We initiate our coverage of REVOIL SA with a BUY recommendation. Ourestimated fair value is €1,8 per share. Our two-stage DCF model yields atarget market value of €40,2M and implies an upside potential of 75% fromcurrent price levels. Although the retail oil sector is currently under stressdue to heavy taxation, Revoil seems able to increase its market share. Thestock can be a defensive one in a risky macroeconomic environment forGreece and despite its relatively low marketability can offer significantprofits and a high dividend yield.

AT A GLANCE:REVOIL is a 100% Greek-owned company engaged in the retail sales ofpetroleum products.There are currently 421 filling stations with the Revoil brand from 410a year ago. Market share is currently at 6.5% while there is a target for8% for 2011 and 500 filling stations for 2012.Apart from the sales of petrol and oils it also offers storage services forBP,EKO, Jetoil , Motor Oil etc.The Greek retail market is fragmented. The margins are low and thereis strong competition but the market share of Revoil is graduallyincreasing.Improvement in the brand awareness of Revoil.Investments of the previous years is depicted in the increased volumeof sales.The company’s expansion focuses on more efficient filling stationsinstead of inefficient stations with low earnings. Entry to Cretan marketis considered a bet for the company.Revoil’s Group also includes Revoil Constructions SA which is currentlyinactive.

FY 2009 RESULTS: IMPRESSIVE IMPROVEMENTSmall increase in sales by 1.6% in comparison to FY 2008. Increase in grossmargin which reached the levels of 2007.The increase in quantities was much higher but it is not depicted in salessince the price of petrol decreased substantially in 2009. The volume ofsales in liters increased by 17% from 708,4M lt to 828,6M lt whereas thechange in the Greek market is insignificant.Gross margin increased to 4.3% This margin is not seriously affected byfluctuations in the price of crude oil. The company is able to adjust the priceupwards when there is an increase in the price of crude oil and vice versa.Increase in volume sales of heating oil by 23,2% mainly due to theOikoplus, the new suggestion of Revoil for houses. Increase in sales of lubricants where the margins remain high.Increase in EBITDA by 33% and in EATAM by 109%.Marginal increase in domestic sales while Sales in Bulgaria increased to€10,6Μ.Increase in Net Cash Position after the paying off of some debt. Debt-toEquity ratio currently at low levels.Liquidity ratio at 1 and high dividend yield (6.9%).Taxation in motor fuels will have a positive effect in sales in Euros due tothe substantial increase in retail price but may affect negatively the grossmargin and the volume of sales.

MERIT Securities S.A., Research & Analysis Department 38 Vasileos Konstantinou str., 11635, Tel: 210.36 71 800, Fax: 210.36 7 1 830, e-mail: analysis@merit.gr

Emmanuel J. Varsos ejv@merit.gr, Dionysios J. Leftakis djl@merit.gr

Evagelos K. Kalogiropoulos vkk@merit.gr, Thodoris N. Stathis tns@merit.gr, Nikolaos V. Christodoulou nvc@merit.gr

MERIT

SECURITIES

REVOIL SA

REV GA /REVr.AT

Current Price (26/3):1,03

Target Price: 1,8

Upside potential:75%

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PRICE & VOLUME vs ATHEX INDEX

Volume REVOIL SA ATHEX INDEX

€ M 2008 A 2009 A 2010 F 2011 F

SALES 572,0 581,1 662,4 715,4

EBITDA 5,8 7,8 7,9 8,9

EATAM 1,46 3,04 3,55 4,34

FINANCIAL DATA

COMPANY DESCRIPTION

200d Mov.Avrg. Volume (#): 12.346

%Price Change since 31/12/2009:8.4%

Institutional Investors and Free float :27.78%

Major Shareholders: 72,22%

52 week High (ADJUSTED) :1,2 (28/9/09)

52 Week Low :0,54(9/12/2009)

WACC: 10,51%

5-year CAGR of Turnover: 11,65%

Perpetuity after 2014:0.5%

5-year CAGR of EBT: 19,00%

Effective Tax Rate09: 29,75%

Risk Free Interest Rate (Rf): 4,50%

Revoil SA operates petroleum and petrochemical businesses in

Greece. The Company trades oil,fuels,lubricants and chemicals.

200d Mov.Avrg Price:0,98

VALUATION (Working Hypotheses)

Capitalization (€ M): 22,95

SHARE DATA

# Shares: 22.280.000 (Common Registered)

MERIT Securities S.A., Research & Analysis Department 2-4 Sina str., 106 72, Tel: 36 71 800, Fax: 36 71 830, e-mail: analysis@merit.gr

Emmanuel J. Varsos ejv@merit.gr

Kostas N. Glykas kng@merit.gr, Marios V. Theofanopoulos mvt@merit.gr, Venetia A. Karapanou vak@merit.gr, Mihail I. Fragkopoulos mif@merit.gr,Irene E. Kagianni iek@merit.gr

Industry:Retail Oil Trade

Investment Opinion: BUY (5/5)

March 26, 2010

Cap: € 22,9

Cap: € 40,2

Potential: 75,23%

Price: € 1,03

Target: € 1,80

REVOIL GA

MERIT Securities S.A., Research & Analysis Department 2-4 Sina str., 106 72, Tel: 36 71 800, Fax: 36 71 830, e-mail: analysis@merit.gr

