un 8% +2 8% 57% 12% Forecast +3 8% 56% 12% 8% 7% 58% 12% 8% 7% 6% 8% 54% 12% 8% Historical -2 -1 Base Year 6.2% 9.7% 51.7% 55.8% 58.6% 6.2% 7.8% 10.1% 4.1% 5.2% 8.3% 6.9% 7.1% 10.1% 8.6% 5.5% 5.0% 35.7% 42.9% 40.0% 14.9 18.7 25.0 9.9 12.6 20.0 12.0 8.4 10.0 3% 2% 7.5 9.0 14.5 8% 7% 6% 7% 6% 6% Performance Drivers / Assumptions Year % Growth in revenues COGS % of revenue SG&A % of revenue R&D % of revenue D&A as % Revenue Effective interest rate Taxes Days Sales Outstanding Days Inventory Outstanding Days Payable Outstanding CapEx as % Revenue Working capital (excluding cash)' Debt repaid Dividend payout ratio Min Required cash balance Days in a year 40% 40% 25 20 10 +4 8% 55% 12% 8% 7% 6% 40% 25 20 10 7% 23 2 50% 40% 25 20 10 7% 23 2 50% 25 20 10 7% 16 2 50% 5.00 360 40% 25 20 10 7% 24 2 50% 7% 22 2 50% $ Income Statements Historical Year -2 -1 Base Year Revenues $ 145.0 $ 154.0 $ 169.0 COGS 75.0 86.0 99.0 Gross profits 70.0 68.0 70.0 SG&A 9.0 12.0 17.0 R&D 6.0 8.0 14.0 EBITDA 55.0 48.0 39.0 Depreciation & amortization 10.0 11.0 17.0 EBIT 45.0 37.0 22.0 Interest expenses 3.0 2.0 EBT 42.0 35.0 20.0 Taxes 15.0 15.0 8.0 Net income 27.0 20.0 12.0 +1 +2 $ 182.5 $ 197.1 105.9 112.4 76.7 84.8 21.9 23.7 14.6 15.8 40.2 45.3 12.8 13.8 27.4 31.5 2.3 2.2 25.1 29.4 10.1 11.8 15.0 17.6 Forecast +3 $ 212.9 119.2 93.7 25.5 17.0 51.1 14.9 36.2 2.0 34.2 13.7 20.5 +4 +5 $ 229.9 $ 248.3 126.5 134.1 103.5 114.2 27.6 29.8 18.4 19.9 57.5 64.6 16.1 17.4 41.4 47.2 1.9 1.8 39.5 45.4 15.8 18.2 23.7 27.2 F F 2.0 F F Balance Sheets Assets Historical -2 -1 Base 3.0 S 2.0 S 1.0 6.0 $ 8.0 S 11.7 4.0 3.0 5.5 13.0 13.0 18.2 $ $ +1 5.4 12.7 $ 5.8 23.9 Cash S Accounts receivable $ Inventory Current assets +2 5.8 13.7 11.4 30.9 Forecast +3 $ 13.4 $ 14.8 11.2 39.3 $ $ +4 22.0 16.0 11 49.0 $ $ +5 32.8 17.2 10.8 60.9 Gross PPE Accumulated depreciation 35.0 12.0 40.0 14.0 44.0 18.0 56.8 12.8 70.6 13.8 85.5 14.9 101.6 16.1 119.0 17.4 56.8 40.0 70.6 40.0 26.0 40.0 18.0 85.5 40.0 Net PPE Good will Other assets Total assets 101.6 40.0 23.0 320 16.0 84.0 26.0 40.0 18.0 97.0 44.0 40.0 0.0 107.9 127.7 149.9 174.4 202.4 Liabilities Accounts payable Current liabilities 2.5 2.5 2.0 2.0 2.8 2.8 2.9 2.9 3.1 3.1 3.3 3.3 in in 3.7 3.7 35.0 10.0 47.5 36.5 12.0 50.5 40.0 15.0 57.8 38.0 15.0 55.9 36.0 30.9 66.9 34.0 44.9 78.9 32.0 59.6 91.6 30.0 75.9 105.9 Long term debt Provisions and other liabilities Total liabilities Shareholders equity Common stock Retained earnings Total shareholders equity 25.0 11.5 36.5 30.0 16.5 46.5 30.0 14.5 44.5 30.0 22.0 52.0 30.0 30.8 60.8 30.0 41.0 71.0 30.0 52.9 82.9 30.0 66.5 96.5 84.0 97.0 107.9 127.7 149.9 174.4 202.4 Total liabilities & shareholders equity BALANCE CHECK 102.2 0.00 Forecast +3 -2 -1 Base Year +1 +2 +4 +5 $ $ 15.0 S 12.8 17.6 S 13.8 20.5 $ 14.9 23.7 16.1 27.2 17.4 (1.2) Cashflow Statements Year Operating Activities Net