BAV Model v4.7

Courseware: #103-701
Contents
Overview and Instructions
Imported Financial Statements
Standardized Financial Statements
Accounting Adjustments
Ratio Analysis
Performance Charts
Assumptions
Pro Formas and Valuation
Overview
The purpose of the Business Analysis and Valuation Model (BAV Model) is to aid users
in analyzing and valuing any company with at least two years of historical financial
statement data. This program may be used in conjunction with the Business Analysis
& Valuation Using Financial Statements text, written by Professors Krishna Palepu,
Paul Healy, and Victor Bernard (Cincinnatti, OH: South-Western College Publishing, 2004).
Instructions links within this model

require the Internet Explorer browser.
Download a PDF version of Instructions with screenshots:

http://www.hbs.edu/it/pdf/bav_help.pdf
Technical Note
This workbook makes extensive use of macros. For these macros to be operational, your
security level must be set to 'medium', and you must select the 'enable macros' button when
the workbook is first opened. To check/adjust your security level, select Tools| Macro|
Security| Medium (level). If your security level is set to 'high', the workbook will not operate
correctly.
To open multiple copies of the model at the same time, each copy should be opened in a new
instance of Microsoft Excel (i.e. start Excel from the Start menu, then use File|Open… to open
the model). Excel allocates a fixed amount of memory for each launch, and multiple copies
of the model can easily require more memory than allocated by a single Excel instance,
resulting in 'Out of System Resources' errors.
The Business Analysis and Valuation Model was developed by Professor Paul Healy and
Professor Krishna Palepu with the assistance of Research Associate Jonathan Barnett.
Development assistance was provided by Village Software, Inc.
See BAV Navigator menu --> About BAV Model for software version number.
Please do not use without the authors' permission.
Copyright © 2002-2008 President and Fellows of Harvard College

Imported Income Statement
Initial Setup
Step 1:
If you have a Compustat WRDS account Download Company Financials from

If you do not have a Compustat account, fill in Compustat WRDS
the yellow cells and proceed to Step 2.
Company Name BLOUNT INTL INC

Ordering of Years on Financial Statements Ascending (Oldest First)
Latest Income Statement Year 2008
Earliest Income Statement Year 2000
Fiscal Year-End (Month, Day) December 31
Units $MM
Step 2: Select Valuation Type Equity Valuation
BLOUNT INTL INC

Change
Classifications Sign? Year Ended December 31, ($MM) 2000 2001 2002 2003 2004 2005 2006 2007 2008
Sales Sales 828.2 468.7 479.5 559.1 692.6 756.6 651.1 515.5 597.0
Cost of Sales Cost of Sales 558.5 297.9 304.6 356.0 444.1 500.9 429.4 322.9 377.9
Gross Profit 269.7 170.8 174.9 203.1 248.5 255.8 221.6 192.6 219.2
SG&A SG&A 137.8 95.5 91.5 105.7 118.9 118.9 111.2 89.8 104.3
Other Operating Expense Other Operating Expense 23.2 14.4 13.7 13.4 15.3 16.0 17.2 17.6 22.9
Operating Income 108.7 60.9 69.7 84.0 114.3 120.9 93.2 85.2 92.0
Investment Income Investment Income 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Other Income, net of Other Expense 6.7 -16.9 -7.4 -3.8 -39.9 -0.9 -3.4 -4.0 -1.3
Other Income Other Income 6.7 -16.9 -7.4 -3.8 -39.9 -0.9 -3.4 -4.0 -1.3
Other Expense Other Expense 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Net Interest Expense (Income) 98.2 94.5 71.1 65.4 59.0 36.7 35.4 33.1 27.1
Interest Income Interest Income 1.5 1.4 1.1 4.4 2.3 0.6 0.4 0.0 0.0
Interest Expense Interest Expense 99.7 95.9 72.2 69.8 61.3 37.3 35.8 33.1 27.1
Minority Interest Minority Interest 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Pre-Tax Income 17.2 -50.5 -8.8 14.8 15.4 83.3 54.4 48.2 63.6
Tax Expense Tax Expense 6.4 -18.4 -4.3 44.9 9.1 -23.3 16.4 16.0 24.8
Unusual Gains, Net of Unusual Losses

Unusual Gain (after tax) 0.0 -11.5 -1.2 0.0 0.0 0.0 4.5 10.7 -0.2
(after tax)
Net Income Net Income 10.8 -43.6 -5.7 -30.1 6.3 106.6 42.5 42.8 38.6
Preferred Dividends Preferred Dividends 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Net Income to Common 10.8 -43.6 -5.7 -30.1 6.3 106.6 42.5 42.8 38.6
Common Shares for

Shares Outstanding 30.8 30.8 30.8 30.8 36.4 46.1 47.2 47.3 47.5
Primary EPS Calculation
Page 2 of 26
BLOUNT INTL INC
Change
Page 3 of 26
BLOUNT INTL INC
Change
Page 4 of 26
Imported Balance Sheet
BLOUNT INTL INC

