1. Should Marshall purchase the thermowell machines? In calculating the WACC, use 5.8% as the equity risk premium.

2. Should Marshall acquire Electro-Engineering, Inc. (EE)? What is the most important consideration? Even if the NPV of the acquisition is zero, should she still proceed?

Exhibit 1 Burton Sensors Consolidated Balance Sheets (Actual/Projected), 2014-2021 (Fiscal years ending December 31; U.S. $000s) Cash and equivalents Accounts receivable Inventory Other current assets Current assets 2014A 2015A 2016A 279.7 251.3 304.3 1,552.5 1,894.0 2,315.4 1,672.9 2,096.7 2,436.3 253.5 311.8 371.9 3,758.6 4,553.8 5,427.8 2017E 2018E 371.3 359.7 2,824.9 3,276.9 2,997.9 3,477.6 461.2 535.0 6,655.3 7,649.2 2019E 368.6 3,539.1 3,755.8 577.5 8,241.3 2020E 437.5 3,751.4 3,981.1 612.5 8,782.5 2021E 484.6 3,976.5 (24.5% of projected sales) 4,220.0 (26% of projected sales) 649.2 (4% of projected sales) 9,330.3 Net PP&E Total assets 3,874.0 4,293.3 4,654.1 7,632.6 8,847.2 10,082.0 4,847.8 4,938.8 4,875.2 4,789.5 4,698.6 11,503.2 12,588.0 13,116.5 13,572.0 14,028.9 Accounts payable Accrued expenses Bank loans Deferred taxes Long-term debt, current portion Current Liabilities 773.1 935.3 1,153.0 418.2 491.0 567.2 3,020.0 3,880.0 4,580.0 351.9 360.7 406.2 150.0 150.0 150.0 4,713.2 5,817.0 6,856.5 1,383.6 1,605.0 714.9 829.3 5,080.0 5,230.0 527.9 590.1 150.0 150.0 7,856.4 8,404.4 1,733.4 895.6 4,930.0 624.0 150.0 8,333.1 1,837.4 949.3 4,530.0 658.3 150.0 8,125.1 1,947.7 (12% of projected sales) 1,006.3 (6.2% of projected sales) 4,030.0 702.5 150.0 7,836.5 Long-term debt Total liabilities 1,980.0 1,830.0 1,680.0 6,693.2 7,647.0 8,536.5 1,530.0 1,380.0 9,386.4 9,784.4 1,230.0 9,563.1 1,080.0 9,205.1 930.0 8,766.5 Shareholders' equity Total liabilities and equity 939.4 1,200.1 1,545.5 7,632.6 8,847.2 10,082.0 2,116.8 2,803.6 3,553.4 4,366.9 5,262.4 11,503.2 12,588.0 13,116.5 13,572.0 14,028.9 Bank loan/ (receivables + inventory) Liabilities / book equity Total interest-bearing debt / book equity 0.94 7.1x 5.5x 0.97 6.4x 4.9x 0.96 5.5x 4.1x 0.87 4.4x 3.2x 0.77 3.5x 2.4x 0.68 2.7x 1.8x 0.59 2.1x 1.3x 0.49 1.7x 1.0x 2017E 2018E 2019E 2020E 2021E Tables below are not shown in case Working Capital Assumptions (U.S. $ thousands) 2014A 2015A 2016A Income Statement Metrics Revenue 6,336.9 7,794.4 9,298.7 Cost of Goods Sold 2,686.8 3,359.4 4,035.6 11,530.4 13,375.3 14,445.3 4,958.1 5,751.4 6,211.5 15,312.0 16,230.7 6,584.2 6,979.2 Working Capital Ratios Accounts receivable % Sales) Inventory (% Sales) Accounts payable (% Sales) 24.5% 26.4% 12.2% 24.3% 26.9% 12.0% 24.9% 26.2% 12.4% 24.5% 26.0% 12.0% 24.5% 26.0% 12.0% 24.5% 26.0% 12.0% 24.5% 26.0% 12.0% 24.5% 26.0% 12.0% Other Activity Ratios Other Current Assets (% Sales) Accrued Expenses (% Sales) 4.0% 6.6% 4.0% 6.3% 4.0% 6.1% 4.0% 6.2% 4.0% 6.2% 4.0% 6.2% 4.0% 6.2 4.0% 6.2% 2020E PP&E (Beginning) Less: Depreciation Add: CapEx & Purchase of PP&E PP&E (Ending) 2014A 