GR Germany Schramm, Richard Overweight (V) Krones KRNG.DE KRN GR Germany Schramm, Richard Neutral KUKA KU2G.DE KU2 GR Germany Schramm, Richard Neutral (V) Kws Saat KWSG.DE KWS GR Germany Mayer-Wegelin, Jesko Overweight Lanxess LXSG.DE LXS GR Germany Mayer-Wegelin, Jesko Neutral (V) Leoni LEOGn.DE LEO GR Germany Fehre, Niels Neutral (V) Manz Automation M5ZG.DE M5Z GR Germany Rath, Christian Underweight (V) MLP MLPG.DE MLP GR Germany Mayer-Wegelin, Jesko Overweight (V) MTU Aero Engines MTXGn.DE MTX GR Germany Schramm, Richard Overweight Nordex NDXGk.DE NDX1 GR Germany Rath, Christian Neutral OHB Technology OHBG.DE OHB GR Germany Schramm, Richard Overweight (V) Patrizia Immobilien P1ZGn.DE P1Z GR Germany Martin, Thomas Neutral Pfeiffer Vacuum PV.DE PFV GR Germany Rath, Christian Overweight Phoenix Solar PS4G.DE PS4 GR Germany Rath, Christian Overweight (V) Puma PUMG.DE PUM GR Germany Rambourg, Erwan Overweight Q-Cells QCEG.DE QCE GR Germany Rath, Christian Neutral (V) QSC QSCG.DE QSC GR Germany Klarmann, Dominik Underweight (V) R. STAHL RSLG.DE RSL1 GR Germany Schramm, Richard Neutral (V) Rational RAAG.DE RAA GR Germany Schramm, Richard Neutral REpower Systems RPWGn.DE RPW GR Germany Rath, Christian Neutral Rheinmetall RHMG.DE RHM GR Germany Schramm, Richard Overweight Rhoen-Klinikum RHKG.DE RHK GR Germany Keppeler, Jan Overweight Roth & Rau R8RG.DE R8R GR Germany Rath, Christian Underweight (V) Salzgitter SZGG.DE SZG GR Germany Siebrecht, Juergen Overweight SGL Carbon SGCG.DE SGL GR Germany Siebrecht, Juergen Neutral Sixt SIXG.DE SIX2 GR Germany Mayer-Wegelin, Jesko Overweight SMA Solar S92G.DE S92 GR Germany Rath, Christian Neutral (V) SolarWorld SWVG.DE SWV GR Germany Rath, Christian Overweight (V) Stratec Biomedical SBSG.DE SBS GR Germany Keppeler, Jan Overweight Suedzucker SZUG.DE SZU GR Germany Mayer-Wegelin, Jesko Overweight Symrise SY1G.DE SY1 GR Germany Mayer-Wegelin, Jesko Neutral (V) Takkt TTKG.DE TTK GR Germany Britsch, Tobias Overweight technotrans TTRG.DE TTR1 GR Germany Schramm, Richard Overweight (V) Tognum TGMG.DE TGM GR Germany Siebrecht, Juergen Overweight Tom Tailor TTIGn.DE TTI GR Germany Britsch, Tobias Neutral (V) Tomorrow Focus TFAG.DE TFA GR Germany Britsch, Tobias Overweight (V) United Internet UTDI.DE UTDI GR Germany Klarmann, Dominik Overweight (V) VBH Holding VBHG.DE VBH GR Germany Behrens, Svenjo Overweight (V) Versatel VTWGn.DE VTW GR Germany Klarmann, Dominik Neutral (V) VIB Vermoegen VIHG.DE VIH GR Germany Martin, Thomas Overweight (V) Vossloh VOSG.DE VOS GR Germany Siebrecht, Juergen Overweight Wacker Chemie WCHG.DE WCH GR Germany Rath, Christian Overweight WashTec WSUG.DE WSU GR Germany Schramm, Richard Neutral (V) Wincor Nixdorf WING.DE WIN GY Germany Schramm, Richard Overweight Xing OBCGn.DE O1BC GR Germany Klarmann, Dominik Overweight (V) Source: HSBC 65

8 Notes 66

9 Notes 67

10 Disclosure appendix Analyst Certification The following analyst(s), economist(s), and/or strategist(s) who is(are) primarily responsible for this report, certifies(y) that the opinion(s) on the subject security(ies) or issuer(s) and/or any other views or forecasts expressed herein accurately reflect their personal view(s) and that no part of their compensation was, is or will be directly or indirectly related to the specific recommendation(s) or views contained in this research report: Thomas Teetz, Richard Schramm, Juergen Siebrecht, Christian Rath, Tobias Britsch, Thomas Martin, Jan Keppeler and Johannes Thormann Important disclosures Stock ratings and basis for financial analysis HSBC believes that investors utilise various disciplines and investment horizons when making investment decisions, which depend largely on individual circumstances such as the investor's existing holdings, risk tolerance and other considerations. Given these differences, HSBC has two principal aims in its equity research: 