Poland + Ukraine = Euro 2012: Europe Says BUY Ukraine

Publication Date	April 2007
Publisher	Concorde Capital
Product Type	Report
Pages	55
ISBN Number	not applicable
Product Code	CNC00058

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Summary

The UEFA's selection of Ukraine & Poland on April 18 to host the 2012 European Soccer Championship is a clear indicator of how Europe evaluates the long-term effects of Ukraine's political "instability" and the prospects it holds for the country's future. The announcement will be a flash point in the development of the country's infrastructure and spur investments into the economy. Real estate/

development, construction, railway machine-building, and banks will be among the major beneficiaries.

Poland & Ukraine: Euro-2012

Poland & Ukraine were selected over strong bids from other finalists, Italy and Croatia-Hungary, after beating out eight other countries (including future EU member Turkey) in earlier rounds to host the European Championship in 2012. Holding Euro-2012 automatically implies holding the European Under-21 Football Championship in 2014. European decision-makers that voted for Ukraine are likely to do their best to help Ukraine put on a top class show in 2012. This includes both organization and political will, along with assistance in getting financing from international financial institutions.

Investments to boom

The news definitely means an acceleration in investments (in the year after the announcement Portugal would be home to Euro-2004, FDI into the country doubled). In Ukraine, USD 4.3 bln from local public and private investors are penciled in for projects related to the tournament, as stated in the draft law on the organization of Euro-2012. However, major investments will flow into transportation infrastructure - some USD 20 bln as projected by the Ministry of Transportation. Poland and Ukraine are the least developed countries in terms of their transportation network of any country ever to host the event - in fact, investments in infrastructure are scheduled higher than those directly related to the tournament. This will translate into a much deeper impact for Euro-2012 on these two economies than on any previous host-country.

Comprehensive impact on the economy

Property developers and construction companies will lead the pack, driven by orders to build lacking hotels, sports facilities, airport terminals and highways. TMM and XXI Century have already started negotiations with authorities to work on the projects. Financial inflow into the financial system will provide banks with plenty opportunities to earn. High demand will spread into other sectors of the economy: building materials, machine building and others through the multiplication effect. Closer to the cup year, other effects will include returns on tickets sales and sales of broadcasting rights, advertising revenues, and growth in hotel and restaurant businesses as well as retail trade. Pan-European publicity and media exposure will help establish the long-term positive perception of Ukraine.

Winners

Major beneficiaries will be sectors directly related to infrastructure: real estate/development, construction, building materials, railway machine-building, as well as commercial banks. We also draw attention to several companies whose products and services hint that they might benefit. See the full list on the left and company profiles in the second part of the report.

