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Ashtead Group PLC (Britain) CREDIT SNAPSHOT 04/04/09 01 DEBT DISTRIBUTION 02 BONDS 03 INCOME STATEMENT 04 CASH FLOW 05 BALANCE SHEET Capital Bank Leveraged Finance Research 06 COVERAGE RATIOS Tel. (43-316) 8072-2356 07 LEVERAGE RATIOS Fax. (43-316) 8072-7120 08 ENTERPRISE VALUE e-mail highyield@cbank.at 09 RETURN ON CAPITAL Bloomberg GRAZ 10 RECOVERY & TANGIBLE NET WORTH Blog www.highyieldblog.com 11 ACCOUNTING RED FLAGS 12 LATEST SEC FILINGS 13 LEGAL DISCLAIMER AHT LN Equity equity ticker: AHT LN capitalisation (GBP in millions): bond ticker: AHTLN stock price GBp 53 sector: Consumer, Non-cyclical shares outstanding (million) 503.33 subgroup: Rental Auto/Equipment market capitalisation (GBP mm) 267 company description: total debt 1,149 Ashtead Group plc operates as an investment cash + marketable securities 2 holding and management company. Through its subsidiaries, the Group hires out plant and other capital 0 machinery for the UK and the US construction and enterprise value (excl. cash) 1,414 allied industries. Ashtead has some 273 A-Plant and 41 UK Plant branches, supplying UK current EV / TTM EBITDA 4.6x communications, petrochemical, defense and retail customers. They also have 163 Sunbelt centers in The company's next report is expected for 6/18/2009 (type: 27 U.S. states. Confirmed). Ashtead Group PLC has 9,798 employees. www.ashtead-group.com The distribution of this report is restricted. Important information concerning these restrictions and legal disclaimer is set forth at the end of this report. 01 Ashtead Group PLC facility amount issuer Rtg debt type & details coupon mat crncy amount issue date out (mm) (mm) l ASHTEAD GROUP PLC NA Loan, secured, term, floater 11/1/2009 USD 675 11/1/2004 l ASHTEAD GROUP PLC NA Loan, secured, revolver, floater 11/1/2009 USD 675 11/1/2004 l NATIONSRENT INC NA Loan, secured, revolver, floater 4/21/2010 USD 100 4/21/2005 l ASHTEAD GROUP PLC NA Loan, unsecured, revolver, floater 11/14/2010 USD 800 11/14/2005 l ASHTEAD GROUP PLC NA Loan, unsecured, term, floater 11/14/2010 USD 800 11/14/2005 l ASHTEAD GROUP PLC NA Loan, secured, abl revolver, floater 8/31/2011 USD 1,750 8/31/2006 l ASHTEAD GROUP PLC NA Loan, secured, term, floater 8/31/2011 USD 230 1,750 8/31/2006 bASHTEAD HOLDINGS PLC B Bond, callable, secured, fixed 8.625% 8/1/2015 USD 250 - 8/3/2005 bASHTEAD CAPITAL INC B Bond, callable, secured, fixed 9.000% 8/15/2016 USD 550 - 8/15/2006 DEBT DISTRIBUTION Total amount out of instruments listed above (GBP in MM) 694 Cash (MM) 2 Total debt (MM) 1,149 Total Number of Debt Instruments (for the issuer and its subs) 4 Loans Bonds 400 350 300 250 200 150 100 50 0 >2031 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 Moody's Ratings Standard & Poor's Ratings Outlook NEG 02/17/09 Outlook NEG 03/05/09 Issuer WR 07/07/05 LT Foreign Currency Issuer BB- 08/03/05 Senior Secured Debt N/A LT Local Currency Issuer BB- 08/03/05 LT Corp Family