Sei sulla pagina 1di 16

European Strategy Weekly

EUROPEAN STRATEGY

EQUITY RESEARCH

Worse than 08?

August 21, 2011

On some measures European stocks are now trading on similar valuations to those that prevailed in early 2009, while others are fast approaching that point.

Research analysts
European Strategy Ian Scott - NIplc ian.scott@nomura.com +44 20 7102 2959 Inigo Fraser-Jenkins - NIplc inigo.fraser-jenkins@nomura.com +44 20 7102 4658 Shanthi Nair - NIplc shanthi.nair@nomura.com +44 20 7102 4518 Mark Diver - NIplc mark.diver@nomura.com +44 20 7102 2987 Saurabh Katiyar skatiyar@nomura.com +44 20 7102 9135 Rohit Thombre rohit.thombre@nomura.com +44 20 710 25461 Robertas Stancikas - NIplc Robertas.stancikas@nomura.com +44 20 7102 3127 Maureen Hughes - NIplc m.hughes@nomura.com +44 20 7102 4659

We do not think the fundamentals are as severe as they were back then. With European stocks now priced for a hit to earnings of approximately
30%, we still believe the overall market is oversold at current levels.

That said, within the market, the most cyclical sectors still trade on

above normal multiples and are vulnerable to further underperformance.

See Appendix A-1 for analyst certification and important disclosures. Analysts employed by non US affiliates are not registered or qualified as research analysts with FINRA in the US.
Rating: See report end for details of Nomuras rating system.

Nomura | European Strategy Weekly

August 21, 2011

To be a seller of European stocks at current prices one really has to think that the fundamentals are at least as bad as they were in the aftermath of the collapse of Lehman Brothers. We doubt that this is the case.
Fig. 1: Pan-European price/book multiple
4.0 3.5 3.0 2.5 2.0 1.5 1.0
Ratio

Ian Scott +44 20 7102 4659 ian.scott@nomura.com

Jan-11

European equities trade on 1.25x book value compared to their nadir of 1.1x in March 2009

Jan-88

Jan-89

Jan-90

Jan-91

Jan-92

Jan-93

Jan-94

Jan-95

Jan-96

Jan-97

Jan-98

Jan-99

Jan-00

Jan-01

Jan-02

Jan-03

Jan-04

Jan-05

Jan-06

Jan-07

Jan-08

Jan-09

Source: FTSE, Worldscope, Nomura Equity research

Fig. 2: Pan-European free cash-flow yield


9 8 7 6 5 4 3 2 1 0
%

Jan-10 Jan-10

Jan-88

Jan-89

Jan-90

Jan-91

Jan-92

Jan-93

Jan-94

Jan-95

Jan-96

Jan-97

Jan-98

Jan-99

Jan-00

Jan-01

Jan-02

Jan-03

Jan-04

Jan-05

Jan-06

Jan-07

Jan-08

Source: FTSE, Worldscope, Nomura Equity research

At the time of writing, European equities sell for 1.25 times their last reported book value, compared with a nadir of 1.1 times in March 2009, and the non-financials have a free cash-flow yield of 7.9% (which covers their dividends almost twice over) compared with 8.2% in March 2009. The forward PE of 9x sits 30% below the steady range seen between 2003 and 2007, a similar multiple to the one that prevailed in mid 2009 at the trough of the earnings cycle. On this basis one might argue that a 30% cut to EPS forecasts is already in the price.

Jan-09

Jan-11

Nomura | European Strategy Weekly

August 21, 2011

Fig. 3: Pan-European 12-month forward PE


23 21 19 17 15 13 11 9 7
Ratio

Jan-88

Jan-89

Jan-90

Jan-91

Jan-92

Jan-93

Jan-94

Jan-95

Jan-96

Jan-97

Jan-98

Jan-99

Jan-00

Jan-01

Jan-02

Jan-03

Jan-04

Jan-05

Jan-06

Jan-07

Jan-08

Jan-09

Source: FTSE, IBES, Nomura Equity research

In early 2009, not only was the global economy in the midst of the worst recession since the 1930s, but the financial system was also close to collapse. Credit spreads were over 200 basis points at their widest point, and it was unclear whether the authorities would not or could not stem the tide. Spreads are wide now but closer to their 2010 wide point rather than the 2008/09 period.
Fig. 4: European credit spreads
250
Basis points

Jan-10

Jan-11

2009 saw not only the worst recession since the 1930s, but the financial system was also close to collapse

200

150

100

50

Nov-06

Nov-07

Nov-08

Nov-09

May-07

May-08

May-09

May-10

Nov-10

Aug-07

Aug-08

Aug-09

Aug-10

Feb-11

Figure shows the Markit iTraxx Europe Index, which is composed of 125 investment grade entities. Source: Bloomberg

Similarly, with the financials, CDS, while inflated are closer to the 2010 wides than the 2008/09 period.

May-11

Feb-07

Feb-08

Feb-09

Feb-10

Nomura | European Strategy Weekly

August 21, 2011

Fig. 5: European Financials CDS


300 250 200 150 100 50 0
CDS spread (bp)

Jan-11

Jan-06

Jan-07

Jan-08

Jan-09

Jan-10

Apr-11

Jul-06

Jul-07

Jul-08

Jul-09

Jul-10

Oct-06

Oct-07

Oct-08

Oct-09

*5-year CDS for individual companies are weighted together according to their stock market capitalisations. Source: Datastream, Nomura Strategy research

Where we continue to see a set of expectations out of step with the current economic situation is among Europes cyclical companies. They continue to trade on a price/book premium to the norm compared with the non-cyclical part of the market (Figure 6).
Fig. 6: European cyclical versus non-cyclical sector valuations price/book
1.3 1.2 1.1 1.0 0.9 0.8 0.7 0.6 0.5 0.4 0.3
Ratio

Oct-10

Apr-06

Apr-07

Apr-08

Apr-09

Apr-10

Jul-11

We continue to be surprised by the high multiples demanded for cyclical companies

Jan-88

Jan-89

Jan-90

Jan-91

Jan-92

Jan-93

Jan-94

Jan-95

Jan-96

Jan-97

Jan-98

Jan-99

Jan-00

Jan-01

Jan-02

Jan-03

Jan-04

Jan-05

Jan-06

Jan-07

Jan-08

Jan-09

Weighted price/book multiple based on stocks in the Basic Industries, Capital Goods and Consumer Cyclical sectors, divided by Utilities, Healthcare and Consumer Staples. Source: Worldscope, Nomura Strategy research

Even on PE with the cyclical vulnerable to further downgrades they still do not yet offer the value consistent with past historical lows such as 2001 and 2008.

