assigment

Profit and Loss statement, k USD, Global

Company 1 Company 2 Company 3 Company 4 Company 5 Sales revenue 1,700,620 966,871 1,536,024 717,157 1,342,491

Costs and expenses Variable production costs 487,922 176,034 557,196 99,774 474,369 Feature costs 73,356 40,993 84,684 36,947 111,582 Contract manufacturing costs 73,265 130,494 564 99,574 564 Transportation and tariffs 99,821 20,998 124,241 3,725 111,737 R&D 171,365 245,900 21,365 285,000 76,365 Promotion 40,180 32,100 24,000 137,890 45,500 Administration 100,556 102,303 99,076 102,781 99,076 Costs and expenses total 1,046,465 748,822 911,127 765,691 919,193

OPERATING PROFIT BEFORE DEPR. (EBITDA) 654,155 218,050 624,898 -48,534 423,298 Depreciation from fixed assets 126,225 126,225 126,225 126,225 126,225

OPERATING PROFIT (EBIT) 527,930 91,825 498,673 -174,759 297,073 Net financing expenses 13,441 56,041 5,696 105,643 6,598

PROFIT BEFORE TAXES 514,489 35,784 492,977 -280,401 290,475 Income taxes 142,462 80,345 107,253 36,769 52,889

PROFIT FOR THE ROUND 372,027 -44,562 385,724 -317,170 237,586

Balance sheet, k USD, Global

Company 1 Company 2 Company 3 Company 4 Company 5

ASSETS Fixed assets 715,275 715,275 715,275 715,275 715,275 Inventory 353,593 410,458 0 638,837 0 Receivables 65,474 37,225 59,137 27,611 51,686 Cash and cash equivalents 547,297 439,512 830,927 279,750 687,605 Total assets 1,681,639 1,602,470 1,605,339 1,661,473 1,454,566

SHAREHOLDERS' EQUITY AND LIABILITIES Equity Share capital 340,000 340,000 340,000 340,000 340,000 Additional paid-in capital 0 0 0 0 0 Profit for the round 372,027 -44,562 385,724 -317,170 237,586 Retained earnings 340,309 340,309 340,309 340,309 340,309 Total equity 1,052,335 635,747 1,066,032 363,138 917,895

Liabilities Long-term debts 509,789 309,789 509,789 509,789 509,789 Short-term debts (unplanned) 91,242 642,746 0 779,305 0 Payables 28,273 14,188 29,517 9,241 26,883 Total liabilities 629,304 966,723 539,306 1,298,335 536,672

Total shareholders' equity and liabilities 1,681,639 1,602,470 1,605,339 1,661,473 1,454,566

Profit and Loss statement, k USD, USA

Company 1 Company 2 Company 3 Company 4 Company 5

Sales revenue from markets 425,579 299,034 319,427 317,275 473,940 from internal transfers 372,710 102,474 460,284 20,279 317,061 Sales revenue total 798,289 401,507 779,711 337,554 791,001

Costs and expenses Variable production costs 487,922 176,034 557,196 99,774 474,369 Feature costs 14,813 13,290 14,800 17,048 37,091 Contract manufacturing costs 17,215 23,772 564 7,893 564 Transportation and tariffs 0 0 0 0 0 R&D 171,365 245,900 21,365 285,000 76,365 Promotion 10,580 8,000 8,000 50,000 20,000 Administration 80,289 82,303 79,076 82,781 79,076 Costs of imported products 0 0 0 0 0 Costs and expenses total 782,184 549,299 681,001 542,496 687,466

OPERATING PROFIT BEFORE DEPR. (EBITDA) 16,105 -147,792 98,710 -204,942 103,535 Depreciation from fixed assets 126,225 126,225 126,225 126,225 126,225

OPERATING PROFIT (EBIT) -110,120 -274,017 -27,515 -331,167 -22,690 Net financing expenses 21,599 63,404 15,549 110,329 15,822