Ba3 08/01/07 ST Foreign Currency Issuer N/A Bank Loan Debt N/A ST Local Currency Issuer N/A Senior Unsecured Debt N/A Subordinated Debt N/A Short Term N/A 02 Ashtead Group PLC id issuer coupon mat outstanding S&P MDY ask px yield spread* px date *interpol. swap spread 045056AA ASHTEAD HOLDINGS PLC 8.625 08/01/15 USD 250,000,000 B B1 63.50 18.6 1589 02/17/09 045054AA ASHTEAD CAPITAL INC 9.000 08/15/16 USD 550,000,000 B B1 62.50 18.4 1564 02/17/09 BONDS Total Debt for the company currently stands at GBP 1,148mm. bond price 120 100 80 60 40 20 0 05 05 05 06 06 06 06 06 06 07 07 07 07 07 07 08 08 08 08 08 08 1/ 1/ 1/ 8/ 0/ 0/ 1/ 1/ 1/ 8/ 0/ 0/ 1/ 1/ 1/ 9/ 0/ 0/ 1/ 1/ 1/ /3 /3 /3 /2 /3 /3 /3 /3 /3 /2 /3 /3 /3 /3 /3 /2 /3 /3 /3 /3 /3 08 10 12 02 04 06 08 10 12 02 04 06 08 10 12 02 04 06 08 10 12 yield 25 20 ASHTEAD HOLDINGS PLC 8.625% 8/2015 USD 15 ASHTEAD CAPITAL INC 9% 8/2016 USD 10 5 0 05 05 05 06 06 06 06 06 06 07 07 07 07 07 07 08 08 08 08 08 08 1/ 1/ 1/ 8/ 0/ 0/ 1/ 1/ 1/ 8/ 0/ 0/ 1/ 1/ 1/ 9/ 0/ 0/ 1/ 1/ 1/ /3 /3 /3 /2 /3 /3 /3 /3 /3 /2 /3 /3 /3 /3 /3 /2 /3 /3 /3 /3 /3 08 10 12 02 04 06 08 10 12 02 04 06 08 10 12 02 04 06 08 10 12 interpolated swap spread 2500 2000 1500 1000 500 0 05 05 05 06 06 06 06 06 06 07 07 07 07 07 07 08 08 08 08 08 08 1/ 1/ 1/ 8/ 0/ 0/ 1/ 1/ 1/ 8/ 0/ 0/ 1/ 1/ 1/ 9/ 0/ 0/ 1/ 1/ 1/ /3 /3 /3 /2 /3 /3 /3 /3 /3 /2 /3 /3 /3 /3 /3 /2 /3 /3 /3 /3 /3 08 10 12 02 04 06 08 10 12 02 04 06 08 10 12 02 04 06 08 10 12 Prices & yields bid side to 28/7/08 and ask side thereafter. Spread is Govt Bid Sprd to 28/7/08 and Interpol. Swap Ask Sprd then. 03 Ashtead Group PLC GBP in millions Q3 08 Q4 08 Q1 09 Q2 09 Q3 09 05 06 07 08 01/31/09 04/30/08 Revenues 231 215 260 287 252 524 638 875 976 COGS COGS % of Revenues SG&A 198 181 232 226 449 503 743 799 SG&A % of Revenues 85.8% 84.2% 81.0% 89.4% 85.8% 78.8% 85.0% 81.8% INCOME STATEMENT EBITDA 80 71 46 108 81 177 249 298 364 Interest Expense 20 18 17 19 19 48 46 73 79 EBT 15 15 39 9 27 89 70 108 Net Income 13 18 82 -2 -1 18 56 8 78 EBITDA Margin 34.5% 33.1% 17.7% 37.5% 32.0% 33.8% 39.0% 34.0% 37.3% EBIT Margin 15.2% 15.4% - 20.1% 10.8% 14.2% 21.2% 16.3% 19.2% EBITDA Margin EBIT Margin 57.1% 40.2% 39.0% 38.9% 37.5% 37.3% 36.5% 34.5% 34.2% 34.0% 33.8% 33.1% 32.0% 31.9% 28.8% 25.7% 23.4% 21.2% 20.1% 19.2% 19.0% 17.7% 16.3% 15.4% 15.2% 14.2% 12.0% 11.8% 10.8% 6.0% 5.1% 0.0% Q2 07 Q3 07 Q4 07 Q1 08 Q2 08 Q3 08 Q4 08 Q1 09 Q2 09 Q3 09 02 03 04 05 06 07 08 -7.4% -15.3% GBP in millions Q3 08 Q4 08 Q1 09 Q2 09 Q3 09 05 06 07 08 01/31/09 04/30/08 TTM INCOME STATEMENT TTM Revenues 975 957 970 992 1,014 524 638 875 976 TTM EBITDA 259 347 303 304 306 177 249 298 364 TTM D&A 151 171 102 114 155 177 TTM EBIT 108 177 75 135 143 187 TTM Interest Expense 13 79 76 74 73 48 46 73 79 TTM EBT 95 98 27 89 70 108 TTM Net Income 53 78 142 112 97 18 56 8 78 TTM Revenues TTM Revenues EBITDA TTM EBITDA 364 1,014 347 992 976 975 970 957 306 304 303 298 875 259 249 638 524 177 Q3 08 Q4 08 Q1 09 Q2 09 Q3 09 