JUL-23-ERSTE GROUP-Recommendation List International Stocks

Recommendation List
International Stocks – 23 July 2010
New recommendations:
• AT&S
• HTC Corp.
• Perseus Mining
• Bekaert
Cancelled:
• Novo Nordisk
• Johnson & Johnson
Erste Group Research - Recommendation List 23 July 2010 Page 1

Core Investments – Modelportfolios
since 1.1.03 since 1.1.10 seit 1.1.03 since 1.1.10
S&P 500 € 1% 9% Portfolio € 108% 16.3%
Amerika S&P 500 $ 24% -1.9% Portfolio (Lo) 155% 5%
Purchase Purchase Current Perf. Outperf. Perf.

Security ISIN Country Sector Date Price Price Euro local local
VALEANT PHARMACEUTICALS US91911X1046 US Pharma 15.01.2010 34.5 54.7 75.2% 62.6% 58.9%
JOHNSON & JOHNSON US4781601046 US Healthcare 14.09.2007 63.1 57 -3.1% 16.7% -9.6%
BIOGEN IDEC INC US09062X1037 US Biotechnology 15.05.2009 49 56.2 20.1% -9.2% 14.6%
DEL MONTE FOODS US24522P1030 US Food 02.10.2009 11.6 13.8 37.7% 12.3% 18.9%
NATIONAL BEVERAGES US6350171061 US Beverages 02.10.2009 11.1 14 40.1% 19.1% 25.8%
AMBEV BRAMBVACNPR1 BZ Beverages 27.11.2009 167.1 189 29.1% 15.1% 13.1%
CLIFTON STAR RESOURCES CA18713J1084 CN Gold Mining 18.06.2010 4.4 3.9 -15.2% -8.2% -10.6%
SILVER WHEATON CA8283361076 CN Silver Mining 07.05.2010 19.5 19.7 0% 3.9% 0.9%
MAGMA DESIGN AUTOMATION US5591811022 US Technology 23.04.2010 3.7 3.3 -7.9% -1.2% -10.7%
OSISKO MINING CA6882781009 CN Gold Mining 16.07.2010 11.8 11.8 0.3% 1% 0.3%

STOXX 600 € 26% 0.2% Portfolio € 79% 11.4%
Europa
NOVO NORDISK DK0060102614 DK Pharma 05.02.2010 373.5 497 31.4% 16.2% 33.1%
NESTLE CH0038863350 CH Food 11.06.2010 54.4 53.6 1.4% 1.4% -1.5%
BEKAERT BE0003780948 BE Industrial 23.07.2010 147.4 #WERT! #WERT! #WERT! #WERT!
HENKEL DE0006048432 DE Consumer Goods 18.06.2010 41.4 39.9 -3.7% -2.4% -3.7%
FRESNILLO GB00B2QPKJ12 GB Silver & Gold Mining 11.06.2010 1013 1104 6.3% 5.4% 9%
RANDGOLD GB00B01C3S32 GB Gold Mining 07.05.2010 5580 6055 9.3% 7.5% 8.5%
ARM HOLDINGS GB0000595859 GB Technology 23.04.2010 258.9 316.5 25.5% 28.5% 22.2%

Asien MSCI Far East 16% 7.6% Portfolio € 95% -13.5%
MSCI Far East (Lo) 8% -8.6% Portfolio(Lo) 127% -22.4%

HTC Corp TW0002498003 TW Computers 23.07.2010 551 #WERT! #WERT! #WERT! #WERT!
MITSUBISHI CORP JP3898400001 JN Diversified 23.07.2009 1571 1823 23.9% 21.9% 16%
INFOSYS TECHNOLOGIES INE009A01021 IN Technology 22.02.2008 1580.1 2757.8 70.3% 118.8% 74.5%
PERSEUS MINING AU000000PRU3 AU Gold Mining 23.07.2010 2.3 #WERT! #WERT! #WERT! #WERT!
MEDUSA MINING AU000000MML0 AU Gold Mining 23.04.2010 4.5 4 -11.3% -15.3% -11.8%
REAL GOLD MINING KYG740991057 HK Gold Mining 23.04.2010 12.5 11.3 -6.9% -13.2% -9.7%

