ASSUMPTIONS

Income statement assumptions 2002

Increase in Sales 13%
Cost of Good sold 38%
Operating expenses (w/o exceptional costs) 53%
Operating expenses (only exceptional costs) 0%
Interest rate 6%
Tax rate 30%
Dividends 30%

Balance sheet assumptions (in millions) 2002

Cash 10.0
Days in accounts receivable 28.0
Inventory days 115.0
Increase in other current assets 8%
Net Fixed Assets 30%
Days in payable accounts 25
Long term liabilities payments Plug in
Change in current liabilities 0.5
 2002
Incremento anual
Como % de ventas
Como % de ventas
Como % de ventas
of profit or loss after tax
2003
13% Incremento anual
37% Como % de ventas
53% Como % de ventas
0% Como % de ventas
6%
30%
30% of profit or loss after tax

2002 2003
10.0 10.0
28.0 27.0
115.0 108.0
Incremento anual 8% Incremento anual
Como % de ventas 30% Como % de ventas
25 30
Plug in Plug in
0.5 0.5
 2004
13% Incremento anual
36% Como % de ventas
53% Como % de ventas
0% Como % de ventas
6%
30%
30% of profit or loss after tax

2004
10.0
25.0
100.0
8% Incremento anual
30% Como % de ventas
30
Plug in
0.5
FINANCIAL STATEMENTS

1999
GBP % Sales
BALANCE SHEET
Assets
Cash 34 11.20%
Accounts receivable 27.8 9.15%
Inventories 38.6 12.71%
Other Current Assets 12.5 4.12%
Net Fixed Assets 87.8 28.91%
Other Assets 0 0.00%
Total Assets 200.7 66.08%

Liabilities and equity

Accounts payable 13 4.28%
Taxes payable 11.3 3.72%
Accruals 10.8 3.56%
Overdrafts 0 0.00%
Other current liabilities 21.6 7.11%
Long-term liabilities 28 9.22%
Other liabilities 1.7 0.56%
Shareholders equity 114.3 37.64%
Total liabilities and equity 200.7 66.08%

Balance sheet assumptions

Cash 34.00
Days in accounts receivable 32.95
Inventory days 108.82
Increase in other current assets
Net Fixed Assets
Increase in other assets
Days in accoutns payable 36.65
Taxes to pay 8.00
Change in accruals
Long term liabilities payments
Change in current liabilities
Change in Other Liabilities
New common capital

INCOME STATEMENT
Turn over 303.70 100.00%
Cost of sales 127.70 42.05%
Gross profit 176.00 57.95%

Operating expenses:
- excluding exceptional costs 151.40 49.85%
- exceptional costs 4.50 1.48%
Restructuring costs 16.60 5.47%
Net interest expense 0.10 0.03%
Profit before tax 3.40 1.12%
Tax expense 8.00 2.63%
Profit (loss) after tax - 4.60 -1.51%

Ordinary dividens 10.90 3.59%

Profit (loss) retained - 15.50 -5.10%

Income statement assumptions

Increase in Sales
Cost of Good sold
excluding exceptional costs
exceptional costs
Interest rate
Tax rate
Dividends

CASH FLOW STATEMENT

INCOMES
Turn over
Accounts receivable
Subtotal

OUTCOMES
Cost of sales
Excluding exceptional costs
Exceptional costs
Restructuring costs
Net interest expense
Tax expense
Inventories
Other Current Assets
Accounts payable
Taxes payable
Accruals
Overdrafts
Other current liabilities
Subtotal

Operating cash flow

Net Fixed Assets

Other Assets
Other liabilities
Investment cash flow

Long-term liabilities
Shareholders equity
Dividends
Financing cash flow

Operating cash flow

Investment cash flow
Financing cash flow

Net cash flow

Initial cash
Final Cash
 2000 2001
GBP %Sales GBP %Sales

19.2 5.82% 13.7 3.66%

30.3 9.18% 30.3 8.10%
44.7 13.54% 51.3 13.71%
15.6 4.73% 17.5 4.68%
104.7 31.72% 110.6 29.56%
6 1.82% 6.7 1.79%
220.5 66.80% 230.1 61.51%

20.5 6.21% 10.7 2.86%

11.7 3.54% 7.1 1.90%
15.6 4.73% 11.5 3.07%
0.3 0.09% 0.7 0.19%
13.3 4.03% 16.9 4.52%
36.7 11.12% 61.2 16.36%
1 0.30% 0.4 0.11%
121.4 36.78% 121.6 32.50%
220.5 66.80% 230.1 61.51%