05 06 07 08 Q3 08 Q4 08 Q1 09 Q2 09 Q3 09 05 06 07 08 TTM EBT TTM Interest Expense TTM D&A 177 171 155 151 114 79 79 102 46 73 13 0 0 0 95 98 48 89 108 76 74 73 70 27 0 0 0 Q3 08 Q4 08 Q1 09 Q2 09 Q3 09 05 06 07 08 04 Ashtead Group PLC GBP in millions Q3 08 Q4 08 Q1 09 Q2 09 Q3 09 05 06 07 08 01/31/09 04/30/08 Cash from Operations (CFO) 71 48 89 76 74 128 154 181 264 CASH FLOW Cash from Investing (CFI) -72 -13 37 -93 -21 -75 -223 -557 -265 Free Cash Flow (CFO + CFI) -2 35 126 -17 53 54 -69 -376 -1 Cash from Financing Activities 2 -43 -126 18 -53 -55 68 376 1 Cash from Operations (CFO) Free Cash Flow (CFO + CFI) 300 200 100 0 Q2 07 Q3 07 Q4 07 Q1 08 Q2 08 Q3 08 Q4 08 Q1 09 Q2 09 Q3 09 02 03 04 05 06 07 08 -100 -200 -300 -400 -500 GBP in millions Q3 08 Q4 08 Q1 09 Q2 09 Q3 09 05 06 07 08 01/31/09 04/30/08 TTM Cash from Operations (CFO) 200 256 278 283 286 128 154 181 264 TTM Cash from Invest. (CFI) -201 -265 -170 -141 -90 -75 -223 -557 -265 TTM Capex -322 -352 -327 -288 -249 -111 -229 -308 -352 TTM D&A -151 -171 -173 -179 -188 -102 -114 -155 -177 TTM Free Cash Flow (CFO + CFI) -2 -9 109 142 196 54 -69 -376 -1 TTM Cash from Financing Activities -7 1 -117 -150 -205 -55 68 376 1 TTM CFO - Capital Expenditures -123 -96 -48 -5 37 17 -75 -127 -87 TTM CASH FLOW TTM EBITDA - Capital Expenditures -64 -4 -24 17 56 66 19 -11 12 TTM EBITDA - Capex - Change in WC -64 -4 -24 17 56 66 20 -10 12 TTM EBITDA-Capex-WC-CshIntEx-CshTax-CshDiv -137 -104 -115 -80 -37 35 -37 -87 -81 TTM CFO/Total Debt 20.2% 26.5% 32.6% 26.3% 24.9% 47.8% 66.7% 19.8% 27.4% TTM FCF/Total Debt -0.2% -0.9% 12.7% 13.1% 17.1% 19.9% -29.7% -41.0% -0.1% TTM Capex TTM D&A TTM Cash from Invest. (CFI) TTM EBITDA - Capital Expenditures 66 -75 -102 -90 -111 -114 56 -141 -151 -155 -170 -171 -173 -177 -179 -188 -201 -223 -229 -249 -265 -265 -288 -308 -322 -327 -352 -352 17 19 12 -557 -4 -11 -24 -64 Q3 08 Q4 08 Q1 09 Q2 09 Q3 09 05 06 07 08 Q3 08 Q4 08 Q1 09 Q2 09 Q3 09 05 06 07 08 TTM EBITDA - Capex - Change in WC TTM EBITDA-Capex-WC-CshIntEx-CshTax-CshDiv 100 50 0 Q3 08 Q4 08 Q1 09 Q2 09 Q3 09 05 06 07 08 -50 -100 -150 05 Ashtead Group PLC GBP in millions Q3 08 Q4 08 Q1 09 Q2 09 Q3 09 05 06 07 08 01/31/09 04/30/08 Cash 2 2 2 2 2 2 1 1 2 Marketable Securities / ST Investments Accounts & Notes Receivable 161 137 175 214 188 81 97 144 137 Inventories & Unbilled Receivables 24 23 24 22 17 14 13 24 23 Net Fixed Assets 1,174 1,130 1,181 1,349 1,380 537 647 1,048 1,130 75% of Accounts Receivable 121 103 131 160 141 60 72 108 103 30% of Inventories & Unbill. Rec. 7 7 7 7 5 4 4 7 7 10% of Net Fixed Assets 117 113 118 135 138 54 65 105 113 Collateral (Liquidation) Asset Value 247 224 258 303 286 120 142 221 224 BALANCE SHEET Working Capital 28 61 -9 49 82 -7 4 12 61 Net Other Long Term Assets & Liabs. 