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Divestopia - Financial Fact BookDRAFTDivestopia.com

www.divestopia.comDRAFTTable of contentsSection nameLead sectionSheet nameLead income statementLead balance sheet / capital employedLead cash flow statementTab nameLead-PLLead-BSLead-CFValuation drivers sectionEnterprise value to equity value bridgeAdjusted EBITDANet debt overviewNormalized net working capital overviewEVtoEQAENDNWC891011Income statement sectionRecast income statementRevenue breakdownCost of sales breakdownSalaries and other expenses breakdownOther possible income statement analysesPL1PL2PL3PL4PL51314151617Balance sheet sectionTraditional balance sheet overviewInventory breakdownTrade receivable ageingTrade payable ageingOther possible balance sheet analysesBS1BS2BS3BS4BS51920212223Cash flow sectionCapex breakdownMonthly net working capital overviewMonthly DSO, DIO and DPO overviewCF1CF2CF3252629Forecast sectionIncome statement FY19 - FY25Balance sheet Dec19 - Dec25Cash flow FY19 - FY25Forecast stopia - Financial Fact Book Template.xlsxPage 2 of 36

www.divestopia.comDRAFTLead sectionSheet nameLead income statementLead balance sheet / capital employedLead cash flow statementLeadTab nameLead-PLLead-BSLead-CFPage456Divestopia - Financial Fact Book Template.xlsxPage 3 of 36

www.divestopia.comDRAFTLead income statementLead sectionBack to: Table of contentsCurrency: 000RevenuesCost of salesGross marginSalariesHousingSelling expensesAdministrative expensesOtherTotal operating expensesReported EBITDADepreciationOperating incomeInterest expensesInterest incomeProfit before taxIncome taxNet resultKPIsY-o-y revenue growthAverage number of FTESalaries per FTEIncome tax as % of 069.625.4In % of .0Revenue and gross margin RevenuesFY18FY19Gross margin %Lead section - Lead income statementSource: Trial balance and annual financial statementLead-PLDivestopia - Financial Fact Book Template.xlsxPage 4 of 36

www.divestopia.comDRAFTLead balance sheet / capital employedLead sectionBack to: Table of contentsCurrency: 000Tangible fixed assetsIntangible fixed assetsGoodwillFixed assetsInventoriesTrade receivablesTrade payablesTrade net working capitalPayroll liabilitiesIncome tax payableOther taxes payablesOther payablesOther receivablesNet working capitalNet assetsEquityProvisionsLong-term loansCash at banksCapital 9(2,925)(116)(419)361(3,099)Lead section - Lead balance sheet / capital employedSource: Trial balance and annual financial statementLead-BSDivestopia - Financial Fact Book Template.xlsxPage 5 of 36

www.divestopia.comDRAFTLead cash flow statementLead sectionBack to: Table of contentsCurrency: 000Reported EBITDACapexChange in net working capitalTaxes paidFree cash flowCash conversion in 23739.7FY191,131(810)159(192)28825.5Lead section - Lead cash flow statementSource: Trial balance and annual financial statementLead-CFDivestopia - Financial Fact Book Template.xlsxPage 6 of 36

www.divestopia.comDRAFTValuation drivers sectionSheet nameEnterprise value to equity value bridgeAdjusted EBITDANet debt overviewNormalized net working capital overviewVDTab nameEVtoEQAENDNWCPage891011Divestopia - Financial Fact Book Template.xlsxPage 7 of 36

www.divestopia.comDRAFTEnterprise value to equity value bridgeValuation drivers sectionBack to: Table of contentsCurrency: 000Enterprise valueAdjusted net debtNormal NWCActual NWC at Dec19NWC variance adjustmentRef13,000(131)505398(107)Equity value12,762Valuation drivers section - Enterprise value to equity value bridgeSource: Management 212,60012,40012,20012,000Enterprise valueAdjusted net debtIncreaseEVtoEQNWC variance adjustmentDecreaseEquity valueTotalDivestopia - Financial Fact Book Template.xlsxPage 8 of 36

