ST Deutsche Brauerei Cohort 7Pooja

5/12/2018 ST Deutsche Brauerei Cohort 7Pooja - slidepdf.com

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Introduction

This spreadsheet supports STUDENT analysis of the case, "Deutsche Brauerei" (Case 10).

Please note:

1) This is a working model. Assumptions / Inputspresented can be changed to vary the

results.

2) This model intentionally incorporates a circular reference in its logic. In order to resolve

this circularity, please instruct Excel to "iterate" 20 or so times in recalculating the model.

This may be done by clicking on Tools/Options/Calculation, and then on Iteration.

3) As long as default spreadsheet calculation is set as "automatic" impact of changing

assumptions will be computed in real time. Alternatively F9 function key may need to be

invoked to recalculate

results. To set numerical calculation settings to automatic look under tools, options,

calculations menu.

Revised, March 7, 2006.

Copyright © 2001 by the Trustees of the University of Virginia Darden School Foundation.



Exh b t

DEUTSCHE BRAUEREI

Historical Exchange Rates: Ukrainian Hryvna versus Deutsche Marks and Euros

DM

4/3/1997 0.90 4/3/1997 0

4/4/1997 0.90 4/4/1997 0

4/5/1997 0.91 4/5/1997 0

4/6/1997 0.91 4/6/1997 0

4/7/1997 0.91 4/7/1997 0

4/8/1997 0.93 4/8/1997 0

4/9/1997 0.93 4/9/1997 0

4/10/1997 0.93 4/10/1997 0

4/11/1997 0.93 4/11/1997 0

4/12/1997 0.93 4/12/1997 04/13/1997 0.93 4/13/1997 0

4/14/1997 0.93 4/14/1997 0

4/15/1997 0.94 4/15/1997 0

4/16/1997 0.93 4/16/1997 0

4/17/1997 0.94 4/17/1997 0

4/18/1997 0.93 4/18/1997 0

4/19/1997 0.93 4/19/1997 0

4/20/1997 0.93 4/20/1997 0

4/21/1997 0.93 4/21/1997 0

4/22/1997 0.93 4/22/1997 0

4/23/1997 0.93 4/23/1997 0

4/24/1997 0.93 4/24/1997 0

4/25/1997 0.93 4/25/1997 0

4/26/1997 0.94 4/26/1997 0

4/27/1997 0.94 4/27/1997 0

4/28/1997 0.94 4/28/1997 0

4/29/1997 0.96 4/29/1997 0

4/30/1997 0.95 4/30/1997 0

5/1/1997 0.95 5/1/1997 0

5/2/1997 0.96 5/2/1997 0 UAH 500000 500000

5/3/1997 0.96 5/3/1997 0 0.95 0.5

5/4/1997 0.96 5/4/1997 0 dm 475000 250000

5/5/1997 0 95 5/5/1997 0

-

0.20

0.40

0.60

0.80

1.00

1.20

4 / 3 / 1 9 9 7

7 / 3 / 1 9 9 7

1 0 / 3 / 1 9 9 7

1 / 3 / 1 9 9 8

4 / 3 / 1 9 9 8

7 / 3 / 1 9 9 8

1 0 / 3 / 1 9 9 8

1 / 3 / 1 9 9 9

4 / 3 / 1 9 9 9

7 / 3 / 1 9 9 9

1 0 / 3 / 1 9 9 9

1 / 3 / 2 0 0 0

4 / 3 / 2 0 0 0

7 / 3 / 2 0 0 0

1 0 / 3 / 2 0 0 0

DM

0.00

0.05

0.10

0.15

0.20

0.25

0.30

1 2 / 1 5 / 1 9 9 8

2 / 1 5 / 1 9 9 9

4 / 1 5 / 1 9 9 9

6 / 1 5 / 1 9 9 9

8 / 1 5 / 1 9 9 9

1 0 / 1 5 / 1 9 9 9

1 2 / 1 5 / 1 9 9 9

2 / 1 5 / 2 0 0 0

¼ Euros per 1 UkrainianDeutsche Marks per 1 Ukrainian Hryvna



5/5/1997 0 95 5/5/1997 0

5/6/1997 0.95 5/6/1997 0

5/7/1997 0.95 5/7/1997 0

5/8/1997 0.94 5/8/1997 0

5/9/1997 0.93 5/9/1997 0

5/10/1997 0.92 5/10/1997 0

5/11/1997 0.92 5/11/1997 0

5/12/1997 0.92 5/12/1997 0

5/13/1997 0.92 5/13/1997 0

5/14/1997 0.92 5/14/1997 0

5/15/1997 0.91 5/15/1997 0

5/16/1997 0.92 5/16/1997 0

5/17/1997 0.92 5/17/1997 0

5/18/1997 0.92 5/18/1997 0

5/19/1997 0.92 5/19/1997 0

5/20/1997 0.92 5/20/1997 0

5/21/1997 0.91 5/21/1997 0

5/22/1997 0.91 5/22/1997 0

5/23/1997 0.91 5/23/1997 05/24/1997 0.91 5/24/1997 0

5/25/1997 0.91 5/25/1997 0

5/26/1997 0.91 5/26/1997 0

5/27/1997 0.91 5/27/1997 0

5/28/1997 0.92 5/28/1997 0

5/29/1997 0.92 5/29/1997 05/30/1997 0.91 5/30/1997 0

5/31/1997 0.92 5/31/1997 0

6/1/1997 0.92 6/1/1997 0

6/2/1997 0.93 6/2/1997 0

6/3/1997 0.93 6/3/1997 0

6/4/1997 0.93 6/4/1997 06/5/1997 0.93 6/5/1997 0

6/6/1997 0.93 6/6/1997 0

6/7/1997 0.93 6/7/1997 0

6/8/1997 0 93 6/8/1997 0



6/8/1997 0.93 6/8/1997 0

7/24/1997 0.99 7/24/1997 0

7/25/1997 0.99 7/25/1997 0

7/26/1997 0.99 7/26/1997 0

7/27/1997 0.99 7/27/1997 0

7/28/1997 0.99 7/28/1997 0

7/29/1997 0.99 7/29/1997 0

7/30/1997 0.99 7/30/1997 0

7/31/1997 0.99 7/31/1997 0

8/1/1997 1.00 8/1/1997 0

8/2/1997 1.00 8/2/1997 0

8/3/1997 1.00 8/3/1997 0

8/4/1997 1.01 8/4/1997 0

8/5/1997 1.01 8/5/1997 0

8/6/1997 1.02 8/6/1997 0

8/7/1997 1.01 8/7/1997 0