Jan-10

Jan-11

Nomura | European Strategy Weekly

August 21, 2011

Fig. 7: European cyclical versus non-cyclical sector valuations PE


1.6 1.5 1.4 1.3 1.2 1.1 1 0.9 0.8 0.7 0.6 0.5
Ratio

Jan-88

Jan-89

Jan-90

Jan-91

Jan-92

Jan-93

Jan-94

Jan-95

Jan-96

Jan-97

Jan-98

Jan-99

Jan-00

Jan-01

Jan-02

Jan-03

Jan-04

Jan-05

Jan-06

Jan-07

Jan-08

Jan-09

Weighted PE multiple based on stocks in the Basic Industries, Capital Goods and Consumer Cyclical sectors, divided by Utilities, Healthcare and Consumer Staples. Source: Worldscope, Nomura Strategy research

So once again, while we find the overall market to be oversold and consistent with a recessionary downgrade to current EPS forecasts in the region of 30%, at the sector level the market still accords the cyclical sectors a set of valuations inconsistent with the current risks to their earnings.

Jan-10

Jan-11

Nomura | European Strategy Weekly

August 21, 2011

European recommended portfolio


Sector Basic Industries Capital Goods Stock Calendarised EPS y/e Price/ Price (LC) Mkt Cap Dec1 earnings Currency 18 Aug 11 US$m 2010a/e 2011e 2012e Dec 11 (x) GBP EUR GBP EUR GBP GBP GBP GBP EUR GBP EUR EUR GBP EUR CHF EUR EUR GBP EUR GBP CHF GBP GBP GBP GBP EUR CHF CHF EUR GBP GBP GBP EUR EUR EUR EUR EUR NOK GBP
2010
5.3 11.7

Date Added 11 Dec 09 13 Nov 09 3 Dec 10 8 Oct 10 23 Oct 09 3 Dec 10 3 Dec 10 22 May 09 4 Oct 10 4 Oct 10 16 Apr 10 12 Jun 11 2 Jul 10 11 Dec 09 17 Sep 10 16 Apr 10 9 Jan 09 31 Jul 09 9 Jan 09 11 Dec 09 11 Dec 09 8 Jul 11 3 Dec 10 3 Dec 10 3 Dec 10 4 Sep 09 3 Dec 10 9 Jan 09 3 Dec 10 4 Sep 09 3 Dec 10 3 Dec 10 22 Jul 11 23 Oct 09 23 Oct 09 9 Jan 09 4 Sep 09 8 May 09 4 Sep 09
2000
14.7 -2.9

Rel Perf. Rel Perf. since Over Added week 22 -67 3 1 49 -5 -4 -30 5 -14 -23 -23 -47 -72 -20 -44 -65 -6 -42 42 17 -17 17 -7 31 3 -18 2 1 10 -7 18 -17 9 4 -27 10 90 24
1999
67.4 25.4

Analyst Rating2 Not Rated Not Rated Buy Buy Buy Buy Not Rated Not Rated Not Rated Not Rated Buy Buy Buy Neutral Buy Buy Buy Buy Buy Buy Buy Buy Not Rated Buy Not Rated Buy Buy Buy Buy Buy Buy Buy Buy Buy Buy Buy Buy Buy Neutral
1996 1995
35.7 24.7 17.8 11.2

RIO TINTO PLC GAMESA CORP TECNO MEGGITT PLC THALES SA Consumer Cyclicals COMPASS GROUP INTERCONTINENTAL HOTELS PLC Energy AMEC PLC BP PLC REPSOL TULLOW Financials - Banks BNP PARIBAS CREDIT AGRICOLE LLOYDS NATIONAL BANK OF GREECE UBS AG UNICREDITO ITALIANO Financials - Insurance AEGON NV AVIVA PLC AXA LEGAL & GENERAL GROUP PLC ZURICH FINANCIAL SERVICES AG Financials - Other 3I GROUP PLC GT PORTLAND ESTATES ICAP PLC LAND SECURITIES PLC Healthcare MERCK KGAA NOBEL BIOCARE HLDG NOVARTIS AG Media PUBLICIS GROUPE REED ELSEVIER WPP PLC Technology AUTONOMY PLC CAPGEMINI SA ILIAD S.A. SAP AG STMICROELECTRONICS Telecoms DEUTSCHE TELECOM TELENOR ASA Utilities NATIONAL GRID PLC

34.95 86,338 3.90 1,378 3.23 4,133 24.55 2,798 5.15 15,936 9.88 4,715 9.29 5,068 4.00 124,089 18.19 31,776 9.94 14,479 34.21 51,055 6.23 8,566 0.30 19,709 3.75 5,129 10.65 51,081 0.96 26,469 2.91 7,964 3.22 15,177 10.56 35,059 0.95 9,206 166.10 30,967 2.04 3,241 3.67 1,889 4.02 4,394 7.63 9,781 63.51 5,873 9.86 1,550 43.96 138,043 31.07 6,341 4.61 9,235 6.01 12,453 14.29 5,708 27.07 6,003 80.09 2,510 34.26 45,092 4.28 4,185 9.17 42,937 82.35 12,471 5.90 34,076
2009 2008 4
49.4 33.2 -20.7 -20.4

7.2 0.3 0.3 -0.2 0.4 1.0 0.6 1.1 1.9 0.1 6.3 0.5 0.0 0.5 2.0 0.1 0.8 0.6 1.8 0.1 24.6 0.2 0.2 0.5 0.4 2.9 0.4 4.3 2.4 0.4 0.6 1.1 1.9 5.9 2.3 0.7 1.0 8.7 0.5
2006
20.9 17.2

10.8 0.3 0.3 2.4 0.4 1.1 0.7 1.2 2.0 0.9 8.0 1.7 0.0 0.6 2.0 0.2 0.7 0.6 2.1 0.1 20.9 0.3 0.1 0.5 0.4 4.3 0.7 4.8 2.6 0.5 0.6 1.3 2.5 5.4 2.7 0.9 1.0 8.1 0.5
2004
7.7 9.4

12.3 0.5 0.4 3.1 0.5 1.3 0.8 1.2 2.4 1.1 9.0 2.2 0.1 1.0 2.5 0.2 0.7 0.7 2.3 0.2 23.3 0.4 0.1 0.5 0.4 4.6 0.8 4.9 2.8 0.5 0.7 1.6 3.2 5.2 3.1 1.2 1.2 9.3 0.5
2003
22.5 12.6