PROFIT BEFORE TAXES -131,719 -337,421 -43,065 -441,496 -38,512 Income taxes 0 0 0 0 0

PROFIT FOR THE ROUND -131,719 -337,421 -43,065 -441,496 -38,512

Balance sheet, k USD, USA

Company 1 Company 2 Company 3 Company 4 Company 5

ASSETS Fixed assets 715,275 715,275 715,275 715,275 715,275 Inventory 271,598 410,458 0 638,837 0 Receivables 16,385 11,513 12,298 12,215 18,247 Cash and cash equivalents 2,000 2,000 277,123 2,000 273,396 Total assets 1,005,258 1,139,246 1,004,696 1,368,327 1,006,918

SHAREHOLDERS' EQUITY AND LIABILITIES Equity Share capital 300,000 300,000 300,000 300,000 300,000 Additional paid-in capital 0 0 0 0 0 Profit for the round -131,719 -337,421 -43,065 -441,496 -38,512 Retained earnings 170,928 170,928 170,928 170,928 170,928 Total equity 339,209 133,507 427,863 29,432 432,416

Liabilities Long-term debts 509,789 309,789 509,789 509,789 509,789 Short-term debts (unplanned) 91,242 642,746 0 779,305 0 Internal loans 45,000 45,000 45,000 45,000 45,000 Payables 20,018 8,204 22,044 4,802 19,713 Total liabilities 666,049 1,005,739 576,832 1,338,896 574,502

Total shareholders' equity and liabilities 1,005,258 1,139,246 1,004,696 1,368,327 1,006,918

PARENT COMPANY'S CASH FLOW STATEMENT, k USD

Company 1 Company 2 Company 3 Company 4 Company 5

Cash provided by operating activities Operating profit before depreciation (EBITDA) 16,105 -147,792 98,710 -204,942 103,535 Change in receivables (incr - / decr +) -3,408 1,464 679 762 -5,270 Change in inventories (incr - / decr +) -221,345 -360,205 50,253 -588,584 50,253 Change in payables (incr + / decr -) -1,490 -13,304 535 -16,707 -1,795 Net financing expenses -21,599 -63,404 -15,549 -110,329 -15,822 Income taxes 0 0 0 0 0 Total -231,737 -583,241 134,628 -919,800 130,902

Cash provided by investment activities Plant investments (-) / divestments (+) 0 0 0 0 0

Cash flow before financing activities -231,737 -583,241 134,628 -919,800 130,902

Cash provided by financing activities Dividends 0 0 0 0 0 Proceeds from equity issues and buybacks 0 0 0 0 0 Dividends received from subsidiaries 0 0 0 0 0 Change in long-term debt (incr + / decr -) 0 -200,000 0 0 0 Change in short-term debt (incr + / decr -) 91,242 642,746 0 779,305 0 Change in internal loans 0 0 0 0 0 Total 91,242 442,746 0 779,305 0 Change in cash and cash equivalents -140,495 -140,495 134,628 -140,495 130,902

Cash 1.1. 142,495 142,495 142,495 142,495 142,495 Cash 31.12. 2,000 2,000 277,123 2,000 273,396

Profit and Loss statement, k USD, Asia

Company 1 Company 2 Company 3 Company 4 Company 5

Sales revenue from markets 726,681 400,884 804,838 270,115 868,552 from internal transfers 41,218 0 0 8,877 0

Sales revenue total 767,898 400,884 804,838 278,992 868,552

Costs and expenses Variable production costs 0 0 0 0 0 Feature costs 33,705 16,236 43,485 13,819 74,491 Contract manufacturing costs 56,050 106,722 0 91,681 0 Transportation and tariffs 74,386 9,531 97,842 0 111,737 R&D 0 0 0 0 0 Promotion 19,500 16,500 8,000 85,290 11,500 Administration 10,267 10,000 10,000 10,000 10,000 Costs of imported products 219,615 27,642 286,411 0 317,061 Costs and expenses total 413,524 186,630 445,738 200,789 524,789

