DCF Excel File

Profit and loss statement of Automotive Supplier GmbH (actual)
Actual Actual Actual
in million year t-2 t-1 t0
Revenues 1,165.0 1,347.0 1,485.0
(+) Changes in finished goods, inventories and work in progress 14.4 17.2 11.8
Total revenues 1,179.4 1,364.2 1,496.8
(-) Cost of materials 590.1 691.0 759.8
(-) Cost of purchased services 48.0 71.3 61.0
Gross profit 541.3 601.9 676.0
(-) Personnel expenses 318.4 341.1 365.2
(-) Depreciation 43.1 46.4 56.6
(-) Amortization of goodwill 7.4 10.1 10.1
(-) Other operating expenses 129.7 163.7 179.6
(+) Other operating income 13.2 16.7 11.3
Earnings before interest and taxes (EBIT) 55.9 57.3 75.8
(+) Income from participations 7.0 10.2 15.8
(+) Interest income 1.1 1.2 1.1
(-) Interest expenses 12.9 12.6 16.5
Earnings before taxes (EBT) 51.1 56.1 76.2
(-) Taxes on income 18.2 19.3 27.5
Earnings after taxes (EAT) 32.9 36.8 48.7
Minority interests 0.0 0.6 0.9

Net income (EATM) 32.9 36.2 47.8
(+) Balance sheet profit at the beginning of the financial year 41.0 54.1 65.8
(-) Allocation to reserves 4.5 5.3 6.1
(-) Dividend payments 15.3 19.2 24.4
Balance sheet profit at the end of the financial year 54.1 65.8 83.1
Total Assets of Automotive Supplier GmbH (actual)
Intangible 74.4 117.8 106.8
Thereof goodwill 60.7 100.0 89.9
Thereof other intangible assets 13.7 17.8 16.9
Tangible assets 184.8 197.8 241.3
Thereof land and buildings 95.5 98.7 113.1
Thereof technical equipment and machines 41.6 46.3 61.3
Thereof other tangible assets 47.7 52.8 66.9
Financial assets 10.3 14.9 13.1
Fixed assets 269.5 330.5 361.2
Raw materials and supplies 54.0 56.5 62.5
Work in progress 32.2 38.6 44.0
Finished goods and merchandise 27.5 38.3 44.7
Prepayments on inventories 0.0 1.1 0.9
Inventories 113.7 134.5 152.1
Trade receivables 150.2 159.3 233.5
Receivables from partners 4.2 6.1 4.1
Other assets 21.1 44.5 43.7
Receivables and other assets 175.5 209.9 281.3
Liquid assets 32.2 35.9 32.9

Current assets 321.4 380.3 466.3
Total assets 590.9 710.8 827.5

Total equity and liabilities (actual)
Subscribed capital 64.5 80.0 80.0
Reserve 10.0 15.3 21.4
Net income for the year 54.1 65.8 83.1
Equity 128.6 161.1 184.5
Long-term provisions 35.3 36.2 39.5
Short-term provisions 50.3 49.4 63.6
Provisions 85.6 85.6 103.1
Long-term bank debt 75.9 87.8 117.2
Short-term bank debt 60.3 75.8 69.5
Other long-term interest-bearing liabilities 0.0 0.0 0.0
Trade payables 117.6 158.5 167.2
Payables to partners 60.4 34.5 65.2
Payables to affiliated companies 10.2 11.9 7.8
Other liabilities 50.3 82.3 96.8
Liabilities 376.7 452.3 526.9
Total equity and liabilities 590.9 710.8 827.5

Profit and loss statement of Automotive Supplier GmbH: Assumptions
year t-2 t-1 t0
Growth of revenues in % 15.6% 10.2%
Changes in finished goods, inventories and work in progress
Cost of materials to total revenues in % 50.0% 50.7% 50.8%
Cost of purchased services to total revenues in % 4.1% 5.2% 4.1%
365.2
thereof variable 60% 219.1
thereof fixed 40% 146.1
growth of fixed personnel expenses in %
Depreciation expense ratio (average year -1 and 0 of fixed assets of the previous year) 25.1% 28.6%
Amortization of goodwill 7.4 10.1 10.1
Other operating expenses 179.6
variable 30% 53.9
fixed 70% 125.7
growth of fixed other operating expenses in %
fixed costs
Other operating income 13.2 16.7 11.3
Income from participations 7.0 10.2 15.8
Interest rate (deposit) 3.7% 3.1%
Interest ration (loans) 6.0% 7.0%