2015A 2016A 3,618.0 3,874.0 4,293.3 (98.9) (102.9) (122.7) 354.9 522.2 483.5 3,874.0 4,293.3 4,654.1 2017E 2018E 4,654.1 4,847.8 (152.2) (176.6) 345.9 267.5 4,847.8 4,938.8 2019E 4,938.8 (208.0) 144.5 4,875.2 4,875.2 (238.9) 153.1 4,789.5 2021E 4,789.5 (253.2) 162.3 4,698.6 1.6% 1.3% Depreciation (% Sales) CapEx (% Sales) 1.3% 5.2% 1.3% 3.0% 1.3% 2.0% 1.4% 1.0% 1.6% 1.0% 1.6% 1.0% 5.6% 6.7% 2020E 2021E Long-Term Debt Schedule (U.S. $thousands) 2014A 2015A 2016A Beginning balance (with current portion) 2,280.0 2,130.0 1,980.0 Add: issuances 0.0 0.0 0.0 Less: retirements (150.0) (150.0) (150.0) Ending balance with current portion) 2,130.0 1,980.0 1,830.0 Ending balance (without current portion) 1,980.0 1,830.0 1,680.0 2017E 2018E 1,830.0 1,680.0 0.0 0.0 (150.0) (150.0) 1,680.0 1,530.0 1,530.0 1,380.0 2019E 1,530.0 0.0 (150.0) 1,380.0 1,230.0 1,380.0 0.0 (150.0) 1,230.0 1,080.0 1,230.0 0.0 (150.0) 1,080.0 930.0 Current portion of long-term debt 150.0 150.0 150.0 150.0 150.0 150.0 150.0 150.0 Interest rate as % of beginning balance Interest payment 5.5% 247.5 5.5% 283.3 5.5% 322.3 5.5% 352.6 5.5% 371.S 5.5% 371.S 5.5% 347.1 5.5% 316.8 Deferred Tax Schedule (U.S. $thousands) 2018E 2021E 527.9 2014A 515.8 131.6 295.5 351.9 Beg, accrued taxes Accrual of taxes Tax payments End, accrued taxes 2015A 351.9 140.4 131.6 360.7 2016A 360.7 186.0 140.4 406.2 2017E 406.2 307.6 186.0 527.9 369.8 2019E 590.1 403.8 369.8 624.0 2020E 624.0 438.0 403.8 658.3 658.3 482.2 438.0 702.5 307.6 590.1 Tax payments as % of previous year's EBT 35.0% 35.0% 35.0% 35.0% 35.0% 35.0% 35.0% 35.0% Exhibit 2 Burton Sensors Consolidated Income Statements (Actual/Projected), 2014-2021 (Fiscal years ending December 31; U.S. $000s) Net sales COGS Gross profit 2014A 2015A 2016A 2017E 2018E 2019E 2020E 2021E 6,336.9 7,794.4 9,298.7 11,530.4 13,375.3 14,445.3 15,312.0 16,230.7 2,686.8 3,359.4 4,035.6 4,958.1 5,751.4 6,211.5 6,584.2 6,979.2 (43% of projected sales) 3,650.1 4,435.0 5,263.1 6,572.3 7,623.9 8,233.8 8,727.8 9,251.5 SG&A expense R&D expense Depreciation and amortization Net interest expense (income) Pretax income (loss) 2,230.6 2,790.4 3,263.8 4,035.6 697.1 857.4 1,022.9 1,153.0 98.9 102.9 122.7 152.2 247.5 283.3 322.3 352.6 376.1 401.1 531.3 878.9 4,681.3 5,055.8 5,359.2 5,680.7 (35% of projected sales) 1,337.5 1,444.5 1,531.2 1,623.1 (10% of projected sales) 176.6 208.0 238.9 253.2 371.8 371.8 347.1 316.8 1,056.7 1,153.6 1,251.5 1,377.7 Income taxes Net income 131.6 244.4 140.4 260.7 186.0 345.4 307.6 571.3 369.8 686.8 403.8 749.9 438.0 813.5 482.2 (35% of projected EBT) 895.5 1,500 0.46 1,500 0.50 Number of common shares (thousands) 1,500 1,500 1,500 1,500 Earnings per share 0.16 0.17 0.23 0.38 Cash dividend per share 0 0 0 0 Burton pays an average of 5.5% interest on all interest bearing debt. 1,500 0.54 0 1,500 0.60 0 0 0 Tables below are not shown in case Assumptions 2014A 2015A 2016A 23.0% 19.3% 2017E 24.0% 2018E 16.0% 