Emmanuel J. Varsos ejv@merit.gr

Kostas N. Glykas kng@merit.gr, Marios V. Theofanopoulos mvt@merit.gr, Venetia A. Karapanou vak@merit.gr, Mihail I. Fragkopoulos mif@merit.gr,Irene E. Kagianni iek@merit.gr

2007 A 2008 A 2009 A 2010 F 2011 F 2012 F

% 8,73% 28,44% 1,59% 14,00% 8,00% 8,00%

% -2,19% -7,30% 33,63% 1,17% 13,12% 4,50%

% -14,72% -21,43% 104,08% 7,96% 20,42% 14,49%

% -14,46% -21,83% 108,91% 16,81% 22,00% 15,97%

Total Τurnover

EBITDA

EBT

EATAM

Y-o-Y changesanalysis@merit.gr

mif@merit.gr,Irene E. Kagianni iek@merit.gr

SWOT ANALYSIS

FUTURE TARGETSStrengthsoMargins not affected by the increase in crude oil’s price.oCompetitive price policy.o Filling stations network expands throughout all the provinces of Greece.o Positive net cash position.oAdvantageous position, size and technology of the storage facilities in Chios and Kavala.

WeaknessesoThe company is not diversified.o Low marketability.

OpportunitiesoIncrease in market share after the exit of big multinationals. oEntry in the Cretan market.oIncrease of the company’s share in lubricants where the margins are higher.oOpportunities for development in the Bulgarian market and in other Balkan countries.

ThreatsoStrong competition.oTaxation may lead to lower consumption of motor fuels.o Macroeconomic environment may deteriorate.

INVESTMENT RISKS

-LIQUIDITY RISK: Liquidity risk refers to the probability that the group will not be able to pay for itsliabilities and especially its suppliers and its debt. Revoil’s net cash position is rather high.-INTEREST RATE RISK: This risk is moderate because of the relatively low debt. However, the risk of aviolent increase in EURIBOR is still low and the company’s new loan was taken at a currently relatively lowrate.-CREDIT RISK: Low risk because of a high dispersion of its customers. The company makes provisions fordoubtful accounts when it is necessary.-CURRENCY RISK: Insignificant risk.-WEATHER RISK: Weather affects sales of heating oil.-PRICE RISK: The company is protected from a violent increase in the price of crude oil. The only risk isrelated to the value of inventory.

SHAREHOLDER’S STRUCTURE

MERIT

SECURITIES

2/13

Source: Bloomberg, The Company

ROUSSOS EVANGELOS

ROUSSOS GEORGIOS

ROUSSOS IOANNIS

FREE FLOAT

ROUSSOS EVANGELOS 36%

ROUSSOS GEORGIOS 19,75%

ROUSSOS IOANNIS 14,22%

FREE FLOAT 27,78%

GROUP’S PROFILE-HISTORY

REVOIL was founded in 1982, its main area of activity being the sale of petroleum products. The company’s keyasset as it entered this sector was its liquid fuel storage facility on the island of Chios.

The year 1995 was a milestone in the company’s development; it was in this year that it was purchased by itscurrent shareholders. Up until 1995 most of the company’s revenues came from the provision of services,especially the storage of liquid fuels, owned by other companies, at its plant on the island of Chios. But when itwas taken over in May 1995 the new shareholders were determined to boost the company’s profile in the sale ofpetroleum products by developing a network of gas stations, increasing market share, expanding and modernizingthe liquid fuel storage and distribution facilities on Chios, reorganizing and modernizing the entire managementstructure of the company and, finally, improving its financial results. The ‘aggressive’ policy of wooing new servicestations – in the fiercely competitive petroleum products sector – proved highly effective. Since May 1995 thecompany has built up a broad network of 421 service stations, spread right across Greece, all displaying theREVOIL colors and brand names.

In 1996 the company decided to expand and modernize its facilities on Chios and proceeded to purchase landcovering about 3,500 sq. m. The project was completed by the end of 1997 at a cost of 2,934,700 Euro (1 billiondrachmas). It involved the construction of six new liquid fuel storage tanks, a liquid fuel pipeline, contemporarybuildings to house management services, a fuel pumping complex, firefighting facilities, a jetty and state-of-the-artelectronic tanker-loading systems. Up until 2001 the company had twelve liquid fuel storage tanks at the abovefacilities, with a capacity of 6,080 cubic meters. As a sign of its environmental sensitivity, and in line with measuresrequired by the European Union, it also installed a bottom-loading system to avoid any leaking of gases and vaporsinto the atmosphere

In 1997 the company’s expanding business led to the purchase of about 40,000 sq. m. of land at Nea Karvali,Kavala, for the construction of new storage and distribution facilities. This is a location regarded as being ofconsiderable strategic importance, with excellent prospects for growth. Work began on the new facilities inAugust 1999 and was completed in September 2000, at a cost of about 5,869,400 Euro (2 billion DRM). Theproject involved construction of ten storage tanks with a total capacity of 9,500 cubic meters, laying of supply linesboth above ground and under the sea, construction of contemporary buildings to house management services,the installation of a fuel pumping system, firefighting services and state-of-the-art electronic loading systems. Thisfacility, too, is fully automated, using bottom loading procedures, and fully compliant with EU environmentalprotection specifications.

In December 2000 the REVOIL head office relocated to new company-owned premises in Vari, Attica, which houseall the administrative services. The new offices were built at a cost of 586,900 Euro (200M drachmas). Thecompany also received ISO 14001 environmental management certification for these new premises.In recent years the company has been gradually reorganizing its management structure, laying special emphasison the ongoing training of staff, the introduction of new technologies and the computerization of all operations.The result has been a new and flexible organizational structure, with better communication both vertically andhorizontally, and a new emphasis on team work.

