www.zerohedge.

com

Kloeckner & Co SE (Germany)

CREDIT SNAPSHOT 10/14/09

01 DEBT DISTRIBUTION

02 BONDS

03 INCOME STATEMENT

04 CASH FLOW

05 BALANCE SHEET

06 COVERAGE RATIOS

07 LEVERAGE RATIOS

08 ENTERPRISE VALUE

09 RETURN ON CAPITAL
e-mail darpa@zerohedge.com 10 RECOVERY & TANGIBLE NET WORTH
blog www.zerohedge.com 11 ACCOUNTING RED FLAGS

12 LATEST SEC FILINGS

13 LEGAL DISCLAIMER

KCO GR Equity

equity ticker: KCO GR capitalisation (EUR in millions):

bond ticker: KCOGR stock price EUR 18.62

sector: Basic Materials shares outstanding (million) 66.50

subgroup: Steel-Producers market capitalisation (EUR mm) 1,236

company description: total debt 726

Kloeckner & Co SE distributes a wide range of
cash + marketable securities 616
steel and metal products.
other capital 13

enterprise value (excl. cash) 1,360

current EV / TTM EBITDA 8.5x

The company's next report is expected for 11/13/2009 (type:

Confirmed).
Kloeckner & Co SE has 9,500 employees. www.kloeckner.de

The distribution of this report is restricted. Important information concerning these restrictions and legal disclaimer is set forth at the end of this report.
03 Kloeckner & Co SE www.zerohedge.com
EUR in millions Q2 08 Q3 08 Q4 08 Q1 09 Q2 09 05 06 07 08

06/30/09 12/31/08

Revenues 1,922 1,773 1,394 1,095 959 4,964 5,532 6,274 6,750

COGS

COGS % of Revenues

SG&A 1,734 1,686 1,558 1,259 1,018 4,903 5,294 6,059 6,556

SG&A % of Revenues 90.2% 95.1% 111.7% 114.9% 106.2% 98.8% 95.7% 96.6% 97.1%
INCOME STATEMENT

EBITDA 212 413 -92 -132 -31 199 394 341 643

Interest Expense 62 95 69

EBT 275 182 507

Net Income 122 351 -126 -126 -48 116 206 133 398

EBITDA Margin 11.0% 23.3% -6.6% -12.0% -3.2% 4.0% 7.1% 5.4% 9.5%

EBIT Margin 10.3% 22.3% -7.9% -13.6% -5.0% 2.7% 6.1% 4.4% 8.5%

23.3% EBITDA Margin EBIT Margin

22.3%
11.0%
10.3%

9.5%
8.5%
7.1%
6.6%
6.2%

6.1%
5.9%

5.9%

5.6%

5.4%
5.3%
5.1%

4.8%

4.4%
4.0%
3.6%

2.7%
2.4%

0.0%
0.0%

0.0%
0.0%

0.0%
0.0%
Q1 07 Q2 07 Q3 07 Q4 07 Q1 08 Q2 08 Q3 08 Q4 08 Q1 09 Q2 09
-3.2% 02 03 04 05 06 07 08

-5.0%
-6.6%
-7.9%

-12.0%
-13.6%

EUR in millions Q2 08 Q3 08 Q4 08 Q1 09 Q2 09 05 06 07 08

06/30/09 12/31/08
TTM INCOME STATEMENT

TTM Revenues 6,657 6,847 6,750 6,185 5,222 4,964 5,532 6,274 6,750
TTM EBITDA 468 788 643 402 159 199 394 341 643
TTM D&A 66 67 67 69 71 65 57 64 67
TTM EBIT 402 721 576 333 88 134 337 277 576

