Fyber (PrimeAll, Software/IT)

A n a l y s t

Patrick Schmidt pschmidt@warburg-research.com

+49 40 309537-125

CO M M E N T Published 08.06.2018 08:15 1

RESEARCH

Hold

Price EUR 0.55

Value Indicators: EUR Share data: Description:

DCF: 2.33

Bloomberg: FBEN GR

Reuters: FBENn.DE

ISIN: NL0012377394

Programmatic "ad-tech" platform with a focus on mobile app advertising solutions

Market Snapshot: EUR m Shareholders: Risk Profile (WRe): 2018e

Market cap: 63.4

No. of shares (m): 114.5

EV: 211.0

Freefloat MC: 22.0

Ø Trad. Vol. (30d): 4.75 th

Freefloat 34.7 %

Stichting Horizon One(Sapinda)

38.4 %

Abu Dhabi Securities 18.0 %

Altera Absolute GMF 5.5 %

Beta: 2.2

Equity Ratio: -2 %

Net Fin. Debt / EBITDA: 62.9 x

Net Debt / EBITDA: 63.1 x

Fyber to cooperate with Facebook for its in-app header bidding

On Wednesday (June 6), Fyber announced its cooperation with Facebook Audience Network, which is very positive news in our view, as

it demonstrates the recognition of Fyber’s position in the market, its technological know-how and experience in the in-app monetization and

RTB (real time bidding) auction process with its Fyber “FairBid” in-app header bidding technology.

� Facebook is also new to in-app header bidding. This technology allows advertisers to bid on ad spaces in real time and to participate in

a unified auction process for in-app ad spaces across various formats. Facebook joins a host of other platforms, which have adopted in-app

header bidding in recent months including AdMob (Google), Oath, MoPub (Twitter) and others. For now, Facebook is not developing its

own technology for this purpose as it is slowing pulling out of “tech” and focusing more on its core competence, which is data and demand.

This clearly shows that the development of such an in-app technology is challenging, even for large players such as Facebook,

and that Fyber is able to provide a technology that meets Facebook’s standards. It might also be a consequence of the increasing

demand for independent solutions and processes which offer high transparency or a consequence of the increasing competition for the

most attractive ad spaces to optimize publishers’ in-app monetization and returns.

� However, we are assuming that this will not have an immediate impact on Fyber’s revenues, as these are still generated on the supply side,

i.e. for publishers via effective fill-rates and the amount of ad space as well as number of publishers integrated on Fyber’s platform.

Nevertheless, the increased demand, triggered by the integration of one of the world’s largest ad networks and DSPs 1) will increase

prices for current ad spaces in the medium term, as rising demand should lead to higher prices over time, and 2) will attract further

publishers by providing them with access to Facebook’s advertisers.

� Facebook also cooperates with other platform providers such as MoPub, MAX and other third parties and publisher-owned platforms so

that in the long run, the technology, i.e. intelligent algorithms, will be a very decisive factor as publishers will stick with the most effective

platforms. Additionally, advertisers require a brand-safe and trackable environment to show their ads. This requires publishers and content

to have proven quality and a high level of reliability. However, once a publisher has integrated with a specific platform, such as Fyber, the

“stickiness” is rather high as there is little reason for publishers to join another platform, if the chosen platform already delivers a large

network with sufficient reach to advertisers and attractive fill-rates for the publisher.

Overall, this news release is very positive for Fyber’s competitive position and operational outlook. This makes the platform more

attractive for publishers to choose Fyber as their app monetization platform. However, given the special financial situation, we are sticking to

our Hold recommendation.

FY End: 31.12. in EUR m

CAGR (17-20e) 2014 2015 2016 2017 2018e 2019e 2020e

Sales 12.8 % 0.0 129.1 218.1 229.8 210.0 280.0 330.0

Change Sales yoy n.a. n.a. 68.9 % 5.4 % -8.6 % 33.3 % 17.9 %

Gross profit margin n.a. 100.0 % 28.6 % 30.4 % 31.5 % 31.5 % 31.5 %

EBITDA - 0.0 129.1 -3.4 -1.2 2.3 16.6 23.2

Margin n.a. 100.0 % -1.5 % -0.5 % 1.1 % 5.9 % 7.0 %

EBIT - 0.0 129.1 -15.4 -97.2 -9.7 5.6 13.2

Margin n.a. 100.0 % -7.0 % -42.3 % -4.6 % 2.0 % 4.0 %

Net income - 0.0 127.9 -29.9 -102.0 -17.2 -1.9 5.6

EPS - 0.00 1.12 -0.26 -0.91 -0.15 -0.02 0.05

EPS adj. - 0.00 1.12 -0.24 -1.01 -0.15 -0.02 0.05

DPS - 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Dividend Yield n.a. n.a. n.a. n.a. n.a. n.a. n.a.