2019E 8.0% 2020E 6.0% 2021E 6.0% Revenue growth Items as a % of Revenue COGS SG&A expense R&D expense 42.4% 35.2% 11.0% 43.1% 43.4% 35.8% 35.1% 11.0% 11.0% 43.0% 35.0% 10.0% 43.0% 35.0% 10.0% 43.0% 35.0% 10.0% 43.0% 35.0% 10.0% 43.0% 35.0% 10.0% 35.0% 35.0% 35.0% 35.0% 35.0% 35.0% 35.0% 35.0% Tax rate Payout ratio Exhibit 3 Burton Sensors Consolidated Statement of Cash Flows (Actual/Projected), 2014-2021 (Fiscal years ending December 31; U.S. $000s) 2014A 2015A 2016A 2017E 2018E 2019E 2020E 2021E Operating Activities Net income Depreciation and amortization Less: increase (decrease) in accounts receivable Less: increase (decrease in inventory Less: increase (decrease) in other current assets Add: increase (decrease) in accounts payable Add: increase (decrease) in accrued expenses Add: increase (decrease) in deferred taxes Operating activities - net cash flow 244.4 260.7 98.9 102.9 320.0 341.5 289.8 423.7 55.6 58.3 120.3 162.2 30.2 72.8 (163.9) 8.8 (335.5) (216.1) 345.4 122.7 421.3 339.6 60.2 217.7 76.2 571.3 152.2 509.6 561.6 89.3 230.6 147.7 121.7 62.9 686.8 176.6 452.0 479.7 73.8 221.4 114.4 62.2 255.9 749.9 208.0 262.2 278.2 42.8 128.4 66.3 33.9 603.4 813.5 238.9 212.3 225.3 34.7 104.0 53.7 34.3 772.0 895.5 253.2 225.1 238.9 36.7 110.2 57.0 44.2 859.4 45.6 (13.5) Investing Activities Less: capex (354.9) (522.2) (483.5) (345.9) (267.5) (144.5) (153.1) (162.3) (354.9) (522.2) (483.5) (345.9) (267.5) (144.5) (153.1) (162.3) Investing activities - net cash flow Financing Activities Add: changes in bank borrowings Add: long-term debt net issuance Add: net issuance of common stock Less: cash dividend Financing activities - net cash flow 800.0 860.0 (150.0) (150.0) 0.0 0.0 0.0 0.0 650.0 710.0 700.0 500.0 150.0 (300.0) (400.0) (500.0) (150.0) (150.0) (150.0) (150.0) (150.0) (150.0) 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 550.0 350.0 0.0 (450.0) (550.0) (650.0) Total net cash flow (40.3) (28.4) 53.0 67.0 (11.6) 8.9 68.9 47.1 Beginning cash Change in cash Ending cash 320.0 (40.3) 279.7 279.7 (28.4) 251.3 251.3 53.0 304.3 304.3 67.0 371.3 371.3 (11.6) 359.7 359.7 8.9 368.6 368.6 68.9 437.5 437.5 47.1 484.6 Exhibit 4 Comparative Data on Four Publically Traded Sensor Manufacturers, 2014-2016 (U.S. $ millions) TE Connectivity (TEL) 2014 2015 Ametek (AME) 2014 2015 Opsens (OPS) 2014 2015 Cyberoptics (CYBE) 2014 2015 2016 2016 2016 2016 41.13 66.24 53.33 17.75 (6.38) (6.54) 6.15 1.02 (2.20) (2.10) 44.74 2.00 11.56 59.58 27.61 59.50 5.30 13,113.00 2,201.00 1,683.00 19,403.00 4,344.00 9,652.00 9,751.00 0.17 - 9.64 10.68 7.22 12,233.00 1,992.00 2,420.00 20,589.00 3,884.00 11,004.00 9,585.00 0.16 0.20 405.00 24,959.14 1.30 5.98 12,238.00 1,936.00 2,009.00 17,608.00 4,070.00 9,123.00 8,485.00 0.16 0.16 366.00 24,618.77 1.26 5.49 8.68 36.06 Net sales Operating profit Net income Assets Total debt Total liabilities Shareholders' equity Operating margin Profit margin Shares outstanding Market