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Building Company Aktiebolag 556999-9999

COMPANY VALUATION accounts up to 2011-04-30

Member of


Table of Contents

Table of Contents Value.................................................................................................................................................................................................................. 3 Valuation model.............................................................................................................................................................................................5 Conditions................................................................................................................................................................................................... 5 Calculations................................................................................................................................................................................................ 5 Explanations.............................................................................................................................................................................................. 6 Industry Comparison.................................................................................................................................................................................... 7 Forecasted earnings.................................................................................................................................................................................... 14 Opening values............................................................................................................................................................................................. 15 Earnings..................................................................................................................................................................................................... 15 Earnings growth...................................................................................................................................................................................... 15 Balance sheet total.................................................................................................................................................................................16 Balance sheet total growth................................................................................................................................................................. 16 Equity capital........................................................................................................................................................................................... 16 Equity/assets ratio.................................................................................................................................................................................. 17 Cost of capital.......................................................................................................................................................................................... 17 Method for calculating the residual value..................................................................................................................................... 18 Complete financial statements...............................................................................................................................................................19 Income Statement.................................................................................................................................................................................. 19 Notes...........................................................................................................................................................................................................19 Balance Sheet...........................................................................................................................................................................................19 Key Figures............................................................................................................................................................................................... 20 Responsibility of Faqtum.......................................................................................................................................................................... 22

Valuation of Building Company Aktiebolag (556999-9999)

2


Value

Value COMPANY VALUATION Faqtum has evaluated Building Company Aktiebolag to

SEK 39,538,000

ThirtyNineMillionFiveHundredThirtyEightThousand

The company evaluation was performend by Sidon Benjaminsson Valuation subject Building Company Aktiebolag Verkstadsg. 1 314 00 Hyltebruk

556999-9999 2011-09-20 SEK 39,538,000

Please note that the calculated value can vary from SEK 37,144,000 to SEK 42,250,000.

Value of the company (SEK) Present value of the forecasted return on investment 2012-2018

19,972,000

Present value of the forecasted return on investment after 2018

19,565,000

Number of shares

1,000

Value per share

39537.69

Total present value of the company

39,538,000

Value Range (SEK '000) Min 37,144

Value 39,538

Max 42,250

Sensitivity (SEK '000) The table below shows sensitivity in the outcome of cost of capital and earnings growth respectively. It is important to calculate using different scenarios when making a company valuation. The maximum value in the table below is SEK 42,250,000 which is based on earnings growth amounting to 3.2% and cost of capital amounting to 10.9%. The corresponding value for the minimum value is SEK 37,144,000 which is based on earnings growth of 2.9% and cost of capital amounting to 12.1%. Sensitivity (SEK '000) Earnings growth

Interest 12.1%

11.5%

10.9%

2.9%

37,144

39,221

41,565

3.1%

37,438

39,538

41,906

3.2%

37,735

39,857

42,250

Valuation of Building Company Aktiebolag (556999-9999)

3


Value- Assumptions

Conditions (SEK '000) The conditions which the above company evaluation is based upon are the following. For a more thorough explanation on these please look further forward in this document. Balance

28,556

Equity

11,702

Equity/assets ratio (sector)

28.5 %

Interest

11.5 %

Earnings growth

3.1 %

Balance sheet growth

2.8 %

Residual method (remainder)

Going Concern

Assumptions • Earnings/profit after financial items are calculated to SEK 1,895,000 and are based on financial items up until 1104. • Calculated earnings/profit growth is set to 3.1 % on average. • The difference between the historical average of the industry sector equity/asset ratio 28.5 % and the most recent equity/asset ratio for the company 41.0 % determines the level of future distributable earnings/profit. In this case the level will be higher. • Please note that the assets in the balance sheet are taken into account based only on nominal/book value. • P/E Ratio 11.4 • The cost of capital is adjusted from 13.5% to 11,5% according to the company's lower risk compared with • Given the market position and establishment level, we have adopted going concern.

Sector Info NACE 41 Construction of buildings 189 companies participated in survey.The activities grew strongly in Q2 when 55% of the companies mentioned a increase.The prices was virtually unchanged, while the order backlog increased significantly. At present, the order backlog, however, is too small according to 50% of the companies. Backlog duration is 36 weeks in production at present.The number of employees increased and 59% cited labor shortages as the biggest obstacle in bussiness.The expectations in Q3 2011 is a strong increase in construction and rising prices.The backlog orders will also increase.The outlooks in the construction market in one year continues to look bright.