TTM Interest Expense 62 95 69

TTM EBT 275 182 507

TTM Net Income 247 562 398 222 51 116 206 133 398

TTM Revenues
TTM Revenues TTM EBITDA
EBITDA
6,847

6,750

6,750
6,657

788
6,274
6,185

5,532

643

643
5,222

4,964

468

402

394

341
199
159

Q2 08 Q3 08 Q4 08 Q1 09 Q2 09 05 06 07 08 Q2 08 Q3 08 Q4 08 Q1 09 Q2 09 05 06 07 08

TTM EBT TTM Interest Expense TTM D&A

67
69

57
62 64
507
95

275
182
66 67 67 69 71 65
0 0 0 0 0 0
Q2 08 Q3 08 Q4 08 Q1 09 Q2 09 05 06 07 08
04 Kloeckner & Co SE www.zerohedge.com
EUR in millions Q2 08 Q3 08 Q4 08 Q1 09 Q2 09 05 06 07 08

06/30/09 12/31/08

Cash from Operations (CFO) 2 23 139 256 190 88 86 31 149

CASH FLOW

Cash from Investing (CFI) -133 365 -19 -5 3 -44 10 -378 72

Free Cash Flow (CFO + CFI) -131 387 121 251 193 44 96 -347 221

Cash from Financing Activities 147 -270 -68 -105 -18 -28 -45 371 -81

Cash from Operations (CFO) Free Cash Flow (CFO + CFI)

500
400
300
200
100
0
-100 Q1 07 Q2 07 Q3 07 Q4 07 Q1 08 Q2 08 Q3 08 Q4 08 Q1 09 Q2 09 02 03 04 05 06 07 08

-200
-300
-400
-500

EUR in millions Q2 08 Q3 08 Q4 08 Q1 09 Q2 09 05 06 07 08

06/30/09 12/31/08

TTM Cash from Operations (CFO) 209 153 149 420 608 88 86 31 149

TTM Cash from Invest. (CFI) -301 80 72 207 344 -44 10 -378 72

TTM Capex -62 -56 -48 -44 -36 -66 -92 -61 -48

TTM D&A -66 -67 -67 -69 -71 -65 -57 -64 -67

TTM Free Cash Flow (CFO + CFI) -92 233 221 628 952 44 96 -347 221

TTM Cash from Financing Activities 142 -122 -81 -296 -461 -28 -45 371 -81

TTM CFO - Capital Expenditures 148 97 101 376 572 22 -6 -30 101
TTM CASH FLOW

TTM EBITDA - Capital Expenditures 406 732 595 358 123 134 302 280 595

TTM EBITDA - Capex - Change in WC 406 731 595 357 122 134 302 281 595

TTM EBITDA-Capex-WC-CshIntEx-CshTax-CshDiv 25 201 112 418

TTM CFO/Total Debt 17.5% 16.6% 17.3% 55.0% 83.8% 11.3% 17.9% 3.5% 17.3%

TTM FCF/Total Debt -7.7% 25.2% 25.7% 82.1% 131.1% 5.7% 19.9% -39.2% 25.7%

TTM Capex TTM D&A TTM Cash from Invest. (CFI) TTM EBITDA - Capital Expenditures

732

595 595
344
207
80

72

10

72

406
358
-62
-66

-56
-67

-48
-67

-44
-69

-36
-71

-66
-65
-44
-92
-57

-61
-64

-48
-67

302
280
-301

-378

123 134

Q2 08 Q3 08 Q4 08 Q1 09 Q2 09 05 06 07 08
Q2 08 Q3 08 Q4 08 Q1 09 Q2 09 05 06 07 08

TTM EBITDA - Capex - Change in WC TTM EBITDA-Capex-WC-CshIntEx-CshTax-CshDiv

800
700
600
500
400
300
200
100
0
Q2 08 Q3 08 Q4 08 Q1 09 Q2 09 05 06 07 08
05 Kloeckner & Co SE www.zerohedge.com
EUR in millions Q2 08 Q3 08 Q4 08 Q1 09 Q2 09 05 06 07 08