income Add depreciation & amortization Changes in operating assets/liabilities: Increase in accounts receivable Increase in inventory Increase in accounts payable Cash flow from operations Investing Activities Investments in PPE (CAPEX) Sale of PPE Investments in other assets Sale of other assets Cash flow from investment activities (1.00) (0.3) 0.1 26.6 (1.0) (5.6) 0.2 25.0 (1.1) 0.2 0.2 34.7 (0.2) 0.2 38.6 (1.2) 0.2 0.2 43.8 12.8 13.8 14.9 16.1 17.4 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ (12.8) (13.8) (14.9) (16.1) (17.4) $ $ $ $ $ Financing Activities Issue of equity Equity retirement or treasury buybacks Dividends paid New debt / borrowings Retirement or repayment of debt 7.5 8.8 10.2 11.8 13.6 2.00 2.00 2.00 2.00 2.00 Cash flow from financing activities (9.50) (10.81) (12.25) (13.84) (15.61) 8.6 Net cash flow for the year Beginning cash balance Ending cash balance 43 1.0 5.4 0.4 5.4 5.8 7.5 5.8 13.4 10.8 22.0 13.4 22.0 32.8 Forecast +3 +2 +4 +5 Debt & Dividend Payment Schedule Year Cash balance before debt & dividends Debt drawn to meet min balance Debt repaid Dividends paid Ending cash balance +1 1.0 6.0 2.0 7.5 7.0 7.0 2.0 8.8 7.0 2.0 10.2 2.0 11.8 7.0 2.0 13.6 $ 1.0 Debt Schedules Long term debt +4 Opening balance Debt added Debt repaid Ending balance Interest +1 40.0 6.0 2.0 44.0 2.5 +2 44.0 7.0 2.0 49.0 2.8 Forecast +3 49.0 7.0 2.0 54.0 3.1 54.0 7.0 2.0 59.0 3.4 +5 59.0 7.0 2.0 64.0 3.7 un 8% +2 8% 57% 12% Forecast +3 8% 56% 12% 8% 7% 58% 12% 8% 7% 6% 8% 54% 12% 8% Historical -2 -1 Base Year 6.2% 9.7% 51.7% 55.8% 58.6% 6.2% 7.8% 10.1% 4.1% 5.2% 8.3% 6.9% 7.1% 10.1% 8.6% 5.5% 5.0% 35.7% 42.9% 40.0% 14.9 18.7 25.0 9.9 12.6 20.0 12.0 8.4 10.0 3% 2% 7.5 9.0 14.5 8% 7% 6% 7% 6% 6% Performance Drivers / Assumptions Year % Growth in revenues COGS % of revenue SG&A % of revenue R&D % of revenue D&A as % Revenue Effective interest rate Taxes Days Sales Outstanding Days Inventory Outstanding Days Payable Outstanding CapEx as % Revenue Working capital (excluding cash)' Debt repaid Dividend payout ratio Min Required cash balance Days in a year 40% 40% 25 20 10 +4 8% 55% 12% 8% 7% 6% 40% 25 20 10 7% 23 2 50% 40% 25 20 10 7% 23 2 50% 25 20 10 7% 16 2 50% 5.00 360 40% 25 20 10 7% 24 2 50% 7% 22 2 50% $ Income Statements Historical Year -2 -1 Base Year Revenues $ 145.0 $ 154.0 $ 169.0 COGS 75.0 86.0 99.0 Gross profits 70.0 68.0 70.0 SG&A 9.0 12.0 17.0 R&D 6.0 8.0 14.0 EBITDA 55.0 48.0 39.0 Depreciation & amortization 10.0 11.0 17.0 EBIT 45.0 37.0 22.0 Interest expenses 3.0 2.0 EBT 42.0 35.0 20.0 Taxes 15.0 15.0 8.0 Net income 27.0 20.0 12.0 +1 +2 $ 182.5 $ 197.1 105.9 112.4 76.7 84.8 21.9 23.7 14.6 15.8 40.2 45.3 12.8 13.8 27.4 31.5 2.3 2.2 25.1 29.4 10.1 11.8 15.0 17.6 Forecast +3 $ 212.9 119.2 93.7 25.5 17.0 51.1 14.9 36.2 2.0 34.2 13.7 20.5 +4 +5 $ 229.9 $ 248.3 126.5 134.1 103.5 114.2 27.6 29.8 18.4 19.9 