capitalization Equity beta* EPS P/E D/Marketcap *Based on previous five years 17.97 48.90 3,974.30 3,840.09 4,300.17 944.32 841.40 931.89 590.86 512.16 681.47 6,660.45 7,100.67 7,796.06 1,866.12 2,062.64 1,866.17 3,405.82 3,844.16 3,768.43 3,254.63 3,256.51 4,027.63 0.24 0.22 0.22 0.15 0.13 0.16 239.91 232.59 230.23 12,748.27 15,280.00 16,940.38 1.29 1.16 1.25 2.46 2.20 2.96 21.58 29.83 24.86 0.15 0.13 0.11 5.21 9.60 (5.13) (8.49) (2.88) (9.28) 12.76 16.86 3.69 5.58 6.87 9.55 5.89 7.31 (0.99) (0.88) (0.55) (0.97) 60.18 66.74 51.75 108.11 1.32 1.17 (0.05) (0.14) NA NA 0.07 0.05 (0.36) ) (0.37) 80.95 (0.05) (0.05) 6.71 0.09 0.17 0.13 355.00 52.28 0.02 0.04 6.83 6.95 51.30 33,490.92 1.24 191.30 114.61 0.80 0.85 90.67 1.02 (0.08) NA 4.74 0.82 (0.31) NA 1.69 0.29 10.31 12.25 19.90 16.55 57.30 0.16 0.17 0.13 0.06 Exhibit 5 Electro-Engineering Consolidated Balance Sheets (Actual), 2014-2016 (Fiscal years ending December 31; U.S. $000s) Cash and equivalents Accounts receivable Inventory Prepaid expenses Current assets 2014 379.1 485.9 279.8 27.8 1,172.5 2015 350.2 592.0 413.7 5.2 1,361.1 2016 359.8 680.1 480.6 16.9 1,537.4 Net PP&E Total assets 249.1 1,421.6 339.3 1,700.3 479.8 2,017.1 Bank loans Accounts payable Accrued expenses Total Liabilities 340.6 126.6 104.9 572.1 340.6 153.4 77.0 570.9 310.6 175.1 101.8 587.5 Shareholders' equity Total liabilities and equity 849.5 1,421.6 1,129.4 1,700.3 1,429.6 2,017.1 Exhibit 6 Electro-Engineering Consolidated Income Statements (Actual), 2014-2016 (Fiscal years ending December 31; U.S. $000s) Net sales COGS Gross profit 2014 2,944.9 1,525.0 1,420.0 2015 3,566.3 1,811.7 1,754.6 2016 4,072.7 2,085.2 1,987.5 930.1 SG&A expense R&D expense Depreciation and amortization Interest expense Pretax income (loss) 814.9 153.1 142.2 18.7 291.0 178.3 196.9 18.7 430.6 1,080.9 219.9 206.1 18.7 461.8 Income taxes Net income 101.8 189.1 150.7 279.9 161.6 300.2 Number of common shares (thousand Earnings per share Cash dividend per share 1,100 0.17 0.0 1,100 0.25 0.0 1,100 0.27 0.0 Exhibit 7 Electro-Engineering Consolidated Statement of Cash Flows (Actual), 2014-2016 (Fiscal years ending December 31; U.S. $000s) 2014 2015 2016 Operating Activities Net income Depreciation and amortization Less: increase (decrease) in accounts receivable Less: increase (decrease) in inventory Less: increase (decrease) in prepaid expenses Add: increase (decrease) in accounts payable Add: increase (decrease) in accrued expenses Operating activities - net cash flow 189.1 142.2 9.0 (108.5) (28.0) 35.0 14.0 507.9 279.9 196.9 106.1 133.9 (22.6) 26.7 (27.9) 258.2 300.2 206.1 S8.1 66.9 11.7 21.8 24.8 386.1 Investing Activities Less: capex Investing activities - net cash flow (230.3) (230.3) (287.1) (287.1) (346.6) (346.6) Financing Activities Add: debt net issuance Add: net issuance of common stock Less: cash dividend Financing activities - net cash flow (100.0) 0.0 0.0 (100.0) 0.0 0.0 0.0 0.0 (30.0) 0.0 