FCFPS 0.00 -0.13 -0.16 -0.13 -0.10 0.05 0.10

FCF / Market cap 0.0 % -4.5 % -6.9 % -8.8 % -18.4 % 8.7 % 17.7 %

EV / Sales n.a. 2.5 x 1.8 x 1.3 x 1.0 x 0.7 x 0.6 x

EV / EBITDA n.a. 2.5 x n.a. n.a. 90.2 x 12.4 x 8.4 x

EV / EBIT n.a. 2.5 x n.a. n.a. n.a. 36.7 x 14.7 x

P / E n.a. 2.6 x n.a. n.a. n.a. n.a. 11.1 x

P / E adj. n.a. 2.6 x n.a. n.a. n.a. n.a. 11.1 x

FCF Potential Yield 0.0 % -2.2 % -0.8 % 1.3 % 0.9 % 7.8 % 11.6 %

Net Debt 0.0 0.0 122.9 135.9 147.6 142.1 130.9

ROCE (NOPAT) n.a. n.a. n.a. n.a. n.a. 5.4 % 8.9 % Guidance: 2018: Gross Revenues of EUR 220m - 240m; EBITDA of EUR 5m - 8m

Rel. Performance vs PrimeAll:

1 month: 8.1 %

6 months: -27.7 %

Year to date: -26.5 %

Trailing 12 months: -64.9 %

Company events:

29.08.18 Q2

21.11.18 Q3

Fyber

CO M M E N T Publ ished 08 .06 .2018 2

RESEARCH

Sales development in EUR m

Source: Warburg Research

Sales by regions 2017; in %

Source: Warburg Research

Sales by screen 2017; in %

Source: Warburg Research

Company Background

� Fyber is a global ad-tech company with a clear focus on mobile in-app advertising, enabling publishers to optimize their ad space

returns with the support of intelligent algorithms.

� In 2014, RNTS Media N.V. acquired Fyber GmbH (SponsorPay previously; founded 2009), a leading mobile supply-side platform with

a special focus on gaming apps, which became the core of the company.

� With the acquisitions of Falk Realtime, Heyzap and Inneractive, Fyber enhanced its RTB exchange platform and upgraded its global

reach, broadened its product portfolio and increased its addressable market.

� The financial stability of the company is a risk, worth highlighting. An outstanding convertible bond of EUR 150m matures in July 2020

with a conversion price of EUR 3 per share.

� Cash position of EUR 17.6m (FY 2017), which was increased by another EUR 13.6m short-term borrowings in 2017 represents a

significant liquidity risk.

Competitive Quality

� Via its recent acquisitions, Fyber can offer the full variety of formats across all relevant types (desktop, mobile web and in-app), but

having a clear focus on mobile app video advertising as a differentiating criteria.

� Fyber's background with a clear focus on- and know-how in gaming apps and mobile in-app videos is a clear differentiator and these

segments are among the fastest-growing areas in the ad-tech industry.

� With 1.2bn active monthly users and more than 10,000 connected publishers, Fyber has a large network with a global presence,

providing advertisers (buy side) with a broad reach and detailed user profiles.

adj. EBITDA development in EUR m

Source: Warburg Research

Sales by style 2017; in %

Source: Warburg Research

Sales by segments 2017; in %

Source: Warburg Research

Fyber

CO M M E N T Publ ished 08 .06 .2018 3

RESEARCH

DCF model

Detailed forecast period Transitional period Term. Value

Figures in EUR m 2018e 2019e 2020e 2021e 2022e 2023e 2024e 2025e 2026e 2027e 2028e 2029e 2030e

Sales 210.0 280.0 330.0 376.2 421.3 463.5 500.6 530.6 551.8 562.8 574.1 585.6 597.3

Sales change -8.6 % 33.3 % 17.9 % 14.0 % 12.0 % 10.0 % 8.0 % 6.0 % 4.0 % 2.0 % 2.0 % 2.0 % 2.0 % 2.0 %

EBIT -9.7 5.6 13.2 22.6 37.9 46.3 55.1 63.7 71.7 73.2 74.6 76.1 77.6

EBIT-margin -4.6 % 2.0 % 4.0 % 6.0 % 9.0 % 10.0 % 11.0 % 12.0 % 13.0 % 13.0 % 13.0 % 13.0 % 13.0 %

