1. WEEKLY SUMMARY
May 16 - 20, 2011
Close w/w (%) 3M (%) YTD (%) y/y (%) 52W Low 52W High
PX 1,255 -0.8 0.6 2.5 9.9 1,097 1,276
CZK/EUR 24.47 -0.2 -0.4 2.7 5.7 23.99 26.02
CZK/USD 17.28 0.1 4.5 9.5 19.9 16.27 21.81
PRIBOR 6M 1.57% 1bp 0bp 1bp 5bps 1.47% 1.58%
10Y GB 3.75/20 3.83% 4bps -22bps -7bps -26bps 3.23% 4.35%
Prague Stock Exchange Close w/w (%)
AAA Auto 25.5 -1.4
CME 390 0.0 CZK m PX Index
CEZ 947 -1.5 4,000 1,300
ECM 40 -10.2
Erste 824 -0.8
Fortuna 117 -0.4 3,000 1,250
KB 4,150 -0.2
KITD 208 2.0
NWR 282 -0.2 2,000 1,200
Orco 230 0.7
Pegas 446 0.5
PMCR 9,277 -1.3 1,000 1,150
TEF 416 -0.3
Unipetrol 182 -3.0
VIG 961 -2.6 0 1,100
Equity Bonds 21/04 29/04 6/05 13/05 20/05
CZK m 6,026 3,986
EUR m 246.5 163.0
Source: Bloomberg, PSE, ATLANTIK FT
HEADLINES ONE-WEEK OUTLOOK
NWR The 1Q earnings season is drawing to an end. Moreover,
- 1Q11 results disappointing on all levels no big macroeconomic data are on the agenda this week.
- Highlights from conference call We therefore expect stagnation or slight decline.
- Acceptance of share offer reaches 98% Markets will watch for further developments on commodity
markets and possible unexpected meetings regarding the
VIG
European debt crisis. S&P's cut in the rating outlook
- No surprise in 1Q11 results
for Italy should be responsible for negative mood in
Pegas Nonwovens particular at the beginning of the week.
- Projection of 1Q11 results
The domestic earnings season will continue on
Erste Group Thursday with the results of Pegas, Orco and AAA
- Shares traded ex-dividend Auto. We expect Pegas to announce a decline in EBITDA
- Bank wants to repay participation capital by end of 5.3% to EUR 8.4m, mainly owing to the price-setting
June mechanism (higher polymer prices will be reflected first in
CEZ costs and then in revenues). Investors will watch for a
- Stress tests on German nuclear power plants commentary on potential acquisitions. We believe the
numbers alone will be neutral but an indication of
KIT Digital
acquisitions could trigger some activity.
- New contract in China
This week will not be very rich in macroeconomic releases.
ECM A report of US durable goods orders will be released on
- 1Q11 results worse on all levels Wednesday (exp. -2.4% from +2.5%) and the 1Q GDP
- Company files its own insolvency petitions revision on Thursday (exp. to be revised up to 2.2% from
- Astin Capital Management filed claim of CZK 1.8%). Last but not least, the University of Michigan
3.1bn Consumer Sentiment Index is due on Friday (expected
stagnation at 72.4 points). In Germany the Ifo Business
Climate Index on Tuesday and the 1Q11 GDP will be
followed.

2. EQUITY MARKET – PRAGUE STOCK EXCHANGE
MARKET NEWS
The week No. 20 was marked by volatile trading. The PX Index closed the week at 1,255 points, down 0.8%. Media
reports were all about commodities again, although the commodity markets got relatively stabilized. We must not forget the
arrest of IMF chief Strauss-Kahn, which could complicate things are regards the voting on another rescue package for
relevant European countries, favoured by Strauss-Kahn, and investors' perception of this development. Last but not least,
the IPO of LinkedIn is worth mentioning as its shares posted an increase of over 100% on their first trading day.
KIG Digital was the star of the week (+1.2%, CZK 207.5) on the PSE, still influenced by earnings results and positive
commentaries of the management on future consolidation. In addition, KITD got a large contract in China. By contrast,
ECM was the most declining stock (-11.1%, CZK 40.2). The insolvency proceeding against the company is in progress.
Further steps, taken with an aim to restructure the company, will probably continue to put pressure on the stock.