In May 2002 an expansion plan was initiated for the Nea Karvali facility, with the construction of 7 storage tankswith a capacity of 27,000 cubic meters.

In October 2003 the expansion work was completed, increasing total storage capacity to 35,900 cubic meters. Thecompany management intends to seek ISO 14001 environmental management certification for this facility, too.The company’s Chios facility, expanded and modernized, now has 12 storage tanks with a capacity of 7,048 cubicmeters, a contemporary jetty and anchorage for unloading ships and an environmentally friendly system of tankerloading which ensures no petrol fumes are released into the atmosphere.

In 2004 the company entered the Greek Stock Exchange market.

In 2005 began the collaboration with National Technical University of Athens for quality controls.

In 2006 the company was awarded the certification ISO 14001 for the Kavala premises.

In 2007 the market share of Revoil exceeds 5% for the first time.

In 2008 are implemented for the first time in Greece quantity controls in cooperation with National TechnicalUniversity of Athens.

In 2009 Revoil doubled its earnings and decreased its loans substantially and the number of its filling stationsincreased to 423.MERIT

SECURITIES

3/13

Source: The Company

PORTFOLIO OF PRODUCTS

Motor fuels: Unleaded Petrol LRP, Unleaded Petrol of 95 and 100 Octanes and Lead Replacement petrol.Transportation oil: REVOIL has launched Dieselmax which combines efficiency, economy with environmentalcare.Heating oil: Revoil’s suggestion for heating oil is Oikoplus (Smart Heating) which combines increase in efficiency,energy saving , decrease in transmission of filth.Lubricants: The company has recently launched ‘’Revolution”, a new series of lubricants which is designed tocover the specs of the big car manufacturers and of the international organizations. Thus they are able to provideefficient lubrication and protection of the machines and the mechanisms in which they are used.

4/13

MERIT

SECURITIES

Source: The Company

FILLING STATION NETWORK DISTRIBUTION

AREA STATIONS PERCENTAGE

ATTICA 66 15,68%

MACEDONIA 97 23,04%

PELOPONNESE 82 19,48%

STEREA ELLADA 75 17,81%

THESSALIA 44 10,45%

AEGEAN ISLANDS 11 2,61%

EPIRUS 17 4,04%

THRACE 23 5,46%

IONIAN ISLANDS 6 1,43%

Source: The Company

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FIL.STATIONS

FIL.STATIONS

SECTOR ANALYSIS

Source: Merit Research, Icap.

5/13

MERIT

SECURITIES

Domestic Production of Crude.Production of crude oil in Greece is extremely limited. The Prinos reserves at Kavala cover less than 1% of domesticdemand and consequently nearly all of the country’s needs in crude oil is covered by imports.

Structure of the Domestic Market.Once processed in domestic refining units, crude oil products are exported or sold in the domestic market. With theexception of a small number of Big End Customers and the Armed Forces for which product delivery is done directlyfrom the premises of the domestic refineries, the distribution of oil products in the domestic market is carried outexclusively through the fuel trading companies which deliver the products to the gas outlets, the industry, thehouseholds etc.The domestic market consists of four refineries (3 owned by ELPE and 1 by Motor Oil) and around 20retail oil companies. The competition is great since there is 1 filling station for 1400 residents while the average ofthe EU is 1 filling station for 3800 residents.

Recent Developments in the sector and Revoil’s position.Great changes have recently taken place in the Greek retail oil market. The Greek retail oil market is no longerconsidered attractive by big multinationals which have gradually abandoned the Greek market in the recent past(Mobil in 1998, Total in 1999, Texaco in 2000, BP and Shell in 2009). Lower prices and lower operational costs havelead to an increase in the market share of the Greek companies.Each of the two big Greek companies (ELPE and Motor Οil) own 2 brands and have the lion’s share in the Greekmarket. However, the medium and small size Greek companies benefited from the gradual exit of the bigmultinationals because some filling station owners were required to change brand by the competition committeedue to overlapping. Around 300-400 filling stations from the total of 8200 of Greece are likely to move to anotherbrand. The difficult economic background of the sector also lead two small companies to abandon the market.The current market size exceeds 10M metric tons and €14B (2008 estimations). In 2009 a decrease in total sales in €took place because of the drop in the price of fuels despite the increase in volumes of sales while in 2010 the newtaxation and the increased price of oil in the global markets will probably lead to an increase in sales in € and adecrease in volumes. Revoil’s current market share is 6,5% and is 8th among the companies of the sector in Greece.This is a significant improvement in comparison to the 4,2% of 2005. The company’s gross margin is a bit lower thanthe sector’s (3,5% versus 4,7% for 2008) but it is able to offer competitive prices which is a factor that enhances thevolume of sales. Nevertheless, Revoil’s net margin is higher than the sector. 2008 was a bad year for the profitabilityof the sector with negative EATAM of €2,5M versus EATAM of €100M in 2007. The first results for 2009 indicate thatthere was an increase in the profitability of the sector during the past year accompanied by higher gross margin.

MARKET SHARES IN THE FIRST 8 MONTHS OF 2009

SALES AND EARNINGS OF 2008 IN €

*El Petrol closed down in 2009.