3.2 13.0 10.5 10.2 12.4 8.7 13.2 3.4 9.3 10.7 4.3 3.7 NM 6.2 5.5 5.9 4.5 5.3 5.1 6.7 8.0 6.3 46.1 7.7 20.7 14.6 15.1 9.1 12.0 10.1 9.6 11.2 10.9 14.9 12.6 4.8 9.3 10.2 11.4
2002
-34.0 -31.7

1 2 -1 -2 -2 -2 6 3 0 -3 -3 -2 -5 -4 -6 -4 3 -4 2 -1 1 -2 0 -1 -1 1 -22 3 -3 1 0 -7 -2 -1 -5 -10 0 -3 4
1997
43.2 40.5

Portfolio perf. (Euro Return, %)3 1 WK 1 MTH YTD 12 MTH -2.5 -16.1 -21.9 -20.2 Nomura Strategy Recommend Portfolio -0.9 -13.4 -15.5 -9.1 FTSE-World Europe Index
1

2007
-4.5 3.6

2005
21.7 23.0

2001
-21.2 -17.3

1998
26.4 18.6

EPS estimates are based on Nomura estimates (for stock s under coverage), IBES (for stock s not under coverage). 2 Analyst rating refers to Nomura research department rating. 3 Return history presented as price return in euro terms from before 2006. Returns from 2007 to present are on a total return basis. 4 Ending 12 September 2008. Please turn to the back cover for an explanation of Nomura's rating system. Past performance is not a guarantee of future results. Past performance should not and cannot be viewed as an indicator of future performance. Complete record available upon request. Source: IBES, IDC/Exshare, Factset, Nomura Strategy estimates

European recommended sector allocation


Benchmark Basic Industries Capital Goods Consumer Cyclicals Consumer Staples Energy Financials of which:
1

Recommended Weighting
6 9 2 0 19 35 16 11 8 6 6 10 5 3

Recommendation
Underw eight Neutral Underw eight Underw eight Overw eight Overw eight Overw eight Overw eight Overw eight Underw eight Overw eight Overw eight Underw eight Underw eight

11 7 9 14 11 20

We recommend overweighting the Oil sector and underweighting the Basic Industries sector; demand for non-oil commodities has become more sensitive to prices, while mining stocks are also expensive relative to Oils. We underweight sectors that are vulnerable to a rise in bond yields and prefer sectors that should benefit from a reduction in the equity risk premium. We also overweight sectors that should benefit from increased capital spending. We overweight Financials as asset price reflation should provide support. Valuations discount further capital raising; we think these concerns will be mitigated by rising asset values. We also overweight the Tech and Media sectors, which should benefit from increased business spending. We underweight the Utilities and Healthcare sectors. We have an underweight recommendation in Telecoms.

Banks Insurance Other

12 5 2 11 2 3 7 5

Healthcare Media Technology Telecoms Utilities


1

Combination of Cyclical Consumer Goods and Cyclical Services excluding Media. Source: Nomura Strategy research

Nomura | European Strategy Weekly

August 21, 2011

European index targets


Current Level* FTSE Europe FTSE Europe ex UK EURO STOXX 50 FTSE 100 (UK) Dax 30 CAC 40 SMI AEX IBEX OMX MIB
137 122 2331 5332 5949 3254 5421 293 8728 958 15951

End 2011 Price Return End 2011 (%)**


162 145 2850 6200 7500 3950 6200 355 10300 1100 19250

19 19 22 16 26 21 14 21 18 15 21

- We expect the European market to recover from current lows. - Equity valuations appear attractive to us, with embedded risk premiums
at high levels, and we expect the earnings recovery to continue, though at a slower pace.

- We think the market has overreacted to concerns of slowing growth, and


sentiment has moved to depressed levels.

- We think 2011 will see companies reinvest in their businesses, either


through organic investment or through M&A.

**Eur terms * As of 18-Aug-2011 We use the FTSE All World Developed index for Europe and Europe ex UK. Source: Nomura Strategy research

European earnings growth forecasts


2010 Europe ex UK1 UK2 Europe
* EPS growth
1 2

2011 11% 10% 11%

2012 15% 13% 15%

11% 17% 13%

We have lowered our earnings growth forecast for 2011 for continental Europe to take into account the lower growth in the first quarter.

We have lowered our earnings growth forecast for 2011 for Europe from 13% to 11%; our 2012 forecast is unchanged.

FTSE Europe ex UK FTSE 100

Source: Nomura Strategy research

Nomura | European Strategy Weekly

August 21, 2011

Investible themes
For details of the investible products based on these themes and how to trade them please contact the Quantitative Solutions Group on +44 (0) 20 7103 9988 or quant-eu@nomura.com. Our investible themes and style portfolios are listed on Bloomberg at NMRA<Go>. Bloomberg codes are listed, where applicable, with each theme below.

Our investible themes and style portfolios are listed on Bloomberg at NMRA<Go>. We show live tradable prices for these themes. Option 1 shows the long/short return of our key style portfolios, option 2 shows the returns of the top and bottom quartiles of the full range of styles and allows access to the constituents.

Investible themes are available under option 3 as shown below.

Source: Bloomberg

Nomura | European Strategy Weekly

August 21, 2011

Divestiture Basket
104.0 100.0 96.0 92.0 88.0 84.0 80.0 Jan-10 May-10 Sep-10 Jan-11 May-11 Index

Within overall M&A activity we think divestitures deserve special attention. We believe we could see divestitures and spin-offs increase during the rest of the year as companies seek to increase value for their shareholders. The basket consist of 19 European stocks that Nomura sector analysts consider potential candidates for spin-offs and divestitures. See European Strategy Weekly, Unlocking the value in divestitures , 10 April 2011.

Chart shows the performance of a basket of European stocks that are considered potential candidates for spin-offs and divestitures. The performance is shown on an equal weighted USD total return basis relative to market. Source: FTSE All World, Exshare, Nomura Strategy research

M&A Basket
128.0 123.0 118.0 113.0 108.0 103.0 98.0 93.0 Jan-10 May-10 Sep-10 Jan-11 May-11 Index

We expect M&A activity to pick up in 2011. It has been at a low ebb until recently yet corporates have large amounts of available cash. We identify companies that we think are potential targets to be bid for. For more details of the basket please see Can Companies Provide the Catalyst? (III) 30 January 2011.

Chart shows the performance of a basket of European stocks that we consider could be potential takeover targets based on a screening that takes into account valuation and the attractiveness of the companies as a strategic asset for potential buyers. The performance of the basket is shown relative to the FTSE ALL World Europe Index. The performance is shown on an equal weighted USD total return basis. Source: FTSE All World, Worldscope, Exshare, Nomura Strategy research

Organic Growth Basket II


Index 105.0 103.0 101.0 99.0 97.0 Dec- Jan-11 Feb10 11 Mar- Apr-11 May- Jun-11 Jul-11 11 11

- We expect the market to reward companies that can invest in


profitable internal growth opportunities.

