English version - Hexagon Composites ASA

COMROD COMMUNICATION ASA – LISTING ON THE OSLO STOCK EXCHANGE
The following table shows the Company’s projected capitalization as of the date of the Demerger.
in NOK mill. 22 Jan. 2007
Share capital 16.9
Legal reserve -
Other reserves 64.8
Total shareholders’ equity (A) 81.7
Current debt:
Guaranteed -
Secured 10
Total current debt: 10
Non-current debt:
Guaranteed -
Secured 90
Total non-current debt 90
Total indebtedness (B) 100
Total capitalization (A+B) 181.7
The table below shows a statement of the Company’s net indebtedness in the short term and the
medium-long term as of the date of the Demerger.
in NOK mill. 22 Jan. 2007
A. Cash 22
B. Cash equivalents 20
C. Trading securities -
D. Liquidity (A+B+C) 42
E. Current financial receivable -
F. Current bank debt
G. Current portion of non current debt 10
H. Other current financial debt
I. Current financial indebtedness (F + G + H) 10
J. Net Current Financial Indebtness (I-E-D) -32
K. Non-current bank loans 90
L. Bonds issued -
M. Other non-current loans -
N. Non-current financial indebtedness (K+L+M) 90
O. Net financial indebtedness (J+N) 58
7.6.2 Description of cash flow
Comrod AS has over the recent years had a positive net cash flow after organic investments. The
acquisitions in 2006 have been financed through internal loans from Hexagon Composites.
Historically, postponement of scheduled projects has been the largest challenge for the liquidity in
Comrod AS. The large movement in trade payables shown in the cash flow analysis (see section 7.3.3)
in 2005 and reversal of this movement in 2006 is an example of this type of fluctuations. Lerc has had
an independent financing situation with a factoring agreement that has provided the company with a
sufficient cash flow buffer. Under this factoring agreement, Lerc can borrow on a short-term basis
with its trade receivables as collateral. Cash flow forecasts show positive development in the cash
balance for Comrod Communication for the year ahead. Historically, Comrod AS has had cash flow
from operations ranging from MNOK 5.6 to MNOK 9.9 over the past three accounting years. In the
same period organic investments have been on a lower level all years, ranging from MNOK 4.1 to
MNOK 6.1. This shows a stable and robust development of a company self supplied with cash. The
acquisitions of new entities in 2006 add new business units with established customer relationships
81