Valuation of Building Company Aktiebolag (556999-9999)

4


Valuation model

Valuation model The model is based on an investment theory which focuses on the current value of the forecast future distributable earnings and the residual value at the end of the forecast period. The earnings on the investment are intended to cover the buyer’s interest and amortisation payments. The present value computation of future distributable earnings can be used in the valuation of all types of companies. Firstly, the future distributable earnings are calculated. These consist of future income and the effect of whether the company is under-capitalised or over-capitalised. The result of the latter depends on the level of the equity/assets ratio. If a company has a higher equity/assets ratio for its sector than, for instance, 50% and the average company in the sector has 20%, the company is over-capitalised and the difference is added to the distributable earnings. The opposite is done if the company is under-capitalised. Our model is based on the sector average for the equity/assets ratio of the respective company. In addition to the calculation of the distributable earnings, a calculation is made of the company’s residual value at the end of the forecast period, i.e., the sale value of the company assets minus liabilities reduced by the tax on the capital gain. The cost of capital is the rate you wish to receive in earnings on the investment. One means of determining the level of this could be to see what earnings alternative investments provide. You as a customer can simulate the effect of the future scenario by changing one of the values in the model, which will then have an immediate impact on the valuation. We will later on in the document deal with all the variables included in the model and explain them in greater detail.

Conditions (SEK '000) Balance

28,556

Equity

11,702

Equity/assets ratio (sector)

28.5 %

Interest

11.5 %

Earnings growth

3.1 %

Balance sheet growth

2.8 %

Residual method (remainder)

Going Concern

Calculations (SEK '000) 2012

2013

2014

2015

2016

2017

2018

3.3

3.2

3.1

3.0

2.9

3.0

3.0

Calculated earnings

4,842

4,997

5,152

5,307

5,461

5,625

5,794

Calculated earnings after tax

3,569

3,683

3,797

3,911

4,025

4,146

4,270

(%)

Balance sheet growth (%)

Res.

2.9

2.8

2.7

2.7

2.6

3.0

3.0

Calculated balance sheet total

29,385

30,214

31,043

31,872

32,701

33,682

34,692

Opening balance Equity capital

11,702

8,375

8,611

8,847

9,084

9,320

9,599

Closing balance Equity capital

8,375

8,611

8,847

9,084

9,320

9,599

9,887

Dividends

6,896

3,447

3,561

3,675

3,788

3,866

3,982

89.7

80.4

72.1

64.7

58.0

52.0

46.7

46.7

6,185

2,772

2,569

2,378

2,198

2,012

1,859

19,565

Present value factor (%) Present value

Valuation of Building Company Aktiebolag (556999-9999)

41,919

5


Valuation model- Explanations

Explanations The table above contains calculations of the company’s value for the respective year and below follow brief explanations of the parameters included. Forecast period The length of the forecast period is determined by the availability of financial statements data. Calculations can be based on shorter or longer forecast period, but the most common period is seven years, which has been used in this model. Calculated earnings The value of the earnings has been calculated by multiplying last year’s earnings by the earnings growth for the current year. Calculated earnings after tax This is obtained by subtracting 26.3 % tax from calculated earnings. Balance sheet growth On the basis of historic values a calculation is made of average annual growth in the balance sheet total. Calculated balance sheet total This item is taken from the most recent annual accounts. Closing balance Equity capital This is obtained by multiplying the calculated balance sheet total by the equity/assets ratio, which gives the percentage of equity capital in the total balance sheet. Opening balance Equity capital This item gives the opening balance for equity capital. This value is obtained from the previous year's closing balance. To put it simply: "What you have in the till at the beginning of the year is what you had at the end of the previous year". Dividends The total of the calculated distributable earnings for the current year. That is, opening balance equity capital + the earnings for the year - the closing balance for equity capital. Present value factor Refers to the factor for calculating present value for each respective year. Present value The present value taking into account the present value factor and distributable earnings.

Valuation of Building Company Aktiebolag (556999-9999)

6


Industry Comparison

Industry Comparison Positioning the company in relation to other companies in the same sector is an important component in a valuation context. The following in-depth key ratio analysis illustrates the company's position in the sector with regard to profitability, liquidity and consolidation. In addition to focusing on the figures for individual companies, it is important to look at the trend, i.e. the change in the key ratios over time. Key ratios are the mean values for the sector and are reported further on in a list of all key ratios.

Return on Equity (%) 40,0 30,0 20,0

The company Sector median

10,0 0,0 -10,0 -20,0 -30,0 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

The amount of net income returned as a percentage of shareholders equity. Return on equity measures a corporation's profitability by revealing how much profit a company generates with the money shareholders have invested. The ROE is useful when comparing the profitability of a company to that of other firms in the same industry. Calculating both beginning and ending ROEs allows an investor to determine the change in profitability over the period. This measure is sometimes called private financial earning capacity. Return on capital employed should as a generalization always be as great as, or greater than, the bank deposit rate plus a risk premium. Otherwise it might be a financially better alternative for the owners to liquidate the company and put the money in a bank account.