Tax rate 35.6% 34.4% 36.1%
Allocation to reserves ratio 13.7% 14.6% 12.8%
Pay-out ratio
Total Assets of Automotive Supplier GmbH: Assumptions
year t-2 t-1 t0
Intangibel assets 74.4 117.8 106.8
thereof goodwill 60.7 100.0 89.9
thereof other intangible assets 13.7 17.8 16.9
thereof land and buildings 95.5 98.7 113.1
thereof technical equipment and machines 41.6 46.3 61.3
thereof other tangible assets 47.7 52.8 66.9
Days sales outstanding 46.4 42.6 56.6
Other assets to revenues in % 1.8% 3.3% 2.9%

Total equity and liabilities of Automotive Supplier GmbH: Assumptions
year t-2 t-1 t0
Growth of change of long-term provisions 0.9 3.3
Short-term provision to revenues in % 4.3% 3.7% 4.3%
Change of long-term bank debt 11.9 29.4
Change of short-term bank debt 15.5 -6.3
Change of other long-term interest-bearing liabilities 0.0 0.0
Payments received to inventories in % 1.8% 1.1% 2.1%
Days payables outstanding 67.3 75.9 74.4
Other liabilities to revenues in % 4.3% 6.1% 6.5%

Other assumptions
Last actual year 12/31/2009
Date of valuation 8/31/2010
Year in days 365.0
Days between date of valuation and first plan year 122.0
Assumptions terminal value (TV)
Growth rate in terminal value 1.0%
Assumptions non-operating assets
Non-operating assets at date of valuation 0.0

Cost of Capital: Assumptions
Cost of equity
Risk-free rate 5.0%
Market risk premium 5.5%
Beta (levered) 0.79
Beta (unlevered) 0.64
Individual risk agio 0.0%
Cost of debt
Risk premium 1.5%

Plan Plan Plan Plan Plan
t1 t2 t3 t4 t5
2.5% 3.2% 6.7% 4.9% 4.1%
-5.2 3.1 5.9 4.5 3.9
51.0% 51.0% 51.0% 51.0% 51.0%
4.5% 4.3% 4.1% 4.1% 4.1%
14.76% 14.76% 14.76% 14.76% 14.76%
150.5 155.0 159.6 164.4 169.3
3.0% 3.0% 3.0% 3.0% 3.0%
26.9% 26.9% 26.9% 26.9% 26.9%
10.1 10.1 10.1 10.1 10.1
3.63% 3.63% 3.63% 3.63% 3.63%
129.5 133.4 137.4 141.5 145.7
3.0% 3.0% 3.0% 3.0% 3.0%
0.0 0.0 0.0 4.0 4.0
12.8 12.0 9.8 7.4 2.4
0.0 0.0 0.0 0.0 0.0
3.0% 3.0% 3.0% 3.0% 3.0%
6.5% 6.5% 6.5% 6.5% 6.5%

38.65% 38.65% 38.65% 38.65% 38.65%
0.0 0.0 0.0 0.0 0.0
15.0% 15.0% 15.0% 15.0% 15.0%
30.0% 30.0% 30.0% 30.0% 30.0%

t1 t2 t3 t4 t5
96.7 86.6 76.5 66.4 56.3
79.8 69.7 59.6 49.5 39.4
16.9 16.9 16.9 16.9 16.9
241.3 255.0 282.0 295.0 305.0
120.0 130.0 130.0 130.0 130.0
65.0 75.0 80.0 85.0 85.0
70.0 77.0 85.0 90.0 90.0
13.1 13.1 13.1 13.1 13.1
63.7 66.1 70.6 74.0 76.1
42.5 44.1 47.1 49.4 51.4
41.0 42.5 45.4 47.6 49.5
0.9 0.9 0.9 0.9 0.9
57.6 56.5 56.5 56.5 56.5
4.1 4.1 4.1 4.1 4.1
2.9% 2.9% 2.9% 2.9% 2.9%

t1 t2 t3 t4 t5
80.0 80.0 80.0 80.0 80.0
3.0 3.0 3.0 3.0 3.0
4.3% 4.3% 4.3% 4.3% 4.3%
-12.2 10.0 -5.0 -14.4 -13.6
5.5 0.0 -10.0 -5.0 -5.0
0.0 0.0 0.0 0.0 0.0
2.1% 2.1% 2.1% 2.1% 2.1%
73.4 73.4 73.4 73.4 73.4
56.0 43.0 40.0 35.0 22.0
7.8 7.8 7.8 7.8 7.8
6.5% 6.5% 6.5% 6.5% 6.5%

