BETA CALCULATION

Bearing Companies Beta (β) Debt Equity D/E Ratio

Timken 1.1 461.2 609.1 0.76
Torrington (IR Division) ? 2,092.1 3,478.2 0.60

Unlevered β = β (Timken)/ (1+(1-t)(D/E ratio)

Unlevered β = 1.1/ (1+(1-0.4)(0.76)
Unlevered β = 0.76

Adjusted Levered β (Torrington) = Unlevered β [1+(1-t)(D/E ratio)]

Adjusted Levered β (Torrington) = 0.76*[1+(1-0.4)(0.6)]
Adjusted Levered β (Torrington) = 1.03 β

RISK FREE RATE

Government Yield
Short term 1.86%
Intermediate 3.55%
Long term 4.97% Rf Asumsi menggunakan pinjaman jangka panjang

COST OF DEBT
Industrial Yield
AAA 5.22%
AA 5.38%
A 5.84%
BBB 7.23%
BB 9.69%
B 10.84%

Bearing Companies Debt Equity Capital Debt to Capital

Timken 461.2 609.1 1,070.3 43%
Torrington (IR Division) 2,092.1 3,478.2 5,570.3 38%

Bearing Companies Credit Rating Yield Tax Cost of Debt (net tax)
Timken BBB 7.23% 40% 4.3%
Torrington (IR Division) A 5.84% 40% 3.5%

RISK MARKET PREMIUM 6.40%

COST OF EQUITY
Ke = Rf + β (Risk Premium)
Ke = 4.97% + 1.03 (6.4%)
Ke = 11.6% Ke

WACC Torrington (IR Division)

Value Weight (w) Discount rate (k)
Debt 2,092.1 37.6% 3.5%
Equity 3,478.2 62.4% 11.6%

WACC = Cost of Debt (kd) xWeight of Debt (wd) + Cost of Equity (ke) x Weight of Equity
WACC = 3.5% x 37.6% + 11.6% x 62.4%
WACC = 8.55% WACC

SUMMARY OF ASSUMPTIONS
Beta 1.03
Risk Free Rate (Rf) 4.97%
Risk Market Premium (Rmp) 6.40%
Cost of Debt (kd) 3.5%
Cost of Equity (ke) 11.6%
WACC 8.55%

FREE CASH FLOWS ASSUMPTIONS

Valuation Assumption (no synergies)
Sales Growth Rate (2003-2007) 6.50% Exhibit 5
Perpetuity Growth Rate 3.20%
Operating Margin % 7.1% Exhibit 5
Working Capital Ratio to Sales 10.4%
Tax Rate 40% IR Torrington Tax Rate

Valuation Assumption (with synergies)

Sales Growth Rate (2003-2007) 11.00%
Growth Rate after 2007 (Steady State) 3.20%
Operating Costs % 86.3%
Working Capital Ratio to Sales 10.4%
Tax Rate 40% IR Torrington Tax Rate
 2002 2003E 2004E 2005E
Net sales $1,204 $1,282.0 $1,365.3 $1,454.1
Operating income $85.2 $90.7 $96.6 $102.9

Sales Growth 19.9% 6.5% 6.5% 6.5%

Operating Margin 7.1% 7.1% 7.1% 7.1%

Capital Expenditures $41.0 $175.0 $130.0 $140.0

Depreciation Expense $80.0 $84.2 $90.0 $96.0

Operating costs $1,038.60 $1,107.11 $1,178.74 $1,255.21

Operating costs % 86.3% 86.4% 86.3% 86.3%
 Tax Rate
40%
40%

injaman jangka panjang

Credit Rating
BBB
A

of Debt (net tax)

Kd
2006E 2007E
$1,548.6 $1,649.2
$109.5 $116.7

6.5% 6.5%
7.1% 7.1%

$150.0 $160.0
$102.0 $108.5

$1,337.04 $1,424.08
86.3% 86.3% 86.3%
Torrington Stand alone valuation
Projected
Year 2002 2003 2004 2005
6.5% 6.5% 6.5%
Net sales $1,204 1,282.0 1,365.3 1,454.1
Operating costs (86.3%) (1,107.1) (1,178.7) (1,255.2)
Less: Depreciation $ (80.00) (84.2) (90.0) (96.0)
Operating income (7.1%) $ 85.2 90.7 96.6 102.9
Less: Tax $ (34.06) (36.3) (38.6) (41.1)
Earnings after tax $ 51.09 54.4 57.9 61.7
Add: Depreciation $ 80.00 84.2 90.0 96.0
Less: CAPEX $ (41.00) (175.0) (130.0) (140.0)
Change in Working Capital (8.1) (8.7) (9.2)
Free Cash Flows Firm (FCFF) (44.5) 9.3 8.5
Terminal value (TV)
FCFF + TV (44.5) 9.3 8.5
PV factor 0.921 0.849 0.782
PV FCFF (41.0) 7.9 6.6
Enterprise Value (EV)

