Exh.

6
Exhibit 6
Rosario Acero S.A.
Forecast of Income Statement: Growth Financed with
The Privately-Placed Debt-and-Warrants Issue
Common Assumptions
Revenue growth rate
COGS/revenues
SG&A/revenues
Tax rate
Depreciation/gross fixed assets
Cash/revenues
Accts. receivable/revenues
Base lending rate

Income Statement
Revenues
Cost of goods sold
Selling, general, & administrative
Earnings before interest and taxes
Interest (notes and old loans)1
Interest (new loan @ 13%)
Profit before taxes
Taxes
Profit after taxes
Profit with extraordinary item
Earnings per share
Note 1:

10.30%
78.00%
13.00%
34.00%
5.60%
1.00%
20.00%
8.50%

Inventory/revenues
Other curr. assets/revenues
Gross fixed assets/revenues
Accts. payable/revenues
Other. curr. liabs./revenues
Interest rate
Change in deferred tax/taxes
Primary shares
Fully diluted shares
Actual
1996

1997

1998

$34.80
(27.65)
(3.96)
3.19

$38.38
(29.94)
(4.99)
3.45

$42.34
(33.02)
(5.50)
3.81

(1.10)

(0.73)
(0.98)
1.75
(0.59)
$1.15
$4.96

2.09
0.00
$2.09
$1.76
$7.57

Projected
1999

2000

2001

2002

$46.70
(36.43)
(6.07)
4.20

$51.51
(40.18)
(6.70)
4.64

$56.81
(44.32)
(7.39)
5.11

$62.67
(48.88)
(8.15)
5.64

(0.70)
(0.98)
2.13
(0.72)
$1.41

(0.65)
(0.98)
2.57
(0.88)
$1.70

(0.59)
(0.98)
3.07
(1.04)
$2.03

(0.51)
(0.98)
3.63
(1.23)
$2.40

(0.41)
(0.98)
4.26
(1.45)
$2.81

$6.04

$7.29

$8.70

$10.28

$12.06

The firm is assumed to borrow at base rate plus two percent, and lend at base rate less two percent.

Page 1

13.00%
1.00%
48.00%
14.00%
7.00%
10.00%
25.00%
233,000
273,000

Exhibit 7
Rosario Acero S.A.
Forecast of Balance Sheets: Growth Financed with
The Privately-Placed Debt-and-Warrants Issue

Actual
1996

1997

1998

$0.20
6.80
4.70
0.40
12.10

$0.38
7.68
4.99
0.38
13.43

$0.42
8.47
5.50
0.42
14.82

16.70
(2.50)
14.20
0.10
$26.40

18.42
(3.53)
14.89
0.10
$28.43

$4.80
4.60
2.30
11.70
9.80

Projected
1999

2000

2001

2002

$0.47
9.34
6.07
0.47
16.34

$0.52
10.30
6.70
0.52
18.03

$0.57
11.36
7.39
0.57
19.88

$0.63
12.53
8.15
0.63
21.93

20.32
(4.67)
15.65
0.10
$30.57

22.42
(5.93)
16.49
0.10
$32.93

24.72
(7.31)
17.41
0.10
$35.54

27.27
(8.84)
18.43
0.10
$38.42

30.08
(10.52)
19.56
0.10
$41.59

1.30
22.80

($0.76)
5.37
2.69
7.30
7.43
7.50
1.45
23.67

($0.84)
5.93
2.96
8.05
7.23
7.50
1.63
24.41

($0.81)
6.54
3.27
9.00
6.73
7.50
1.85
25.07

($1.00)
7.21
3.61
9.82
6.23
7.50
2.11
25.66

($1.44)
7.95
3.98
10.49
5.73
7.50
2.42
26.14

($2.17)
8.77
4.39
10.99
5.23
7.50
2.78
26.50

0.20
0.20
3.20
$26.40

0.20
0.20
4.35
$28.43

0.20
0.20
5.76
$30.57

0.20
0.20
7.46
$32.93

0.20
0.20
9.49
$35.54

0.20
0.20
11.88
$38.42

0.20
0.20
14.69
$41.59

Comparative ratios
EBIT/interest
EBIT/(interest + amort.)

