Brahma.

xls
Rev. 4.012 December 22, 2004
This model supports STUDENT preparation of the case study, "Brazilian Beer Merger Negotiations:
Companhia Cervejaria Brahma S.A." (UVA-F-1418). This is a working model in which the student
may insert alternative forecast assumptions in order to test the sensitivity of results. Note that the
model contains an intentional circularity between the income statement and balance sheets for each
firm--to resolve this circularity, please set the model to "iterate" 100 times or so, by clicking on
tools/options/calculation and checking the iteration box.

Copyright 2003 by Robert F. Bruner and the Trustees of the University of Virginia Darden School Foundation.
Contents
Exh. 5: Analysis of voting control by major investors, before and after the transaction.
Exh. 6: Antarctica and Brahma: Comparative Performance
Exh. 8: Stock price information for Antarctica and Brahma.
Exh. 9: Information on peer companies.
Exh. 10: Information on comparable transactions.
Exhs. 11 and 12: Financial forecast for Antarctica and forecast of free cash flows.
Exhs. 13 and 13: Financial forecast for Brahma and forecast of free cash flows.

Exhibit 5: Analysis of voting control by major investors, before and after the transaction.
Before
Transaction
Share Ownership in Antarctica
FAHZ
Anheuser-Busch
Other investors
Total Shares
Share Ownership in Brahma
Garantia
Telles
Other investors
Total Shares

% of
Total

10,572,000
600,000
828,000
12,000,000

88.1%
5.0%
6.9%
100.0%

3,522,876
462,809
2,921,915
6,907,600

51.0%
6.7%
42.3%
100.0%

Exhibit 6: Antarctica and Brahma: Comparative Performance

Antarctica
1998, Financial Performance per Hectolitre
Net Sales
Cost of Goods Sold
Gross Profit
Sales Expenses
General and Administrative Expenses
Pre-tax Income
Taxes
Net Income

R$ 33.95
-22.85
11.1
-4.59
-3.29
3.22
-0.40
R$ 2.82

Brahma
R$ 46.98
-26.79
20.19
-10.36
-4.85
4.98
-0.56
R$ 4.42

Exhibit 8
Recent Stock Price Information
Antarctica and Brahma

Antarctica

Brahma

Ratio of
Antarctica
to Brahma

(Reais per share)

May-97

120.0

781.0

0.1536

Jun-97

110.0

822.0

0.1338

Jul-97

100.0

820.0

0.1220

Aug-97

97.0

760.0

0.1276

Sep-97

96.0

805.0

0.1193

Oct-97

96.0

742.0

0.1294

Nov-97

93.0

690.0

0.1348

Dec-97

70.0

695.0

0.1007
0.0946

Jan-98

70.0

740.0

Feb-98

85.0

760.0

0.1118

Mar-98

80.0

800.0

0.1000

Apr-98

74.8

680.0

0.1100

May-98

70.0

670.0

0.1045

Jun-98

60.0

640.0

0.0938

Jul-98

61.5

670.0

0.0918

Aug-98

50.0

550.0

0.0909

Sep-98

38.3

460.0

0.0832

Oct-98

32.0

450.0

0.0711

Nov-98

28.0

520.0

0.0538

Dec-98

28.0

530.0

0.0528

Jan-99

25.5

604.0

0.0422

Feb-99

22.5

605.0

0.0372

Mar-99

28.0

630.0

0.0444

Apr-99

35.7

610.0

0.0585

May-99

39.6

637.5

0.0621

High

120.0

855.0

0.1536

Low

22.0

400.0

0.0372

Average

63.3

657.2

0.0954

Adjusted Beta

0.42

0.49

Volatility

84.6%

62.6%

Source of data: Datastream

Exhibit 9: Information on Peer Companies

Price
99

May Mkt Cap (In 1998 Rev

$ MM)
(In $ MM)

1998 Prof
(In $ MM)

1998
EPS

1999E
EPS

2000E
EPS

Beverage (Alcoholic) Industry

Anheuser Busch

69.0

32,839

11,246

1,233

2.53

2.85

3.10

Beringer Wine Estates Holdings

40.0

780

318

31

1.63

1.95

2.25

Brown-Forman Corp. 'B'

71.0

4,864

1,775

201

2.93

3.20

3.50

Canandaigua Brands 'A'

52.0

931

1,497

64

3.38

4.20

4.80

Coors (Adolph) Co. 'B'

53.0

1,958

1,900

79

2.12

2.35

2.60

Molson Cos. Ltd. 'A'

22.0

1,297

2,150

48

0.80

0.95

1.10

Mondavi (Robt.) Corp.

