Cover

Financial Statement Modeling for Siemens

A for Actual; E for Estimated
BLUE for hard coded values, BLACK for formulas, RED for References to other sheets
Company name
Ticker
Share price as of last close
Latest closing share price date
Latest fiscal year end date
Circuit breaker:
No. of days in the accounting year

Index
1. Income Statement
2. Balance Sheet
3. Cash Flow Statement
4. Ratio Analysis
5. Sensitivity Analsyis
6. Scenario Analysis

INCOME STATEMENT
Fiscal year
Fiscal year end date
(€ mm except per share)
Sales / Turnover / Revenue
Cost of sales (enter as -)
Gross Profit
Research & development (enter as -)
Selling, general & administrative (enter as -)
Other operating Income
Other operating Expense (enter as -)
Income from Investments
Operating profit (EBIT)
Interest income
Interest expense (enter as -)
Other financial income / (expense)
Pretax profit
Taxes (enter expense as -)
Net income from continued operations
- attributable to non controlling interests
- attributable to share holders
Income for Discontinued Operations, net of taxes
Net income

Basic shares outstanding

Impact of dilutive securities
Diluted shares outstanding

Basic EPS
Diluted EPS

BALANCE SHEET
Fiscal year
Fiscal year end date
(€ mm except per share)
Cash & equivalents
Available for sale securities
Accounts receivable
Inventory
Deferred tax assets
Other current assets
Property, plant & equipment and Intangible Assets
Goodwill
Investments using Equity method
Current Income Tax assets
Assets classified as held for disposal
Other assets
Total assets

Short term debt and current maturities of long term debt

Accounts payable
Provisions (current and non-current)
Other current liabilities
Long term debt
Post employement Liabilities
Deferred tax liabilities
Current Income Tax liabilities
Liabilities associated with assets classified as held for disposal
Other non-current liabilities
Total liabilities

Common stock
Capital Reserve
Treasury stock
Retained earnings / accumulated deficit
Other comprehensive income / (loss)
Total equity (attributable to shareholders)
Non Controlling Interest
Total equity
Balance check

Balance Sheet Schedules

WORKING CAPITAL

Accounts receivable
Beginning of period
Increases / (decreases)
End of period

AR as % of sales
Days sales outstanding (DSO)

Inventory
Beginning of period
Increases / (decreases)
End of period

Inventory as % of COGS
Inventory turnover
Days Inventory outstanding (DIO)

Accounts payable
Beginning of period
Increases / (decreases)
 End of period

AP as % of COGS
Days payables outstanding (DPO)

PROPERTY, PLANT & EQUIPMENT and INTANGIBLE ASSETS

Beginning of period
Plus: Capital expenditures
Less: Depreciation and Amortization
End of period

Gross Carrying amount

Capex (enter as +)
Capital expenditures as % of revenue
Depreciation and Amortization (enter as -)
Depreciation and Amortization as a % of capital expenditures

Depreciation Schedule
Beginning of period
Plus: Capital expenditures
Less: Depreciation and Amortization
End of period

Gross PP&E
Less: Land
Accumulated Depreciation
Net PP&E

Average Life of the assets

Depreciation from existing PP&E

Depreciation due to capital expenditures in 2016
Depreciation due to capital expenditures in 2017
Depreciation due to capital expenditures in 2018
Depreciation due to capital expenditures in 2019
Depreciation due to capital expenditures in 2020
Total depreciation

OTHER ASSETS / LIABILITIES & DEFERRED TAXES

Other current assets (inc. non-trade receivables)

Beginning of period
Increases / (decreases)
End of period

Other current liabilities

Beginning of period
Increases / (decreases)
End of period

Deferred tax assets (DTAs)

