1) NEW STADIUM

2007 2008 2009 2010 2011

0 1 2 3 4
INCREMENTAL REVENUE 0.00 0.00 0.00 13.08 14.26
z incremental Depriciation -22.53 -22.43
Incremental costs 2.58 2.68
TOTAL COST 0.0 0.0 0.0 -20.0 -19.7
EBIT 0.00 0.00 0.00 33.03 34.00
TAX 11.56 11.90
EAT 0.00 0.00 21.47 22.10
depriciation -22.53 -22.43
Incremental capex -121.57 -121.43 3.71 3.86
Change in NWC -7.85 -8.55
FCF 0 -121.57 -121.43 3.08 4.37

DCF -110.52 -100.36 2.31 2.98

Value -155.36
IRR -15%

2) ADDING PLAYER 2007 2008 2009 2010 2011

0 1 2 3 4
Incremental Revenue 5.17 5.64 6.17 6.73
Transfer fee 20
salary fee 2.60 2.86 3.15 3.46
Total cost 22.60 2.86 3.15 3.46
EBT -17.43 2.78 3.02 3.26
Taxes -6.10 0.97 1.06 1.14
Changes in working capital -3.102 -3.38118 -3.702 -4.03518
FCF -8.23 5.19 5.67 6.16

Discounted FCF ($7.48) $4.29 $4.26 $4.21

Value 35.55
IRR 55%

3) ADDING PLAYER AND STADIUM

2007 2008 2009 2010 2011
0 1 2 3 4
REVENUES
revenue stadium 0.00 0.00 0.00 13.08 14.26
reveneue adding player 5.17 5.64 6.17 6.73
total Reveue 0.00 5.17 5.64 19.25 20.98
costs
incremental Depriciation -22.53 -22.43
Incremental costs 2.58 2.68
Transfer fee 20
salary fee 2.60 2.86 3.15 3.46
Total costs 0.00 22.60 2.86 -16.80 -16.29
EBT -17.43 2.78 36.05 37.27
TAX -6.10 0.97 12.62 13.04
EAT -11.33 1.80 23.44 24.22
cap exp -121.57 -121.43 3.71 3.86
changes in NWC -3.10 -3.38 -11.55 -12.59
FCF 113.34 126.62 8.74 10.52

Discounted FCF 103.04 104.64 6.57 7.19

Value 301.93
IRR

ASSUMPTIONS
Tax RATE 35%
NWC/REVENUE RATIO -60%
Discount rate 10%
REVENUE GROWTH 9%
Salary growth 10%
 2012 2013 2014 2015 2016 2017 2018 2019 2020
5 6 7 8 9 10 11 12 13
15.54 16.94 18.46 20.12 21.94 23.91 26.06 28.41 29.54
-22.32 -22.22 -22.1 -21.99 -21.87 -21.74 -21.61 -21.48 3.66
2.79 2.90 3.02 3.14 3.26 3.39 3.53 3.67 3.82
-19.5 -19.3 -19.1 -18.9 -18.6 -18.3 -18.1 -17.8 7.5
35.07 36.26 37.55 38.98 40.54 42.26 44.14 46.22 22.07
12.27 12.69 13.14 13.64 14.19 14.79 15.45 16.18 7.72
22.80 23.57 24.40 25.33 26.35 27.47 28.69 30.04 14.34
-22.32 -22.22 -22.1 -21.99 -21.87 -21.74 -21.61 -21.48 3.66
4.01 4.18 4.34 4.52 4.70 4.88 5.08 5.28 5.49
-9.32 -10.16 -11.08 -12.07 -13.16 -14.35 -15.64 -17.04 -17.73
5.78 7.33 9.04 10.90 12.95 15.19 17.64 20.32 30.23

3.59 4.14 4.64 5.09 5.49 5.86 6.18 6.48 8.76

2012 2013 2014 2015 2016 2017 2018 2019 2020

5 6 7 8 9 10 11 12 13
7.17 7.82 8.17 8.91 9.17 10.00 10.17 11.09 11.17

3.81 4.19 4.61 5.07 5.57 6.13 6.74 7.42 8.16

3.81 4.19 4.61 5.07 5.57 6.13 6.74 7.42 8.16
3.36 3.63 3.56 3.84 3.60 3.86 3.43 3.67 3.01
1.18 1.27 1.25 1.34 1.26 1.35 1.20 1.28 1.05
-4.302 -4.68918 -4.902 -5.34318 -5.502 -5.99718 -6.102 -6.65118 -6.702
6.49 7.05 7.22 7.84 7.84 8.51 8.33 9.03 8.66

$4.03 $3.98 $3.70 $3.66 $3.32 $3.28 $2.92 $2.88 $2.51

2012 2013 2014 2015 2016 2017 2018 2019 2020

5 6 7 8 9 10 11 12 13

15.54 16.94 18.46 20.12 21.94 23.91 26.06 28.41 29.54

7.17 7.82 8.17 8.91 9.17 10.00 10.17 11.09 11.17
22.71 24.75 26.63 29.03 31.11 33.91 36.23 39.49 40.71