- We have refreshed the constituents of our original Organic


Growth basket, which we closed on 09/06/2011.

- To derive the basket we look for European companies with

ROCE > 10%, where capex / depreciation (2010) ratio is greater than 1.5 and where we expect capex to grow in the next few years. We also looked for expected EPS growth in the next 3 years in excess of 10% pa, giving a total of 51 constituents.

Chart shows the performance of a basket of European stocks that we consider could be potential takeover targets based on a screening that takes into account valuation and the attractiveness of the companies as a strategic asset for potential buyers. The performance of the basket is shown relative to the FTSE ALL World Europe (ex financials) Index. The performance is shown on an equal weighted USD total return basis. Source: Nomura research, Bloomberg, FTSE All World, Exshare

Nomura | European Strategy Weekly

August 21, 2011

European Multifactor Model


108.0 106.0 104.0 102.0 100.0 98.0 96.0 94.0 92.0 Jan-08 Jul-08 Jan-09 Jul-09 Jan-10 Jul-10 Jan-11 Jul-11 Index

A quant-driven model that selects attractive and unattractive stocks each quarter. Uses a broad range of factors with regressions used to assign coefficients to factors based on the efficacy of factors in each sector.

Incorporates a non-linear interaction term that captures the level of agreement between value and momentum. See European Multifactor Model , 3 November 2008.

Chart shows the performance of our long-short European multifactor stock selection model. The performance is on a USD total return basis with a 5-day implementation lag at each quarter end. Sectors are equally weighted and stocks equally weighted within sectors. The Portfolios have been rebalanced quarterly.

Source: FTSE, Worldscope, IBES, Exshare, Nomura Strategy research

European Style Selector


130 125 120 115 110 105 100 95 90 Dec-07 Aug-08 Apr-09 Dec-09 Aug-10 Apr-11 Index

A quant-driven model that selects attractive and unattractive styles each quarter. Uses the valuation of style factors and the recent momentum of style factors to rank styles each month. See European Style Selector , 5 June 2009.

Chart shows the relative performance of attractive relative to unattractive styles according to our style selector model with styles rebalanced each month.

Source: FTSE World, Worldscope, IDC/Exshare, Nomura Strategy research

Closed trades
Trade On
Emerging Market Exposed Basket Government Spending basket Organic Grow th Basket I European Q-GAARP Basket Capital Structure Arbitrage Basket Dividend Theme Basket Source: Nomura Strategy research NMRAEQEM NMRAFISC 20/02/2009 23/01/2009 06/12/2010 08/01/2010 09/10/2009 19/02/2010

Trade Off

Return
Return relative to FTSE World European index in USD Return relative to FTSE World European index in USD Return relative to FTSE World European ex Financials index in USD Long/Short Return relative to FTSE World European index in USD

31/07/2009 27.60% 15/01/2010 37.80% 09/06/2011 -0.30% 03/12/2010 -5.33% 03/12/2010 -6.24% 03/12/2010 -6.63%

10

Nomura | European Strategy Weekly

August 21, 2011

European valuation and profitability


12 month Forward P/E1
Current Values Basic Industries Capital Goods Consumer Cyclicals Consumer Staples Energy Financials 2 of which: Banks Insurance Healthcare Technology Media Telecoms Utilities Market Eur ex UK 9.7 10.0 10.0 14.3 7.2 6.4 6.1 6.4 10.7 11.8 8.5 9.0 8.9 9.0 UK Europe 6.9 8.4 9.0 9.9 11.4 10.3 12.5 13.5 7.5 7.3 8.4 6.9 8.0 6.6 7.9 6.7 9.5 10.3 15.9 12.3 10.7 9.3 9.7 9.3 11.4 9.4 9.1 9.0 EEMEA 9.4 8.8 10.5 14.9 4.4 8.3 8.0 9.8 8.5 14.3 15.5 9.4 8.2 7.4 Post 1990 Average Basic Industries Capital Goods Consumer Cyclicals Consumer Staples Energy Financials2 of which: Banks Insurance Healthcare Technology Media Telecoms Utilities Market Eur ex UK 12.9 15.7 15.4 16.9 13.9 13.1 11.7 16.5 18.2 21.7 18.0 19.8 14.5 14.3 UK Europe 12.0 12.5 11.7 14.3 12.6 14.0 12.8 14.7 14.3 14.1 12.3 12.8 11.5 11.5 15.1 15.7 17.2 17.8 18.6 20.8 18.8 18.2 16.1 17.0 10.2 11.8 12.7 13.6 EEMEA5 11.1 7.8 9.0 10.9 7.6 9.0 9.2 8.6 18.9 13.9 41.6 14.2 11.6 9.7

Enterprise Value / Sales


Current Values Basic Industries Capital Goods Consumer Cyclicals Consumer Staples Energy Financials 2 of which: Banks Insurance Healthcare Technology Media Telecoms Utilities Market ex Financials Eur ex UK UK 1.1 1.8 0.9 0.8 0.9 0.9 1.2 1.5 0.7 0.7 NA NA NA NA NA NA 2.4 2.5 0.8 2.0 1.2 1.4 1.8 2.1 1.1 1.5 1.1 1.2 Europe 1.2 0.9 0.9 1.3 0.7 NA NA NA 2.4 0.9 1.3 1.9 1.1 1.1 EEMEA 2.2 0.7 0.8 0.9 1.0 NA NA NA 2.4 2.2 3.8 1.7 1.3 1.3 Post 1990 Average Basic Industries Capital Goods Consumer Cyclicals Consumer Staples Energy Financials2 of which: Banks Insurance Healthcare Technology Media Telecoms Utilities Market ex Financials Eur ex UK UK 1.0 1.5 0.8 0.9 0.8 1.1 1.1 1.3 1.0 1.1 NA NA NA NA NA NA 3.1 3.6 1.9 1.7 1.7 2.2 2.5 2.6 1.8 1.7 1.1 1.4 Europe 1.2 0.8 0.9 1.2 1.1 NA NA NA 3.3 1.9 1.9 2.4 1.7 1.2 EEMEA5 2.1 0.8 0.7 0.6 1.2 NA NA NA 4.1 1.9 1.8 2.8 1.8 1.3