Tax rate (EBT) -3.0 % -35.7 % 9.7 % 20.0 % 21.0 % 22.0 % 23.0 % 24.0 % 25.0 % 26.0 % 26.0 % 27.0 % 27.0 %

NOPAT -9.9 7.6 11.9 18.1 30.0 36.2 42.4 48.4 53.8 54.1 55.2 55.6 56.7

Depreciation 12.0 11.0 10.0 9.4 8.4 7.0 5.0 2.7 2.8 2.8 2.9 2.9 3.0

in % of Sales 5.7 % 3.9 % 3.0 % 2.5 % 2.0 % 1.5 % 1.0 % 0.5 % 0.5 % 0.5 % 0.5 % 0.5 % 0.5 %

Changes in provisions 0.0 0.0 0.0 -0.4 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

Change in Liquidity from

- Working Capital 3.5 0.6 1.4 4.4 0.5 0.4 0.4 0.3 0.2 0.1 0.1 0.1 0.1

- Capex 3.0 3.0 3.0 3.0 2.5 2.3 2.5 2.7 2.8 2.8 2.9 2.9 3.0

Capex in % of Sales 1.4 % 1.1 % 0.9 % 0.8 % 0.6 % 0.5 % 0.5 % 0.5 % 0.5 % 0.5 % 0.5 % 0.5 % 0.5 %

Other 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

Free Cash Flow (WACC Model)

-4.5 15.0 17.5 19.7 35.4 40.4 44.5 48.1 53.6 54.0 55.1 55.5 56.6 58

PV of FCF -4.2 12.9 13.6 13.8 22.3 23.0 22.9 22.3 22.4 20.4 18.8 17.1 15.7 182 share of PVs 5.51 % 49.31 % 45.18 %

Model parameter Valuation (m)

Derivation of WACC: Derivation of Beta: Present values 2030e 221

Terminal Value 182

Debt ratio 35.00 % Financial Strength 3.00 Financial liabilities 153

Cost of debt (after tax) 5.6 % Liquidity (share) 2.50 Pension liabilities 0

Market return 7.00 % Cyclicality 2.00 Hybrid capital 0

Risk free rate 1.50 % Transparency 2.00 Minority interest 0

Others 1.50 Market val. of investments 0

Liquidity 18 No. of shares (m) 114.5

WACC 10.80 % Beta 2.20 Equity Value 267 Value per share (EUR) 2.33

Sensitivity Value per Share (EUR)

Terminal Growth Delta EBIT-margin

Beta WACC 1.25 % 1.50 % 1.75 % 2.00 % 2.25 % 2.50 % 2.75 % Beta WACC -1.5 pp -1.0 pp -0.5 pp +0.0 pp +0.5 pp +1.0 pp +1.5 pp

2.48 11.8 % 1.80 1.83 1.86 1.89 1.93 1.96 2.00 2.48 11.8 % 1.43 1.59 1.74 1.89 2.05 2.20 2.35

2.34 11.3 % 1.99 2.03 2.06 2.10 2.14 2.18 2.22 2.34 11.3 % 1.62 1.78 1.94 2.10 2.26 2.42 2.58

2.27 11.1 % 2.10 2.13 2.17 2.21 2.25 2.30 2.35 2.27 11.1 % 1.71 1.88 2.05 2.21 2.38 2.54 2.71

2.20 10.8 % 2.20 2.24 2.29 2.33 2.38 2.42 2.48 2.20 10.8 % 1.82 1.99 2.16 2.33 2.50 2.67 2.84

2.13 10.6 % 2.32 2.36 2.41 2.45 2.51 2.56 2.62 2.13 10.6 % 1.93 2.10 2.28 2.45 2.63 2.81 2.98

2.06 10.3 % 2.44 2.49 2.54 2.59 2.64 2.70 2.76 2.06 10.3 % 2.05 2.23 2.41 2.59 2.77 2.95 3.13

1.92 9.8 % 2.70 2.76 2.82 2.88 2.95 3.02 3.09 1.92 9.8 % 2.30 2.50 2.69 2.88 3.07 3.27 3.46

� DCF is based on a detailed planning phase (2018 - 2020), a transitional phase (2020- 2029), and a perpetuity term.

� Further assumptions are a Beta of 2.2, a WACC of 10.8%, and a long-term EBIT margin of 13%.