221 202 180 202 230 -153 -170 245 202 Total Borrowings (includes ST Borrowings) 988 965 853 1,078 1,149 268 232 917 965 Net Debt 986 963 852 1,076 1,147 266 231 916 963 Collateral Asset Value / Total Borrowings 25.0% 23.3% 30.2% 28.2% 24.9% 44.9% 61.3% 24.1% 23.3% explanations and definitions: The approximation we use to calculate a company's total Collateral (Liquidation) Asset Value (for an asset based liquidation scenario) is calculated as the sum of Cash plus Marketable Securities / Short-Term Investments plus assets with the following valuation rates applied: 75% of stated Accounts Receivable 30% of stated Inventory 10% of stated Net Fixed Assets. Although we acknowledge that some industries and individual situations demand clearly different assumptions we nevertheless think this is a useful approximation across all industries covered, if only as a starting point for further individual in-depth analysis. 75% of Accounts Receivable 30% of Inventories & Unbill. Rec. Working Capital 10% of Net Fixed Assets 82 61 61 49 135 138 118 28 117 113 7 105 113 7 5 12 7 7 65 7 7 4 54 160 141 4 121 131 4 103 108 103 60 72 -9 -7 Q3 08 Q4 08 Q1 09 Q2 09 Q3 09 05 06 07 08 Q3 08 Q4 08 Q1 09 Q2 09 Q3 09 05 06 07 08 Net Other Long Term Assets & Liabs. Total Borrowings (includes ST Borrowings) Net Debt 245 221 230 202 202 202 180 1,149 1,147 1,078 1,076 988 986 965 965 963 963 917 916 853 852 268 266 232 231 -153 -170 Q3 08 Q4 08 Q1 09 Q2 09 Q3 09 05 06 07 08 Q3 08 Q4 08 Q1 09 Q2 09 Q3 09 05 06 07 08 Collateral Asset Value / Total Borrowings 61.3% 44.9% As of 4/30/2008 the Pension Plan of Ashtead Group PLC was overfunded by GBP 6mm. The discount rate used for the company's Pension Plan liabilities 30.2% is 6.25%. 28.2% 25.0% 23.3% 24.9% 24.1% 23.3% Q3 08 Q4 08 Q1 09 Q2 09 Q3 09 05 06 07 08 06 Ashtead Group PLC GBP in millions Q3 08 Q4 08 Q1 09 Q2 09 Q3 09 05 06 07 08 COVERAGE RATIOS 01/31/09 04/30/08 TTM EBITDA / TOTAL INTEREST 20.4x 4.4x 4.0x 4.1x 4.2x 3.7x 5.4x 4.1x 4.6x TTM EBITDAR / TOTAL INTEREST+RENT 6.2x 3.3x 3.0x 3.1x 3.2x 2.9x 4.0x 3.0x 3.5x TTM EBITDA-CAPEX / TOTAL INTEREST NM NM NM 0.2x 0.8x 1.4x 0.4x NM 0.2x TTM EBITDAR-CAPEX / TOTAL INTEREST+RENT NM NM NM 0.5x 0.8x 1.3x 0.6x NM 0.4x explanations and definitions: TTM TOTAL INTEREST: For all coverage ratio calculations we use the Total Interest figure which in addition to Interest Expense also includes Capitalized Interest Expenses. We think this gives a better view of the economic reality than the simple Interest Expense figure. TTM EBITDA / TOTAL INTEREST TTM EBITDAR / TOTAL INTEREST+RENT 6.2x 20.4x 4.0x 3.3x 3.5x 3.0x 3.1x 3.2x 2.9x 3.0x 5.4x 4.4x 4.1x 4.2x 4.1x 4.6x 4.0x 3.7x Q3 08 Q4 08 Q1 09 Q2 09 Q3 09 05 06 07 08 Q3 08 Q4 08 Q1 09 Q2 09 Q3 09 05 06 07 08 TTM EBITDA-CAPEX / TOTAL INTEREST TTM EBITDAR-CAPEX / TOTAL INTEREST+RENT 1.3x 1.4x 0.8x 0.8x 0.6x 0.5x 0.4x 0.4x 0.2x 0.2x 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x Q3 08 Q4 08 Q1 09 Q2 09 Q3 09 05 06 07 08 Q3 08 Q4 08 Q1 09 Q2 09 Q3 09 05 06 07 08 07 Ashtead Group PLC GBP in millions Q3 08 Q4 08 Q1 09 Q2 09 Q3 09 05 06 07 08 01/31/09 04/30/08 NET DEBT / TTM EBITDA 3.8x 2.8x 2.8x 3.5x 3.8x 1.5x 0.9x 3.1x 