ATX € 110% -3.3% Portfolio € 750% 1.9%
Österreich
Purchase Purchase Current Perf. Outperf.
Security ISIN Country Sector Date Price Price Euro local
CONWERT IMMOBILIEN AT0000697750 AT Real Estate 11.03.2010 8.4 8.7 3.1% 7.3%
SPARKASSEN IMMO AT0000652250 AT Real Estate 07.10.2009 5.2 5.1 -2.9% 4.5%
RAIFFEISEN INTERNATIONAL AT0000606306 AT Financial 08.02.2010 33.8 33.5 -1.1% -1.3%
austriamicrosystems AT0000920863 AT Technology 09.07.2010 35 37.6 7.6% 4.1%
VIENNA INS. GROUP AT0000908504 AT Financial 26.05.2006 46.6 36 -22.7% 13.8%
INTERCELL AT0000612601 AT Consumer, non-cyclical 06.04.2005 5.7 13.8 141.4% 152.2%
VOESTALPINE AT0000937503 AT Industrial 07.10.2009 24.5 25 1.9% 9.3%
RHI AT0000676903 AT Industrial 10.03.2008 27 20.9 -22.7% 11.6%
BWT AT0000737705 AT Industrial 19.05.2009 14.2 18.6 31.4% 13.4%
SEMPERIT AT0000785555 AT Industrial 18.06.2009 19.4 28.1 44.9% 25.9%
OMV AT0000743059 AT Oil & Gas 24.01.2008 43.6 25.1 -42.4% -4.4%
KAPSCH TRAFFICCOM AT000KAPSCH9 AT Traffic Management 13.02.2008 27.3 30.5 11.6% 49.8%
IMMOFINANZ AT0000809058 AT Real Estate 29.04.2010 3.1 2.4 -22% -13.8%
AT&S AT0000969985 AT Technology 23.07.2010 11.6

USA - Core Investments
VALEANT PHARMACEUTICALS
After many years the company is restructured now and in 60
a much better shape than before. We expect above 55
sector average growth of earnings and sales for the next 50
years. Especially the company's exposure to Emerging 45
Markets is attractive for investors. BUY 40
35
30
25
20
07.09 09.09 11.09 01.10 03.10 05.10
VALEANT PHARMACEUTICALS MAV 30 MAV 60
MARKET DATA / VALUATION PROFITABILITY / GROWTH (in %)

Market Cap. (Mil. EUR) 3,205 Return on Equity 84.68
Beta 0.92 Operating Margin 30.01
52-Week-High 55.51 Debt Ratio 61.8
52-Week-Low 24.37 Dividend Yield
PE current Year 24.88 Earnings Growth current year
PEG Ratio 1.88 Earnings Growth next year 3.22
Price/Book Ratio 9.68 Historical Earnings Growth 3.14
Price/Sales Ratio 4.99 Historical Sales Growth 3.13
JOHNSON & JOHNSON

Cancellation: Due to reported serious quality problems 68
in some manufacturing plants we expect the stock to 66
underperform the market for some quarters. 64
62
60
58
56
54
07.09 09.09 11.09 01.10 03.10 05.10
JOHNSON & JOHNSON MAV 30 MAV 60

52-Week-Low 56.86 Dividend Yield 3.66
PE current Year 12.03 Earnings Growth current year -3.68
BIOGEN IDEC INC

Biogen Idec is a globally active Biotech company with 65
constantly improved sales and profits. The stock is 60

attractively valued at a PE of 13x and offers investors
high upside potential. 55
50
45
40
07.09 09.09 11.09 01.10 03.10 05.10
BIOGEN IDEC INC MAV 30 MAV 60

52-Week-Low 41.75 Dividend Yield 0
PE current Year 12.82 Earnings Growth current year 26.22

DEL MONTE FOODS
Del Monte Foods is a food producer also with sales within 18
the pet food market. The company is improving is 16
profitability which is mainly driven by sales and margin

14
growth. Due to the cheap valuation (PE: 10) we expect
the stock to clearly outperform the S&P 500 in the long 12
run. 10
6
07.09 09.09 11.09 01.10 03.10 05.10
DEL MONTE FOODS MAV 30 MAV 60