COMPANY SALES IN M € EBT IN M €

1 EKO 2285,94 2,32

2 SHELL 1856,72 -14

3 BP 1397,52 14,78

4 JETOIL 1281,05 2,23

5 AEGEAN 1127,31 1,5

6 AVIN 1019,05 2,53

7 ELINOIL 743,92 1,74

8 REVOIL 571,99 2,12

9 ETEKA 533,34 0,72

10 CYCLON 399,24 3,67

11 SILK OIL 348,76 0,91

12 EL PETROL* 219,82

13 KAOIL 206,96 0,09

14 DRACOIL 204,31 -1,98

15 SUNOIL 123,88 -3,18

ΜΕΡΙΔΙΑ (%) ΣΥΝΟΛΟΥ

ΚΑΥΣΙΜΩΝ 8MHNO

2008 - 2009 2008 2009 09/08 2008 2009 09/08 2008 2009 09/08

EKO - ELDA 16,8 15,5 -1,3 37,3 28,9 -8,3 17,6 15,9 -1,7

SHELL 13,3 13,8 0,5 7,1 8,8 1,7 13,0 13,7 0,6

BP 14,5 12,8 -1,6 3,4 6,5 3,1 14,0 12,6 -1,4

JET OIL 8,1 8,4 0,3 10,5 11,1 0,6 8,2 8,5 0,3

AVIN 8,5 8,2 -0,3 18,0 17,5 -0,6 8,9 8,4 -0,4

AIGAIO 8,0 8,6 0,6 0,5 0,0 -0,5 7,7 8,3 0,6

ΕΛΙΝΟΙΛ 6,4 6,5 0,1 15,5 19,1 3,6 6,7 6,9 0,1

REVOIL 5,2 6,3 1,1 0,7 1,0 0,2 5,0 6,1 1,1

ETEKA 4,1 4,6 0,5 0,5 0,0 -0,5 4,0 4,4 0,5

SILK OIL 3,2 3,6 0,4 4,1 3,8 -0,2 3,2 3,6 0,4

CYCLON 2,5 3,3 0,8 0,2 0,4 0,1 2,4 3,2 0,8

DRACOIL 2,0 2,6 0,6 0,6 0,8 0,2 1,9 2,5 0,6

KAOIL 2,0 2,1 0,1 0,0 0,0 0,0 1,9 2,1 0,1

GALLON-OIL 0,6 1,2 0,7 0,0 1,0 1,0 0,5 1,2 0,7

KMOIL 0,8 0,8 -0,1 0,1 0,3 0,2 0,8 0,7 -0,1

ARGO 0,6 0,6 0,0 0,0 0,0 0,0 0,6 0,6 0,0

SUNOIL 1,1 0,4 -0,7 0,0 0,0 0,0 1,1 0,4 -0,7

MEDOIL 0,3 0,3 -0,0 0,0 0,1 0,1 0,3 0,3 0,0

ΧΡΥΣΟΙΛ 0,0 0,2 0,2 0,0 0,6 0,6 0,0 0,2 0,2

ELPETROL 2,0 0,2 -1,9 1,0 0,1 -0,9 2,0 0,2 -1,8

BITOUMINA 0,1 0,1 0,0 0,5 0,1 -0,4 0,1 0,1 0,0

ΣΥΝΟΛΟ 100,0 100,0 0,0 100 100 0,0% 100 100 0,0%

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IL

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MARKET SHARE (8-MONTH OF 2009)

MARKET SHARE (8-MONTH OF 2009)

6/13

MERIT

SECURITIES

SALES IN METRIC TONS

Source: The company, Seepe

PEER GROUP ANALYSIS

Direct peers of Revoil are the Greek companies Elinoil and Cyclon and the Cypriot Petrolina. We also include somebig multinational companies whose businesses cover the entire oil chain (refineries, crude oil production,transportation, marketing, retail etc. Revoil’s current P/E ratio (2009 earnings) is 7,5 which is much lower (48.1%)than the weighted average P/E of the peer companies whose high value (14,46) depicts the difficult year that thepetroleum industry experienced during 2009.

Source: Bloomberg consensus estimations

BRAND QUANTITY IN M.T. MARKET SHARE QUANTITY IN M.T. MARKET SHARE QUANTITY IN M.T. MARKET SHARE %

2007 2008

1 EKO 1762,12 17,00% 1686,13 16,51% 838,13 15,45

2 BP 1622,3 15,65% 1443,18 14,13% 692,43 12,76

3 SHELL 1469,27 14,18% 1361,61 13,33% 746,33 13,75

4 AEGEAN 825,81 7,97% 840,48 8,23% 469,27 8,65

5 AVIN 850,39 8,21% 834,07 8,17% 443,7 8,18

6 JET OIL 772,53 7,45% 811,19 7,94% 443,38 8,17

7 ELINOIL 617,93 5,96% 644,15 6,31% 347,38 6,4

8 REVOIL 527,16 5,09% 566,98 5,55% 342,7 6,32

9 ETEKA 396,63 3,83% 432,99 4,24% 248,26 4,58

10 SILK OIL 329,59 3,18% 338,75 3,32% 199,95 3,68

11 CYCLON 278,99 2,69% 278,99 2,73% 176,56 3,25

12 DRACOIL 217,32 2,10% 217,33 2,13% 146,18 2,69

13 KAOIL 214,52 2,07% 214,53 2,10% 121,98 2,25

14 EL PETROL 179,85 1,74% 179,85 1,76% 11 0,2

15 SUN OIL 126,66 1,22% 126,66 1,24% 28,11 0,52

16 OTHERS 238,04 2,30% 238,04 2,33% 170,74 3,15

2009 (6 months)