� Long-term tax rate is assumed to be at 27%

Fyber

CO M M E N T Publ ished 08 .06 .2018 4

RESEARCH

Valuation

2014 2015 2016 2017 2018e 2019e 2020e

Price / Book n.a. n.a. 2.2 x 12.2 x n.a. n.a. n.a.

Book value per share ex intangibles 0.00 0.00 -1.19 -1.26 -1.33 -1.28 -1.17

EV / Sales n.a. 2.5 x 1.8 x 1.3 x 1.0 x 0.7 x 0.6 x

EV / EBITDA n.a. 2.5 x n.a. n.a. 90.2 x 12.4 x 8.4 x

EV / EBIT n.a. 2.5 x n.a. n.a. n.a. 36.7 x 14.7 x

EV / EBIT adj.* n.a. 2.5 x n.a. n.a. n.a. 36.7 x 14.7 x

P / FCF n.a. n.a. n.a. n.a. n.a. 11.9 x 5.8 x

P / E n.a. 2.6 x n.a. n.a. n.a. n.a. 11.1 x

P / E adj.* n.a. 2.6 x n.a. n.a. n.a. n.a. 11.1 x

Dividend Yield n.a. n.a. n.a. n.a. n.a. n.a. n.a.

FCF Potential Yield (on market EV) 0.0 % -2.2 % -0.8 % 1.3 % 0.9 % 7.8 % 11.6 %

*Adjustments made for: -

Fyber

CO M M E N T Publ ished 08 .06 .2018 5

RESEARCH

Consolidated profit and loss In EUR m 2014 2015 2016 2017 2018e 2019e 2020e

Sales 0.0 129.1 218.1 229.8 210.0 280.0 330.0

Change Sales yoy n.a. n.a. 68.9 % 5.4 % -8.6 % 33.3 % 17.9 % COGS 0.0 0.0 155.7 159.9 143.9 191.8 226.1

Gross profit 0.0 129.1 62.4 69.9 66.2 88.2 104.0

Gross margin n.a. 100.0 % 28.6 % 30.4 % 31.5 % 31.5 % 31.5 %

Research and development 0.0 0.0 19.8 19.6 18.9 16.8 18.2

Sales and marketing 0.0 0.0 25.4 24.6 21.0 23.8 24.8

Administration expenses 0.0 0.0 21.4 15.7 13.7 14.0 14.9

Other operating expenses 0.0 0.0 0.0 82.7 0.0 0.0 0.0

Other operating income 0.0 0.0 9.4 2.6 0.0 0.0 0.0

Unfrequent items 0.0 0.0 0.0 0.0 0.0 0.0 0.0

EBITDA 0.0 129.1 -3.4 -1.2 2.3 16.6 23.2

Margin n.a. 100.0 % -1.5 % -0.5 % 1.1 % 5.9 % 7.0 %

Depreciation of fixed assets 0.0 0.0 0.0 0.0 0.0 0.0 0.0

EBITA 0.0 129.1 -3.4 -1.2 2.3 16.6 23.2

Amortisation of intangible assets 0.0 0.0 12.0 13.3 12.0 11.0 10.0

Goodwill amortisation 0.0 0.0 0.0 82.7 0.0 0.0 0.0

EBIT 0.0 129.1 -15.4 -97.2 -9.7 5.6 13.2

Margin n.a. 100.0 % -7.0 % -42.3 % -4.6 % 2.0 % 4.0 %

EBIT adj. 0.0 129.1 -15.4 -97.2 -9.7 5.6 13.2

Interest income 0.0 0.1 0.0 0.0 0.0 0.0 0.0

Interest expenses 0.0 6.2 14.9 9.9 7.0 7.0 7.0

Other financial income (loss) 0.0 0.0 0.0 0.0 0.0 0.0 0.0

EBT 0.0 123.0 -30.2 -107.1 -16.7 -1.4 6.2

Margin n.a. 95.3 % -13.9 % -46.6 % -7.9 % -0.5 % 1.9 %

Total taxes 0.0 -4.8 3.1 -5.1 0.5 0.5 0.6

Net income from continuing operations 0.0 127.9 -33.3 -102.0 -17.2 -1.9 5.6

Income from discontinued operations (net of tax) 0.0 0.0 3.4 0.0 0.0 0.0 0.0

Net income before minorities 0.0 127.9 -29.9 -102.0 -17.2 -1.9 5.6

Minority interest 0.0 0.0 0.0 0.0 0.0 0.0 0.0

Net income 0.0 127.9 -29.9 -102.0 -17.2 -1.9 5.6

Margin n.a. 99.0 % -13.7 % -44.4 % -8.2 % -0.7 % 1.7 % Number of shares, average 1.0 114.5 113.2 112.6 114.5 114.5 114.5