Return on Capital Employed (%) 25,0 20,0

The company Sector median

15,0 10,0 5,0 0,0 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

A ratio that indicates the efficiency and profitability of a company's capital investments. ROCE should always be higher than the rate at which the company borrows; otherwise any increase in borrowing will reduce shareholders' earnings. A variation of this ratio is return on average capital employed (ROACE), which takes the average of opening and closing capital employed for the time period.

Valuation of Building Company Aktiebolag (556999-9999)

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Industry Comparison

Return on Total Assets (%) 14,0 12,0 10,0 8,0 6,0 4,0 2,0 0,0 -2,0 -4,0 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

The company Sector median

A ratio that measures a company's earnings before interest and taxes (EBIT) against its total net assets. The ratio is considered an indicator of how effectively a company is using its assets to generate earnings before contractual obligations must be paid. The greater a company's earnings in proportion to its assets (and the greater the coefficient from this calculation), the more effectively that company is said to be using its assets. To calculate ROTA, you must obtain the net income figure from a company's income statement, and then add back interest and/or taxes that were paid during the year. The resulting number will reveal the company's EBIT. The EBIT number should then be divided by the company's total net assets (total assets less depreciation and any allowances for bad debts) to reveal the earnings that company has generated for each euro of assets on its books.

Net Margin (EBT) (%) 30,0 25,0 20,0 15,0 10,0 5,0 0,0 -5,0 -10,0 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

The company Sector median

The ratio of net profits to revenues for a company or business segment - typically expressed as a percentage – that shows how much of each Euro earned by the company is translated into profits. Net margins will vary from company to company, and certain ranges can be expected from industry to industry, as similar business constraints exist in each distinct industry. A company like Wal-Mart has made fortunes for its shareholders while operating on net margins of less than 5% annually, while at the other end of the spectrum some technology companies can run on net margins of 15-20% or greater. Companies that are able to expand their net margins over time will generally be rewarded with share price growth, as it leads directly to higher levels of profitability.

Valuation of Building Company Aktiebolag (556999-9999)

8


Industry Comparison

EBITDA Margin (%) 40,0 30,0

The company Sector median

20,0 10,0 0,0 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

A financial measurement used to assess a company's profitability by comparing its revenue with earnings. More specifically, since EBITDA is derived from revenue, this measurement would indicate the percentage of a company is remaining after operating expenses. For example, if XYZ Corp's EBITDA is â‚Ź1 billion and its revenue is â‚Ź10 billion, then its EBITDA to sales ratio is 10%. Generally, a higher value is appreciated for this ratio as that would indicate that the company is able to keep its earnings at a good level via efficient processes that have kept certain expenses low. However, when comparing companies EBITDA margins, make sure that the companies are in related industries as different size companies in different industries are bound to have different cost structures, which could make comparisons irrelevant.

EBIT Margin (%) 40,0 30,0

The company Sector median

20,0 10,0 0,0 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

An indicator of a company's profitability, calculated as revenue minus expenses, excluding tax and interest. EBIT is also referred to as "operating earnings", "operating profit" and "operating income. A profitability measure equal to EBIT divided by net revenue. This value is useful when comparing multiple companies, especially within a given industry, and also helps valuate how a company has grown over time. In other words, EBIT is all profits before taking into account interest payments and income taxes. An important factor contributing to the widespread use of EBIT is the way in which it nulls the effects of the different capital structures and tax rates used by different companies. By excluding both taxes and interest expenses, the figure hones in on the company's ability to generate profit and thus makes for easier cross-company comparisons.

Valuation of Building Company Aktiebolag (556999-9999)

9


Industry Comparison

Cash Flow / Turnover (%) 25,0 20,0

The company Sector median

15,0 10,0 5,0 0,0 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

A revenue or expense stream that changes a cash account over a given period. Cash inflows usually arise from one of three activities - financing, operations or investing - although this also occurs as a result of donations or gifts in the case of personal finance. Cash outflows result from expenses or investments. This holds true for both business and personal finance. In business as in personal finance, cash flows are essential to solvency. They can be presented as a record of something that has happened in the past, such as the sale of a particular product, or forecasted into the future, representing what a business or a person expects to take in and to spend. Cash flow is crucial to an entity's survival. Having ample cash on hand will ensure that creditors, employees and others can be paid on time. If a business or person does not have enough cash to support its operations, it is said to be insolvent, and a likely candidate for bankruptcy should the insolvency continue. Cash flow is one of the biggest concerns for small business owners. Faster cash flow turnover can mean more money to invest in marketing, stock and people.

Net Assets (Turnover) 4 3

The company Sector median

2 1 0 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

A measurement of the ability of management to use a company's net assets to generate sales revenue, calculated as sales revenue divided by capital employed. Too high a number may indicate too little investment while too low a ratio (relative to comparable companies) suggests inefficient management. A company should manage its assets efficiently to maximize sales. The relationship between sales and assets is called net assets turnover ratio. Net assets include net fixed assets and net current assets.

