Extract of Collers Industrial plan

Revenue from Collers Product

Revenue from Commercialized Products
NET REVENUE
(+/-) Variation in Inventory of Finished Goods
(-) Cost of Commercialized Products
VALUE OF MANUFACTURED GOODS
(-) Cost of Purchase
(+/-) Variation in the Inventory of raw Materials and Components
(-) Other Cost to outsiders
(-) Personnel Cost
EBITDA
(-) Depreciation
Operating Income EBIT
(+/-) Interest Expenses
INCOME BEFORE TAXES (EBT)
(-) Income Taxes
Net Income

2003
34,312.00
4,902.00
39,214.00
235.00
(4,085.00)
35,364.00
(23,340.00)
196.00
(4,001.00)
(3,231.00)
4,988.00
(1,092.00)
3,896.00
(615.00)
3,281.00
(1,411.00)
1,870.00

2004
35,787.00
5,157.00
40,944.00
246.00
(4,298.00)
36,892.00
(24,349.00)
205.00
(4,056.00)
(3,456.00)
5,236.00
(1,210.00)
4,026.00
(557.00)
3,469.00
(1,492.00)
1,977.00

2005
37,326.00
5,425.00
42,705.00
256.00
(4,521.00)
38,440.00
(25,370.00)
214.00
(4,101.00)
(3,694.00)
5,489.00
(1,200.00)
4,289.00
(454.00)
3,835.00
(1,649.00)
2,186.00

0.142865
0.125006
0.005993
-0.83333

0.144103
0.125953
0.006008
-0.83343

0.145341
0.127034
0.005995
-0.83336

0.144103
0.125998
0.005999
-0.83338

-0.5952
0.004998
-0.10203
-0.08239

-0.59469 -0.59408 -0.59465

0.005007 0.005011 0.005005
-0.09906 -0.09603 -0.09904
-0.08441 -0.0865 -0.08443

-0.43005

-0.4301 -0.42999 -0.43004

COLLER PROFORMA INCOME STATEMENT - NO SYNERGY '000

1
2
3
4
5
6
7
8
9
#
#
#
#
#

Planned
2003
2004
Revenue from Coller's Product
34,312.00
35,787.00
Revenue from Commercial Product
4,902.00
5,157.00
NET REVENUE
39,214.00
40,944.00
(+/-) Variation in Inventory of Finished Goods 235.00
246.00
(-) Cost of Commercialized Products
(4,085.00)
(4,298.00)
VALUE OF MANUFACTURED GOODS
35,364.00
36,892.00
(-) Cost of Purchase
(23,340.00)
(24,349.00)
(+/-) Variation in the Inventory of raw Materials 196.00
and Components
205.00
(-) Other Cost to outsiders
(4,001.00)
(4,056.00)
(-) Personnel Cost
(3,231.00)
(3,456.00)
EBITDA
4,988.00
5,236.00
(-) Depreciation
(1,092.00)
(1,210.00)
Operating Income EBIT
3,896.00
4,026.00
(+/-) Interest Expenses
(615.00)
(557.00)

# INCOME BEFORE TAXES (EBT)

# (-) Income Taxes @ 43%
# Net Income

3,281.00
(1,411.00)
1,870.00

3,469.00
(1,492.00)
1,977.00

2005
37,326.00
5,425.00
42,751.00
256.00
(4,521.00)
38,486.00
(25,370.00)
214.00
(4,101.00)
(3,694.00)
5,535.00
(1,200.00)
4,335.00
(454.00)

2006
38,352.47
5,522.75
43,875.22
263.25
(4,602.11)
39,536.36
(26,105.76)
219.38
(4,343.65)
(3,703.07)
5,603.26
(1,232.89)
4,370.37
(463.26)

2007
39,407.16
5,674.63
45,081.79
270.49
(4,728.67)
40,623.61
(26,823.66)
225.41
(4,463.10)
(3,804.90)
5,757.35
(1,266.80)
4,490.56
(476.00)