OPERATING PROFIT BEFORE DEPR. (EBITDA) 354,375 214,253 359,099 78,203 343,763 Depreciation from fixed assets 0 0 0 0 0

OPERATING PROFIT (EBIT) 354,375 214,253 359,099 78,203 343,763 Net financing expenses -7,264 -6,673 -9,148 -4,112 -8,832

PROFIT BEFORE TAXES 361,639 220,926 368,247 82,314 352,595 Income taxes 54,246 33,139 55,237 12,347 52,889

PROFIT FOR THE ROUND 307,393 187,787 313,010 69,967 299,706

Balance sheet, k USD, Asia

Company 1 Company 2 Company 3 Company 4 Company 5

ASSETS Fixed assets 0 0 0 0 0 Inventory 81,995 0 0 0 0 Receivables 27,977 15,434 30,986 10,399 33,439 Cash and cash equivalents 271,515 245,229 355,240 131,405 341,212 Total assets 381,488 260,663 386,227 141,804 374,651

SHAREHOLDERS' EQUITY AND LIABILITIES Equity Share capital 20,000 20,000 20,000 20,000 20,000 Profit for the round 307,393 187,787 313,010 69,967 299,706 Retained earnings 72,775 72,775 72,775 72,775 72,775 Total equity 400,168 280,563 405,786 162,743 392,481 Liabilities Short-term debts (unplanned) 0 0 0 0 0 Internal loans -25,000 -25,000 -25,000 -25,000 -25,000 Payables 6,319 5,101 5,441 4,062 7,170 Total liabilities -18,681 -19,899 -19,559 -20,938 -17,830

Total shareholders' equity and liabilities 381,488 260,663 386,227 141,804 374,651

Profit and Loss statement, k USD, Europe

Company 1 Company 2 Company 3 Company 4 Company 5

Sales revenue Sales revenue 548,361 266,954 411,759 129,767 0

Costs and expenses Feature costs 24,838 11,467 26,399 6,081 0 Transportation and tariffs 25,435 11,467 26,399 3,725 0 Promotion 10,100 7,600 8,000 2,600 14,000 Administration 10,000 10,000 10,000 10,000 10,000 Costs of imported products 194,312 74,832 173,873 29,156 0 Costs and expenses total 264,685 115,366 244,671 51,562 24,000

OPERATING PROFIT BEFORE DEPR. (EBITDA) 283,676 151,588 167,089 78,206 -24,000 Depreciation from fixed assets 0 0 0 0 0

OPERATING PROFIT (EBIT) 283,676 151,588 167,089 78,206 -24,000 Net financing expenses -894 -690 -706 -575 -392

PROFIT BEFORE TAXES 284,570 152,278 167,795 78,781 -23,608

Income taxes 88,217 47,206 52,016 24,422 0

PROFIT FOR THE ROUND 196,353 105,072 115,778 54,359 -23,608

Balance sheet, k USD, Europe

Company 1 Company 2 Company 3 Company 4 Company 5

ASSETS Fixed assets 0 0 0 0 0 Receivables 21,112 10,278 15,853 4,996 0 Cash and cash equivalents 273,782 192,283 198,563 146,345 72,997 Total assets 294,894 202,560 214,416 151,342 72,997

SHAREHOLDERS' EQUITY AND LIABILITIES Equity Share capital 20,000 20,000 20,000 20,000 20,000 Profit for the round 196,353 105,072 115,778 54,359 -23,608 Retained earnings 96,605 96,605 96,605 96,605 96,605 Total equity 312,958 221,677 232,384 170,964 92,997

Liabilities Short-term debts (unplanned) 0 0 0 0 0 Internal loans -20,000 -20,000 -20,000 -20,000 -20,000 Payables 1,936 883 2,033 378 0 Total liabilities -18,064 -19,117 -17,967 -19,622 -20,000