2.90
1.93

2.03
0.36

2.27
1.95

2.58
2.00

2.96
2.06

3.45
2.11

4.08
2.16

Liabilities/equity
(Debt+notes)/equity

6.33
4.06

4.98
2.98

3.96
2.25

3.19
1.71

2.59
1.29

2.13
0.96

1.76
0.70

5.1%
49.0%

3.0%
24.3%

3.3%
22.8%

3.6%
21.6%

3.9%
20.5%

4.2%
19.5%

4.5%
18.6%

Balance sheet
Cash
Accounts receivable
Inventory
Other current assets
Total current assets
Gross fixed assets
Accumulated depreciation
Net fixed assets
Other assets
Total assets
Notes payable (or excess cash)
Accounts payable
Other current liabilities
Total current liabilities
Old long-term debt
New long-term debt
Deferred taxes
Total liabilities
Common stock
Paid-in surplus
Retained earnings
Total liabilities and equity

Profit/revenues
Profit/equity

Exh.9
Exhibit 9
Rosario Acero S.A.
Forecast of Income Statement:
Growth Financed with Equity
Shares Are Sold at $9.00 Each
Common Assumptions
Revenue growth rate
COGS/revenues
SG&A/revenues
Tax rate
Depreciation/gross fixed assets
Cash/revenues
Accts. receivable/revenues
Base lending rate

Income Statement
Revenues
Cost of goods sold
Selling, general, & administrative
Earnings before interest and taxes
Interest (on notes and old loans)1
Interest (new loan @ 13%)
Profit before taxes
Taxes
Profit after taxes
Profit with extraord. item
Earnings per share
Note 1:

10.30%
78.00%
13.00%
34.00%
5.60%
1.00%
20.00%
8.50%

Inventory/revenues
Other curr. assets/revenues
Gross fixed assets/revenues
Accts. payable/revenues
Other. curr. liabs./revenues
Interest rate
Change in deferred tax/taxes
1996 primary shares
1997+ primary shares
Actual
1996

1997

1998

$34.80
(27.65)
(3.96)
3.19

$38.38
(29.94)
(4.99)
3.45

$42.34
(33.02)
(5.50)
3.81

(1.10)

(0.68)
0.00
2.77
(0.94)
$1.83
$1.72

2.09
0.00
$2.09
$1.76
$7.57

Projected
1999

2000

2001

2002

$46.70
(36.43)
(6.07)
4.20

$51.51
(40.18)
(6.70)
4.64

$56.81
(44.32)
(7.39)
5.11

$62.67
(48.88)
(8.15)
5.64

(0.60)
0.00
3.21
(1.09)
$2.12

(0.50)
0.00
3.71
(1.26)
$2.45

(0.37)
0.00
4.26
(1.45)
$2.81

(0.23)
0.00
4.88
(1.66)
$3.22

(0.07)
0.00
5.57
(1.89)
$3.68

$1.99

$2.29

$2.64

$3.02

$3.45

The firm is assumed to borrow at base rate plus two percent, and lend at base rate less two percent.