Sales Growth Rate (2003-2007) 6.50%

Perpetuity Growth Rates 3.20% Average Growth US GDP 1946-2017
Working Capital Needed (% of sales) 10.40%
Tax rate 40.00%
WACC 8.55%

Year 2002 2003 2004 2005

Depreciation $ 84.20 $ 90.00 $ 96.00
CAPEX $ (175.00) $ (130.00) $ (140.00)
Working Capital $ 125.19 $ 133.33 $ 141.99 $ 151.22

2001 2002
Current Assets 828.4 968.3
Current Liabilities 641.2 634.1
Sales 2447.2 2550.1
% current assets to sales 33.9% 38.0%
% current liabilities to sales 26.2% 24.9%
%NWC 7.6% 13.1% 10.4% average
Projected Steady state Market multiple Valuation
2006 2007 2008 Data tahun 2002
6.5% 6.5% 3.2% EBITDA Torrington = Operating Income + Depreciation
1,548.6 1,649.2 1,702.0 EBITDA Torrington = $85.2 + 80 = $165.2
(1,337.0) (1,424.1) (1,468.8)
(102.0) (108.5) (112.0) Enterprise value/ EBITDA Timken = 5.9 dari Exhibit 8
109.5 116.7 121.2
(43.8) (46.7) (48.5) Enterprise Value Torrington = $165.2 x 5.9
65.7 70.0 72.7 Enterprise Value Torrington
102.0 108.5 111.8
(150.0) (160.0) (164.8) Estimated cost to acquire Torrington
(9.8) (10.5) (5.5)
7.9 8.0 14.2
265.2
7.9 273.2
0.720 0.664
5.7 181.3
$ 160.5

2006 2007 2008

$ 102.00 $ 108.50 $ 111.76
$ (150.00) $ (160.00) $ (164.80)
$ 161.05 $ 171.52 $ 177.01
g Income + Depreciation
80 = $165.2

en = 5.9 dari Exhibit 8

$ 974.68

$ 800.00
Torrington With-Synergy Valuation
Projected ($ in million)
Year 2002 2003 2004 2005 2006
Net sales 1,203.8 1,336.2 1,483.1 1,646.3 1,827.4
Operating Costs (86.3%) (1,153.1) (1,280.0) (1,420.7) (1,577.0)
Less: Integration Costs (65.0) (65.0) - -
Add: Cost Saving - - - -
Less: Depreciation (84.2) (90.0) (96.0) (102.0)
Operating Income 33.9 48.2 129.5 148.4
Less: Tax (13.5) (19.3) (51.8) (59.3)
Earnings After Tax 20.3 28.9 77.7 89.0
Add: Depreciation 84.2 90.0 96.0 102.0
Less: CAPEX (175.0) (130.0) (140.0) (150.0)
Change in Working Capital (13.8) (15.3) (17.0) (18.8)
Free Cash Flows (FCF) (84.3) (26.4) 16.8 22.2
Terminal Value (TV)
FCFF + TV (84.3) (26.4) 16.8 22.2
PV Factor 0.921 0.849 0.782 0.720
PV FCFF (77.6) (22.4) 13.1 16.0
Enterprise Value (EV)

Sales Growth Rate (2003-2007) 11.00%

Perpetuity Growth Rates 3.20%
Working Capital Needed (% of sales) 10.40%
Tax rate 40.00%
WACC 8.55%

Year 2002 2003 2004 2005 2006

Depreciation 84.20 90.00 96.00 102.00
CAPEX (175.00) (130.00) (140.00) (150.00)
Working Capital 125.19 138.96 154.25 171.21 190.05
Change in NWC (13.77) (15.29) (16.97) (18.83)