Index Close w/w (%) 3M (%) YTD (%) y/y (%) 52W Low 52W High
PX 1,255 -0.8 0.6 2.5 9.9 1,097 1,276
Wien (ATX) 2,768 -1.1 -7.2 -4.7 16.1 2,217 3,001
Warsaw (WIG 20) 2,829 0.2 4.7 2.6 23.7 2,270 2,933
Budapest (BUX) 22,625 -3.1 1.1 6.2 3.0 20,221 24,451
Euro Stoxx50 2,854 -1.4 -5.8 1.7 11.1 2,489 3,068
Dow Jones 12,512 -0.7 2.3 8.1 24.3 9,686 12,811
S&P500 1,333 -0.3 0.4 6.0 24.4 1,023 1,364
Nasdaq 2,803 -0.9 0.0 5.3 27.2 2,092 2,874
REPORTED EARNINGS RESULTS
NWR
The earnings results for 1Q11 reported last Wednesday fell short of market expectations on all levels and we expect a
negative market reaction. Only sales came in as expected by market. Since NWR had already published production
volumes and prices in April, the sales were not surprising. In year-on-year comparison, sales were up 17.1% y/y at EUR
384.8m, boosted by growing prices of coal and coke. The price of coking coal reached EUR 159/t in 1Q11 (+62.2% y/y)
and steam coal was sold at EUR 70/t (+11.0% y/y). The price of coke even surged by 74.6% to EUR 337/t. The negative
factor was the proportion of coking coal and steam coal volumes, when the company produced more steam coal at the
expenses of the coking coal, its main commodity.
Operating costs increased to EUR 335.4m (+10.8% y/y), less in comparison with our projection, as we had calculated with
higher personnel costs. Material and energy costs were up 11.1% y/y at EUR 99m, service expenses up 17.2% y/y at
EUR 90.9m and personnel costs increased by 3.5% y/y to EUR 96m.
EBITDA came in at EUR 81.6m (+42.3% y/y), falling short of market expectations of EUR 48.3m by 11.5% and almost in
line with our projection (+2.4%). EBIT of EUR 37.6m (+110% y/y) was below market expectations by 22.1%. We had
expected EBIT of 33.5m due to higher expected costs. The company generated net income of EUR 3.4m, after a loss of
EUR 15.6m in 1Q10, falling short of expectations of EUR 20.8m by 85.6%. We had expected EUR 7.9m. The notable
difference between the market consensus and the actual figure can be ascribed to the items described above. The
difference compared to our estimate is due to higher-than-expected tax.
The management repeated production and sales goals for 2011.
EUR thousand 1Q11 1Q10 y/y cons. J&T
Sales 384,799 328,563 17.1% 384,300 384,576
EBITDA 81,583 57,324 42.3% 92,200 79,683
EBIT 37,644 17,907 110.2% 48,300 33,534
Net income 3,437 -15,635 n.a. 20,800 7,900
Source: NWR, J&T Banka, market
NWR held a conference call to discuss 1Q11 earnings results. The highlights are as follows:
NWR sees strong demand in the region and expects prices of coal to be at high levels in 3Q11.
The trend of lower volumes of coking coal should reverse in the second half of the year when the company
expects a rise in production volumes, in particular in the fourth quarter. The full-year production target of 11mt

3. EQUITY MARKET – PRAGUE STOCK EXCHANGE
coal (the same volumes of steam and coking coal) remains unchanged. In the subsequent year (2012) the
proportion should change to 60:40 in favour of the coking coal.
The Debiensko project in Poland is underway as expected. Mining should be launched in 2015/2016 (2.5mt), and
it is expected that most (80%) of the coal will be coking coal. More information about the project will be
announced in June.
After its reincorporation in Great Britain, NWR should be included in the FTSE index in June as expected.
As to potential acquisitions, NWR is monitoring mostly Polish and Ukrainian markets. The IPO of JSW, the
largest miner of coking coal in the EU, will be the nearest event.
The management also provided information about the outlook. It is confident that the goals for this year are achievable.
Nothing major was said.
VIG
Last Tuesday Vienna Insurance Group (VIG) published its consolidated earnings results for 1Q 2011, which are in
line with our expectations on all levels. Net profit reached EUR 109m, i.e. 7.8% y/y. Gross written premiums increased
by 2.9% to EUR 6,603m, mostly thanks to growth in the non-life insurance segment. Regarding earnings guidance the
company reiterated that this year it expects pre-tax profit to grow by 10% and written premiums to grow in the low single
digits. Overall, we rate the results as neutral. The company again confirmed the stability of its performance. We consider
the affirmed guidance for this year quite conservative and the company should not have any difficulty beating it.
EUR m 1Q 2011 y/y 1Q 2010 J&T Banka e Market
Gross written premiums 2,603 2.9% 2,531 2,620 2,601
Net earned premiums 2,079 1.5% 2,047 2,097 2,170
Investment income 253 -18.4% 310 265 273
Expenses for claims incurred -1,680 -2.8% -1,728 -1,731 -
Operating expenses -457 2.1% -448 -456 -
Profit before tax 143 7.0% 133 138 139
Net profit* 109 7.8% 101 107 106
Source: VIG, projection of J&T Banka; *after minorities
EXPECTED EARNINGS RESULTS
Pegas Nonwovens
Manufacturer of nonwoven textiles Pegas Nonwovens will report 1Q11 results on Thursday 26 May.