Page 3

13.00%
1.00%
48.00%
14.00%
7.00%
10.00%
25.00%
233,000
1,066,333

Exhibit 10
Rosario Acero S.A.
Forecast of Free Cash Flows:
Growth Financed with Equity
Shares Are Sold at $9.00 Each
Actual
1996

1997

1998

Balance sheet
Cash
Accounts receivable
Inventory
Other current assets
Total current assets

$0.20
6.80
4.70
0.40
12.10

$0.38
7.68
4.99
0.38
13.43

$0.42
8.47
5.50
0.42
14.82

Gross fixed assets

Accumulated depreciation
Net fixed assets
Other assets
Total assets

16.70
(2.50)
14.20
0.10
26.40

18.42
(3.53)
14.89
0.10
$28.43

Notes payable (or excess cash)

Accounts payable
Other current liabilities
Total current liabilities
Old long-term debt
New long-term debt
Deferred taxes
Total liabilities

4.80
4.60
2.30
11.70
9.80

Projected
1999

2000

2001

2002

$0.47
9.34
6.07
0.47
16.34

$0.52
10.30
6.70
0.52
18.03

$0.57
11.36
7.39
0.57
19.88

$0.63
12.53
8.15
0.63
21.93

20.32
(4.67)
15.65
0.10
$30.57

22.42
(5.93)
16.49
0.10
$32.93

24.72
(7.31)
17.41
0.10
$35.54

27.27
(8.84)
18.43
0.10
$38.42

30.08
(10.52)
19.56
0.10
$41.59

1.30
22.80

($1.53)
5.37
2.69
6.54
7.43
0.00
1.54
15.50

($2.40)
5.93
2.96
6.49
7.23
0.00
1.81
15.52

($3.21)
6.54
3.27
6.59
6.73
0.00
2.12
15.44

($4.29)
7.21
3.61
6.53
6.23
0.00
2.49
15.24

($5.66)
7.95
3.98
6.27
5.73
0.00
2.90
14.89

($7.37)
8.77
4.39
5.79
5.23
0.00
3.37
14.39

0.20
0.20
3.20
$26.40

1.20
6.70
5.03
$28.43

1.20
6.70
7.15
$30.57

1.20
6.70
9.59
$32.93

1.20
6.70
12.41
$35.54

1.20
6.70
15.63
$38.42

1.20
6.70
19.30
$41.59

Comparative ratios
EBIT/interest
EBIT/(interest + amort.)

2.90
1.93

5.08
0.37

6.32
2.27

8.45
2.32

12.37
2.38

21.95
2.43

81.14
2.48

Liabilities/equity
(Debt+notes)/equity

6.33
4.06

1.20
0.46

1.03
0.32

0.88
0.20

0.75
0.10

0.63
0.00

0.53
-0.08

5.1%
49.0%

4.8%
14.2%

5.0%
14.1%

5.2%
14.0%

5.5%
13.8%

5.7%
13.7%

5.9%
13.5%

Common stock
Paid-in surplus
Retained earnings
Total liabilities and equity

Profit/revenues
Profit/equity

Exhibit 12
Rosario Acero
Selected 1995 Data on Publicly-Listed Peer Firms

Sales
Operating Margin
Net Income
Operating Margin/Sales
Net Income/Sales

AD
CSA
381.0 $
362.8 $
55.6
11.7
16.9
7.5
14.6%
3.2%
4.4%
2.1%

GA
VAZ
397.4 $
755.2
26
144.9
10.3
46.4
6.5%
19.2%
2.6%
6.1%

LT Debt/Capital (Book)
Total Debt/Capital (Book)
Total Debt/Equity (Book)
Market Equity/Book Equity
Total Debt/Equity (Market)

40%
57%
1.33
1.85
0.72

56%
66%
1.94
1.25
1.55

22%
40%
0.67
1.50
0.44

33%
37%
0.59
2.10
0.28

Dividend Payout Ratio

Dividend Yield

27%
3%

0%
0%

15%
3%

12%
1%

P/E Ratio
Beta
Unlevered Beta
Mean Unlevered Beta
Mean Unlevered Beta, without PI

9.5
1.35
0.92
0.85
0.79

15.9
1.05
0.52

11.3
1.00
0.77

15.0
1.15
0.97

PI
117.1
-1.1
-5.1
-0.9%
-4.4%
42%
65%
1.86
0.90
2.06
0%
0%
7.3
2.50
1.06