8/8/1997 1.01 8/8/1997 0

8/9/1997 1.00 8/9/1997 0

8/10/1997 1.00 8/10/1997 08/11/1997 1.00 8/11/1997 0

8/12/1997 1.00 8/12/1997 0

8/13/1997 1.00 8/13/1997 0

8/14/1997 0.99 8/14/1997 0

8/15/1997 0.99 8/15/1997 0

8/16/1997 0.98 8/16/1997 08/17/1997 0.98 8/17/1997 0

8/18/1997 0.98 8/18/1997 0

8/19/1997 0.99 8/19/1997 0

8/20/1997 1.00 8/20/1997 0

8/21/1997 1.00 8/21/1997 0

8/22/1997 0.98 8/22/1997 08/23/1997 0.98 8/23/1997 0

8/24/1997 0.98 8/24/1997 0

8/25/1997 0.98 8/25/1997 0

8/26/1997 0 97 8/26/1997 0



8/26/1997 0.97 8/26/1997 0

10/11/1997 0.94 10/11/1997 0

10/12/1997 0.94 10/12/1997 0

10/13/1997 0.94 10/13/1997 0

10/14/1997 0.94 10/14/1997 0

10/15/1997 0.94 10/15/1997 0

10/16/1997 0.93 10/16/1997 0

10/17/1997 0.94 10/17/1997 0

10/18/1997 0.95 10/18/1997 0

10/19/1997 0.95 10/19/1997 0

10/20/1997 0.95 10/20/1997 0

10/21/1997 0.95 10/21/1997 0

10/22/1997 0.95 10/22/1997 0

10/23/1997 0.95 10/23/1997 0

10/24/1997 0.95 10/24/1997 0

10/25/1997 0.94 10/25/1997 0

10/26/1997 0.94 10/26/1997 0

10/27/1997 0.94 10/27/1997 0

10/28/1997 0.92 10/28/1997 010/29/1997 0.93 10/29/1997 0

10/30/1997 0.92 10/30/1997 0

10/31/1997 0.92 10/31/1997 0

11/1/1997 0.92 11/1/1997 0

11/2/1997 0.92 11/2/1997 0

11/3/1997 0.93 11/3/1997 011/4/1997 0.92 11/4/1997 0

11/5/1997 0.92 11/5/1997 0

11/6/1997 0.92 11/6/1997 0

11/7/1997 0.91 11/7/1997 0

11/8/1997 0.91 11/8/1997 0

11/9/1997 0.91 11/9/1997 011/10/1997 0.91 11/10/1997 0

11/11/1997 0.91 11/11/1997 0

11/12/1997 0.91 11/12/1997 0

11/13/1997 0 91 11/13/1997 0



11/13/1997 0.91 11/13/1997 0

12/29/1997 0.94 12/29/1997 0

12/30/1997 0.94 12/30/1997 0

12/31/1997 0.94 12/31/1997 0

1/1/1998 0.95 1/1/1998 0

1/2/1998 0.95 1/2/1998 0

1/3/1998 0.95 1/3/1998 0

1/4/1998 0.95 1/4/1998 0

1/5/1998 0.95 1/5/1998 0

1/6/1998 0.94 1/6/1998 0

1/7/1998 0.94 1/7/1998 0

1/8/1998 0.96 1/8/1998 0

1/9/1998 0.95 1/9/1998 0

1/10/1998 0.96 1/10/1998 0

1/11/1998 0.96 1/11/1998 0

1/12/1998 0.95 1/12/1998 0

1/13/1998 0.96 1/13/1998 0

1/14/1998 0.96 1/14/1998 0

1/15/1998 0.96 1/15/1998 01/16/1998 0.96 1/16/1998 0

1/17/1998 0.96 1/17/1998 0

1/18/1998 0.96 1/18/1998 0

1/19/1998 0.96 1/19/1998 0

1/20/1998 0.96 1/20/1998 0

1/21/1998 0.96 1/21/1998 01/22/1998 0.94 1/22/1998 0

1/23/1998 0.93 1/23/1998 0

1/24/1998 0.93 1/24/1998 0

1/25/1998 0.92 1/25/1998 0

1/26/1998 0.92 1/26/1998 0

1/27/1998 0.93 1/27/1998 01/28/1998 0.93 1/28/1998 0

1/29/1998 0.93 1/29/1998 0

1/30/1998 0.95 1/30/1998 0

1/31/1998 0 95 1/31/1998 0



1/31/1998 0.95 1/31/1998 0

3/18/1998 0.90 3/18/1998 0

3/19/1998 0.90 3/19/1998 0

3/20/1998 0.90 3/20/1998 0

3/21/1998 0.90 3/21/1998 0

3/22/1998 0.90 3/22/1998 0

3/23/1998 0.90 3/23/1998 0

3/24/1998 0.90 3/24/1998 0

3/25/1998 0.90 3/25/1998 0

3/26/1998 0.90 3/26/1998 0

3/27/1998 0.89 3/27/1998 0

3/28/1998 0.90 3/28/1998 0

3/29/1998 0.90 3/29/1998 0

3/30/1998 0.90 3/30/1998 0

3/31/1998 0.90 3/31/1998 0

4/1/1998 0.90 4/1/1998 0

4/2/1998 0.90 4/2/1998 0

4/3/1998 0.91 4/3/1998 0

4/4/1998 0.90 4/4/1998 04/5/1998 0.90 4/5/1998 0

4/6/1998 0.90 4/6/1998 0

4/7/1998 0.90 4/7/1998 0

4/8/1998 0.90 4/8/1998 0

4/9/1998 0.89 4/9/1998 0

4/10/1998 0.89 4/10/1998 04/11/1998 0.89 4/11/1998 0

4/12/1998 0.89 4/12/1998 0

4/13/1998 0.89 4/13/1998 0

4/14/1998 0.89 4/14/1998 0

4/15/1998 0.88 4/15/1998 0

4/16/1998 0.88 4/16/1998 04/17/1998 0.88 4/17/1998 0

4/18/1998 0.89 4/18/1998 0

4/19/1998 0.89 4/19/1998 0

4/20/1998 0 89 4/20/1998 0



4/20/1998 0.89 4/20/1998 0

6/5/1998 0.86 6/5/1998 0

6/6/1998 0.86 6/6/1998 0

6/7/1998 0.86 6/7/1998 0

6/8/1998 0.86 6/8/1998 0

6/9/1998 0.87 6/9/1998 0

6/10/1998 0.87 6/10/1998 0

6/11/1998 0.87 6/11/1998 0

6/12/1998 0.88 6/12/1998 0

6/13/1998 0.88 6/13/1998 0

6/14/1998 0.88 6/14/1998 0

6/15/1998 0.88 6/15/1998 0

6/16/1998 0.87 6/16/1998 0

6/17/1998 0.87 6/17/1998 0

6/18/1998 0.87 6/18/1998 0

6/19/1998 0.87 6/19/1998 0

6/20/1998 0.87 6/20/1998 0

6/21/1998 0.87 6/21/1998 0

6/22/1998 0.87 6/22/1998 06/23/1998 0.87 6/23/1998 0

6/24/1998 0.87 6/24/1998 0