EPS 0.00 1.12 -0.26 -0.91 -0.15 -0.02 0.05

EPS adj. 0.00 1.12 -0.24 -1.01 -0.15 -0.02 0.05

*Adjustments made for:

Guidance: 2018: Gross Revenues of EUR 220m - 240m; EBITDA of EUR 5m - 8m

Financial Ratios 2014 2015 2016 2017 2018e 2019e 2020e

Total Operating Costs / Sales n.a. 0.0 % 35.7 % 72.7 % 36.1 % 29.5 % 27.5 %

Operating Leverage n.a. n.a. n.a. 99.2 x 10.4 x n.a. 7.6 x

EBITDA / Interest expenses n.a. 20.7 x n.m. n.m. 0.3 x 2.4 x 3.3 x

Tax rate (EBT) n.a. -3.9 % -10.2 % 4.8 % -3.0 % -35.7 % 9.7 %

Dividend Payout Ratio n.a. 0.0 % 0.0 % 0.0 % 0.0 % 0.0 % 0.0 %

Sales per Employee n.a. n.a. n.a. n.a. n.a. n.a. n.a.

Sales, EBITDA in EUR m

Source: Warburg Research

Operating Performance in %

Source: Warburg Research

Performance per Share

Source: Warburg Research

Fyber

CO M M E N T Publ ished 08 .06 .2018 6

RESEARCH

Consolidated balance sheet In EUR m 2014 2015 2016 2017 2018e 2019e 2020e

Assets

Goodwill and other intangible assets 0.0 0.0 257.0 157.6 148.6 140.6 133.6

thereof other intangible assets 0.0 0.0 40.0 29.5 20.5 12.5 5.5

thereof Goodwill 0.0 0.0 217.0 128.1 128.1 128.1 128.1

Property, plant and equipment 0.0 0.0 1.9 1.1 1.1 1.1 1.1

Financial assets 0.0 0.0 0.5 1.1 1.1 1.1 1.1

Other long-term assets 0.0 0.0 0.0 0.0 0.0 0.0 0.0

Fixed assets 0.0 0.0 259.4 159.8 150.8 142.8 135.8

Inventories 0.0 0.0 0.3 0.1 0.2 0.3 0.3

Accounts receivable 0.0 0.0 63.5 42.6 43.2 57.5 67.8

Liquid assets 0.0 0.0 25.0 17.6 5.9 11.4 22.6

Other short-term assets 0.0 0.0 17.4 11.2 11.2 11.2 11.2

Current assets 0.0 0.0 106.2 71.6 60.6 80.5 102.0

Total Assets 0.0 0.0 365.6 231.4 211.4 223.3 237.8

Liabilities and shareholders' equity

Subscribed capital 0.0 0.0 11.5 11.5 11.5 11.5 11.5

Capital reserve 0.0 0.0 201.5 210.0 210.0 210.0 210.0

Retained earnings 0.0 0.0 -96.1 -200.1 -217.2 -219.1 -213.5

Other equity components 0.0 0.0 3.5 -8.2 -8.2 -8.2 -8.2

Shareholders' equity 0.0 0.0 120.4 13.2 -3.9 -5.8 -0.2

Minority interest 0.0 0.0 0.0 0.0 0.0 0.0 0.0

Total equity 0.0 0.0 120.4 13.2 -3.9 -5.8 -0.2

Provisions 0.0 0.0 0.4 0.4 0.4 0.4 0.4

thereof provisions for pensions and similar obligations 0.0 0.0 0.4 0.4 0.4 0.4 0.4