Beginning of period
Increases / (decreases)
End of period

Other assets
Beginning of period
Increases / (decreases)
End of period

Other non current liabilities

Beginning of period
Increases / (decreases)
End of period

Investments using Equity method

Beginning of period
Increases / (decreases)
End of period

Current Income Tax assets

Beginning of period
Increases / (decreases)
 End of period

Assets classified as held for disposal

Beginning of period
Increases / (decreases)
End of period

Liabilities associated with assets held for disposal

Beginning of period
Increases / (decreases)
End of period

Provisions
Beginning of period
Increases / (decreases)
End of period

Post employement Liabilities

Beginning of period
Increases / (decreases)
End of period

Deferred tax liabilities

Beginning of period
Increases / (decreases)
End of period

Current Income Tax liabilities

Beginning of period
Increases / (decreases)
End of period

DEBT SCHEDULE
Short term debt and current portions of long term debt
Beginning of period
Increases / (decreases)
End of period
Cash Availability
Initial Cash
Less: Minimum cash required
Equals: Cash available
Add: Cash Generated due to operating activities
Totals: Cash available to pay down short term debt

Interest expense on short term debt

Weighted average interest rate

Long term debt

Beginning of period
Additional borrowing / (pay down)
End of period

Interest expense on long term debt

Weighted average interest rate

% of interest expense paid in cash

% of interest expense accrues as PIK

EQUITY SCHEDULE
Common stock / APIC
Beginning of period
Plus: new share issuances
Plus: Stock based compensation
End of period

New share issuance

Stock based compensation
SBC as % of all operating expenses

Treasury stock
Beginning of period
Less: Stock repurchases
End of period

Stock repurchases
Retained earnings
Beginning of period
Plus: Net income
Less: Common dividends
End of period

Net income
Dividend payout ratio
Common dividends

Other comprehensive income / (loss)

Beginning of period
Plus: Income / (loss)
End of period

CASH FLOW STATEMENT

Fiscal year
Fiscal year end date
(€ mm except per share)
Net income
Depreciation and amortization
(Income) loss related to investing activities
Working Capital
Accounts receivable
Inventory
Accounts payable
Other Assets
Cash from operating activities - CFO
Additions to intangible assets and property, plant and equipment
Cash from investing activities - CFI
Purchase of treasury shares
Issuance of long-term debt
Repayment of long-term debt (including current maturities of long-term debt
Change in short-term debt and other financing activities
Dividends paid to shareholders of Siemens AG
Other Liabilities
Cash from financing activities - CFF
Change in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period

Cash
Beginning of period
+/- additions
End of period

Interest rate on cash

Interest income

SHARES OUTSTANDING

Basic shares outstanding

Beginning of period
+ new shares issued
- shares repurchased
End of period

Consensus EPS
% change in EPS, year-over-year
Average share price

RATIO ANALYSIS
Liquidity Ratios
Current Ratio
Quick Ratio
Cash Ratio
Cash Conversion Cycle

Profitabilty Ratios
Gross profit margin
Operating profit margin
Net profit margin
Return on assets (ROA)
Return on book equity (ROE)
Dupont Equation
Profit margin
Total Asset Turnover
Financial Leverage

Solvency Ratios
Net debt
Debt to Equity Ratio
Debt Ratio

Operating Performance Ratios

Asset turnover (Revenue / Total assets)

SENSITIVITY ANALYSIS
2016 sensitivity

Gross Profit Margin

R&D Margin

SCENARIO ANALYSIS
Fiscal year
Fiscal year end date

Select an option:

Revenue growth
Gross profit as % of sales
R&D margin
SG&A margin

Revenue growth
Best case
Base case
Worst case
Gross profit as % of sales
Best case
Base case
Worst case
R&D margin
Best case
Base case
Worst case
SG&A margin
Best case
Base case
Worst case
 Siemens
SIE.DE
€96.13
2/Aug/16
30/Sep/15
0
365

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2013A 2014A 2015A 2016E 2017E 2018E
9/30/13 9/30/14 9/30/15 9/30/16 9/30/17 9/30/18

73,445 71,227 75,636 79,720 84,947 90,394

(53,309) (50,869) (53,789) (52,615) (56,065) (59,660)
20,136 20,358 21,847 27,105 28,882 30,734
(4,048) (4,020) (4,483) (3,986) (4,247) (4,520)
(10,869) (10,190) (11,409) (11,161) (11,893) (12,655)
500 654 476 476 476 476
(424) (194) (389) (389) (389) (389)
510 582 1,235 1,235 1,235 1,235
5,805 7,190 7,277 13,280 14,064 14,881
947 1,058 1,260 Err:522 Err:522 Err:522
(784) (764) (818) Err:522 Err:522 Err:522
(154) (177) (500) (500) (500) (500)
5,814 7,307 7,219 Err:522 Err:522 Err:522
 (1,634) (2,014) (1,869) Err:522 Err:522 Err:522
4,180 5,293 5,350 Err:522 Err:522 Err:522
(120) (134) (98) (98) (98) (98)
4,060 5,159 5,252 Err:522 Err:522 Err:522
231 215 2,031 1,123 1,577 1,350
4,411 5,508 7,381 Err:522 Err:522 Err:522