6/25/1998 0.87 6/25/1998 0

6/26/1998 0.87 6/26/1998 0

6/27/1998 0.87 6/27/1998 0

6/28/1998 0.88 6/28/1998 06/29/1998 0.88 6/29/1998 0

6/30/1998 0.87 6/30/1998 0

7/1/1998 0.88 7/1/1998 0

7/2/1998 0.88 7/2/1998 0

7/3/1998 0.88 7/3/1998 0

7/4/1998 0.88 7/4/1998 07/5/1998 0.88 7/5/1998 0

7/6/1998 0.87 7/6/1998 0

7/7/1998 0.87 7/7/1998 0

7/8/1998 0 87 7/8/1998 0



7/8/1998 0.87 7/8/1998 0

8/23/1998 0.79 8/23/1998 0

8/24/1998 0.79 8/24/1998 0

8/25/1998 0.78 8/25/1998 0

8/26/1998 0.81 8/26/1998 0

8/27/1998 0.81 8/27/1998 0

8/28/1998 0.69 8/28/1998 0

8/29/1998 0.68 8/29/1998 0

8/30/1998 0.68 8/30/1998 0

8/31/1998 0.66 8/31/1998 0

9/1/1998 0.66 9/1/1998 0

9/2/1998 0.58 9/2/1998 0

9/3/1998 0.58 9/3/1998 0

9/4/1998 0.58 9/4/1998 0

9/5/1998 0.58 9/5/1998 0

9/6/1998 0.58 9/6/1998 0

9/7/1998 0.57 9/7/1998 0

9/8/1998 0.58 9/8/1998 0

9/9/1998 0.59 9/9/1998 09/10/1998 0.55 9/10/1998 0

9/11/1998 0.54 9/11/1998 0

9/12/1998 0.55 9/12/1998 0

9/13/1998 0.55 9/13/1998 0

9/14/1998 0.55 9/14/1998 0

9/15/1998 0.55 9/15/1998 09/16/1998 0.55 9/16/1998 0

9/17/1998 0.54 9/17/1998 0

9/18/1998 0.55 9/18/1998 0

9/19/1998 0.55 9/19/1998 0

9/20/1998 0.55 9/20/1998 0

9/21/1998 0.54 9/21/1998 09/22/1998 0.54 9/22/1998 0

9/23/1998 0.54 9/23/1998 0

9/24/1998 0.50 9/24/1998 0

9/25/1998 0 49 9/25/1998 0



9/25/1998 0.49 9/25/1998 0

11/10/1998 0.43 11/10/1998 0

11/11/1998 0.44 11/11/1998 0

11/12/1998 0.43 11/12/1998 0

11/13/1998 0.41 11/13/1998 0

11/14/1998 0.41 11/14/1998 0

11/15/1998 0.41 11/15/1998 0

11/16/1998 0.41 11/16/1998 0

11/17/1998 0.45 11/17/1998 0

11/18/1998 0.44 11/18/1998 0

11/19/1998 0.44 11/19/1998 0

11/20/1998 0.43 11/20/1998 0

11/21/1998 0.43 11/21/1998 0

11/22/1998 0.43 11/22/1998 0

11/23/1998 0.43 11/23/1998 0

11/24/1998 0.43 11/24/1998 0

11/25/1998 0.45 11/25/1998 0

11/26/1998 0.45 11/26/1998 0

11/27/1998 0.45 11/27/1998 0

11/28/1998 0.45 11/28/1998 0

11/29/1998 0.45 11/29/1998 0

11/30/1998 0.45 11/30/1998 0

12/1/1998 0.45 12/1/1998 0

12/2/1998 0.45 12/2/1998 0

12/3/1998 0.45 12/3/1998 0

12/4/1998 0.43 12/4/1998 0

12/5/1998 0.44 12/5/1998 0

12/6/1998 0.44 12/6/1998 0

12/7/1998 0.44 12/7/1998 0

12/8/1998 0.44 12/8/1998 0

12/9/1998 0.44 12/9/1998 0

12/10/1998 0.44 12/10/1998 0

12/11/1998 0.44 12/11/1998 0

12/12/1998 0.43 12/12/1998 0

12/13/1998 0.43 12/13/1998 0



1/28/1999 0.45 1/28/1999 0.2324

1/29/1999 0.44 1/29/1999 0.2258

1/30/1999 0.44 1/30/1999 0.2251

1/31/1999 0.44 1/31/1999 0.2238

2/1/1999 0.43 2/1/1999 0.2223

2/2/1999 0.44 2/2/1999 0.2254

2/3/1999 0.44 2/3/1999 0.2245

2/4/1999 0.44 2/4/1999 0.2256

2/5/1999 0.44 2/5/1999 0.2274

2/6/1999 0.45 2/6/1999 0.2287

2/7/1999 0.45 2/7/1999 0.2285

2/8/1999 0.47 2/8/1999 0.2381

2/9/1999 0.45 2/9/1999 0.231

2/10/1999 0.45 2/10/1999 0.2325

2/11/1999 0.44 2/11/1999 0.2238

2/12/1999 0.44 2/12/1999 0.2252

2/13/1999 0.44 2/13/1999 0.224

2/14/1999 0.44 2/14/1999 0.2241

2/15/1999 0.44 2/15/1999 0.2252

2/16/1999 0.44 2/16/1999 0.2264

2/17/1999 0.45 2/17/1999 0.2289

2/18/1999 0.45 2/18/1999 0.2311

2/19/1999 0.45 2/19/1999 0.2319

2/20/1999 0.46 2/20/1999 0.2358

2/21/1999 0.46 2/21/1999 0.2361

2/22/1999 0.46 2/22/1999 0.2365

2/23/1999 0.47 2/23/1999 0.2395

2/24/1999 0.47 2/24/1999 0.2383

2/25/1999 0.46 2/25/1999 0.2368

2/26/1999 0.46 2/26/1999 0.2372

2/27/1999 0.46 2/27/1999 0.2369

2/28/1999 0.46 2/28/1999 0.2365

3/1/1999 0.47 3/1/1999 0.2384

3/2/1999 0.47 3/2/1999 0.2392



4/17/1999 0.46 4/17/1999 0.2375

4/18/1999 0.46 4/18/1999 0.2376

4/19/1999 0.46 4/19/1999 0.2356

4/20/1999 0.46 4/20/1999 0.2365

4/21/1999 0.46 4/21/1999 0.2372

4/22/1999 0.47 4/22/1999 0.2405

4/23/1999 0.46 4/23/1999 0.2332

4/24/1999 0.47 4/24/1999 0.2411

4/25/1999 0.47 4/25/1999 0.2411

4/26/1999 0.47 4/26/1999 0.241

4/27/1999 0.45 4/27/1999 0.2322

4/28/1999 0.46 4/28/1999 0.2332

4/29/1999 0.46 4/29/1999 0.2348

4/30/1999 0.46 4/30/1999 0.2351

5/1/1999 0.47 5/1/1999 0.2413

5/2/1999 0.47 5/2/1999 0.2415

5/3/1999 0.47 5/3/1999 0.2411

5/4/1999 0.46 5/4/1999 0.2346

5/5/1999 0.45 5/5/1999 0.231

