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1 BIS 200012 2 10 1-2 20003 3

4 1-1 1-2 * BIS CF CF CF

PLAN DO BSPL BSPL SEE BS PL 5

6 1-3 PLAN DO SEE PLAN DO SEE PLAN DO SEE PLAN DO SEE BSPL BS PL

4 1-4 7

Coffee Break 2 BS PL CF) PLANDO SEE 8

1 1-1 9

31 1-2 10

11 3 1-3 CF CF CF CF CF CF CF CF CF CF FCF FCF FCF

1 1 12

13 NPV 100 1 100 1-1 2 1 100 100 1 5% 100 1 105 1 105 100 1-1 100 100 1 100 1 100 100 5 100 100 1 105 1 105 1 100(1+0.05)105 1 105(1+0.05)100 100 100 100 105

NPV NPV IRR NPV NPV (Net Present Value) 1 1 2 1 NPV 1-2 NPV A 1 2 3 CF 0 120 120 100 CF 250 20 20 0 FCF 250 100 100 100 FCF 250 95.2 90.7 86.4 22.3 * NA 100 100 100 1+0.05 (1+0.05) 2 (1+0.05) 3 GO A B B 1 2 3 CF 0 100 100 100 CF 250 20 20 0 FCF 250 80 80 100 FCF 250 76.2 72.6 86.4 14.8 * NA 80 80 100 1+0.05 (1+0.05) 2 (1+0.05) 3 NO GO DCF Discounted Cash Flow NPV Net present value) NPV NPV NPV= DCF 5 14

NPV NPV 2 NPV NPV 1-3 A C C 1-3 NPV A 1 2 3 CF 0 120 120 100 CF 250 20 20 0 FCF 250 100 100 100 FCF 250 95.2 90.7 86.4 22.3 * NA 100 100 100 1+0.05 (1+0.05) 2 (1+0.05) 3 NPV C C 1 2 CF 0 70 150 CF 160 20 0 FCF 160 50 150 FCF 160 47.6 136.1 23.7 * NA 50 150 1+0.05 (1+0.05) 2 5 15

Coffee Break NPV NPV IRR IRR IRR Internal Rate of Return NPV IRR IRR IRR IRR IRR 0 1 2 3 CF -50 20 40 50-50 -30 10 60 2 16

17 2 CFO 2-1 PL 2-1 CF FCF

18 PL BS PL BSPL 1 1 2-3 BSPL CFO 2-2 1 5,000 1,500 2,500 1,000 5,000 1,500 2,500 1,000 12,000 12,000 60,000 18,000 30,000 12,000 CF 12,000 12,000 12,000 60,000 18,000 30,000 12,000 CF 12,000 4,000 12,000 20,000 6,000 10,000 4,000 4,000 4,000 20,000 6,000 30,000-16,000 CF CF 4,000 12,000 20,000 18,000 30,000-28,000 4,000 4,000 20,000 6,000 30,000-16,000 12,000 4,000

PL CFO 2-3 A 100 100 120 10 70 95 50-70 30-25 120 20-95 35 5 19

Coffee Break CFO CFO 20

21 PLAN-DO-SEE DO PLAN SEE PLBS CFO 3-2 3 3- PLAN DO SEE PLAN PLAN DO PLAN DO SEE PLAN DO SEE PLAN DO SEE PLAN PLAN DO

22 NPV CFO PLAN 3 5 10 SEE PLAN PLAN 3-

23 3-3 A A B B PLBS 3-3 A A 20 5 25 100 50 50 15 40 100 120 70 50 30 20 120 70 50 30 20 =-- B 10 15 25 40 40 0 5 20 80 50 30 20 10 80 50 30 20 10 =-- B

24 CFO 2 PLAN ROA ROE FCF EVA CFROI FCF FCF ROA ROE FCF EVA CFROI FCF FCF 3-3

CFO EVA CFROI CFO EVA EVA EVA NPV EVA EVA CFROI HOLT CFROI CFROI 25

Coffee Break EVA EVA EVA EVA EVA EVA EVA 26

1 2000 3 20003 BS PL M&A BS PL BS PL 1-1 BS PL M&A BSPL BSPL 27

1-2 20003 28

2 BSPL 29

30 BS PL 2-1 CF BSPL CF EPS 1 1 CF CF CF

2-2 CF M&A CF CF CF CF CF 31

2-3 CF CF CF CF CF 32

2-4 CF CF CF * CF CF CF 33

Coffee Break CFO LBO(Leveraged Buy Out 34

3 P.11 100 10 5 1.2 40% 3 0.5 2 3 1 1 0.5 1.5 0.8 0.4 35

CF = 10 + P.11 15 5 = 15 = = = = 1.5+0.8 0.4 1+1 0.5 0.4 FCF = CF 15 CF 0.4 5.5 1.2 = 7.9 FCF = CF 15 0.4 5 1.2 = 8.4 FCF = CF 15 0.4 3 1.2 = 10.4 36