Earnings will be significantly impacted by a major increase in polymer price indices. We expect the higher prices to be
reflected in operating expenses at once while the prices of final production should lag behind. Given the firming of the
koruna against the euro we expect a profit on the financial level.
Total sales should be up 19.2% at EUR 41m compared to the same period a year ago. Sales volumes should stay about
the same but we expect increased product prices.
Operating expenses will be affected by higher prices of polymers, the key raw material used by the company. Their price
grew by about 14% in 1Q11. EBITDA should show a decline of 5.3% y/y to EUR 8.4m. Depreciation charges should be
down in comparison with previous quarters (approx. EUR 4m) at EUR 2.5m as Pegas extended the life-span of
manufacturing assets effective from 1 January 2011, thus reducing depreciation and amortisation costs. That should
boost EBIT, which we expect at EUR 5.9m (+23.3% y/y).
Financial items should have a positive impact on the final result, mainly thanks to the FX effect. Thanks to the
appreciation of the koruna against the euro we expect a gain from the revaluation of the euro-denominated debt (EUR
2.5m). Debt service costs should reach EUR 0.9m. The company is projected to post net income of EUR 6.7m in 1Q11.
The 12.0% y/y decline is due to a considerable increase in currency gains in 1Q10.
Besides the earnings figures, investors will be interested in information about a potential acquisition. The management
is expected to cast more light on that during 2Q11 and it could do so at the time of the earnings release.
The target for full-year EBITDA of 2 – 7% should be confirmed.

4. EQUITY MARKET – PRAGUE STOCK EXCHANGE
IFRS cons. (EUR thousand) J&T e1Q11 y/y 1Q10
Sales 41,010 19.2% 34,399
EBITDA 8,372 -5.3% 8,837
margin 20.4% -5.3pps 25.7%
EBIT 5,872 23.3% 4,763
margin 14.3% 0.5pps 13.8%
Net income 6,729, -12.0% 7,650
Source: Pegas Nonwovens, J&T Banka
COMPANY NEWS
NWR
NWR announced that another 2,769,054 shares accepted the share offer. The total rate of acceptance is 259,549,442
of existing A shares, i.e. more than 98% of the A shares issued. Trading in the new shares commenced last Friday (20
May) in London and Prague and today (23 May) in Warsaw. Note that the offer is related to reincorporation to UK and the
subsequent qualification for the FTSE index. We consider the news neutral.
Erste Group
Erste Group's shares went ex-dividend last Tuesday (EUR 0.7 per share; gross div. yield of 2%).
According to Andreas Treichel (CEO of Erste Group), the bank is aiming to repay EUR 1.2bn in state participation
capital by the end of June. In our view, this step should not significantly compromise the bank’s capitalization. However,
given the fact that Erste has had lower capital adequacy than most competitors in the region, the step may slightly
increase market fears from a future capital increase due to Basel III requirements.
CEZ
German environment minister Norbert Roettgen presented a report on the safety of nuclear power plants. Politicians will
base their decision regarding the future of nuclear energy in Germany on this report and the decision should be
made on 6 June. According to the document, Germany needs to improve security at its nuclear plants against external
flooding and airplane crash. The results of stress tests performed on reactors that had been switched off (8 out of 17)
were less favourable than in the case of newer reactors. According to the minister, the results do not give grounds for an
immediate exit from nuclear industry. In our opinion, market has already priced in that the switched-off reactors will not be
restarted. The question whether Germany will fully exit atomic energy by 2022 as announced remains open.
KIT Digital
The company announced that it had signed a contract with a consortium of Chinese televisions to provide a platform
for distributing video content. More details or the size of the transaction were not released. However, we assume that the
contract is quite large enabling the company to penetrate more the Chinese market.
ECM
ECM REI filed its own bankruptcy petition, according to the company's statement. This comes after the insolvency
petitions filed by Ceska sporitelna and Volksbank on grounds of unpaid obligations of ECM were joined by Glancus
Investments and Conseq. ECM said that reorganization through insolvency proceedings would speed up some
transactions and negotiations with creditors. This step is one of the possibilities presented with the release of 2010
results. Please note that trading in shares of a company in insolvency proceedings may be suspended or terminated by
the Prague Stock Exchange.
ECM REI published 1Q11 earnings results last Wednesday before market close. In comparison with 1Q10, the results
further deteriorated on all levels. The operating loss deepened from EUR 2m to EUR 7.1m and the net loss more than
doubled from EUR -6m to EUR -12.4m. The value of assets further declined compared to the end of 2010 while
obligations of the company rose, and therefore the equity value further fell from EUR -73m to EUR -85m. No commentary
on the ongoing insolvency proceedings was given. We consider the results negative.