www.divestopia.comDRAFTAdjusted EBITDAValuation drivers sectionComments:Back to: Table of contentsCurrency: 000Net resultIncome taxInterest incomeInterest expensesDepreciationReported EBITDAAdjustments:Double salary new CFORecruitment cost new CFORelease provisionOne-off advisory costDebtor write-off below EBITDATotal EBITDA adjustmentsAdjusted EBITDAPro forma adjustments:New salary ownerChange rental contractTotal pro forma adjustmentsPro forma adjusted EBITDAIn % of revenues:Reported EBITDAAdjusted EBITDAPro forma adjusted EBITDAValuation drivers section - Adjusted EBITDASource: Management 314.21. Net result to EBITDA: The items below EBITDA, such as income tax, interestand depreciation do not contain operational items to be considered in EBITDA,except for a debtor write-off in FY17 which was recorded as part of depreciation.2. Double salary new CFO: In October 2019, a new CFO started in the Company.The prior CFO was active in the period from October to December 2019 as well.From 2020, the new CFO will act alone. The double salary of the old CFO ( 12kper month) is adjusted in EBITDA.3. Recruitment costs new CFO: An external agency was engaged to find the newCFO. The recruitment cost incurred by this agency are adjusted.4. Release provision: In FY18, the provision for claims was increased by 100k.However, in FY19, the lawsuit was won in our favor and the provision could bereleased.5. One-off advisory costs: During FY18 and FY19, the Company incurred externaladvisory costs related to the implementation of a new ERP system.6. Debtor write-off below EBITDA: Starting FY18, all debtors write-offs arerecorded in selling expenses above EBITDA. The FY17 charge was recorded indecpreciation.7. New salary owner: Post-acquisition the owner will continue as an employeewithin the Company. The owners salary will decrease by 10k per month.8. Change rental contract: Currently, the real estate is owned by a relatedcompany of the owner. The rental price is below what is common in the market.Post-acquisition a new rental contract will be agreed with a market price. Thedifference between the current and market price is adjusted in EBITDA.Divestopia - Financial Fact Book Template.xlsxPage 9 of 36

www.divestopia.comDRAFTNet debt overviewValuation drivers sectionBack to: Table of contentsComments:Currency: 000Long-term loansCash at banksReported net debtDebt- or (cash)-like items:Corporate income tax payableOne-off IT advisory cost payableAccrued interestShareholder payableTotal debt like itemsAdjusted net debtValuation drivers section - Net debt overviewSource: Management . Reported net debt: The reported net debt includes 419k long-term loan at theCitibank and 361k cash in banks. The cash in banks is freely available.2. Corporate income tax payable: The corporate income tax payable is the openpayable position as of Dec19. The final tax declaration has been submitted.3. One-off IT advisory cost payable: During FY18 and FY19, the Company hired anexternal advisor for the implementation of a new ERP system. The totalengagement is 125k, of which 20k is still payable at Dec19.4. Accrued interest: The interest of the long-term loan is accrued as otherpayables.5. Shareholder payable: The other payables include an aged payable to theShareholder.Divestopia - Financial Fact Book Template.xlsxPage 10 of 36

www.divestopia.comDRAFTNormalized net working capital overviewValuation drivers sectionBack to: Table of contentsCurrency: 000InventoriesTrade receivablesTrade payablesTrade net working capitalPayroll liabilitiesIncome tax payableOther taxes payablesOther payablesOther receivablesReported net working capitalAdjustments:Corporate income tax payableOne-off IT advisory cost payableAccrued interestShareholder payableTotal adjustmentsAdjusted net working capitalVariance with Dec19 83810130505(107)1. Debt-like items:For details on the debt-like items referto the net debt section.2. NWC variance adjustment:Depending on which average level toconsider as normal (e.g., either thelast 3 months, last 6 months or lasttwelve months), the net workingcapital variance adjustment is 123k, 99k or 107k debt-like, respectively.Valuation drivers section - Normalized net working capital overviewSource: Trial balance and annual financial statementNWCDivestopia - Financial Fact Book Template.xlsxPage 11 of 36