Total shareholders' equity and liabilities 294,894 202,560 214,416 151,342 72,997

Ratios and key financial indicators

Ratios Company 1 Company 2 Company 3 Company 4 Company 5

Market capitalization of the company, k USD 7,593,256 4,555,195 7,356,590 3,031,951 6,693,202 Shares outstanding at the end of round, k shares 30,000 30,000 30,000 30,000 30,000 Share price at the end of round, USD 253 152 245 101 223 Average trading price during the round, USD 193 193 193 193 193 Dividend yield, % 0 0 0 0 0 P/E ratio 20.41 n/a 19.07 n/a 28.17 Cumulative total shareholder return (p.a.), % 30.93 -21.46 26.85 -47.72 15.41

Key financial indicators, % Company 1 Company 2 Company 3 Company 4 Company 5

Operating profit before depreciation (EBITDA) 38.47 22.55 40.68 -6.77 31.53 Operating profit (EBIT) 31.04 9.50 32.47 -24.37 22.13 Return on sales (ROS) 21.88 -4.61 25.11 -44.23 17.70 Equity ratio 62.58 39.67 66.41 21.86 63.10 Net debt to equity (gearing) 5.11 80.70 -30.12 278 -19.37 Return on capital employed (ROCE) 37.13 6.61 36.06 -12.30 22.70 Return on equity (ROE) 42.94 -6.77 44.18 -60.79 29.73 Earnings per share (EPS), USD 12.40 -1.49 12.86 -10.57 7.92

Market report, global Global market shares, %

Company 1 Company 2 Company 3 Company 4 Company 5 Total 25.60 13.57 28.04 8.16 24.63

Tech 1 23.60 13.94 28.79 8.38 25.29 Tech 2 100 0 0 0 0 Tech 3 0 0 0 0 0 Tech 4 0 0 0 0 0

Market report, USA

Company 1 Company 2 Company 3 Company 4 Company 5 Tech 1

Selling Price, USD 270 270 259 335 230 Number of offered features 2 2 2 3 3 Sales, k units 1,108 1,108 1,233 947 2,061 Demand, k units 1,108 1,108 1,233 947 2,061 Tech 2 Selling Price, USD 500 Number of offered features 1 Sales, k units 253 Demand, k units 253 Tech 3 Selling Price, USD Number of offered features Sales, k units Demand, k units Tech 4 Selling Price, USD Number of offered features Sales, k units Demand, k units

USA market shares, % Company 1 Company 2 Company 3 Company 4 Company 5 Total 20.28 16.51 18.38 14.12 30.71 Tech 1 17.16 17.15 19.10 14.67 31.92 Tech 2 100 0 0 0 0 Tech 3 0 0 0 0 0 Tech 4 0 0 0 0 0

Market report, Asia

Company 1 Company 2 Company 3 Company 4 Company 5 Tech 1 Selling Price, RMB 2,000 2,400 1,799 2,850 1,700 Number of offered features 2 2 2 3 3 Sales, k units 2,755 1,353 3,624 768 4,138 Demand, k units 2,755 1,353 3,624 768 4,643

Tech 2 Selling Price, RMB 3,500 Number of offered features 1 Sales, k units 107 Demand, k units 107

Tech 3 Selling Price, RMB Number of offered features Sales, k units Demand, k units

Tech 4 Selling Price, RMB Number of offered features Sales, k units Demand, k units

Asia market shares, % Company 1 Company 2 Company 3 Company 4 Company 5

Total 22.46 10.62 28.43 6.02 32.47

Tech 1 21.80 10.71 28.67 6.07 32.75 Tech 2 100 0 0 0 0 Tech 3 0 0 0 0 0 Tech 4 0 0 0 0 0