Timken 2001 2002 Average inflation US

Current Assets 828.4 968.3 Average US GDP Growt
Current Liabilities 641.2 634.1
Sales 2447.2 2550.1
% current assets to sales 33.9% 38.0%
% current liabilities to sales 26.2% 24.9%
%NWC 7.6% 13.1% 10.4% average
million) Steady State
2007 2008
2,028.4 2,093.3 Enterprise value (with synergies) $ 1,103.00
(1,750.5) (1,806.5)
- - Additional PV due to synergies $ 942.52
- 80.0 (revenue growth & cost saving)
(108.5) (112.0)
169.4 254.8 Enterprise Value Torrington
(67.8) (101.9)
101.6 152.9
108.5 111.8
(160.0) (164.8)
(20.9) (6.8) PerbandinganValuasi
29.2 93.1 Perhitungan
1,740.0
1,769.3
0.664
1,173.9
$1,103.0

2007 2008
108.50 $ 111.76
(160.00) $ (164.80)
210.95 $ 217.70
(20.91) $ (6.75)

3.22%
3.20%
Timken Capital Structure
Bearing Companies Debt Equity Capital Debt to Cap Ratio
Initial Capital Structure 461.2 609.1 1,070.3 43.1%
Additional Debt due to Acquisition 200.0 600.0 800.0
Capital Structure after Acquisition 661.2 1209.1 1,870.3 35.4%

Jika Timken mengakuisisi Torrington dengan permbayaran tunai yang diperoleh dari hasil pinjaman baru sebesar $80
Dengan adanya pinjaman baru, maka Debt to Capital Ratio Timken akan menjadi 67% dan akan menurunkan credit g

Select Financial Ratios by S&P Credit-Rating Categories

(Median value for industrial companies, 2000–2002)

AAA AA A BBB
EBIT interest coverage (x) 23.4 13.3 6.3 3.9
EBITDA interest coverage (x) 25.3 16.9 8.5 5.4
EBITDA/sales (%) 23.4% 24.0% 18.1% 15.5%
Total debt/capital (%) 5.0% 35.9% 42.6% 47.0%

Untuk mempertahankan credit rating tidak turun dari BBB maka Timken harus menjaga rasio debt to capital nya mini
Bearing Companies Debt Equity Capital Debt to Cap Ratio
Initial Capital Structure 461.2 609.1 1,070.3 43%
Additional Debt due to Acquisition ? ? 800.0
Capital Structure after Acquisition 879.0 991.3 1,870.3 47%
47% 53%
Suggested Capital Structure
Additional Debt 417.8 maximum debt yang bisa dipinjam oleh Timken untuk mempertah
Additional Equity 382.2
Total Fund 800.0
 Credit Rating Cost of Debt
BBB 7.23%

AA 5.38%

ri hasil pinjaman baru sebesar $800, maka akan mengakibatkan komposisi struktur modal berubah
7% dan akan menurunkan credit grade rating dari BBB menjadi B yang berdampak pada peningkatan cost of debt (before tax) d

g Categories Alternative Payment Deal

Credit
Debt Stock Debt to Cap Ratio Rating
0 800 24.7% AA
BB B CCC 100 700 30.0% AA
2.2 1.0 0.1 200 600 35.4% AA
3.2 1.7 0.7 300 500 40.7% A
15.4% 14.7% 8.8% 400 400 46.0% BBB
57.7% 75.1% 91.7% 500 300 51.4% BB
600 200 56.7% BB
njaga rasio debt to capital nya minimal 47% 700 100 62.1% B
Credit Rating Cost of Debt 800 0 67.4% B
BBB 7.23%

BBB 7.23%

am oleh Timken untuk mempertahankan nilai credit rating minimal BBB

st of debt (before tax) dari 7.23% menjadi 10.84%.

Yield
5.38%
5.38%
5.38%
5.84%
7.23%
9.69%
9.69%
10.84%
10.84%
Mengitung Enterprise Value
EBITDA (Exhibit 8) 257.2
Enterprise value / EBITDA (Exhibit 8) 5.9
Enterprise Value (Timken) 1,517.48
Enterprise Value (Torrington) 1,103.00
Combined Value (with synergy) 2,620.48
Current Debt 461.20
Cash 82.10

Equity value = Enterprise value - debt value +cash

Equity value = $1,517.5 - $461.2 + 82.1 $ 1,138.38
# of shares (Exhibit 8) 63.40
Equity Value per share $ 17.96
Current price $ 19.00
Overvalued $ 1.04
Timken Capital Structure