Financial liabilities (total) 0.0 0.0 147.5 153.1 153.1 153.1 153.1

thereof short-term financial liabilities 0.0 0.0 1.4 15.0 15.0 15.0 15.0

Accounts payable 0.0 0.0 78.1 48.9 46.0 59.8 68.7

Other liabilities 0.0 0.0 19.2 15.8 15.8 15.8 15.8

Liabilities 0.0 0.0 245.2 218.2 215.3 229.1 238.0

Total liabilities and shareholders' equity 0.0 0.0 365.6 231.4 211.4 223.3 237.8

Financial Ratios 2014 2015 2016 2017 2018e 2019e 2020e

Efficiency of Capital Employment

Operating Assets Turnover n.a. n.a. -17.7 x -46.0 x -141.5 x -316.7 x 639.5 x

Capital Employed Turnover n.a. n.a. 0.9 x 1.5 x 1.5 x 2.1 x 2.5 x

ROA n.a. n.a. -11.5 % -63.8 % -11.4 % -1.3 % 4.1 %

Return on Capital

ROCE (NOPAT) n.a. n.a. n.a. n.a. n.a. 5.4 % 8.9 %

ROE n.a. n.a. -49.7 % -152.6 % -369.5 % 38.9 % -184.5 %

Adj. ROE n.a. n.a. -45.8 % -170.1 % -369.5 % 38.9 % -184.5 %

Balance sheet quality

Net Debt 0.0 0.0 122.9 135.9 147.6 142.1 130.9

Net Financial Debt 0.0 0.0 122.5 135.5 147.2 141.7 130.5

Net Gearing n.a. n.a. 102.1 % 1027.7 % -3749.4 % -2434.5 % -55456.4 %

Net Fin. Debt / EBITDA n.a. n.a. n.a. n.a. 6291.5 % 853.7 % 562.6 %

Book Value / Share 0.0 0.0 1.1 0.1 0.0 -0.1 0.0

Book value per share ex intangibles 0.0 0.0 -1.2 -1.3 -1.3 -1.3 -1.2

ROCE Development

Source: Warburg Research

Net debt in EUR m

Source: Warburg Research

Book Value per Share in EUR

Source: Warburg Research

Fyber

CO M M E N T Publ ished 08 .06 .2018 7

RESEARCH

Consolidated cash flow statement In EUR m 2014 2015 2016 2017 2018e 2019e 2020e

Net income 0.0 -14.9 -29.9 -102.0 -17.2 -1.9 5.6

Depreciation of fixed assets 0.0 0.0 0.0 0.0 0.0 0.0 0.0

Amortisation of goodwill 0.0 0.0 0.0 82.7 0.0 0.0 0.0

Amortisation of intangible assets 0.0 0.0 12.0 13.3 12.0 11.0 10.0

Increase/decrease in long-term provisions 0.0 0.0 0.0 -0.1 0.0 0.0 0.0

Other non-cash income and expenses 0.0 0.0 0.0 0.0 0.0 0.0 0.0

Cash Flow before NWC change 0.0 -14.9 -17.9 -6.1 -5.2 9.1 15.6

Increase / decrease in inventory 0.0 0.0 0.0 0.1 -0.1 -0.1 0.0

Increase / decrease in accounts receivable 0.0 0.0 0.0 20.9 -0.6 -14.3 -10.3

Increase / decrease in accounts payable 0.0 0.0 0.0 -29.2 -2.9 13.8 8.9

Increase / decrease in other working capital positions 0.0 0.0 0.0 0.0 0.0 0.0 0.0

Increase / decrease in working capital (total) 0.0 0.0 0.0 -8.1 -3.5 -0.6 -1.4

Net cash provided by operating activities [1] 0.0 -14.9 -17.9 -14.2 -8.7 8.5 14.2