Content

1. Euro-2012 Bound
- Heavy political dividends for Ukraine
- Ukraine-Poland: Europe's new political tag-team?
- A clear message from Europe: Your politicians play by rules
- Ukraine can count on European backing
2. Positive news for the economy
- FDI booster
- Broad economic impact
- Estimated investments
3. Construction
- Euro-2012 will support a construction recovery
4. Transportation
5. Financial services
6. PROFILES OF COMPANIES THAT MIGHT BENEFIT FROM EURO-201
- 6.1 TMM
  - INVESTMENT CASE
  - BUSINESS OVERVIEW
  - MARKET INFORMATION table
  - STOCK OWNERSHIP table
  - KEY RATIOS - table
  - Portfolio NPV by class of property - chart
  - Portfolio NPV by class of property - chart
- 6.2. XXI Century
  - SHARE PRICE PERFORMANCE chart
  - BUSINESS OVERVIEW
  - MARKET INFORMATION table
  - STOCK OWNERSHIP table
  - KEY RATIOS - table
  - Project portfolio structure - chart
- 6.3 Kovalska Reinforced Concrete
  - Concrete structures output chart
  - BUSINESS OVERVIEW
  - MARKET INFORMATION table
  - STOCK OWNERSHIP table
  - KEY RATIOS - table
- 6.4 Kramatorsk Cement Pushka
  - SHARE PRICE PERFORMANCE chart
  - BUSINESS OVERVIEW
  - MARKET INFORMATION table
  - STOCK OWNERSHIP table
  - KEY RATIOS - table
  - Cement output - chart
- 6.5 Kyivmetrobud
  - SHARE PRICE PERFORMANCE chart
  - BUSINESS OVERVIEW
  - MARKET INFORMATION table
  - STOCK OWNERSHIP table
  - KEY RATIOS - table
  - Sales - chart
- 6.6 Kyivmiskbud
  - BUSINESS OVERVIEW
  - Volume chart
  - MARKET INFORMATION table
  - STOCK OWNERSHIP table
  - MARKET MULTIPLES - table
  - KEY RATIOS - table
- 6.7 Mostobud
  - SHARE PRICE PERFORMANCE chart
  - BUSINESS OVERVIEW
  - MARKET INFORMATION table
  - STOCK OWNERSHIP table
  - MARKET MULTIPLES - table
  - KEY RATIOS - table
  - Construction Volume - chart
- 6.8 Dniprovahonrembud
  - BUSINESS OVERVIEW
  - Overhaul & Modernization chart
  - MARKET INFORMATION table
  - STOCK OWNERSHIP table
  - MARKET MULTIPLES - table
  - KEY RATIOS - table
- 6.9 Dnipropetrovsk Switch
  - SHARE PRICE PERFORMANCE chart
  - BUSINESS OVERVIEW
  - MARKET INFORMATION table
  - STOCK OWNERSHIP table
  - MARKET MULTIPLES - table
  - KEY RATIOS - table
  - Railroad Switch Output - chart
- 6.10 Kryukiv Wagon
  - INVESTMENT CASE
  - SHARE PRICE PERFORMANCE chart
  - BUSINESS OVERVIEW
  - MARKET INFORMATION table
  - STOCK OWNERSHIP table
  - MARKET MULTIPLES - table
  - KEY RATIOS - table
  - Freight Carriages Output - chart
- 6.11 Luhanskteplovoz
  - INVESTMENT CASE
  - SHARE PRICE PERFORMANCE chart
  - BUSINESS OVERVIEW
  - MARKET INFORMATION table
  - STOCK OWNERSHIP table
  - MARKET MULTIPLES - table
  - KEY RATIOS - table
  - Output Dynamics - chart
- 6.12 Bank Forum
  - INVESTMENT CASE
  - SHARE PRICE PERFORMANCE chart
  - BUSINESS OVERVIEW
  - MARKET INFORMATION table
  - STOCK OWNERSHIP table
  - MARKET MULTIPLES - table
  - KEY RATIOS - table
  - Growth Rates - chart
- 6.13 Raiffeisen Bank Aval
  - INVESTMENT CASE
  - SHARE PRICE PERFORMANCE chart
  - BUSINESS OVERVIEW
  - UPCOMING EVENTS
  - MARKET INFORMATION table
  - STOCK OWNERSHIP table
  - MARKET MULTIPLES - table
  - KEY RATIOS - table
  - Growth Rates - chart
- 6.14 Ukrsotsbank
  - INVESTMENT CASE
  - SHARE PRICE PERFORMANCE chart
  - BUSINESS OVERVIEW
  - UPCOMING EVENTS
  - MARKET INFORMATION table
  - STOCK OWNERSHIP table
  - MARKET MULTIPLES - table
  - KEY RATIOS - table
  - Growth Rates - chart
- 6.15 Mittal Steel Kryviy Rih
  - INVESTMENT CASE
  - SHARE PRICE PERFORMANCE chart
  - BUSINESS OVERVIEW
  - MARKET INFORMATION table
  - STOCK OWNERSHIP table
  - MARKET MULTIPLES - table
  - KEY RATIOS - table
  - Crude Steel Output - chart
- 6.16 Dniprometiz
  - INVESTMENT CASE
  - SHARE PRICE PERFORMANCE chart
  - BUSINESS OVERVIEW
  - MARKET INFORMATION table
  - STOCK OWNERSHIP table