06/30/09 12/31/08

Cash 124 241 297 447 616 79 130 154 297

Marketable Securities / ST Investments 0 0

Accounts & Notes Receivable 1,236 1,138 799 689 591 800 933 930 799

Inventories & Unbilled Receivables 1,199 1,328 1,001 765 604 693 841 956 1,001

Net Fixed Assets 473 488 479 473 465 549 501 482 479

75% of Accounts Receivable 927 853 599 517 443 600 700 697 599

30% of Inventories & Unbill. Rec. 360 399 300 230 181 208 252 287 300

10% of Net Fixed Assets 47 49 48 47 46 55 50 48 48

Collateral (Liquidation) Asset Value 1,458 1,541 1,244 1,240 1,287 942 1,132 1,186 1,244
BALANCE SHEET

Working Capital 1,446 1,662 1,446 1,223 1,271 649 964 1,262 1,446

Net Other Long Term Assets & Liabs. -20 -56 -38 -42 -171 -286 -248 -86 -38

Total Borrowings (includes ST Borrowings) 1,195 923 861 764 726 779 481 886 861

Net Debt 1,071 683 564 317 110 699 351 732 564

Collateral Asset Value / Total Borrowings 122.0% 166.9% 144.4% 162.3% 177.3% 121.0% 235.4% 133.9% 144.4%

explanations and definitions:

The approximation we use to calculate a company's total Collateral (Liquidation) Asset Value (for an asset based liquidation scenario) is calculated as the sum of
Cash plus Marketable Securities / Short-Term Investments plus assets with the following valuation rates applied:
75% of stated Accounts Receivable
30% of stated Inventory
10% of stated Net Fixed Assets.
Although we acknowledge that some industries and individual situations demand clearly different assumptions we nevertheless think this is a useful approximation
across all industries covered, if only as a starting point for further individual in-depth analysis.

75% of Accounts Receivable 30% of Inventories & Unbill. Rec. Working Capital
10% of Net Fixed Assets
1,662

1,446 1,446 1,446

47 1,223 1,271 1,262

49
360
399 48 964
50
48 48
55 252 287
300 47 300 649
208
230 46
181
927 853
700 697
599 517 600 599
443

Q2 08 Q3 08 Q4 08 Q1 09 Q2 09 05 06 07 08 Q2 08 Q3 08 Q4 08 Q1 09 Q2 09 05 06 07 08

Net Other Long Term Assets & Liabs. Total Borrowings (includes ST Borrowings) Net Debt

-20
-38 -42 -38
-56
-86
1,195
1,071

-171
923

886
861

861
779
764

732
726

699
683

564

564

-248
481
351
317

-286
110

Q2 08 Q3 08 Q4 08 Q1 09 Q2 09 05 06 07 08 Q2 08 Q3 08 Q4 08 Q1 09 Q2 09 05 06 07 08

Collateral Asset Value / Total Borrowings

235.4%

177.3%
166.9% 162.3%
144.4% 144.4% As of 12/31/2008 the Pension Plan of Kloeckner & Co SE was underfunded by
133.9% EUR -171mm.
122.0% 121.0%

Q2 08 Q3 08 Q4 08 Q1 09 Q2 09 05 06 07 08
06 Kloeckner & Co SE www.zerohedge.com
EUR in millions Q2 08 Q3 08 Q4 08 Q1 09 Q2 09 05 06 07 08
COVERAGE RATIOS

06/30/09 12/31/08

TTM EBITDA / TOTAL INTEREST - - - - - - 6.4x 3.6x 9.4x

TTM EBITDAR / TOTAL INTEREST+RENT - - - - - - 3.7x 2.5x 5.1x

TTM EBITDA-CAPEX / TOTAL INTEREST - - - - - - 4.9x 2.9x 8.7x

TTM EBITDAR-CAPEX / TOTAL INTEREST+RENT - - - - - - 3.0x 2.1x 4.8x

explanations and definitions:

TTM TOTAL INTEREST: For all coverage ratio calculations we use the Total Interest figure which in addition to Interest Expense also includes Capitalized Interest
Expenses. We think this gives a better view of the economic reality than the simple Interest Expense figure.