NATIONAL BEVERAGES
National Beverage Corp. is a small company with just 15
1.200 employees that produce and distribute soft drinks. 14
We already can see some signs of improvement with 13
regard to some profitability measures. The company has 12
a solid balance sheet and also growing cash flows. In our 11

opinion there is a realistic chance of the stock to
10
outperform the S&P 500 in the medium term.
9
8
07.09 09.09 11.09 01.10 03.10 05.10
NATIONAL BEVERAGES MAV 30 MAV 60

Market Cap. (Mil. EUR) 498 Return on Equity 21.11
52-Week-High 14.27 Debt Ratio 0
PEG Ratio Earnings Growth next year 0.71
AMBEV
Companhia de Bebidas das Americas (AmBev) is the 200
largest beverage producer in South America. It produces 190
beer, soft drinks, teas, mineral water, and sports drinks. 180
The company's main brands are Antarctica, Brahma, and 170
Skol. Ambev’s sales grew at an average of about 10% 160
since 2006. The valuation is at peergroup level and the 150
business growth prospects are high. We recommend 140
buying this stock. 130
120
07.09 09.09 11.09 01.10 03.10 05.10
AMBEV MAV 30 MAV 60


MAGMA DESIGN AUTOMATION
Magma Design Automation is a small software producer 4,0
for the semiconductor industry. After restructuring of the 3,5
company we can clearly see improvements in profitability 3,0

and expect the continuation of this successful turnaround
situation. Under these circumstances the stock has a far 2,5
above average potential for further advances. 2,0
1,5
1,0
07.09 08.09 09.09 10.09 11.09 12.09 01.10 02.10 03.10 04.10 05.10 06.10
MAGMA DESIGN AUTOMATION MAV 30 MAV 60

Market Cap. (Mil. EUR) 136 Return on Equity
Beta 1.43 Operating Margin -4.14
PE current Year Earnings Growth current year 97.58
PEG Ratio Earnings Growth next year -0.07
Price/Book Ratio Historical Earnings Growth -0.07
SILVER WHEATON
The Canadian company buys silver by-products from 24
companies that mine silver. Silver Wheaton in its sector 22
is an important market participant with prospects for 20
further earnings growth in the coming years. 18
16
14
12
10
8
07.09 08.09 09.09 10.09 11.09 12.09 01.10 02.10 03.10 04.10 05.10 06.10
SILVER WHEATON MAV 30 MAV 60

CLIFTON STAR RESOURCES

A small Canadian gold explorer that is successful in 9
delivering good results concerning existing gold reserves. 8
The company is working together with Osisko Mining. 7
Due to its small market cap it is risky but offering far 6
above average performance perspectives for potential 5
investors. 4
1
07.09 08.09 09.09 10.09 11.09 12.09 01.10 02.10 03.10 04.10 05.10 06.10
CLIFTON STAR RESOURCES MAV 30 MAV 60

Market Cap. (Mil. EUR) 81 Return on Equity
Beta 0.67 Operating Margin
PE current Year Earnings Growth current year
Price/Book Ratio 4.15 Historical Earnings Growth -0.09
Price/Sales Ratio Historical Sales Growth -0.11

OSISKO MINING
Osisko is one of the most successful gold mining 13
companies in Canada. Production will start at the end of 12
2010. The company has far above average proven gold 11
reserves. It will be able to mine the metal with low costs. 10
The takeover of Brett Resources and cooperations with 9

Clifton Star Resources and Bowmore will promote
8
Osisiko's developement in the long run.
7
6
07.09 08.09 09.09 10.09 11.09 12.09 01.10 02.10 03.10 04.10 05.10 06.10
OSISKO MINING MAV 30 MAV 60

Market Cap. (Mil. EUR) 3,256 Return on Equity -3.03
PE current Year Earnings Growth current year
Price/Sales Ratio Historical Sales Growth 0.5

Europe - Core Investments
NOVO NORDISK
CANCELLATION: With the performance of 31% in Euro since 550
early February, the stock has more than met our expectations. 500
Because of the ailing technical constellation (Double Top), we
450
now take the stock from our recommendation list.
400
350
300
250
07.09 08.09 09.09 10.09 11.09 12.09 01.10 02.10 03.10 04.10 05.10 06.10
NOVO NORDISK MAV 30 MAV 60