COMPANY COUNTRY MARKET CAP IN 12/3 in €M P/E

ELINOIL GREECE 49,1 12,4

CYCLON GREECE 18,0 32,1

PETROLINA CYPRUS 46,4 6,02

STATOIL NORWAY 54590,0 23,9

NESTE FINLAND 3181,0 14,37

LOTOS POLAND 978,8 4,19

ORLEN POLAND 3972,3 11,81

GALP ENERGIA PORTUGAL 10386,0 29,82

ENI ITALY 70294,0 14,04

ELPE GREECE 2655,0 15,2

MOH GREECE 1170,0 13,25

NORTHERN PET. NETHERLANDS 109964,8 11,64

TOTAL FRANCE 100970,0 11,34

SHELL UK 130462,5 14,31

BP UK 128284,5 10,61

EXXON MOBIL US 230877,3 16,76

REPSOL SPAIN 21938,0 14,01

FUELS

Revoil offers a complete series of motor fuels and heating oil:MERIT

SECURITIES

7/13

Motor Fuels: Revoil distributes Unleaded Petrol LRP (Lead Replacement Petrol) and Unleaded Petrol of 95and 100 Octanes. Sales of petrol increased moderately by 4.84% during 2009 and now constitute the 45% oftotal sales versus 43% for 2008.

Transportation oil. Revoil has launched Dieselmax which combines efficiency and economy withenvironmental care. More specifically, provides a combination of ingredients such as anti-corrosion, anti-oxidant and anti-foam .-Increase in combustion efficiency, improvement of inflammation quality and better cold start.-Decrease in petrol consumption up to 7%, increase in engine life, significant decrease in maintenance costand better check during the filling procedure.-Drastic decrease in atmospheric pollution, incombustible particles, smokes and in engine noise by 2db.Dieselmax also participates in the program of checks of National Technical University of Athens in order toguarantee the quality.Sales of transportation oil decreased by 18% in 2009 and now constitute only the 24,5% of total sales whereasthe margin increased substantially.

Heating oil. Revoil’s suggestion for heating oil is Oikoplus (Smart Heating) which combines increase inefficiency, energy saving, decrease in air pollution and better check during the tank filling. It is therefore themost modern offer for a perfect combustion. The new product of Revoil in the heating oil category was themain reason for the significant increase in sales of this category for 2009 (19%).Heating oil sales currentlyconstitute 30% of total Revoil’s sales.

The gross margins of these products are not seriously affected by the volatility in the price of crude oil whichhas been recently very intense since the margin is steady in Euros and not as a percentage. They are likely tobe negatively affected by the new taxation that has been introduced during the first three months of 2010 bythe government. The average price of unleaded petrol increased from 1,1 in the beginning of 2010 to 1,43currently while the average price of diesel increased from 1,06 to 1,21 per lt. Sales in Euros will be positivelyaffected by taxation despite a potential decrease in consumer’s purchase power and therefore a decrease insales, expressed in volumes. The fact that the average crude oil price is expected to be higher in 2010 than2009 (62,1) will also positively affect sales in €. In the first 70 days of 2010 average price of crude oil is $77,75.According to Bloomberg consensus estimations the average price of crude oil will be increasing till 2012. Thecompany’s prediction for increase in volume of sales is moderate, at 8% for the next three years.

AVERAGE MONTHLY PRICE OF CRUDE OIL IN USD

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140,00

Source :Bloomberg

ESTIMATION FOR FUTURE PRICE OF CRUDE OIL

2010 2011 2012 2013

78 87 96 90

Source :Bloomberg

LUBRICANTSMERIT

SECURITIES

8/13

The company has recently launched ‘’Revolution”,a new series of lubricants which is designed to cover the specsof the big car manufacturers and of the international organizations. Thus they are able to provide efficientlubrication and protection of the machines and the mechanisms in which they are used. The lubricants can becategorized as follows:-Gas Engine Lubricants: Revolution Synthesis, Revolution Formula Syn etc.- Scooter and Motorbikes Lubricants: Revolution Moto 4 Syn, Moto 4 Plus ,Outboard etc.-Diesel Engines Lubricants: Diesel Ultra Syn, Extra SAE, Diesel Mac etc.-Tractors Lubricants: Agro Trans 9, Agro S.T.O.U.-Differential Gear Lubricants-Valvolines: Synthetic Gear, Super Gear etc.-Automatic gearbox Lubricants: ATF 2 and 3, Transmission oil .-Greases: Extralab Grease, Lithium Grease, Cotton Picker Grease.-Industry Lubricants: Circulation System Oil, Hydraulic Oil, turbine oil etc:-Other Products: Antifreeze Fluid, Radiator Fluid, Brake Fluid, Windscreen cleaner ,Battery Fluid etc.Sales of lubricants increased in 2009 by 18% enhanced by the launching of ‘’Revolution” series while the grossmargin of lubricants sales remained high at 40.5%. Sales of lubricants are expected to increase further in 2010enhanced by the agreement with Exxon Mobil for the distribution of the lubricant series Mobil 1.