TTM EBITDA / TOTAL INTEREST TTM EBITDAR / TOTAL INTEREST+RENT

9.4x
5.1x

6.4x 3.7x

2.5x
3.6x

0.0x 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x

Q2 08 Q3 08 Q4 08 Q1 09 Q2 09 05 06 07 08 Q2 08 Q3 08 Q4 08 Q1 09 Q2 09 05 06 07 08

TTM EBITDA-CAPEX / TOTAL INTEREST TTM EBITDAR-CAPEX / TOTAL INTEREST+RENT

8.7x
4.8x

4.9x 3.0x

2.1x
2.9x

0.0x 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x

Q2 08 Q3 08 Q4 08 Q1 09 Q2 09 05 06 07 08 Q2 08 Q3 08 Q4 08 Q1 09 Q2 09 05 06 07 08
07 Kloeckner & Co SE www.zerohedge.com
EUR in millions Q2 08 Q3 08 Q4 08 Q1 09 Q2 09 05 06 07 08

06/30/09 12/31/08

NET DEBT / TTM EBITDA 2.3x 0.9x 0.9x 0.8x 0.7x 3.5x 0.9x 2.1x 0.9x

TOTAL DEBT / TTM EBITDA 2.6x 1.2x 1.3x 1.9x 4.6x 3.9x 1.2x 2.6x 1.3x
LEVERAGE RATIOS

TOTAL DEBT / TTM EBITDA-CAPEX 2.9x 1.3x 1.4x 2.1x 5.9x 5.8x 1.6x 3.2x 1.4x

Rentadj. TOT DEBT / TTM EBITDAR 3.3x 1.7x 2.0x 2.8x 5.6x 2.1x 3.5x 2.0x

Rentadj. TOT DEBT / TTM EBITDAR-CAPEX 3.7x 1.8x 2.1x 3.1x 6.7x 2.7x 4.1x 2.1x

HAIRCUT EBITDA MULTIPLE / TOTAL DEBT 123.3% 268.8% 235.2% 165.9% 69.1% 80.7% 258.3% 121.3% 235.2%

TOTAL DEBT / TTM EBIT 3.0x 1.3x 1.5x 2.3x 8.2x 5.8x 1.4x 3.2x 1.5x

explanations and definitions:

Rent adj. Total Debt/TTM EBITDAR: This ratio is calculated by dividing the Rent Adjusted Total Debt figure (Total Debt plus 8 times TTM Rental
Expenses) by EBITDAR (TTM EBITDA plus TTM Rental Expenses).
HAIRCUT EBITDA MULTIPLE / TOTAL DEBT: We adjust TTM EBITDA to 70% of its stated value, multiply the result with 4.5 as an assumed exit multiple and relate
the resulting figure (the haircut EBITDA multiple) to the TOTAL DEBT number. This ratio should reflect the situation of an issuer's liquidation, whereby the assets can
be sold at a reduced EBITDA multiple.

NET DEBT / TTM EBITDA TOTAL DEBT / TTM EBITDA TOTAL DEBT / TTM EBITDA-CAPEX

3.5x
5.9x 5.8x

4.6x
2.3x 3.9x
2.1x
3.2x
2.9x
2.6x 2.6x
2.1x
1.9x
0.9x 0.9x 0.9x 0.9x 1.4x 1.6x 1.4x
0.8x 1.3x 1.3x 1.3x
0.7x 1.2x 1.2x

Q2 08 Q3 08 Q4 08 Q1 09 Q2 09 05 06 07 08 Q2 08 Q3 08 Q4 08 Q1 09 Q2 09 05 06 07 08

HAIRCUT EBITDA MULTIPLE / TOTAL DEBT Rentadj. TOT DEBT / TTM EBITDAR
Rentadj. TOT DEBT / TTM EBITDAR-CAPEX
268.8% 6.7x
258.3%
235.2% 235.2%
5.6x