  - MARKET MULTIPLES - table
  - KEY RATIOS - table
  - Wire Output - chart
- 6.17 Dnipropetrovsk Pipe
  - INVESTMENT CASE
  - SHARE PRICE PERFORMANCE chart
  - BUSINESS OVERVIEW
  - MARKET INFORMATION table
  - STOCK OWNERSHIP table
  - MARKET MULTIPLES - table
  - KEY RATIOS - table
  - Pipes Output - chart
- 6.18 Kominmet
  - INVESTMENT CASE
  - SHARE PRICE PERFORMANCE chart
  - BUSINESS OVERVIEW
  - MARKET INFORMATION table
  - STOCK OWNERSHIP table
  - MARKET MULTIPLES - table
  - KEY RATIOS - table
  - Pipes Output - chart
- 6.19 Silur
  - SHARE PRICE PERFORMANCE chart
  - BUSINESS OVERVIEW
  - MARKET INFORMATION table
  - STOCK OWNERSHIP table
  - MARKET MULTIPLES - table
  - KEY RATIOS - table
  - Wire Products Output - chart
- 6.20 Ukrnafta
  - INVESTMENT CASE
  - SHARE PRICE PERFORMANCE chart
  - BUSINESS OVERVIEW
  - UPCOMING EVENTS
  - MARKET INFORMATION table
  - STOCK OWNERSHIP table
  - MARKET MULTIPLES - table
  - KEY RATIOS - table
  - Oil and Oil Product Sales - chart
- 6.21 Galnaftogaz
  - INVESTMENT CASE
  - SHARE PRICE PERFORMANCE chart
  - BUSINESS OVERVIEW
  - UPCOMING EVENTS
  - MARKET INFORMATION table
  - STOCK OWNERSHIP table
  - MARKET MULTIPLES - table
  - KEY RATIOS - table
  - Number of Fuel Stations - chart
CHARTS
- PFTS Relative performance
- Key economic data
- Net FDI in Portugal, USD mln
- Construction works, USD bln, 2006 prices
- Change, y-o-y
- Hotel space available, ths rooms
- New hotel space planned, ths rooms
- Major roads and highway development projects
TABLES
- Watch list
- Example: 2006 Budget expenditures on transportation infrastructure
- Available Hotel Space in Host Cities, Rooms
- Ukrainian railway station modernization plan
- Highway projects
- Airport development required for Euro-2012
- TMM Income statement summary, USD mln
- TMM Balance sheet summary, USD mln
- XXI Century Income statement summary, USD mln
- XXI Century Balance sheet summary, USD mln
- Kovalska Reinforced Concrete Income statement summary, USD mln
- Kovalska Reinforced Concrete Balance sheet summary, USD mln
- Kramatorsk Cement Pushka Income statement summary, USD mln
- Kramatorsk Cement Pushka Balance sheet summary, USD mln
- Kyivmetrobud Income statement summary, USD mln
- Kyivmetrobud Balance sheet summary, USD mln
- Kyivmiskbud Income statement summary, USD mln
- Kyivmiskbud Balance sheet summary, USD mln
- Mostobud Income statement summary, USD mln
- Mostobud Balance sheet summary, USD mln
- Dniprovahonrembud Income statement summary, USD mln
- Dniprovahonrembud Balance sheet summary, USD mln
- Dnipropetrovsk Switch Income statement summary, USD mln
- Dnipropetrovsk Switch Balance sheet summary, USD mln
- Kryukiv Wagon Income statement summary, USD mln
- Kryukiv Wagon Balance sheet summary, USD mln
- Luhanskteplovoz Income statement summary, USD mln
- Luhanskteplovoz Balance sheet summary, USD mln
- Bank Forum Income statement summary, USD mln
- Bank Forum Balance sheet summary, USD mln
- Raiffeisen Bank Aval Income statement summary, USD mln
- Raiffeisen Bank Aval Balance sheet summary, USD mln
- Ukrsotsbank Income statement summary, USD mln
- Ukrsotsbank Balance sheet summary, USD mln
- Mittal Steel Kryviy Rih Income statement summary, USD mln
- Mittal Steel Kryviy Rih Balance sheet summary, USD mln
- Dniprometiz Income statement summary, USD mln
- Dniprometiz Balance sheet summary, USD mln
- Dnipropetrovsk Pipe Income statement summary, USD mln
- Dnipropetrovsk Pipe Balance sheet summary, USD mln
- Kominmet Income statement summary, USD mln
- Kominmet Balance sheet summary, USD mln
- Silur Income statement summary, USD mln
- Silur Balance sheet summary, USD mln
- Ukrnafta Income statement summary, USD mln
- Ukrnafta Balance sheet summary, USD mln
- Galnaftogaz Income statement summary, USD mln
- Galnaftogaz Balance sheet summary, USD mln