Valuation Report Skoda

VALUATION REPORT

SKODA AUTO


ŠKODA is one of the most tradition-rich automobile makers in the world. 117 ago, founders Václav Laurin and Václav Klement set up their business in the city Jungbunzlau, Bohemia, present-day Mladá Boleslav. It all began in 1894, when Václav Klement, a bookseller by trade, saw reason to complain about shoddy workmanship with his new bicycle. The fairly ruderesponse of the producer prompted Klement to repair bicycles himself, teaming up with cycle mechanic Václav Laurin, since December 1895. In the first years, Laurin & Klement build and repair bicycles under the Slavia brand name.

Four years later they started to build bicycles with an auxiliary engine, the so-called Motocyclette. This motorcycles soon became very popular and won several awardsin racing competitions. It was in the year 1905, when the company presented its first automobile, called “Voiturette A”. The success of the first car provided a stable position in the rapidly growing international car market. In 1925, fusion with the Škodaworks Pilsen was accomplished, marking the end of the Laurin & Klement company.   |
Since then the company lived an eventful history whichafter the political and economical changes of that times led to the integration into the Volkswagen Group in 1991. Today, ŠKODA is one of the most successful automobile brands, offering seven model lines and having established a presence in more than 100 countries worldwide. 

| | 2010 | 2011 |
Sales Growing | 100,0% | 15,1% |
Gross margin/Sales | 13,3% | 14,5% |
Opex/Sales | | 2,7% |1,9% |
Opex growing | na | -21,3% |
EBITDA/Sales | 11,6% | 12,7% |
ROS | | 4,0% | 6,4% |
ROE | | 12,1% | 20,2% |
RONA | | 7,8% | 12,6% |
CFO | | 23,659 | 28,821 |
| | | |

* About sales as we can see are growing, This growth is an indicator of the potential of the business. But rising sales are likely to mean a greater financial needs.

* Gross margin over salesgrew up from 13,3% to 14,5% between 2010-2011 probably due to an avantatge from competitors. The company is uprising the sales without sacrifiying margin, that is so positive.

* Opex greatly diminished, perhaps due to a decrease in salaries or other operating expenses. A consequence of this the EBITDA / sales up 11.6% to 12.7%. We won 22 performance points and 21 due to Opex 1 due to grossmargin.
* Financial expenses are growing at a moderate pace compared to sales growth. EBIT is much higher than the financial expenses which is a plus.

* On the return, we see that the net benefit increases of 8.83 to 16. Good sign. The CFO is almost 29 significant figure compared to long term debt and investments. Plus.

* ROS at around 6%. Gained by the sales growth. It's a good ROS.* ROE grew from 12.1% to 20.2%. Good result, especially compared to the interest rate.

* In short it is a growing company with a good margin, good benefits and good profitability (ROE).

| | | 2010 | 2011 |
Collection period | | 26 | 41 |
Days of inventory | | 28 | 27 |
NFO/Sales | | | -1,1% | -0,2% |
Leverage | | | 1,9 | 1,9 |
Debt/EBITDA | | 2,4 | 2,3 |Debt/Net income | | 6,9 | 4,5 |
WC | | | 31 | 38 |

* The main investments in 2011 are asset i customers. The main sources of funding are in this order: own resources, bank (short and long) and suppliers. They have also increased suppliers and short-term debt.

* The company has taken more credit for greatly increased investment in customer.

* The cash has decreased during2010-2011, is a point guard.

* The NOF has grown from year to year, and the toilet has grown slightly, and the difference has to be financed with short-term credit. Strong increase of NOF and less than fixed assets, that are financed with increased equity and debt and slight decrease in cash.

* Finally, the leverage has remained at 1.9, not to be alarmed. The debt / EBITDA is 2,3. moderate...