5/6/1999 0.45 5/6/1999 0.2315

5/7/1999 0.45 5/7/1999 0.2314

5/8/1999 0.45 5/8/1999 0.2321

5/9/1999 0.45 5/9/1999 0.2322

5/10/1999 0.46 5/10/1999 0.2328

5/11/1999 0.45 5/11/1999 0.2325

5/12/1999 0.46 5/12/1999 0.233

5/13/1999 0.45 5/13/1999 0.2314

5/14/1999 0.45 5/14/1999 0.2312

5/15/1999 0.45 5/15/1999 0.2312

5/16/1999 0.45 5/16/1999 0.2314

5/17/1999 0.46 5/17/1999 0.2344

5/18/1999 0.46 5/18/1999 0.2339

5/19/1999 0.46 5/19/1999 0.235

5/20/1999 0.46 5/20/1999 0.2349



7/5/1999 0.48 7/5/1999 0.2462

7/6/1999 0.48 7/6/1999 0.2465

7/7/1999 0.48 7/7/1999 0.2463

7/8/1999 0.48 7/8/1999 0.2473

7/9/1999 0.48 7/9/1999 0.2476

7/10/1999 0.48 7/10/1999 0.2476

7/11/1999 0.48 7/11/1999 0.2479

7/12/1999 0.49 7/12/1999 0.2491

7/13/1999 0.49 7/13/1999 0.2485

7/14/1999 0.49 7/14/1999 0.2484

7/15/1999 0.48 7/15/1999 0.2473

7/16/1999 0.49 7/16/1999 0.2483

7/17/1999 0.49 7/17/1999 0.2484

7/18/1999 0.49 7/18/1999 0.2482

7/19/1999 0.49 7/19/1999 0.2492

7/20/1999 0.48 7/20/1999 0.2437

7/21/1999 0.46 7/21/1999 0.2332

7/22/1999 0.45 7/22/1999 0.2323

7/23/1999 0.47 7/23/1999 0.2399

7/24/1999 0.47 7/24/1999 0.2393

7/25/1999 0.47 7/25/1999 0.2392

7/26/1999 0.45 7/26/1999 0.2304

7/27/1999 0.43 7/27/1999 0.2213

7/28/1999 0.43 7/28/1999 0.2198

7/29/1999 0.43 7/29/1999 0.2184

7/30/1999 0.42 7/30/1999 0.2125

7/31/1999 0.42 7/31/1999 0.2122

8/1/1999 0.41 8/1/1999 0.2121

8/2/1999 0.42 8/2/1999 0.2124

8/3/1999 0.41 8/3/1999 0.2109

8/4/1999 0.41 8/4/1999 0.2087

8/5/1999 0.41 8/5/1999 0.2083

8/6/1999 0.41 8/6/1999 0.2092

8/7/1999 0.41 8/7/1999 0.21



9/22/1999 0.42 9/22/1999 0.2151

9/23/1999 0.42 9/23/1999 0.2147

9/24/1999 0.42 9/24/1999 0.2129

9/25/1999 0.42 9/25/1999 0.2136

9/26/1999 0.42 9/26/1999 0.2135

9/27/1999 0.41 9/27/1999 0.2114

9/28/1999 0.41 9/28/1999 0.2111

9/29/1999 0.42 9/29/1999 0.2125

9/30/1999 0.41 9/30/1999 0.211

10/1/1999 0.41 10/1/1999 0.2093

10/2/1999 0.41 10/2/1999 0.2095

10/3/1999 0.41 10/3/1999 0.2102

10/4/1999 0.41 10/4/1999 0.2083

10/5/1999 0.41 10/5/1999 0.2102

10/6/1999 0.41 10/6/1999 0.2095

10/7/1999 0.41 10/7/1999 0.2104

10/8/1999 0.41 10/8/1999 0.2088

10/9/1999 0.41 10/9/1999 0.2095

10/10/1999 0.41 10/10/1999 0.2097

10/11/1999 0.41 10/11/1999 0.2095

10/12/1999 0.41 10/12/1999 0.2088

10/13/1999 0.40 10/13/1999 0.2068

10/14/1999 0.40 10/14/1999 0.2052

10/15/1999 0.40 10/15/1999 0.2037

10/16/1999 0.40 10/16/1999 0.2033

10/17/1999 0.40 10/17/1999 0.2031

10/18/1999 0.40 10/18/1999 0.2036

10/19/1999 0.38 10/19/1999 0.1946

10/20/1999 0.39 10/20/1999 0.1982

10/21/1999 0.40 10/21/1999 0.2048

10/22/1999 0.40 10/22/1999 0.203

10/23/1999 0.40 10/23/1999 0.2037

10/24/1999 0.40 10/24/1999 0.205

10/25/1999 0.40 10/25/1999 0.2041



12/10/1999 0.36 12/10/1999 0.1825

12/11/1999 0.36 12/11/1999 0.1828

12/12/1999 0.36 12/12/1999 0.1828

12/13/1999 0.36 12/13/1999 0.1829

12/14/1999 0.36 12/14/1999 0.1834

12/15/1999 0.36 12/15/1999 0.1823

12/16/1999 0.34 12/16/1999 0.1753

12/17/1999 0.35 12/17/1999 0.1806

12/18/1999 0.36 12/18/1999 0.1831

12/19/1999 0.36 12/19/1999 0.183

12/20/1999 0.36 12/20/1999 0.183

12/21/1999 0.36 12/21/1999 0.1828

12/22/1999 0.37 12/22/1999 0.1868

12/23/1999 0.37 12/23/1999 0.1895

12/24/1999 0.37 12/24/1999 0.1867

12/25/1999 0.36 12/25/1999 0.1862

12/26/1999 0.36 12/26/1999 0.1863

12/27/1999 0.36 12/27/1999 0.1863

12/28/1999 0.35 12/28/1999 0.1812

12/29/1999 0.36 12/29/1999 0.1823

12/30/1999 0.37 12/30/1999 0.1912

12/31/1999 0.37 12/31/1999 0.1912

1/1/2000 0.37 1/1/2000 0.191

1/2/2000 0.37 1/2/2000 0.1913

1/3/2000 0.37 1/3/2000 0.1913

1/4/2000 0.37 1/4/2000 0.1875

1/5/2000 0.37 1/5/2000 0.187

1/6/2000 0.35 1/6/2000 0.1795

1/7/2000 0.35 1/7/2000 0.1806

1/8/2000 0.35 1/8/2000 0.181

1/9/2000 0.35 1/9/2000 0.1809

1/10/2000 0.35 1/10/2000 0.181

1/11/2000 0.34 1/11/2000 0.1742

1/12/2000 0.34 1/12/2000 0.175



2/27/2000 0.36 2/27/2000 0.1834

2/28/2000 0.36 2/28/2000 0.1834

2/29/2000 0.36 2/29/2000 0.1831

3/1/2000 0.36 3/1/2000 0.1848

3/2/2000 0.36 3/2/2000 0.1832

