1. Explain what is net asset value (after debt).Calculate adjusted net asset value (ANAV) using the financialinformation contained in the 2010 balance sheet. Next, restate fictitiousassets at a tax rate of 33.33% (assumed tax rate).

5.90 Profit and Loss ( 000) 2006 2007 2008 2009 2010 Operating revenue 56,471 59,800 63,900 63,700 68,000 Growth (%) 6.86 -0.31 6.75 Operating expenses (56253) (58,300) (59,800) (62,400) (63,600) Salaries & payroll costs (20,090) (21,200) (22,600) (23,200) (24,800) City of Paris royalties (7,490) (8,100) (9,000) (8,400) (9,400) Other expenses (12,754) (12,100) (13,900) (17,400) (15,900) Depreciation & amortisation (15,919) (16,900) (14,300) (13,400) (13,500) Operating profit 218 1,500 4,100 3,300 4,312 Interest 274 1,100 1,600 800 405 Profit before tax 492 2,600 5,700 4,100 4,717 Employee profit sharing (69) (300) (700) (500) (500) Income tax (223) (900) (1,900) (1,300) (1,500) Net income 200 1,400 3,100 2,300 2,717 2006 2007 2008 2009 7,490 10,400 19,300 49,600 2010 61,130 205 20 7,310 2010 () 61,130,500 205,200 60,801,600 123,700 38,226,300 10,200 200 19,100 200 49,300 100 Assets ('000) Fixed assets Intangible assets Tangible assets Financial assets Current assets Inventory Accounts receivable Cash and cash equivalents Accrued assets 160 60,801 124 38,226 19,420 32,300 39,200 33,700 1,990 17,430 230 27,140 2,300 30,000 200 1,200 7,400 3,893 32,900 26,300 34,333 300 300 215 58,800 83,600 99,571 3,892,800 34,333,500 214,300 99,571,200 Total Assets 42,900 2008 2009 2010 Liabilities ('000) Shareholders' equity Provisions Current liabilities Financial debt Accounts payable Tax and social security Other liabilities Accrued liabilities Total Liabilities 2006 2007 1,200 2,600 16,920 26,000 8,910 71,500 350 300 2,610 4,100 5,950 7,000 100 110 2,800 27,140 42,900 5,700 24,200 32,718 36,400 42,700 48,888 14,200 14,500 16,058 200 200 116 3,100 3,900 3,633 8,800 8,000 9,264 2,100 2,500 3,045 2,500 2,200 1,907 58,800 83,600 99,571 2010 () 32,717,600 48,888,100 16,058,200 116,700 3,632,800 9,263,900 3,044,800 1,907,300 99,571,200 2006 2007 2008 2010 2009 17,300 10,630 18,200 22,800 20,476 Other data ('000) Net Cash Position (NCP) Working Capital requirement (WCR) Working Capital (WC) (6,450) (11,500) (15,000) (8,900) (13,741) 17,080 29,700 32,700 26,100 34,217 Average headcount 276 285 287 298 300 5.90 Profit and Loss ( 000) 2006 2007 2008 2009 2010 Operating revenue 56,471 59,800 63,900 63,700 68,000 Growth (%) 6.86 -0.31 6.75 Operating expenses (56253) (58,300) (59,800) (62,400) (63,600) Salaries & payroll costs (20,090) (21,200) (22,600) (23,200) (24,800) City of Paris royalties (7,490) (8,100) (9,000) (8,400) (9,400) Other expenses (12,754) (12,100) (13,900) (17,400) (15,900) Depreciation & amortisation (15,919) (16,900) (14,300) (13,400) (13,500) Operating profit 218 1,500 4,100 3,300 4,312 Interest 274 1,100 1,600 800 405 Profit before tax 492 2,600 5,700 4,100 4,717 Employee profit sharing (69) (300) (700) (500) (500) Income tax (223) (900) (1,900) (1,300) (1,500) Net income 200 1,400 3,100 2,300 2,717 2006 2007 2008 2009 7,490 10,400 19,300 49,600 2010 61,130 205 20 7,310 2010 () 61,130,500 205,200 60,801,600 123,700 38,226,300 10,200 200 19,100 200 49,300 100 Assets ('000) Fixed assets Intangible assets Tangible assets Financial assets Current assets Inventory Accounts receivable Cash and cash equivalents Accrued assets 160 60,801 124 38,226 19,420 32,300 39,200 33,700 1,990 17,430 230 27,140 2,300 30,000 200 1,200 7,400 3,893 32,900 26,300 34,333 300 300 215 58,800 83,600 99,571 3,892,800 34,333,500 214,300 99,571,200 Total Assets 42,900 2008 2009 2010 Liabilities ('000) Shareholders' equity Provisions Current liabilities Financial debt Accounts payable Tax and social security Other liabilities Accrued liabilities Total Liabilities 2006 2007 1,200 2,600 16,920 26,000 8,910 71,500 350 300 2,610 4,100 5,950 7,000 100 110 2,800 27,140 42,900 5,700 24,200 32,718 36,400 42,700 48,888 14,200 14,500 16,058 200 200 116 3,100 3,900 3,633 8,800 8,000 9,264 2,100 2,500 3,045 2,500 2,200 1,907 58,800 83,600 99,571 2010 () 32,717,600 48,888,100 16,058,200 116,700 3,632,800 9,263,900 3,044,800 1,907,300 99,571,200 2006 2007 2008 2010 2009 17,300 10,630 18,200 22,800 20,476 Other data ('000) Net Cash Position (NCP) Working Capital requirement (WCR) Working Capital (WC) (6,450) (11,500) (15,000) (8,900) (13,741) 17,080 29,700 32,700 26,100 34,217 Average headcount 276 285 287 298 300