Assumptions for Forecasting Model

Income Statement
Sales
Cost of Sales
Selling, General & Admn. Expenses
Depreciation
Other Net (Income)/Expenses
Interest Income
Interest Expense

Income Taxes

Balance Sheet
Assets
Cash and Marketable Securities
Accounts Receivable
Inventories
Other Current Assets
Property, Plant and Equipment, Gross
Accumulated Depreciation
Property, Plant and Equipment, Net
Other Non-Current Assets

Liabilities and Shareholders' Equity

Accounts Payable
Short-Term Debt
Other Current Liabilities
Long-Term Debt
Deferred Income Taxes
Other Non-Current Liabilities
Paid-In Capital
Retained Earnings

Other Assumptions
Dividend payout ratio
Interest on short-term debt
Interest on long-term debt
Interest on cash & marketable securities
Ultratech Limited

Assumption

Will grow at 5%, based on input from management

52% of sales
29% of sales
8% of Gross PP&E, based on analysis of depreciation schedules
-0.7% of sales
Calculate based on average balance and interest rate specified later
For STD calculate based on average balance and interest rate
For LTD interest expense will remain unchanged at $13.5 million
35% of pre-tax income

2.1% of sales
8.4% of sales
8.8% of sales
7.6% of sales
Will grow at 11% per year, based on discussion with management
Calculated from other items
Calculated from other items
Will grow at 10% per year

6.1% of sales
Use to balance the balance sheet (plug)
8.3% of sales
Will remain unchanged
1.4% of sales
7.6% of sales
Will remain unchanged
Calculated from other items

40%, based on discussion with management

7%, based on economic forecast
Rates embedded in existing debt, annual expense $13.5 million
6%, based on economic forecast
Income Statement and Balance Sheet for Vitex Corp.

Income Statement ($ Million)

Historical period Forecast Period
2008 2009 2010 2011
Sales $1,334.4
Cost of Sales $667.0
Gross Operating Income $667.4

Selling, General & Admn. Expenses $373.3

Depreciation $75.2
Other net (Income)/Expenses ($8.2)
EBIT $227.1

Interest (Income) ($2.0)

Interest Expense $23.7
Pre-Tax Income $205.4

Income Taxes $72.6

Net Income $132.8

Dividends $40.1
Addition to Retained Earnings $92.7

Balance Sheet ($ Million)

Assets
Cash and Marketable Securities $28.4
Accounts Receivable $120.1
Inventories $116.8
Other Current Assets $97.5
Total Current Assets $362.8

Property, Plant and Equipment, Gross $913.1

Accumulated Depreciation $427.9
Property, Plant and equipment, Net $485.2

Other Non-Current Assets $456.3

Total Non-Current Assets $941.5

Total Assets $1,304.3

Liabilities and Shareholders' Equity

Accounts Payable $80.5
Short-Term Debt $110.3
Other Current Liabilities $111.3
Total Current Liabilities $302.1

Long-Term Debt $218.1

Deferred Income Taxes $12.7
Other Non-Current Liabilities $94.5
Total Liabilities $627.4
Paid-In Capital $44.8
Retained Earnings $632.1
Total Shareholders' Equity $676.9

Total Liabilities and Shareholders' Equity $1,304.3

riod Forecasting
2012 Factor