Exh.

Exhibit 6
Rosario Acero S.A.
Forecast of Income Statement: Grow th Financed w ith
The Privately-Placed Debt-and-Warrants Issue
Common Assumptions
Revenue Growth Rate =
COGS/Revenues =
SG&A/Revenues =
Tax Rate =
Depreciation/Gross Fixed Assets =
Cash/Revenues =
Accts. Receivable/Revenues =
Base Lending Rate =

10.30%
78.00%
13.00%
34.00%
5.60%
1.00%
20.00%
8.50%

Inventory/Revenues =
Other Curr. Assets/Revenues=
Gross Fixed Assets/Revenues=
Accts. Payable/Revenues=
Other. Curr. Liabs./Revenues=
Interest Rate =
Change in Def'd Tax/Taxes =
Primary Shares =
Fully-Diluted Shares =
Actual
1996

1997

1998

$38.38
(29.94)
(4.99)
3.45
(0.73)
(0.98)
1.75
(0.59)

$42.34
(33.02)
(5.50)
3.81
(0.70)
(0.98)
2.13
(0.72)

$1.15
$4.96

13.00%
1.00%
48.00%
14.00%
7.00%
10.00%
25.00%
233,000
273,000
Projected
1999

2000

2001

2002

$46.70
(36.43)
(6.07)
4.20
(0.65)
(0.98)
2.57
(0.88)

$51.51
(40.18)
(6.70)
4.64
(0.59)
(0.98)
3.07
(1.04)

$56.81
(44.32)
(7.39)
5.11
(0.51)
(0.98)
3.63
(1.23)

$62.67
(48.88)
(8.15)
5.64
(0.41)
(0.98)
4.26
(1.45)

$1.41

$1.70

$2.03

$2.40

$2.81

$6.04

$7.29

$8.70

$10.28

$12.06

Income Statement
Revenues
Cost of Goods Sold
Selling, Gen'l, & Admin.
Earnings Before Interest and Taxes
Interest (Notes and Old Loans) (1)
Interest (New Loan @ 13%)
Profit Before Taxes
Taxes
Profit After Taxes
Profit With Extraord. Item
Earnings per Share

Note 1:

$34.80
(27.65)
(3.96)
3.19
(1.10)
2.09
0.00
$2.09
$1.76
$7.57

The firm is assumed to borrow at base rate plus two percent, and lend
at base rate less two percent.

Page 1

Exhibit 7
Rosario Acero S.A.
Forecast of Balance Sheets: Growth Financed with
The Privately-Placed Debt-and-Warrants Issue

Actual
1996

Projected
1997

1998

1999

2000

2001

2002

Balance Sheet
Cash

$0.20

$0.38

$0.42

$0.47

$0.52

$0.57

$0.63

Accounts Receivable

6.80

7.68

8.47

9.34

10.30

11.36

12.53

Inventory

4.70

4.99

5.50

6.07

6.70

7.39

8.15

Other Current Assets

0.40

0.38

0.42

0.47

0.52

0.57

0.63

Total Current Assets

12.10

13.43

14.82

16.34

18.03

19.88

21.93

Gross Fixed Assets

16.70

18.42

20.32

22.42

24.72

27.27

Accumulated Depreciation

(2.50)

(3.53)

(4.67)

(5.93)

(7.31)

(8.84)

Net Fixed Assets

30.08
(10.52)

14.20

14.89

15.65

16.49

17.41

18.43

Other Assets

0.10

0.10

0.10

0.10

0.10

0.10

0.10

Total Assets

$26.40

$28.43

$30.57

$32.93

$35.54

$38.42

$41.59

Notes Payable (or Excess Cash)

($0.76)

($0.84)

($0.81)

($1.00)

($1.44)

($2.17)

4.60

5.37

5.93

6.54

7.21

7.95

8.77

Other Current Liabilities

2.30

2.69

2.96

3.27

3.61

3.98

4.39

Total Current Liabilities

11.70

7.30

8.05

9.00

9.82

10.49

10.99

9.80

7.43

7.23

6.73

6.23

5.73

5.23

7.50

7.50

7.50

7.50

7.50

7.50

Accounts Payable

Old Long Term Debt

$4.80

19.56

New Long Term Debt

Deferred Taxes

1.30

1.45

1.63

1.85

2.11

2.42

2.78

Total Liabilities

22.80

23.67

24.41

25.07

25.66

26.14

26.50

Common Stock

0.20

0.20

0.20

0.20

0.20

0.20

0.20

Paid-in Surplus

0.20

0.20

0.20

0.20

0.20

0.20

0.20

Retained Earnings

3.20

4.35

5.76

7.46

9.49

11.88

14.69

$26.40

$28.43

$30.57

$32.93

$35.54

$38.42

$41.59

EBIT/Interest

2.90

2.03

2.27

2.58

2.96

3.45

4.08

EBIT/(Interest + Amort.)