52-Week-High 519 Debt Ratio 3.74
NESTLE
The Swiss food group has already convinced for years 56
with rising sales and strong margins. With an expected 54
P/E of 15x for 2011, Nestle valued at the same multiple 52
as the sector (Stoxx 600 - Food producers). In addition, 50
the stock currently offers a dividend yield of 3%. Nestle is 48
a good defensive share with potential. 46
44
42
40
07.09 08.09 09.09 10.09 11.09 12.09 01.10 02.10 03.10 04.10 05.10 06.10
NESTLE MAV 30 MAV 60

HENKEL
Handle is a consumer products manufacturer 45
headquartered in Germany. The company is active in
40
three main areas "detergent", "Cosmetics and Personal
Care" and "Adhesives, Sealants and Surface Treatment." 35
The company has a global presence- of the 30
approximately 50,000 employees, more than work 80%
outside Germany. 40% of annual sales come from 25
outside of Europe. With a P/E of 14x for 2011, the 20
company is valued below the sector. We continue to 07.09 10.09 01.10 04.10
expect positive earnings in this defensive sector. Buy. HENKEL MAV 30 MAV 60


RANDGOLD
Randgold is a Britsh operator of gold mines in Africa. The 7.000
largest mines are located in Mali, the Ivory Coast and 6.500
Senegal. In the recent quarters the company increased 6.000
turnover, profit and operating margin above its peers. In 5.500
line with our positive outlook for a rising gold price, we 5.000
expect an above-average performance of Randgold. Buy. 4.500
4.000
3.500
3.000
07.09 08.09 09.09 10.09 11.09 12.09 01.10 02.10 03.10 04.10 05.10 06.10
RANDGOLD MAV 30 MAV 60

52-Week-Low 3351 Dividend Yield 0.31
FRESNILLO
Fresnillo is the world's largest primary silver producer (3rd in 1.200
worldwide total production) and Mexico's second largest gold 1.100

producer. The company is listed on the LSE and operates four 1.000
producing gold and silver mines and three exploration projects.
900
Fresnillo plans to double silver production within the next ten years
800
and increase its gold production to further diversifying its precious
metal asset base in Mexico and possibly in other countries in South 700
America. In 2009, Fresnillo increased silver production by 9% to a 600

record 38 Mio. ounces. The company also increased gold production 500
by 5% to 277,000 ounces. We believe the silver price will extend its
400
gains and therefore recommend to buy the stock. 07.09 08.09 09.09 10.09 11.09 12.09 01.10 02.10 03.10 04.10 05.10 06.10
FRESNILLO MAV 30 MAV 60

52-Week-High 1139 Debt Ratio 0
ARM HOLDINGS
ARM Holdings is a technology company headquartered in 350
England. The company is best known for its processors,

300
although it also designs, licenses and sells software
development tools The ARM Holdings is considered to be 250
market dominant in the field of mobile phone chips, particularly
smart phones. A characteristic feature of ARM processors is 200
their low electric power consumption. With the accelerating

growth of the smart phone market worldwide we see further 150
opportunity in this stock.

100
07.09 08.09 09.09 10.09 11.09 12.09 01.10 02.10 03.10 04.10 05.10 06.10
ARM HOLDINGS MAV 30 MAV 60


BEKAERT
NEW RECOMMENDATION: Bekaert is a Belgian company with 160
18,000 employees. The company specializes in advanced 150
metal transformation and advanced materials and coatings. 140
Main customers are the automotive and construction. Products 130
120
include wire and cable, structural steel, fences and filters. The
110
company is well positioned internationally and generates almost
100
70% of its sales outside Europe. With a P/E of 12x for 2010 and
90
a very strong technical chart, the stock is a buy
80
recommendation.
70
07.09 08.09 09.09 10.09 11.09 12.09 01.10 02.10 03.10 04.10 05.10 06.10
BEKAERT MAV 30 MAV 60


Asia - Core Investments
INFOSYS TECHNOLOGIES
The Indian IT service provider is one of the biggest 3.100
beneficiaries of globalization. In the past quarter, 2.900
turnover exceeded the USD 1 billion mark for the first 2.700
time, EBIT-margin increased to 28.8 %. For the current 2.500
fiscal year, the company expects nearly 30% of profit and 2.300
sales growth, due to the current record backlog certainly 2.100
a realistic expectation. After the recent price declines, we 1.900
see the stock now at an attractive entry-level. 1.700
1.500
07.09 09.09 11.09 01.10 03.10 05.10
INFOSYS TECHNOLOGIES MAV 30 MAV 60