Valuation of Building Company Aktiebolag (556999-9999)

10


Industry Comparison

Stock Turnover 80 60

The company Sector median

40 20 0 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Stock turnover measures how well a company converts stock into revenues. It is closely similar to asset turnover and is also a measure of efficiency. Stock turnover is more specific than asset turnover. It measures how well the company is making use of the part of its working capital that has been invested in stock. Stock turnover is the main component of asset turnover for companies that have little tied up in fixed assets but hold large amounts of stock, usually trading rather than manufacturing companies. For more capital intensive businesses fixed asset turnover becomes more important.

Equity Assets Ratio (%) 50,0 40,0

The company Sector median

30,0 20,0 10,0 0,0 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

One of many ratios used to measure a company's ability to meet long-term obligations. The equity assets ratio measures the size of a company's after-tax income, excluding non-cash depreciation expenses, as compared to the firm's total debt obligations. It provides a measurement of how likely a company will be to continue meeting its debt obligations. Acceptable equity assets ratios will vary from industry to industry, but as a general rule of thumb, a ratio of greater than 20% is considered financially healthy. Generally speaking, the lower a company's equity assets ratio, the greater the probability that the company will default on its debt obligations.

Valuation of Building Company Aktiebolag (556999-9999)

11


Industry Comparison

Gearing Ratio (%) 1 200,0 1 000,0

The company Sector median

800,0 600,0 400,0 200,0 0,0 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Gearing is a measure of financial leverage, demonstrating the degree to which a firm's activities are funded by owner's funds versus creditor's funds. The higher a company's degree of leverage, the more the company is considered risky. As for most ratios, an acceptable level is determined by its comparison to ratios of companies in the same industry. A company with high gearing (high leverage) is more vulnerable to downturns in the business cycle because the company must continue to service its debt regardless of how bad sales are. A greater proportion of equity provides a cushion and is seen as a measure of financial strength.

Profit per Employee (SEK '000) 800,0 600,0

The company Sector median

400,0 200,0 0,0 -200,0 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

This is a key measure that companies and organisations often use. It is a particularly important ratio in people-orientated businesses, such as those in the service sector, as they aren't selling a product, they're selling people and relationships. So companies that make money primarily by people talking to customers value this measure because these businesses are naturally more reliant on their employees. As this measure is more relevant to some companies than others, it's important to establish whether it is considered significant to your company. If it is less important then there will be similar measures that you can use for the same purpose, for example, productivity per employee, customer satisfaction scores or, in the public sector, something like cost per employee. Understanding this and similar measures will enable you to better evaluate your initiatives or client requests in terms of the likely impact they will have on this ratio, and subsequently whether it would be considered 'good for business'.

Valuation of Building Company Aktiebolag (556999-9999)

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Industry Comparison

Operating Revenue per Employee (SEK '000) 4 000,0 3 000,0

The company Sector median

2 000,0 1 000,0 0,0 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

An important ratio that looks at a company's sales in relation to the number of employees they have. This ratio is most useful when compared against other companies in the same industry. Ideally, a company wants the highest revenue per employee possible, as it denotes higher productivity.

Costs of Employees / Operating Revenue (%) 40,0 30,0

The company Sector median

20,0 10,0 0,0 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

The ratio gives a picture of how wage-intensive the enterprise is compared with similar companies in the same industry.

Average Costs per Employee (SEK '000) 500,0 400,0

The company Sector median

300,0 200,0 100,0 0,0 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Total annual labour costs divided by average annual number of employees per month, converted into full-time units. This ratio indicates the average cost (excluding overhead allocations) of each person employed.

Valuation of Building Company Aktiebolag (556999-9999)

13


Forecasted earnings

Forecasted earnings Forecasted earnings (SEK '000) 6 000 The company 4 000 2 000 0 -2 000 -01 -02 -03 -05 -06 -07 -08 -09 -10 -11 -12 -13 -14 -15 -16 -17 -18

Forecasted total assets (SEK '000) 40 000 The company 30 000 20 000 10 000 0 -01 -02 -03 -05 -06 -07 -08 -09 -10 -11 -12 -13 -14 -15 -16 -17 -18

Forecasted earnings on equity capital (%) 60,0 The company 40,0 20,0 0,0 -20,0 -40,0 -01 -02 -03 -05 -06 -07 -08 -09 -10 -11 -12 -13 -14 -15 -16 -17 -18

Forecasted return on total assets (%) 20,0 The company 15,0 10,0 5,0 0,0 -5,0 -01 -02 -03 -05 -06 -07 -08 -09 -10 -11 -12 -13 -14 -15 -16 -17 -18