844 843 823 823 823 823

8 8 9 9 9 9
852 852 833 833 833 833

4.81 6.12 6.38 Err:522 Err:522 Err:522

4.76 6.06 6.31 Err:522 Err:522 Err:522

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2014A 2015A
9/30/14 9/30/15

8,013 9,957 Err:522 Err:522 Err:522

925 1,174 1,174 1,174 1,174
14,526 15,982 16,551 17,793 18,851
15,100 17,253 16,247 17,648 18,601
3,334 2,591 2,591 2,591 2,591
5,000 6,308 6,308 6,308 6,308
14,198 18,287 17,801 17,496 17,397
17,783 23,166 23,166 23,166 23,166
2,127 2,947 3,242 3,566 3,922
577 644 644 644 644
3,935 122 122 122 122
19,361 21,915 21,915 21,915 21,915
104,879 120,346 Err:522 Err:522 Err:522

1,620 2,979 Err:522 Err:522 Err:522

7,594 7,774 7,729 8,170 8,729
8,425 9,354 9,354 9,354 9,354
19,671 22,453 22,453 22,453 22,453
19,326 26,682 30,552 36,094 40,799
9,324 9,811 9,811 9,811 9,811
552 609 609 609 609
 1,762 1,828 1,828 1,828 1,828
1,597 39 39 39 39
3,495 3,764 4,033 4,302 4,571
73,366 85,293 Err:522 Err:522 Err:522

2,643 2,643 2,643 2,643 2,643

5,525 5,733 5,733 5,733 5,733
(3,747) (6,218) (6,218) (6,218) (6,218)
25,729 30,152 Err:522 Err:522 Err:522
803 2,163 2,163 2,163 2,163
30,953 34,473 Err:522 Err:522 Err:522
560 580 580 580 580
31,513 35,053 Err:522 Err:522 Err:522
0 0 Err:522 Err:522 Err:522

14,526 15,982 16,551 17,793

1,456 569 1,242 1,058
14,526 15,982 16,551 17,793 18,851

20.4% 21.1% 20.8% 20.9% 20.9%

74 Days 77 Days 76 Days 76 Days 76 Days

15,100 17,253 16,247 17,648

2,153 (1,006) 1,400 953
15,100 17,253 16,247 17,648 18,601

29.7% 32.1% 30.9% 31.5% 31.2%

3.4x 3.1x 3.2x 3.2x 3.2x
108 days 117 days 113 days 115 days 114 days

7,594 7,774 7,729 8,170

180 (45) 440 559
 7,594 7,774 7,729 8,170 8,729

14.9% 14.5% 14.7% 14.6% 14.6%

54 days 53 days 54 days 53 days 53 days

18,287 17,801 17,496

1,993 2,124 2,260
(2,479) (2,429) (2,359)
14,198 18,287 17,801 17,496 17,397

34,794 40,496
1,813 1,897 1,993 2,124 2,260
2.5% 2.5% 2.5% 2.5% 2.5%
(2,387) (2,549) (2,479) (2,429) (2,359)
131.7% 134.4% 124.4% 114.4% 104.4%

18,287 17,801 17,496

1,993 2,124 2,260
(2,479) (2,429) (2,359)
14,198 18,287 17,801 17,496 17,397

34,794 40,496
3,678 3,873
20,596 22,209
10,520 14,415

14
2016 2017 2018
1 2 3
1,876 1,745 1,615
69 139 139
74 148
79
 1,945 1,958 1,980