Enterprise Value / EBITDA


Current Values Basic Industries Capital Goods Consumer Cyclicals Consumer Staples Energy Financials 2 of which: Banks Insurance Healthcare Technology Media Telecoms Utilities Market ex Financials Eur ex UK UK Europe 6.7 5.3 6.2 6.4 5.9 6.4 6.4 7.9 6.6 8.7 9.6 9.0 2.9 6.4 4.2 NA NA NA NA NA NA NA NA NA 7.9 5.3 6.9 5.4 11.9 6.0 4.8 8.4 5.8 4.8 5.6 5.0 5.1 7.5 5.5 5.9 6.6 6.1 EEMEA 7.3 5.5 8.0 9.9 4.0 NA NA NA 8.0 12.0 13.3 4.7 4.8 5.5 Post 1990 Average Basic Industries Capital Goods Consumer Cyclicals Consumer Staples Energy Financials2 of which: Banks Insurance Healthcare Technology Media Telecoms Utilities Market ex Financials Eur ex UK 6.1 6.8 6.7 8.7 5.3 NA NA NA 11.4 12.0 8.1 5.5 7.0 6.9 UK Europe 7.5 6.5 7.1 6.8 8.5 7.1 8.6 8.6 7.1 6.0 NA NA NA NA NA NA 12.0 11.6 11.5 11.7 10.6 8.9 6.9 5.9 6.5 6.7 7.7 7.1 EEMEA5 7.5 5.7 6.3 6.6 5.1 NA NA NA 16.2 11.1 8.7 7.6 6.5 6.3

1 Rat i r l ear ngs bef e os efect ni or 2 Fi nanci s excl ng al udi

goodw ilam ori aton l ts i RealEsat te 5 Pos 2000 aver t age f EEM EA r on or egi

Source: FTSE, Worldscope, IBES, Nomura Strategy research

11

Nomura | European Strategy Weekly

August 21, 2011

European valuation and profitability


Return on Capital Employed4 (ROE4 Financials)
Current Values Eur ex UK UK Basic Industries Capital Goods Consumer Cyclicals Consumer Staples Energy Financials 1,2 of which: Banks 2 Insurance2 Healthcare Technology Media Telecoms Utilities Market ex Financials 7.3 9.0 6.8 10.5 12.1 8.7 8.1 10.0 14.9 13.0 14.8 10.2 7.4 9.5 15.8 15.2 13.2 13.4 7.1 9.7 8.6 13.9 20.8 13.7 13.4 13.4 10.2 12.3 Europe 9.9 9.7 7.8 11.6 9.4 9.0 8.2 10.7 16.4 13.2 13.9 11.7 7.9 10.4 EEMEA 11.3 7.9 14.1 19.2 12.6 15.7 15.9 20.1 15.0 8.8 14.4 13.9 4.6 12.2 Basic Industries Capital Goods Consumer Cyclicals Consumer Staples Energy Financials1,2 of which: Banks2 Insurance2 Healthcare Technology Media Telecoms Utilities Market ex Financials Post 1990 Average Eur ex UK UK 9.1 8.2 6.5 11.8 12.6 9.7 9.3 11.4 13.4 10.6 12.1 8.8 7.8 9.0 11.7 10.4 9.3 12.4 12.5 11.9 14.6 11.4 26.7 12.8 16.1 9.4 9.0 11.4 Europe 9.8 8.6 7.1 12.0 12.6 10.2 10.4 11.4 17.0 11.1 13.8 9.3 8.1 9.6 EEMEA5 14.7 8.6 15.8 19.4 17.7 15.6 15.9 19.9 14.0 9.0 13.4 13.4 5.9 13.8

Enterprise Value / Capital Employed (P/BV Financials)


Current Values Eur ex UK UK Basic Industries Capital Goods Consumer Cyclicals Consumer Staples Energy Financials 1,3 of which: Banks 3 Insurance3 Healthcare Technology Media Telecoms Utilities Market ex Financials 1.2 1.2 1.1 1.7 1.0 0.6 0.6 0.8 1.8 1.2 1.0 1.1 0.8 1.2 1.4 1.6 1.7 2.1 1.2 0.8 0.8 1.0 2.7 2.3 1.4 1.0 1.4 1.5 Europe 1.2 1.3 1.1 1.9 1.1 0.7 0.6 0.8 2.0 1.3 1.1 1.1 0.9 1.3 EEMEA 1.8 0.9 1.7 3.1 0.9 1.4 1.5 1.4 1.4 1.4 2.2 1.5 0.8 1.2 Basic Industries Capital Goods Consumer Cyclicals Consumer Staples Energy Financials1,3 of which: Banks3 Insurance3 Healthcare Technology Media Telecoms Utilities Market ex Financials Post 1990 Average Eur ex UK UK
1.3 1.3 1.2 2.1 1.6 1.8 1.6 2.7 2.6 3.0 2.1 1.4 1.3 1.5 1.6 1.5 1.6 2.0 2.0 1.8 2.0 2.0 5.5 14.4 2.8 1.5 1.2 1.8

Europe
1.4 1.3 1.2 2.0 1.8 1.8 1.7 2.5 3.4 2.9 2.4 1.4 1.2 1.6

EEMEA5
1.9 1.0 1.7 2.2 1.3 1.9 2.1 1.5 2.9 1.7 1.8 2.3 0.9 1.5

1 Fi nanci s excl ng al udi

RealEsat te f Fi or nanci s al.

2 Ret n on equi us ur t ed y 3 Prce i 4 RO

t book val us f Fi o ue ed or nanci s al. aver age f EEM EA r on or egi

E and RoC E cal at pr goodw iland pr exceptonal. cul ed e l e i s

5 Pos 2000 t

Source: FTSE, Worldscope, IBES, Nomura Strategy research

12

Nomura | European Strategy Weekly

August 21, 2011

Appendix A-1
Analyst Certification
I, Ian Scott, hereby certify (1) that the views expressed in this Research report accurately reflect my personal views about any or all of the subject securities or issuers referred to in this Research report, (2) no part of my compensation was, is or will be directly or indirectly related to the specific recommendations or views expressed in this Research report and (3) no part of my compensation is tied to any specific investment banking transactions performed by Nomura Securities International, Inc., Nomura International plc or any other Nomura Group company.