165.9% 4.1x
3.7x
3.5x
3.3x
123.3% 121.3% 3.1x
2.8x 2.7x
80.7% 2.1x 2.1x 2.1x
69.1% 1.8x 2.0x
1.7x
2.0x

0.0x
0.0x

Q2 08 Q3 08 Q4 08 Q1 09 Q2 09 05 06 07 08 Q2 08 Q3 08 Q4 08 Q1 09 Q2 09 05 06 07 08

TOTAL DEBT / TTM EBIT

8.2x

5.8x

3.2x
3.0x
2.3x

1.5x 1.4x 1.5x

1.3x

Q2 08 Q3 08 Q4 08 Q1 09 Q2 09 05 06 07 08
08 Kloeckner & Co SE www.zerohedge.com
EUR in millions Q2 08 Q3 08 Q4 08 Q1 09 Q2 09 05 06 07 08

06/30/09 12/31/08
ENTERPRISE VALUE

EV / TTM EBITDA 6.0x 1.9x 1.8x 1.7x 5.2x 5.1x 6.1x 1.8x

EV / TTM EBIT 7.0x 2.1x 2.0x 2.0x 9.4x 5.9x 7.5x 2.0x

Enterprise Value 2,793 1,492 1,148 678 826 1,997 2,088 1,148

TOTAL DEBT 1,195 923 861 764 726 779 481 886 861

Equity Market Cap 1,685 780 571 350 704 1,533 1,271 571

EV / TTM EBITDA
EV / TTM EBIT

9.4x
6.0x 6.1x

5.2x 5.1x 7.5x

7.0x

5.9x

1.9x 1.8x 1.8x

1.7x
2.1x 2.0x 2.0x 2.0x

0.0x
0.0x
Q2 08 Q3 08 Q4 08 Q1 09 Q2 09 05 06 07 08
Q2 08 Q3 08 Q4 08 Q1 09 Q2 09 05 06 07 08

TOTAL DEBT EV - TOTAL DEBT Equity Market Cap

1,685
1,533

1,271
1,598

1,202

780
1,516

704
569

287

287

571 571
100

0
1,195

350
923

886
861

861
779
764

726

481
-87

0
Q2 08 Q3 08 Q4 08 Q1 09 Q2 09 05 06 07 08
Q2 08 Q3 08 Q4 08 Q1 09 Q2 09 05 06 07 08

KCO GR stock closing price

60

50

40

30

20

10

0
Apr/07

Apr/08

Apr/09
Okt/06

Jän/07

Okt/07

Jän/08

Okt/08

Jän/09

Okt/09
Jul/06

Jul/07

Jul/08

Jul/09
09 Kloeckner & Co SE www.zerohedge.com
EUR in millions Q2 08 Q3 08 Q4 08 Q1 09 Q2 09 05 06 07 08

06/30/09 12/31/08

Adjusted Cap Rate 8.65% 30.09% 0 29.08% 4.56% 11.82% 9.44% 34.07%
RETURN ON CAPITAL

Tangible Capital 1,700 1,665 1,403 1,035 826 1,007 1,118 1,380 1,403

Total Intangibles 227 239 236 239 222 15 32 198 236

Pre-tax ROIC 23.6% 43.3% 41.0% 32.2% 10.7% 13.3% 30.1% 20.1% 41.0%

After-tax ROIC (effective tax rate) 16.4% 39.9% 10.9% 25.9% 15.0% 34.0%

After-tax ROIC (assumed tax rate) 15.4% 28.1% 26.7% 20.9% 6.9% 8.7% 19.6% 13.1% 26.7%

WACD (Pre-tax) 12.9% 10.8% 8.0%

explanations and definitions:

Adjusted Cap Rate: This ratio shows EBIT reduced by an assumed tax rate of 35% and adjusted for Net Non-Operating and Extraordinary Losses (Gains) - averaged
over the last 5 years - divided by the Enterprise Value.
Tangible Capital: Starting with the Total Book Capital the Tangible Capital figure is calculated by subtracting Intangibles, Cash and Marketable Securities as well as
Short Term Investments.
We calculate three different ROIC (Return on Invested Capital) figures:
Pre-Tax ROIC: this ratio relates the trailing twelve months (TTM) EBIT to Tangible Capital as defined above.
After-tax ROIC (effective tax rate): here EBIT is corrected by the company's effective tax rate as stated in it's latest financials, giving an after-tax ROIC rate.
After-tax ROIC (assumed tax rate): here EBIT is corrected by an assumed tax rate of 35%, giving a modified after-tax ROIC rate.
WACD (Pre-Tax): This rate is defined as trailing twelve months (TTM) TOTAL INTEREST EXPENSE divided by Total Borrowings.

Adjusted Cap Rate After-tax ROIC (assumed tax rate)

28.1%
26.7% 26.7%
34.1%

30.1% 30.9%
29.1%
20.9%
19.6%

15.4%
13.1%

11.8% 8.7%
8.6% 9.4% 6.9%

4.6%

0.0%

Q2 08 Q3 08 Q4 08 Q1 09 Q2 09 05 06 07 08 Q2 08 Q3 08 Q4 08 Q1 09 Q2 09 05 06 07 08

WACD (Pre-tax)

12.9%

10.8%

8.0%

0.0% 0.0% 0.0% 0.0% 0.0% 0.0%

Q2 08 Q3 08 Q4 08 Q1 09 Q2 09 05 06 07 08
10
DEFAULT ESTIMATE Kloeckner & Co SE www.zerohedge.com

Average Bond Spread (in BPoints (1)) N/A

Estimated Bond Recovery Rate (2)

Resulting Tolerable Default Rate (3)

explanations and definitions:

We calculate estimated default and recovery rates to be used in other credit models (f.i. for the valuation of CDOs or similar structures) as follows:
(1) Average Bond Spread: Average Spread of all bonds listed on page 2 of this report.
(2) Estimated Bond Recovery Rate: To calculate this rate we first divide the total debt amount into bond debt and loan debt that is senior to bond debt. As an
approximation for the total amount of bond debt we use the sum of the amounts outstanding of all bonds listed on page 1 of this report. The total debt figure is reduced
by this sum, giving us an approximate figure for debt that is senior to bond debt. We then calculate a collateral asset coverage figure for the bond debt by starting with
the Collateral Asset Value (as defined on page 5 of this report) which we reduce by the amount of senior debt ahead of the bonds. The remaining Collateral Asset Value
is then divided by the approximate bond debt amount as defined above, giving an estimated recovery value on a collateral asset basis. We apply the same logic to an
EBITDA multiple ratio (as on page 7 of this report) and get a second recovery estimate based on the EBITDA multiple. The higher of the 2 estimates is used as the
"Estimated Bond Recovery Rate".
(3) Resulting Tolerable Default Rate: The implied default rate calculated using the Market Spread (1) and the Estimated Recovery Rate (2). With the given Market
Spread and Estimated Recovery Rate it defines the maximum tolerable default probability for the risk premium paid in the form of Spread. Please note: This rate will
only be displayed when it is greater than 0% and lower than 30% as we believe it is not meaningful ('NM') out of this range.

Although we acknowledge that the calculated results are by no means exact, we think they make for a good estimate in the valuation of credit structures when individual
default and recovery rates for single issuers are to be used.