6,308 6,308 6,308

0 0 0
5,000 6,308 6,308 6,308 6,308

22,453 22,453 22,453

0 0 0
19,671 22,453 22,453 22,453 22,453

2,591 2,591 2,591

0 0 0
3,334 2,591 2,591 2,591 2,591

21,915 21,915 21,915

0 0 0
19,361 21,915 21,915 21,915 21,915

3,764 4,033 4,302

269 269 269
3,495 3,764 4,033 4,302 4,571

2,947 3,242 3,566

295 324 357
2,127 2,947 3,242 3,566 3,922

644 644 644

0 0 0
 577 644 644 644 644

122 122 122

0 0 0
3,935 122 122 122 122

39 39 39
0 0 0
1,597 39 39 39 39

9,354 9,354 9,354

0 0 0
8,425 9,354 9,354 9,354 9,354

9,811 9,811 9,811

0 0 0
9,324 9,811 9,811 9,811 9,811

609 609 609

0 0 0
552 609 609 609 609

1,828 1,828 1,828

0 0 0
1,762 1,828 1,828 1,828 1,828

2,979 Err:522 Err:522

Err:522 Err:522 Err:522
1,620 2,979 Err:522 Err:522 Err:522
 9,957 Err:522 Err:522
(5,000) (5,000) (5,000)
4,957 Err:522 Err:522
Err:522 Err:522 Err:522
Err:522 Err:522 Err:522

Err:522 Err:522 Err:522

2.4% 2.1% 1.8%

26,682 30,552 36,094

527 7213 3,870 5,542 4,706
19,326 26,682 30,552 36,094 40,799

747 747 747 747

2.8% 2.4% 2.1% 1.8%

1 1 1 1
0 0 0 0

2,643 2,643 2,643

0 0 0
0 0 0
2,643 2,643 2,643 2,643 2,643

0 0 0 0 0 0
0 0 0 0 0 0
0.0% 0.0% 0.0% 0.0% 0.0% 0.0%

(6,218) (6,218) (6,218)

0 0 0
(3,747) (6,218) (6,218) (6,218) (6,218)

0 0 0 0 0 0
 30,152 Err:522 Err:522
Err:522 Err:522 Err:522
Err:522 Err:522 Err:522
25,729 30,152 Err:522 Err:522 Err:522

4,411 5,508 7,381 Err:522 Err:522 Err:522

0.0% 49.5% 34.3% 41.9% 38.1% 40.0%
0 (2,728) (2,533) Err:522 Err:522 Err:522

2,163 2,163 2,163

0 0 0
803 2,163 2,163 2,163 2,163

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2014A 2015A 2016E 2017E 2018E
9/30/14 9/30/15 9/30/16 9/30/17 9/30/18

Err:522 Err:522 Err:522

2,479 2,429 2,359
(295) (324) (357)

(569) (1,242) (1,058)

1,006 (1,400) (953)
(45) 440 559
0 0 0
Err:522 Err:522 Err:522
(1,993) (2,124) (2,260)
(1,993) (2,124) (2,260)
0 0 0
3,870 5,542 4,706
0 0 0
Err:522 Err:522 Err:522
Err:522 Err:522 Err:522
269 269 269
Err:522 Err:522 Err:522
 Err:522 Err:522 Err:522
9,957 Err:522 Err:522
Err:522 Err:522 Err:522

8,013 9,957 Err:522 Err:522

1,944 Err:522 Err:522 Err:522
8,013 9,957 Err:522 Err:522 Err:522

13.20% 14.02% 13.61% 13.82% 13.72%

947 1,058 1,260 Err:522 Err:522 Err:522

843 823 823 823

0 0 0 0
0 0 0 0
843 823 823 823 823

4.76 6.06 6.31 7.29 8.01 9.03

27.1% 4.1% 15.6% 9.9% 12.8%
96.13 111.15 122.14 137.71

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1.51x 1.53x Err:522 Err:522 Err:522

0.99x 1.01x Err:522 Err:522 Err:522
0.31x 0.34x Err:522 Err:522 Err:522
128 days 141 days 135 days 138 days 137 days

28.6% 28.9% 34.0% 34.0% 34.0%

10.1% 9.6% 16.7% 16.6% 16.5%
7.7% 9.8% Err:522 Err:522 Err:522
5.3% 6.1% Err:522 Err:522 Err:522
17.5% 21.1% Err:522 Err:522 Err:522
 7.7% 9.8% Err:522 Err:522 Err:522
67.9% 62.8% Err:522 Err:522 Err:522
332.8% 343.3% Err:522 Err:522 Err:522
17.5% 21.1% Err:522 Err:522 Err:522