2.6x TOTAL DEBT / TTM EBITDA 3.8x 2.8x 2.8x 3.5x 3.8x 1.5x 0.9x 3.1x 2.7x LEVERAGE RATIOS TOTAL DEBT / TTM EBITDA-CAPEX NM NM NM 64.5x 20.4x 4.1x 11.9x NM 77.8x Rentadj. TOT DEBT / TTM EBITDAR 4.3x 3.3x 3.4x 4.0x 4.2x 2.2x 1.5x 3.7x 3.1x Rentadj. TOT DEBT / TTM EBITDAR-CAPEX NM 40.7x 98.5x 26.3x 15.6x 5.0x 9.9x 40.3x 26.3x HAIRCUT EBITDA MULTIPLE / TOTAL DEBT 82.4% 113.3% 112.0% 89.0% 83.8% 207.7% 338.3% 102.2% 118.8% TOTAL DEBT / TTM EBIT 9.2x 5.5x 3.6x 1.7x 6.4x 5.2x explanations and definitions: Rent adj. Total Debt/TTM EBITDAR: This ratio is calculated by dividing the Rent Adjusted Total Debt figure (Total Debt plus 8 times TTM Rental Expenses) by EBITDAR (TTM EBITDA plus TTM Rental Expenses). HAIRCUT EBITDA MULTIPLE / TOTAL DEBT: We adjust TTM EBITDA to 70% of its stated value, multiply the result with 4.5 as an assumed exit multiple and relate the resulting figure (the haircut EBITDA multiple) to the TOTAL DEBT number. This ratio should reflect the situation of an issuer's liquidation, whereby the assets can be sold at a reduced EBITDA multiple. NET DEBT / TTM EBITDA TOTAL DEBT / TTM EBITDA TOTAL DEBT / TTM EBITDA-CAPEX 3.8x 3.8x 77.8x 3.5x 64.5x 3.1x 2.8x 2.8x 2.6x 1.5x 0.9x 20.4x 11.9x 3.8x 2.8x 2.8x 3.5x 3.8x 4.1x 3.1x 2.7x 0.0x 0.0x 0.0x 1.5x 0.9x 0.0x Q3 08 Q4 08 Q1 09 Q2 09 Q3 09 05 06 07 08 Q3 08 Q4 08 Q1 09 Q2 09 Q3 09 05 06 07 08 HAIRCUT EBITDA MULTIPLE / TOTAL DEBT Rentadj. TOT DEBT / TTM EBITDAR Rentadj. TOT DEBT / TTM EBITDAR-CAPEX 338.3% 98.5x 207.7% 118.8% 40.7x 40.3x 113.3% 112.0% 102.2% 82.4% 89.0% 83.8% 26.3x 26.3x 15.6x 9.9x 4.3x 3.3x 3.4x 4.0x 4.2x 5.0x 2.2x 3.7x 3.1x 0.0x 1.5x Q3 08 Q4 08 Q1 09 Q2 09 Q3 09 05 06 07 08 Q3 08 Q4 08 Q1 09 Q2 09 Q3 09 05 06 07 08 TOTAL DEBT / TTM EBIT 9.2x 6.4x 5.5x 5.2x 3.6x 1.7x 0.0x 0.0x 0.0x Q3 08 Q4 08 Q1 09 Q2 09 Q3 09 05 06 07 08 08 Ashtead Group PLC GBP in millions Q3 08 Q4 08 Q1 09 Q2 09 Q3 09 05 06 07 08 01/31/09 04/30/08 ENTERPRISE VALUE EV / TTM EBITDA 5.5x 3.8x 4.1x 4.3x 4.5x 3.1x 4.7x 6.0x 3.6x EV / TTM EBIT 13.3x 7.4x 7.4x 8.7x 12.5x 7.0x Enterprise Value 1,428 1,303 1,232 1,314 1,372 549 1,181 1,782 1,303 TOTAL DEBT 988 965 853 1,078 1,149 268 232 917 965 Equity Market Cap 431 321 347 217 201 280 947 866 321 EV / TTM EBITDA EV / TTM EBIT 13.3x 6.0x 12.5x 5.5x 4.7x 4.5x 4.3x 4.1x 8.7x 3.8x 3.6x 7.4x 7.4x 3.1x 7.0x 0.0x 0.0x 0.0x Q3 08 Q4 08 Q1 09 Q2 09 Q3 09 05 06 07 08 Q3 08 Q4 08 Q1 09 Q2 09 Q3 09 05 06 07 08 TOTAL DEBT EV - TOTAL DEBT Equity Market Cap 947 866 865 223 440 237 338 338 379 431 347 321 321 949 280 1,149 1,078 988 217 965 965 201 917 853 281 268 232 Q3 08 Q4 08 Q1 09 Q2 09 Q3 09 05 06 07 08 Q3 08 Q4 08 Q1 09 Q2 09 Q3 09 05 06 07 08 AHT LN stock closing price 250 200 150 100 50 0 Aug/99 Aug/00 Aug/01 Aug/02 Aug/03 Aug/04 Aug/05 Aug/06 Aug/07 Aug/08 Nov/99 Nov/00 Nov/01 Nov/02 Nov/03 Nov/04 Nov/05 Nov/06 Nov/07 Nov/08 Mai/99 Mai/00 Mai/01 Mai/02 Mai/03 Mai/04 Mai/05 Mai/06 Mai/07 Mai/08 Feb/00 Feb/01 Feb/02 Feb/03 Feb/04 Feb/05 Feb/06 Feb/07 