Valua0on#Analysis#of#Robertson#Tool#favorable

Key3AssumpSons3Numbers3in3Red3can3be3changed
Annual3Growth3Rate3of3sales 5.00%
Income3tax3rate 40.00%
Net3Working3Capital/3Sales3raSo 31.00% reduce
PP&E3/3Sales 34.40%
Discount3rate 9.00% WACC38.53as3per3case3data
Terminal3Growth3Rate 2.00%
Merging3Improvements3Realised
2002#
Actual 2003 2004 2005 2006 2007
Cost3of3Goods3Sold3/3Sales 68.0% 68.0% 67.0% 66.0% 65.0% 65.0%
SGA3/3Sales 22.0% 21.0% 20.0% 19.0% 19.0% 19.0%
Sales (0%/Year in Perpetuity) 55.3 58.1 61.0 64.0 67.2 70.6
Cost of Goods Sold 37.9 39.5 40.8 42.3 43.7 45.9
SG&A 12.3 12.2 12.2 12.2 12.8 13.4
Depreciation 2.1 2.2 2.3 2.4 2.6 2.7
Other 0.0
EBIT 3.0 4.2 5.6 7.2 8.2 8.6
Taxes @ 0% 1.2 1.7 2.2 2.9 3.3 3.4
EBIAT 1.8 2.5 3.4 4.3 4.9 5.2
Depreciation 2.1 2.2 2.3 2.4 2.6 2.7
Cash Flows from Operations 3.9 4.7 5.7 6.7 7.5 7.8

Deduct Change in NWC (6.0) 0.9 0.9 1.0 1.0

Deduct Capital Expenditures 3.2 3.3 3.5 3.7 3.8
Deduct Change in Other Assets 0.0 0.0 0.0 0.0 0.0
Cash Flow to Capital 7.5 1.5 2.3 2.8 3.0
Terminal Value of Cash Flows to 43.2
Capital
P.V. Factor 0.92 0.84 0.77 0.71 0.65
Annual Present Value of Cash Flows
to Capital 6.91 1.23 1.78 2.00 30.03

Total Present Value of Cash Flows to

Capital 41.96
Debt Outstanding at Acquisition
Date (12.00)
Present Value of Common Stock 29.96
Present Value of Robertson Common
Stock per Share 51

Actual
2002
Net PP&E 19.0 20.0 21.0 22.0 23.1 24.3
Net Working Capital 24.0 18.0 18.9 19.8 20.8 21.9
Other Assets 0.0 0.0 0.0 0.0 0.0 0.0
Total Net Assets 43.0 38.0 39.9 41.9 44.0 46.2