19.20 13.70
33.04 29.16
122.93 123.95
0.20 0.11
 56.38 25.85
10.40 3.50

330.10 100.00% 374.10 100.00%

130.90 39.65% 149.00 39.83%
199.20 60.35% 225.10 60.17%

166.20 50.35% 195.70 52.31%

- 0.00% 11.20 2.99%
2.70 0.82% 1.00 0.27%
1.50 0.45% 4.40 1.18%
28.80 8.72% 12.80 3.42%
10.40 3.15% 3.50 0.94%
18.40 5.57% 9.30 2.49%

10.90 3.30% 10.90 2.91%

7.50 2.27% - 1.60 -0.43%
 330.10 374.10
- 2.50 -
327.60 374.10

130.90 149.00
166.20 195.70
- 11.20
2.70 1.00
1.50 4.40
10.40 3.50
6.10 6.60
3.10 1.90
- 7.50 9.80
- 0.40 4.60
- 4.80 4.10
- 0.30 - 0.40
8.30 - 3.60
316.20 387.80

11.40 - 13.70

- 16.90 - 5.90
- 6.00 - 0.70
- 0.70 - 0.60
- 23.60 - 7.20

8.70 24.50
- 0.40 1.80
- 10.90 - 10.90
- 2.60 15.40

11.40 - 13.70
- 23.60 - 7.20
- 2.60 15.40

- 14.80 - 5.50
34.00 19.20
19.20 13.70
 2002 Fcst 2003 Fcst 2004 Fcst
GBP %Sales GBP %Sales GBP

10.00 2.37% 10.00 2.09% 10.00

32.88 7.78% 35.83 7.50% 37.49
51.32 12.14% 53.02 11.10% 53.98
18.90 4.47% 20.41 4.27% 22.04
126.82 30.00% 143.31 30.00% 161.94
6.70 1.58% 6.70 1.40% 6.70
246.61 58.34% 269.27 56.37% 292.15

11.16 2.64% 14.73 3.08% 16.19

10.06 2.38% 12.76 2.67% 16.01
11.50 2.72% 11.50 2.41% 11.50
- 0.00% - 0.00% -
16.40 3.88% 15.90 3.33% 15.40
59.08 13.98% 71.55 14.98% 84.90
0.40 0.09% 0.40 0.08% 0.40
138.02 32.65% 142.44 29.82% 147.75
246.61 58.34% 269.27 56.37% 292.15

10.00 10.00 10.00

28.00 27.00 25.00
115.00 108.00 100.00
0.08 0.08 0.08
0.30 a ventas 0.30 0.30
 - - -
25.00 30.00 30.00
10.06 12.76 16.01

Plug in Plug in Plug in

0.50 0.50 0.50

422.73 100.00% 477.69 100.00% 539.79

160.64 2.00% 176.74 37.00% 194.32
262.09 62.00% 300.94 63.00% 345.46

224.05 53.00% 253.17 53.00% 286.09

- 0.00% - 0.00% -
- 0.00% - 0.00% -
- 0.00% 5.25 1.10% -
33.52 7.93% 42.52 8.90% -
10.06 2.38% 12.76 2.67% -
23.46 5.55% 29.77 6.23% 37.35

- 0.00% 8.93 1.87% 11.21

16.42 3.89% 20.84 4.36% 26.15

13% 13% 13%

38% 37% 36%
53% 53% 53%
 0% 0% 0%
6% 6% 6%
30% 30% 30%
30% of P&L 30% 30%

422.73 477.69 539.79

- 2.58 - 2.95 - 1.66
420.15 474.74 538.13

160.64 176.74 194.32

224.05 253.17 286.09
- - -
- - -
4.53 5.25 6.02
10.06 12.76 16.01
0.02 1.71 0.96
1.40 1.51 1.63
- 0.46 - 3.57 - 1.46
- 2.96 - 2.70 - 3.25
- - -
0.70 - -
0.50 0.50 0.50
398.48 445.37 500.81

21.68 29.37 37.32

- 16.22 - 16.49 - 18.63

- - -
 - - -
- 16.22 - 16.49 - 18.63

- 2.12 12.47 13.35

- - 16.42 - 20.84
- 7.04 - 8.93 - 11.21
- 9.16 - 12.89 - 18.69

21.68 29.37 37.32

- 16.22 - 16.49 - 18.63
- 9.16 - 12.89 - 18.69

- 3.70 - 0.00 -
13.70 10.00 10.00
10.00 10.00 10.00
2004 Fcst
%Sales

1.85%
6.94%
10.00%
4.08%
30.00%
1.24%
54.12%

3.00%
2.97%
2.13%
0.00%
2.85%
15.73%
0.07%
27.37%
54.12%
100.00%
36.00%
64.00%

53.00%
0.00%
0.00%
0.00%
0.00%
0.00%
6.92%

2.08%
4.84%