34.0

525

325

29

1.83

2.15

2.45

Seagram Co.

59.0

23,542

9,714

92

0.26

0.55

0.15

Cadbury Schweppes (ADR)

56.0

14,210

6,816

513

1.99

2.30

2.50

Coca-Cola Bottling Co.

54.0

452

929

15

1.78

2.00

2.40

Coca-Cola Co.

71.0

175,086

18,813

3,533

1.42

1.43

1.63

Coca-Cola Enterprises

35.0

14,051

13,414

113

0.28

0.30

0.35

Average (excluding outlier, Seagram)

Beverage (Softdrink) Industry

Cott Corporation

4.1

264

959

10

0.16

0.05

0.10

Pepsi Bottling Group, Inc.

21.0

3,255

7,041

0.02

0.35

0.40

PepsiCo, Inc.

37.0

54,427

22,348

1,760

1.16

1.20

1.35

Tiarc Cos. 'A'

20.0

586

815

11

0.36

0.75

0.85

Whitman Corp.

16.0

1,616

1,635

63

0.61

0.70

0.80

Average (excluding two high outliers)

*No. of ADRS
Source: Value Line Investment Survey

Price
99

May Mkt Cap (In 1998 Rev

$ MM)
(In $ MM)

1998 Prof
(In $ MM)

1998
EPS

1999E
EPS

2000E
EPS

Latin American Brewers

Modelo

$2.69

$8,743

2,061.0

Femsa

35.94

3,839

9.38

3,224

Quinsa

11.00

Compania Cervecarias Unidad (CC

23.63

Brahma ***

237

$0.07

$0.07

$0.08

1,284.7

65

1.29

1.94

2.32

2,720.0

288

0.84

0.26

0.42

1,173

855.0

95

0.89

0.75

0.89

1,465

591.6

83

1.34

1.36

1.47

Average for Latin American Brewers

*Cash earnings = Net income plus Depreciation and Amortization
** Values in this table are denominated in US dollars.
*** Shares outstanding for Brahma refer to American Depositary Receipts, traded in New York.
Source: Morgan Stanley Dean Witter research report on Brahma, May 6, 1999.

Modelo is the largest producer of beer in Mexico. The most famous of its beer brands is Corona.

Femsa is the largest beverage company in Mexico. It produces several beer brands (including Dos Equis) and is also the bottler for Coca-Cola in Latin Amer
Latin America (OXXO).

Quinsa controls beverage and malting businesses in five Latin American countries - Argentina, Bolivia, Paraguay, Uruguay and Chile. The company also has
accounts for 100% of PepsiCo product sales in Uruguay and more than 80% of PepsiCo product sales in Argentina.

CCU is the leading brewer in Chile, and holds the third place in the Argentinian beer market. In the non-alcoholic beverages sector, CCU is Chiles second-la
mineral water market. It has winemaking operations in Argentina and in Chile.
Company descriptions taken from respective websites.

1998A
P/E

1999E
P/E

2000E
P/E

1999 E
CF/Shr

1999E P/CF

Shares
Outsdg.