1.93

0.36

1.95

2.00

2.06

2.11

2.16

Liabilities/Equity

6.33

4.98

3.96

3.19

2.59

2.13

1.76

(Debt+Notes)/Equity

4.06

2.98

2.25

1.71

1.29

0.96

0.70

Total Liabilities and Equity

Comparative Ratios

Profit/Revenues
Profit/Equity

5.1%

3.0%

3.3%

3.6%

3.9%

4.2%

4.5%

49.0%

24.3%

22.8%

21.6%

20.5%

19.5%

18.6%

Exhibit 8
Rosario Acero S.A.
Forecast of Free Cash Flows: Growth Financed with
The Privately-Placed Debt-and-Warrants Issue

Projected

Earnings Before Interest and Taxes

Taxes
Earnings Before Interest and After Taxes
Plus Depreciation
Less Capital Expenditures
Less Additions to Net Working Capital
Free Cash Flow

1997

1998

1999

2000

2001

2002

3.45
(1.17)
2.28
1.03
(1.72)
(0.17)
1.41

3.81
(1.30)
2.51
1.14
(1.90)
(0.55)
1.20

4.20
(1.43)
2.77
1.26
(2.09)
(0.61)
1.33

4.64
(1.58)
3.06
1.38
(2.31)
(0.67)
1.46

5.11
(1.74)
3.37
1.53
(2.55)
(0.74)
1.61

5.64
(1.92)
3.72
1.68
(2.81)
(0.82)
1.78

Exh.9

Exhibit 9
Rosario Acero S.A.
Forecast of Income Statement:
Growth Financed with Equity
Shares Are Sold at $9.00 Each
Common Assumptions
Revenue Growth Rate =
COGS/Revenues =
SG&A/Revenues =
Tax Rate =
Depreciation/Gross Fixed Assets =
Cash/Revenues =
Accts. Receivable/Revenues =
Base Lending Rate =

10.30%
78.00%
13.00%
34.00%
5.60%
1.00%
20.00%
8.50%

Inventory/Revenues =
Other Curr. Assets/Revenues=
Gross Fixed Assets/Revenues=
Accts. Payable/Revenues=
Other. Curr. Liabs./Revenues=
Interest Rate =
Change in Def'd Tax/Taxes =
1996 Primary Shares =
1997+ Primary Shares =
Actual
1996

Income Statement
Revenues
Cost of Goods Sold
Selling, Gen'l, & Admin.
Earnings Before Interest and Taxes
Interest (on Notes and Old Loans) (1)
Interest (New Loan @ 13%)
Profit Before Taxes
Taxes
Profit After Taxes
Profit With Extraord. Item
Earnings per Share

Note 1:

$34.80
(27.65)
(3.96)
3.19
(1.10)
2.09
0.00
$2.09
$1.76
$7.57

1997

1998

$38.38
(29.94)
(4.99)
3.45
(0.68)
0.00
2.77
(0.94)
$1.83

$42.34
(33.02)
(5.50)
3.81
(0.60)
0.00
3.21
(1.09)
$2.12

$1.72

$1.99

The firm is assumed to borrow at base rate plus two percent, and lend
at base rate less two percent.

Page 4

13.00%
1.00%
48.00%
14.00%
7.00%
10.00%
25.00%
233,000
1,066,333

Projected
1999

2000

2001

2002

$46.70
(36.43)
(6.07)
4.20
(0.50)
0.00
3.71
(1.26)
$2.45

$51.51
(40.18)
(6.70)
4.64
(0.37)
0.00
4.26
(1.45)
$2.81

$56.81
(44.32)
(7.39)
5.11
(0.23)
0.00
4.88
(1.66)
$3.22

$62.67
(48.88)
(8.15)
5.64
(0.07)
0.00
5.57
(1.89)
$3.68

$2.29

$2.64

$3.02

$3.45

Debt
1996
$7.57

EPS
ROA
Net Income/Total Assets7.91%
ROE
Debt Ratio
Interest Coverage Ratio

1997
$4.96

1998
$6.04

1999
$7.29

4.06%

IPO
1996
$7.57
EPS
EBIT/No of Shares
ROA
Net Income/Total Assets
ROE
Debt Ratio
Interest Coverage Ratio

1997
$1.72

1998
$1.99

1999
$2.29

2000
$8.70

2000
$2.64

2001
$10.28

2001
$3.02

2002
$12.06

2002
$3.45

Debt Value has high EPS and so can add more value to the firm
Profit per dollar of assets

nd so can add more value to the firm

Exhibit 10
Rosario Acero S.A.
Forecast of Free Cash Flows:
Growth Financed with Equity
Shares Are Sold at $9.00 Each

Actual
1996

1997

1998

Projected
1999
2000

2001

2002

Balance Sheet
Cash
Accounts Receivable
Inventory
Other Current Assets
Total Current Assets