Investments in intangible assets 0.0 0.0 0.0 0.0 -3.0 -3.0 -3.0

Investments in property, plant and equipment 0.0 0.0 0.0 0.0 0.0 0.0 0.0

Payments for acquisitions 0.0 0.0 0.0 0.0 0.0 0.0 0.0

Financial investments 0.0 0.0 0.0 0.0 0.0 0.0 0.0

Income from asset disposals 0.0 0.0 0.0 0.0 0.0 0.0 0.0

Net cash provided by investing activities [2] 0.0 0.0 0.0 0.0 -3.0 -3.0 -3.0

Change in financial liabilities 0.0 0.0 0.0 5.6 0.0 0.0 0.0

Dividends paid 0.0 0.0 0.0 0.0 0.0 0.0 0.0

Purchase of own shares 0.0 0.0 0.0 0.0 0.0 0.0 0.0

Capital measures 0.0 0.0 0.0 0.0 0.0 0.0 0.0

Other 0.0 0.0 0.0 0.0 0.0 0.0 0.0

Net cash provided by financing activities [3] 0.0 0.0 0.0 5.6 0.0 0.0 0.0

Change in liquid funds [1]+[2]+[3] 0.0 -14.9 -17.9 -8.6 -11.7 5.5 11.2

Effects of exchange-rate changes on cash 0.0 0.0 0.0 0.0 0.0 0.0 0.0

Cash and cash equivalent at end of period 0.0 -14.9 -17.9 16.4 5.9 11.4 22.6

Financial Ratios 2014 2015 2016 2017 2018e 2019e 2020e

Cash Flow

FCF 0.0 -14.9 -17.9 -14.2 -11.7 5.5 11.2

Free Cash Flow / Sales n.a. -11.6 % -8.2 % -6.2 % -5.6 % 2.0 % 3.4 %

Free Cash Flow Potential 0.0 -7.3 -3.1 3.9 1.8 16.1 22.6

Free Cash Flow / Net Profit n.a. -11.7 % 59.9 % 14.0 % 68.0 % -289.5 % 200.0 %

Interest Received / Avg. Cash n.a. n.a. 0.0 % 0.0 % 0.0 % 0.0 % 0.0 %

Interest Paid / Avg. Debt n.a. n.a. 20.1 % 6.6 % 4.6 % 4.6 % 4.6 %

Management of Funds

Investment ratio n.a. 0.0 % 0.0 % 0.0 % 1.4 % 1.1 % 0.9 %

Maint. Capex / Sales n.a. 0.0 % 0.0 % 0.0 % 0.0 % 0.0 % 0.0 %

Capex / Dep n.a. n.a. 0.0 % 0.0 % 25.0 % 27.3 % 30.0 %

Avg. Working Capital / Sales n.a. 0.0 % -3.3 % -4.4 % -2.1 % -0.8 % -0.4 %

Trade Debtors / Trade Creditors n.a. n.a. 81.4 % 87.2 % 93.9 % 96.2 % 98.7 %

Inventory Turnover n.a. n.a. 574.5 x 1249.5 x 719.3 x 639.3 x 753.5 x

Receivables collection period (days) n.a. 0 106 68 75 75 75

Payables payment period (days) n.a. n.a. 183 112 117 114 111

Cash conversion cycle (Days) n.a. n.a. -182 -111 -116 -113 -110

CAPEX and Cash Flow in EUR m

Source: Warburg Research

Free Cash Flow Generation

Source: Warburg Research

Working Capital

Source: Warburg Research

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LEGAL DISCLAIMER

This research report (“investment recommendation”) was prepared by the Warburg Research GmbH, a fully owned subsidiary of the M.M.Warburg &

CO (AG & Co.) KGaA and is passed on by the M.M.Warburg & CO (AG & Co.) KGaA. It is intended solely for the recipient and may not be passed on

to another company without their prior consent, regardless of whether the company is part of the same corporation or not. It contains selected

information and does not purport to be complete. The investment recommendation is based on publicly available information and data ("information")

believed to be accurate and complete. Warburg Research GmbH neither examines the information for accuracy and completeness, nor guarantees its

accuracy and completeness. Possible errors or incompleteness of the information do not constitute grounds for liability of M.M.Warburg & CO (AG &

Co.) KGaA or Warburg Research GmbH for damages of any kind whatsoever, and M.M.Warburg & CO (AG & Co.) KGaA and Warburg Research

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Research GmbH are liable for the statements, plans or other details contained in these investment recommendations concerning the examined

companies, their affiliated companies, strategies, economic situations, market and competitive situations, regulatory environment, etc. Although due

care has been taken in compiling this investment recommendation, it cannot be excluded that it is incomplete or contains errors. M.M.Warburg & CO

(AG & Co.) KGaA and Warburg Research GmbH, their shareholders and employees are not liable for the accuracy and completeness of the

statements, estimations and the conclusions derived from the information contained in this investment recommendation. Provided a investment

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DISCLOSURE ACCORDING TO §85 OF THE GERMAN SECURITIES TRADING ACT (WHPG), MAR AND MIFID II INCL. COMMISSION DELEGATED REGULATION (EU) 2016/958 AND (EU) 2017/565

The valuation underlying the investment recommendation for the company analysed here is based on generally accepted and widely used methods of

fundamental analysis, such as e.g. DCF Model, Free Cash Flow Potential, Peer Group Comparison or Sum of the Parts Model (see also

http://www.mmwarburg.de/disclaimer/disclaimer.htm#Valuation). The result of this fundamental valuation is modified to take into consideration the

analyst’s assessment as regards the expected development of investor sentiment and its impact on the share price.

Independent of the applied valuation methods, there is the risk that the price target will not be met, for instance because of unforeseen changes in

demand for the company’s products, changes in management, technology, economic development, interest rate development, operating and/or

material costs, competitive pressure, supervisory law, exchange rate, tax rate etc. For investments in foreign markets and instruments there are further

risks, generally based on exchange rate changes or changes in political and social conditions.