27.3

24.2

22.3

4.55

15.2

475.9

24.5

20.5

17.8

2.60

15.4

19.5

24.2

22.2

20.3

3.95

18.0

68.5

15.4

12.4

10.8

7.85

6.6

17.9

25.0

22.6

20.4

5.70

9.3

36.9

27.5

23.2

20.0

2.80

7.9

58.9

18.6

15.8

13.9

3.20

10.6

15.4

226.9

107.3

393.3

1.05

56.2

399.0

23.2

20.1

17.9

4.4

11.8

28.1

24.3

22.4

3.45

16.2

30.3

27.0

22.5

8.90

6.1

8.4

50.0

49.7

43.6

1.75

40.6

2,466.0

125.0

116.7

100.0

3.07

11.4

401.5

253.75*

25.6

82.0

41.0

0.75

5.5

64.5

1,050.0

60.0

52.5

3.70

5.7

155.0

31.9

30.8

27.4

1.80

20.6

1,471.0

55.6

26.7

23.5

2.90

6.9

29.3

26.2

22.9

20.0

1.50

10.7

101.0

35.4

37.6

28.6

3.0

15.2

1998A
P/E

1999E
P/E

2000E
P/E

1999 E
CE/Shr*

1999E
P/CE

Shares Out.

36.9

36.5

31.9

0.13

21

3,250.2

27.8

18.5

15.5

3.82

9.4

106.8

11.2

36.1

22.3

1.20

7.8

343.7

12.4

14.7

12.4

1.43

7.7

106.6

17.6

17.4

16.1

NA

NA

62.0

23.7

21.8

19.0

1.8

12.7

he bottler for Coca-Cola in Latin America. It also owns the largest chain of convenience stores in

uay and Chile. The company also has bottling and franchise agreements with PepsiCo, and

ages sector, CCU is Chiles second-largest bottler of carbonated beverages and the leader in the

Recent Beverage Company Deals

(01/01/1998 to 03/31/1999)
Exhibit 10: Information on Comparable Transactions

Date
Announced

Target Name

Acquiror Name

03/03/98

FEMSA

Valores Industriales SA

01/14/99

Sanyo Coca-Cola Bottling Co

04/24/98

Lion Nathan Ltd

11/26/98

Value of
Transaction
($mil)

Offering
Price
Earnings
Ratio

Premium
1 week
prior to
ann.

1,886.7

60.1

109.5

Kita Kyushu Coca-Cola Bottling

614.8

19.8

42.9

Kirin Brewery Co Ltd

495.3

19.2

9.5

Marston Thompson & Evershed

Wolverhampton & Dudley

465.2

12.5

63.7
40.1

11/03/98

Matthew Clark PLC

Canandaigua Ltd

355.8

8.5

09/18/98

Coca-Cola Beverages PLC

Coca-Cola Co

110.7

39.1

17.7

11/02/98

AquaPenn Spring Water Co Inc

Danone Group

110.3

61.6

100.0

08/25/98

San Miguel Corp{SMC}

Exchange Capital Corp

69.7

19.8

27.0

05/22/98

Pete's Brewing Co

Gambrinus Co

69.4

nm

39.7

02/15/99

Australian Premium Wines Ltd

Cranswick Estate Wines Ltd

21.5

15.3

9.7

03/31/98

Fresh Juice Co Inc

Saratoga Beverage Group Inc

18.9

47.9

(2.5)

08/26/98

Lion Brewery Inc

Malt Acquiring Inc

18.3

8.8

17.5

NA = Not available.
Source: SDC Platinum

Notes:
Lion Nathan is an Australian based alcoholic beverages company with operations in Australia, New Zealand and China. It brews and
distributes around 1 billion litres of beer annually.
Marston Thompson & Evershed is a UK-based brewery.
Matthew Clark plc is a UK-based producer of many brands in the categories of light table wine, cider, fortified wines, wine-style drinks,
flavoured alcoholic beverages (FABs) and bottled waters.
San Miguel Corp. is a Philippine based producer of beer and spirits, and a bottler for Coca-Cola.

% of
Shares
Acq.
47.6
100
30
100
100
3.4
100
NA
100
100
100
100

Exhibits 11 and 12: Antarctica's Financial Forecast and Forecast of Free Cash Flows
Assumptions

Note: "#DIV/0!" likely indicates the needs to enter data somewhere in the model.