Feb/08 Feb/09 09 Ashtead Group PLC GBP in millions Q3 08 Q4 08 Q1 09 Q2 09 Q3 09 05 06 07 08 01/31/09 04/30/08 Adjusted Cap Rate 4.60% 8.48% 6.52% 6.36% 4.49% 8.37% RETURN ON CAPITAL Tangible Capital 1,126 1,099 1,059 1,246 1,294 268 340 1,013 1,099 Total Intangibles 301 300 299 362 403 118 149 299 300 Pre-tax ROIC 9.6% 16.1% 27.9% 39.7% 14.1% 17.0% After-tax ROIC (effective tax rate) 6.3% 11.5% 15.7% 27.0% 10.9% After-tax ROIC (assumed tax rate) 6.2% 10.4% 18.1% 25.8% 9.1% 11.1% WACD (Pre-tax) 1.3% 8.2% 8.9% 6.9% 6.3% 17.7% 20.0% 8.0% 8.2% explanations and definitions: Adjusted Cap Rate: This ratio shows EBIT reduced by an assumed tax rate of 35% and adjusted for Net Non-Operating and Extraordinary Losses (Gains) - averaged over the last 5 years - divided by the Enterprise Value. Tangible Capital: Starting with the Total Book Capital the Tangible Capital figure is calculated by subtracting Intangibles, Cash and Marketable Securities as well as Short Term Investments. We calculate three different ROIC (Return on Invested Capital) figures: Pre-Tax ROIC: this ratio relates the trailing twelve months (TTM) EBIT to Tangible Capital as defined above. After-tax ROIC (effective tax rate): here EBIT is corrected by the company's effective tax rate as stated in it's latest financials, giving an after-tax ROIC rate. After-tax ROIC (assumed tax rate): here EBIT is corrected by an assumed tax rate of 35%, giving a modified after-tax ROIC rate. WACD (Pre-Tax): This rate is defined as trailing twelve months (TTM) TOTAL INTEREST EXPENSE divided by Total Borrowings. Adjusted Cap Rate After-tax ROIC (assumed tax rate) 8.5% 8.4% 25.8% 6.5% 6.4% 18.1% 4.6% 4.5% 10.4% 11.1% 9.1% 6.2% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% Q3 08 Q4 08 Q1 09 Q2 09 Q3 09 05 06 07 08 Q3 08 Q4 08 Q1 09 Q2 09 Q3 09 05 06 07 08 WACD (Pre-tax) 20.0% 17.7% 8.9% 8.2% 8.0% 8.2% 6.9% 6.3% 1.3% Q3 08 Q4 08 Q1 09 Q2 09 Q3 09 05 06 07 08 10 DEFAULT ESTIMATE Ashtead Group PLC Average Bond Spread (in BPoints (1)) 1572 Estimated Bond Recovery Rate (2) 76.7% Resulting Tolerable Default Rate (3) NM explanations and definitions: We calculate estimated default and recovery rates to be used in other credit models (f.i. for the valuation of CDOs or similar structures) as follows: (1) Average Bond Spread: Average Spread of all bonds listed on page 2 of this report. (2) Estimated Bond Recovery Rate: To calculate this rate we first divide the total debt amount into bond debt and loan debt that is senior to bond debt. As an approximation for the total amount of bond debt we use the sum of the amounts outstanding of all bonds listed on page 1 of this report. The total debt figure is reduced by this sum, giving us an approximate figure for debt that is senior to bond debt. We then calculate a collateral asset coverage figure for the bond debt by starting with the Collateral Asset Value (as defined on page 5 of this report) which we reduce by the amount of senior debt ahead of the