52-Week-Low 1935 Dividend Yield 1.1
MITSUBISHI CORP
Mitsubishi Corp. ist ein japanischer Handelskonzern, der zu den zehn 2.600
größten Unternehmen an der Tokioter Börse zählt. Mitsubishi ist auch
in Zeiten der Wirtschaftskrise ein hoch profitables Unternehmen, das 2.400
sich durch zahlreiche Investitionen in den letzten Jahren zu einer

2.200
Beteilungsgesellschaft mit großen Wachstumschancen entwickelt hat.
Der Konzern wird an der Börse aufgrund von der 1,4 Mrd. Barrel 2.000
Ölreserven als reiner Rohstoffwert gehandelt, ist aber unter anderem
Japans größter Hühnerproduzent, Besitzer einer Fastfood Kette, und 1.800
hält Beteiligungen an einem Batteriehersteller, einem australischem

1.600
Bergwerk und einer Supermarktkette. Wir empfehlen Mitsubishi Corp.
als breit diversifiziertes Japan-Investment zum Kauf. 1.400
07.09 09.09 11.09 01.10 03.10 05.10
MITSUBISHI CORP MAV 30 MAV 60
MARKTDATEN / BEWERTUNG RENTABILITÄT / WACHSTUM (in %)

Marktkap. (Mio. EUR) 28.547 Eigenkapitalrentabilität 10,22
Beta 1,23 Operative Marge 4,00
52-Wochen-Hoch 2.542,00 Fremdkapitalquote 57,04
52-Wochen-Tief 1.725,00 Dividendenrendite 3,03
KGV aktuelles Geschäftsjahr 11,39 Gewinnwachstum aktuelles Jahr -25,27
Dynamisches KGV 0,42 Gewinnwachstum nächstes Jahr 166,24
Kurs/Buchwert 1,05 Historisches Gewinnwachstum 165,86
Kurs/Umsatz 0,68 Historisches Umsatzwachstum
MEDUSA MINING
Australia based Medusa Mining is a debt-free and 5,5
5,0
unhedged company, producing gold at cash costs of
4,5
USD 190 per ounce. The current resource of almost
4,0
700,000 ounces should be extended to up to 7 million 3,5
ounces within the next few years. In the medium-term, 3,0
Medusa wants to produce 300,000 to 400,000 ounces. 2,5
The exploration is fully financed from cash flow, 2,0
moreover we like the shareholder structure. 1,5
1,0
07.09 09.09 11.09 01.10 03.10 05.10
MEDUSA MINING MAV 30 MAV 60

PE current Year 13.12 Earnings Growth current year

Asia - Core Investments
REAL GOLD MINING
Real Gold Mining is a chinese low-cost producer (cash 17
costs at USD 208 per ounce) with high-grad mines in 15
Inner Mongolia. The strong production growth from 13

capacity expansion and potential acquisitions indicate
attractive upside potential. Therefore we expect the 11
valuation gap vs. it's peers to narrow. 9
5
07.09 09.09 11.09 01.10 03.10 05.10
REAL GOLD MINING MAV 30 MAV 60

Beta Operating Margin 72.77
PERSEUS MINING
New Recommendation: The Austrialian Gold Explorer 3,0
has about 7 Mio. Ounces of gold in resouces and will 2,5

start production in Q3 2011. Besides the experienced
management, we like the low valuation, high exploration 2,0
potential as well as low cash costs. 1,5
1,0
0,5
07.09 08.09 09.09 10.09 11.09 12.09 01.10 02.10 03.10 04.10 05.10 06.10
PERSEUS MINING MAV 30 MAV 60

Market Cap. (Mil. EUR) 677 Return on Equity -4.99
PE current Year Earnings Growth current year 22.38
Price/Book Ratio 4.96 Historical Earnings Growth
Price/Sales Ratio Historical Sales Growth 0.02
HTC Corp
New Recommendation: The Taiwanes hight-tech 600
company is specializing in smart phones and currently 550
holds 70% market share for Windows Mobile 500
smartphones. The stock is a good buy, due it's low 450
valuation, dynamic growth, stable margins and a dividend 400
yield of nearly 5%. 350
300
250
200
07.09 09.09 11.09 01.10 03.10 05.10
HTC Corp MAV 30 MAV 60