Valuation of Building Company Aktiebolag (556999-9999)

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Opening values

Opening values Earnings (SEK '000) 2001-04

2002-04

2003-04

2005-04

2006-04

2007-04

2008-04

2009-04

2010-04

2011-04

-355

-603

-352

564

1,745

1,446

1,149

1,724

2,871

3,953

Profit/loss after financial items

SEK 1,895,000 Present value SEK 1,895,000 How is the value calculated? The value of the earnings has been calculated as a weighted average of the results over the past 5 years. The weighting is achieved by giving the later years greater weight than the earlier years. To avoid extraordinary income and expenditure, the financial statements item "net profit" is not used, instead the item "earnings after financial items" is used. Why adjust? If the earnings do not agree with the expected earnings for the company this year, an adjustment can be made. The earnings figure should also be adjusted if the income or expenditures entered in the books is not normal. For instance, a closed company owner can deduct an overly high or low salary as an employee in relation to the other employees.

Earnings growth (%)

2012

2013

2014

2015

2016

2017

2018

3.3

3.2

3.1

3.0

2.9

3.0

3.0

Average figure 3.1 % Historical average 0.0 % How is the value calculated? The value of the growth in earnings is calculated as the growth between the average value of the earnings in years 1-2 and years 3-5 in the financial statements. To avoid extraordinary income and expenditure, the financial statements item "net profit" is not used; instead the item "earnings after financial items" is used. Why adjust? It may be difficult to assess growth in earnings with the aid of historical data. For instance, the earnings may be affected by profits being transferred from one financial year to another. To gain the most correct value possible, one should base the calculation on the budgeted sales for the early years. For the later years, one should calculate a growth that one assesses to be sustainable over a long period.

Valuation of Building Company Aktiebolag (556999-9999)

15


Opening values- Balance sheet total

Balance sheet total SEK 28,556,000 Present value SEK 28,556,000 How is the value calculated? The item balance sheet total is obtained from the most recent annual accounts. Why adjust? The company's assets are entered into the books at book value. This can for several reasons be different from the actual value. For instance, machinery or goods that have been written down may still have a value, or correspondingly goods with a book value may have a lower value due to damage etc. Please note that equity capital on the liability side is not automatically affected by an adjustment in the balance sheet total. The equity capital has to be edited manually to change.

Balance sheet total growth Balance sheet growth (%)

2012

2013

2014

2015

2016

2017

2018

2.9

2.8

2.7

2.7

2.6

3.0

3.0

Historical average -0.1 % How is the value calculated? We have calculated an average annual growth in the balance sheet total on the basis of historical values. Why adjust? Large investments may be necessary for future expansion. These investments give the company greater growth in its balance sheet total than has previously been possible. The company may also have been through a strong expansionary phase that is now complete. The balance sheet total will in this case not increase as much as it has done previously.

Equity capital SEK 11,702,000 Present value SEK 11,702,000 How is the value calculated? The item total equity is obtained from the most recent annual accounts. Added to this is the item total untaxed reserves minus 26.3 % tax. Why adjust? If the balance sheet total is changed, the equity capital may need to be adjusted. See balance sheet total.

Valuation of Building Company Aktiebolag (556999-9999)

16


Opening values- Equity/assets ratio

Equity/assets ratio 28.5 % Sector median* % Company's equity/assets ratio: 41.0 % * Construction of residential and non-residential buildings. How is the value calculated? The equity/assets ratio gives the percentage of equity capital in relation to liabilities and is an important factor in the valuation. To determine whether the company is under-capitalised or over-capitalised, we compare the company's equity/assets ratio with the sector median for the sector in which the company operates. If the company's equity/assets ratio is higher than the sector average, the surplus will increase the level of distributable earnings and vice versa, i.e., if the equity/assets ratio is below average, the distributable earnings will decrease. Why adjust? The capital structure is dependent on the percentage of liabilities and equity capital. If the company’s equity/assets ratio is too low, i.e., it has an overly high percentage of liabilities in relation to equity capital, problems may arise in the event of expansion or an economic recession, and if the equity/assets ratio is too high, i.e., the equity capital is overly high in relation to the liabilities, the return on equity will be lower. The required return for equity capital is normally higher than that for loan capital.

Cost of capital 11.5 % Original value 13.2 % How is the value calculated? The cost of capital is the interest one wishes to receive in earnings on the investment. Cost of capital is an important component in the valuation and consists of two sub-components, which together will comprise the total cost of capital. • Here we have used as a base the earnings on the government borrowing rate, which is usually called the "risk-free interest rate" at constant price stability. • Given that investors are exposed to greater uncertainty, it is common to calculate a risk premium. This can vary depending on what risk level is calculated, but a sustainable standard rate is 7% - 10%. Why adjust? If one is not aiming for a general value for the company, but wishes to see how the value relates to other investments. After an acquisition, for instance, the financing of loan capital may be different, which could involve a change in the debt interest. The ratio between loan capital and equity capital is also decisive (read more in the previous section on the equity/assets ratio). Moreover, there may be a different required return on the equity capital.