57.5 64.6 16.1 17.4 41.4 47.2 1.9 1.8 39.5 45.4 15.8 18.2 23.7 27.2 F F 2.0 F F Balance Sheets Assets Historical -2 -1 Base 3.0 S 2.0 S 1.0 6.0 $ 8.0 S 11.7 4.0 3.0 5.5 13.0 13.0 18.2 $ $ +1 5.4 12.7 $ 5.8 23.9 Cash S Accounts receivable $ Inventory Current assets +2 5.8 13.7 11.4 30.9 Forecast +3 $ 13.4 $ 14.8 11.2 39.3 $ $ +4 22.0 16.0 11 49.0 $ $ +5 32.8 17.2 10.8 60.9 Gross PPE Accumulated depreciation 35.0 12.0 40.0 14.0 44.0 18.0 56.8 12.8 70.6 13.8 85.5 14.9 101.6 16.1 119.0 17.4 56.8 40.0 70.6 40.0 26.0 40.0 18.0 85.5 40.0 Net PPE Good will Other assets Total assets 101.6 40.0 23.0 320 16.0 84.0 26.0 40.0 18.0 97.0 44.0 40.0 0.0 107.9 127.7 149.9 174.4 202.4 Liabilities Accounts payable Current liabilities 2.5 2.5 2.0 2.0 2.8 2.8 2.9 2.9 3.1 3.1 3.3 3.3 in in 3.7 3.7 35.0 10.0 47.5 36.5 12.0 50.5 40.0 15.0 57.8 38.0 15.0 55.9 36.0 30.9 66.9 34.0 44.9 78.9 32.0 59.6 91.6 30.0 75.9 105.9 Long term debt Provisions and other liabilities Total liabilities Shareholders equity Common stock Retained earnings Total shareholders equity 25.0 11.5 36.5 30.0 16.5 46.5 30.0 14.5 44.5 30.0 22.0 52.0 30.0 30.8 60.8 30.0 41.0 71.0 30.0 52.9 82.9 30.0 66.5 96.5 84.0 97.0 107.9 127.7 149.9 174.4 202.4 Total liabilities & shareholders equity BALANCE CHECK 102.2 0.00 Forecast +3 -2 -1 Base Year +1 +2 +4 +5 $ $ 15.0 S 12.8 17.6 S 13.8 20.5 $ 14.9 23.7 16.1 27.2 17.4 (1.2) Cashflow Statements Year Operating Activities Net income Add depreciation & amortization Changes in operating assets/liabilities: Increase in accounts receivable Increase in inventory Increase in accounts payable Cash flow from operations Investing Activities Investments in PPE (CAPEX) Sale of PPE Investments in other assets Sale of other assets Cash flow from investment activities (1.00) (0.3) 0.1 26.6 (1.0) (5.6) 0.2 25.0 (1.1) 0.2 0.2 34.7 (0.2) 0.2 38.6 (1.2) 0.2 0.2 43.8 12.8 13.8 14.9 16.1 17.4 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ (12.8) (13.8) (14.9) (16.1) (17.4) $ $ $ $ $ Financing Activities Issue of equity Equity retirement or treasury buybacks Dividends paid New debt / borrowings Retirement or repayment of debt 7.5 8.8 10.2 11.8 13.6 2.00 2.00 2.00 2.00 2.00 Cash flow from financing activities (9.50) (10.81) (12.25) (13.84) (15.61) 8.6 Net cash flow for the year Beginning cash balance Ending cash balance 43 1.0 5.4 0.4 5.4 5.8 7.5 5.8 13.4 10.8 22.0 13.4 22.0 32.8 Forecast +3 +2 +4 +5 Debt & Dividend Payment Schedule Year Cash balance before debt & dividends Debt drawn to meet min balance Debt repaid Dividends paid Ending cash balance +1 1.0 6.0 2.0 7.5 7.0 7.0 2.0 8.8 7.0 2.0 10.2 2.0 11.8 7.0 2.0 13.6 $ 1.0 Debt Schedules Long term debt +4 Opening balance Debt added Debt repaid Ending balance Interest +1 40.0 6.0 2.0 44.0 2.5 +2 44.0 7.0 2.0 49.0 2.8 Forecast +3 49.0 7.0 2.0 54.0 3.1 54.0 7.0 2.0 59.0 3.4 +5 59.0 7.0 2.0 64.0 3.7