Market report, Europe

Company 1 Company 2 Company 3 Company 4 Company 5 Tech 1 Selling Price, EUR 150 200 134 275 135 Number of offered features 2 2 2 3 3 Sales, k units 1,921 956 2,200 338 0 Demand, k units 1,921 956 2,341 338 3,012

Tech 2 Selling Price, EUR 350 Number of offered features 1 Sales, k units 299 Demand, k units 299 Tech 3 Selling Price, EUR Number of offered features Sales, k units Demand, k units Tech 4 Selling Price, EUR Number of offered features Sales, k units Demand, k units

Europe market shares, % Company 1 Company 2 Company 3 Company 4 Company 5

Total 38.85 16.73 38.51 5.91 0

Tech 1 35.47 17.65 40.63 6.24 0 Tech 2 100 0 0 0 0 Tech 3 0 0 0 0 0 Tech 4 0 0 0 0 0

Production report

In-house manufacturing, k units Company 1 Company 2 Company 3 Company 4 Company 5

USA Tech 1 6,072 6,336 6,600 5,280 5,742 Tech 2 528 990 Tech 3 Tech 4

Asia Tech 1 Tech 2 Tech 3 Tech 4

Contract manufacturing, k units USA Tech 1 1,000 650 Tech 2 1,000 Tech 3 Tech 4 Asia Tech 1 1,000 850 Tech 2 1,000 Tech 3 Tech 4

Capacity usage, % USA Tech 1 92 96 100 80 87 Tech 2 8 15 Tech 3 Tech 4 Free capacity 0 4 0 5 13 Asia Tech 1 Tech 2

Tech 3 Tech 4 Free capacity 0 0 0 0 0

Inventory, k units USA Tech 1 745 5,377 0 5,184 0 Tech 2 1,275 0 0 990 0 Tech 3 0 0 0 0 0 Tech 4 0 0 0 0 0

Asia Tech 1 0 0 0 0 0 Tech 2 594 0 0 0 0 Tech 3 0 0 0 0 0 Tech 4 0 0 0 0 0

Inventory management costs, k USD 1,754 3,500 274 3,979 274

Origin of products sold in USA, k units USA 1,361 1,108 1,233 947 2,061 Asia

Origin of products sold in Asia, k units USA 2,755 353 3,624 4,138 Asia 107 1,000 768

Origin of products sold in Europe, k units USA 1,921 956 2,200 256 Asia 299 82

Number of plants this round USA 12 12 12 12 12 Asia

Number of plants next round USA 14 13 12 16 12 Asia 5 1 4 5 2

Number of plants after next round USA 14 13 12 16 12 Asia 5 1 4 5 2

Cost report

Logistics Company 1 Company 2 Company 3 Company 4 Company 5

Average logistics cost per sold product, USD Products sold in USA 0 0 0 0 0 Products sold in Asia 25.99 7.04 27 0 27 Products sold in Europe 11.46 12 12 11.03

Production cost per unit, USD USA Tech 1 77.44 74.67 76.89 75.44 73.96 Tech 2 295 242 Tech 3 Tech 4 Asia Tech 1 Tech 2 Tech 3 Tech 4

Contract manufacturing cost per unit, USD USA Tech 1 86.90 89.67 Tech 2 101 Tech 3 Tech 4 Asia Tech 1 107 108 Tech 2 138 Tech 3 Tech 4

Average unit cost per sold product, USD USA Tech 1 79.71 78.31 79.04 79.36 76.61 Tech 2 168 Tech 3 Tech 4 Weighted average 96.07 78.31 79.04 79.36 76.61

Asia Tech 1 79.71 99.31 79.04 108 76.61 Tech 2 138 Tech 3 Tech 4 Weighted average 81.90 99.31 79.04 108 76.61

Europe Tech 1 79.71 78.31 79.04 86.30 Tech 2 138 Tech 3 Tech 4 Weighted average 87.56 78.31 79.04 86.30