A258: Assumes cashflows occur in mid year
A321: Besitzer:
Sales instead of cost of goods sold has been used
H280: Input:
WACC less 1%
I254: Note:
Present value discount factor based on the discount rate / WACC and the number of months remaining this year
I259: Note:
Input from WACC calculation schedule
I260: Input:
Growth rate to perpetuity based on, inter alia, the long term inflation rate and the maturity of the company
M262: Note : Equity value in main model differs by c.1% from equity value in sensitivity table for the same perpetuity rate as in the table the discount rate is
an input and in the main model the discount rate /WACC is a calculation from the WACC calculation sheet. As a result there is a rounding difference
Q253: Note:
Calculated on the year 5 cash flow, the discount rate / WACC and the perpetuity growth rate
=Year 5 cash flow * (1+perpetuity growth rate) / (WACC - perpetuity growth rate)
R260: Input:
Company historic net debt from latest Balance Sheet
Profit and loss statement of Automotive Supplier GmbH
in million Year t-2 t-1 t0
Revenues 1,165.0 1,347.0 1,485.0
(+) Changes in finished goods, inventories and work in progress 14.4 17.2 11.8
Total revenues 1,179.4 1,364.2 1,496.8
(-) Cost of materials 590.1 691.0 759.8
(-) Cost of purchased services 48.0 71.3 61.0
Gross profit 541.3 601.9 676.0
(-) Personnel expenses 318.4 341.1 365.2
(-) Depreciation 43.1 46.4 56.6
(-) Amortization of goodwill 7.4 10.1 10.1
(-) Other operating expenses 129.7 163.7 179.6
(+) Other operating income 13.2 16.7 11.3
(+) Income from participations 7.0 10.2 15.8
(+) Interest income 1.1 1.2 1.1
(-) Interest expenses 12.9 12.6 16.5
(+) Financial result -4.8 -1.2 0.4
Earnings before taxes (EBT) 51.1 56.1 76.2
(-) Taxes on income 18.2 19.3 27.5
Earnings after taxes (EAT) 32.9 36.8 48.7
Net income (EATM) 32.9 36.2 47.8
(+) Balance sheet profit at the beginning of the financial year 41.0 54.1 65.8
(-) Allocation to reserves 4.5 5.3 6.1
(-) Dividend payments 15.3 19.2 24.4
Balance sheet profit at the end of the financial year 54.1 65.8 83.1
Total Assets of Automotive Supplier GmbH
Intangible 74.4 117.8 106.8
Thereof goodwill 60.7 100.0 89.9
Thereof other intangible assets 13.7 17.8 16.9
Thereof land and buildings 95.5 98.7 113.1
Thereof technical equipment and machines 41.6 46.3 61.3
Thereof other tangible assets 47.7 52.8 66.9
Fixed assets 269.5 330.5 361.2
Inventories 113.7 134.5 152.1
Trade receivables 150.2 159.3 233.5
Other assets 21.1 44.5 43.7
Receivables and other assets 175.5 209.9 281.3
Liquid assets 32.2 35.9 32.9
Current assets 321.4 380.3 466.3
Total assets 590.9 710.8 827.5
Check sum 0.0 0.0 0.0

Total equity and liabilities of Automotive Supplier GmbH
Reserve 10.0 15.3 21.4
Net income for the year 54.1 65.8 83.1
Equity 128.6 161.1 184.5
Long-term provisions 35.3 36.2 39.5
Short-term provisions 50.3 49.4 63.6
Provisions 85.6 85.6 103.1
Trade payables 117.6 158.5 167.2
Other liabilities 50.3 82.3 96.8
Liabilities 376.7 452.3 526.9
Total equity and liabilities 590.9 710.8 827.5
Check sum 0.0 0.0 0.0

1 2 3 4 5
t1 t2 t3 t4 t5
1,522.1 1,570.8 1,676.1 1,758.2 1,830.3
-5.2 3.1 5.9 4.5 3.9
1,516.9 1,573.9 1,682.0 1,762.7 1,834.2
773.6 802.7 857.8 899.0 935.4
68.3 67.7 69.0 72.3 75.2
675.0 703.5 755.2 791.5 823.6
375.1 386.8 406.9 423.8 439.4
64.8 68.5 75.7 79.2 81.9
10.1 10.1 10.1 10.1 10.1
184.7 190.4 198.2 209.3 220.2
12.8 12.0 9.8 7.4 2.4
53.1 59.8 74.0 76.4 74.4
0.0 0.0 0.0 0.0 0.0
1.0 1.1 1.2 1.2 1.2
16.4 15.7 15.1 13.7 11.9
-15.4 -14.7 -13.9 -12.5 -10.6
37.8 45.1 60.1 63.9 63.7
14.6 17.4 23.2 24.7 24.6
23.2 27.7 36.9 39.2 39.1
0.0 0.0 0.0 0.0 0.0
23.2 27.7 36.9 39.2 39.1
83.1 95.8 111.1 131.4 152.9
3.5 4.2 5.5 5.9 5.9
6.9 8.3 11.1 11.8 11.7
95.8 111.1 131.4 152.9 174.4

