Beruflich Dokumente
Kultur Dokumente
Balance Sheet
Annual Standardised in Millions of British Pound Sterling
2002 2003 2004 2005 2006
Period End Date
Assets (£ Millions)
Cash and Short Term Investments 270 380 600 956 864
4% 5% 7% 10% 9%
Accounts Receivable - Trade, Net 1,026 1,002 1,212 1,383 1,506
% Receivable of Sales 14% 13% 14% 15% 15%
Total Inventory 1,337 1,404 1,732 1,954 1,890
Inventory/Sales 19% 18% 21% 21% 19%
Prepaid Expenses 320 336 0 0 0
Other Current Assets, Total 137 143 0 3 1
Total Current Assets 3,305 3,396 3,714 4,446 4,412
CA /Sales 0.46 0.43 0.44 0.49 0.45
Liabilities (£ Millions)
Accounts Payable 1,053 992 1,191 1,278 1,315
15% 12% 14% 14% 14%
Payable/Accrued -- -- -- -- --
Accrued Expenses 0 0 42 45 31
0% 0% 1% 0% 0%
Other Liabilities 583 591 1164 1144 1002
Total Current Liabilities 1,636 1,583 2,397 2,467 2,348
Current Assets/CL Ratio 2 2 2 2 2
1,199 1,163 1,128 1,094 1,061 Long term debt is reducing YoY by Average 3%
-3% -3% -3% -3% -3%
1,173 1,399 1,639 1,894 2,166
4,961 5,358 5,786 6,249 6,749
0.47 0.47 0.47 0.47 0.47
-- -- -- -- --
-- -- -- -- --
3,962 4,279 4,621 4,991 5,390
8,923 9,636 10,407 11,240 12,139
0.85 % of Sales Assets
0.47
20% % Days Payable
10%
2 Liquidity Ratio
14% % of Sales Payable
14% % of Sales Receivable
verage Change is 2%
g YoY by Average 3%
Corus Group Ltd | Thomson Reuters Eikon
Income Statement
Annual Standardised in Millions of British Pound Sterling
2002 2003 2004 2005 2006
Revenue 7,188 7,953 8,373 9,155 9,733
Net Sales 7,188 7,953 8,373 9,155 9,733
Total Revenue 7,188 7,953 8,373 9,155 9,733
Growth in Revenue 11% 5% 9% 6%
Cost of Revenue, Total 6,925 4,812 4,913 5,463 6,275
% Cost of Revenue 96% 61% 59% 60% 64%
Gross Profit 263 3,141 3,460 3,692 3,458
Selling/General/Admin. Expenses, Total 656 1,745 1,611 1,658 1,499
Selling/General/Administrative Expense 9% 22% 19% 18% 15%
Total Operating Expense 7,613 8,152 7,756 8,512 9,276
106% 103% 93% 93% 95%
Operating Income (425) (199) 617 643 457
Net Income -458 -305 447 452 223
PAT % of Sales -6% -4% 5% 5% 2%
Without Synergy
EBIT -425 -199 617 643 457
Terminal Value
Enterprise Value
Firm Value(EV+ Cash/Equivalents)
$ mn. Firm Value(EV+ Cash/Equivalents)
With Synergy
EBIT -425 -199 617 643 457
Cost Synergy
Revised EBIT -425 -199 617 643 457
EBIT*(1-Tax%) -298 -139 432 450 320
NWC 1,447 1,557 1,711 2,017 2,051
Change in NWC 110 154 306 34
Net PPE 2,871 2,729 2,793 2,820 2,758
Change in Net PPE -142 64 27 -62
Terminal Value
Enterprise Value
Firm Value(EV+ Cash/Equivalents)
Extra Paid
Forecast Forecast Forecast Forecast Forecast
2007 2008 2009 2010 2011
10512 11353 12261 13242 14301
10512 11353 12261 13242 14301
10512 11353 12261 13242 14301
7% 8% 8% 8% 8%
6,394 6,906 7,458 8,055 8,699
