Pre Recapitalization

Balance Sheet as on 31st March,2004 ( in SEK Millions ) Change

Assets
Cash and Short Term Investments 3,002 -
Current Assets 4,884 -
PP&E 2,712 -
Other Assets 4,300 -
Total Assets 14,898

Liabilites and Equity

Current Liabilites 3,776 -
Total Interest bearing debt 3,529 4,000
Of Which: Long Term Debt 2,559 4,000
Other Liabilites 2,553 -
Equity, including minority interest 5,060 -4,000
Total Liabilites and Equity 14,898

Legend
Change from Previous Value
 Post Recapitalization
Balance Sheet as on 31st March,2004 ( in SEK Millions )
Assets
Cash and Short Term Investments 3,002
Current Assets 4,884
PP&E 2,712
Other Assets 4,300
Total Assets 14,898

Liabilites and Equity

Current Liabilites 3,776
Total Interest bearing debt 7,529
Of Which: Long Term Debt 6,559
Other Liabilites 2,553
Equity, including minority interest 1,060
Total Liabilites and Equity 14,898
Step Calculating Post Announcement Market Capitalisation & Intangible Assets
1 Present Value of Interest Tax Shield (Million SEKs) 399
2 Shares Outstanding (in Millions) 322.1

3 Increment per share due to Interest Tax Shield 1.24

4 Increase in Share Price 89.58

5 Market Capitalisation / Market Value (Million SEKs) 28,853

6 Intangible Assets (Million SEKs) 23,793

Balance Sheet as on 31st March,2004 ( in SEK Millions )

Assets Pre- Announcement

Cash and Short Term Investments 3,002

Current Assets 4,884
PP&E 2,712
Other Assets 4,300
Intangible Assets 23,394
Total Assets 38,292

Liabilites and Equity

Current Liabilites 3,776
Total Interest bearing debt 3,529
Other Liabilites 2,533
Equity, including minority interest 28,454
Total Liabilites and Equity 38,292

Legend
Change from Previous Value

FORMULAE USED
Book Value = Assets - Liabilities (Excluding Equity)
Market Value = No. of shares * Share Price
 GIVEN
Cash Flow Data and Stock Price
Capital Expenditures 486
Cash Acquisitions, netf -64
Dividends Paid 558
Share Repurchases 658
Shares Outstanding, M 322.1
Year End Share Price (krona/share) 88.34
Market Value of Equity 28,454

lions ) Balance Sheet (in SEK Millions)

3 (a) Post Solution 3 (b) - On completion of issuance
Announcement of SEK 4 B in debt
3,002 7,002
4,884 4,884
2,712 2,712
4,300 4,300
23,793 23,793
38,691 42,691

3,776 3,776
3,529 7,529
2,533 2,533
28,853 28,853
38,691 42,691
 Balance Sheet (in SEK Millions)

Solution 3 (c) - On completion of Share Repurchase

3,002
4,884
2,712
4,300
23,793
38,691

3,776
7,529
2,533
24,853
38,691
 Current Scenario 2014

(Values in SEK Millions )

Without recapitalization
EBIDTA 2,344
Depreciation & Amortization 479
EBIT 1,865
Interest 266

Ratios
EBIT interest coverage (x) 8.81
EBITDA interest coverage (x) 7.01
Total debt/EBITDA (x) 1.51
Market leverage (debt/debt plus market capitalization) (%) 11.03
Expect a BBB rating Yes
 Forcast for 2015
Forecast Next Year Worst Case
(With recap & (With recap & EBITDA
EBITDA 3000 M) 1500 M)
3,000 1,500
479 479 Assuming the same depreciation for 2015 as in 2014
2,521 1,021
446 446

6.73 3.36
5.65 2.29
2.51 5.02
0.21 0.21
Yes No