t1 t2 t3 t4 t5
96.7 86.6 76.5 66.4 56.3
79.8 69.7 59.6 49.5 39.4
16.9 16.9 16.9 16.9 16.9
255.0 282.0 295.0 305.0 305.0
120.0 130.0 130.0 130.0 130.0
65.0 75.0 80.0 85.0 85.0
70.0 77.0 85.0 90.0 90.0
13.1 13.1 13.1 13.1 13.1
364.8 381.7 384.6 384.5 374.4
63.7 66.1 70.6 74.0 76.1
42.5 44.1 47.1 49.4 51.4
41.0 42.5 45.4 47.6 49.5
0.9 0.9 0.9 0.9 0.9
148.1 153.6 164.0 171.9 177.9
240.2 243.2 259.4 272.2 283.3
4.1 4.1 4.1 4.1 4.1
44.1 45.6 48.6 51.0 53.1
288.4 292.8 312.2 327.2 340.5
35.5 39.2 40.3 41.4 46.9
472.0 485.6 516.5 540.6 565.3
836.8 867.3 901.1 925.1 939.7
0.0 0.0 0.0 0.0 0.0

t1 t2 t3 t4 t5
80.0 80.0 80.0 80.0 80.0
24.9 29.0 34.6 40.4 46.3
95.8 111.1 131.4 152.9 174.4
200.7 220.1 245.9 273.4 300.7
13.0 13.0 13.0 13.0 13.0
42.5 45.5 48.5 51.5 54.5
65.5 67.5 72.1 75.6 78.7
108.0 113.0 120.6 127.1 133.2
105.0 115.0 110.0 95.6 82.0
75.0 75.0 65.0 60.0 55.0
0.0 0.0 0.0 0.0 0.0
3.1 3.2 3.4 3.6 3.7
169.3 175.0 186.4 195.3 203.2
56.0 43.0 40.0 35.0 22.0
7.8 7.8 7.8 7.8 7.8
98.9 102.1 108.9 114.3 119.0
515.1 521.2 521.6 511.6 492.7
836.8 867.3 901.1 925.1 939.7
0.0 0.0 0.0 0.0 0.0

in million t-2 t-1 t0
revenues 1165.0 1347.0 1485.0
EBITDA 106.4 113.8 142.5
EBITA 63.3 67.4 85.9
EBIT 55.9 57.3 75.8
EBT 51.1 56.1 76.2
EAT 32.9 36.8 48.7
EATM 32.9 36.2 47.8
in % of total revenues t-2 t-1 t0
EBITDA 9.1% 8.4% 9.6%
EBITA 5.4% 5.0% 5.8%
EBIT 4.8% 4.3% 5.1%
EBT 4.4% 4.2% 5.1%
EAT 2.8% 2.7% 3.3%
EATM 2.8% 2.7% 3.2%
cost of materials 590.1 691.0 759.8
cost of purchased services 48.0 71.3 61.0
personnel expenses 318.4 341.1 365.2
depreciation 43.1 46.4 56.6
other operating expenses 129.7 163.7 179.6
in % of total revenues t-2 t-1 t0
cost of materials 50.0% 50.7% 50.8%
cost of purchased services 4.1% 5.2% 4.1%
personnel expenses 27.0% 25.0% 24.4%
depreciation 3.7% 3.4% 3.8%
other operating expenses 11.0% 12.0% 12.0%

Calculation of the Automotive Supplier GmbHs working capital
in Mio. t-2 t-1 t0
raw materials and supplies 54.0 56.5 62.5
unfinished goods and services 32.2 38.6 44.0
finished goods and merchandise 27.5 38.3 44.7
prepayments 0.0 1.1 0.9
trade receivables 150.2 159.3 233.5
receivables from affiliated companies 4.2 6.1 4.1
other current assets 21.1 44.5 43.7
payments received 2.0 1.5 3.2
trade payables 117.6 158.5 167.2
other short-term liabilities 50.3 82.3 96.8
working capital 119.3 102.1 166.2
working capital ratio 10.2% 7.6% 11.2%
Calculation of the Automotive Supplier GmbHs capital expenditure
in Mio. t-2 t-1 t0

Intangible assets 74.4 117.8 106.8
Fixed assets 184.8 197.8 241.3
Depreciation 43.1 46.4 56.6
Amortization 7.4 10.1 10.1
Capital Expenditure 112.9 99.2
Calculation of the Automotive Supplier GmbHs financial debt
Short-term bank deb 60.3 75.8 69.5
Payables to partners* 60.4 34.5 65.2
Payables to affiliated companies* 10.2 11.9 7.8
Financial debt 206.8 210.0 259.7