3/3/2000 0.36 3/3/2000 0.1848

3/4/2000 0.36 3/4/2000 0.1852

3/5/2000 0.36 3/5/2000 0.1849

3/6/2000 0.36 3/6/2000 0.1854

3/7/2000 0.37 3/7/2000 0.1892

3/8/2000 0.37 3/8/2000 0.1879

3/9/2000 0.37 3/9/2000 0.1875

3/10/2000 0.37 3/10/2000 0.1882

3/11/2000 0.37 3/11/2000 0.1887

3/12/2000 0.37 3/12/2000 0.1887

3/13/2000 0.37 3/13/2000 0.1889

3/14/2000 0.37 3/14/2000 0.19

3/15/2000 0.37 3/15/2000 0.1879

3/16/2000 0.37 3/16/2000 0.1894

3/17/2000 0.37 3/17/2000 0.1891

3/18/2000 0.37 3/18/2000 0.1871

3/19/2000 0.37 3/19/2000 0.1871

3/20/2000 0.37 3/20/2000 0.187

3/21/2000 0.36 3/21/2000 0.1862

3/22/2000 0.37 3/22/2000 0.1889

3/23/2000 0.37 3/23/2000 0.1897

3/24/2000 0.37 3/24/2000 0.1882

3/25/2000 0.37 3/25/2000 0.1871

3/26/2000 0.37 3/26/2000 0.1871

3/27/2000 0.37 3/27/2000 0.1872

3/28/2000 0.37 3/28/2000 0.1894

3/29/2000 0.37 3/29/2000 0.1895

3/30/2000 0.37 3/30/2000 0.191

3/31/2000 0.38 3/31/2000 0.1918



5/16/2000 0.39 5/16/2000 0.1988

5/17/2000 0.40 5/17/2000 0.2035

5/18/2000 0.40 5/18/2000 0.2035

5/19/2000 0.40 5/19/2000 0.2069

5/20/2000 0.39 5/20/2000 0.2012

5/21/2000 0.39 5/21/2000 0.2016

5/22/2000 0.39 5/22/2000 0.2018

5/23/2000 0.39 5/23/2000 0.2014

5/24/2000 0.39 5/24/2000 0.2002

5/25/2000 0.39 5/25/2000 0.2001

5/26/2000 0.40 5/26/2000 0.2028

5/27/2000 0.38 5/27/2000 0.1946

5/28/2000 0.38 5/28/2000 0.1938

5/29/2000 0.38 5/29/2000 0.1933

5/30/2000 0.39 5/30/2000 0.1993

5/31/2000 0.38 5/31/2000 0.1945

6/1/2000 0.38 6/1/2000 0.193

6/2/2000 0.38 6/2/2000 0.1935

6/3/2000 0.37 6/3/2000 0.1909

6/4/2000 0.37 6/4/2000 0.1903

6/5/2000 0.37 6/5/2000 0.1905

6/6/2000 0.37 6/6/2000 0.1897

6/7/2000 0.38 6/7/2000 0.1929

6/8/2000 0.37 6/8/2000 0.1871

6/9/2000 0.37 6/9/2000 0.1881

6/10/2000 0.37 6/10/2000 0.1884

6/11/2000 0.37 6/11/2000 0.1883

6/12/2000 0.37 6/12/2000 0.1884

6/13/2000 0.38 6/13/2000 0.193

6/14/2000 0.37 6/14/2000 0.1915

6/15/2000 0.38 6/15/2000 0.192

6/16/2000 0.37 6/16/2000 0.1881

6/17/2000 0.36 6/17/2000 0.1858

6/18/2000 0.36 6/18/2000 0.1859



8/3/2000 0.39 8/3/2000 0.2013

8/4/2000 0.40 8/4/2000 0.2066

8/5/2000 0.40 8/5/2000 0.2027

8/6/2000 0.40 8/6/2000 0.2027

8/7/2000 0.40 8/7/2000 0.2026

8/8/2000 0.40 8/8/2000 0.2024

8/9/2000 0.40 8/9/2000 0.204

8/10/2000 0.40 8/10/2000 0.2045

8/11/2000 0.40 8/11/2000 0.2025

8/12/2000 0.40 8/12/2000 0.2037

8/13/2000 0.40 8/13/2000 0.2037

8/14/2000 0.40 8/14/2000 0.2035

8/15/2000 0.40 8/15/2000 0.2031

8/16/2000 0.39 8/16/2000 0.2014

8/17/2000 0.39 8/17/2000 0.201

8/18/2000 0.39 8/18/2000 0.2005

8/19/2000 0.40 8/19/2000 0.2029

8/20/2000 0.40 8/20/2000 0.2027

8/21/2000 0.40 8/21/2000 0.2027

8/22/2000 0.40 8/22/2000 0.204

8/23/2000 0.40 8/23/2000 0.205

8/24/2000 0.40 8/24/2000 0.2044

8/25/2000 0.40 8/25/2000 0.2037

8/26/2000 0.40 8/26/2000 0.204

8/27/2000 0.40 8/27/2000 0.2036

8/28/2000 0.40 8/28/2000 0.2038

8/29/2000 0.40 8/29/2000 0.2042

8/30/2000 0.40 8/30/2000 0.2061

8/31/2000 0.40 8/31/2000 0.2059

9/1/2000 0.40 9/1/2000 0.2069

9/2/2000 0.40 9/2/2000 0.2036

9/3/2000 0.40 9/3/2000 0.203

9/4/2000 0.40 9/4/2000 0.2037

9/5/2000 0.40 9/5/2000 0.2047



10/21/2000 0.43 10/21/2000 0.2187

10/22/2000 0.43 10/22/2000 0.2184

10/23/2000 0.43 10/23/2000 0.2184

10/24/2000 0.43 10/24/2000 0.2202

10/25/2000 0.43 10/25/2000 0.2198

10/26/2000 0.43 10/26/2000 0.2221

10/27/2000 0.43 10/27/2000 0.2218

10/28/2000 0.43 10/28/2000 0.219

10/29/2000 0.43 10/29/2000 0.2192

10/30/2000 0.43 10/30/2000 0.2191

10/31/2000 0.43 10/31/2000 0.2187

11/1/2000 0.42 11/1/2000 0.2168

11/2/2000 0.42 11/2/2000 0.2136

11/3/2000 0.42 11/3/2000 0.2142

11/4/2000 0.42 11/4/2000 0.2123

11/5/2000 0.41 11/5/2000 0.2119

11/6/2000 0.41 11/6/2000 0.2119

11/7/2000 0.42 11/7/2000 0.2136

11/8/2000 0.42 11/8/2000 0.2138

11/9/2000 0.42 11/9/2000 0.215

11/10/2000 0.42 11/10/2000 0.2124

11/11/2000 0.42 11/11/2000 0.2139

11/12/2000 0.42 11/12/2000 0.2138

11/13/2000 0.42 11/13/2000 0.2138

11/14/2000 0.42 11/14/2000 0.214

11/15/2000 0.42 11/15/2000 0.2144

11/16/2000 0.42 11/16/2000 0.2145