Valuation of Building Company Aktiebolag (556999-9999)

17


Opening values- Method for calculating the residual value

Method for calculating the residual value Going Concern The value of the company includes, in addition to the distributable earnings, the company’s value at the end of the forecast period. This residual value can be calculated in two ways. One is to calculate a liquidation value, i.e, the assets minus the liabilities. The other is to calculate a "going concern" value, which means that the company continues at the same profit level as the final year of the forecast period indefinitely. The method used depends on the nature of the company. If it is a small company, which is dependent on one or several key employees, it is not likely that the company will be active indefinitely. In this case the value is determined by means of the liquidation method. On the other hand, if the company is large and not dependent on key persons and assumed to be able to continue generating earnings far into the future, the going concern method should be used.

Valuation of Building Company Aktiebolag (556999-9999)

18


Complete financial statements

Complete financial statements Income Statement (SEK '000) 2001-04 2002-04 2003-04 2005-04 2006-04 2007-04 2008-04 2009-04 2010-04 2011-04 Net sales

7,373

8,885

5,866

6,634

11,315

8,976

20,880

17,788

16,794

Change in stocks

56

0

0

906

-674

-232

0

1,070

0

0

Other operating income

55

13

0

859

1,791

1,385

26

48

74

87

Raw materials and consumables

13,523

0

1,307

0

0

0

0

0

0

0

0

Goods for resale

1,072

1,645

1,466

2,340

5,691

4,190

14,976

11,862

8,689

4,499

Other external expenses

1,252

1,277

1,216

1,651

1,629

1,547

1,618

1,622

1,340

1,571

Personnel costs

1,426

1,050

1,136

1,797

2,283

2,058

2,158

2,412

2,941

2,471

615

592

508

469

438

454

572

659

711

751

-1,921

0

-762

0

0

0

0

0

0

0

1,199

607

777

2,142

2,391

1,881

1,583

2,349

3,150

4,273

Depreciation Items affecting comparability Operating profit/loss External interest income

0

0

25

2

2

5

19

27

2

1

Other financial income

0

18

16

27

47

143

321

112

27

17

Total financial income External interest expenses Other financial expenses

0

18

41

29

49

148

340

139

29

18

1,554

1,228

1,169

608

688

563

754

750

302

338

0

0

0

1,000

7

20

20

13

6

1

1,554

1,228

1,169

1,608

695

583

774

763

308

339

Profit/loss after financial items

-355

-603

-352

564

1,745

1,446

1,149

1,724

2,871

3,953

Profit/loss before appropriations

-355

-603

-352

564

1,745

1,446

1,149

1,724

2,871

3,953

78

116

110

126

-164

-370

-312

-571

-302

-1,049

-277

-487

-242

690

1,581

1,076

837

1,153

2,569

2,904

115

20

0

0

447

331

288

381

734

793

-392

-508

-242

690

1,134

745

549

773

1,835

2,111

Total financial expenses

Appropriations Profit/loss before tax Tax Net profit/loss for the year

Notes (SEK '000) 2001-04 2002-04 2003-04 2005-04 2006-04 2007-04 2008-04 2009-04 2010-04 2011-04 Employees Salaries board/MD Salaries others

5

5

5

7

7

6

6

6

6

6

282

242

244

270

345

376

304

419

400

265

733

540

555

1,061

1,135

1,008

1,139

1,395

1,392

1,405

Total salaries

1,015

782

799

1,331

1,480

1,384

1,443

1,814

1,792

1,670

Total salaries and remuneration

1,015

782

799

1,331

1,480

1,384

1,443

1,814

1,792

1,670

442

331

348

523

704

643

782

771

1,068

649

0

40

30

60

180

330

350

450

477

450

615

592

508

469

438

454

572

659

711

751

Bank overdraft facilities granted

3,400

2,200

1,400

0

0

0

0

0

0

0

Utilised overdraft facilities

3,146

1,908

1,042

0

0

0

0

0

0

0

300

300

300

0

0

300

300

300

0

0

47,699

46,203

46,203

44,205

43,797

42,257

43,455

43,455

42,257

42,257

Social security expences Dividend Total depreciation

Chattel mortgages Property mortgages Other pledges Total pledged assets

4,312

2,412

1,871

2,634

5,163

5,936

4,409

928

0

0

52,311

48,915

48,374

46,839

48,960

48,493

48,164

44,683

42,257

42,257

Balance Sheet (SEK '000) 2001-04 2002-04 2003-04 2005-04 2006-04 2007-04 2008-04 2009-04 2010-04 2011-04 Land and buildings