12,933 19,704 Err:522 Err:522 Err:522

66.5% 84.6% Err:522 Err:522 Err:522
39.9% 45.8% Err:522 Err:522 Err:522

0.68x 0.63x Err:522 Err:522 Err:522

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Revenue growth rate

Err:522 0.0% 2.7% 5.4% 8.1% 10.8%
32.0% Err:522 Err:522 Err:522 Err:522 Err:522
31.5% Err:522 Err:522 Err:522 Err:522 Err:522
31.0% Err:522 Err:522 Err:522 Err:522 Err:522
30.5% Err:522 Err:522 Err:522 Err:522 Err:522
30.0% Err:522 Err:522 Err:522 Err:522 Err:522
29.5% Err:522 Err:522 Err:522 Err:522 Err:522

Revenue growth rate

€13279.96 0.0% 2.7% 5.4% 8.1% 10.8%
8.0% 10,888 10,888 10,888 10,888 10,888
7.5% 11,287 11,287 11,287 11,287 11,287
7.0% 11,686 11,686 11,686 11,686 11,686
6.5% 12,084 12,084 12,084 12,084 12,084
6.0% 12,483 12,483 12,483 12,483 12,483
5.5% 12,881 12,881 12,881 12,881 12,881

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2014A 2015A 2016E 2017E 2018E
9/30/14 9/30/15 9/30/16 9/30/17 9/30/18

Best case Go to EPS --->

10.0% 10.0% 10.0%

34.0% 34.0% 34.0%
5.0% 5.0% 5.0%
14.0% 14.0% 14.0%

10.0% 10.0% 10.0%

5.4% 6.6% 6.4%
0.0% 0.0% 0.0%

34.0% 34.0% 34.0%

30.5% 30.5% 30.5%
27.0% 27.0% 27.0%

5.0% 5.0% 5.0%

6.5% 6.5% 6.5%
8.0% 8.0% 8.0%

14.0% 14.0% 14.0%

16.0% 16.0% 16.0%
18.0% 18.0% 18.0%
 2019E 2020E
9/30/19 9/30/20

96,284 102,547
(63,547) (67,681)
32,736 34,866
(4,814) (5,127)
(13,480) (14,357)
476 476
(389) (389)
1,235 1,235
15,765 16,704
Err:522 Err:522
Err:522 Err:522
(500) (500)
Err:522 Err:522
Err:522 Err:522
Err:522 Err:522
(98) (98)
Err:522 Err:522
1,464 1,407
Err:522 Err:522

823 823
9 9
833 833

Err:522 Err:522
Err:522 Err:522

Err:522 Err:522
1,174 1,174
20,123 21,409
19,908 21,153
2,591 2,591
6,308 6,308
17,533 17,789
23,166 23,166
4,315 4,746
644 644
122 122
21,915 21,915
Err:522 Err:522

Err:522 Err:522
9,279 9,892
9,354 9,354
22,453 22,453
45,923 50,838
9,811 9,811
609 609
 1,828 1,828
39 39
4,840 5,109
Err:522 Err:522

2,643 2,643
5,733 5,733
(6,218) (6,218)
Err:522 Err:522
2,163 2,163
Err:522 Err:522
580 580
Err:522 Err:522
Err:522 Err:522