11/17/2000 0.42 11/17/2000 0.2159

11/18/2000 0.42 11/18/2000 0.2171

11/19/2000 0.42 11/19/2000 0.2171

11/20/2000 0.42 11/20/2000 0.2171

11/21/2000 0.42 11/21/2000 0.216

11/22/2000 0.43 11/22/2000 0.2181

11/23/2000 0.43 11/23/2000 0.2181



4 .2 5

1 . 8 8 6

2 .2 5 3 4 4 6 4

1

2

4 4

4

4/

6/

8/

10/

12/



2.364

1.2534464



Exhibit 3

Exhibit 3DEUTSCHE BRAUEREI

Sources and Uses of Funds

Fiscal Year Ended December 31; all figures in EUR thousands

1997 1998 1999 2000 2001 2002

(Actual) (Actual) (Actual) (Actual) (Proj'd) (Proj'd)Sources of Funds

1 Net Income 2,646 2,311 2,915 3,850 4,265

2 Increases in Allowance for Doubtful Accts. 7 38 24 74 4

3 Depreciation 4,314 5,844 6,068 6,068 6,068

4 Increases in Short Term Debt 7,249 1,768 1,085 (8,946) (5,797)

5 Increases in Accounts Payable 177 348 690 (97) 94

6 Increases in Other Current Liabilities (36) 1,635 1,131 203 207

7 Total Sources of Cash 14,357 11,943 11,913 1,152 4,841

Uses of Funds8 Dividend Payments 1,988 1,734 2,186 2,888 3,199

9 Increases in Cash Balance 2,817 1,630 1,234 221 225

10 Increases in Accts. Receivable (Germany) 209 79 296 69 152

11 Increases in Accts Receivable (Ukraine) 424 3,665 2,078 (3,206) 59

12 Increases in Inventories 267 1,417 5,072 258 263

13 Increases in Other Assets 87 227 104 (20) 0

14 Reductions in Long Term Debt 8,563 943 943 943 943

15 Capital Expenditures 0 2,247 0 0 0

16 Total Uses of Cash 14,357 11,943 11,913 1,152 4,841



Breakeven Analysis

Volume Revenues Var. Cost Fixed Cost Tot. CostFixed costs 24,573 0 0 0 25 25 (25)

Rev/Unit 78.49 50 4 3 25 27 (23)

VC/Unit 52.31 100 8 5 25 30 (22)

Breakeven FC/Contrib 938,799 150 12 8 25 32 (21)

200 16 10 25 35 (19)

Change in WC/Unit 25.30 250 20 13 25 38 (18)

300 24 16 25 40 (17)

Volume EBIT 350 27 18 25 43 (15)

1 Base 1,173,000 6,130,200 400 31 21 25 45 (14)

2 101% Volume 1,184,730 6,437,233 450 35 24 25 48 (13)

3 Change 11,730 307,033 500 39 26 25 51 (11)

4 % Change 1.00% 5.01% 550 43 29 25 53 (10)

600 47 31 25 56 (9)

Operating Leverage = 5.0 650 51 34 25 59 (8)

700 55 37 25 61 (6)

750 59 39 25 64 (5)

800 63 42 25 66 (4)

850 67 44 25 69 (2)

900 71 47 25 72 (1)

950 75 50 25 74 0

1000 78 52 25 77 2

Exhibit 5

Data for Profit Break-even Analysis Graph

0

10

20

30

40

50

60

70

80

90

M i l l i o n s o f E u r o s

Thousands of Hectolitres of Beer Sold

Breakeven Chart for Deutsche Brauerei, 2000

Revenues

Variable Cost

Fixed Cost

Total Cost



Assumptions

Revenue per HL (¼) 78.49

Variable Costs per HL (¼) 52.31

Contribution Percentage 33%

Tax Rate 35%

1997 1998 1999 2000 2001 2002

(Actual) (Actual) (Actual) (Actual) (Proj'd) (Proj'd)Sales in Ukraine (¼, thousands) - 4,262 17,559 25,847 26,364 26,892

Change in Sales (¼, thousands) - 4,262 13,297 8,288 517 527

Variable Costs on the Marginal Sales - (2,841) (8,863) (5,524) (345) (351)

Contribution on the Marginal Sales - 1,421 4,435 2,764 172 176

Taxes on the Marginal Contribution - (497) (1,552) (967) (60) (62)

Marginal After-tax Profits (¼ thousands) - 924 2,883 1,797 112 114

Variable Costs/Sales - 67% 67% 67% 67% 67%

Change in Accounts Receivable, Ukraine (¼ thousands) - 424 3,665 2,078 (3,206) 59

Investment in Accts. Receivable (¼ thousands) - 283 2,443 1,385 (2,137) 39

Return on Marginal Investment in Receivables 0% 327% 118% 130% -5% 290%

Exhibit 6

Oleg Pinchuk's Analysis of the Return on Investment from

Investment in Accounts Receivable in Ukraine



1997 1998 1999 2000 2001 2002 1997 1998 1999 2000 2001 2002

(Actual) (Actual) (Actual) (Actual) (Proj'd) (Proj'd) (Actual) (Actual) (Actual) (Actual) (Proj'd) (Proj'd)

Cash 5,366 8,183 9,813 11,048 12,682 14,277 Short-term 2,987 10,236 12,004 13,089 17,862 21,372

Operating 12997.13 13891.89 19015.28 26437.18 31359.86 36162.61 Long-term 16,107 7,544 6,601 5,658 4,715 3,772

Operating l 10,975 11,116 13,098 14,919 16,909 19,035 Owner's e 26,427 27,085 27,661 28,390 29,321 30,399

Working 2,022 2,776 5,917 11,518 14,451 17,127 Long-ter 42,534 34,629 34,263 34,049 34,037 34,171