IFRS, EUR m 1Q11 y/y 1Q10
Net rental and related income -0.8 - 2.0
Income from sales of investment property 0.0 0% 0.0
Revaluation on investment prop. -1.8 - -0.9
Net operating result -7.1 - -2.0
Net financial result -10.5 - -5.0

5. EQUITY MARKET – PRAGUE STOCK EXCHANGE
Net profit -12.4 - -6.0
Source: ECM REI
Astin Capital Management filed a claim totalling CZK 3.1bn against ECM on Friday. ECM was to pay Astin Capital
Management interest of CZK 116m last October and the principal became due last week. Other creditors include Ceska
sporitelna (CZK 194m), Glancus Investments (CZK 140.8m) and Volksbank (CZK 104.8m). ECM wants to resolve its
indebtedness by restructuring. Last week, ECM joined other creditors and filed an insolvency petition against itself.
MARKET IN FIGURES
Market Volume (CZK m) Change (%) (EUR m) Change (%) (USD m) Change (%)
6,026.1 -23.8 246.5 -23.6 350.8 -21.2
Note: Percentage change relative to the average weekly volume over the past six months
Close w/w 3m y/y 52W Weekly volume
(%) (%) rel. (%)* (%) rel. (%)* Low High CZK m rel. (%)
AAA Auto 25.5 -1.4 1.9 1.2 53.7 39.9 15 28 2 -61
CME 390 0.0 16.4 15.7 -19.9 -27.1 311 575 124 -73
CEZ 947 -1.5 17.6 16.9 6.4 -3.2 736 967 2,327 -27
ECM 40 -10.2 -53.8 -54.1 -81.0 -82.7 37 224 4 1
Erste 824 -0.8 -11.0 -11.6 9.8 0.0 642 965 922 5
Fortuna 117 -0.4 13.9 13.2 n.a. n.a. 84 120 85 -90
KB 4,150 -0.2 -5.0 -5.6 23.9 12.7 3,193 4,600 1,372 -30
KITD 208 2.0 -18.5 -19.0 -11.7 -19.6 163 318 54 194
NWR 282 -0.2 1.8 1.2 31.3 19.5 200 313 11 -99
Orco 230 0.7 14.1 13.4 36.6 24.3 110 252 10 -57
Pegas 446 0.5 0.0 -0.6 3.5 -5.8 410 475 39 16
PMCR 9,277 -1.3 -6.8 -7.3 16.7 6.2 7,913 10,801 47 -98
TEF 416 -0.3 2.8 2.2 1.5 -7.7 369 452 347 -48
Unipetrol 182 -3.0 1.6 0.9 -5.5 -14.0 170 229 56 -98
VIG 961 -2.6 -7.6 -8.2 14.1 3.8 790 1,067 16 -49
Note: *Percentage change relative to the index PX.** Percentage change relative to the average weekly volume over the past six months.
Ratios P/E P/Sales EV/EBITDA EV/ Sales Target LT ST
2010 2011e 2010 2011e 2010 2011e 2010 2011e Price Recomm. Outlook
AAA Auto 13.9 n.a. 0.3 n.a. 8.9 n.a. 0.5 n.a. Not rated
CME 14.4 -12.9 1.9 1.8 23.8 12.8 3.5 3.3 USD 25 Buy Neutral
CEZ 10.9 12.2 2.6 2.5 7.8 7.9 3.4 3.3 CZK 940 Buy Neutral
ECM -0.9 n.a. 1.4 n.a. 2.8 n.a. 1.4 n.a. Not rated
Fortuna 14.2 14.3 3.1 3.0 9.7 9.4 3.1 3.0 CZK 127 Buy Neutral
KITD n.a. n.a. 1.2 n.a. 0.0 n.a. 1.2 n.a. Not rated
NWR 13.8 9.4 1.9 1.6 6.6 4.6 1.9 1.6 CZK 308 Buy Buy
Orco 12.9 n.a. 8.0 n.a. 74.0 n.a. 8.0 n.a. Not rated
Pegas 7.9 6.8 1.4 1.2 4.8 4.0 1.4 1.2 CZK 488 Buy Neutral
PMCR 11.4 10.7 2.3 2.0 7.8 7.4 2.3 2.0 Pending Pending Neutral
TEF 10.6 15.7 2.4 2.5 5.8 6.1 2.4 2.5 CZK 430 Hold Neutral
Unipetrol 31.7 11.2 0.4 0.5 6.3 4.3 0.4 0.5 Pending Pending Pending
Ratios P/E P/BV Target LT ST
2010 2011e 2010 2011e Price Recomm. Outlook
KB 11.8 11.2 2.1 2.0 CZK 4,441 Hold Neutral
Erste 12.5 9.5 0.9 0.9 EUR 34.0 Hold Neutral
VIG 12.6 10.5 1.1 1.0 EUR 46.5 Buy Neutral

6. EQUITY MARKET – BRATISLAVA STOCK EXCHANGE
Weekly volume
Close w/w (%) 3M (%) y/y(%) 52W Low 52W High
(EUR ths)
VUB 81.0 1.3 -11.0 -3.2 65.0 95.0 5
SES Tlmače 14.0 0.0 -3.5 -18.8 13.0 17.5 0
OTP 4.00 0.0 -2.4 33.3 2.01 4.10 0
Biotika 18.9 -10.0 -10.1 107.5 9.1 23.2 0
Slovnaft 45.5 0.0 -2.1 -18.7 40.0 58.3 0
BHP 11.2 0.2 1.0 8.0 10.3 11.2 291
TMR 42.3 0.7 3.2 6.3 39.7 42.5 634
SAX Index 230.59 0.0 -2.1 3.4 201 248.53 931
MARKET COMMENT
In the third week of May trading activity in VUB picked up. The shares found support at EUR 80 and most trades were
executed well above it. After climbing to EUR 85 on
SAX Index
Thursday the stock closed the week at EUR 81, i.e. up 255
1.25% w/w. At that price, the P/E multiple is 7, which is 250
quite attractive.