13

Nomura | European Strategy Weekly

August 21, 2011

Important Disclosures
Online availability of research and additional conflict-of-interest disclosures
Nomura Japanese Equity Research is available electronically for clients in the US on NOMURA.COM, REUTERS, BLOOMBERG and THOMSON ONE ANALYTICS. For clients in Europe, Japan and elsewhere in Asia it is available on NOMURA.COM, REUTERS and BLOOMBERG. Important disclosures may be accessed through the left hand side of the Nomura Disclosure web page http://go.nomuranow.com/research/globalresearchportal or requested from Nomura Securities International, Inc., on 1-877-865-5752. If you have any difficulties with the website, please email grpsupport-eu@nomura.com for technical assistance. The analysts responsible for preparing this report have received compensation based upon various factors including the firm's total revenues, a portion of which is generated by Investment Banking activities. Unless otherwise noted, the non-US analysts listed at the front of this report are not registered/qualified as research analysts under FINRA/NYSE rules, may not be associated persons of NSI, and may not be subject to FINRA Rule 2711 and NYSE Rule 472 restrictions on communications with covered companies, public appearances, and trading securities held by a research analyst account. Industry Specialists identified in some Nomura International plc research reports are employees within the Firm who are responsible for the sales and trading effort in the sector for which they have coverage. Industry Specialists do not contribute in any manner to the content of research reports in which their names appear. Marketing Analysts identified in some Nomura research reports are research analysts employed by Nomura International plc who are primarily responsible for marketing Nomuras Equity Research product in the sector for which they have coverage. Marketing Analysts may also contribute to research reports in which their names appear and publish research on their sector.

Distribution of ratings (US)


The distribution of all ratings published by Nomura US Equity Research is as follows: 40% have been assigned a Buy rating which, for purposes of mandatory disclosures, are classified as a Buy rating; 10% of companies with this rating are investment banking clients of the Nomura Group*. 53% have been assigned a Neutral rating which, for purposes of mandatory disclosures, is classified as a Hold rating; 3% of companies with this rating are investment banking clients of the Nomura Group*. 7% have been assigned a Reduce rating which, for purposes of mandatory disclosures, are classified as a Sell rating; 0% of companies with this rating are investment banking clients of the Nomura Group*. As at 30 June 2011. *The Nomura Group as defined in the Disclaimer section at the end of this report.

Distribution of ratings (Global)


The distribution of all ratings published by Nomura Global Equity Research is as follows: 49% have been assigned a Buy rating which, for purposes of mandatory disclosures, are classified as a Buy rating; 41% of companies with this rating are investment banking clients of the Nomura Group*. 40% have been assigned a Neutral rating which, for purposes of mandatory disclosures, is classified as a Hold rating; 46% of companies with this rating are investment banking clients of the Nomura Group*. 11% have been assigned a Reduce rating which, for purposes of mandatory disclosures, are classified as a Sell rating; 14% of companies with this rating are investment banking clients of the Nomura Group*. As at 30 June 2011. *The Nomura Group as defined in the Disclaimer section at the end of this report.

Explanation of Nomura's equity research rating system in Europe, Middle East and Africa, US and Latin America for ratings published from 27 October 2008
The rating system is a relative system indicating expected performance against a specific benchmark identified for each individual stock. Analysts may also indicate absolute upside to target price defined as (fair value - current price)/current price, subject to limited management discretion. In most cases, the fair value will equal the analyst's assessment of the current intrinsic fair value of the stock using an appropriate valuation methodology such as discounted cash flow or multiple analysis, etc. STOCKS A rating of 'Buy', indicates that the analyst expects the stock to outperform the Benchmark over the next 12 months. A rating of 'Neutral', indicates that the analyst expects the stock to perform in line with the Benchmark over the next 12 months. A rating of 'Reduce', indicates that the analyst expects the stock to underperform the Benchmark over the next 12 months. A rating of 'Suspended', indicates that the rating, target price and estimates have been suspended temporarily to comply with applicable regulations and/or firm policies in certain circumstances including, but not limited to, when Nomura is acting in an advisory capacity in a merger or strategic transaction involving the company. Benchmarks are as follows: United States/Europe: Please see valuation methodologies for explanations of relevant benchmarks for stocks (accessible through the left hand side of the Nomura Disclosure web page: http://go.nomuranow.com/research/globalresearchportal);Global Emerging Markets (ex-Asia): MSCI Emerging Markets ex-Asia, unless otherwise stated in the valuation methodology. SECTORS A 'Bullish' stance, indicates that the analyst expects the sector to outperform the Benchmark during the next 12 months. A 'Neutral' stance, indicates that the analyst expects the sector to perform in line with the Benchmark during the next 12 months. A 'Bearish' stance, indicates that the analyst expects the sector to underperform the Benchmark during the next 12 months. Benchmarks are as follows: United States: S&P 500; Europe: Dow Jones STOXX 600; Global Emerging Markets (ex-Asia): MSCI Emerging Markets ex-Asia.

Explanation of Nomura's equity research rating system for Asian companies under coverage ex Japan published from 30 October 2008 and in Japan from 6 January 2009
STOCKS

14

Nomura | European Strategy Weekly

August 21, 2011

Stock recommendations are based on absolute valuation upside (downside), which is defined as (Target Price - Current Price) / Current Price, subject to limited management discretion. In most cases, the Target Price will equal the analyst's 12-month intrinsic valuation of the stock, based on an appropriate valuation methodology such as discounted cash flow, multiple analysis, etc. A 'Buy' recommendation indicates that potential upside is 15% or more. A 'Neutral' recommendation indicates that potential upside is less than 15% or downside is less than 5%. A 'Reduce' recommendation indicates that potential downside is 5% or more. A rating of 'Suspended' indicates that the rating and target price have been suspended temporarily to comply with applicable regulations and/or firm policies in certain circumstances including when Nomura is acting in an advisory capacity in a merger or strategic transaction involving the subject company. Securities and/or companies that are labelled as 'Not rated' or shown as 'No rating' are not in regular research coverage of the Nomura entity identified in the top banner. Investors should not expect continuing or additional information from Nomura relating to such securities and/or companies. SECTORS A 'Bullish' rating means most stocks in the sector have (or the weighted average recommendation of the stocks under coverage is) a positive absolute recommendation. A 'Neutral' rating means most stocks in the sector have (or the weighted average recommendation of the stocks under coverage is) a neutral absolute recommendation. A 'Bearish' rating means most stocks in the sector have (or the weighted average recommendation of the stocks under coverage is) a negative absolute recommendation.