bonds. The remaining Collateral Asset Value is then divided by the approximate bond debt amount as defined above, giving an estimated recovery value on a collateral asset basis. We apply the same logic to an EBITDA multiple ratio (as on page 7 of this report) and get a second recovery estimate based on the EBITDA multiple. The higher of the 2 estimates is used as the "Estimated Bond Recovery Rate". (3) Resulting Tolerable Default Rate: The implied default rate calculated using the Market Spread (1) and the Estimated Recovery Rate (2). With the given Market Spread and Estimated Recovery Rate it defines the maximum tolerable default probability for the risk premium paid in the form of Spread. Please note: This rate will only be displayed when it is greater than 0% and lower than 30% as we believe it is not meaningful ('NM') out of this range. Although we acknowledge that the calculated results are by no means exact, we think they make for a good estimate in the valuation of credit structures when individual default and recovery rates for single issuers are to be used. GBP in millions Q3 08 Q4 08 Q1 09 Q2 09 Q3 09 05 06 07 08 01/31/09 04/30/08 Total Assets 1,694 1,663 1,699 1,966 2,025 773 940 1,596 1,663 TANGIBLE NET WORTH Total Liabilites 1,252 1,227 1,193 1,434 1,475 653 682 1,199 1,227 Total Intangibles 301 300 299 362 403 118 149 299 300 Tangible Net Worth 140 136 208 170 147 1 109 97 136 ESTIMATE Rent Debt (8x Annual Rental Expense) 280 280 280 280 280 169 174 335 280 Underfunded Pension & Post Ret. Liab. 6 -16 2 5 6 Discount on Hard Assets 1,113 1,067 1,123 1,283 1,300 513 615 996 1,067 Adjusted Tangible Net Worth -1,253 -1,205 -1,195 -1,393 -1,433 -697 -678 -1,229 -1,205 11 Ashtead Group PLC GBP in millions Q3 08 Q4 08 Q1 09 Q2 09 Q3 09 05 06 07 08 01/31/09 04/30/08 (CFO-Net Income)/Revenues 24.8% 14.1% 2.6% 26.9% 29.6% 21.0% 15.5% 19.8% 19.1% yoy Revenue Growth -3.9% -7.9% 5.4% 8.6% 9.4% 4.7% 21.8% 37.1% 11.6% Gross Margin Days Sales Outstanding 60 52 66 79 68 56 55 60 51 Days Sales of Inventory 9 9 9 8 6 10 7 10 8 Soft Assets 333 371 319 380 439 139 183 378 371 ACCOUNTING RED FLAGS Unbilled Receivables - - - - - - - - - Deferred / Unearned Revenue - - - - - - - - - Allowance for Doubtful Accounts - - - - - - - - - TTM Dividends Paid 9 11 11 13 13 0 2 7 11 TTM Preferred Dividends 0 0 0 0 0 0 0 0 0 Net Change in Capital Stock -12 -12 -13 -1 -2 0 68 144 -24 Non-Capex CFI (CFI less Capex) 13 16 101 17 26 36 6 -249 87 Gross Margin yoy Revenue Growth (CFO-Net Income)/Revenues 40.0% 35.0% 37% 30.0% 25.0% 29% 30% 27% 25% 25% 37.1% 20.0% 24% 21% 20% 20% 19% 15.0% 21.8% 16% 15% 21% 14% 17% 10.0% 15% 11.6% 9.4% 8.6% 7.1% 5.4% 4.7% 5.0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 7% 0.0% 3% -3.9% -7.6% -7.3% -7.9% -5.0% -1% -10.0% -15.0% Days Sales Outstanding Days Sales of Inventory 19 14 11 10 10 10 9 9 9 9 8 8 8 8 8 7 6 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Q2 07 Q3 07 Q4 07 Q1 08 Q2 08 Q3 08 Q4 08 Q1 09 Q2 