245
TMR added 0.7% last week, closing at EUR 40.30. BHP
gained 0.2% to EUR 11.18. After a recent decline, 240
Slovnaft's shares are still seeking a new market price and
235
no trade was executed last week. Biotika grew by 10% to
EUR 18.90. 230
The SAX Index closed the week at 230.59 points, flat 225
week-on-week. Traded volumes reached EUR 930
thousand. The most traded stock was TMR, followed by 220
22/04 29/04 6/05 13/05 20/05
BHP and VUB.
EUR TMR - Tatry Mountain Resorts EUR BHP - Best Hotel Properties
11.20
42.6
42.4
11.16
42.2
42.0
11.12
41.8
41.6
11.08
41.4
41.2 11.04
22/04 29/04 6/05 13/05 20/05 22/04 29/04 6/05 13/05 20/05

7. ECONOMY
Indicators Last Figure Period 2009 2010 2011e
GDP (real) %, y/y (real) 2.9 '4Q/10 -4.0 2.2 2.0
Industrial output %, y/y (real) 16.9 '02/11 -13.4 10.5 7.5
CPI %, y/y 1.8 '02/11 1.0 1.5 2.2
Trade balance bn CZK 1.0 '12/10 151.7 124.5 105.2
Current account % of GDP -1.0 '2009 -1.0 -3.3 -1.8
Unemployment % 9.7 '01/11 8.1 9.0 8.1

8. FOREX
CZK/EUR USD Koruna EUR
16.0 23.7
The koruna continued weakening against the euro last
week, moving from 24.4 to a 6-week low of 24.51 on Friday. 16.2
Other regional currencies more or less stagnated, not 24.0
16.4
responding to the released macroeconomic data (PPI, current
account). The increased nervousness on financial market was 16.6
probably the decisive factor. 24.3
16.8
We still expect rather calm and stable trading, and the
koruna could weaken further in the short term (24.6). By the 17.0
24.6
end of the summer the koruna could get stabilized around 17.2 USD
24.2-24.6. The long-term outlook remains unchanged and we EUR
expect to see the Czech currency firm to 23.8 by the end of 17.4 24.9
22/04 29/04 6/05 13/05 20/05
the year.
CZK/USD
The koruna was hovering around 17.20 per USD all week. It stopped weakening in connection with only a minimum
change in CZK/EUR and stabilization on the euro-dollar market.
Higher volatility will probably continue and the dollar could continue correcting its losses (17.80?). In the long term
(months) rather than a clear trend we expect to see higher volatility within CZK 16-20 per USD.
USD/EUR
The euro went through certain consolidation after the previous depreciation and moved from 1.410 to 1.434. However,
at the end of the week nervousness returned to financial markets, fuelled by another cut in Greece's rating by Fitch and a
cut in a rating outlook for Italy by S&P. Euro weakened to 1,415, erasing previous weekly gains.
The continuing technical correction and renewed risk regarding the eurozone debt crisis may continue to put pressure
on the euro. The next important level will be 1.38. Data from German economy due on Tuesday (GDP structure, Ifo index)
may be important.
Exchange Rates Close w/w 3M YTD y/y 52W Forward Forward
(%) (%) (%) (%) Low High 1M 6M
CZK/EUR 24.47 -0.2 -0.4 2.7 5.7 24.0 26.0 24.5 24.4
CZK/USD 17.28 0.1 4.5 9.5 19.9 16.3 21.8 17.3 17.3
CZK/GBP 28.06 -0.2 3.8 4.0 6.0 26.9 31.9 28.1 28.1
USD/EUR 1.416 -0.3 -4.8 -6.1 -11.8 1.19 1.48 1.42 1.41

9. CZK–MONEY AND BOND MARKET
PRIBOR Fixing (%) w/w (bps) 3M (bps) YTD (bps) Y/Y (bps) 52W Low 52W High FRA 3M
2W 0.84 -1 -2 1 -8 0.81 0.92 n.a.
