Vectron Systems AG

Vectron Systems AG
partners. Wincor Nixdorf possesses a high grade of internationalization, having its
own subsidiaries in 37 countries and a market presence in around 100 countries
around the world. In FY 2007/2008, ended in September 30, the company
generated revenues of EUR 2.3bn and a net income of EUR 127m. Comparability
to Vectron is only given in Wincor´s retail business where the company delivers
POS Systems to customers with high branch concentration. Overall Wincor
operates in this business segment as a pure manufacturer.
Multiples and derived value
In our peer group analysis, we considered multiples for the fiscal years 2009E and
2010E. We applied different multiples including EV/EBITDA in order to account for
special situation related to Vectron´s high depreciation expenses. In the course of
the management-buy-out, Vectron had acquired softrwarecodes which the
company has to write-off until 2012E.
Given the current volatility at the stock markets and the fact that Vectron is rather a
small player compared to the global operating peers, we decided to weight the peer
group valuation with only 33.3% in our overall valuation approach.
Peer group valuation: Multiples and derived value
Company name
Source: Bloomberg, CBS Research AG
We applied these multiples to our financial forecasts for Vectron. We deducted
Vectrons´s net financial debt from the derived enterprise values in order to get the
fair value of equity. From our peer group valuation, we derived a market-oriented
fair value of equity of EUR 16.2 m for the company corresponding to a fair value
per share of EUR 10.77.
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2009E 2010E 2009E 2010E 2009E 2010E 2009E 2010E
MICROS SYSTEMS INC 16.4 16.6 9.2 9.6 8.5 9.0 1.4 1.5
RADIANT SYSTEMS INC 10.6 8.3 9.9 7.9 7.6 5.9 1.0 0.9
WINCOR NIXDORF AG 11.0 11.0 8.4 8.0 6.5 6.4 0.7 0.7
Average 12.7 12.0 9.2 8.5 7.5 7.1 1.0 1.0
Median 11.0 11.0 9.2 8.0 7.6 6.4 1.0 0.9
Minimum 10.6 8.3 8.4 7.9 6.5 5.9 0.7 0.7
Maximum 16.4 16.6 9.9 9.6 8.5 9.0 1.4 1.5
EUR m
2009E 2010E 2009E 2010E 2009E 2010E 2009E 2010E
Vectron Systems AG: Financial estimates by CBSR 0.04 0.89 0.3 1.9 1.7 3.2 20.2 23.2
Applied multiples: Median of the peer group multiples 11.0 11.0 9.2 8.0 7.6 6.4 1.0 0.9
Enterprise value (derived) - - 2.9 15.2 12.6 20.5 19.8 20.6
+ Excess cash and marketable securities 7.6
- Financial debt -6.5
Market capitalization (derived) 0.6 14.7 4.0 16.3 13.8 21.6 20.9 21.7
Average of market capitalizations 16.2
Fair market capitalization 16.2
Number of shares outstanding (m) 1.5
Fair value per share (EUR) 10.77
EPS EBIT EBITDA
We applied multiples
for the FY 2009E and
2010E
P / E EV / EBIT EV / EBITDA EV / Sales
Sales
Our fair value results
in EUR 10.77
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