1.8%
61.7%
35.7%
-8.9%
-3.3%

2000
4.0%
1.7%
5.5%
73.0%
27.0%
9.1%
60.0%
34.0%
-8.9%
14.0%

2001
6.0%
3.0%
3.8%
73.0%
27.0%
9.2%
59.0%
34.0%
-8.9%
14.0%

Projected
2002
6.0%
3.0%
3.8%
73.0%
27.0%
9.2%
58.0%
34.0%
-8.9%
14.0%

2003
6.0%
3.0%
3.8%
73.0%
27.0%
9.2%
58.0%
33.0%
-8.9%
14.0%

2004
6.0%
3.0%
3.8%
73.0%
27.0%
9.2%
57.0%
33.0%
-8.9%
14.0%

12
0
$1,883.33

12
0
$1,883.33

12
45%
$1,883.33

12
45%
$1,883.33

12
45%
$1,883.33

12
45%
$1,883.33

12
45%
$1,883.33

0.0

0.0
9%
85.9
83.4
38.9
7.0%
18.7%
0.0

100.0
21%
89.9
77.8
42.9
3.2%
29.1%
140.0

100.0
15%
89.9
77.8
42.9
3.2%
29.1%
110.0

100.0
15%
89.9
77.8
42.9
3.2%
29.1%
110.0

100.0
15%
89.9
77.8
42.9
3.2%
29.1%
110.0

100.0
15%
89.9
77.8
42.9
3.2%
29.1%
110.0

100.0
15%
89.9
77.8
42.9
3.2%
29.1%
105.0

Years
40 yrs
20 yrs
20 yrs

x Declining
1.0 x
1.0 x
1.0 x

Operating Assumptions
Unit growth in sales of beer
Unit growth in sales of soft drinks
Forecasted inflation rate
% Weight of beer in revenue
% Weight of soft drinks in revenue
Nominal Revenue Growth (weighted average)
COGS (Excl Depr) / Revenues
SG&A / Revenues
Licensing Exp (Income) / Revenues
Effective Tax Rate

1997

Wgtd Average Shares Outstanding (millions)

Common Dividends payout %
Common Dividends per Share
Minimum Cash Balance
Operating Cash Balance/Sales
Days in Receivables
Days in Inventory
Days in Payables
Other Current Assets / Revenues
Other Current Liabilities / Revenues
Capital Expenditures (excl Acquisitions)
Depreciation, Amortization, & Other
Existing Intangible Book Amortization
Existing PPE Book Depreciation
Future CapEx Book Depreciation

1998

1999

67.3%
28.8%
-9.4%
12.1%
12
0
$0.00
0.0

Financing Assumptions
Straight Debt

Int. Rate on Excess Cash

Use of Excess Cash Flow
(1=Build Cash; 2=Repay Debt)
Interest Rate on Revolver

Coupon

15.0%

4.0%
1
15.0%

11/14/201506:32:52
Page 11

Exhibits 11 and 12: Antarctica's Financial Forecast and Forecast of Free Cash Flows
Income Statement

Revenues
COGS (excluding Depreciation)
Selling, General, & Administrative
EBITDA
Depreciation
Licensing Expense (Income)
EBIT
Interest (Income)
Interest Expense - Straight Debt
Pre-Tax Income
Income Taxes
Net Income
Common dividends
Net Income to Retained Earnings
Earnings per Share (R$/share):

are (R$/share):

1998
$1,381.9
929.5
397.6
54.8
67.0
(130.0)
117.8
(2.5)
41.9
78.4
9.5
68.9
0.0
68.9

1999
$1,406.5
868.4
502.0
36.1
80.0
(125.0)
81.1
(8.3)
649.9
(560.5)
18.3
(578.8)
0.0
(578.8)

2000
$1,534.0
920.4
521.6
92.0
93.8
(136.3)
134.6
(10.4)
Err:522
Err:522
Err:522
Err:522
Err:522
Err:522

2001
$1,674.9
988.2
569.5
117.2
100.8
(148.9)
165.3
(9.6)
Err:522
Err:522
Err:522
Err:522
Err:522
Err:522

Projected
2002
$1,828.8
1,060.7
621.8
146.3
107.8
(162.5)
201.1
(10.5)
Err:522
Err:522
Err:522
Err:522
Err:522
Err:522