Explanation of Nomura's equity research rating system in Japan published prior to 6 January 2009 (and ratings in Europe, Middle East and Africa, US and Latin America published prior to 27 October 2008)
STOCKS A rating of '1' or 'Strong buy', indicates that the analyst expects the stock to outperform the Benchmark by 15% or more over the next six months. A rating of '2' or 'Buy', indicates that the analyst expects the stock to outperform the Benchmark by 5% or more but less than 15% over the next six months. A rating of '3' or 'Neutral', indicates that the analyst expects the stock to either outperform or underperform the Benchmark by less than 5% over the next six months. A rating of '4' or 'Reduce', indicates that the analyst expects the stock to underperform the Benchmark by 5% or more but less than 15% over the next six months. A rating of '5' or 'Sell', indicates that the analyst expects the stock to underperform the Benchmark by 15% or more over the next six months. Stocks labeled 'Not rated' or shown as 'No rating' are not in Nomura's regular research coverage. Nomura might not publish additional research reports concerning this company, and it undertakes no obligation to update the analysis, estimates, projections, conclusions or other information contained herein. SECTORS A 'Bullish' stance, indicates that the analyst expects the sector to outperform the Benchmark during the next six months. A 'Neutral' stance, indicates that the analyst expects the sector to perform in line with the Benchmark during the next six months. A 'Bearish' stance, indicates that the analyst expects the sector to underperform the Benchmark during the next six months. Benchmarks are as follows: Japan: TOPIX; United States: S&P 500, MSCI World Technology Hardware & Equipment; Europe, by sector Hardware/Semiconductors: FTSE W Europe IT Hardware; Telecoms: FTSE W Europe Business Services; Business Services: FTSE W Europe; Auto & Components: FTSE W Europe Auto & Parts; Communications equipment: FTSE W Europe IT Hardware; Ecology Focus: Bloomberg World Energy Alternate Sources; Global Emerging Markets: MSCI Emerging Markets ex-Asia.

Explanation of Nomura's equity research rating system for Asian companies under coverage ex Japan published prior to 30 October 2008
STOCKS Stock recommendations are based on absolute valuation upside (downside), which is defined as (Fair Value - Current Price)/Current Price, subject to limited management discretion. In most cases, the Fair Value will equal the analyst's assessment of the current intrinsic fair value of the stock using an appropriate valuation methodology such as Discounted Cash Flow or Multiple analysis etc. However, if the analyst doesn't think the market will revalue the stock over the specified time horizon due to a lack of events or catalysts, then the fair value may differ from the intrinsic fair value. In most cases, therefore, our recommendation is an assessment of the difference between current market price and our estimate of current intrinsic fair value. Recommendations are set with a 6-12 month horizon unless specified otherwise. Accordingly, within this horizon, price volatility may cause the actual upside or downside based on the prevailing market price to differ from the upside or downside implied by the recommendation. A 'Strong buy' recommendation indicates that upside is more than 20%. A 'Buy' recommendation indicates that upside is between 10% and 20%. A 'Neutral' recommendation indicates that upside or downside is less than 10%. A 'Reduce' recommendation indicates that downside is between 10% and 20%. A 'Sell' recommendation indicates that downside is more than 20%. SECTORS A 'Bullish' rating means most stocks in the sector have (or the weighted average recommendation of the stocks under coverage is) a positive absolute recommendation. A 'Neutral' rating means most stocks in the sector have (or the weighted average recommendation of the stocks under coverage is) a neutral absolute recommendation. A 'Bearish' rating means most stocks in the sector have (or the weighted average recommendation of the stocks under coverage is) a negative absolute recommendation.

Target Price
A Target Price, if discussed, reflect in part the analyst's estimates for the company's earnings. The achievement of any target price may be impeded by general market and macroeconomic trends, and by other risks related to the company or the market, and may not occur if the company's earnings differ from estimates.