61% 61% 61% 61% 61%
4117 4447 4802 5187 5601
1963 2120 2289 2473 2670
19% 19% 19% 19% 19%
10018 10558 11403 12182 13157
95% 93% 93% 92% 92%
494 795 858 1059 1144
440 476 514 555 599
4% 4% 4% 4% 4%
4530
3123
4064
7924
494 795 858 1059 1144
179 179 179 179 179
673 974 1037 1238 1323
471 682 726 867 926
2,096 2,263 2,444 2,640 2,851
45 168 181 195 211
2,813 2,869 2,927 2,985 3,045
55 56 57 59 60
4266
3348
4289
8363
12000
3637
Metrics for Forecasting
Avg. Revenue Growth 8%
Avg. % COGS of Sales 61%
Avg. % SG&A of Sales 19%
Average operating expenses % of Sales 95%
Corporate Tax Rate 30%
PAT % of Sales 4%
https://www.contractorcalculator.co.uk/taxtables2006.aspx
References
https://bib.kuleuven.be/files/ebib/jaarverslagen/CORUS_2006.pdf
http://tata-corus.blogspot.com/
Corus’ credit ratings, which are a key determinant of the terms on which the
Group can issue debt, improved during the year and at 30 December 2006 the
corporate long term ratings were as follows: • Moody’s: Ba2 • Standard &
Poor’s: BB
https://ycharts.com/indicators/moodys_seasoned_
aaa_corporate_bond_yield
https://bib.kuleuven.be/files/ebib/jaarverslagen/C
ORUS_2006.pdf
Date Acquirer Target Region EV/EBITDA
Jan, 2007 Nucor Harris Canada 9
Dec, 2006 Evraz Oregon Steel US 5.8
Dec, 2006 Arcelor Mittal Sicartsa Mexico 5.7
June, 2006 One Steel SMorgon Australia 9.9
June, 2006 Mittal Arcelor Europe 5.5
May, 2006 Arcelor Severstal Russia 5.6
Nov, 2005 Arcelor Dofasco N America 6.1
Oct, 2005 Mittal Krivorizhstal Ukraine 4.7
Sep, 2005 Oyak Erdemir Turkey 7.3
Oct, 2004 Mittal ISG N America 5.5
Oct, 2004 Arcelor CST L America 3.8
Average 6.3
Source
http://www.aabri.com/manuscripts/09198.pdf
http://www.thetakeoverpanel.org.uk/new/
~45% higher estimated Valuation by Tata Steel than Industry Average of similar transactions for majority stake control
ajority stake control
EV/MT
Company ROA % ROE % ($) P/E P/B
Arcellor Mittal 6.8 11.1 1192 11x 2.1
POSCO 11.3 15.7 1807 13.9x 2.2
Bao Steel China 5.98 5.9 2512 3.9x 3.9
US Steel 16.8 31.4 662 2.0x 2
Nucor 17 29.38 762 3.0x 3
Thyssen Krupp 7.4 21.4 N.A 2.1x 2.1
$ Bn
EBIDTA TATA 1.34
Steel_2006
Median_Valuation 8.69
Average_Valuation 9.69
EV/EBITDA Company name Production Capacity Comments
6.2 Arcellor Mittal 110 Significantly larger
7.9 Posco 30.5 Larger
11.2 Bao Steel China 23 Comparable
7.2 US Steel 19 Comparable
5.8 Nucor 18.5 Comparable
4.8 Corus 18 Self
Thyssen Krupp 16.5 Comparable
7.3
6.5
Type Value(US $Bn)
Actual Acquisition 12
DCF Without Synergy 7.93
DCF With Synergy 8.36
EBITDA Median_Valuation 8.69
EBITDA Average_Valuation 9.69
Value(US $Bn)
14
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10
8
6
4
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