2009 2008

DOMESTIC SALES 570,45 569,6

SALES ABROAD 10,63 2,39

GEOGRAPHICAL SEGMENTATION

TABLE OF SALES PER PRODUCT CATEGORY

Source: The Company

PRODUCT SEGMENTATION

Revoil is also active in the Bulgarian market. Revoil does not own any filling stations in Bulgaria for themoment but collaborates with local companies that import fuels from abroad and distribute them in the fillingstation network.

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SALES GROSS PROFIT MARGIN SALES GROSS PROFIT MARGIN SALES GROSS PROFIT MARGIN SALES GROSS PROFIT MARGIN SALES GROSS PROFIT MARGIN

MOTOR FUELS 153,1 5,87 3,83% 191,78 7,19 3,75% 210,97 7,6 3,60% 247,87 8,36 3,37% 259,87 10,06 3,87%

TRANSPORTATION OIL 84,02 3,96 4,71% 108,53 4,85 4,47% 109,28 4,98 4,56% 147,65 4,41 2,99% 175,62 6,28 3,58%

HEATING OIL 70,78 3,17 4,48% 106,46 4,26 4% 121,85 4,94 4,05% 173,39 5,9 3,40% 142,18 6,3 4,49%

LUBRICANTS 0,81 0,27 33,33% 1,17 0,42 35,90% 1,19 0,44 36,97% 1,52 0,59 38,82% 1,8 0,73 40,56%

20092005 2006 2007 2008

VALUATION

We make explicit estimates about the revenues that Revoil is expected to generate over the next 5 years. Weinitiate the coverage of Revoil with a BUY recommendation since our Discounted Cash Flows Model derives a targetprice of €1,8 per share, revealing an upside of 75% from the current price level. The long term growth rate isestimated at 0.5%. We estimate beta at 1,1, assume a long-term risk free rate of 4.5% and expect the debt portionto decline finally to only 3% of total capital structure in order to derive a long term WACC of 10.5%. The enterprisevalue of the group according to our estimates is €37M. The net value of the group after the subtraction of the netdebt and the minorities rights becomes €40.2M. The group’s stock price is currently around its 200 day movingaverage.The following tables present the calculation of the FCFF we discount in our model for the next five years, thecalculation of the target price per share and a sensitivity analysis illustrating how the target price changes accordingto different assumptions regarding the long term growth rate and the long term WACC for the group.

VALUATION

MERIT

SECURITIES

9/13

MERIT

SECURITIES

in 000 €

LT WACC

1,80 -0,50% 0,00% 0,50% 1,00% 1,50%

8% 2,15 2,26 2,37 2,50 2,65

9% 1,94 2,02 2,10 2,20 2,31

10% 1,77 1,83 1,89 1,97 2,05

10,5% 1,69 1,75 1,80 1,87 1,94

11% 1,63 1,68 1,73 1,79 1,85

12% 1,51 1,55 1,59 1,64 1,69

PERPETUITY SALES GROWTH

SENSITIVITY ANALYSIS

CASH FLOW STATEMENT 2010 F 2011 F 2012 F 2013 F 2014 F

Turnover 662.431 715.425 772.660 826.746 876.350

EBIT 4.875 5.908 6.309 6.687 7.911

Less: Adjusted Tax 1.123 1.295 1.419 1.489 1.743

NOPAT 3.752 4.613 4.890 5.199 6.167

Plus: Depreciation 3.000 3.000 3.000 3.000 3.000

Less: Change in Working Capital 1.210 294 -40 789 15

Less: Capex 4.465 3.989 4.038 4.090 4.145

Cash Flow to the Firm (FCFF) 1.078 3.330 3.892 3.319 5.008

Present Value of Future Cash Flows 11.880

Present Value of Residual Value 25.274

Value of firm 37.154

Less: Net Debt -3.058

Minorities 0

Value of firm 40.213

Current Price 1,03

Value of share 1,80

% upside potential 75,23%

MAJOR NUMBERS AND INDICES

MERIT

SECURITIES

10/13

0,00

0,05

0,10

0,15

0,20

0,25

0,30

2007 A

2008 A

2009 E

2010 F

2011 F

2012 F

2013 F

EPS (€)

0,00

0,02

0,04

0,06

0,08

0,10

2007 A

2008 A

2009 E

2010 F

2011 F

2012 F

2013 F

FCFF PS (€)

0,000,010,020,030,040,050,060,070,080,09

2007 A

2008 A

2009 E

2010 F

2011 F

2012 F

2013 F

DPS (€)

0,0%

5,0%

10,0%

15,0%

20,0%

2007 A

2008 A

2009 E

2010 F

2011 F

2012 F

2013 F

ROE (%)

0,0%

1,0%

2,0%

3,0%

4,0%

5,0%

2007 A

2008 A

2009 E

2010 F

2011 F

2012 F

2013 F

Gross Margin (%)

0,0%

0,5%

1,0%

1,5%

2007 A

2008 A

2009 E

2010 F

2011 F

2012 F

2013 F

EBITDA Margin (%)

0,0%0,1%0,2%0,3%0,4%0,5%0,6%0,7%

2007 A

2008 A

2009 E

2010 F

2011 F

2012 F

2013 F

EATAM Margin (%)

Current Price

1,03 2007 A 2008 A 2009 A 2010 F 2011 F 2012 F 2013 F 2014 F

Current No of Shares (,000) 22.280 22.280 22.280 22.280 22.280 22.280 22.280 22.280