3M 1.22 -1 1 0 -2 1.18 1.25 1.35
6M 1.57 1 0 1 5 1.47 1.58 1.55
1Y 1.84 0 4 4 5 1.75 1.85 n.a.
CZK - Yield curve
CZK - Money Market 5.0
2.00
1.75 4.0
1.50
3.0
1.25
2.0
1.00
1.0
0.75 19/4/2011 19/4/2011
20/5/2011 20/5/2011
0.0
0.50
0 2 4 6 years 8 10 12 14
1W 2W 1M 3M 6M 9M 1Y
Bond Market Volume (CZK m) change (%) (EUR m) change (%) (USD m) change (%)
3,985.9 -60.3 163.0 -60.1 232.0 -58.7
Note: Percentage change relative to the average weekly volume over the past six months
Name Maturity Price w/w Volume YTM w/w Duration
(bps) (CZK m) (%) (bps)
GB 3.55/12 18-Oct-12 102.78 -3 539 1.52 -0.2 1.4
GB 3.70/13 16-Jun-13 103.88 -5 0 1.76 0.5 2.0
GB 3.80/15 11-Apr-15 104.29 0 37 2.62 -0.7 3.7
GB 5.00/19 11-Apr-19 109.20 -5 0 3.63 0.5 6.7
GB 3.75/20 12-Sep-20 99.35 -33 209 3.83 4.2 7.8

10. COMMODITIES
Close w/w (%) 3M (%) YTD (%) y/y (%) 52W Low 52W High
Crude Oil - Brent 112.4 -1.3 10.6 20.7 56.4 69.6 126.7
Crude Oil - WTI 99.5 -0.2 18.0 10.7 46.3 68.0 113.9
Gold 1,512 1.2 10.1 7.7 27.9 1,162 1,564
Electricity 58.6 -1.2 13.2 9.4 15.4 46.6 60.7
Coal 128.3 0.9 9.3 5.3 34.3 95.5 133.6
Aluminium 2,500 -2.6 -0.2 1.9 25.5 1,868 2,797
Copper 9,071 3.2 -9.4 -4.5 37.2 6,101 10,160
Wheat 806.5 15.9 -4.0 2.8 71.7 428 886
Corn 759.5 11.9 10.0 23.3 109.8 325 776
Soybean 1,380 3.2 0.9 1.0 46.2 931 1,451
Commodity markets posted slight gains last week. Major USD/bbl Crude oil & Gold USD/oz.
128 1600
indices rose by 1%, mainly thanks to agricultural
commodities (7% w/w). The dollar stopped firming and 124
stagnated against the euro. Sentiment on stock markets was 1550
negative and markets posted slight losses for a third week in a 120
row. Crude oil stayed at key levels without much effort – 116 1500
WTI (USD 100), Brent (USD 112). Similarly, precious metals
and base metals stagnated on average. Agricultural 112
commodities were driven by grains – wheat (+16% w/w), corn 1450
108
(12%) – supported by unfavourable weather in the USA a Crude oil - Brent
Gold
Europe, which poses a big risk for this year's crops. 104 1400
22/04 29/04 6/05 13/05 20/05
USD/t Copper & Corn US cent/bu
10500 800
USD/t Coal&Electricity EUR/MW
135 65
10000
750
130
9500
700
125 60
9000
650
120 8500
Coal 1Y ARA Copper
Corn
Electricity
115 55 8000 600
22/04 29/04 6/05 13/05 20/05 22/04 29/04 6/05 13/05 20/05

11. LOOKING AHEAD
Date Time Country Indicator/Company Periods eAFT eMarket Previous
23/5/11 10:00 Eurozone Manufact. PMI - - 57.5 58
23/5/11 10:00 Eurozone Service Business Activity Index - - 56.5 56.7
23/5/11 - - Campbell Soup - - USD 0.35 USD 2.40
24/5/11 8:00 Germany GDP Q1/11f - 1.5% q/q 1.5% q/q
24/5/11 8:00 Germany GDP nsa Q1/11f - 5.2% y/y 5.2% y/y
24/5/11 8:00 Germany GDP wda Q1/11f - 4.9% y/y 4.9% y/y
24/5/11 10:00 Germany IFO business confidence 05/11 - 113.7 114.2
24/5/11 16:00 USA New Home Sales 04/11 - 300,000 300,000
24/5/11 - - Applied Materials - - USD 0.37 USD 1.10
24/5/11 - - Medtronic - - USD 0.93 USD 3.30
24/5/11 - - Marsk&Spencer - - - GBP 0.36
25/5/11 10:30 UK GDP Q1/11p - 1.8% y/y 1.8% y/y
25/5/11 14:30 USA Durable Goods Orders 04/11 - -2.5% m/m 2.5% m/m
25/5/11 - CR CEZ: AGM record date - - - -
25/5/11 - - Costco Wholesale - - USD 0.76 USD 3.14
25/5/11 - - Network Appliance - - USD 0.53 USD 1.58