*The payables to partners and affiliated companies are assumed to be loans granted to the Automotive Supplier G
(loan vs. trade payables) has to be put into question for the company analysis.
t1 t2 t3 t4 t5
1522.1 1570.8 1676.1 1758.2 1830.3
128.1 138.4 159.9 165.7 166.4
63.2 69.9 84.1 86.5 84.5
53.1 59.8 74.0 76.4 74.4
37.8 45.1 60.1 63.9 63.7
23.2 27.7 36.9 39.2 39.1
23.2 27.7 36.9 39.2 39.1
t1 t2 t3 t4 t5
8.4% 8.8% 9.5% 9.4% 9.1%
4.2% 4.5% 5.0% 4.9% 4.6%
3.5% 3.8% 4.4% 4.3% 4.1%
2.5% 2.9% 3.6% 3.6% 3.5%
1.5% 1.8% 2.2% 2.2% 2.1%
1.5% 1.8% 2.2% 2.2% 2.1%
t1 t2 t3 t4 t5
773.6 802.7 857.8 899.0 935.4
68.3 67.7 69.0 72.3 75.2
375.1 386.8 406.9 423.8 439.4
64.8 68.5 75.7 79.2 81.9
184.7 190.4 198.2 209.3 220.2
t1 t2 t3 t4 t5
51.0% 51.0% 51.0% 51.0% 51.0%
4.5% 4.3% 4.1% 4.1% 4.1%
24.7% 24.6% 24.2% 24.0% 24.0%
4.3% 4.4% 4.5% 4.5% 4.5%
12.2% 12.1% 11.8% 11.9% 12.0%

t1 t2 t3 t4 t5
63.7 66.1 70.6 74.0 76.1
42.5 44.1 47.1 49.4 51.4
41.0 42.5 45.4 47.6 49.5
0.9 0.9 0.9 0.9 0.9
240.2 243.2 259.4 272.2 283.3
4.1 4.1 4.1 4.1 4.1
44.1 45.6 48.6 51.0 53.1
3.1 3.2 3.4 3.6 3.7
169.3 175.0 186.4 195.3 203.2
98.9 102.1 108.9 114.3 119.0
165.2 166.0 177.4 185.9 192.5
10.9% 10.6% 10.6% 10.6% 10.5%
diture
t1 t2 t3 t4 t5
96.7 86.6 76.5 66.4 56.3
255.0 282.0 295.0 305.0 305.0
64.8 68.5 75.7 79.2 81.9
10.1 10.1 10.1 10.1 10.1
78.5 95.5 88.7 89.2 81.9
t1 t2 t3 t4 t5
105.0 115.0 110.0 95.6 82.0
75.0 75.0 65.0 60.0 55.0
0.0 0.0 0.0 0.0 0.0
56.0 43.0 40.0 35.0 22.0
7.8 7.8 7.8 7.8 7.8
243.8 240.8 222.8 198.4 166.8

e Automotive Supplier GmbH. The type of liability
Cash flow statement
in million t-1 t0
EATM 36.2 47.8

Depreciation and amortisation on intangible assets 56.5 66.7
Change in accruals 0.0 17.5
Change in trade receivables -9.1 -74.2
Change in receivables from affiliated companies -1.9 2.0
Change in other assets -23.4 0.8
Change in raw materials and supplies -20.8 -17.6
Change in payments received -0.5 1.7
Change in trade payables 40.9 8.7
Change in other liabilities 32.0 14.5
Cash inflow from operating activities 109.9 67.9
Change in intangible assets 43.4 -11.0

Change in tangible assets 13.0 43.5
Change in financial assets -4.6 1.8
Depreciation and amortisation on intangible assets 56.5 66.7
Cash outflow from investing activities 108.3 101.0
Change interest-bearing liabilities 3.2 49.7

Dividends / capital contribution -3.7 -24.4
Change in minorities 11.8 1.2
Cash inflow/outflow from financing activities 11.3 26.5
Net cash flow 12.9 -6.6
Liquid assets as at 1 January 32.2 35.9