Timken Torrington Combined Value

Enterprise Value 1,517.48 1,103.00 2,620.48
Debt 461.20 - 461.20
Cash 82.10 82.10
Equity value 1,138.38 1,103.00 2,241.38
#of shares 63.40 42.11 105.51
Value per share 17.96 21.24
Current price 19.00 19.00
Over/(under valued) 1.04 (2.24)
Scenario A Scenario B Scenario C
Enterprise Value (Timken) 1,517.5 1,517.5 1,517.5
Enterprise Value (Torrington) 1,103.0 1,103.0 1,103.0
Combined Value (with synergy) 2,620.5 2,620.5 2,620.5
Debt (Timken) 461.2 461.2 461.2
Additional Debt 800.0 400.0 -
Cash 82.1 82.1 82.1
Equity Value 1,441.4 1,841.4 2,241.4
# of Shares (before acquisition) 63.4 63.4 63.4
Additional Shares 0.0 21.1 42.1
Total Shares 63.4 84.5 105.5
Value per share 22.7 21.8 21.2
Current price 19.0 19.0 19.0
Over/(under valued) (3.7) (2.8) (2.2)

Value of Payments
Value from Cash Payment 800.0 400.0 -
Value from Timken Shares - 459.0 894.5
Total Value $800.00 $859.03 $894.49

Scenario A 100% Cash Payments ($800 million)

Scenario B 50% Cash Payments ($400 million) and 50% Stock Payments ($400 million)
Scenario C 100% Stock Payments ($800 million)
 Current price $19
Cash Stock #shares value per shaValue fromValue fromTotal Value
- 800.0 42.1 21.2 894.3 - 894.3
100.0 700.0 36.8 21.4 786.9 100.0 886.9
200.0 600.0 31.6 21.5 678.6 200.0 878.6
300.0 500.0 26.3 21.6 569.5 300.0 869.5
400.0 400.0 21.1 21.8 458.9 400.0 858.9
500.0 300.0 15.8 22.0 347.2 500.0 847.2
600.0 200.0 10.5 22.2 233.7 600.0 833.7
700.0 100.0 5.3 22.5 118.2 700.0 818.2
800.0 - - 22.8 - 800.0 800.0

Payments ($400 million)

Select Financial Ratios by S&P Credit-Rating Categories
(Median value for industrial companies, 2000–2002)
AAA AA A BBB BB B CCC Timken Ratio
EBIT interest coverage (x) 23.4 13.3 6.3 3.9 2.2 1.0 0.1 3.70
EBITDA interest coverage (x) 25.3 16.9 8.5 5.4 3.2 1.7 0.7 8.60
EBITDA/sales (%) 23.4% 24.0% 18.1% 15.5% 15.4% 14.7% 8.8% 10.1%
Total debt/capital (%) 5.0% 35.9% 42.6% 47.0% 57.7% 75.1% 91.7% 43.1%

Timken Financial Information

EBIT 110.7 Exhibit 1
Depre 146.5 Exhibit 1
EBITDA 257.2 Exhibit 8
Interest expense 29.9 Exhibit 1

Ratio Definitions:

EBIT interest coverage = EBIT/interest expense

EBITDA interest coverage = EBITDA/interest expense
EBITDA/sales = EBITDA/sales
Total debt/capital = (Long-term debt plus current maturities and other short-term borrowings)/(Long-term debt plus current maturities and other short-term
 Kategori
BB
A
CCC
BBB

s current maturities and other short-term borrowings + Shareholders’ equity)

 Timken Corporate Income Statements, 2001–02
($ millions, except percentages)

2001 2002 2001 2002

Total Operating Revenue $2,447.2 $2,550.1 100.0% 100.0%
Cost of Goods Sold (2,046.5) (2,080.5)
Gross Profit 400.7 469.6 16.4% 18.4%
Sales, General & Administrative (363.7) (358.9)
Impairment and Restructuring Expenses (54.7) (32.1)
Operating Profit (17.7) 78.6 -0.7% 3.1%
Interest Expense (net of interest income) (31.3) (29.9)
Receipt of Continued Dumping & Subsidy Offs 29.5 50.2
Other non-operating expenses (7.5) (13.4)
Income Before Tax (27.0) 85.5
Income Taxes (14.8) (34.1)
Net Income before Cumulative Effect of Accou ($41.7) $51.4 -1.7% 2.0%
Cumulative Effect of Accounting Change 0.0 (12.7)
Net Income ($41.7) $38.7