09 Q3 09 02 03 04 05 06 07 08 Auditor Information: Current auditor DELOITTE & TOUCHE LLP (as of 23.6.2008) Auditor's opinion Unqualified Auditor's opinion - Definitions Not Audited / Unaudited No tests were performed to verify amounts in financial statements. Typically applied to interim statement. Partially audited Not all statements were audited. Auditor may specifically give opinion on one or two statements. Unqualified Auditor declares, without reservation, that the financial statements fairly represent the company's financial position at a point in time and that the statements conform in all material respects to GAAP. Qualified: Limited Scope An aspect of the company's financial statements could not be verified, such as a portion of inventory not counted. Qualified: Inconsistent Standards Accounting standards were not applied consistently between periods. Qualified: not GAAP Standard accounting principles for the country were not followed. Typically related to a unique line item and uses the phrase 'except for.' Qualified: uncertainty Doubt exists related to a material balance sheet item, such as value of investment or collectability of major receivable; or auditor doubts going concern ability of company. This opinion usually employs the phrase 'subject to.' Disclaimer Auditor refuses to state opinion on financial statements, typically due to lack of sufficient documentation provided by company and/or subsidiaries. 12 Ashtead Group PLC Quarterly Report (Form Type 10-Q) end of period LATEST SEC FILINGS Annual Report (Form Type 10-K) end of period Special Events & Material News (Form Type 8-K) filing date Prospectus (Form Type 42..) filing date This research report was prepared by Capital Bank - GRAWE Gruppe AG (Capital Bank). The information herein has been obtained from, and any opinions herein are based upon, sources believed to be reliable, but we do not represent that it is accurate or complete and it should not be relied upon as such. All opinions, forecasts and estimates herein reflect our judgement on the date of this report and are subject to change without notice. The report is not intended to be an offer, or the solicitation of any offer, to buy or sell the securities referred to herein. Further information on the securities referred to herein may be obtained from Capital Bank upon request. Past performance is not necessarily indicative of future results and transactions in securities, options or futures can be considered risky. Not all transactions are suitable for every investor. Investors should consult their advisor to make sure that the planned investment fits into their needs and preferences and that the involved risks are fully understood. This document may not be reproduced, distributed or published without the prior consent of Capital Bank. Capital Bank is regulated by the Financial Services Authority for the conduct of investment business in Austria.

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