P/E (x) 12,31 15,75 7,54 6,46 5,29 4,56 4,23 3,51

P/Sales (x) 0,05 0,04 0,04 0,03 0,03 0,03 0,03 0,03

P/BV (x) 1,04 0,99 0,89 0,82 0,75 0,67 0,61 0,54

EPS (€) 0,08 0,07 0,14 0,16 0,19 0,23 0,24 0,29

EPS growth (%) -21,8% 108,9% 16,8% 22,0% 16,0% 7,9% 20,6%

PEG (x) -0,72 0,07 0,38 0,24 0,29 0,53 0,17

Operating CFPS (€) 0,28 0,16 0,69 0,21 0,30 0,36 0,34 0,43

FCFF / Share (€) 0,24 0,03 0,56 0,05 0,15 0,17 0,15 0,22

Dividend / Share (€) 0,01 0,01 0,07 0,06 0,07 0,08 0,09 0,10

Dividend Yield (%) 1,2% 0,5% 6,6% 6,2% 6,6% 7,7% 8,3% 10,0%

ROE (%) 9,6% 7,5% 14,6% 15,7% 17,7% 18,8% 18,5% 20,1%

EV/Sales (x) 0,06 0,04 0,03 0,03 0,03 0,03 0,02 0,02

EV/EBITDA (x) 4,33 3,73 1,95 2,56 2,44 2,26 2,09 1,66

Net Debt / Equity (x) 0,15 -0,12 -0,41 -0,17 -0,09 -0,11 -0,13 -0,18

Current Ratio (x) 0,84 0,95 1,00 0,92 0,91 0,93 0,50 0,52

INCOME STATEMENT (€ ,000) 2007 A 2008 A 2009 A 2010 F 2011 F 2012 F 2013 F 2014 F

Total Τurnover 445.331 571.993 581.080 662.431 715.425 772.660 826.746 876.350

COGS 425.327 551.169 555.925 635.271 685.378 740.208 792.022 838.667

Gross Profit 20.003 20.825 25.155 27.160 30.048 32.452 34.723 37.683

Other Operating Income 551 695 998 1.000 1.000 1.000 1.000 1.000

SG&A Expenses 17.085 18.617 21.554 23.285 25.140 27.143 29.036 30.772

EBIT 3.469 2.903 4.599 4.875 5.908 6.309 6.687 7.911

Depreciation 2.815 2.922 3.185 3.000 3.000 3.000 3.000 3.000

EBITDA 6.284 5.825 7.784 7.875 8.908 9.309 9.687 10.911

Interest Expense (767) (780) (266) (197) (276) 139 183 270

EBT 2.702 2.123 4.332 4.677 5.632 6.448 6.871 8.181

Taxes 838 666 1.289 1.123 1.295 1.419 1.443 1.636

Minorities

EATAM 1.864 1.457 3.043 3.555 4.337 5.029 5.428 6.545

CASH FLOW (€ ,000) 2007 A 2008 A 2009 A 2010 F 2011 F 2012 F 2013 F 2014 F

Cash flow from Operations 6.256 3.661 15.402 4.655 6.668 8.067 7.633 9.519

Cash Flow from Investment -2.238 -3.336 -2.994 -4.023 -3.736 -3.812 -3.821 -3.790

Net Cash Flow from Financing -521 2.489 -8.594 -4.612 -4.273 -1.910 -1.900 -2.291

BALANCE SHEET (€ ,000) 2007 A 2008 A 2009 A 2010 F 2011 F 2012 F 2013 F 2014 F

Total Non-Current Assets 23.194 23.372 22.776 24.739 25.964 27.262 28.597 29.965

Inventory 2.629 2.984 5.996 4.637 5.008 5.409 5.787 6.134

Receivables 27.314 32.533 29.012 35.109 37.918 40.951 43.818 46.447

Total Cash 4.303 6.338 10.153 5.035 3.420 4.104 4.949 7.126

Total Current Assets 34.246 41.875 45.359 44.780 46.346 50.463 54.553 59.707

Total Assets 57.441 65.247 68.135 69.520 72.310 77.725 83.150 89.672

Long Term Bank Loans 7.485 9.645 3.905 1.150

Non Current Liabilities 7.621 10.475 5.398 2.370 1.220 1.220 1.220 1.220

Short Term Banks 3.740 4.990 3.190 2.755 1.150 1.000 1.000 1.000

Current Liabilities 30.634 34.966 40.722 43.958 45.291 48.673 51.183 54.194

Equity 19.185 19.806 22.015 23.193 25.799 27.832 30.747 34.259

Total Equity & Liabilities 57.441 65.247 68.135 69.520 72.310 77.725 83.150 89.672

MARGIN ANALYSIS % 2007 A 2008 A 2009 A 2010 F 2011 F 2012 F 2013 F 2014 F

Gross Profit 4,5% 3,6% 4,3% 4,1% 4,2% 4,2% 4,2% 4,3%

SG&A Expenses 3,8% 3,3% 3,7% 3,5% 3,5% 3,5% 3,5% 3,5%

EBITDA 1,4% 1,0% 1,3% 1,2% 1,2% 1,2% 1,2% 1,2%

EBT 0,6% 0,4% 0,7% 0,7% 0,8% 0,8% 0,8% 0,9%

EAT&Minorites 0,4% 0,3% 0,5% 0,5% 0,6% 0,7% 0,7% 0,7%

Tax rate 31,0% 31,4% 29,8% 24,0% 23,0% 22,0% 21,0% 20,0%

Source: MERIT SECURITIES, Company Financial Data

REVOIL Α.Ε.Ε.Π. (Cons)