0.0 (30.0) Total net cash flow 177.6 (28.9) 9.6 Beginning cash Change in cash Ending cash 201.5 177.6 379.1 379.1 (28.9) 350.2 350.2 9.6 359.8 Exhibit 1 Burton Sensors Consolidated Balance Sheets (Actual/Projected), 2014-2021 (Fiscal years ending December 31; U.S. $000s) Cash and equivalents Accounts receivable Inventory Other current assets Current assets 2014A 2015A 2016A 279.7 251.3 304.3 1,552.5 1,894.0 2,315.4 1,672.9 2,096.7 2,436.3 253.5 311.8 371.9 3,758.6 4,553.8 5,427.8 2017E 2018E 371.3 359.7 2,824.9 3,276.9 2,997.9 3,477.6 461.2 535.0 6,655.3 7,649.2 2019E 368.6 3,539.1 3,755.8 577.5 8,241.3 2020E 437.5 3,751.4 3,981.1 612.5 8,782.5 2021E 484.6 3,976.5 (24.5% of projected sales) 4,220.0 (26% of projected sales) 649.2 (4% of projected sales) 9,330.3 Net PP&E Total assets 3,874.0 4,293.3 4,654.1 7,632.6 8,847.2 10,082.0 4,847.8 4,938.8 4,875.2 4,789.5 4,698.6 11,503.2 12,588.0 13,116.5 13,572.0 14,028.9 Accounts payable Accrued expenses Bank loans Deferred taxes Long-term debt, current portion Current Liabilities 773.1 935.3 1,153.0 418.2 491.0 567.2 3,020.0 3,880.0 4,580.0 351.9 360.7 406.2 150.0 150.0 150.0 4,713.2 5,817.0 6,856.5 1,383.6 1,605.0 714.9 829.3 5,080.0 5,230.0 527.9 590.1 150.0 150.0 7,856.4 8,404.4 1,733.4 895.6 4,930.0 624.0 150.0 8,333.1 1,837.4 949.3 4,530.0 658.3 150.0 8,125.1 1,947.7 (12% of projected sales) 1,006.3 (6.2% of projected sales) 4,030.0 702.5 150.0 7,836.5 Long-term debt Total liabilities 1,980.0 1,830.0 1,680.0 6,693.2 7,647.0 8,536.5 1,530.0 1,380.0 9,386.4 9,784.4 1,230.0 9,563.1 1,080.0 9,205.1 930.0 8,766.5 Shareholders' equity Total liabilities and equity 939.4 1,200.1 1,545.5 7,632.6 8,847.2 10,082.0 2,116.8 2,803.6 3,553.4 4,366.9 5,262.4 11,503.2 12,588.0 13,116.5 13,572.0 14,028.9 Bank loan/ (receivables + inventory) Liabilities / book equity Total interest-bearing debt / book equity 0.94 7.1x 5.5x 0.97 6.4x 4.9x 0.96 5.5x 4.1x 0.87 4.4x 3.2x 0.77 3.5x 2.4x 0.68 2.7x 1.8x 0.59 2.1x 1.3x 0.49 1.7x 1.0x 2017E 2018E 2019E 2020E 2021E Tables below are not shown in case Working Capital Assumptions (U.S. $ thousands) 2014A 2015A 2016A Income Statement Metrics Revenue 6,336.9 7,794.4 9,298.7 Cost of Goods Sold 2,686.8 3,359.4 4,035.6 11,530.4 13,375.3 14,445.3 4,958.1 5,751.4 6,211.5 15,312.0 16,230.7 6,584.2 6,979.2 Working Capital Ratios Accounts receivable % Sales) Inventory (% Sales) Accounts payable (% Sales) 24.5% 26.4% 12.2% 24.3% 26.9% 12.0% 24.9% 26.2% 12.4% 24.5% 26.0% 12.0% 24.5% 26.0% 12.0% 24.5% 26.0% 12.0% 24.5% 26.0% 12.0% 24.5% 26.0% 12.0% Other Activity Ratios Other Current Assets (% Sales) Accrued Expenses (% Sales) 4.0% 6.6% 4.0% 6.3% 4.0% 6.1% 4.0% 6.2% 4.0% 6.2% 4.0% 6.2% 4.0% 6.2 4.0% 6.2% 2020E PP&E (Beginning) Less: Depreciation Add: CapEx & Purchase of PP&E PP&E (Ending) 2014A 2015A 2016A 3,618.0 3,874.0 4,293.3 (98.9) (102.9) (122.7) 354.9 522.2 483.5 3,874.0 4,293.3 4,654.1 2017E 2018E 4,654.1 4,847.8 (152.2) (176.6) 