2003
$1,996.8
1,158.2
659.0
179.7
114.8
(177.5)
242.4
(11.5)
Err:522
Err:522
Err:522
Err:522
Err:522
Err:522

2004
$2,180.3
1,242.8
719.5
218.0
121.8
(193.8)
290.0
(12.5)
Err:522
Err:522
Err:522
Err:522
Err:522
Err:522

$5.75

($48.23)

Err:522

Err:522

Err:522

Err:522

Err:522

11/14/201506:32:52
Page 12

Exhibits 11 and 12: Antarctica's Financial Forecast and Forecast of Free Cash Flows
Balance Sheet

Cash and Equivalents

Accounts Receivable
Inventory
Other Current Assets
Total Current Assets
Property , Plant, & Equipment
Accumulated Depreciation
Net Property, Plant, & Equipment
Other Long-Term Assets

1998
127.0
325.2
212.4
97.0
761.6
2,811.9
1,137.2
1,674.7
965.7

1999
289.4
346.6
185.2
45.0
866.2
2,922.9
1,187.2
1,735.7
965.7

2000
230.1
378.0
196.3
49.1
853.5
3,032.9
1,281.0
1,751.9
965.7

2001
251.2
412.7
210.8
53.6
928.3
3,142.9
1,381.8
1,761.1
965.7

Projected
2002
274.3
450.7
226.2
58.5
1,009.7
3,252.9
1,489.6
1,763.3
965.7

2003
299.5
492.1
247.0
63.9
1,102.5
3,362.9
1,604.3
1,758.6
965.7

2004
327.0
537.3
265.0
69.8
1,199.1
3,467.9
1,726.1
1,741.8
965.7

Total Assets
Accounts Payable
Other Current Liabilities (excl. S/T Debt)
Total Current Liabilities
Debt (plug)
Other Long-Term Liabilities
Total Liabilities
Common Stock (Par + APIC+ Other Equity)
Retained Earnings
Total Liabilities & Stockholders' Equity

3,402.0
99.0
257.8
356.8
1,038.5
85.4
1,480.7
1,106.3
815.0
3,402.0

3,567.6
102.1
409.7
511.8
1,424.7
84.0
2,020.5
1,106.3
236.2
3,363.0

3,571.1
108.2
446.8
555.1
Err:522
84.0
Err:522
1,106.3
Err:522
Err:522

3,655.2
116.2
487.9
604.1
Err:522
84.0
Err:522
1,106.3
Err:522
Err:522

3,738.8
124.7
532.7
657.4
Err:522
84.0
Err:522
1,106.3
Err:522
Err:522

3,826.7
136.2
581.7
717.8
Err:522
84.0
Err:522
1,106.3
Err:522
Err:522

3,906.6
146.1
635.1
781.2
Err:522
84.0
Err:522
1,106.3
Err:522
Err:522

1998
103.5
67.0
(95.0)
75.5

1999
83.7
80.0
112.8
276.5

2000
115.7
93.8
(3.3)
206.2

2001
142.2
100.8
(4.7)
238.3

Projected
2002
172.9
107.8
(5.0)
275.7

2003
208.5
114.8
(7.2)
316.1

2004
249.4
121.8
(5.7)
365.5

35.0
40.5

140.0
136.5

110.0
96.2

110.0
128.3

110.0
165.7

110.0
206.1

105.0
260.5

2000
86.8

2001
86.8

Projected
2002
86.8

2003
86.8

2004
86.8

7.0

7.0
7.0

7.0
7.0
7.0

7.0
7.0
7.0
7.0

93.8

100.8

107.8

114.8

7.0
7.0
7.0
7.0
7.0
121.8

Forecast of Free Cash Flows

Net Operating Profit After Tax
Add: Depreciation
(Increase) / Decrease in NWC
Cash Flow from Operations
Less: Capital Expenditures
Free Cash Flow
Book Depreciation Schedule
On Existing PP&E
Capital Expenditures (2000-2004):
2000
2001
2002
2003
2004
Total Book Depreciation

