Buenos Aires, April 2008.

Valuation techniques:

Some of the more widely used valuation approaches, including:

Asset valuations. Earning valuations. Cash flow valuations.

Asset valuations (1).

Asset valuation is one measure of the investor’s exposure to risk.

If within the company there are assets whose market value approximates the price of the company plus its liabilities, the immediate downside risk is low.

An increase in the value of the assets of a company may represent a major portion of the investor’s anticipated return.

Asset valuations (2).

There are various approaches to asset valuation:

Book Value. Adjusted Book Value. Liquidation Value. Replacement Value.

Asset valuations (3):Book Value.

Is the most obvious that a prospective purchaser can examine is the book value.

It provides tangible starting point. The accounting practices of the company

can have significant effects on the firm’s book value.

Examples: Taxes (deflation). I+D (inflation).

Asset valuations (4):Adjusted Book Value.

Is the obvious refinement of stated book value and the actual market value of tangible assets. Building and equipment that have been

depreciated far bellow their market value. Land that has substantially appreciated about

its book value. Intangible assets.

The figure resulting should more accurately represent the value of the company’s assets.

Asset valuations (5):Liquidation value.

Consider the net cash amount that could be realized if the assets were disposed in a “quick sale”.

Is not usually importance to a buyer who is interested in the maintenance of a going concern.

Asset valuations (6):Replacement Value.

Is the current cost of reproducing the tangible assets of a business.

It sometimes happens that the market value for existing facilities is considerably less than the cost of building a plant and purchasing equivalent equipment from other sources.

The calculation is more as a reference .

Earning valuations (1).

A second common approach to an investor’s valuation of a company is to capitalize earnings. This involves multiplying figures by a capitalizations factor of price-earnings ratio.

This raises two questions: Which earnings? What ratio?

Earning valuations (2).

Earnings Figure: Historical earnings. Future earnings under present ownership. Future earnings under new ownership.

Earning valuations (3):Historical earnings.

Historical earnings can be used to reflect the company’s future performance.

This provides concrete realism. Historical earnings per se can rarely be used

directly, and an extrapolation of these figures to obtain a picture of the future must be considered a rough.

To gain the benefit from the information in a company’s financial history of the past operations, it is necessary to study each of the cost and income elements, their interrelationships, and their trends.

Earning valuations (4):Future earnings.

Wow much and in what ways income and costs are calculated for future operations depends to a large degree on the operating polices and strategies of management.

The existing or future owners ´approach will be influenced by a host of factors: Management ability. Economic and not economic objetives. And so on.

Earning valuations (4):Future earnings.

Two approaches:

Future earnings under present ownership. Future earnings under new ownership.

Financial topics(5): Cashflows

Financial topics(5).

Financial topics(5).

(*) CFT: COSTO FINANCIERO TOTAL. TNA: TASA NOMINAL ANUAL. TEA: TASA EFECTIVA ANUAL.

La cuota inicial incluye intereses, gestión y otorgamiento por cobertura de vida un titular y seguro de incendio. Plazo de interés 60 meses Plazo de amortización 120. Cuota calculada para primera vivienda. Porcentaje de financiación 70% TNA 17.00%, TEA 18.39%, CFT 19.38%. Ingresos mínimos $2500 para primera vivienda y $4000 para segunda vivienda. Créditos sujetos a la aprobación de Santander Río. Esta línea no posee super recompensa

Financial topics(5): Cashflows