2008
40,490.85
5,830.68
46,321.54
277.93
(4,858.71)
41,740.76
(27,561.31)
231.61
(4,585.83)
(3,909.54)
5,915.68
(1,301.64)
4,614.05
(489.09)

3,881.00
(1,649.00)
2,232.00

3,907.11
(1,680.06)
2,227.05

4,014.56
(1,726.26)
2,288.30

4,124.96
(1,773.73)
2,351.23

Projected
2009
2010
41,604.35
42,748.47
5,991.03
6,155.78
47,595.38
48,904.25
285.57
293.43
(4,992.32)
(5,129.61)
42,888.63
44,068.07
(28,319.25)
(29,098.03)
237.98
244.52
(4,711.94)
(4,841.52)
(4,017.05)
(4,127.52)
6,078.36
6,245.52
(1,337.43)
(1,374.21)
4,740.93
4,871.31
(502.54)
(516.36)
4,238.39
(1,822.51)
2,415.88

2011
43,924.06
6,325.06
50,249.12
301.49
(5,270.68)
45,279.94
(29,898.23)
251.25
(4,974.66)
(4,241.03)
6,417.27
(1,412.00)
5,005.27
(530.56)

2012
45,131.97
6,499.00
51,630.97
309.79
(5,415.62)
46,525.14
(30,720.43)
258.15
(5,111.47)
(4,357.65)
6,593.74
(1,450.83)
5,142.91
(545.15)

2013
46,373.10
6,677.73
53,050.82
318.30
(5,564.55)
47,804.58
(31,565.24)
265.25
(5,252.03)
(4,477.49)
6,775.07
(1,490.73)
5,284.34
(560.14)

4,354.95
(1,872.63)
2,482.32

4,474.71
(1,924.13)
2,550.59

4,597.77
(1,977.04)
2,620.73

4,724.20
(2,031.41)
2,692.80

2013
11
5,284.34
3,012.08
1,490.73
(866.11)
(284.83)
3,351.87
46,912.06
20,861.81

DISCOUNTED CASH FLOW - NO SYNERGY '000

Tax rate
WACC =

0.43
7.645

Year
2003
2004
Period
1
2
EBIT
3,896.00
4,026.00
EBIT(1-tax)
2,220.72
2,294.82
Depreciation
1,092.00
1,210.00
Capital Investment
(2,570.00)
(1,200.00)
Change in working capital
(420.00)
(220.00)
FCFF
322.72
2,084.82
Terminal Value 2013 (WACC net of 0.5% growth to perpetuity)
Present Value
299.80
1,799.21
Firm Value

Capital Investment
Change in Working Capital

2005
3
4,335.00
2,470.95
1,200.00
(2,200.00)
(318.00)
1,152.95

2006
4
4,370.37
2,491.11
1,232.89
(563.88)
(264.60)
2,895.52

2007
5
4,490.56
2,559.62
1,266.80
(736.01)
(240.00)
2,850.41

2008
6
4,614.05
2,630.01
1,301.64
(756.25)
(248.70)
2,926.70

2009
7
4,740.93
2,702.33
1,337.43
(777.04)
(255.54)
3,007.18

2010
8
4,871.31
2,776.65
1,374.21
(798.41)
(262.57)
3,089.88

2011
9
5,005.27
2,853.00
1,412.00
(820.37)
(269.79)
3,174.85

2012
10
5,142.91
2,931.46
1,450.83
(842.93)
(277.21)
3,262.16

924.33

2,156.51

1,972.14

1,881.11

1,795.57

1,713.92

1,635.98

1,561.59

36,601.97

Extracted from the proforma balance sheet as the change in Tangible assets from year to year.
Extracted from the balance sheet as the change in Net Asset from year to year