52-Week-High 583 Debt Ratio 0

Austria – Xetra Core Investments
CONWERT IMMOBILIEN
The residential property company is mainly focused on 11
Austria and Germany. Positive is the currently running 10
share buyback programme and the valuation of the stock
9
below our DCF value and the NAV per share. The start of
8
dividend payments should be seen positively from our
point of view. Additionally, the investment of the syndicate 7
around H.P. Haselsteiner is certainly attractive for the 6
stock. The envisaged full ECO-takeover should be value 5
accretive in the mid-/long-term. Our target price: EUR 07.09 09.09 11.09 01.10 03.10 05.10
10.7. CONWERT IMMOBILIEN MAV 30 MAV 60

PEG Ratio n.a. Earnings Growth next year 51.48
Price/Sales Ratio 3.45 Historical Sales Growth n.a.
SPARKASSEN IMMO
S Immo disposes of a broadly diversified and conserva- 6,5
tively financed property portfolio with a focus on A, GER 6,0
and the CEE countries. The currently running

5,5
development projects will bring a strong improvement in
cash flows, esp. in 2010/11. The valuation of the stock 5,0
exceeds the peer group level based on P/NAV, but due to 4,5
expected jump in results it actually becomes much more 4,0

attrative. Acquisitions of distressed assets are possible
additional share price triggers. Our target price: EUR 6.5. 3,5
07.09 09.09 11.09 01.10 03.10 05.10
SPARKASSEN IMMO MAV 30 MAV 60

RAIFFEISEN INTERNATIONAL
Raiffeisen International (RI) is the holding company for 16 50
network banks and 17 leasing companies covering the 45
entire CEE region (including Belarus, Ukraine and 40

Russia). RI trades rather low in a peer group comparison
due to the happenings around the merger with RZB. Given 35
that there are some signs of economic improvement in the 30
CEE region, we see a diminishing probability for negative 25

surprise. Our target price: under review.
20
07.09 08.09 09.09 10.09 11.09 12.09 01.10 02.10 03.10 04.10 05.10 06.10
RAIFFEISEN INTERNATIONAL MAV 30 MAV 60

Beta 1.34 Operating Margin n.a.
Price/Sales Ratio n.a. Historical Sales Growth n.a.

VIENNA INS. GROUP
Austria’s largest insurance company sets great store by the 45
43
expansion into CEE. Almost 50% of the premium volume is
41
already being earned in the region. In Romania, Bulgaria,
39
Slovakia and Czech Republic the company is already number 37
one. The company has a total of some 20 million customers in 35
24 countries. The GDP of the CEE region is lower GDP in 33
comparison to Western Europe and the region has an enormous 31
growth potential with respect to insurance density, despite the 29
short-term negative effects from the economic situation. Our 27
25
target price: EUR 44.5. 07.09 09.09 11.09 01.10 03.10 05.10
VIENNA INS. GROUP MAV 30 MAV 60

Beta 1.02 Operating Margin n.a.
Price/Sales Ratio n.a. Historical Sales Growth n.a.
INTERCELL
Intercell is the first biotech company listed on Wiener 35
Börse specialized in the development of therapeutic and 30

prophylactic vaccines. The vaccine market offers excellent
growth perspectives. The first successfully launched 25
vaccine is against Japanese encephalitis, where sales are

20
growing. The company has a lot more projects in the
pipeline and in the clinical testing phase with cooperation 15
partners (esp. Novartis/Merck/Glaxo). Our target price:

EUR 27. 10
07.09 08.09 09.09 10.09 11.09 12.09 01.10 02.10 03.10 04.10 05.10 06.10
INTERCELL MAV 30 MAV 60

Market Cap. (Mil. EUR) 674 Return on Equity -4.61
Beta 0.75 Operating Margin -29.41
PE current Year n.a. Earnings Growth current year -10.49
PEG Ratio n.a. Earnings Growth next year -124.24
IMMOFINANZ
Immofinanz is one of the largest property companies in 3,5
the CEE region und has been successfully restructured by 3,0

the new board around CEO Zehetner, following financial
difficulties. We initiate our coverage with a target price of 2,5
EUR 3.0. The current attractive multiples (P/NAV,