Change
Sign?
Classifications Year Beginning January 1, ($MM) 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
Assets
Cash and Marketable Securities Cash and Marketable Securities 4.8 47.6 26.4 35.2 48.6 12.9 27.6 57.6 58.3
Accounts Receivable Accounts Receivable 149.0 57.3 58.5 64.4 75.0 93.6 82.8 67.8 75.6
Inventory Inventory 150.7 68.1 64.8 67.7 81.1 85.3 77.8 70.3 90.3
Other Current Assets Other Current Assets 30.9 31.1 41.5 29.7 4.6 34.8 28.5 21.9 20.4
Total Current Assets 335.4 204.1 191.2 197.0 209.3 226.6 216.7 217.6 244.6
Long-Term Tangible Assets Long-Term Tangible Assets 177.4 96.2 90.7 92.0 97.9 101.5 99.7 89.7 119.8
Long-Term Intangible Assets Long-Term Intangible Assets 128.3 76.9 76.9 76.9 76.9 76.9 71.9 49.0 79.9
Other Long-Term Assets Other Long-Term Assets 62.8 67.6 69.2 38.1 40.6 50.2 42.2 55.6 55.4
Total Long-Term Assets 368.5 240.7 236.8 207.0 215.4 228.6 213.8 194.3 255.1
Total Assets Total Assets 703.9 444.8 428.0 404.0 424.7 455.2 430.5 412.0 499.7
Liabilities
Accounts Payable Accounts Payable 44.0 19.7 25.5 29.7 39.3 42.0 35.0 29.8 28.9
Short-Term Debt Short-Term Debt 8.5 8.5 3.4 6.6 3.2 2.4 1.5 1.2 32.0
Other Current Liabilities Other Current Liabilities 91.1 93.2 71.3 73.7 68.8 70.1 62.3 58.0 55.7
Total Current Liabilities 143.6 121.4 100.2 110.0 111.3 114.4 98.8 89.0 116.6
Long-Term Debt Long-Term Debt 824.5 632.5 624.1 603.9 491.0 405.4 349.4 295.8 293.5
Deferred Taxes - Long-term Liability Deferred Taxes 4.7 2.8 0.0 2.8 4.9 4.3 0.8 0.0 2.2
Other Long-Term Liabilities (non- Other Long-Term Liabilities

43.3 38.0 72.6 81.0 73.7 76.4 86.8 81.3 130.9
interest bearing) (non-interest bearing)
Total Long-Term Liabilities 872.5 673.3 696.7 687.7 569.6 486.0 436.9 377.1 426.6
Total Liabilities 1,016.1 794.7 796.9 797.7 680.9 600.4 535.8 466.1 543.2
Minority Interest Minority Interest 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Shareholders' Equity
Preferred Stock Preferred Stock 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Common Shareholders' Equity Common Shareholders' Equity -312.2 -349.9 -368.9 -393.7 -256.2 -145.2 -105.3 -54.2 -43.5
Total Shareholders' Equity -312.2 -349.9 -368.9 -393.7 -256.2 -145.2 -105.3 -54.2 -43.5
Total Liabilities and

703.9 444.8 428.0 404.0 424.7 455.2 430.5 412.0 499.7
Common Shares Outstanding

Shares Outstanding 30.8 30.8 30.8 30.8 45.0 47.0 47.2 47.3 47.6
at Fiscal Year End
Page 5 of 26
BLOUNT INTL INC

Change
Sign?
Page 6 of 26
BLOUNT INTL INC

Change
Sign?
Page 7 of 26
Imported Statement of Cash Flows
BLOUNT INTL INC

Change
Net Income Net Income 10.8 (43.6) (5.7) (30.1) 6.3 106.6 42.5 42.8 38.6
After-tax net interest expense (income) 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Non-operating losses (gains) Non-operating losses (gains) (5.9) 0.5 1.6 0.8 0.4 (0.4) (1.0) 0.7 (1.5)
Long-term operating accruals 25.9 47.4 13.8 67.5 71.5 (12.8) 31.5 20.5 31.3
Long-term operating accruals-depreciation and

Depreciation and amortization 32.7 0.0 22.2 0.0 0.0 0.0 0.0 0.0 28.6
amortization
Long-term operating accruals-other Other (6.8) 47.4 (8.4) 67.5 71.5 (12.8) 31.5 20.5 2.8
Operating cash flow before

30.8 4.3 9.7 38.2 78.2 93.5 73.0 64.0 68.4
working capital investments
Net (investments in) or liquidation of operating Net (investments in) or liquidation of

(1.0) 43.5 19.1 17.6 (2.4) (28.3) (13.0) (32.7) (7.2)
working capital operating working capital

29.8 47.8 28.8 55.8 75.8 65.1 60.0 31.3 61.2
investment in long-term assets
Net (investment in) or liquidation of operating long- Net (investment in) or liquidation of
(51.7) 189.1 (32.9) (17.1) (21.5) (19.0) 10.5 52.9 (87.1)
term assets operating long-term assets
Free cash flow available

(21.9) 236.9 (4.1) 38.7 54.3 46.2 70.5 84.2 (25.9)
to debt and equity
After-tax net interest expense (income) 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Net debt (repayment) or issuance Net debt (repayment) or issuance 16.6 (198.2) (16.9) (20.3) (124.0) (86.5) (56.9) (53.9) 28.5
Free cash flow available to equity (5.3) 38.7 (21.0) 18.4 (69.7) (40.3) 13.7 30.3 2.6
Dividend (payments) Dividend (payments) 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Net stock (repurchase), issuance, or other equity Net stock (repurchase), issuance,
(0.4) 4.1 (0.2) (9.6) 83.1 4.7 0.3 (0.5) (2.4)
changes or other equity changes
Net increase (decrease)

(5.7) 42.8 (21.2) 8.8 13.4 (35.6) 13.9 29.8 0.2
in cash balance
Page 8 of 26
BLOUNT INTL INC

Change
Page 9 of 26
BLOUNT INTL INC

Change
Page 10 of 26
Classification Lookup
Directions:
1. Select the financial statement (Income Statement, Balance Sheet, or Statement of Cash Flows) from the white
drop-down menu below.
2. Select the desired line-item classification heading(s) from the yellow shaded drop-down menu for examples of
financial statement line-items typically classified under that heading.
Income Statement
Please select Classification category here
Page 11 of 26
Classification Lookup
Income Statement
Please select Classification category here
Page 12 of 26
BLOUNT INTL INC