1) to identify long-term investment opportunities based on particular themes or ideas that may affect the future earnings or cash flows of companies on a 12 month time horizon; and 2) from time to time to identify short-term investment opportunities that are derived from fundamental, quantitative, technical or event-driven techniques on a 0-3 month time horizon and which may differ from our long-term investment rating. HSBC has assigned ratings for its long-term investment opportunities as described below. This report addresses only the long-term investment opportunities of the companies referred to in the report. As and when HSBC publishes a short-term trading idea the stocks to which these relate are identified on the website at Details of these short-term investment opportunities can be found under the Reports section of this website. HSBC believes an investor's decision to buy or sell a stock should depend on individual circumstances such as the investor's existing holdings and other considerations. Different securities firms use a variety of ratings terms as well as different rating systems to describe their recommendations. Investors should carefully read the definitions of the ratings used in each research report. In addition, because research reports contain more complete information concerning the analysts' views, investors should carefully read the entire research report and should not infer its contents from the rating. In any case, ratings should not be used or relied on in isolation as investment advice. Rating definitions for long-term investment opportunities Stock ratings HSBC assigns ratings to its stocks in this sector on the following basis: For each stock we set a required rate of return calculated from the risk free rate for that stock's domestic, or as appropriate, regional market and the relevant equity risk premium established by our strategy team. The price target for a stock represents the value the analyst expects the stock to reach over our performance horizon. The performance horizon is 12 months. For a stock to be classified as Overweight, the implied return must exceed the required return by at least 5 percentage points over the next 12 months (or 10 percentage points for a stock classified as Volatile*). For a stock to be classified as Underweight, the stock must be expected to underperform its required return by at least 5 percentage points over the next 12 months (or 10 percentage points for a stock classified as Volatile*). Stocks between these bands are classified as Neutral. Our ratings are re-calibrated against these bands at the time of any 'material change' (initiation of coverage, change of volatility status or change in price target). Notwithstanding this, and although ratings are subject to ongoing management review, expected returns will be permitted to move outside the bands as a result of normal share price fluctuations without necessarily triggering a rating change. 68

11 *A stock will be classified as volatile if its historical volatility has exceeded 40%, if the stock has been listed for less than 12 months (unless it is in an industry or sector where volatility is low) or if the analyst expects significant volatility. However, stocks which we do not consider volatile may in fact also behave in such a way. Historical volatility is defined as the past month's average of the daily 365-day moving average volatilities. In order to avoid misleadingly frequent changes in rating, however, volatility has to move 2.5 percentage points past the 40% benchmark in either direction for a stock's status to change. Rating distribution for long-term investment opportunities As of 06 January 2011, the distribution of all ratings published is as follows: Overweight (Buy) 47% (24% of these provided with Investment Banking Services) Neutral (Hold) 38% (20% of these provided with Investment