2,0
EV/EBITDA) confirm our positve stance on the share.
1,5
1,0
07.09 09.09 11.09 01.10 03.10 05.10
IMMOFINANZ MAV 30 MAV 60


VOESTALPINE
voestalpine is a comparatively defensive Austrian steel 33
31
company with extensive downstream activities and a clear
29
focus on high quality niche positions. Long-term contracts
27
also contribute to a more stable earnings pattern in 25
comparison to peers. It enjoys a unique regional location 23
to supply CEE markets with high quality products. Despite 21
voestalpine's high indebtedness it has no immediate 19
refinancing needs. Our target price: EUR 28. 17
15
07.09 08.09 09.09 10.09 11.09 12.09 01.10 02.10 03.10 04.10 05.10 06.10
VOESTALPINE MAV 30 MAV 60

Beta 0.97 Operating Margin 7
Price/Sales Ratio 0.46 Historical Sales Growth -4.34
RHI
RHI is a global player and has a worldwide number one 28
26
position in the refractories business. The most important
24
customer industries are iron & steel, cement & lime,
22
nonferrous metals and glass. The situation in the steel 20
and industrial sector (RHI's clients) is currently improving. 18
The outlook for 2010 is promising, the restructurings 16
undertaken were very successful. Our 12-month target 14
price: EUR 32. 12
10
07.09 08.09 09.09 10.09 11.09 12.09 01.10 02.10 03.10 04.10 05.10 06.10
RHI MAV 30 MAV 60

BWT
BWT is Europe's leading water technology company. 24
Recently BWT succesfully entered the filter market (point- 22
of-use market) for water pitchers, coffee-machines and

20
other interesting food appliction. We consider BWT as a
quite attractive investment case due to its stable core 18
business model in combination with the excellent growth 16
opportunities in the point-of-use segment. Our target 14

price: EUR 27.3.
12
07.09 08.09 09.09 10.09 11.09 12.09 01.10 02.10 03.10 04.10 05.10 06.10
BWT MAV 30 MAV 60


SEMPERIT
Although Semperit is usually seen as cyclical stock, 40% 33
of the company's revenues are generated by the division 31
Sempermed which is producing surgical- and examination 29
gloves. The increase in sales revenues of the last quarters 27
clearly proved that this division is able to deliver strong 25
figures even in a very difficult business environment. 23
Semperit has a solid balance sheet structure with a net 21
cash position which should enable the company to think 19
about acquisitions. Our target price is EUR 38. 17

07.09 08.09 09.09 10.09 11.09 12.09 01.10 02.10 03.10 04.10 05.10 06.10
SEMPERIT MAV 30 MAV 60

OMV
OMV currently suffers from low refining margins, but the 34
current oil price level is favourable. The stock is still 32
suitable as a "hedge" for the portfolio against possible oil

30
price increases and is also a good means to diversify into
the commodity sector. The valuation of the stock is 28
currently quite low, in our opinion, and does not consider 26
the strong substance of the company. Our target price: 24

EUR 38.
22
07.09 08.09 09.09 10.09 11.09 12.09 01.10 02.10 03.10 04.10 05.10 06.10
OMV MAV 30 MAV 60

KAPSCH TRAFFICCOM
KTC benefits in the long-term from budget constraints of 35
governments and from the ever rising traffic volume. We 33
see plenty of projects globally in the long term. The 31
valuation of the stock is only based on existing projects. 29
Recently there have been good news from the tender in 27
South Africa and further smaller projects. Our target price: 25
EUR 38. 23
21
19
07.09 08.09 09.09 10.09 11.09 12.09 01.10 02.10 03.10 04.10 05.10 06.10
KAPSCH TRAFFICCOM MAV 30 MAV 60


austriamicrosystems
austriamicrosystems is a global leader in the design and 45
manufacture of high performance analog ICs. ams not 40
only benefits from the ongoing market recovery but also 35
from its recently launched products that set new standards 30
for various technologies. With its high operating leverage 25

it benefits strongly from an further increase of its capacity
20
utilization. ams produces strong free cash flow that is
15
used for piling up cash and a 25% payout ratio. Target
Price: CHF 46. 10
07.09 09.09 11.09 01.10 03.10 05.10
austriamicrosystems MAV 30 MAV 60