As Reported
Year Beginning January 1, ($MM) 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
Beginning Balance Sheet
Assets
Cash and Marketable Securities 0.0 4.8 47.6 26.4 35.2 48.6 12.9 27.6 57.6 58.3
Accounts Receivable 0.0 149.0 57.3 58.5 64.4 75.0 93.6 82.8 67.8 75.6
Inventory 0.0 150.7 68.1 64.8 67.7 81.1 85.3 77.8 70.3 90.3
Other Current Assets 0.0 30.9 31.1 41.5 29.7 4.6 34.8 28.5 21.9 20.4
Total Current Assets 0.0 335.4 204.1 191.2 197.0 209.3 226.6 216.7 217.6 244.6
Long-Term Tangible Assets 0.0 177.4 96.2 90.7 92.0 97.9 101.5 99.7 89.7 119.8
Long-Term Intangible Assets 0.0 128.3 76.9 76.9 76.9 76.9 76.9 71.9 49.0 79.9
Other Long-Term Assets 0.0 62.8 67.6 69.2 38.1 40.6 50.2 42.2 55.6 55.4
Total Long-Term Assets 0.0 368.5 240.7 236.8 207.0 215.4 228.6 213.8 194.3 255.1
Total Assets 0.0 703.9 444.8 428.0 404.0 424.7 455.2 430.5 412.0 499.7
Liabilities
Accounts Payable 0.0 44.0 19.7 25.5 29.7 39.3 42.0 35.0 29.8 28.9
Short-Term Debt 0.0 8.5 8.5 3.4 6.6 3.2 2.4 1.5 1.2 32.0
Other Current Liabilities 0.0 91.1 93.2 71.3 73.7 68.8 70.1 62.3 58.0 55.7
Total Current Liabilities 0.0 143.6 121.4 100.2 110.0 111.3 114.4 98.8 89.0 116.6
Long-Term Debt 0.0 824.5 632.5 624.1 603.9 491.0 405.4 349.4 295.8 293.5
Deferred Taxes 0.0 4.7 2.8 0.0 2.8 4.9 4.3 0.8 0.0 2.2
Other Long-Term Liabilities
0.0 43.3 38.0 72.6 81.0 73.7 76.4 86.8 81.3 130.9
(non-interest bearing)
Total Long-Term Liabilities 0.0 872.5 673.3 696.7 687.7 569.6 486.0 436.9 377.1 426.6
Total Liabilities 0.0 1,016.1 794.7 796.9 797.7 680.9 600.4 535.8 466.1 543.2
Minority Interest 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Preferred Stock 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Common Shareholders' Equity 0.0 -312.2 -349.9 -368.9 -393.7 -256.2 -145.2 -105.3 -54.2 -43.5
Total Shareholders' Equity 0.0 -312.2 -349.9 -368.9 -393.7 -256.2 -145.2 -105.3 -54.2 -43.5
Total Liabilities and
0.0 703.9 444.8 428.0 404.0 424.7 455.2 430.5 412.0 499.7
Common Shares Outstanding

0.0 30.8 30.8 30.8 30.8 45.0 47.0 47.2 47.3 47.6
at Fiscal Year End
BLOUNT INTL INC

As Reported
Year Ended December 31, ($MM) 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
Income Statement
Sales 828.2 468.7 479.5 559.1 692.6 756.6 651.1 515.5 597.0
Cost of Sales 558.5 297.9 304.6 356.0 444.1 500.9 429.4 322.9 377.9
Page 13 of 26
Gross Profit 269.7 170.8 174.9 203.1 248.5 255.8 221.6 192.6 219.2
SG&A 137.8 95.5 91.5 105.7 118.9 118.9 111.2 89.8 104.3
Other Operating Expense 23.2 14.4 13.7 13.4 15.3 16.0 17.2 17.6 22.9
Operating Income 108.7 60.9 69.7 84.0 114.3 120.9 93.2 85.2 92.0
Investment Income 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Other Income, net of Other Expense 6.7 (16.9) (7.4) (3.8) (39.9) (0.9) (3.4) (4.0) (1.3)
Other Income 6.7 (16.9) (7.4) (3.8) (39.9) (0.9) (3.4) (4.0) (1.3)
Other Expense 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Net Interest Expense (Income) 98.2 94.5 71.1 65.4 59.0 36.7 35.4 33.1 27.1
Interest Income 1.5 1.4 1.1 4.4 2.3 0.6 0.4 0.0 0.0
Interest Expense 99.7 95.9 72.2 69.8 61.3 37.3 35.8 33.1 27.1
Minority Interest 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Pre-Tax Income 17.2 (50.5) (8.8) 14.8 15.4 83.3 54.4 48.2 63.6
Tax Expense 6.4 (18.4) (4.3) 44.9 9.1 (23.3) 16.4 16.0 24.8
Unusual Gains, Net of Unusual
0.0 (11.5) (1.2) 0.0 0.0 0.0 4.5 10.7 (0.2)
Losses (after tax)
Net Income 10.8 (43.6) (5.7) (30.1) 6.3 106.6 42.5 42.8 38.6
Preferred Dividends 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Net Income to Common 10.8 (43.6) (5.7) (30.1) 6.3 106.6 42.5 42.8 38.6
Common Shares for

30.8 30.8 30.8 30.8 36.4 46.1 47.2 47.3 47.5
Primary EPS Calculation
BLOUNT INTL INC

