Excel Corporation

Income Statements
For Years Ended December 31, Year 8 and Year 9

($ thousands) Year 8 Year 9

Sales 1,636,298 1,782,254

Cost of goods sold and operating expenses 1,473,293 1,598,679
Operating profit 163,005 183,575 EBIT
Interest expense 21,825 20,843
Pretax profit 142,180 162,732
Tax expense 52,237 58,584
Net Income 89,943 104,148

EBIT 163,005 183,575

TAX RATE (TAX EXP/EBT) 0.36740048 0.3600029
NOPAT 103,117 117,487
EBIT OPERATING PROFIT
 Excel Corporation
Balance Sheets
At December 31, Year 8 and Year 9

($ thousands) Year 8 Year 9

CASH
Assets A/R
Cash 115,397 71,546 INV
Marketable Securities 38,008 43,854 PP&E
Accounts Receivable, net 177,538 182,859 GOOD WILL
Inventories 204,362 256,838 INV IN SUB
Total current assets 535,305 555,097 TOTAL OA

Investments in unconsolidated subsid 33,728 62,390 NOA(OA-OL_

Marketable securities 5,931 56,997 AVG NOA
PPE, net 1,539,221 1,633,458 AVG OA
Goodwill 6,550 6,550
Total long-term assets 1,585,430 1,759,395
Total Assets 2,120,735 2,314,492
YR8
Liabilities YR9
Notes payable 7,850 13,734
Accounts payable 138,662 155,482
Taxes payable 24,370 13,256
Current maturities of long-term debt 30,440 33,822
Total current liabilities 201,322 216,294

Long-term debt 507,329 473,507

Pension and OPEB liabilities 743,779 852,237 1
Total long-term liabilities 1,251,108 1,325,744

Equity 2
Common stock 413,783 413,783
Additional paid-in capital 19,208 19,208
Retained earnings 436,752 540,901
Treasury stock - 201,438 - 201,438

Total stockholders' equity 668,305 772,454

Total liabilities and equity 2,120,735 2,314,492
 3
RNOA NOPAT/AVG NOA
AVG NOA= (YEAR 1 NOA+ YEAR 2 NOA)/2
NOPAT EBIT (1-TAX RATE)
TAX RATE TAX EXP/EBT

AVG TA 2217613.5
AVG COMMON EQUITY 720379.5

3
 OA YR 8 OA YR 9
115,397 71,546 A/P
177,538 182,859 TAX/P
204,362 256,838 CONT. LIAB
1,539,221 1,633,458 TOTAL OL
6,550 6,550
33,728 62,390
2,076,796 2,213,641 AVG OL

1,169,985 1,192,666
1181325.5
2145218.5

NOA= NFO+ SE
1,169,985 501,680 668,305
1,192,666 420,212 772,454

RNOA (YR)

NOPAT(YR 9) EBIT (1- TAX EXP/EBT)

YR 8
NOPAT 102692.688164046

RNOA NOPAT/AVG NOA

9.95%

RNOA= NET OPERATING PROFIT MARGIN* NET OPERATING ASSET T/O

RNOA NOPAT/AVG NOA

RNOA NOPAT/SALES *
NET OPERATING PROGIT
RNOA MARGIN *
0.065920715296898 *
 NET OPERATING PROFIT
RNOA= MARGIN *

RNOA= NOPAT/SALES *
0.066
RNOA 9.95%
HIGHER OL LOWER NOA

ROCE (NI-PREF DIV)/AVG COMMON EQUITY

AVG COMMON EQUITY 720379.5

NI 104,148
PRE DIV 0
ROCE 14%
14% OF ADJUSTED NI IS EARNED BY EACH 100 RUPE

ROCE ADJUSTED PROFIT MARGIN *

NI-PREF DIV/SALES *

0.058436115166525 *
ROCE 14%

ROCE RNOA+ (LEV* SPREAD)

9.95% 3%

AVG NFO/AVG COMMON

LEV EQUITY 0.639865515329073
SPREAD RNOA-NFR 5.42%

NFR NET FINANCIAL RETURN (RETURN ON NET FINANCIAL OBLIGATIONS)

NFR NFE/AVG NFO 4.5%

NFE NET FINANCIAL EXPENSE INT EXP- INT REV

 OL YR 8 OL YR 9 FL YR 8 FL YR 9
138,662 155,482 N/P 7,850 13,734
24,370 13,256 CURRENT PORTION OF LTL 30,440 33,822
743,779 852,237 LT DEBT 507,329 473,507
906,811 1,020,975 TOTAL FL 545,619 521,063

963893

NFO 501,680 420,212

AVG NFO 460946

YR 9
117487.458520758

RATING ASSET T/O

SALES /AVG NOA

NET OPERATING
ASSET TURN OVER
1.50869002658454
 AVERAGE
OPERATING ASSET
TURNOVER * (1+ OPERATING LIABILITIES LEVERAGE RATIO)

SALES/AVG OA * (1+AVG OL/AVG NOA)

0.831 * 1.816

HIGHER RNOA RATIO

TED NI IS EARNED BY EACH 100 RUPEE OF COMMON EQUITY

AVG ASSET TO * EQUITY MULTIPLIER

AVG TA/AVG COMMON
SALES/AVG TA * EQUITY

0.803681074271959 * 3.07839617868082

13.42%

NET FINANCIAL OBLIGATIONS)

20,843
 FA YR8 FA YR9 SE YR 8 SE YR 8
MKT SEC 38,008 43,854
MKTSEC(LT) 5,931 56,997
TOTAL FA 43,939 100,851 TOTAL SE 668,305 772,454
 TA=
OA+ FA=
RESTRUCTURING B/S
OA- OL=

CASH A/P
A/R ACCRUED EXP
PREPAID EXP DEF TAX
DEF TAX CONTINGENT LAIB
PP&E
LT INVT.(SUSIDIARIES)
INTANGIBLE ASSETS
INVENTORY
TOTAL OA TOTAL OL
OA-OL
NOA=

RNOA NOPAT/AVG NOA

AVG NOA= (YEAR 1 NOA+ YEAR 2 NOA)/2
NOPAT EBIT (1-TAX RATE)
TAX RATE TAX EXP/EBT
 TL+ OE
OL+ FL+ SE(EXCLUDUNG PREF)

FL- FA+ SE(EXCLUDUNG PREF)

MKT SEC LT& ST)

INTEREST/DIV PAID CAPITAL+RE (EXCLUDING PREF
LTL DEBT BEARING STOCK)
CURRENT PORTION OF LTL
BONDS
N/P
PREF STOCK

TOTAL FL TOTAL FA SE
FL-FA SE
NFO+ SE

EBIT- TAX EXP

RNOA(RETURN ON NET OPERATING ASSETS)

NOPAT/AVG NOA
ROIC

RNOA ROE/ROCE ROCE (RETURN ON COMMON EQUITY)

3 FORMULAS

ROE NI/SHARE HOLDER EQUITY

ADJUSTED ROE ROCE (NI-PREF DIV)/COMMON EQUITY

COMMON EQUITY TOTAL OWNER S EQUITY-PREF STOCK

ON COMMON EQUITY)

OMMON EQUITY

S EQUITY-PREF STOCK