www.divestopia.comDRAFTIncome statement sectionSheet nameRecast income statementRevenue breakdownCost of sales breakdownSalaries and other expenses breakdownOther possible income statement analysesPLTab namePL1PL2PL3PL4PL5Page1314151617Divestopia - Financial Fact Book Template.xlsxPage 12 of 36

www.divestopia.comDRAFTRecast income statementIncome statement sectionBack to: Table of contentsCurrency: 000RevenuesCost of salesGross marginSalariesHousingSelling expensesAdministrative expensesOtherTotal operating 4,000(1,917)(410)(213)(43)(206)(2,789)1,211Income statement section - Recast income statementSource: Trial balance and annual financial statementPL1Divestopia - Financial Fact Book Template.xlsxPage 13 of 36

www.divestopia.comDRAFTRevenue breakdownIncome statement sectionBack to: Table of contentsRevenue by productCurrency: 000Product 1Product 2Product 3Product 4Product 5Product 8716079,103FY1739.926.515.97.64.65.5100.0In %FY1840.122.815.57.77.07.0100.0Revenue by 002,0001,0000Income statement section - Revenue breakdownProduct 1Source: Sales detailsRevenue by countryCurrency: 000United StatesCanadaUnited KingdomChinaGermanyFranceRevenuesProduct 339,103FY1741.917.416.28.39.66.7100.0In 7.07.0100.0FY18United 1,8059,103FY1754.429.715.9100.0In %FY1856.626.217.2100.0Product ,0846,821Product 54,0003,5003,0002,5002,0001,5001,0005000Source: Sales detailsRefProduct 4Revenue by countryIncome statement section - Revenue breakdownRevenue by channelCurrency: 000DirectDistributorsOnlineRevenuesProduct 2ChinaFY18FY19Revenue by channel in % in FY19FY1962.817.419.8100.0Income statement section - Revenue breakdown19.817.462.8Source: Sales detailsDirectPL2Divestopia - Financial Fact Book Template.xlsxDistributorsOnlinePage 14 of 36

www.divestopia.comDRAFTCost of sales breakdownIncome statement sectionBack to: Table of contentsCurrency: 000Raw materialsDirect materialsIndirect materialsOverhead manufacturingPrice differenceFreightCost of Income statement section - Cost of sales breakdownSource: Trial balance and annual financial statementPL3Divestopia - Financial Fact Book Template.xlsxPage 15 of 36

www.divestopia.comDRAFTSalaries and other expenses breakdownIncome statement sectionBack to: Table of contentsCurrency: 000Gross salariesSocial chargesBonusSalariesRental costsMaintenanceHousingMarketingWebsiteDebtor write-offSelling expensesInsuranceAccountingOtherAdministrative expensesProfessional feesOtherOtherOperating 75410174182121324435512246601062,869Income statement section - Salaries and other expenses breakdownSource: Trial balance and annual financial statementPL4Divestopia - Financial Fact Book Template.xlsxPage 16 of 36

www.divestopia.comDRAFTOther possible income statement analysesIncome statement sectionBack to: Table of contentsExamples of other analysesRevenue price and volume analysesGross margin per product, type and regionRevenue, gross margin and EBITDA per location / plantHeadcount development per month and per departmentMonthly operating expenses breakdownForeign exchange exposureConstant currency income statementIncome statement section - Other possible income statement analysesSource: www.divestopia.comPL5Divestopia - Financial Fact Book Template.xlsxPage 17 of 36

www.divestopia.comDRAFTBalance sheet sectionSheet nameTraditional balance sheet overviewInventory breakdownTrade receivable ageingTrade payable ageingBSTab nameBS1BS2BS3BS4Page19202122Divestopia - Financial Fact Book Template.xlsxPage 18 of 36