Banking Services) Underweight (Sell) 15% (22% of these provided with Investment Banking Services) Information regarding company share price performance and history of HSBC ratings and price targets in respect of its longterm investment opportunities for the companies the subject of this report,is available from HSBC & Analyst disclosures Disclosure checklist Company Ticker Recent price Price Date Disclosure AAREAL BANK ARLG.DE Jan , 5, 6, 7, 11 AIXTRON AIXGn.DE Jan KLOECKNER & CO KCOGn.F Jan TOMORROW FOCUS AG TFAG.DE Jan , 11 WACKER CHEMIE WCHG.DE Jan , 11 Source: HSBC 1 HSBC* has managed or co-managed a public offering of securities for this company within the past 12 months. 2 HSBC expects to receive or intends to seek compensation for investment banking services from this company in the next 3 months. 3 At the time of publication of this report, HSBC Securities (USA) Inc. is a Market Maker in securities issued by this company. 4 As of 31 December 2010 HSBC beneficially owned 1% or more of a class of common equity securities of this company. 5 As of 30 November 2010, this company was a client of HSBC or had during the preceding 12 month period been a client of and/or paid compensation to HSBC in respect of investment banking services. 6 As of 30 November 2010, this company was a client of HSBC or had during the preceding 12 month period been a client of and/or paid compensation to HSBC in respect of non-investment banking-securities related services. 7 As of 30 November 2010, this company was a client of HSBC or had during the preceding 12 month period been a client of and/or paid compensation to HSBC in respect of non-securities services. 8 A covering analyst/s has received compensation from this company in the past 12 months. 9 A covering analyst/s or a member of his/her household has a financial interest in the securities of this company, as detailed below. 10 A covering analyst/s or a member of his/her household is an officer, director or supervisory board member of this company, as detailed below. 11 At the time of publication of this report, HSBC is a non-us Market Maker in securities issued by this company and/or in securities in respect of this company Analysts, economists, and strategists are paid in part by reference to the profitability of HSBC which includes investment banking revenues. For disclosures in respect of any company mentioned in this report, please see the most recently published report on that company available at * HSBC Legal Entities are listed in the Disclaimer below. 69

12 Additional disclosures 1 This report is dated as at. 2 All market data included in this report are dated as at close 05 January 2011, unless otherwise indicated in the report. 3 HSBC has procedures in place to identify and manage any potential conflicts of interest that arise in connection with its Research business. HSBC's analysts and its other staff who are involved in the preparation and dissemination of Research operate and have a management reporting line independent of HSBC's Investment Banking business. Information Barrier procedures are in place between the Investment Banking and Research businesses to ensure that any confidential and/or price sensitive information is handled in an appropriate manner. 4 As of 31 December 2010, HSBC and/or its affiliates (including the funds, portfolios and investment clubs in securities managed by such entities) either, directly or indirectly, own or are involved in the acquisition, sale or intermediation of, 1% or more of the total capital of the subject companies securities in the market for the following Company(ies) : AIXTRON, KLOECKNER & CO 5 HSBC Trinkaus & Burkhardt acts as a designated sponsor to the following companies, and as such has an agreement with such companies to engage in market making activities and/or to publish research in connection with the securities of the following company(ies): AAREAL BANK, WACKER CHEMIE, TOMORROW FOCUS AG 70