15

Nomura | European Strategy Weekly

August 21, 2011

Disclaimers
This publication contains material that has been prepared by the Nomura entity identified at the top or bottom of page 1 herein, if any, and/or, with the sole or joint contributions of one or more Nomura entities whose employees and their respective affiliations are specified on page 1 herein or elsewhere identified in the publication. Affiliates and subsidiaries of Nomura Holdings, Inc. (collectively, the 'Nomura Group'), include: Nomura Securities Co., Ltd. ('NSC') Tokyo, Japan; Nomura International plc ('NIplc'), United Kingdom; Nomura Securities International, Inc. ('NSI'), New York, NY; Nomura International (Hong Kong) Ltd. (NIHK), Hong Kong; Nomura Financial Investment (Korea) Co., Ltd. (NFIK), Korea (Information on Nomura analysts registered with the Korea Financial Investment Association ('KOFIA') can be found on the KOFIA Intranet at http://dis.kofia.or.kr ); Nomura Singapore Ltd. (NSL), Singapore (Registration number 197201440E, regulated by the Monetary Authority of Singapore); Capital Nomura Securities Public Company Limited (CNS), Thailand; Nomura Australia Ltd. (NAL), Australia (ABN 48 003 032 513), regulated by the Australian Securities and Investment Commission ('ASIC') and holder of an Australian financial services licence number 246412; P.T. Nomura Indonesia (PTNI), Indonesia; Nomura Securities Malaysia Sdn. Bhd. (NSM), Malaysia; Nomura International (Hong Kong) Ltd., Taipei Branch (NITB), Taiwan; Nomura Financial Advisory and Securities (India) Private Limited (NFASL), Mumbai, India (Registered Address: Ceejay House, Level 11, Plot F, Shivsagar Estate, Dr. Annie Besant Road, Worli, Mumbai- 400 018, India; SEBI Registration No: BSE INB011299030, NSE INB231299034, INF231299034, INE 231299034); Banque Nomura France (BNF); NIplc, Dubai Branch (NIplc, Dubai); NIplc, Madrid Branch (NIplc, Madrid) and OOO Nomura, Moscow (OOO Nomura). THIS MATERIAL IS: (I) FOR YOUR PRIVATE INFORMATION, AND WE ARE NOT SOLICITING ANY ACTION BASED UPON IT; (II) NOT TO BE CONSTRUED AS AN OFFER TO SELL OR A SOLICITATION OF AN OFFER TO BUY ANY SECURITY IN ANY JURISDICTION WHERE SUCH OFFER OR SOLICITATION WOULD BE ILLEGAL; AND (III) BASED UPON INFORMATION THAT WE CONSIDER RELIABLE. NOMURA GROUP DOES NOT WARRANT OR REPRESENT THAT THE PUBLICATION IS ACCURATE, COMPLETE, RELIABLE, FIT FOR ANY PARTICULAR PURPOSE OR MERCHANTABLE AND DOES NOT ACCEPT LIABILITY FOR ANY ACT (OR DECISION NOT TO ACT) RESULTING FROM USE OF THIS PUBLICATION AND RELATED DATA. TO THE MAXIMUM EXTENT PERMISSIBLE ALL WARRANTIES AND OTHER ASSURANCES BY NOMURA GROUP ARE HEREBY EXCLUDED AND NOMURA GROUP SHALL HAVE NO LIABILITY FOR THE USE, MISUSE, OR DISTRIBUTION OF THIS INFORMATION. Opinions expressed are current opinions as of the original publication date appearing on this material only and the information, including the opinions contained herein, are subject to change without notice. Nomura is under no duty to update this publication. If and as applicable, NSI's investment banking relationships, investment banking and non-investment banking compensation and securities ownership (identified in this report as 'Disclosures Required in the United States'), if any, are specified in disclaimers and related disclosures in this report. In addition, other members of the Nomura Group may from time to time perform investment banking or other services (including acting as advisor, manager or lender) for, or solicit investment banking or other business from, companies mentioned herein. Furthermore, the Nomura Group, and/or its officers, directors and employees, including persons, without limitation, involved in the preparation or issuance of this material may, to the extent permitted by applicable law and/or regulation, have long or short positions in, and buy or sell, the securities (including ownership by NSI, referenced above), or derivatives (including options) thereof, of companies mentioned herein, or related securities or derivatives. For financial instruments admitted to trading on an EU regulated market, Nomura Holdings Inc's affiliate or its subsidiary companies may act as market maker or liquidity provider (in accordance with the interpretation of these definitions under FSA rules in the UK) in the financial instruments of the issuer. Where the activity of liquidity provider is carried out in accordance with the definition given to it by specific laws and regulations of other EU jurisdictions, this will be separately disclosed within this report. Furthermore, the Nomura Group may buy and sell certain of the securities of companies mentioned herein, as agent for its clients. Investors should consider this report as only a single factor in making their investment decision and, as such, the report should not be viewed as identifying or suggesting all risks, direct or indirect, that may be associated with any investment decision. Please see the further disclaimers in the disclosure information on companies covered by Nomura analysts available at http://go.nomuranow.com/research/globalresearchportal under the 'Disclosure' tab. Nomura Group produces a number of different types of research product including, among others, fundamental analysis, quantitative analysis and short term trading ideas; recommendations contained in one type of research product may differ from recommendations contained in other types of research product, whether as a result of differing time horizons, methodologies or otherwise; it is possible that individual employees of Nomura may have different perspectives to this publication. NSC and other non-US members of the Nomura Group (i.e. excluding NSI), their officers, directors and employees may, to the extent it relates to non-US issuers and is permitted by applicable law, have acted upon or used this material prior to, or immediately following, its publication. Foreign-currency-denominated securities are subject to fluctuations in exchange rates that could have an adverse effect on the value or price of, or income derived from, the investment. In addition, investors in securities such as ADRs, the values of which are influenced by foreign currencies, effectively assume currency risk. The securities described herein may not have been registered under the US Securities Act of 1933, and, in such case, may not be offered or sold in the United States or to US persons unless they have been registered under such Act, or except in compliance with an exemption from the registration requirements of such Act. Unless governing law permits otherwise, you must contact a Nomura entity in your home jurisdiction if you want to use our services in effecting a transaction in the securities mentioned in this material. This publication has been approved for distribution in the United Kingdom and European Union as investment research by NIplc, which is authorized and regulated by the UK Financial Services Authority ('FSA') and is a member of the London Stock Exchange. It does not constitute a personal recommendation, as defined by the FSA, or take into account the particular investment objectives, financial situations, or needs of individual investors. It is intended only for investors who are 'eligible counterparties' or 'professional clients' as defined by the FSA, and may not, therefore, be redistributed to retail clients as defined by the FSA. This publication may be distributed in Germany via Nomura Bank (Deutschland) GmbH, which is authorized and regulated in Germany by the Federal Financial Supervisory Authority ('BaFin'). This publication has been approved by NIHK, which is regulated by the Hong Kong Securities and Futures Commission, for distribution in Hong Kong by NIHK. This publication has been approved for distribution in Australia by NAL, which is authorized and regulated in Australia by the ASIC. This publication has also been approved for distribution in Malaysia by NSM. In Singapore, this publication has been distributed by NSL. NSL accepts legal responsibility for the content of this publication, where it concerns securities, futures and foreign exchange, issued by their foreign affiliates in respect of recipients who are not accredited, expert or institutional investors as defined by the Securities and Futures Act (Chapter 289). Recipients of this publication should contact NSL in respect of matters arising from, or in connection with, this publication. Unless prohibited by the provisions of Regulation S of the U.S. Securities Act of 1933, this material is distributed in the United States, by NSI, a US-registered broker-dealer, which accepts responsibility for its contents in accordance with the provisions of Rule 15a-6, under the US Securities Exchange Act of 1934. This publication has not been approved for distribution in the Kingdom of Saudi Arabia or to clients other than 'professional clients' in the United Arab Emirates by Nomura Saudi Arabia, NIplc or any other member of the Nomura Group, as the case may be. Neither this publication nor any copy thereof may be taken or transmitted or distributed, directly or indirectly, by any person other than those authorised to do so into the Kingdom of Saudi Arabia or in the United Arab Emirates or to any person located in the Kingdom of Saudi Arabia or to clients other than 'professional clients' in the United Arab Emirates. By accepting to receive this publication, you represent that you are not located in the Kingdom of Saudi Arabia or that you are a 'professional client' in the United Arab Emirates and agree to comply with these restrictions. Any failure to comply with these restrictions may constitute a violation of the laws of the Kingdom of Saudi Arabia or the United Arab Emirates. No part of this material may be (i) copied, photocopied, or duplicated in any form, by any means; or (ii) redistributed without the prior written consent of the Nomura Group member identified in the banner on page 1 of this report. Further information on any of the securities mentioned herein may be obtained upon request. If this publication has been distributed by electronic transmission, such as e-mail, then such transmission cannot be guaranteed to be secure or error-free as information could be intercepted, corrupted, lost, destroyed, arrive late or incomplete, or contain viruses. The sender therefore does not accept liability for any errors or omissions in the contents of this publication, which may arise as a result of electronic transmission. If verification is required, please request a hard-copy version. Additional information available upon request NIPlc and other Nomura Group entities manage conflicts identified through the following: their Chinese Wall, confidentiality and independence policies, maintenance of a Restricted List and a Watch List, personal account dealing rules, policies and procedures for managing conflicts of interest arising from the allocation and pricing of securities and impartial investment research and disclosure to clients via client documentation. Disclosure information is available at the Nomura Disclosure web page: http://go.nomuranow.com/research/globalresearchportal/pages/disclosures/disclosures.aspx

16

Potrebbero piacerti anche