25/5/11 - - Cable & Wireless - - - GBP -0.01
26/5/11 14:30 USA GDP QoQ (Annualized) - - 2.2% 1.8%
26/5/11 - CR AAA Auto: 1Q11 earnings 1Q11 - - -
26/5/11 - CR Pegas: 1Q11 earnings 1Q11 - - -
26/5/11 - CR Orco: 1Q11 earnings 1Q11 - - -
26/5/11 - - Heinz - - USD 0.72 USD 2.97
26/5/11 - - Flughafen Wien - - EUR 0.99 EUR 3.61
26/5/11 - - National Bank Of Greece - - EUR 0.29 EUR 0.60
26/5/11 - - Portugal Telecom - - EUR 0.10 EUR 0.20
26/5/11 - - Raiffeisen Bank - - EUR 1.31 Error 2015
26/5/11 - - Fotex - - - HUF 0.1
27/5/11 9:00 Slovakia PPI 04/11 - - 3.3% y/y
27/5/11 11:00 Eurozone Business Climate Indicator 05/11 - 1.2 1.28
27/5/11 11:00 Eurozone Consumer confidence 05/11f - - -9.7
27/5/11 11:00 Eurozone Economic sentiment index 05/11 - 105.7 106.2
27/5/11 15:55 USA Consumer confidence (Michigan Uni.) 05/11f - 72.4 72.4
27/5/11 - Germany CPI 05/11p - 0.0% m/m 0.2% m/m
27/5/11 - Germany CPI 05/11p - 2.3% y/y 2.4% y/y

12. CONTACTS
J&T ATLANTIK
Trading Trading
Name Contact Name Contact
Michal Semotan +420 221 710 130 David Novy +420 221 710 628
Trading and Sales semotan@jtbank.cz Trading – Czech and Foreign Equities david.novy@atlantik.cz
Michal Znojil +420 221 710 131 Barbora Stieberova +420 221 710 648
Trading and Sales znojil@jtbank.cz Trading – Czech and Foreign Equities barbora.stieberova@atlantik.cz
Michal Stubna +421 259 418 173 Tereza Jaluvkova +420 221 710 606
Trading – Slovak Equities stubna@jtbank.cz Trading – Czech and Foreign Equities tereza.jaluvkova@atlantik.cz
Tomas Brychta +420 221 710 238 Marek Kijevsky +420 221 710 669
Money Market, Forex brychta@jtbank.cz Trading – Foreign Equities marek.kijevsky@atlantik.cz
Petr Vodicka +420 221 710 155 Miroslav Nejezchleba +420 221 710 633
Fixed Income vodicka@jtbank.cz Trading – Foreign Equities miroslav.nejezchleba@atlantik.cz
Portfolio Management – Client Service Sales and Client Service
Name Contact Name Contact
Roman Hajda +420 221 710 224 Dalibor Hampejs +420 545 423 448
Chief Investment Officer hajda@jtbank.cz Mutual Funds dalibor.hampejs@atlantik.cz
Petr Holinsky +420 221 710 429 Milerská Zuzana +420 800 484 484
Portfolio Manager holinsky@jtbank.cz Client Service atlantik@atlantik.cz
Portfolio Management Research
Name Contact Name Contact
Martin Kujal +420 221 710 698 Milan Vanicek +420 221 710 607
Chief Investment Officer; bonds martin.kujal@atlantik.cz Strategy, pharma, telecom milan.vanicek@atlantik.cz
Marek Janecka +420 221 710 699 Milan Lavicka +420 221 710 614
Portfolio Manager; equity marek.janecka@atlantik.cz Banking, financials milan.lavicka@atlantik.cz
Miroslav Padera +420 221 710 623 Bohumil Trampota +420 221 710 657
Portfolio Manager; DPM miroslav.padera @atlantik.cz Utilites, oil&gas bohumil.trampota@atlantik.cz
Pavel Ryska +420 221 710 658
Media, real estate pavel.ryska@atlantik.cz
Petr Sklenar +420 221 710 619
Macroeconomics, fixed income petr.sklenar@atlantik.cz
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13. DISCLAIMER
ATLANTIK finanční trhy, a.s. (hereinafter only “ATLANTIK FT”) is a licensed securities brokerage and a member of the Prague Stock Exchange (Burza
cenných papírů Praha, a.s.) authorized to provide investment services as outlined in Act No. 256/2004 Sb. on Business Activities on the Capital Market.