EUR in millions Q2 08 Q3 08 Q4 08 Q1 09 Q2 09 05 06 07 08
TANGIBLE NET WORTH ESTIMATE

06/30/09 12/31/08

Total Assets 3,612 3,559 3,075 2,897 2,759 2,256 2,552 2,966 3,075

Total Liabilites 2,756 2,338 2,001 1,940 1,821 1,933 1,752 2,121 2,001

Total Intangibles 227 239 236 239 222 15 32 198 236

Tangible Net Worth 629 982 838 718 716 308 767 647 838

Rent Debt (8x Annual Rental Expense) 559 559 559 559 559 490 531 559

Underfunded Pension & Post Ret. Liab. -173 -94 -171

Discount on Hard Assets 1,575 1,654 1,332 1,133 989 1,179 1,272 1,335 1,332

Adjusted Tangible Net Worth -1,504 -1,231 -1,052 -974 -832 -871 -1,168 -1,313 -1,224
11 Kloeckner & Co SE www.zerohedge.com
EUR in millions Q2 08 Q3 08 Q4 08 Q1 09 Q2 09 05 06 07 08

06/30/09 12/31/08

(CFO-Net Income)/Revenues -6.2% -18.5% 19.0% 34.8% 24.8% -0.6% -2.2% -1.6% -3.7%

yoy Revenue Growth 16.5% 12.0% -6.5% -34.0% -50.1% 11.5% 13.4% 7.6%

Gross Margin

Days Sales Outstanding 68 61 43 41 41 59 62 54 43

Days Sales of Inventory 66 71 54 45 42 51 56 56 54

Soft Assets 577 362 484 508 468 130 142 442 484
ACCOUNTING RED FLAGS

Unbilled Receivables - - - - - - - - -

Deferred / Unearned Revenue - - - - - - - - -

Allowance for Doubtful Accounts - - - - - - 33 - -

TTM Dividends Paid - - - - - 12 6 37 37

TTM Preferred Dividends - - 0 0 0 - 0 0 0

Net Change in Capital Stock 0 0 0 0 26 38 98 62 0

Non-Capex CFI (CFI less Capex) -121 375 -3 1 7 22 102 -318 120

Gross Margin yoy Revenue Growth (CFO-Net Income)/Revenues

40.0%

30.0%
35%
20.0%
25%
16.5%

19%
12.0%

11.5%

13.4%
10.0%
7.1%

0.0%

0.0%

0.0%

7.6%
0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%
0.0% 7%
-6.5%

3%
0% 0% 0% -1% -2%
-10.0% -4% -2% -4%
-34.0%

-7% -6%
-9%
-20.0%
-50.1%

-19%
-30.0%

-40.0%

-50.0%

-60.0%

Days Sales Outstanding Days Sales of Inventory

71
67

66
64
64

58
56

56
56
54

54
51
45

42
0

0
0

0
0

0
0

Q1 07 Q2 07 Q3 07 Q4 07 Q1 08 Q2 08 Q3 08 Q4 08 Q1 09 Q2 09 02 03 04 05 06 07 08

Auditor Information:

Current auditor KPMG HARTKOPF & RENTROP TREUHA (as of 3.3.2009)

Auditor's opinion Unqualified

Auditor's opinion - Definitions

Not Audited / Unaudited No tests were performed to verify amounts in financial statements. Typically applied to interim statement.

Partially audited Not all statements were audited. Auditor may specifically give opinion on one or two statements.

Unqualified Auditor declares, without reservation, that the financial statements fairly represent the company's financial position at
a point in time and that the statements conform in all material respects to GAAP.
Qualified: Limited Scope An aspect of the company's financial statements could not be verified, such as a portion of inventory not counted.

Qualified: Inconsistent Standards Accounting standards were not applied consistently between periods.

Qualified: not GAAP Standard accounting principles for the country were not followed. Typically related to a unique line item and uses the
phrase 'except for.'
Qualified: uncertainty Doubt exists related to a material balance sheet item, such as value of investment or collectability of major
receivable; or auditor doubts going concern ability of company. This opinion usually employs the phrase 'subject to.'

Disclaimer Auditor refuses to state opinion on financial statements, typically due to lack of sufficient documentation provided by
company and/or subsidiaries.
12 Kloeckner & Co SE www.zerohedge.com

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