22,730

22,298

21,866

21,002

20,597

19,590

21,321

20,848

20,375

324

135

105

39

101

476

721

886

835

1,023

Total tangible assets

23,054

22,433

21,971

21,041

20,698

20,066

22,042

21,734

21,210

20,925

Total fixed assets

20,925

Equipment

19,902

23,054

22,433

21,971

21,042

20,698

20,066

22,042

21,734

21,210

Work in progress

56

0

0

906

232

0

0

0

0

0

Other inventories

164

175

179

690

102

114

4,532

3,676

5,106

7,040

Total inventories

220

175

179

1,596

334

114

4,532

3,676

5,106

7,040

Accounts receivable

103

248

213

51

37

38

90

115

119

51

Other current receivables

199

631

472

527

146

406

134

82

271

305

Total current receivables

302

879

685

578

183

444

224

197

390

356

Valuation of Building Company Aktiebolag (556999-9999)

19


Complete financial statements- Key Figures

Total short term investments Total cash and bank balances Total current assets

5,202

2,854

2,122

2,562

5,360

6,132

0

0

0

0

7

6

22

226

435

457

2,292

410

933

234

5,731

3,913

3,009

4,961

6,312

7,147

7,048

4,283

6,428

7,631

Total assets

28,785

26,346

24,979

26,003

27,010

27,213

29,090

26,017

27,639

28,556

Share capital

100

100

100

100

100

100

100

100

100

100

20

20

20

20

20

20

20

20

20

20

2,533

2,140

1,593

2,679

3,309

4,263

4,678

4,877

5,200

6,558

Other restricted equity Profit/loss brought forward Net profit/loss for the year Total equity Total untaxed reserves Long-term liabilities to credit institutions

-392

-508

-242

690

1,134

745

549

773

1,835

2,111

2,261

1,752

1,471

3,489

4,563

5,128

5,347

5,770

7,155

8,789

1,072

950

833

1,186

1,350

1,720

2,032

2,602

2,905

3,953

24,007

22,459

21,279

18,565

17,974

15,366

15,311

14,254

13,784

13,051

Utilised overdraft facilities

3,146

1,908

1,042

0

0

0

0

0

0

0

Total long-term liabilities

24,007

22,459

21,279

18,565

17,974

15,366

15,311

14,254

13,784

13,051 500

Current liabilities to credit institutions

314

0

0

0

0

0

1,072

557

500

Accounts payable

351

222

178

1,140

906

1,191

3,252

832

1,168

436

Other current liabilities

780

963

1,218

1,623

2,218

3,808

2,077

2,001

2,127

1,826

Total current liabilities Total equity and liabilities

1,445

1,185

1,396

2,763

3,124

4,999

6,401

3,390

3,795

2,762

28,785

26,346

24,979

26,003

27,010

27,213

29,090

26,017

27,639

28,556

Key Figures (SEK '000) 2001-04 2002-04 2003-04 2005-04 2006-04 2007-04 2008-04 2009-04 2010-04 2011-04 Profitability ratios Return on Shareholder Funds (%) Return on Shareholder Funds (%) * Return on Capital Employed (%)

-15.7

-34.4

-23.9

16.2

38.2

28.2

21.5

29.9

40.1

34.5

33.0

30.3

36.5

39.8

33.1

32.8

17.1

26.2

4.6

2.6

3.6

9.8

10.8

9.9

9.3

12.4

15.2

Return on Capital Employed (%) *

11.6

12.4

12.6

18.8

23.4

21.6

21.7

12.1

17.3

Return on Total Assets (%)

-1.2

-2.3

-1.4

2.2

6.5

5.3

3.9

6.6

10.4

5.0

5.9

6.5

10.6

14.0

11.6

9.1

6.5

10.2

-4.8

-6.8

-6.0

8.5

15.4

16.1

5.5

9.7

17.1

3.6

4.7

5.1

6.7

8.8

8.1

4.7

3.9

5.4

24.6

13.5

21.9

39.4

25.0

26.0

10.3

16.9

23.0

6.8

8.5

5.0

5.8

5.8

6.4

6.0

5.1

6.9

Return on Total Assets (%) * Profit Margin (%) Profit Margin (%) * EBITDA Margin (%) EBITDA Margin (%) * EBIT Margin (%)

16.3

6.8

13.2

32.3

21.1

21.0

7.6

13.2

18.8

EBIT Margin (%) *

5.4

6.9

6.8

7.4

8.2

7.7

4.9

3.9

5.7

Cash Flow / Turnover (%)