Liquid assets as at 31 January 35.9 32.9
Difference !=! Net cash flow 3.7 -3.0

Checksum 9.2 -3.6
t1 t2 t3 t4 t5
23.2 27.7 36.9 39.2 39.1
74.9 78.6 85.8 89.3 92.0
4.9 5.1 7.5 6.5 6.1
-6.7 -3.0 -16.3 -12.7 -11.2
0.0 0.0 0.0 0.0 0.0
-0.4 -1.4 -3.1 -2.4 -2.1
4.0 -5.5 -10.4 -7.9 -6.0
-0.1 0.1 0.2 0.2 0.1
2.1 5.7 11.3 8.9 7.9
2.1 3.2 6.8 5.3 4.7
103.9 110.5 118.9 126.5 130.7
-10.1 -10.1 -10.1 -10.1 -10.1
13.7 27.0 13.0 10.0 0.0
0.0 0.0 0.0 0.0 0.0
74.9 78.6 85.8 89.3 92.0
78.5 95.5 88.7 89.2 81.9
-15.9 -3.0 -18.0 -24.4 -31.6
-6.9 -8.3 -11.1 -11.8 -11.7
0.0 0.0 0.0 0.0 0.0
-22.8 -11.3 -29.1 -36.2 -43.3
2.6 3.7 1.1 1.1 5.5
32.9 35.5 39.2 40.3 41.4
35.5 39.2 40.3 41.4 46.9
2.6 3.7 1.1 1.1 5.5

0.0 0.0 0.0 0.0 0.0
Calculation of the Automotive Supplier GmbHs operating free cash flows
in million t1 t2 t3
- Adjusted taxes on EBIT 20.5 23.1 28.6
= NOPLAT 32.6 36.7 45.4
+ Depreciation and amortization 74.9 78.6 85.8
+ Changes in long-term provisions 3.0 3.0 3.0
+ Changes in short-term provisions 1.9 2.1 4.5
= Gross cash flow 112.4 120.4 138.8
- Capital expenditure 78.5 95.5 88.7
- Changes in working capital -1.0 0.9 11.3
= Operating free cash flow 34.9 24.0 38.7
Calculation of the Automotive Supplier GmbHs flows to equity
in million t1 t2 t3
- Interest expenses 16.4 15.7 15.1
= Earnings before taxes (EBT)* 36.8 44.1 59.0
- Taxes on EBT* 14.2 17.0 22.8
= Earnings after taxes (EAT) 22.6 27.0 36.2
+ Depreciation and amortization 74.9 78.6 85.8
+ Changes in long-term provisions 3.0 3.0 3.0
+ Changes in short-term provisions 1.9 2.1 4.5
- Capital expenditure 78.5 95.5 88.7
- Changes in working capital -1.0 0.9 11.3
+ Changes in financial debt -15.9 -3.0 -18.0
= Flow to equity 8.9 11.4 11.5

in million t1 t2 t3
Operating free cash flow (entity approach) 34.9 24.0 38.7
- Interest expenses 16.4 15.7 15.1
+ Corporate tax savings on debt interest 6.3 6.1 5.8
+ Decrease/increase in interest-bearing liabilities -15.9 -3.0 -18.0
= Flow to equity (equity approach) 8.9 11.4 11.5
Growth rate in the terminal value 1% 1% Enity Approach
Determination of oFCF oFCF
in million year 5 TV
Total revenues (reported) 1830.3 1848.6
EBIT 74.4 75.1
- Interest expenses (6.5%)*
- Corporate taxes on EBIT 28.7 29.0
- Corporate taxes on EBT
+ Depreciation and amortization 92.0 92.9
Short-term provisions 78.7 79.5
+ Changes in short-term provisions 3.1 0.8
Long-term provisions 54.5 54.5
+ Changes in long-term provisions 3.0 0.0
Tangible fixed assets 361.3 364.9
- Capital expenditure (investments in fixed assets) 81.9 96.6
Working capital 192.5 194.4
- Changes in working capital 6.5 1.9
= Operating free cash flow 55.3 41.3
Financial debt
+ Changes in financial debt
= Flow to equity
=> Terminal value** 608.1
*Attention: In the calculation of the interest expenses in year 5, the financial debt at the end of year 4 is here included as well
The interest expenses in the terminal value in the equity approach is calculated by multiplying the interest rate of 6.5% with t
in the terminal value ( 168.5m)
** For the determination of the discount rates necessary for the calculation of the TV compare 3.3
flows
t4 t5 TV
76.4 74.4 75.1
29.5 28.7 29.0
46.9 45.6 46.1
89.3 92.0 92.9
3.0 3.0 0.0
3.5 3.1 0.8
142.7 143.7 139.8
89.2 81.9 96.7
8.5 6.5 1.9
44.9 55.3 41.2
t4 t5 TV
76.4 74.4 75.1
13.7 11.9 11.0
62.7 62.5 64.1
24.2 24.2 24.8
38.5 38.3 39.4
89.3 92.0 92.9
3.0 3.0 0.0
3.5 3.1 0.8
89.2 81.9 96.7
8.5 6.5 1.9
-24.4 -31.6 1.7
12.1 16.4 36.1

t4 t5 TV
44.9 55.3 41.2
13.7 11.9 11.0
5.3 4.6 4.2
-24.4 -31.6 1.7
12.1 16.4 36.1
Equity Approach
FtE FtE
year 5 TV
74.4 75.1
11.9 11.0
24.2 24.8
92.0 92.9
78.7 79.5
3.1 0.8
54.5 54.5
3.0 0.0
361.3 364.9
81.9 96.6
192.5 194.4
6.5 1.9
166.8 166.8
-31.6 1.7
16.4 36.3
434.7
included as well.
te of 6.5% with the financial debt position