COLLER - PROFORMA BALANCE SHEET WITHOUT SYNERGY

PROJECTED
2006
2007
2008
2009
2010
9,214
9,467
9,728
9,995
10,270
(4,960)
(5,096)
(5,237)
(5,381)
(5,529)
6,326
6,500
6,679
6,862
7,051
1,217
1,250
1,285
1,320
1,356
(1,400)
(1,441)
(1,481)
(1,521)
(1,563)
(1,592)
(1,636)
(1,681)
(1,727)
(1,775)
8,804
9,044
9,292
9,548
9,810
26,764
27,500
28,256
29,033
29,832
(13,088)
(13,447)
(13,817)
(14,197)
(14,588)
13,676
14,052
14,439
14,836
15,244
370
370
370
370
370
(320)
(320)
(320)
(320)
(320)
50
50
50
50
50
8,626
10,126
11,626
13,126
14,626
22,352
24,228
26,115
28,012
29,920
31,156
33,272
35,407
37,560
39,730

Accounts receivable
(Accs payable)
Inventory
Other current assets
(other current Liabilities)
(Severance fund)
Net Working Capital
Tangible assets
(Cumulated depreciation)
Net tangible assets
Intangle assets
(Cumulated depreciation)
Net intangible assets
Financial assets
Net Fixed Capital
Net Invested Capital

2003
8,387
(4,418)
5,158
1,283
(1,020)
(1,389)
8,001
22,800
(10,478)
12,322
370
(250)
120
7,126
19,568
27,569

Planned
2004
8,644
(4,615)
5,609
1,243
(1,163)
(1,497)
8,221
24,000
(11,618)
12,382
370
(320)
50
7,126
19,558
27,779

Shareholders Equity
Cash
Short term Financial Debt
Medium-long term Fin Debt
Net Financial Debt
Net Invested Capital

19,126
650
4,559
4,534
8,443
27,569

21,103
540
3,339
3,877
6,676
27,779

23,289
500
2,108
4,200
5,808
29,097

25,516
500
6,109
5,609
31,125

27,804
500
5,916
5,416
33,220

30,156
500
5,678
5,178
35,333

32,571
500
5,392
4,892
37,463

CALCULATIONS
Capital Investment
Change in Working Capital

2,570
420

1,200
220

2,200
318

564
265

736
240

756
249

777
256

2005
9,016
(4,816)
6,079
1,215
(1,400)
(1,555)
8,539
26,200
(12,818)
13,382
370
(320)
50
7,126
20,558
29,097

2011
10,552
(5,681)
7,245
1,394
(1,606)
(1,824)
10,080
30,652
(14,989)
15,663
370
(320)
50
16,126
31,839
41,919

2012
10,843
(5,837)
7,444
1,432
(1,650)
(1,874)
10,357
31,495
(15,401)
16,094
370
(320)
50
17,626
33,770
44,127

2013
11,141
(5,997)
7,649
1,471
(1,696)
(1,925)
10,642
32,361
(15,825)
16,536
370
(320)
50
19,126
35,712
46,355

35,054
500
5,057
4,557
39,611

37,604
500
4,672
4,172
41,776

40,225
500
4,234
3,734
43,959

42,918
500
3,744
3,244
46,162

798
263

820
270

843
277

866
285

ALFA COLLER PROFORMA INCOME STATEMENT - WITH SYNERGY '000

1
2
3
4
5
6
7
8
9
10
11
12
13
14

2002
32,897.00

Revenue from Collers Product

Revenue from Commercial Product
NET REVENUE
(+/-) Variation in Inventory of Finished Goods
(-) Cost of Commercialized Products
VALUE OF MANUFACTURED GOODS
(-) Cost of Purchase
(+/-) Variation in the Inventory of raw Materials and Components
(-) Other Cost to outsiders
(-) Personnel Cost
EBITDA
(-) Depreciation
Operating Income EBIT
(+/-) Interest Expenses

