1 2 3 A B D E F Free Cash Flow Valuation (in '000 $) 2021 2022 2023 2024 2025 TV 756 746 760 774 788 4 Income before taxes 5+ Interest 6 = 7 Income before interest and taxes (EBIT) 8 EBIAT 9 Change in Working Capital 10 - Change in Other assets 11 Free Cash Flow (FCF) 12 PV of FCF = EV 13 14 Existing Debt = Value of equity 15 16 17 H Growth rate 2.0% A B D E F F G H I J 123456 Actual Projected Income Statement (in '000 $) 2020 2021 2022 2023 2024 2025 Notes 3 Growth rates: Parts Sales 3.0% Service Program 3.0% 4.0% 4.0% 5.0% 5.0% 4.0% 4.0% 5.0% 5.0% 6 Parts Sales 2,481 2,555 2,632 2,737 2,847 2,961 7 Service Program 1,087 1,130 1,187 1,246 1,309 1,374 8 Total Operating Revenues 3,568 3,686 3,819 3,984 4,156 4,335 9 10 Salaries and benefits 790 826 863 902 942 984 4.5% 11 Research and development 750 791 835 881 929 980 5.5% 12 Service expense 533 562 593 626 660 697 Increase at a yearly rate of 5.5% 13 Sales and Administrative 271 283 296 309 323 338 4.5% 14 Depreciation/amortization 450 468 487 506 526 547 4.0% 15 Total Operating Expenses 2,794 2,930 3,073 3,224 3,381 3,547 16 17 Income before taxes 774 756 746 760 774 788 18 Income tax expense/(benefit) 163 159 157 160 163 166 19 Net Income 611 597 589 601 612 623 20 Balance Sheet 21 Cash and investments 1,911 1,987 2,067 2,150 2,236 2,325 4.0% 22 Accounts receivable 1,103 1,147 1,193 1,241 1,290 1,342 4.0% Increase at a yearly rate of 23 Inventory and supplies, net 922 940 959 978 998 1,018 2.0% 24 Other 102 104 106 108 110 113 2.0% 25 Current Assets 4,038 4,179 4,325 4,477 4,634 4,798 26 Other 27 Total Assets 5,451 5,615 5,783 5,956 6,135 9,489 9,794 10,108 10,433 10,770 6,319 Increase at 3.0% 11,117 28 29 Bank Loan 30 Payables 31 CPLTD 32 Other 33 Current Liabilities 34 LTD 35 Equity 2,900 2,958 3,017 3,078 3,139 3,202 Plug account 200 204 208 212 216 221 2.0% 33 34 34 35 36 36 Increase at a yearly rate of 2.0% 75 77 78 81 83 2.0% 3,208 3,272 3,338 3,404 3,472 3,542 1,860 1,826 1,792 1,757 1,721 4,421 5,018 5,607 6,208 6,819 1,685 7,442 36 Total Liabilities & Equity 9,489 10,116 10,737 11,369 12,013 12,669 37 38 Working Capital Exclude Bank Loan 39 40 41 42 43 14 K L Tax rate 21.0%