WACC Approach (constant capital structure)
Cost of equity
Risk-free interest rate
Risk-free return (15-30 years) 5.00%
General market risk
Forecast Beta (levered Beta) 0.79
* Market risk premium 5.50% = 9.35%
= Individual market risk premium 4.35%
Company-specific risk
Equity ratio 59.5%
Weighted Average Cost of Capital (W
7.1775%
WACC Approach (target capital structure)
Cost of equity
General market risk
Equity ratio 71.1%
Weighted Average Cost of Capital (W
7.7957%
Enterprise value at the valuation date 600.6
Interest-bearing liabilities at the valuation date 266.6
Equity value at the valuation date 334.0
Equity ratio at the valuation date 55.61%
Debt ratio at the valuation date 44.39%
Terminal Value 606.2
Interest-bearing liabilities in the terminal value 168.5
Equity value in the terminal value 437.7
Equity ratio in the terminal value 72.21%
Debt ratio in the terminal value 27.79%
TV(%) 72.85%
Weighting of the capital structure in the terminal value 86.43%
Weighting of the current capital structure 13.57%
Weighted average equity ratio 71.1%

APV Approach
Cost if equity
General market risk
Forecast Beta (unlevered Beta) 0.64

Equity Approach
Cost if equity
General market risk

Cost of debt
Cost of debt
+ Risik premium 1.50%
= Cost of debt before taxes 6.50% = 3.99%
- Corporate taxes 2.51%
= Cost of debt after taxes 3.99%
Debt ratio 40.5%
d Average Cost of Capital (WACC)

Cost of debt
Cost of debt
+ Risik premium 1.50%
= Cost of debt before taxes 6.50% = 3.99%
- Corporate taxes 2.51%
= Cost of debt after taxes 3.99%
Debt ratio 28.9%
d Average Cost of Capital (WACC)

WACC Approach (constant capital structure)
in million t1 t2
1 2
Discount rate 7.18%
Multiple 0.9766 0.9112
Operating free cash flow 34.9 24.0
Terminal Value
NPV of the cash flows and terminal value 34.0 21.9
+ Sum of the present values of the cash flows 165.4
+ Present value of Terminal Value 493.5
Share of TV in the sum of the cash flows 74.9%
= Enterprise Value 658.9
+ Cash position (liquid assets) 33.3
+ Non-operating assets 0.0
= Entity Value 692.2
- Interest-bearing liabilities 266.6
= Equity value 31/08 year 1 425.6

WACC Approach (target capital structure)
in million t1 t2
1 2
Discount rate 7.80%
Multiple 0.9746 0.9041
Terminal Value
+ Sum of the present values of the cash flows 163.0
+ Present value of Terminal Value 437.5

APV Approach
in million t1 t2
1 2
Discount rate 8.52%
Multiple 0.9723 0.8960
Terminal Value
Discount rate (tax shield) 6.50%
Multiple 0.9787 0.9190
Cash flows of the tax shield 6.3 6.1
Terminal value
Present value of cash flows of the tax shield and terminal value of the tax shie 6.2 5.6
+ Present value of the operating free cash flows 160.3
+ Present value of the terminal value (oFCF) 384.0
+ Present value of the cash flows of the tax shield 24.6
+ Present value of the terminal value (tax shield) 49.5

Equity Approach
in million t1 t2
1 2
Discount rate 9.35%
Multiple 0.9697 0.8868
Flow to equity 8.9 11.4
Terminal value
Present value of flows to equity and present value of the terminal value 8.6 10.1
+ Present value of flows to equity 48.2
+ Present value of the terminal value 293.8

t3 t4 t5 TV
3 4 5 5
0.8502 0.7932 0.7401 0.7401
38.7 44.9 55.3 41.2
666.8
32.9 35.6 40.9 493.5

t3 t4 t5 TV
3 4 5 5
0.8387 0.7781 0.7218 0.7218
38.7 44.9 55.3 41.2
606.2
32.5 35.0 39.9 437.5

t3 t4 t5 TV
3 4 5 5
0.8256 0.7608 0.7011 0.7011
38.7 44.9 55.3 41.2
547.8
31.9 34.2 38.8 384.0
0.8629 0.8102 0.7608 0.7608
5.8 5.3 4.6 4.2
65.1
5.0 4.3 3.5 49.5

t3 t4 t5 TV
3 4 5 5
0.8110 0.7417 0.6783 0.6783
11.5 12.1 16.4 36.1
433.1
9.3 9.0 11.1 293.8