345.9 267.5 4,847.8 4,938.8 2019E 4,938.8 (208.0) 144.5 4,875.2 4,875.2 (238.9) 153.1 4,789.5 2021E 4,789.5 (253.2) 162.3 4,698.6 1.6% 1.3% Depreciation (% Sales) CapEx (% Sales) 1.3% 5.2% 1.3% 3.0% 1.3% 2.0% 1.4% 1.0% 1.6% 1.0% 1.6% 1.0% 5.6% 6.7% 2020E 2021E Long-Term Debt Schedule (U.S. $thousands) 2014A 2015A 2016A Beginning balance (with current portion) 2,280.0 2,130.0 1,980.0 Add: issuances 0.0 0.0 0.0 Less: retirements (150.0) (150.0) (150.0) Ending balance with current portion) 2,130.0 1,980.0 1,830.0 Ending balance (without current portion) 1,980.0 1,830.0 1,680.0 2017E 2018E 1,830.0 1,680.0 0.0 0.0 (150.0) (150.0) 1,680.0 1,530.0 1,530.0 1,380.0 2019E 1,530.0 0.0 (150.0) 1,380.0 1,230.0 1,380.0 0.0 (150.0) 1,230.0 1,080.0 1,230.0 0.0 (150.0) 1,080.0 930.0 Current portion of long-term debt 150.0 150.0 150.0 150.0 150.0 150.0 150.0 150.0 Interest rate as % of beginning balance Interest payment 5.5% 247.5 5.5% 283.3 5.5% 322.3 5.5% 352.6 5.5% 371.S 5.5% 371.S 5.5% 347.1 5.5% 316.8 Deferred Tax Schedule (U.S. $thousands) 2018E 2021E 527.9 2014A 515.8 131.6 295.5 351.9 Beg, accrued taxes Accrual of taxes Tax payments End, accrued taxes 2015A 351.9 140.4 131.6 360.7 2016A 360.7 186.0 140.4 406.2 2017E 406.2 307.6 186.0 527.9 369.8 2019E 590.1 403.8 369.8 624.0 2020E 624.0 438.0 403.8 658.3 658.3 482.2 438.0 702.5 307.6 590.1 Tax payments as % of previous year's EBT 35.0% 35.0% 35.0% 35.0% 35.0% 35.0% 35.0% 35.0% Exhibit 2 Burton Sensors Consolidated Income Statements (Actual/Projected), 2014-2021 (Fiscal years ending December 31; U.S. $000s) Net sales COGS Gross profit 2014A 2015A 2016A 2017E 2018E 2019E 2020E 2021E 6,336.9 7,794.4 9,298.7 11,530.4 13,375.3 14,445.3 15,312.0 16,230.7 2,686.8 3,359.4 4,035.6 4,958.1 5,751.4 6,211.5 6,584.2 6,979.2 (43% of projected sales) 3,650.1 4,435.0 5,263.1 6,572.3 7,623.9 8,233.8 8,727.8 9,251.5 SG&A expense R&D expense Depreciation and amortization Net interest expense (income) Pretax income (loss) 2,230.6 2,790.4 3,263.8 4,035.6 697.1 857.4 1,022.9 1,153.0 98.9 102.9 122.7 152.2 247.5 283.3 322.3 352.6 376.1 401.1 531.3 878.9 4,681.3 5,055.8 5,359.2 5,680.7 (35% of projected sales) 1,337.5 1,444.5 1,531.2 1,623.1 (10% of projected sales) 176.6 208.0 238.9 253.2 371.8 371.8 347.1 316.8 1,056.7 1,153.6 1,251.5 1,377.7 Income taxes Net income 131.6 244.4 140.4 260.7 186.0 345.4 307.6 571.3 369.8 686.8 403.8 749.9 438.0 813.5 482.2 (35% of projected EBT) 895.5 1,500 0.46 1,500 0.50 Number of common shares (thousands) 1,500 1,500 1,500 1,500 Earnings per share 0.16 0.17 0.23 0.38 Cash dividend per share 0 0 0 0 Burton pays an average of 5.5% interest on all interest bearing debt. 1,500 0.54 0 1,500 0.60 0 0 0 Tables below are not shown in case Assumptions 2014A 2015A 2016A 23.0% 19.3% 2017E 24.0% 2018E 16.0% 2019E 8.0% 2020E 6.0% 2021E 6.0% Revenue growth Items as a % of Revenue COGS SG&A expense R&D expense 42.4% 35.2% 11.0% 43.1% 43.4% 35.8% 35.1% 