15 INCOME BEFORE TAXES (EBT)

16 (-) Income Taxes @ 43%
17 Net Income

Coller's Industrial Plan

2003
2004
2005
33,390.46
34,392.17
35,423.93

2006
36,486.65

2007
37,581.25

Formulated Hypothesis for 2006-2013

2008
2009
2010
2011
38,520.78
39,291.20
39,880.57
40,279.37

2012
40,480.77

33,390.46
200.34

34,392.17
206.35

35,423.93
212.54

36,486.65
218.92

37,581.25
225.49

38,520.78
231.12

39,291.20
235.75

39,880.57
239.28

40,279.37
241.68

40,480.77
242.88

33,590.80
(21,369.89)
166.95
(3,205.48)
(2,888.27)
6,294.10
(938.27)
5,355.83
(567.72)

34,598.52
(22,010.99)
171.96
(3,301.65)
(2,974.92)
6,482.92
(966.42)
5,516.50
(584.75)

35,636.48
(22,671.32)
177.12
(3,400.70)
(3,064.17)
6,677.41
(995.41)
5,682.00
(602.29)

36,705.57
(23,351.46)
182.43
(3,502.72)
(3,156.10)
6,877.73
(1,025.27)
5,852.46
(620.36)

37,806.74
(24,052.00)
187.91
(3,607.80)
(3,250.78)
7,084.07
(1,056.03)
6,028.03
(638.97)

38,751.91
(24,653.30)
192.60
(3,698.00)
(3,332.05)
7,261.17
(1,082.43)
6,178.73
(654.95)

39,526.95
(25,146.37)
196.46
(3,771.96)
(3,398.69)
7,406.39
(1,104.08)
6,302.31
(668.04)

40,119.85
(25,523.56)
199.40
(3,828.53)
(3,449.67)
7,517.49
(1,120.64)
6,396.84
(678.07)

40,521.05
(25,778.80)
201.40
(3,866.82)
(3,484.17)
7,592.66
(1,131.85)
6,460.81
(684.85)

40,723.65
(25,907.69)
202.40
(3,886.15)
(3,501.59)
7,630.62
(1,137.51)
6,493.12
(688.27)

4,788.11
(2,058.89)
2,729.22

4,931.75
(2,120.65)
2,811.10

5,079.71
(2,184.27)
2,895.43

5,232.10
(2,249.80)
2,982.30

5,389.06
(2,317.30)
3,071.76

5,523.79
(2,375.23)
3,148.56

5,634.26
(2,422.73)
3,211.53

5,718.78
(2,459.07)
3,259.70

5,775.97
(2,483.67)
3,292.30

5,804.85
(2,496.08)
3,308.76

DISCOUNTED CASH FLOW '000

Tax rate
WACC =
Year
Period
EBIT
EBIT(1-tax)
Depreciation
FCInv
WCInv
FCFF
Terminal Value 2013 (discounted using WACC)
Present Value
Firm Value
Value of Synergy
Workings
Capital Investment
Change in Working Capital

0.43
7.645
2003
1
5,355.83
3,052.82
938.27
(138.18)
587.80
4,440.72

2004
2
5,516.50
3,144.41
966.42
(611.05)
(209.80)
3,289.99

2005
3
5,682.00
3,238.74
995.41
(629.38)
(216.09)
3,388.69

2006
4
5,852.46
3,335.90
1,025.27
(648.26)
(222.57)
3,490.35

2007
5
6,028.03
3,435.98
1,056.03
(667.71)
(229.25)
3,595.06

2008
6
6,178.73
3,521.88
1,082.43
(573.11)
(196.77)
3,834.43

2009
7
6,302.31
3,592.32
1,104.08
(469.95)
(161.35)
4,065.09

2010
8
6,396.84
3,646.20
1,120.64
(359.51)
(123.44)
4,283.89

2011
9
6,460.81
3,682.66
1,131.85
(243.27)
(83.52)
4,487.72

2012
10
6,493.12
3,701.08
1,137.51
(122.85)
(42.18)
4,673.55

4,125.34

2,839.27

2,716.75

2,599.52

2,487.35

2,464.55

2,427.24

2,376.23

2,312.49

2,237.22

54,731.42
18,129.45

Derived from the balance sheet as the change in Tangible assets from one year to the other.
Derived from the balance sheet as the change in Net Asset from one year to the other