Net Fixed 38,133 33,906 30,537 24,572 24,766 24,139

TOTAL 45,521 44,865 46,267 47,138 51,899 55,543 TOTAL 45,521 44,865 46,267 47,138 51,899 55,543

Cash 11.79% 18.24% 21.21% 23.44% 24.44% 25.70% Short-term 6.56% 22.82% 25.95% 27.77% 34.42% 38.48%

Operating 28.55% 30.96% 41.10% 56.08% 60.43% 65.11% Long-term 35.38% 16.82% 14.27% 12.00% 9.09% 6.79%Operating l 24.11% 24.78% 28.31% 31.65% 32.58% 34.27% Owner's e 58.05% 60.37% 59.79% 60.23% 56.50% 54.73%

Working 4.44% 6.19% 12.79% 24.43% 27.84% 30.84% Long-ter 93.44% 77.18% 74.05% 72.23% 65.58% 61.52%

Net Fixed 83.77% 75.57% 66.00% 52.13% 47.72% 43.46%

TOTAL 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% TOTAL 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%

Managerial Balance Sheet

Invested Capital Capital Employed

Percentage using Total Invested Capital as Base Percentage using Capital Employment as Base



1997 1998 1999 2000 2001 2002 19

Operating Assets Net Short Term Debt (2

Accounts Receivable 6864 7490 11199 13548 16564 19507 (Short Term Debt-Cash)

Inventories 6,133 6,401 7,817 12,889 14,795 16,656 % of WCR financed by Short Term Funds

total Operating Assets 12,997 13,891 19,016 26,437 31,359 36,163

Net Long Term Debt

Operating Liabilities (Long Term Debt+Owners Equity-Net Fixed Assets)

Accounts Payable 3,578 3,755 4,103 4,792 5,284 5,949 % of WCR financed by Long Term Funds

Other Current Liabilities 7,397 7,361 8,996 10,127 11,625 13,087

Total Operating Liabilities 10,975 11,116 13,098 14,919 16,909 19,036

Working Capital Requiremens 2,022 2,775 5,918 11,518 14,450 17,127 % OF SALES 3.3% 4.1% 7.2% 12.5% 13.7% 14.4%

19

Net Short Term Debt

1997 1998 1999 2000 2001 2002 % of WCR financed by Short Term Funds

Operating Assets

Accounts Receivable 6864 7490 11199 13548 16564 19507 Net Long Term Debt

Inventories 6,133 6,401 7,817 12,889 14,795 16,656

total Operating Assets 12,997 13,891 19,016 26,437 31,359 36,163 % of WCR financed by Long Term Funds

Operating Liabilities

Accounts Payable 3,578 3,755 4,103 4,792 5,284 5,949


Working Capital Requiremens 9,419 10,136 14,914 21,645 26,075 30,214

% OF SALES 15.2% 15.1% 18.2% 23.5% 24.7% 25.4%

WORK ING CAPITAL REQUIREME NT

Current Liabilities a Part of Operating Liabilities

Without Current Liabilities being a part of Operating Liabilities

Net Short Term/Lo

Current Liabilities a Pa

Without Current Liabilities bei



Exhibit 4


Ratio Analyses of Historical and Projected Financial Statements

1997 1998 1999 2000 2001 2002

(Actual) (Actual) (Actual) (Actual) (Proj'd) (Proj'd)

Profitability

1 Operating Profit Margin (%) 7.3% 7.6% 6.0% 6.6% 7.0% 7.0%2 Average Tax Rate (%) 33.8% 34.5% 39.5% 39.0% 35.0% 35.0%

3 Return on Sales (%) 3.6% 4.0% 2.8% 3.2% 4.1% 4.5%

4 Return on Equity (%) 8.4% 9.8% 8.4% 10.3% 13.1% 14.0%

5 Return on Net Assets (%) 6.5% 7.4% 6.9% 8.4% 11.2% 13.4%

6 Return on Assets (%) 3.9% 4.7% 3.9% 4.7% 7.2% 8.9%

Leverage7 Debt/Equity Ratio (%) 72.3% 65.6% 67.3% 66.0% 30.2% 7.0%

8 Debt/Total Capital (%) 41.9% 39.6% 40.2% 39.8% 23.2% 6.5%

9 EBIT/Interest (x) 3.8 4.8 4.7 4.7 11.4 48.7

Asset Utilization10 Sales/Assets 1.10 1.20 1.38 1.48 1.76 2.00

11 Sales Growth Rate (%) 4.0% 7.9% 22.2% 12.6% 2.0% 2.0%12 Assets Growth Rate (%) 6.0% -0.9% 6.0% 4.5% -14.2% -10.1%

13 Receivables Growth Rate (%) 4.0% 9.1% 49.5% 21.0% -22.9% 2.0%

14 Receivables Growth Rate: Germany 4.0% 3.0% 1.1% 4.1% 0.9% 2.0%

15 Receivables Growth Rate: Ukraine 0.0% NMF 863.5% 50.8% -52.0% 2.0%

16 Days in Receivables 40.8 41.3 50.5 54.3 41.0 41.0

17 Days in Receivables: Germany 40.8 41.6 41.0 41.4 41.0 41.0

18 Days in Receivables: Ukraine NMF 36.3 85.0 87.1 41.0 41.0

19 Payables to Sales 5.8% 5.6% 5.0% 5.2% 5.0% 5.0%

20 Inventories to Sales 9.9% 9.6% 9.6% 14.0% 14.0% 14.0%

Liquidity21 Current Ratio 1.32 1.03 1.15 1.34 1.81 2.59

22 Quick Ratio 0.88 0.73 0.84 0.88 1.13 1.61



Assumptions

Exhibit 1Deutsche Brauerei

Forecast Assumptions

Assumptions 1999 2000 2001 2002(Actual) (Actual) (Proj'd) (Proj'd)

Sales Growth: Germany 2.50% 3.11% 2.00% 2.00%

Sales Growth: Ukraine 312.00% 47.20% 2.00% 2.00%

Operating Margin: Germany 6.20% 6.10% 7.00% 7.00%

Operating Margin: Ukraine 6.20% 6.10% 7.00% 7.00%

Capital Expenditures/Sales ¼ 0 ¼ 0

Excise Duties to Sales

Depreciation to Gross PPE

Dividend Payout

Melded Interest Rate

Average Tax Rate

Cash to Sales

Days Sales Outstanding:

Germany

Ukraine

Allowance for Doubtful Accounts

as a % of Accts. Rec.