As Reported
Statement of Cash Flows
Net Income 10.8 (43.6) (5.7) (30.1) 6.3 106.6 42.5 42.8 38.6
After-tax net interest expense
61.7 60.1 36.4 (133.0) 24.1 47.0 24.8 22.1 16.5
(income)
Non-operating losses (gains) (5.9) 0.5 1.6 0.8 0.4 (0.4) (1.0) 0.7 (1.5)
Long-term operating accruals 25.9 47.4 13.8 67.5 71.5 (12.8) 31.5 20.5 31.3
Depreciation and amortization 32.7 0.0 22.2 0.0 0.0 0.0 0.0 0.0 28.6
Other (6.8) 47.4 (8.4) 67.5 71.5 (12.8) 31.5 20.5 2.8
92.5 64.4 46.1 (94.8) 102.3 140.4 97.8 86.1 84.9
working capital investments
Net (investments in) or liquidation of

(1.0) 43.5 19.1 17.6 (2.4) (28.3) (13.0) (32.7) (7.2)
operating working capital

investment in long-term 91.5 107.9 65.2 (77.2) 99.9 112.1 84.8 53.4 77.7
assets
Page 14 of 26
Net (investment in) or liquidation of

(51.7) 189.1 (32.9) (17.1) (21.5) (19.0) 10.5 52.9 (87.1)
operating long-term assets

39.8 297.0 32.3 (94.3) 78.4 93.2 95.3 106.3 (9.4)
to debt and equity
After-tax net interest expense

61.7 60.1 36.4 (133.0) 24.1 47.0 24.8 22.1 16.5
(income)
Net debt (repayment) or issuance 16.6 (198.2) (16.9) (20.3) (124.0) (86.5) (56.9) (53.9) 28.5
(5.3) 38.7 (21.0) 18.4 (69.7) (40.3) 13.7 30.3 2.6
to equity
Dividend (payments) 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Net stock (repurchase), issuance,
(0.4) 4.1 (0.2) (9.6) 83.1 4.7 0.3 (0.5) (2.4)
or other equity changes
Net increase (decrease)

(5.7) 42.8 (21.2) 8.8 13.4 (35.6) 13.9 29.8 0.2
in cash balance
Page 15 of 26
BAV Identities
BLOUNT INTL INC

Beginning Balance Sheet & Identities
I. Net Working Capital
Accounts Receivable 0.0 149.0 57.3 58.5 64.4 75.0 93.6 82.8 67.8 75.6
+ Inventory 0.0 150.7 68.1 64.8 67.7 81.1 85.3 77.8 70.3 90.3
+ Other Current Assets 0.0 30.9 31.1 41.5 29.7 4.6 34.8 28.5 21.9 20.4
- Accounts Payable 0.0 44.0 19.7 25.5 29.7 39.3 42.0 35.0 29.8 28.9
- Other Current Liabilities 0.0 91.1 93.2 71.3 73.7 68.8 70.1 62.3 58.0 55.7
= Beginning Net Working Capital 0.0 195.5 43.6 68.0 58.4 52.6 101.6 91.7 72.2 101.7
II. Net Long-Term Assets
Long-term Tangible Assets 0.0 177.4 96.2 90.7 92.0 97.9 101.5 99.7 89.7 119.8
+ Long-term Intangible Assets 0.0 128.3 76.9 76.9 76.9 76.9 76.9 71.9 49.0 79.9
+ Other Long-Term Assets 0.0 62.8 67.6 69.2 38.1 40.6 50.2 42.2 55.6 55.4
- Minority Interest 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
- Deferred Taxes 0.0 4.7 2.8 0.0 2.8 4.9 4.3 0.8 0.0 2.2
- Other Long-Term Liabilities
(non-interest bearing) 0.0 43.3 38.0 72.6 81.0 73.7 76.4 86.8 81.3 130.9
= Beginning Net Long-Term Assets 0.0 320.5 199.9 164.2 123.2 136.8 148.0 126.2 113.0 122.1
III. Total Assets

Beginning Net Working Capital 0.0 195.5 43.6 68.0 58.4 52.6 101.6 91.7 72.2 101.7
+ Beginning Net Long-Term Assets 0.0 320.5 199.9 164.2 123.2 136.8 148.0 126.2 113.0 122.1
= Beginning Net Assets 0.0 516.0 243.5 232.2 181.6 189.4 249.6 217.9 185.3 223.7
IV. Total Net Capital
Short-term Debt 0.0 8.5 8.5 3.4 6.6 3.2 2.4 1.5 1.2 32.0
+ Long-term Debt 0.0 824.5 632.5 624.1 603.9 491.0 405.4 349.4 295.8 293.5
- Cash 0.0 4.8 47.6 26.4 35.2 48.6 12.9 27.6 57.6 58.3
= Beginning Net Debt 0.0 828.2 593.4 601.1 575.3 445.6 394.8 323.2 239.4 267.2
+ Beginning Preferred Stock 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
+ Beginning Common Shareholders' Equity 0.0 -312.2 -349.9 -368.9 -393.7 -256.2 -145.2 -105.3 -54.2 -43.5
= Beginning Total Net Capital 0.0 516.0 243.5 232.2 181.6 189.4 249.6 218.0 185.3 223.7
BLOUNT INTL INC