13 Disclaimer * Legal entities as at 31 January 2010 'UAE' HSBC Bank Middle East Limited, Dubai; 'HK' The Hongkong and Shanghai Banking Corporation Limited, Hong Kong; 'TW' HSBC Securities (Taiwan) Corporation Limited; 'CA' HSBC Securities (Canada) Inc, Toronto; HSBC Bank, Paris branch; HSBC France; 'DE' HSBC Trinkaus & Burkhardt AG, Dusseldorf; 000 HSBC Bank (RR), Moscow; 'IN' HSBC Securities and Capital Markets (India) Private Limited, Mumbai; 'JP' HSBC Securities (Japan) Limited, Tokyo; 'EG' HSBC Securities Egypt S.A.E., Cairo; 'CN' HSBC Investment Bank Asia Limited, Beijing Representative Office; The Hongkong and Shanghai Banking Corporation Limited, Singapore branch; The Hongkong and Shanghai Banking Corporation Limited, Seoul Securities Branch; The Hongkong and Shanghai Banking Corporation Limited, Seoul Branch; HSBC Securities (South Africa) (Pty) Ltd, Johannesburg; 'GR' HSBC Pantelakis Securities S.A., Athens; HSBC Bank plc, London, Madrid, Milan, Stockholm, Tel Aviv, 'US' HSBC Securities (USA) Inc, New York; HSBC Yatirim Menkul Degerler A.S., Istanbul; HSBC México, S.A., Institución de Banca Múltiple, Grupo Financiero HSBC, HSBC Bank Brasil S.A. - Banco Múltiplo, HSBC Bank Australia Limited, HSBC Bank Argentina S.A., HSBC Saudi Arabia Limited., The Hongkong and Shanghai Banking Corporation Limited, New Zealand Branch. 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14 European Small & Mid-Cap Research Team David May Head of Equity Research, EMEA France Pierre Bosset Analyst, Head of French Research pierre.bosset@hsbc.fr Murielle Andre-Pinard murielle.andre.pinard@hsbc.com Antonin Baudry antonin.baudry@hsbc.fr Stéphanie Dossmann stephanie.dossmann@hsbc.com Christophe Quarante christophe.quarante@hsbc.com Emmanuelle Vigneron emmanuelle.vigneron@hsbcib.com Olivier Moral olivier.moral@hsbc.com Germany/Austria Thomas Teetz Analyst, Head of Equity Research thomas.teetz@hsbc.de Niels Fehre niels.fehre@hsbc.de Thomas Martin thomas.martin@hsbc.de Jesko Mayer-Wegelin jesko.mayer-wegelin@hsbc.de Christian Rath christian.rath@hsbc.de Richard Schramm richard.schramm@hsbc.de Dominik Klarmann dominik.klarmann@hsbc.de Juergen Siebrecht juergen.siebrecht@hsbc.de Johannes Thormann Global Head of Exchanges johannes.thormann@hsbc.de Tobias Britsch tobias.britsch@hsbc.de Svenjo Behrens svenjo.behrens@hsbc.de Jan Keppeler jan.keppeler@hsbc.de ChristopherJohnen christopher.johnen@hsbc.de Greece Joanna Telioudi Analyst, Head of Greek Research joanna.telioudi@hsbc.com Paris Mantzavras paris.mantzavras@hsbc.com Vangelis Karanikas vangelis.karanikas@hsbc.com Spiros Tsangalakis spiros.tsangalakis@hsbc.com United Kingdom Matthew Lloyd Analyst, Head of UK Small & Mid-Cap Research matthew.lloyd@hsbcib.com Robert Clover Analyst, Head of Alternative Energy Research robert.clover@hsbcib.com Robin Byde Global Head of Transport robin.byde@hsbcib.com James Magness james.magness@hsbcib.com John Fraser-Andrews john.fraser-andrews@hsbcib.com Verity Mitchell verity.mitchell@hsbcib.com Paul Rossington paul.rossington@hsbcib.com Nic Lyle nicolaslyle@hsbcib.com Dan Graham dan.graham@hsbcib.com Ben O Toole ben.otoole@hsbcib.com Anil Kumar T anil.kumar.tulsiram@hsbc.co.in Suman Guliani sumanguliani@hsbc.co.in Rajesh Kumar Singla rajeshsingla@hsbc.co.in Vikram Viswanathan vikramviswanathan@hsbc.co.in Small & Mid-cap Sales David Rideau david.rideau@hsbc.com Philip Dragoumis philip.dragoumis@hsbc.gr Thanassis Drogossis thanassis.drogossis@hsbc.com Laurent Kieffer laurent.kieffer@hsbc.com Binoy Malde binoy.malde@hsbcib.com Katen Patel katen.patel@hsbcib.com Giles Wadman giles.wadman@hsbcib.com Michael Busch michael.busch@hsbctrinkaus.de Tim Juskowiak tim.juskowiak@hsbctrinkaus.de Sonja Kimmeskamp sonja.kimmeskamp@hsbctrinkaus.de Ines Struck ines.struck@hsbctrinkaus.de