Production scrap, % USA Tech 1 1.65 1.64 1.64 1.66 1.65 Tech 2 2.83 2.64 Tech 3 Tech 4 Asia Tech 1 Tech 2 Tech 3 Tech 4

Logistics details

Tech 1, k units Company 1 Company 2 Company 3 Company 4 Company 5

USA Beginning inventory 457 457 457 457 457 Production 6,072 6,336 6,600 5,280 5,742 Contract manufacturing 0 1,000 0 650 0 Imported from Asia 0 0 0 0 0 Total products 6,529 7,793 7,057 6,387 6,199 Sales in USA -1,108 -1,108 -1,233 -947 -2,061 Exported to Asia -2,755 -353 -3,624 0 -4,138 Exported to Europe -1,921 -956 -2,200 -256 0 Ending inventory 745 5,377 0 5,184 0 Unsatisfied demand 0 0 0 0 0

Asia Beginning inventory 0 0 0 0 0 Production 0 0 0 0 0 Contract manufacturing 0 1,000 0 850 0 Imported from USA 2,755 353 3,624 0 4,138 Total products 2,755 1,353 3,624 850 4,138 Sales in Asia -2,755 -1,353 -3,624 -768 -4,138 Exported to USA 0 0 0 0 0 Exported to Europe 0 0 0 -82.31 0 Ending inventory 0 0 0 0 0 Unsatisfied demand 0 0 0 0 504

Europe Imported from USA 1,921 956 2,200 256 0 Imported from Asia 0 0 0 82.31 0 Total products 1,921 956 2,200 338 0 Sales in Europe -1,921 -956 -2,200 -338 0 Unsatisfied demand 0 0 141 0 3,012

Tech 2, k units Company 1 Company 2 Company 3 Company 4 Company 5

USA Beginning inventory 0 0

Production 528 990 Contract manufacturing 1,000 0 Imported from Asia 0 0 Total products 1,528 990 Sales in USA -253 0 Exported to Asia 0 0 Exported to Europe 0 0 Ending inventory 1,275 990 Unsatisfied demand 0 0

Asia Beginning inventory 0 0 Production 0 0 Contract manufacturing 1,000 0 Imported from USA 0 0 Total products 1,000 0 Sales in Asia -107 0 Exported to USA 0 0 Exported to Europe -299 0 Ending inventory 594 0 Unsatisfied demand 0 0

Europe Imported from USA 0 0 Imported from Asia 299 0 Total products 299 0 Sales in Europe -299 0 Unsatisfied demand 0 0

Tech 3, k units Company 1 Company 2 Company 3 Company 4 Company 5

USA Beginning inventory Production Contract manufacturing Imported from Asia Total products Sales in USA Exported to Asia Exported to Europe Ending inventory Unsatisfied demand

Asia Beginning inventory Production Contract manufacturing Imported from USA Total products Sales in Asia Exported to USA Exported to Europe Ending inventory Unsatisfied demand

Europe Imported from USA Imported from Asia Total products Sales in Europe Unsatisfied demand

Tech 4, k units Company 1 Company 2 Company 3 Company 4 Company 5

USA Beginning inventory Production Contract manufacturing Imported from Asia Total products Sales in USA Exported to Asia Exported to Europe Ending inventory Unsatisfied demand

Asia Beginning inventory

Production Contract manufacturing Imported from USA Total products Sales in Asia Exported to USA Exported to Europe Ending inventory Unsatisfied demand

Europe Imported from USA Imported from Asia Total products Sales in Europe Unsatisfied demand

Cost report - Transportation cost incl. tariffs per sold product, USD

Company 1 Company 2 Company 3 Company 4 Company 5 USA Tech 1 0 0 0 0 0 Tech 2 0 Tech 3 Tech 4 Asia Tech 1 27 7.04 27 0 27 Tech 2 0 Tech 3 Tech 4 Europe Tech 1 12.00 12 12 11.03 Tech 2 8 Tech 3 Tech 4