3.0

0.9

4.5

17.5

13.9

13.4

5.4

8.1

15.2

Cash Flow / Turnover (%) *

4.0

4.2

2.8

4.2

5.6

5.2

4.5

4.3

5.2

Net Assets Turnover

0.3

0.3

0.2

0.3

0.4

0.3

0.7

0.7

0.6

Net Assets Turnover *

1.9

1.6

1.5

2.5

2.5

2.5

4.0

2.7

3.4

Interest Cover

0.8

0.5

0.7

1.4

3.5

3.5

2.5

3.3

10.3

Interest Cover *

2.4

2.7

2.9

7.2

10.6

10.1

6.9

7.0

12.4

Stock Turnover

33.5

50.8

32.8

4.2

33.9

78.7

4.6

4.8

3.3

5.4

6.6

6.7

7.6

8.4

6.6

9.8

4.2

18.4

45.0 19.7 13.8 29.2 37.2 31.6 21.2

Operational ratios

Stock Turnover * Collection period (days)

5.0

10.0

13.1

2.8

1.2

1.5

1.6

2.3

2.6

Collection period (days) *

39.0

40.0

40.0

37.0

43.0

53.0

42.0

40.0

48.0

Credit period (days)

17.1

9.0

10.9

61.9

28.8

47.8

56.1

16.8

25.0

Credit period (days) *

31.0

32.0

28.0

30.0

30.0

44.0

26.0

28.0

25.0

Current Ratio (%)

396.6

330.2

215.5

179.6

202.0

143.0

110.1

126.3

169.4

Current Ratio (%) *

143.0

154.0

160.0

147.0

160.0

148.0

141.0

201.0

161.0

Liquidity Ratio (%)

381.4

315.4

202.7

121.8

191.4

140.7

39.3

17.9

34.8

68.0

91.0

100.0

93.0

110.0

100.0

104.0

107.0

138.0

0.5 12.7 1.9 1.4 11.6

Structure ratios

Liquidity Ratio (%) * Shareholder Liquidity Ratio (%)

9.4

7.8

6.9

18.8

25.4

33.4

34.9

40.5

51.9

Shareholder Liquidity Ratio (%) *

24.0

27.0

35.0

69.0

103.0

134.0

113.0

129.0

114.0

Solvency Ratio (%)

10.6

9.3

8.3

16.8

20.6

23.5

23.5

29.5

33.6

Solvency Ratio (%) *

15.3

18.0

21.5

28.9

35.1

34.9

29.8

38.4

38.6

Gearing (%)

843.4

974.4

1,098.1

496.0

386.0

325.5

325.0

238.4

197.3

Gearing (%) *

362.2

319.9

268.1

123.4

85.0

67.6

61.8

66.6

53.1

276.3 21.4 67.3 41.0 144.0

Per employee ratios

Valuation of Building Company Aktiebolag (556999-9999)

20


Complete financial statements- Key Figures

Profit per Employee

-71

-121

-70

81

249

241

192

287

478

51

66

77

116

159

150

69

74

82

Operating Revenue per Employee

1,475

1,777

1,173

948

1,616

1,496

3,480

2,965

2,799

Operating Revenue per Employee *

1,412

1,411

1,518

1,736

1,806

1,862

1,475

1,874

1,531

Profit per Employee *

Costs of Emp. / Operating Revenue (%)

19.3

11.8

19.4

27.1

20.2

22.9

10.3

13.6

17.5

Costs of Emp. / Operating Revenue (%) *

15.3

16.3

16.0

32.0

28.9

28.4

29.1

24.0

29.0

Average Cost of Employee

285

210

227

257

326

343

360

402

490

Average Cost of Employee *

217

230

244

370

388

411

421

450

444

Shareholders Funds per Employee

452

350

294

498

652

855

891

962

1,192

Shareholders Funds per Employee *

157

201

253

317

399

455

226

435

311

Working Capital per Employee

-6

40

43

72

-76

-173

228

493

676

253

220

259

224

262

298

189

456

161

Total Assets per Employee

5,757

5,269

4,996

3,715

3,859

4,536

4,848

4,336

4,606

Total Assets per Employee *

1,025

1,116

1,178

1,097

1,136

1,304

757

1,133

806

Working Capital per Employee *

659 2,254 18.3 412 1,465 1,109 4,759

* Construction of residential and non-residential buildings

Valuation of Building Company Aktiebolag (556999-9999)

21


Responsibility of Faqtum

Responsibility of Faqtum There is no such thing as a definitive value for a company, i.e., the value is based on the given opening values in the valuation model. Faqtum cannot therefore guarantee that this valuation should be construed as a definitive or final valuation in, for example, the case of a sale or purchase situation. Faqtum do not take any responsibility for direct or indirect losses or damages, of any nature whatsoever, based on use of the valuation.

Created 2011-09-20 by Sidon Benjaminsson, analyst.

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Valuation of Building Company Aktiebolag (556999-9999)

22

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