Amount
140.0
140.0
140.0
140.0
140.0

11/14/201506:32:52
Page 13

Exhibits 11 and 12: Antarctica's Financial Forecast and Forecast of Free Cash Flows
Summary Ratios
EBITDA / Revenues
EBIT / Revenues
Return on Revenues
EBITDA / Interest Expense
EBIT / Interest Expense
Return on Average Equity
Return on Average Assets
Return on Average (Debt+Equity) Capital
Total Debt / Book Capitalization
Total Debt / Book Equity
Total Debt / EBITDA
Book Value per Share

1999
4.0%
8.5%
5.0%
1.31 x
2.81 x
7.2%
4.1%
4.7%
35.1%
54.1%
18.95 x
$160.11

2000
2.6%
5.8%
-41.1%
0.06 x
0.12 x
-35.5%
-16.6%
-20.2%
51.5%
106.1%
39.47 x
$111.88

2001
6.0%
8.8%
Err:522
Err:522
Err:522
Err:522
Err:522
Err:522
Err:522
Err:522
Err:522
Err:522

2002
7.0%
9.9%
Err:522
Err:522
Err:522
Err:522
Err:522
Err:522
Err:522
Err:522
Err:522
Err:522

Projected
2003
8.0%
11.0%
Err:522
Err:522
Err:522
Err:522
Err:522
Err:522
Err:522
Err:522
Err:522
Err:522

2004
9.0%
12.1%
Err:522
Err:522
Err:522
Err:522
Err:522
Err:522
Err:522
Err:522
Err:522
Err:522

2005
10.0%
13.3%
Err:522
Err:522
Err:522
Err:522
Err:522
Err:522
Err:522
Err:522
Err:522
Err:522

11/14/201506:32:52
Page 14

Exhibits 13 and 14: Brahma's financial forecast and forecast of free cash flows
Assumptions
Operating Assumptions
Unit growth in sales of beer
Unit growth in sales of soft drinks
Forecasted inflation rate
% Weight of beer in revenue
% Weight of soft drinks in revenue
Revenue Growth
COGS (Excl Depr) / Revenues
SG&A / Revenues
Other Exp (Income) / Revenues
Effective Tax Rate

Note: "#DIV/0!" likely indicates the needs to enter data somewhere in the model.
1997

Minority Interest / Pre-tax Income

Wgtd Average Shares Outstanding (millions)
Common Dividends payout %
Common Dividend per share
Minimum Cash Balance
Operating Cash/Revenues
Days in Receivables
Days in Inventory
Days in Payables
Other Current Assets / Revenues
Other Current Liabilities / Revenues
Other Assets/Revenues
Capital Expenditures (excl Acquisitions)
Depreciation, Amortization, & Other
Existing Intangible Book Amortization
Existing PPE Book Depreciation
Future CapEx Book Depreciation

Years
40 yrs
20 yrs
20 yrs

1998

1999

47.4%
28.6%
-1.2%
11.3%

2.9%
48.6%
30.4%
-2.3%
10.3%

2000
4.0%
1.7%
5.5%
78.5%
21.5%
9.2%
48.6%
30.4%
-2.3%
14.0%

2001
6.0%
3.0%
3.8%
78.5%
21.5%
9.4%
48.6%
30.4%
-2.3%
14.0%

3.6%

5.5%

5.5%

5.5%

6.878
55%
R$ 20.50

6.908
55%
R$ 14.45

6.908
55%
Err:522

6.908
55%
Err:522

R$ 1,000.0
34%
35.3
91.1
62.3
6.3%
13.3%
25.7%
0.0

R$ 1,873.0
58%
27.5
74.0
67.7
0.9%
12.0%
31.5%
350.0

R$ 1,200.0
42%
27.5
74.0
67.7
0.9%
12.0%
31.5%
350.0

R$ 1,200.0
42%
27.5
74.0
67.7
0.9%
12.0%
31.5%
350.0

x Declining
1.0 x
1.0 x
1.0 x

Financing Assumptions
Straight Debt 1

Int. Rate on Excess Cash

Use of Excess Cash Flow
(1=Build Cash; 2=Repay Debt)
Interest Rate on Revolver
Income Statement
1997
Revenues
COGS (excluding Depreciation)
Selling, General, & Administrative
EBITDA
Depreciation
Other Expense (Income)