$0.20
6.80
4.70
0.40
12.10

$0.38
7.68
4.99
0.38
13.43

$0.42
8.47
5.50
0.42
14.82

$0.47
9.34
6.07
0.47
16.34

$0.52
10.30
6.70
0.52
18.03

$0.57
11.36
7.39
0.57
19.88

$0.63
12.53
8.15
0.63
21.93

Gross Fixed Assets

Accumulated Depreciation
Net Fixed Assets
Other Assets
Total Assets

16.70
(2.50)
14.20
0.10
26.40

18.42
(3.53)
14.89
0.10
$28.43

20.32
(4.67)
15.65
0.10
$30.57

22.42
(5.93)
16.49
0.10
$32.93

24.72
(7.31)
17.41
0.10
$35.54

27.27
(8.84)
18.43
0.10
$38.42

30.08
(10.52)
19.56
0.10
$41.59

Notes Payable (or Excess Cash)

Accounts Payable
Other Current Liabilities
Total Current Liabilities
Old Long Term Debt (Note 1)
New Long Term Debt
Deferred Taxes
Total Liabilities

4.80
4.60
2.30
11.70
9.80
1.30
22.80

($1.53)
5.37
2.69
6.54
7.43
0.00
1.54
15.50

($2.40)
5.93
2.96
6.49
7.23
0.00
1.81
15.52

($3.21)
6.54
3.27
6.59
6.73
0.00
2.12
15.44

($4.29)
7.21
3.61
6.53
6.23
0.00
2.49
15.24

($5.66)
7.95
3.98
6.27
5.73
0.00
2.90
14.89

($7.37)
8.77
4.39
5.79
5.23
0.00
3.37
14.39

0.20
0.20
3.20
$26.40

1.20
6.70
5.03
$28.43

1.20
6.70
7.15
$30.57

1.20
6.70
9.59
$32.93

1.20
6.70
12.41
$35.54

1.20
6.70
15.63
$38.42

1.20
6.70
19.30
$41.59

Comparative Ratios
EBIT/Interest
EBIT/(Interest + Amort.)

2.90
1.93

5.08
0.37

6.32
2.27

8.45
2.32

12.37
2.38

21.95
2.43

81.14
2.48

Liabilities/Equity
(Debt+Notes)/Equity

6.33
4.06

1.20
0.46

1.03
0.32

0.88
0.20

0.75
0.10

0.63
0.00

0.53
-0.08

5.1%
49.0%

4.8%
14.2%

5.0%
14.1%

5.2%
14.0%

5.5%
13.8%

5.7%
13.7%

5.9%
13.5%

Common Stock
Paid-in Surplus
Retained Earnings
Total Liabilities and Equity

Profit/Revenues
Profit/Equity

Exhibit 11
Rosario Acero S.A.
Forecast of Free Cash Flows:
Growth Financed with Equity
Shares Are Sold at $9.00 Each
Projected

Earnings Before Interest and Taxes

Taxes
Earnings Before Interest and After Taxes
Plus Depreciation
Less Capital Expenditures
Less Additions to Net Working Capital
Free Cash Flow

1997

1998

1999

2000

2001

2002

3.45
(1.17)
2.28
1.03
(1.72)
(0.17)
1.41

3.81
(1.30)
2.51
1.14
(1.90)
(0.55)
1.20

4.20
(1.43)
2.77
1.26
(2.09)
(0.61)
1.33

4.64
(1.58)
3.06
1.38
(2.31)
(0.67)
1.46

5.11
(1.74)
3.37
1.53
(2.55)
(0.74)
1.61

5.64
(1.92)
3.72
1.68
(2.81)
(0.82)
1.78

Exhibit 12
Rosario Acero
Selected 1995 Data on Publicly-Listed Peer Firms

Sales
Operating Margin
Net Income
Operating Margin/Sales
Net Income/Sales

AD
CSA
GA
VAZ
PI
$ 381.0 $ 362.8 $ 397.4 $ 755.2 $ 117.1
55.6
11.7
26
144.9
-1.1
16.9
7.5
10.3
46.4
-5.1
14.6%
3.2%
6.5%
19.2%
-0.9%
4.4%
2.1%
2.6%
6.1%
-4.4%

LT Debt/Capital (Book)
Total Debt/Capital (Book)
Total Debt/Equity (Book)
Market Equity/Book Equity
Total Debt/Equity (Market)

40%
57%
1.33
1.85
0.72

56%
66%
1.94
1.25
1.55

22%
40%
0.67
1.50
0.44

33%
37%
0.59
2.10
0.28

42%
65%
1.86
0.90
2.06

Dividend Payout Ratio

Dividend Yield

27%
3%

0%
0%

15%
3%

12%
1%

0%
0%

P/E Ratio
Beta

9.5
1.35

15.9
1.05

11.3
1.00

15.0
1.15

7.3
2.50