Income Statement & Identities
Year Ended December 31, ($MM) 2000 2001 2002 2003 2004 2005 2006 2007 2008
Sales 828.2 468.7 479.5 559.1 692.6 756.6 651.1 515.5 597.0
Net Operating Profit after Tax (NOPAT): 72.5 16.5 30.7 -163.1 30.4 153.6 67.3 64.9 55.1
- Net Interest Expense after Tax 61.7 60.1 36.4 -133.0 24.1 47.0 24.8 22.1 16.5
= Net Income 10.8 -43.6 -5.7 -30.1 6.3 106.6 42.5 42.8 38.6
- Preferred Dividends 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
= Net Income to Common 10.8 -43.6 -5.7 -30.1 6.3 106.6 42.5 42.8 38.6
I. Net Interest Expense after Tax
Page 16 of 26
BAV Identities
Interest Expense 99.7 95.9 72.2 69.8 61.3 37.3 35.8 33.1 27.1
- Interest Income 1.5 1.4 1.1 4.4 2.3 0.6 0.4 0.0 0.0
= Net Interest Expense (Income) 98.2 94.5 71.1 65.4 59.0 36.7 35.4 33.1 27.1
x (1- Tax/Pre-Tax Income) 0.628 0.636 0.511 -2.034 0.409 1.280 0.700 0.667 0.611
= Net Interest Expense after Tax 61.7 60.1 36.4 -133.0 24.1 47.0 24.8 22.1 16.5
II. Net Operating Profit after Tax (NOPAT)
Net Income 10.8 -43.6 -5.7 -30.1 6.3 106.6 42.5 42.8 38.6
+ Net Interest Expense after Tax 61.7 60.1 36.4 -133.0 24.1 47.0 24.8 22.1 16.5
= Net Operating Profit after Tax 72.5 16.5 30.7 -163.1 30.4 153.6 67.3 64.9 55.1
- Unusual Gains, Net of Unusual Losses (after tax) 0.0 -11.5 -1.2 0.0 0.0 0.0 4.5 10.7 -0.2
= Net Operating Profit 72.5 28.0 31.9 -163.1 30.4 153.6 62.8 54.2 55.4
excluding Unusual Gains,
Net of Unusual Losses (after tax)
Page 17 of 26
Condensed Financial Statements
BLOUNT INTL INC

Beginning Net Working Capital 0.0 195.5 43.6 68.0 58.4 52.6 101.6 91.7 72.2 101.7
+ Beginning Net Long-Term Assets 0.0 320.5 199.9 164.2 123.2 136.8 148.0 126.2 113.0 122.1
= Total Assets 0.0 516.0 243.5 232.2 181.6 189.4 249.6 217.9 185.3 223.7
Beginning Net Debt 0.0 828.2 593.4 601.1 575.3 445.6 394.8 323.2 239.4 267.2
+ Beginning Preferred Stock 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
+ Beginning Shareholders' Equity 0.0 -312.2 -349.9 -368.9 -393.7 -256.2 -145.2 -105.3 -54.2 -43.5
= Total Net Capital 0.0 516.0 243.5 232.2 181.6 189.4 249.6 218.0 185.3 223.7
BLOUNT INTL INC

Income Statement
Sales 828.2 468.7 479.5 559.1 692.6 756.6 651.1 515.5 597.0
Net Operating Profit after Tax 72.5 16.5 30.7 -163.1 30.4 153.6 67.3 64.9 55.1
- Net Interest Expense after Tax 61.7 60.1 36.4 -133.0 24.1 47.0 24.8 22.1 16.5
= Net Income 10.8 -43.6 -5.7 -30.1 6.3 106.6 42.5 42.8 38.6
- Preferred Stock Dividends 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
= Net Income to Common 10.8 -43.6 -5.7 -30.1 6.3 106.6 42.5 42.8 38.6
Operating ROA 3.2% 12.6% -70.2% 16.8% 81.1% 27.0% 29.8% 29.8%
ROE 14.0% 1.6% 8.2% -1.6% -41.6% -29.3% -40.7% -71.3%
BV of Assets Growth Rate -52.8% -4.6% -21.8% 4.3% 31.8% -12.7% -15.0% 20.8%
BV of Equity Growth Rate 12.1% 5.4% 6.7% -34.9% -43.3% -27.5% -48.6% -19.6%
Net Operating Asset Turnover ratio 0.9 2.0 2.4 3.8 4.0 2.6 2.4 3.2
Page 18 of 26
Ratio Analysis
BLOUNT INTL INC

Please choose calculation method: Beginning Balance Sheet values
DECOMPOSING PROFITABILITY: DUPONT ALTERNATIVE 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
NOPAT / Sales 8.7% 3.5% 6.4% -29.2% 4.4% 20.3% 10.3% 12.6% 9.2%
x Sales / Net Assets 0.91 1.97 2.41 3.81 3.99 2.61 2.37 3.22
= Operating ROA 3.2% 12.6% -70.2% 16.8% 81.1% 27.0% 29.8% 29.8%
Spread -4.1% 6.5% -48.1% 12.6% 70.6% 20.7% 23.0% 22.9%
x Net Financial Leverage -2.65 -1.70 -1.63 -1.46 -1.74 -2.72 -3.07 -4.42 -6.14
= Financial Leverage Gain 10.8% -11.0% 78.4% -18.4% -122.7% -56.3% -70.5% -101.1%
ROE (Operating ROA + Spread * Net Financial Leverage) 14.0% 1.6% 8.2% -1.6% -41.6% -29.3% -40.7% -71.3%
EVALUATING OPERATING MANAGEMENT 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
Key Growth Rates:

Annual Sales Growth NA* -43.4% 2.3% 16.6% 23.9% 9.2% -14.0% -20.8% 15.8%
Annual Net Income Growth NA -503.7% -86.9% 428.1% -120.9% 1592.4% -60.1% 0.7% -9.9%
Key Profitability Ratios:

Sales / Sales 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%
Cost of Sales / Sales 67.4% 63.6% 63.5% 63.7% 64.1% 66.2% 66.0% 62.6% 63.3%
Gross Margin 32.6% 36.4% 36.5% 36.3% 35.9% 33.8% 34.0% 37.4% 36.7%
SG&A / Sales 16.6% 20.4% 19.1% 18.9% 17.2% 15.7% 17.1% 17.4% 17.5%
Other Operating Expense / Sales 2.8% 3.1% 2.9% 2.4% 2.2% 2.1% 2.6% 3.4% 3.8%
Investment Income / Sales 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
Other Income, net of Other Expense / Sales 0.8% -3.6% -1.5% -0.7% -5.8% -0.1% -0.5% -0.8% -0.2%
Minority Interest / Sales 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
EBIT Margin 13.9% 9.4% 13.0% 14.3% 10.7% 15.9% 13.8% 15.8% 15.2%
Net Interest Expense (Income) / Sales 11.9% 20.2% 14.8% 11.7% 8.5% 4.9% 5.4% 6.4% 4.5%
Pre-Tax Income Margin 2.1% -10.8% -1.8% 2.6% 2.2% 11.0% 8.4% 9.3% 10.7%
Taxes / Sales 0.8% -3.9% -0.9% 8.0% 1.3% -3.1% 2.5% 3.1% 4.1%
Unusual Gains, Net of Unusual Losses (after tax) / Sales 0.0% -2.5% -0.3% 0.0% 0.0% 0.0% 0.7% 2.1% 0.0%
Net Income Margin 1.3% -9.3% -1.2% -5.4% 0.9% 14.1% 6.5% 8.3% 6.5%
EBITDA Margin 17.9% 9.4% 17.6% 14.3% 10.7% 15.9% 13.8% 15.8% 20.0%
NOPAT Margin 8.7% 3.5% 6.4% -29.2% 4.4% 20.3% 10.3% 12.6% 9.2%
Recurring NOPAT Margin 8.2% 8.3% 7.4% -30.6% 6.8% 20.5% 10.0% 11.0% 9.4%
EVALUATING INVESTMENT MANAGEMENT 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
Working Capital Management:

Operating Working Capital / Sales 41.7% 9.1% 12.2% 8.4% 7.0% 15.6% 17.8% 12.1%
Operating Working Capital Turnover 2.40 11.00 8.22 11.86 14.38 6.41 5.62 8.26
Accounts Receivable Turnover 3.15 8.37 9.56 10.75 10.09 6.96 6.23 8.80
Inventory Turnover 1.98 4.47 5.49 6.56 6.18 5.04 4.15 5.38
Accounts Payable Turnover 6.77 15.46 13.96 14.95 12.75 10.23 9.23 12.68
Page 19 of 26
Ratio Analysis
BLOUNT INTL INC

Please choose calculation method: Beginning Balance Sheet values
Days' Receivables 116.03 43.62 38.19 33.94 36.18 52.47 58.59 41.46
Days' Inventory 184.64 81.60 66.44 55.64 59.10 72.47 87.97 67.87
Days' Payables 53.91 23.61 26.14 24.41 28.64 35.67 39.54 28.78
Long-Term Asset Management:

Net Long-Term Assets Turnover 1.46 2.40 3.40 5.62 5.53 4.40 4.08 5.28
Net Long-Term Assets / Sales 68.4% 41.7% 29.4% 17.8% 18.1% 22.7% 24.5% 18.9%
PP&E Turnover 2.64 4.98 6.16 7.53 7.73 6.41 5.17 6.65
Depreciation & Amortization / Sales 3.9% 0.0% 4.6% 0.0% 0.0% 0.0% 0.0% 0.0% 4.8%
EVALUATING FINANCIAL MANAGEMENT 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
Short-Term Liquidity:
Current Ratio 2.34 1.68 1.91 1.79 1.88 1.98 2.19 2.44 2.10
Quick Ratio 1.07 0.86 0.85 0.91 1.11 0.93 1.12 1.41 1.15
Cash Ratio 0.03 0.39 0.26 0.32 0.44 0.11 0.28 0.65 0.50
Operating Cash Flow Ratio 0.75 0.54 -0.77 0.91 1.01 0.74 0.54 0.87
Debt and Long-Term Solvency:

Liabilities-to-Equity -3.25 -2.27 -2.16 -2.03 -2.66 -4.14 -5.09 -8.61 -12.48
Debt-to-Equity -2.67 -1.83 -1.70 -1.55 -1.93 -2.81 -3.33 -5.48 -7.48
Net-Debt-to-Equity -2.65 -1.70 -1.63 -1.46 -1.74 -2.72 -3.07 -4.42 -6.14
Debt-to-Capital 1.60 2.20 2.43 2.82 2.08 1.55 1.43 1.22 1.15
Net-Debt-to-Net Capital 1.61 2.44 2.59 3.17 2.35 1.58 1.48 1.29 1.19
Interest Coverage Ratio:

Interest Coverage 1.17 0.35 0.86 1.21 1.25 3.23 2.65 2.78 3.34
Payout Ratio:
Dividend Payout Ratio n/a n/a n/a n/a n/a n/a n/a n/a n/a
Sustainable Growth Rate: 14.0% 1.6% 8.2% -1.6% -41.6% -29.3% -40.7% -71.3%
* NA - not available, n/a - not applicable
Page 20 of 26
Key Assumptions
BLOUNT INTL INC
Note: All yellow-shaded cells require input (including those preset to zero). If the appropriate
value for a blank input cell is zero, enter 0. Inputs are optional for gray-shaded cells.
Historical Ratios Historical Ratios Forecast Horizon Terminal Years
Year Ended December 31, ($MM) 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Assumptions for years 1-15: Note: Only the most recent historical years reflect accounting adjustments that have been made.
Sales growth rate -43.4% 2.3% 16.6% 23.9% 9.2% -14.0% -20.8% 15.8% 0.0% 0.0%
Net operating profits after tax / sales 8.7% 3.5% 6.4% -29.2% 4.4% 20.3% 10.3% 12.6% 9.2% 0.0% 0.0%
Beginning net operating working capital / sales 41.7% 9.1% 12.2% 8.4% 7.0% 15.6% 17.8% 12.1% 0.0% 0.0%
Beginning net operating long-term assets / sales 68.4% 41.7% 29.4% 17.8% 18.1% 22.7% 24.5% 18.9% 0.0% 0.0%
Assumptions for year 16 and beyond:

Sales growth rate
Net operating profit after tax / sales
Beginning net operating working capital / sales
Beginning net operating long-term assets / sales
Book Value Leverage (beginning of year)

Net debt / book value of net capital 160.5% 243.7% 258.9% 316.8% 235.3% 158.2% 148.3% 129.2% 119.5%
Preferred equity / book value of net capital 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
Shareholders' equity / book value of net capital -60.5% -143.7% -158.9% -216.8% -135.3% -58.2% -48.3% -29.2% -19.5%
0.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%
Market Value Leverage (beginning of year)
Net debt / market value of net capital 119.5%

Preferred equity / market value of net capital 0.0%
Shareholders' equity / market value of net capital -19.5%
100.0%
Cost of Capital parameters:

Market risk premium
Risk free rate
Tax rate
Cost of debt
Cost of preferred equity (if applicable)
Implied debt beta
Implied preferred equity beta
Common equity beta
Implied asset beta 0.00
After tax cost of debt 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
Cost of common equity 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
Number of Common shares outstanding 47.6
Key Assumptions Message Center:
Please update blank Cost of Capital cells.
Page 21 of 26
Performance Charts
HISTORIC and FORECAST CHARTS for BLOUNT INTL INC

Return to BAV Dashboard
10-Year Historic Performance of Comparable U.S. Firms(1)
70% Sales Growth 50% 10-Year Historic Sales Growth for Comparable U.S. Firms
60% -80%
-210%
50%
-340%
40%
-470%
Annual Sales Growth
Annual Sales Growth

30%
-600%
20% -730% View Company's Historic Performance
10% -860% View Company's Pro Forma Performance
0% -990% View Historic Performance of US Companies
-10% -1120%
-20% -1250%
-30% -1380%
-1510%
2000
2001
1 2 3 4 5 6 7 8 9 10
Year Year
25% -85%
20% -245%
15% -405%
10% -565%
Net Operating Profit after Tax (NOPAT) Margin 10-Year Historic NOPAT Margin for Comparable U.S. Firms
5% -725%
0% -885%
Net Operating Profit after Tax/ Sales

-5% -1045%
Net Operating Profit after Tax /
-10% -1205%
-15% -1365%
-20% -1525%
-25% -1685%
-30% -1845%
Sales
-35% -2005%
1 2 3 4 5 6 7 8 9 10
2000
2001
Year Year
7.0
7.0
6.5
6.5
6.0
5.5 6.0
5.0 5.5
4.5 5.0
4.0 4.5
3.5 4.0
3.0 Historic Net Operating Asset Turnover 3.5 10-Year Historic Net Operating Asset Turnover for Comparable U.S. Firms
2.5
3.0
2.0
2.5
1.5
1.0 2.0
1.5
Sales / Net Operating Assets
Sales / Net Operating Assets
0.5
0.0 1.0
2000
2001
0.5
0.0
Year Year
40% 500%
30% 0%
20%
-500%
10%
-1000%
0%
-10% -1500%
-20% -2000%
-30% -2500%
-40%
-3000%
-50%
-3500%
2000
2001
1 2 3 4 5 6 7 8 9 10
Operating Return-on-Assets (ROA) 10-Year Historic Operating ROA for Comparable U.S. Firms
Net Operating Profit after
Net Operating Profit after

Tax / Net Assets
Tax / Net Assets
40%
500%
30%
0%
20%
10% -500%
0% -1000%
-10% Year -1500% Year
-20% -2000%
-30%
-2500%
-40%
-50% -3000%
-60% -3500%
2000
2001
-4000%
1 2 3 4 5 6 7 8 9 10
Return-on-Equity (ROE) 10-Year Historic ROE for Comparable U.S. Firms

Net Income / Beginning
Net Income / Beginning

Year Year
(1) Herein, comparable firms are defined as all publicly traded U.S. firms between the years 1984 and 2001, whose measure of interest (e.g., sales growth, NOPAT margin, ROE, etc.)
resides within the same quintile as BLOUNT INTL INC (for which the measure was taken in the latest income statement year).
Page 22 of 26
Pro Formas & Valuation
PRO FORMA FINANCIAL STATEMENTS

Return to BAV Dashboard
BLOUNT INTL INC Historical Forecast Horizon Terminal Years
Year Ended December 31, ($MM) 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

Beg. Net Working Capital 92 72 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
+ Beg. Net Long-Term Assets 126 113 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
= Net Operating Assets 218 185 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Net Debt 323 239 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

+ Preferred Stock 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
+ Shareholders' Equity -105 -54 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
= Net Capital 218 185 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Income Statement
Sales 516 597 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Net operating profits after tax 65 55 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
- Net interest expense after tax 22 17 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
= Net income 43 39 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
- Preferred dividends 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
= Net income to common 43 39 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Operating Return on Assets 29.8% 29.8% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
Return on Common Equity -40.7% -71.3% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
Book Value of Assets Growth Rate -12.7% -15.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
Book Value of Common Equity Growth Rate -27.5% -48.6% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
Net Operating Asset Turnover 2.4 3.2 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Free Cash Flow to Equity 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Discount Factor - Common Equity 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00
Book Value of Equity Growth Factor (cumulative) 1.00
Cost of Common Equity 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
BLOUNT INTL INC Forecast Horizon Terminal Years
Year Ended December 31, ($MM) 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
DCF Valuation of the Equity
Net Income to Common 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