Glossary

AGM: Annual General Meeting

CAGR: Compound Annual Growth Rate

CFPS: Cash Flow per Share

COGS: Costs of Goods Sold

DPS: Dividends per Share

EAT: Earnings after Taxes

EATAM: Earnings after Taxes and Minorities rights

EBIT: Earnings before Interest and Taxes

EBITDA: Earnings before Interest and Taxes, Depreciation, and Amortization

EBT: Earnings before Taxes

EPS: Earnings per Share

EV: Enterprise Value

FCFF: Free Cash Flows to the Firm

fx: Foreign Exchange

LT-WACC: Long-term Weighted Average Cost of Capital

NOPAT: Net Operating Profits After Taxes

P/BV: Price to Book Value

P/E, PE: Price to Earnings ratio

PEG: Price/Earnings to Growth ratio

ROE: Return on Equity

SG&A: Selling, General and Administrative

ttm: Trailing Twelve Months

WACC: Weighted Average Cost of Capital

ΔNWC: Change in Net Working Capital

Abbreviatons

MERIT

SECURITIES

11/13

WACC (Weighted Average Cost of Capital)

FCFF (Free Cash Flow to the Firm)

Notes

Years 0 1 2 3 4 5 Perpetuity

Value of the Firm = FCFF1

₊

FCFF2

₊

FCFF3

₊

FCFF4

₊

FCFF5

₊

FCFF5(1+g)

(1+WACC) (1+WACC)2

(1+WACC)3

(1+WACC)4

(1+WACC)5

(WACC-g)

(1+WACC)5

Value of the Firm - Debt0 = Value of Equity

g = perpetual growth rate of FCFF

Calculation

WACC = Re*(E/D+E) + Rd*(D/D+E)

Re (Cost of equity) = Rf + β*(RM-Rf)

Rf = Risk free rate

β= Beta factor

Rd = Cost of debt

E = Market value of Equity

D = Book value of Debt

Calculation

FCFF = EBIT(1-tax rate) + Dep.- Net CAPEX - ΔNWC

Dep. = Depreciation

Net CAPEX = Net Capital Expenditures

NWC = Inventories + Receivables – Current (non-bearing interest) Liabilities

MERIT

SECURITIES

12/13

Investment Ratings

BUY (5/5): The difference between the stock’s current price and its estimated target price is +30%ACCUMULATE (4/5): The difference between the stock’s current price and its estimated target price ranges between *+10% and +30%)HOLD (3/5): The difference between the stock’s current price and its estimated target price ranges between (-10% and +10%)AVOID (2/5): The difference between the stock’s current price and its estimated target price ranges between *-10% and -30%)REDUCE (1/5): The difference between the stock’s current price and its estimated target price is -30%

Disclaimer

This report has been prepared and issued by MERIT Securities SA which is regulated by the Hellenic Capital MarketCommission and is subject to the rules of conduct applicable to investment firms (EPEYs) as established under Greekregulations. This report has been issued by MERIT Securities SA and may not be reproduced in any manner or provided toany other persons. Each person that receives a copy by acceptance thereof represents and agrees that it will not distributeor provide it to any other person. The information contained herein has been obtained from sources believed to be reliablebut MERIT Securities SA has not verified it. The opinions expressed herein may not necessarily coincide with those of anymember of MERIT Securities SA. No presentation or warranty (express or implied) is made as to the accuracy,completeness, correctness, and timeliness of fairness of the information or opinions herein, all of which are subject tochange without notice. No responsibility or liability what so ever or how so ever arising is accepted in relation othercontents herein by MERIT Securities SA or any of its directors, officers or employees. This report is not an offer to buy or tosell or a solicitation of an offer to buy or sell securities mentioned herein. MERIT Securities SA and others associated with itmay have positions in, and may affect transactions in securities of companies mentioned herein. MERIT Securities SAand/or its associated group companies or a person or persons connected with the company may from time to time act ontheir own account in transactions covered in its research reports. MERIT Securities SA may do and may seek to do businesswith companies covered in its research reports. As a result, investors should be aware that the firm might have a conflict ofinterest that could affect the impartiality of this report. Investors should consider this report as only a single factor inmaking their investment decision. The investment discussed in this report may be unsuitable for investors, depending ontheir specific investment objectives and financial position.At the date of the issuance of this report (mentioned in the first page of the report) MERIT Securities SA acts as a marketmaker for the following securities: Viohalko S.A., F.H.L. H. Kyriakidis Marbles – Granites S.A. , Elastron S.A., Sciens S.A., ByteComputer S.A., Centric S.A., Alpha Grissin S.A., ETEM S.A.At the date of the issuance of this report (mentioned in the first page of the report), none of the subject companiesmentioned in this report owns more than 5% of MERIT Securities SA or any of its affiliated companies. MERIT Securities SA may have received compensation from the company for financial advisory services during the past12 months.MERIT Securities SA has not received compensation from the company for the preparation of the research report.

Analyst Certification

The analyst responsible for the content of this research report (in whole or in part), certifies that a) all the views about thecompanies and securities contained in this report accurately reflect the personal views of the respective author and b) nopart of our compensation was or will be directly or indirectly related to the specific recommendations or view of thisreport. The author of this report may have held or hold in the future shares of the company covered in its research reports.The analyst or at least one of the analysts mentioned in this report are Certified as “Analyst of Equities and the Market” bythe Hellenic Capital Market Commission.