EBIT (before non-recurring) 37.0 110.7

Depreciation 152.5 146.5
Capital Expenditures 102.3 90.7
`1 Timken Balance Sheet
($ millions)

Assets 2001 2002

Cash 33.4 82.1
Receivables 307.8 361.3
Inventory 429.2 488.9
Other Current Assets 58.0 36.0
Total Current Assets 828.4 968.3
Net Property Plant & Equipment 1,305.3 1,226.2
Other Assets 399.4 553.9
Total Assets 2,533.1 2,748.4

Liabilities
Accounts Payable 258.0 296.5
Current Portion of Long Term Debt 42.4 111.1
Notes Payable 2.0 0.0
Other Current Liabilities 338.8 226.5
Total Current Liabilities 641.2 634.1
Long Term Debt 368.2 350.1
Deferred Tax Liability 742.0 1,155.1
Total Liabilities 1,751.3 2,139.3
Shareholders' Equity 781.7 609.1
Total Liabilities & Owners Equity. 2,533.1 2,748.4
 Ingersoll-Rand and Torrington Comparative Income Statements, 2001–02
($ millions, except percentages)

Ingersoll-Rand

2001 2002 2001 2002

Net sales $8,604.2 $8,951.3 100.0% 100.0%
Cost of goods sold 6,736.5 6,826.5
Gross profit 1,867.7 2,124.8 21.7% 23.7%
Selling and administrative expenses 1,370.5 1,439.8
Restructuring charges 73.7 41.9
Operating income 423.5 643.1 4.9% 7.2%
Net interest expense (268.8) (241.0)
Minority interests (20.7) (14.4)
Earnings before income taxes 134.0 387.7
(Benefit)/provision for income taxes (48.1) 20.3
Earnings from continuing operations 182.1 367.4

Discontinued operations (net of tax) 64.1 93.6

Cumulative effect of accounting changes 0.0 (634.5)
Net earnings $246.2 ($173.5) 2.9% -1.9%

Torrington

2001 2002 2001 2002

Sales $1,004.3 $1,204 100.0% 100.0%
Operating Income $78.0 $85.2 7.8% 7.1%
 Ingersoll-Rand Balance Sheet
($ millions)

Assets 2001 2002

Cash $114.0 $342.2
Receivables 1,359.8 1,405.3
Inventory 1,143.9 1,983.8
Deferred Tax Asset 321.2 0.0
Other Current Assets 760.2 381.1
Total Current Assets 3,699.1 4,112.4
Net Property Plant & Equipment 1,289.5 1,279.9
Goodwill 4,807.5 4,005.5
Intangible Assets 848.1 890.9
Other Assets 489.6 520.9
Total Assets $11,133.8 $10,809.6

Liabilities
Accounts Payable $701.6 $2,347.4
Accrued Expenses 1,470.7 1,155.5
Short Term Debt 561.9 0.0
Other Current Liabilities 249.3 295.2
Total Current Assets 2,983.5 3,798.1
Long Term Debt 2,900.7 2,092.1
Minority Interests 107.6 115.1
Other Noncurrent Liabilities 1,225.4 1,326.1
Total Liabilities 7,217.2 7,331.4
Shareholders' Equity 3,916.6 3,478.2
Total Liabilities & Owners Equity $11,133.8 $10,809.6
This data was extracted by EdgarScan from the PricewaterhouseCoopers Global Technology Centre.
nology Centre.
 Torrington Financial Summary and Projections, 1999–2007
($ millions)

1999 2000 2001 2002 2003E 2004E 2005E 2006E 2007E

Net sales $1,239.5 $1,161.0 $1,004.3 $1,204 $1,282.0 $1,365.3 $1,454.1 $1,548.6 $1,649.2
Operating income $145.7 $172.6 $78.0 $85.2 $90.7 $96.6 $102.9 $109.5 $116.7

Sales Growth -6.3% -13.5% 19.9% 6.5% 6.5% 6.5% 6.5% 6.5%
Operating Margin 11.8% 14.9% 7.8% 7.1% 7.1% 7.1% 7.1% 7.1% 7.1%

Capital Expenditures $84.0 $85.0 $45.0 $41.0 $175.0 $130.0 $140.0 $150.0 $160.0
Depreciation Expense $75.0 $77.0 $79.0 $80.0 $84.2 $90.0 $96.0 $102.0 $108.5
`
 Financial Data on Companies in Bearing Industry