18,851 20,123
1,272 1,285
20,123 21,409

20.9% 20.9%
76 Days 76 Days

18,601 19,908
1,307 1,244
19,908 21,153

31.3% 31.3%
3.2x 3.2x
114 days 114 days

8,729 9,279
550 614
 9,279 9,892

14.6% 14.6%
53 days 53 days

17,397 17,533
2,407 2,564
(2,272) (2,307)
17,533 17,789

2,407 2,564
2.5% 2.5%
(2,272) (2,307)
94.4% 90.0%

17,397 17,533
2,407 2,564
(2,272) (2,307)
17,533 17,789

2019 2020
4 5
1,484 1,354
139 139
148 148
157 157
84 168
89
 2,012 2,054

6,308 6,308
0 0
6,308 6,308

22,453 22,453
0 0
22,453 22,453

2,591 2,591
0 0
2,591 2,591

21,915 21,915
0 0
21,915 21,915

4,571 4,840
269 269
4,840 5,109

3,922 4,315
392 431
4,315 4,746

644 644
0 0
 644 644

122 122
0 0
122 122

39 39
0 0
39 39

9,354 9,354
0 0
9,354 9,354

9,811 9,811
0 0
9,811 9,811

609 609
0 0
609 609

1,828 1,828
0 0
1,828 1,828

Err:522 Err:522
Err:522 Err:522
Err:522 Err:522
Err:522 Err:522
(5,000) (5,000)
Err:522 Err:522
Err:522 Err:522
Err:522 Err:522

Err:522 Err:522
1.6% 1.5%

40,799 45,923
5,124 4,915
45,923 50,838

747 747
1.6% 1.5%

1 1
0 0

2,643 2,643
0 0
0 0
2,643 2,643

0 0
0 0
0.0% 0.0%

(6,218) (6,218)
0 0
(6,218) (6,218)

0 0
Err:522 Err:522
Err:522 Err:522
Err:522 Err:522
Err:522 Err:522

Err:522 Err:522
39.1% 39.5%
Err:522 Err:522

2,163 2,163
0 0
2,163 2,163

2019E 2020E
9/30/19 9/30/20

Err:522 Err:522
2,272 2,307
(392) (431)

(1,272) (1,285)
(1,307) (1,244)
550 614
0 0
Err:522 Err:522
(2,407) (2,564)
(2,407) (2,564)
0 0
5,124 4,915
0 0
Err:522 Err:522
Err:522 Err:522
269 269
Err:522 Err:522
Err:522 Err:522
Err:522 Err:522
Err:522 Err:522

Err:522 Err:522
Err:522 Err:522
Err:522 Err:522

13.77% 13.74%
Err:522 Err:522

823 823
0 0
0 0
823 823

10.06 11.27
11.3% 12.0%
153.30 171.75

Err:522 Err:522
Err:522 Err:522
Err:522 Err:522
137 days 137 days

34.0% 34.0%
16.4% 16.3%
Err:522 Err:522
Err:522 Err:522
Err:522 Err:522
Err:522 Err:522
Err:522 Err:522
Err:522 Err:522
Err:522 Err:522

Err:522 Err:522
Err:522 Err:522
Err:522 Err:522

Err:522 Err:522

2019E 2020E
9/30/19 9/30/20

10.0% 10.0%
34.0% 34.0%
5.0% 5.0%
14.0% 14.0%

10.0% 10.0%
6.5% 6.5%
0.0% 0.0%

34.0% 34.0%
30.5% 30.5%
27.0% 27.0%

5.0% 5.0%
6.5% 6.5%
8.0% 8.0%

14.0% 14.0%
16.0% 16.0%
18.0% 18.0%
Discounted Cash Flow Model for Siemens
BLUE for hard coded values, BLACK for formulas, RED for References to other sheets

General assumptions
Company Name Siemens
Ticker SIE.DE
Share price as of last close €95.31
Latest closing share price date 7/21/2016
Latest fiscal year end date 9/30/2015
Latest basic share count 823.408
Weighted average cost of capital (WACC) 6.1%

Free cash flow buildup

Fiscal year 2013A 2014A 2015A
Fiscal year end date 9/30/13 9/30/14 9/30/15

EBITDA 8,609 9,577 9,826

Depreciation and amortization 2,804 2,387 2,549
EBIT 5,805 7,190 7,277
tax rate 28.1% 27.6% 25.9%
NOPAT 4,174 5,208 5,393
Adjust :
Depreciation and amortization
Income Related to Investment Activity
Accounts Receivable
Inventory
Accounts payable
Other assets
Other non current liabilities
Unlevered CFO
Less: Capital expenditures
Unlevered FCF
% growth