1998
1999
R$ 3,156.0 R$ 3,247.0
1,495.0
1,579.0
904.0
987.0
757.0
681.0
305.0
305.0
(37.0)
(75.0)

2000
R$ 3,545.7
1,724.2
1,077.8
743.6
322.5
(81.9)

2001
R$ 3,877.5
1,885.6
1,178.7
813.2
340.0
(89.6)

EBIT
Interest (Income)
Interest Expense - Straight Debt
Pre-Tax Income
Income Taxes
Minority Interest
Net Income
Common Dividends
Net Income to Common
Earnings per Share (R$/share):

489.0
0.0
188.0
301.0
34.0
10.7
256.3
141.0
115.3

451.0
0.0
198.3
252.7
26.0
14.0
212.7
99.8
112.9

503.0
(67.2)
Err:522
Err:522
Err:522
Err:522
Err:522
Err:522
Err:522

562.8
(62.4)
Err:522
Err:522
Err:522
Err:522
Err:522
Err:522
Err:522

R$ 37.26

R$ 30.79

Err:522

Err:522

1998
1,081.0
305.0
373.0
200.0
1,959.0
3,292.5
1,396.6
1,895.9
812.2

1999
1,873.0
245.0
320.0
29.0
2,467.0
3,447.6
1,705.0
1,742.6
1,024.2

2000
1,489.2
267.5
349.4
31.7
2,137.8
3,797.6
2,027.5
1,770.1
1,118.4

2001
1,628.5
292.6
382.1
34.6
2,337.9
4,147.6
2,367.5
1,780.1
1,223.1

4,667.1

5,233.8

5,026.3

5,341.1

255.0
419.0
674.0
1,880.0
50.0
637.0
3,241.0
975.0
451.1

293.0
391.0
684.0
1,983.0
57.5
903.0
3,627.5
990.3
616.0

320.0
427.0
746.9
Err:522
57.5
986.1
Err:522
990.3
Err:522

349.9
466.9
816.8
Err:522
57.5
1,078.3
Err:522
990.3
Err:522

4,667.1

5,233.8

Err:522

Err:522

1998
433.8
305.0
(125.0)
613.8
325.0
288.8

1999
404.6
305.0
(498.0)
211.6
350.0
(138.4)

2000
432.6
322.5
392.1
1,147.2
350.0
797.2

2001
484.0
340.0
(130.2)
693.8
350.0
343.8

2000
305.0

2001
305.0

Balance Sheet
1997
Cash and Equivalents
Accounts Receivable
Inventory
Other Current Assets
Total Current Assets
Property , Plant, & Equipment
Accumulated Depreciation
Net Property, Plant, & Equipment
Other Long-Term Assets
Total Assets
Accounts Payable
Other Current Liabilities (excl. S/T Debt)
Total Current Liabilities
Total Debt (plug)
Minority Interest
Other Long-Term Liabilities
Total Liabilities
Common Stock (Par + APIC+ Other Equity)
Retained Earnings
Total Liabilities & Stockholders' Equity
Forecast of Free Cash Flows
Net Operating Profit after Tax
Add: Depreciation
(Increase) / Decrease in NWC
Cash Flow from Operations
Less: Capital Expenditures
Free Cash Flow

Depreciation Schedule
Depreciation on Existing PP&E

Capital Expenditures (2000-2004):

2000
2001
2002
2003
2004
Total Book Depreciation

Amount
350.0
350.0
350.0
350.0
350.0

17.5

17.5
17.5

322.5

340.0

2000
21.0%
14.2%
Err:522
Err:522
Err:522
Err:522
Err:522
Err:522
Err:522
Err:522
Err:522
Err:522

2001
21.0%
14.5%
Err:522
Err:522
Err:522
Err:522
Err:522
Err:522
Err:522
Err:522
Err:522
Err:522