2013
40,480.77
40,480.77
242.88
40,723.65
(25,907.69)
202.40
(3,886.15)
(3,501.59)
7,630.62
(1,137.51)
6,493.12
(688.27)
5,804.85
(2,496.08)
3,308.76

2013
11
6,493.12
3,701.08
1,137.51
4,838.59
63,290.85
28,145.47

ALFA COLLER PROFORMA BALANCE SHEET WITH SYNERGY

Accounts receivable
(Accs payable)
Inventory
Other current assets
(other current Liabilities)
(Severance fund)
Net Working Capital
Tangible assets
(Cumulated depreciation)
Net tangible assets
Intangle assets
(Cumulated depreciation)
Net intangible assets
Financial assets
Net Fixed Capital
Net Invested Capital
Shareholders Equity
Cash
Short term Financial Debt
Medium-long term Financial Debt
Net Financial Debt
Net Invested Capital

Capital Investment
Change in Working Capital

2003
7,012
(4,060)
5,375
1,089
(1,180)
(1,242)
6,993
20,368
(10,478)
9,890
370
(250)
120
7,126
17,136
24,129

PLANNED
2004
2005
7,222
7,439
(4,182)
(4,308)
5,536
5,702
1,121
1,155
(1,215)
(1,251)
(1,279)
(1,318)
7,203
7,419
20,979
21,609
(11,618) (12,818)
9,361
8,791
370
370
(320)
(320)
50
50
7,126
7,126
16,537
15,967
23,740
23,386

PROJECTED
2009
2010
8,251
8,375
(4,778)
(4,849)
6,324
6,419
1,281
1,300
(1,388)
(1,409)
(1,461)
(1,483)
8,229
8,352
23,968
24,327
(11,720) (11,896)
12,247
12,431
370
370
(320)
(320)
50
50
17,526
20,126
29,823
32,607
38,052
40,960

2006
7,662
(4,437)
5,873
1,189
(1,289)
(1,357)
7,642
22,257
(10,884)
11,373
370
(320)
50
9,726
21,149
28,791

2007
7,892
(4,570)
6,049
1,225
(1,328)
(1,398)
7,871
22,925
(11,210)
11,714
370
(320)
50
12,326
24,090
31,961

2008
8,089
(4,684)
6,200
1,256
(1,361)
(1,433)
8,068
23,498
(11,490)
12,007
370
(320)
50
14,926
26,983
35,051

31,746
2,198
2,414
216
31,961

34,894
2,198
2,355
157
35,051

38,106
2,198
2,145
(53)
38,052

668
229

573
197

470
161

19,985
2,348
6,492

22,796
2,238
3,182

25,692
2,398
92

4,144
24,129

944
23,740

(2,306)
23,386

28,674
2,198
2,315
117
28,791

138
(588)

611
210

629
216

648
223

2011
8,459
(4,898)
6,483
1,313
(1,423)
(1,498)
8,436
24,570
(12,015)
12,555
370
(320)
50
22,726
35,331
43,767

2012
8,501
(4,922)
6,516
1,320
(1,430)
(1,506)
8,478
24,693
(12,075)
12,618
370
(320)
50
25,326
37,994
46,472

2013
8,501
(4,922)
6,516
1,320
(1,430)
(1,506)
8,478
24,693
(12,075)
12,618
370
(320)
50
27,926
40,594
49,072

41,366
2,198
1,792
(406)
40,960

44,658
2,198
1,308
(890)
43,767

47,967
2,198
704
(1,494)
46,472

51,275
2,298
95
(2,203)
49,072

360
123

243
84

123
42