SCHEDULE D - DISCOUNTED FUTURE RETURNS APPROACH
BIOTECHNICA INTERNATIONAL, INC.
Dividend Discount Model
For the Years Ended June 30,
1999 2000 2001 2002 2003
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NET SALES $22,835,000 $24,433,000 $26,143,000 $27,973,000 $29,931,000
TERMINAL VALUE AS OF 9/21/03 (0.3 x 6/30/03 net sales) $8,979,300
DIVIDENDS $0 $0 $0 $0 $0
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CASH FLOW RECEIVED BY SHAREHOLDERS $0 $0 $0 $0 $8,979,300
Present value factor 0.87719 0.76947 0.67497 0.59208 0.51937
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PRESENT VALUE OF CASH FLOW $0 $0 $0 $0 $4,663,567
PRESENT VALUE OF CASH FLOW $4,663,567
Number of shares @ 9/21/98 103,055,577
Present value per share @ 9/21/98 $0.05
For the year Multiples For the year Multiples
ended 6/30/98 As of 9/21/98 ended 6/30/03As of 9/21/03
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Indicated Value of BioTechnica $4,663,567
Terminal Value of BioTechnica $8,979,300
LTM EBITDA ($581,000) nmf $2,140,000 4.20x
LTM Net Sales $21,341,000 0.22x $29,931,000 0.30x
ASSUMPTIONS:
Components for the discount rate:
U.S. Treasury rate - risk free r 5.55%
Large cap. stock - risk premium 7.80%
BioTechnica's stock - risk premi 0.65%
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Minority interest discount rate 14.00%
No dividends are paid.
Cash from the sale of the Company is received on 9/17/98.
In our model "Cash Flow" is defined as the sum of dividends and a
terminal value based on capitalization of revenues.