AT&S
New recommendation 12
11
AT&S currently benefits from the strong growth in the 10
mobile internet area. All plants produce at the capacity 9
limits and further expansion capex is planned. The outlook 8
7
for the next quarters looks promising to us. Despite the
6
already strong share price increase, we see further upside 5
potential. Our target price: EUR 16.1. 4
2
07.09 08.09 09.09 10.09 11.09 12.09 01.10 02.10 03.10 04.10 05.10 06.10
AT&S MAV 30 MAV 60

Beta 0.83 Operating Margin 9

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JUL-23-ERSTE GROUP-Recommendation List International Stocks

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Recommendation List

International Stocks – 23 July 2010

Erste Group Research - Recommendation List 23 July 2010 Page 1

Amerika S&P 500 $ 24% -1.9% Portfolio (Lo) 155% 5%

Purchase Purchase Current Perf. Outperf. Perf.

since 1.1.03 since 1.1.10 seit 1.1.03 since 1.1.10

since 1.1.03 since 1.1.10 seit 1.1.03 since 1.1.10

MSCI Far East (Lo) 8% -8.6% Portfolio(Lo) 127% -22.4%

Purchase Purchase Current Perf. Outperf. Perf.

since 1.1.03 since 1.1.10 seit 1.1.03 since 1.1.10

Erste Group Research - Recommendation List 23 July 2010 Page 2

a much better shape than before. We expect above 55

sector average growth of earnings and sales for the next 50

years. Especially the company's exposure to Emerging 45

Markets is attractive for investors. BUY 40

MARKET DATA / VALUATION PROFITABILITY / GROWTH (in %)

JOHNSON & JOHNSON

in some manufacturing plants we expect the stock to 66

underperform the market for some quarters. 64

MARKET DATA / VALUATION PROFITABILITY / GROWTH (in %)

BIOGEN IDEC INC

constantly improved sales and profits. The stock is 60

MARKET DATA / VALUATION PROFITABILITY / GROWTH (in %)

Erste Group Research - Recommendation List 23 July 2010 Page 3

the pet food market. The company is improving is 16

profitability which is mainly driven by sales and margin

MARKET DATA / VALUATION PROFITABILITY / GROWTH (in %)

1.200 employees that produce and distribute soft drinks. 14

We already can see some signs of improvement with 13

regard to some profitability measures. The company has 12

a solid balance sheet and also growing cash flows. In our 11

MARKET DATA / VALUATION PROFITABILITY / GROWTH (in %)

largest beverage producer in South America. It produces 190

The company's main brands are Antarctica, Brahma, and 170

Skol. Ambev’s sales grew at an average of about 10% 160

since 2006. The valuation is at peergroup level and the 150

business growth prospects are high. We recommend 140

buying this stock. 130

AMBEV MAV 30 MAV 60

MARKET DATA / VALUATION PROFITABILITY / GROWTH (in %)

Erste Group Research - Recommendation List 23 July 2010 Page 4

for the semiconductor industry. After restructuring of the 3,5

company we can clearly see improvements in profitability 3,0

above average potential for further advances. 2,0

MARKET DATA / VALUATION PROFITABILITY / GROWTH (in %)

companies that mine silver. Silver Wheaton in its sector 22

is an important market participant with prospects for 20

further earnings growth in the coming years. 18

MARKET DATA / VALUATION PROFITABILITY / GROWTH (in %)

CLIFTON STAR RESOURCES

delivering good results concerning existing gold reserves. 8

The company is working together with Osisko Mining. 7

Due to its small market cap it is risky but offering far 6

above average performance perspectives for potential 5

MARKET DATA / VALUATION PROFITABILITY / GROWTH (in %)

Erste Group Research - Recommendation List 23 July 2010 Page 5

companies in Canada. Production will start at the end of 12

2010. The company has far above average proven gold 11

reserves. It will be able to mine the metal with low costs. 10

The takeover of Brett Resources and cooperations with 9

MARKET DATA / VALUATION PROFITABILITY / GROWTH (in %)

Erste Group Research - Recommendation List 23 July 2010 Page 6

MARKET DATA / VALUATION PROFITABILITY / GROWTH (in %)

with rising sales and strong margins. With an expected 54