TO CALCULATE EQUITY VALUE THROUGH DCF ANALYSIS

DATA INPUTS - those highlighted are those given

(a) General info (b) cash flows info

Expected holding period (n) 4 CFy-0

CFy-1 - 3,955.00
WACC 2.25% CFy-2 - 703.00
CFy-3 6,716.00
g rate (g) 0.25% CFy-4 9,297.00
CFy-5
Surplus assets (SA) 12,000.00 CFy-6
CFy-7
Minorities (M) - CFy-8
CFy-9
Net financial position (NFP) 10,000.00 CFy-10

CFy-n 9,297.00

RESULTS

Present value of the company € 10,245.54

Terminal value 425,482.50

Surplus assets 12,000.00

Minorities -

Net Financial Position 10,000.00

EQUITY VALUE ###

Profits & losses statement: expected (€/000) Old Winery Valuation for P

2015 2016 2017 2018

Comparables (year 2015)
Sales 49,860.00 52,756.00 56,698.00 61,721.00
Operating costs 39,379.00 40,910.00 43,782.00 45,714.00
EV/sales
EBITDA ### ### ### ###
EV/EBITDA
Depreciation - 1,768.00 - 2,305.00 - 2,305.00 - 2,388.00

EBIT 8,713.00 9,541.00 ### ### EV from EV/sales

Other income - - - - EV from EV/EBITDA

Interest expenses - 300.00 - 36.00 - 36.00 - 36.00
Average EV from comparabl
EBT 8,413.00 9,505.00 ### ###
(-) Net financial position
Taxes - 1,648.00 - 4,074.00 - 4,378.00 - 5,710.00 (+) Surplus asset
(-) Minorities
NET INCOME 6,765.00 5,431.00 6,197.00 7,873.00

EQUITY VALUE

Cash flow statement: expected (€/000)

2015 2016 2017 2018 DCF approach

(+) EBIT 8,713.00 9,541.00 10,611.00 13,619.00 EQUITY VALUE

(-) Income Taxes - 1,648.00 - 4,074.00 - 4,378.00 - 5,710.00

(+) Depreciation 1,768.00 2,305.00 2,305.00 2,388.00

(-) Increase net working capit - 9,788.00 - 4,500.00 - 500.00 - 500.00

(-) Capex - 3,000.00 - 3,975.00 - 1,322.00 - 500.00

CASH FLOW - 3,955.00 - 703.00 6,716.00 9,297.00

Comparable companies Average value DCF versus

Equity value from comprabl

Beta EV/sales EV/EBITDA D/E Equity value from DCF

Mondavi 0.73 6.2 26 9.45 AVERAGE EQUITY VALUE

Beringer 0.94 5.5 22.9 5.25
Southcorp 1.02 8.5 24.9 8.25
Bodegas 0.89 8.5 26.7 8.35
Campari 1.23 6.7 24 7.35
Antinori not listed 4.9 26.9 7.85

Average 0.962 6.72 25.23 7.75

Old Winery Valuation for PE investme

Comparables (year 2015)

Sales EBITDA
6.72 ###

25.23 10,481.00

EV from EV/sales ###

EV from EV/EBITDA ###

Average EV from comparabl ###

(-) Net financial position - 10,000.00

(+) Surplus asset 12,000.00
(-) Minorities -

EQUITY VALUE ###

DCF approach

EQUITY VALUE ###

Average value DCF versus comparable

Equity value from comprabl 301,681.78

Equity value from DCF 437,728.04

AVERAGE EQUITY VALUE 369,704.91

COST OF DEBT CAPITAL Inputs data are the blue ones

cost of debt 2.40% id = 300/12500

corporate tax 35.00%

net cost of debt capital 1.56%

COST OF EQUITY CAPITAL

General inputs Inputs for unlever (comparables data) Area for formulas applying (not for inputs

risk free rate rf 1.25% current marke value of debt 7.75 beta unlevered 0.159337474

risk premium rate rm 7.75% current market value of equity 1.00 beta relevered 0.321164596

beta 0.962 Inputs for relever (company data)

sage of unlever+relever (yes/no) yes value of debt 12500

final beta 0.3212 value of equity 8000

cost of equity capital 3.34%

WACC

WACC 2.25%