- Investment in Net Working Capital 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
- Investment in Net Long-Term Assets 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
+ Increase in debt obligations 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
+ Increase in preferred equity 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
= Free Cash Flow to Equity 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
* Discount factor - Common Equity (CAPM) 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00
= Present value of Free Cash Flow to Equity 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
PV of FCF to Equity (years 1-15) 0

+PV of FCF to Equity beyond Year 15
= Value of the Equity 0.0
Number of shares outstanding (MM) 47.6
Estimated value per share 0.00
Abnormal Earnings Valuation of the Equity
Net Income to Common 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

- Charge for Common Equity Capital 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
= Residual Operating Income 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
* Discount factor - Common Equity 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00
= Present Value of Residual Operating Income 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
PV of Residual Operating Income (years 1-15) 0

+ PV of Residual Operating Income beyond Year 15
+ Beg. Book Value of Equity
Number of shares outstanding (MM) 48
Page 23 of 26
Pro Formas & Valuation
Abnormal Returns Valuation of the Equity
Return on Common Equity 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
- Cost of Common Equity 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
= Abnormal Returns 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
* Discount Factor - Common Equity 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00
* Book Value of Equity Growth Factor 1.00
= Present Value of Abnormal Return on Common Equity
Beg. Book Value of Common Equity

* PV of Abnormal ROE (years 1-15)
+ Beg. Book Value of Common Equity
* PV of Abnormal ROE beyond year 15
+ Beg. Book Value of Common Shareholders' Equity
Implied Market to Book Value Ratio
Number of shares outstanding (MM) 48
Page 24 of 26
Valuation Summary
Reminders:
Table 1. Valuation Summary-Equity Valuation
Valuation Summary: BLOUNT INTL INC
($MM) Equity Value Equity Value

per share
Discounted Cash Flows $0.0 $0.00
Abnormal Earnings $0.0 $0.00
Abnormal Returns $0.0 $0.00

See Key Assumptions Message Center below.
Table 2. Accounting Adjustments and Summary of Effects on BLOUNT INTL INC 's 2008 Financial Statements:
Accounting Adjustments Effect on: As Reported Adjusted Difference

($MM)
Net Income to Common $38.60 $38.60 $0.00
Beginning Book Value of Common

($54.15) ($54.15) $0.00
Return on Common Equity (ROE) -71.28% -71.28% 0.00%
NO ADJUSTMENTS RECORDED
Table 3. Key Assumptions (Note: Assumptions cannot be modified in this worksheet.

To further revise assumptions, please return to the Key Assumptions sheet.)
BLOUNT INTL INC Historical Ratios Forecast Horizon Terminal Years
Year Ended December 31, ($MM) 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Assumptions for years 1-15:

Sales growth rate -20.8% 15.8%
Net operating profits after tax / sales 12.6% 9.2%
Beginning net operating working capital / sales 17.8% 12.1%
Beginning net operating long-term assets / sales 24.5% 18.9%
Assumptions for year 16 and beyond:

Sales growth rate
Net operating profit after tax / sales
Beginning net operating working capital / sales
Beginning net operating long-term assets / sales
Book Value Leverage (beginning of year)

Net debt / book value of net capital 148.3% 129.2% 119.5%
Preferred equity / book value of net capital 0.0% 0.0% 0.0%
Shareholders' equity / book value of net capital -48.3% -29.2% -19.5%
100.0% 100.0% 100.0%
Market Value Leverage (beginning of year)

Net debt / market value of net capital 119.5%
Preferred equity / market value of net capital 0.0%
Shareholders' equity / market value of net capital -19.5%
100.0%
Cost of Capital parameters:

Market risk premium
Risk free rate
Tax rate
Cost of debt
Cost of Preferred equity (if applicable)
Implied Debt Beta
Implied Preferred Equity Beta
Common Equity Beta
Implied asset beta 0.00
After tax cost of debt 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
Cost of common equity 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
Pro Forma ROE -40.7% -71.3% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
Number of Common shares outstanding 47.6
Key Assumptions Message Center:
Please update blank Cost of Capital cells.
Page 25 of 26
Valuation Summary
Table 4. Valuation Summary, all stored scenarios for BLOUNT INTL INC :
($MM) Equity Value Equity Value

per share
Scenario 1

Scenario 2

Scenario 3

Scenario 4

Scenario 5

Page 26 of 26

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BLOUNT INTL INC

Unusual Gains, Net of Unusual Losses

Common Shares for

BLOUNT INTL INC

Other Long-Term Liabilities (non- Other Long-Term Liabilities

Total Liabilities and

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BLOUNT INTL INC

BLOUNT INTL INC

BLOUNT INTL INC

Long-term operating accruals-depreciation and

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BLOUNT INTL INC

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BLOUNT INTL INC

Common Shares Outstanding

BLOUNT INTL INC

Common Shares for

BLOUNT INTL INC

Net (investments in) or liquidation of

Operating cash flow before

Net (investment in) or liquidation of

Free cash flow available

After-tax net interest expense

Net increase (decrease)

BLOUNT INTL INC

II. Net Long-Term Assets

III. Total Assets

IV. Total Net Capital

BLOUNT INTL INC

I. Net Interest Expense after Tax

II. Net Operating Profit after Tax (NOPAT)

BLOUNT INTL INC

Beginning Balance Sheet

BLOUNT INTL INC

BLOUNT INTL INC

Key Growth Rates:

Key Profitability Ratios:

Working Capital Management:

BLOUNT INTL INC

Long-Term Asset Management:

Debt and Long-Term Solvency:

Interest Coverage Ratio:

* NA - not available, n/a - not applicable

BLOUNT INTL INC

Historical Ratios Historical Ratios Forecast Horizon Terminal Years

Assumptions for year 16 and beyond:

Book Value Leverage (beginning of year)

Net debt / market value of net capital 119.5%