11.0% 11.0% 43.0% 35.0% 10.0% 43.0% 35.0% 10.0% 43.0% 35.0% 10.0% 43.0% 35.0% 10.0% 43.0% 35.0% 10.0% 35.0% 35.0% 35.0% 35.0% 35.0% 35.0% 35.0% 35.0% Tax rate Payout ratio Exhibit 3 Burton Sensors Consolidated Statement of Cash Flows (Actual/Projected), 2014-2021 (Fiscal years ending December 31; U.S. $000s) 2014A 2015A 2016A 2017E 2018E 2019E 2020E 2021E Operating Activities Net income Depreciation and amortization Less: increase (decrease) in accounts receivable Less: increase (decrease in inventory Less: increase (decrease) in other current assets Add: increase (decrease) in accounts payable Add: increase (decrease) in accrued expenses Add: increase (decrease) in deferred taxes Operating activities - net cash flow 244.4 260.7 98.9 102.9 320.0 341.5 289.8 423.7 55.6 58.3 120.3 162.2 30.2 72.8 (163.9) 8.8 (335.5) (216.1) 345.4 122.7 421.3 339.6 60.2 217.7 76.2 571.3 152.2 509.6 561.6 89.3 230.6 147.7 121.7 62.9 686.8 176.6 452.0 479.7 73.8 221.4 114.4 62.2 255.9 749.9 208.0 262.2 278.2 42.8 128.4 66.3 33.9 603.4 813.5 238.9 212.3 225.3 34.7 104.0 53.7 34.3 772.0 895.5 253.2 225.1 238.9 36.7 110.2 57.0 44.2 859.4 45.6 (13.5) Investing Activities Less: capex (354.9) (522.2) (483.5) (345.9) (267.5) (144.5) (153.1) (162.3) (354.9) (522.2) (483.5) (345.9) (267.5) (144.5) (153.1) (162.3) Investing activities - net cash flow Financing Activities Add: changes in bank borrowings Add: long-term debt net issuance Add: net issuance of common stock Less: cash dividend Financing activities - net cash flow 800.0 860.0 (150.0) (150.0) 0.0 0.0 0.0 0.0 650.0 710.0 700.0 500.0 150.0 (300.0) (400.0) (500.0) (150.0) (150.0) (150.0) (150.0) (150.0) (150.0) 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 550.0 350.0 0.0 (450.0) (550.0) (650.0) Total net cash flow (40.3) (28.4) 53.0 67.0 (11.6) 8.9 68.9 47.1 Beginning cash Change in cash Ending cash 320.0 (40.3) 279.7 279.7 (28.4) 251.3 251.3 53.0 304.3 304.3 67.0 371.3 371.3 (11.6) 359.7 359.7 8.9 368.6 368.6 68.9 437.5 437.5 47.1 484.6 Exhibit 4 Comparative Data on Four Publically Traded Sensor Manufacturers, 2014-2016 (U.S. $ millions) TE Connectivity (TEL) 2014 2015 Ametek (AME) 2014 2015 Opsens (OPS) 2014 2015 Cyberoptics (CYBE) 2014 2015 2016 2016 2016 2016 41.13 66.24 53.33 17.75 (6.38) (6.54) 6.15 1.02 (2.20) (2.10) 44.74 2.00 11.56 59.58 27.61 59.50 5.30 13,113.00 2,201.00 1,683.00 19,403.00 4,344.00 9,652.00 9,751.00 0.17 - 9.64 10.68 7.22 12,233.00 1,992.00 2,420.00 20,589.00 3,884.00 11,004.00 9,585.00 0.16 0.20 405.00 24,959.14 1.30 5.98 12,238.00 1,936.00 2,009.00 17,608.00 4,070.00 9,123.00 8,485.00 0.16 0.16 366.00 24,618.77 1.26 5.49 8.68 36.06 Net sales Operating profit Net income Assets Total debt Total liabilities Shareholders' equity Operating margin Profit margin Shares outstanding Market capitalization Equity beta* EPS P/E D/Marketcap *Based on previous five years 17.97 48.90 3,974.30 3,840.09 4,300.17 944.32 841.40 931.89 590.86 