EBITDA Price
Net Interest # of Per

Bearing Companies Beta Debt* Sales* EBITDA Income* Coverage Shares* Share
Kaydon Corp. 1.25 72.4 279.4 60.1 25.4 3.6 30.3 20.0
NN Inc. 0.85 53.1 180.2 26.2 4.7 6.5 15.4 9.3
Timken 1.10 461.2 2,550.1 257.2 51.5 7.5 63.4 16.8
Commercial Metals 0.63 255.6 2,441.5 138.2 40.5 5.2 28.0 17.9
Mueller Industries 1.08 18.2 955.3 123.9 71.2 84.9 34.3 25.9
Precision Castparts Corp 1.10 612.4 2,117.2 389.6 159.4 6.2 52.8 21.7
Quanex Corp. 0.75 75.6 994.4 127.0 55.5 5.2 16.4 34.7
Worthington Industries 0.49 290.9 2,219.9 188.0 75.2 2.4 85.9 18.7

* Millions Price EBITDA

# of Per Interest
Bearing Companies Debt* Shares* Share EBITDA Coverage Int expense
Effective int rate
Kaydon Corp. 72.4 30.3 20.0 60.1 3.6 16.51484332 22.82%
NN Inc. 53.1 15.4 9.3 26.2 6.5 4.01 7.54%
Timken 461.2 63.4 16.8 257.2 7.5 34.17 7.41%
Commercial Metals 255.6 28.0 17.9 138.2 5.2 26.68 10.44%
Metals Usa Inc. 128.7 20.2 - 4.0 0.2 17.09 13.28%
Mueller Industries 18.2 34.3 25.9 123.9 84.9 1.46 8.04%
Precision Castparts Corp 612.4 52.8 21.7 389.6 6.2 62.70 10.24%
Quanex Corp. 75.6 16.4 34.7 127.0 5.2 24.45 32.35%
Worthington Industries 290.9 85.9 18.7 188.0 2.4 79.74 27.41%

Debt 400
Rate 10.84%
Assumed matu 6 years
Cost of debt 7.23%

43.36 0.342187
7.23%
43.36 4.732883
205.2178
 Enterprise
EBITDA Value/ Debt Perbandingan Rasio Keuangan

Price
Earning Per Earning
% of Sales EBITDA Rating EPS PER Bearing Companies Share Ratio
21.5% 11.3 0.84 23.88 Kaydon Corp. 0.84 23.88
14.5% 7.5 0.30 30.49 NN Inc. 0.30 30.49
10.1% 5.9 BBB 0.81 20.64 Timken 0.81 20.64
5.7% 5.5 BBB 1.45 12.38 Commercial Metals 1.45 12.38
13.0% 7.3 2.08 12.47 Mueller Industries 2.08 12.47
18.4% 4.5 BBB- 3.02 7.18 Precision Castparts Corp 3.02 7.18
12.8% 5.1 3.38 10.27 Quanex Corp. 3.38 10.27
8.5% 10.1 BBB 0.87 21.38 Worthington Industries 0.87 21.38
17.34 Average 17.34

Enterprise
Enterprise Enterprise Method Value
Value/ Value Discounted Cash Flows (stand alone) $ 160.5
EBITDA Market value Market Multiple Valuation $ 974.7
11.3 678.9 607.272 679.6 0.106479 Discounted Cash Flows (with synergies) $ 1,103.0
7.5 196.3 142.145 195.3 0.272097
5.9 1,517.7 1062.15 1,523.4 0.302754 Estimated Torrington Value $ 800.0
5.5 760.1 501.67 757.3 0.33756 Synergy Premium $ 303.0
128.7
7.3 904.6 887.256 905.4 0.020064
4.5 1,753.2 1143.79 1,756.2 0.348709
5.1 647.9 569.531 645.1 0.117138
 10.1 1,899.2 1607.25 1,898.1 0.153247
57.2
7.15

7.41%

7.23%
10.84%

263.1250255777
263.1250255777 468.34283
Enterprise EBITDA
Value % of Sales
678.9 21.5%
196.3 14.5%
1,517.7 10.1%
760.1 5.7%
904.6 13.0%
1,753.2 18.4%
647.9 12.8%
1,899.2 8.5%
 Capital-Market Information
(December 2002)

Government Yield
Short Term 1.86%
Intermediat 3.55%
Long Term 4.97%

Industrials
AAA 5.22%
AA 5.38%
A 5.84%
BBB 7.23%
BB 9.69%
B 10.84%