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services as outlined in Act No. 256/2004 Sb. on Business Activities on the Capital Market. ATLANTIK FT and the Bank prepare and disseminate
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115 03 Prague 1 – http://www.cnb.cz/.
ATLANTIK FT and the Bank disseminate recommendations pursuant to Directive No. 114/2006 Sb, "Impartial Presentation of Investment
Recommendations", and this document contains some important information and notice related to the creation and dissemination of investment
recommendations.
ATLANTIK FT and the Bank issue investment recommendations created by the employees of ATLANTIK FT and/or the Bank (hereinafter only
“Analysts”). Analysts who create investment recommendations bear full responsibility for the objectivity of such recommendations.
Levels of investment recommendations used
ATLANTIK FT and the Bank use the following levels of investment recommendations:
BUY – It is anticipated that the percentage difference between the one-year target price of the share (determined by one of the valuation
methods stated below) and the current market price exceeds the minimum theoretical required return for the respective share. This required
return is calculated as the sum of earnings from a risk-free asset (Czech government bonds with the longest term to maturity) and the product
of beta coefficient and a risk premium (determined individually for each company and derived from the risk premium for the Czech market).
HOLD – It is anticipated that the percentage difference between the one-year target price of the share (determined by one of the valuation
methods stated below) and the current market price is less than the minimum theoretical required return for the respective share but, at the
same time, exceeds the return from a risk-free asset.
SELL – It is anticipated that the percentage difference between the one-year target price of the share (determined by one of the valuation
methods stated below) and the current market price is less than the return from a risk-free asset.
Valuation methods
To valuate companies and investment projects ATLANTIK FT and the Bank use first of all a method of discounted cash flow (FCFE or DDM). A method
of relative comparison is an integral part of every valuation, but it serves more as a corroborative test for the discounting method due to the following
reasons: (i) differences in accounting standards, (ii) differences in the sizes of companies, (iii) information availability, (iv) impacts of acquisitions and
subsidiaries on balance sheet structures, (v) differences in dividend strategies, and (vi) differences in expectations of future profit margins. If the
fundamental valuation is in principle consistent with the range of values determined on the basis of the relative comparison, this implies that the
projections of cash flows and other key assumptions of the discount model are correct (especially the discount factor, growth rate for the so-called
“infinite period,” capital structure, etc). In the reverse case, it is necessary to identify factors which cause principal differences between the findings of
the two valuation methods.
Measures preventing conflicts of interest in association with investment instruments:
The remuneration to persons who participate in producing investment recommendations depends in particular on the quality of the work performed, the
results achieved and the company’s overall profit. Those who participate in producing the investment recommendations have neither financial nor other
motivations to issue investment recommendations of a particular level or direction. In complying with the rules for prudently providing investment
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the company’s internal regulations which prevent conflicts of interest in association with investment instruments contained in the investment
recommendations disseminated by ATLANTIK FT and the Bank.
Additional notice
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analyses and recommendations issued by ATLANTIK FT and the Bank and/or related parties have been prepared in accordance with the rules of
conduct and internal regulations for managing conflicts of interest associated with investment recommendations.
An overview of changes in the level for an investment instrument in regard to which ATLANTIK FT and the Bank have issued an investment
recommendation and its price targets during the past 12 months are published and accessible at http://www.atlantik.cz/ and/or http://www.jtbank.cz.
The issuer was not acquainted with the recommendation prior to its issuance and therefore the recommendation has not been modified or adjusted in
any way at the issuer´s request.
It is always the Client’s responsibility to make the final investment decisions and the Client bears full responsibility for them.
Although investment recommendations of ATLANTIK FT and the Bank are prepared by Analysts in good faith, in a professional and a fair manner and
with due care, ATLANTIK FT and/or the Bank cannot accept responsibility and cannot guarantee that the information contained therein is complete or
accurate, except for the information concerning ATLANTIK FT and the Bank.
The investment recommendations express the opinions of Analysts as at the date of their publication and may be changed without prior notice.
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to purchase or sell any investment instruments. The individual investment instruments or strategies stated in the investment recommendations do not
have to be suitable for every investor. The opinions and recommendations stated therein do not take into account the situation of individual clients, their
financial positions, objectives or needs. The investment recommendations should serve those investors who are anticipated to make their own
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make their own decisions as to the expediency of investments made in any investment instruments by appropriately considering the price, possible
threats and risks, along with their own investment strategies and financial situation. The value or price of any investment may change. Therefore,
investors may receive funds in return that are lower than their original investments.
Successful investments made in the past do not guarantee favourable results in the future.
2011 © ATLANTIK finanční trhy, a.s., J & T BANKA, a.s.