512.16 681.47 6,660.45 7,100.67 7,796.06 1,866.12 2,062.64 1,866.17 3,405.82 3,844.16 3,768.43 3,254.63 3,256.51 4,027.63 0.24 0.22 0.22 0.15 0.13 0.16 239.91 232.59 230.23 12,748.27 15,280.00 16,940.38 1.29 1.16 1.25 2.46 2.20 2.96 21.58 29.83 24.86 0.15 0.13 0.11 5.21 9.60 (5.13) (8.49) (2.88) (9.28) 12.76 16.86 3.69 5.58 6.87 9.55 5.89 7.31 (0.99) (0.88) (0.55) (0.97) 60.18 66.74 51.75 108.11 1.32 1.17 (0.05) (0.14) NA NA 0.07 0.05 (0.36) ) (0.37) 80.95 (0.05) (0.05) 6.71 0.09 0.17 0.13 355.00 52.28 0.02 0.04 6.83 6.95 51.30 33,490.92 1.24 191.30 114.61 0.80 0.85 90.67 1.02 (0.08) NA 4.74 0.82 (0.31) NA 1.69 0.29 10.31 12.25 19.90 16.55 57.30 0.16 0.17 0.13 0.06 Exhibit 5 Electro-Engineering Consolidated Balance Sheets (Actual), 2014-2016 (Fiscal years ending December 31; U.S. $000s) Cash and equivalents Accounts receivable Inventory Prepaid expenses Current assets 2014 379.1 485.9 279.8 27.8 1,172.5 2015 350.2 592.0 413.7 5.2 1,361.1 2016 359.8 680.1 480.6 16.9 1,537.4 Net PP&E Total assets 249.1 1,421.6 339.3 1,700.3 479.8 2,017.1 Bank loans Accounts payable Accrued expenses Total Liabilities 340.6 126.6 104.9 572.1 340.6 153.4 77.0 570.9 310.6 175.1 101.8 587.5 Shareholders' equity Total liabilities and equity 849.5 1,421.6 1,129.4 1,700.3 1,429.6 2,017.1 Exhibit 6 Electro-Engineering Consolidated Income Statements (Actual), 2014-2016 (Fiscal years ending December 31; U.S. $000s) Net sales COGS Gross profit 2014 2,944.9 1,525.0 1,420.0 2015 3,566.3 1,811.7 1,754.6 2016 4,072.7 2,085.2 1,987.5 930.1 SG&A expense R&D expense Depreciation and amortization Interest expense Pretax income (loss) 814.9 153.1 142.2 18.7 291.0 178.3 196.9 18.7 430.6 1,080.9 219.9 206.1 18.7 461.8 Income taxes Net income 101.8 189.1 150.7 279.9 161.6 300.2 Number of common shares (thousand Earnings per share Cash dividend per share 1,100 0.17 0.0 1,100 0.25 0.0 1,100 0.27 0.0 Exhibit 7 Electro-Engineering Consolidated Statement of Cash Flows (Actual), 2014-2016 (Fiscal years ending December 31; U.S. $000s) 2014 2015 2016 Operating Activities Net income Depreciation and amortization Less: increase (decrease) in accounts receivable Less: increase (decrease) in inventory Less: increase (decrease) in prepaid expenses Add: increase (decrease) in accounts payable Add: increase (decrease) in accrued expenses Operating activities - net cash flow 189.1 142.2 9.0 (108.5) (28.0) 35.0 14.0 507.9 279.9 196.9 106.1 133.9 (22.6) 26.7 (27.9) 258.2 300.2 206.1 S8.1 66.9 11.7 21.8 24.8 386.1 Investing Activities Less: capex Investing activities - net cash flow (230.3) (230.3) (287.1) (287.1) (346.6) (346.6) Financing Activities Add: debt net issuance Add: net issuance of common stock Less: cash dividend Financing activities - net cash flow (100.0) 0.0 0.0 (100.0) 0.0 0.0 0.0 0.0 (30.0) 0.0 0.0 (30.0) Total net cash flow 177.6 (28.9) 9.6 Beginning cash Change in cash Ending cash 201.5 177.6 379.1 379.1 (28.9) 350.2 350.2 9.6 359.8