This commentary reflects the opinion of the relevant author at the point in time of its compilation. A change in the fundamental factors underlying the

valuation can mean that the valuation is subsequently no longer accurate. Whether, or in what time frame, an update of this commentary follows is not

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The analysts of Warburg Research GmbH do not receive a gratuity – directly or indirectly – from the investment banking activities of M.M.Warburg &

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All prices of financial instruments given in this investment recommendation are the closing prices on the last stock-market trading day before the

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SOURCES

All data and consensus estimates have been obtained from FactSet except where stated otherwise.

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Additional information for clients in the United States

1. This research report (the “Report”) is a product of Warburg Research GmbH, Germany, a fully owned subsidiary of M.M.Warburg & CO (AG & Co.)

KGaA, Germany (in the following collectively “Warburg”). Warburg is the employer of the research analyst(s), who have prepared the Report. The

research analyst(s) reside outside the United States and are not associated persons of any U.S. regulated broker-dealer and therefore are not subject

to the supervision of any U.S. regulated broker-dealer.

2. The Report is provided in the United States for distribution solely to "major U.S. institutional investors" under Rule 15a-6 of the U.S. Securities

Exchange Act of 1934.

3. Any recipient of the Report should effect transactions in the securities discussed in the Report only through J.P.P. Euro-Securities, Inc., Delaware.

4. J.P.P. Euro-Securities, Inc. does not accept or receive any compensation of any kind for the dissemination of the research reports from Warburg.

Reference in accordance with section 85 of the German Securities Trading Act (WpHG) and Art. 20 MAR regarding possible conflicts of interest with companies analysed:

-1- Warburg Research, or an affiliated company, or an employee of one of these companies responsible for the compilation of the research, hold

a share of more than 5% of the equity capital of the analysed company.

-2-

Warburg Research, or an affiliated company, within the last twelve months participated in the management of a consortium for an issue in

the course of a public offering of such financial instruments, which are, or the issuer of which is, the subject of the investment

recommendation.

-3- Companies affiliated with Warburg Research manage financial instruments, which are, or the issuers of which are, subject of the

investment recommendation, in a market based on the provision of buy or sell contracts.

-4-

MMWB, Warburg Research, or an affiliated company, reached an agreement with the issuer to provide investment banking and/or

investment services and the relevant agreement was in force in the last 12 months or there arose for this period, based on the relevant

agreement, the obligation to provide or to receive a service or compensation - provided that this disclosure does not result in the disclosure of

confidential business information.

-5- The company compiling the analysis or an affiliated company had reached an agreement on the compilation of the investment

recommendation with the analysed company.

-6- Companies affiliated with Warburg Research regularly trade financial instruments of the analysed company or derivatives of these.

-6a- Warburg Research, or an affiliated company, holds a net long position of more than 0.5% of the total issued share capital of the analysed

company.

-6b- Warburg Research, or an affiliated company, holds a net short position of more than 0.5% of the total issued share capital of the analysed

company.

-6c- The issuer holds shares of more than 5% of the total issued capital of Warburg Research or an affiliated company.

-7- The company preparing the analysis as well as its affiliated companies and employees have other important interests in relation to the

analysed company, such as, for example, the exercising of mandates at analysed companies.

Company Disclosure Link to the historical price targets and rating changes (last 12 months)

Fyber 5 http://www.mmwarburg.com/disclaimer/disclaimer_en/NL0012377394.htm

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INVESTMENT RECOMMENDATION

Investment recommendation: expected direction of the share price development of the financial instrument up to the given price target in the opinion of

the analyst who covers this financial instrument.

-B- Buy: The price of the analysed financial instrument is expected to rise over the next 12 months.

-H- Hold: The price of the analysed financial instrument is expected to remain mostly flat over the next 12

months.

-S- Sell: The price of the analysed financial instrument is expected to fall over the next 12 months.

“-“ Rating suspended: The available information currently does not permit an evaluation of the company.

WARBURG RESEARCH GMBH – ANALYSED RESEARCH UNIVERSE BY RATING

Rating Number of stocks % of Universe

Buy 110 54

Hold 88 44

Sell 4 2

Rating suspended 0 0

Total 202 100

WARBURG RESEARCH GMBH – ANALYSED RESEARCH UNIVERSE BY RATING M

M taking into account only those companies which were provided with major investment services in the last twelve months.

Rating Number of stocks % of Universe

Buy 32 71

Hold 13 29

Sell 0 0

Rating suspended 0 0

Total 45 100

PRICE AND RATING HISTORY FYBER AS OF 08.06.2018

Markings in the chart show rating changes by Warburg Research

GmbH in the last 12 months. Every marking details the date and

closing price on the day of the rating change.

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