Periodic WACC
01.01.t1 01.01.t2 01.01.t3 01.01.t4 01.01.t5

= = = = =
in million 31.12.t0 31.12.t1 31.12.t2 31.12.t3 31.12.t4
Cost of equity 9.35% 9.35% 9.35% 9.35% 9.35%
Cost of debt after taxes 3.99% 3.99% 3.99% 3.99% 3.99%
Interest-bearing liabilities 259.7 243.8 240.8 222.8 198.4
Periodic equity ratio 55.4% 58.5% 60.2% 63.5% 67.5%
Periodic debt ratio 44.6% 41.5% 39.8% 36.5% 32.5%
Periodic WACC 6.95% 7.12% 7.21% 7.39% 7.60%
Value 01.01.t1 582.0
Value 01.01.t2 587.7
Value 01.01.t3 605.5
Value 01.01.t4 610.5
Value 01.01.t5 610.6
Value 01.01.t6
Operating free cash flow (t+1) 34.9 24.0 38.7 44.9 55.3
= Enterprise Value 609.0 582.0 compounted to date of valuation
- Non-operating assets 0.0

TV
9.35%
3.99%
168.5
72.0%
28.0%
7.85%
601.8
41.2

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Profit and loss statement of Automotive Supplier GmbH (actual)

Actual Actual Actual

in million year t-2 t-1 t0

Revenues 1,165.0 1,347.0 1,485.0

Total revenues 1,179.4 1,364.2 1,496.8

(-) Cost of materials 590.1 691.0 759.8

(-) Cost of purchased services 48.0 71.3 61.0

Gross profit 541.3 601.9 676.0

(-) Personnel expenses 318.4 341.1 365.2

(-) Depreciation 43.1 46.4 56.6

(-) Amortization of goodwill 7.4 10.1 10.1

(-) Other operating expenses 129.7 163.7 179.6

(+) Other operating income 13.2 16.7 11.3

Earnings before interest and taxes (EBIT) 55.9 57.3 75.8

(+) Income from participations 7.0 10.2 15.8

(+) Interest income 1.1 1.2 1.1

(-) Interest expenses 12.9 12.6 16.5

Earnings before taxes (EBT) 51.1 56.1 76.2

(-) Taxes on income 18.2 19.3 27.5

Earnings after taxes (EAT) 32.9 36.8 48.7

Minority interests 0.0 0.6 0.9

(-) Allocation to reserves 4.5 5.3 6.1

(-) Dividend payments 15.3 19.2 24.4

Actual Actual Actual

in million year t-2 t-1 t0

Intangible 74.4 117.8 106.8

Thereof goodwill 60.7 100.0 89.9

Thereof other intangible assets 13.7 17.8 16.9

Tangible assets 184.8 197.8 241.3

Thereof land and buildings 95.5 98.7 113.1

Thereof technical equipment and machines 41.6 46.3 61.3

Thereof other tangible assets 47.7 52.8 66.9

Financial assets 10.3 14.9 13.1

Fixed assets 269.5 330.5 361.2

Raw materials and supplies 54.0 56.5 62.5

Work in progress 32.2 38.6 44.0

Finished goods and merchandise 27.5 38.3 44.7

Prepayments on inventories 0.0 1.1 0.9

Inventories 113.7 134.5 152.1

Trade receivables 150.2 159.3 233.5

Receivables from partners 4.2 6.1 4.1

Other assets 21.1 44.5 43.7

Receivables and other assets 175.5 209.9 281.3

Liquid assets 32.2 35.9 32.9

Total assets 590.9 710.8 827.5

Actual Actual Actual

in million year t-2 t-1 t0

Subscribed capital 64.5 80.0 80.0

Reserve 10.0 15.3 21.4

Net income for the year 54.1 65.8 83.1

Equity 128.6 161.1 184.5

Minority interests 0.0 11.8 13.0

Long-term provisions 35.3 36.2 39.5

Short-term provisions 50.3 49.4 63.6

Provisions 85.6 85.6 103.1

Long-term bank debt 75.9 87.8 117.2

Short-term bank debt 60.3 75.8 69.5

Other long-term interest-bearing liabilities 0.0 0.0 0.0

Short-term bank debt 2.0 1.5 3.2

Trade payables 117.6 158.5 167.2

Payables to partners 60.4 34.5 65.2

Payables to affiliated companies 10.2 11.9 7.8

Other liabilities 50.3 82.3 96.8

Liabilities 376.7 452.3 526.9