-22.32 -22.22 -22.1 -21.99 -21.87 -21.74 -21.61 -21.48 3.66

2.79 2.90 3.02 3.14 3.26 3.39 3.53 3.67 3.82

3.81 4.19 4.61 5.07 5.57 6.13 6.74 7.42 8.16

-15.72 -15.13 -14.48 -13.78 -13.03 -12.21 -11.34 -10.39 15.64
38.43 39.89 41.11 42.82 44.14 46.12 47.57 49.88 25.08
13.45 13.96 14.39 14.99 15.45 16.14 16.65 17.46 8.78
24.98 25.93 26.72 27.83 28.69 29.98 30.92 32.42 16.30
4.01 4.18 4.34 4.52 4.70 4.88 5.08 5.28 5.49
-13.63 -14.85 -15.98 -17.42 -18.66 -20.34 -21.74 -23.70 -24.43
12.27 14.38 16.26 18.74 20.79 23.70 25.97 29.36 38.89

7.62 8.12 8.34 8.74 8.82 9.14 9.10 9.35 11.27

 Current Strategy
DCF ANALYSIS:
2007 2008 2009 2010 2011
0 1 2 3 4
REVENUE 74.10 80.77 88.04 95.96 104.60
OPERATING COSTS 69.10 74.92 81.28 88.23 95.82
DEPRICIATION 2.20 2.29 2.38 2.47 2.57
EBT 2.80 3.56 4.38 5.26 6.21
TAXES(35%) 0.98 1.25 1.53 1.84 2.17
EAT 1.82 2.31 2.85 3.42 4.04
DEPRICIATION 2.20 2.29 2.38 2.47 2.57
NOPAT 4.02 4.60 5.23 5.89 6.61
cap expenditure 3.30 3.43 3.57 3.71 3.86
Changes in NWC -3.89 -4.24 -4.62 -5.04
Terminal value(after tax)
FCF 5.06 5.90 6.80 7.79

DCF(@ 10%) 4.60 4.88 5.11 5.32

CURRENT VALUE 142.74

Net DEBT 18.72
equity 124.02
no of shares 9.29
price per share 13.35

WACC 10%
Tax rate 35%
Revenue growth 9%

NET PROFIT:
2007 2008 2009 2010 2011
0 1 2 3 4
REVENUE 74.10 80.77 88.04 95.96 104.60
OPERATING COSTS 69.10 74.92 81.28 88.23 95.82
DEPRICIATION 2.20 2.29 2.38 2.47 2.57
EBIT 2.80 3.56 4.38 5.26 6.21
Interest Expense 2.26 2.46 2.69 2.93 3.19
EBT 0.54 1.10 1.69 2.33 3.02
TAX 0.19 0.38 0.59 0.82 1.06
NET Income 0.35 0.71 1.10 1.51 1.96
 2012 2013 2014 2015 2016 2017 2018 2019 2020
5 6 7 8 9 10 11 12 13
114.01 124.27 135.46 147.65 160.94 175.42 191.21 208.42 216.76
104.13 113.22 123.16 134.04 145.95 158.99 173.28 188.92 196.48
2.68 2.78 2.90 3.01 3.13 3.26 3.39 3.52 3.66
7.20 8.27 9.40 10.60 11.86 13.17 14.54 15.98 16.62
2.52 2.89 3.29 3.71 4.15 4.61 5.09 5.59 5.82
4.68 5.38 6.11 6.89 7.71 8.56 9.45 10.39 10.80
2.68 2.78 2.90 3.01 3.13 3.26 3.39 3.52 3.66
7.36 8.16 9.01 9.90 10.84 11.82 12.84 13.91 14.46
4.01 4.18 4.34 4.52 4.70 4.88 5.08 5.28 5.49
-5.49 -5.99 -6.53 -7.11 -7.76 -8.45 -9.21 -10.04 -4.87
250.00
8.84 9.97 11.20 12.50 13.90 15.39 16.97 18.67 263.83

5.49 5.63 5.75 5.83 5.89 5.93 5.95 5.95 76.42

2012 2013 2014 2015 2016 2017 2018 2019 2020

5 6 7 8 9 10 11 12 13
114.01 124.27 135.46 147.65 160.94 175.42 191.21 208.42 216.76
104.13 113.22 123.16 134.04 145.95 158.99 173.28 188.92 196.48
2.68 2.78 2.90 3.01 3.13 3.26 3.39 3.52 3.66
7.20 8.27 9.40 10.60 11.86 13.17 14.54 15.98 16.62
3.48 3.79 4.13 4.50 4.91 5.35 5.83 6.36 6.61
3.72 4.48 5.27 6.10 6.95 7.82 8.71 9.62 10.01
1.30 1.57 1.84 2.14 2.43 2.74 3.05 3.37 3.50
2.42 2.91 3.43 3.97 4.52 5.08 5.66 6.25 6.51