Discount factor due to being in the mid of year

Midperiod adjustment factor
Present value-UFCF

Terminal Value Calculation

Perpetuity approach Exit EBITDA multiple approac

Normalized FCF in last forecast period (t) 9,948 Terminal year EBITDA
Normalized FCFt+1 10,117 Terminal value EBITDA multiple
Long term growth rate (g) 1.7% Terminal value
Terminal value 232,311 Present value of terminal value
Present value of terminal value 181,572 Present value of stage 1 cash flows
Present value of stage 1 cash flows 42,148 Enterprise value
Enterprise value 223,720 Implied TV perpetual growth rate
Implied TV exit EBITDA multiple 12.2x

Net Debt Fair value per share

Cash & equivalents available for sale assets 7,529
Long term debt 29,661 Enterprise value
Net debt 22,132 Less: Net debt
Equity value
Options / warrants data (if any) Diluted shares
Basic shares outstanding 823.4 Equity value per share
Exercisable options na Market premium / (discount) to fair
Exercise price na
Total proceeds ($mm) na Cost of capital assumption
Total shares repurchased (mm) na Cost of debt
Net dilutive options 0 Tax rate
Dilutive impact of shares from other securitie 0 After tax cost of debt
Net diluted shares outstanding 832.8
Risk free rate
Beta
Market risk premium
Cost of equity

Capital weights

Market value of equity

Net debt

Cost of capital (WACC)

Current Options Outstanding

(in millions except Exercise price)
Strike
Price/Exercise
Tranches Number of shares Price
A na na

Sensitivity analysis

Equity value per share

Stable long term growth rate (g):
$242.05 1.2% 1.5%
6.2% 212.1 222.6
5.7% 237.8 250.9
WACC:
5.2% 269.8 286.8
WACC:

4.7% 311.1 333.8

4.2% 366.1 398.0
 2016E 2017E 2018E 2019E 2020E
9/30/16 9/30/17 9/30/18 9/30/19 9/30/20

15,759 16,493 17,240 18,036 19,011

2,479 2,429 2,359 2,272 2,307
13,280 14,064 14,881 15,765 16,704
26.7% 26.3% 26.5% 26.4% 26.5%
9,731 10,364 10,935 11,601 12,283

2,479 2,429 2,359 2,272 2,307

(295) (324) (357) (392) (431)
(569) (1,242) (1,058) (1,272) (1,285)
1,006 (1,400) (953) (1,307) (1,244)
(45) 440 559 550 614
0 0 0 0 0
269 269 269 269 269
12575.37 10535.79 11754.18 11719.542 12511.919
-1,993 -2,124 -2,260 -2,407 -2,564
10,582 8,412 9,494 9,312 9,948

19% 119% 219% 319% 419%

0.19 1.0 1.0 1.0 1.0
10,464 7,843 8,347 7,719 7,775

TDA multiple approach

year EBITDA 19,011
value EBITDA multiple 10.1x
191,064
alue of terminal value 149,334
alue of stage 1 cash flows 42,148
191,482
V perpetual growth rate 0.7%

lue per share

Perpetuity EBITDA
223,720 191,482
(22,132) (22,132)
201,588 169,350
832.832 832.832
lue per share €242.05 €203.34
emium / (discount) to fair value (60.6%) (53.1%)

capital assumptions
2.9%
26.5%
cost of debt 2.1%

-0.027% Observed b Select b:

1.09 0.92 Industry
sk premium 6.6% http://pages.stern.nyu.edu/~adamodar/New_Hom
7.1%

Amount % of total
lue of equity 79,377.2 78.2%
22,132.0 21.8%

capital (WACC) 6.1%

Dilution
0

ue per share
ng term growth rate (g):
1.7% 2.0% 2.2%
234.1 247.1 261.6
265.7 282.4 301.6
306.3 328.7 354.9
360.4 391.9 429.6
436.3 483.2 541.9
edu/~adamodar/New_Home_Page/datafile/ctryprem.html
 Inserted hyperlink-Ctrl+K
Beta Shares Outstanding Share price Market Cap D/E Tax rate
Schneider Electric 1.21 591.72 55.89 33,071.2 0.3 19%
GE 1.03 9195.66 32.96 303,089.0 1.7 30%
Royal Philips 1.20 948.48 26.1 24,755.3 0.8 23%
Average

Siemens 823.408 95.31 78479.0165 0.7 26%

Beta-Levered 1.09
Beta-Unlevered
0.97
0.47
0.74
0.73
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