Summary Ratios
1997
EBITDA / Revenues
EBIT / Revenues
Return on Revenues
EBITDA / Interest Expense
EBIT / Interest Expense
Return on Average Equity
Return on Average Assets
Return on Average (Debt+Equity) Capital
Total Debt / Book Capitalization
Total Debt / Book Equity
Total Debt / EBITDA
Book Value per Share

1998
24.0%
15.5%
8.1%
4.03 x
2.60 x
16.2%
2.5%
6.9%
56.0%
131.8%
2.48 x
R$ 207.35

1999
21.0%
13.9%
6.6%
3.43 x
2.27 x
7.4%
2.3%
3.2%
54.4%
123.5%
2.91 x
R$ 232.54

here in the model.

Projected
2002
6.0%
3.0%
3.8%
78.5%
21.5%
9.4%
48.6%
30.4%
-2.3%
14.0%

2003
6.0%
3.0%
3.8%
78.5%
21.5%
9.4%
48.6%
30.4%
-2.3%
14.0%

2004
6.0%
3.0%
3.8%
78.5%
21.5%
9.4%
48.6%
30.4%
-2.3%
14.0%

5.5%

5.5%

5.5%

6.908
55%
Err:522

6.908
55%
Err:522

6.908
55%
Err:522

R$ 1,200.0
42%
27.5
74.0
67.7
0.9%
12.0%
31.5%
350.0

R$ 1,200.0
42%
27.5
74.0
67.7
0.9%
12.0%
31.5%
350.0

R$ 1,200.0
42%
27.5
74.0
67.7
0.9%
12.0%
31.5%
350.0

2003
R$ 4,637.2
2,255.0
1,409.6
972.6
375.0
(107.1)

2004
R$ 5,071.2
2,466.1
1,541.5
1,063.6
392.5
(117.1)

Coupon

15.0%

4.0%
1

=Repay Debt)
15.0%
Projected
2002
R$ 4,240.4
2,062.1
1,289.0
889.3
357.5
(97.9)

629.8
(68.2)
Err:522
Err:522
Err:522
Err:522
Err:522
Err:522
Err:522

704.7
(74.6)
Err:522
Err:522
Err:522
Err:522
Err:522
Err:522
Err:522

788.2
(81.6)
Err:522
Err:522
Err:522
Err:522
Err:522
Err:522
Err:522

Err:522

Err:522

Err:522

Projected
2002
1,781.0
320.0
417.9
37.9
2,556.7
4,497.6
2,725.0
1,772.6
1,337.5

2003
1,947.6
349.9
457.0
41.4
2,795.9
4,847.6
3,100.0
1,747.6
1,462.7

2004
2,129.9
382.6
499.8
45.3
3,057.6
5,197.6
3,492.5
1,705.1
1,599.6

5,666.8

6,006.3

6,362.3

382.6
510.6
893.3
Err:522
57.5
1,179.3
Err:522
990.3
Err:522

418.4
558.4
976.9
Err:522
57.5
1,289.6
Err:522
990.3
Err:522

457.6
610.7
1,068.3
Err:522
57.5
1,410.3
Err:522
990.3
Err:522

Err:522

Err:522

Err:522

Projected
2002
541.6
357.5
(142.3)
756.8
350.0
406.8

2003
606.0
375.0
(155.7)
825.4
350.0
475.4

2004
677.9
392.5
(170.2)
900.1
350.0
550.1

Projected
2002
305.0

2003
305.0

2004
305.0

Err:522

Err:522

Err:522
57.5

Err:522

17.5
17.5
17.5

17.5
17.5
17.5
17.5

357.5

375.0

17.5
17.5
17.5
17.5
17.5
392.5

Projected
2002
21.0%
14.9%
Err:522
Err:522
Err:522
Err:522
Err:522
Err:522
Err:522
Err:522
Err:522
Err:522

2003
21.0%
15.2%
Err:522
Err:522
Err:522
Err:522
Err:522
Err:522
Err:522
Err:522
Err:522
Err:522

2004
21.0%
15.5%
Err:522
Err:522
Err:522
Err:522
Err:522
Err:522
Err:522
Err:522
Err:522
Err:522