Payables to Sales

Inventories to Sales

Other Current Liabs. to Sales

12.0%

41

41

10.0%

75.0%

6.5%

35.0%

11.0%

11.0%

2.0%

5.0%

14.0%



x t


Historical and Projected Income Statements

Fiscal Year Ended December 31; all figures in ¼ thousands

1997 1998 1999 2000 2001 2002


1 Sales: Germany 62,032 62,653 64,219 66,216 67,541 68,891

2 Sales: Ukraine - 4,262 17,559 25,847 26,364 26,892

3 Net Sales 62,032 66,915 81,779 92,064 93,905 95,783

Operating Expenses:

4 Production Costs and Expenses 32,258 35,366 44,271 49,827 52,434 53,975

5 Admin. and Selling Expenses 12,481 13,014 16,274 18,505 18,500 18,500

6 Depreciation 3,609 4,314 5,844 6,068 6,068 6,068

7 Excise duties 9,143 9,108 10,486 11,557 10,329 10,536

8 Total Operating Expenses (57,491) (61,802) (76,874) (85,957) (87,332) (89,079)9 Operating Profit 4,541 5,113 4,904 6,106 6,573 6,704

10 Allowance for Doubtful Accounts (5) (7) (38) (24) (74) (4)

11 Interest Expense (1,185) (1,064) (1,046) (1,304) (576) (138)

12 Earnings Before Taxes 3,351 4,042 3,821 4,779 5,924 6,562

13 Income Taxes (1,132) (1,396) (1,510) (1,864) (2,073) (2,297)

14 Net Earnings 2,219 2,646 2,311 2,915 3,850 4,265

Dividends on :

15 Dividends to All Common Shares 1,669 1,988 1,734 2,186 2,888 3,199

16 Retentions of Earnings 550 658 577 729 963 1,066



x t

Exhibit 1 -contd-

DEUTSCHE BRAUEREI

Historical and Projected Balance Shee

Fiscal Year Ended December 31; all figures in ¼ thousands

1997 1998 1999 2000 2001 2002


Assets1 Cash 5,366 8,183 9,813 11,048 11,269 11,494

2 Accounts Receivable

Germany 6,933 7,142 7,222 7,517 7,587 7,738

Ukraine - 424 4,090 6,168 2,961 3,021

Allowance for Doubtful Accounts (69) (76) (113) (137) (211) (215)

3 Inventories 6,133 6,401 7,817 12,889 13,147 13,410

4 Total Current Assets 18,363 22,075 28,829 37,485 34,753 35,4485 Investments & Other Assets 3,102 3,189 3,416 3,520 3,500 3,500

6 Gross Property Plant & Equipt. 58,435 58,435 60,682 60,682 60,682 60,682

7 Accumulated Depreciation (23,404) (27,719) (33,562) (39,631) (45,699) (51,767)

8 Net Property Plant & Equipt. 35,031 30,716 27,120 21,052 14,984 8,915

9 Total Assets 56,496 55,981 59,365 62,057 53,236 47,863

Liabilities and Stockholders' Equity:10 Bank Borrowings (Short Term) 2,987 10,236 12,004 13,089 4,143 (1,654)

11 Accounts Payable 3,578 3,755 4,103 4,792 4,695 4,789

12 Other Current Liabilities 7,397 7,361 8,996 10,127 10,330 10,53613 Total Current Liabilities 13,962 21,352 25,103 28,009 19,168 13,672

14 Long Term Debt: Bank Borrowings 16,107 7,544 6,601 5,658 4,715 3,772

15 Shareholders' Equity 26,427 27,085 27,661 28,390 29,353 30,419

16 Total Liabs. & Stockholders' Equity 56,496 55,981 59,365 62,057 53,236 47,863

Working Capital Requirement



Exhibit 1



Exhibit 1

WORKING CAPITAL REQUIREMENT

Current Liabilities a Part of Operating Liabilities

1997 1998 1999 2000 2001 2002Operating Assets

Accounts Receivable 6864 7490 11199 13548 16564 19507

Inventories 6,133 6,401 7,817 12,889 14,795 16,656




Other Current Liabilities 7,397 7,361 8,996 10,127 11,625 13,087



% OF SALES 3.3% 4.1% 7.2% 12.5% 13.7% 14.4%

Without Current Liabilities being a part of Operating Liabilities

1997 1998 1999 2000 2001 2002

Operating Assets

Accounts Receivable 6864 7490 11199 13548 16564 19507

Inventories 6,133 6,401 7,817 12,889 14,795 16,656






% OF SALES 15.2% 15.1% 18.2% 23.5% 24.7% 25.4%



6. Sensitivity Analyses: What happens to short term debt, net income and ROE in the following scenarios:

a. Credit extension is cut back to 41 days and rate of sales growth in East is only 2%

b. The plant is not expanded in 2001 and 2002; company sales growth in the east and west is only 2% per year. Days sales outstanding in both East and

c. Dividend payments as percentage of net income is reduced to 20%

Scenario

2001 2002 2001 2002 2001 2002

A. 10,626 10,530 3,606 3,811 12.30% 12.60%

B. 4,276 -1,387 3,874 4,315 13.20% 14.20%

C. 15,939 17,160 3,805 4,489 12.20% 13.00%

Base case 17,862 21,372 3,724 4,311 12.70% 14.20%

R eturn on Equity

When we modify the 2001 forecast assumptions for Scenario A (decreasing projected Ukraine sales from 45% to 2%) the short term

debt picture improves, but at the expense of a decreasing ROE and net income. Scenario B (not expanding and modifying credit policy)is better for Deutsche, as short term debt is eliminated by 2002, while net income and ROE remain relatively stable. Scenario C doesn¶t

really do much to chip away at the short term debt (probably because of the heavy investment in Ukraine expansion), with little to show

in net income and a decline in ROE.

Scenario A exemplifies that it isn¶t profitable for Deutsche to invest in receivables at all, as Oleg would like us to believe. Exhibit 4 for

Scenario A attached shows the impact on the debt-to-equity ratios when we modify the assumptions, improving significantly from 77%

and 83% to 52% and 47% in 2001 and 2002 respectively. The company is also able to get a better handle on receivables for Ukraine.

Scenario B demonstrates that it may not be the best time for Deutsche to invest in a plant and warehouse in the Ukraine. Until they get

a better handle on receivables and have more cash on hand to finance a good portion of the expansion (instead of relying on bank

debt), not expanding in 2001 would allow Deutsche to eliminate the short term debt and still see improvements in net income and ROE

for 2001.

Scenario C alone doesn¶t do too much for Deutsche, other than probably tick off all the older relatives. There is very little impact on

short term debt, minimal increase in net income and ROE actually declines. Dividends paid to shareholders are a traditional indicator of

a firm¶s financial health, and for public companies, a consistent dividend payment is a good sign for investors. But Deutsche is a

privately held company, and while they have traditionally aimed for a dividend payment of 75% of earnings for each year to satisfy the

older, retired relatives, if dividends were reduced slightly, those funds can be used to pay off debt and reinvest in Deutsche¶s long term

Short-Term Debt Net Income

ST Deutsche Brauerei Cohort 7Pooja

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