EBIT 709 656 713 767 821 margin b 110 115 margin 104 107

Ebit 709 656 713 767 821 margin b 110 115 margin 104

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EBIT 709 656 713 767 821 margin, $/b 10.8 9.8 10.4 11.0 11.5 margin 10.8% 9.6% 10.0% 10.4% 10.7% Interest paid (received) (72) (116) (164) (216) (273) interest rate 8% 8% 8% 8% 8% EBT 781 773 877 984 1,093 Income tax 312 309 351 394 437 rate 40% 40% 40% 40% 40% Net income 469 464 526 590 656 margin, $/b 7.13 6.92 7.70 8.47 9.22 margin 7.13% 6.78% 7.40% 7.98% 8.52% ROE 20% 17% 16% 15% 14% Dividends 0 0 0 0 0 payout ratio 0% 0% 0% 0% 0%
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Balance Sheet at Year-End ($ million) 2006 2006 2007 2008 2009 2010 2011 Assets (pre-) (post-acquisition) Surplus Funds (Plug) 0 4,609 5,120 5,404 5,751 6,164 6,646 Accounts receivables 220 220 234 243 253 264 274 days sales 13 Inventory 650 650 588 612 637 662 689 days sales 38 Land 50 50 44 39 33 27 22 Buildings, gross 100 100 100 100 100 100 100 Depreciation, accumulated 0 0 2.56 5.13 7.69 10.26 12.82 Buildings, net 100 100 97 95 92 90 87 Equipment, gross 1,000 1,000 1,100.00 1,200.00 1,300.00 1,400.00 1,500.00 Depreciation, accumulated 0 0 100 290 462 620 766 Equipment, net 1,000 1,000 1,000 910 838 780 734 PPE 1,150 1,150 1,142 1,044 963 898 843 Enterprise Value (from APV below) 5,415 5,500 Book value of invested capital 0 1,828 Goodwill 50 85 85 85 85 85 85 Total Assets 2,070 6,714 7,169 7,387 7,688 8,072 8,537 Liabilities Necessary to Finance (Plug) 0 594 846 844 840 833 823 Accounts payables 620 620 648 674 701 730 759 days sales 36 Long-term debt 450 3,667 3,373 3,103 2,855 2,627 2,417 Common stock 1,000 1,833 1,833 1,833 1,833 1,833 1,833 Retained earnings 0 0 469 932 1,459 2,049 2,705 Equity 1,000 1,833 2,302 2,766 3,292 3,882 4,538 Purchase price (= EV, set manually, then reset and iterate)
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Total Liabilities & Equity 2,070 6,714 7,169 7,387 7,688 8,072 8,537 Check 0 0 0 0 0 0 0
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Cash Flow Statement for Year ($ million) 2007 2008 2009 2010 2011 Operating Activities Net income 469 464 526 590 656 Depreciation 103 193 175 160 149 Amortization 6 6 6
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