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1991


1992


1993


1994


1995
Source: White Paper, Sensormatic Electronics Corp., September 1995.




EXHIBIT 3
Year-End Allowance as a Percent of Gross Receivables
% of Gross
Receivables
12

10

8


6

4

2

0
1981


1982


1983


1984


1985


1986


1987


1988


1989


1990


1991


1992


1993


1994


1995




Source: White Paper, Sensormatic Electronics Corp., September 1995.
712 Management Communications




17-28
Management Communications




EXHIBIT 4
Sensormatic™s Share Price from October 1994 to October 1995




Sensormatic Electronics Corporation
Stock
Price
40
38
36
34
32
30
28
26
24
22
20



Aug-99


Sep-99
Jan-99




Jun-99
Feb-99
Oct-98




Apr-99




Oct-99
Nov-98


Dec-98




Jul-99
May-99
Mar-99




Source: White Paper, Sensormatic Electronics Corp., September 1995.




EXHIBIT 5
Sensormatic Shares Sold Short from October 1994 to October 1995
Short Interest
(in Millions)

6

5

4

3

2

1

0
Oct-98

Nov-98

Dec-98

Jan-99




Mar-99

Apr-99

May-99

Jun-99

Jul-99

Aug-99

Sep-99

Oct-99
Feb-99




Source: White Paper, Sensormatic Electronics Corp., September 1995.
713
Management Communications




17-29 Part 3 Business Analysis and Valuation Applications




EXHIBIT 6
Data for Valuation
Sensormatic Electronics Corporation




Sensormatic equity beta* 1.10
Treasury bill rate in December 1995 (3 months)** 5.08%
Government 30-year treasuries rate in December 1995** 6.75%
Sensormatic corporate bond average yield** 8.21%
US federal statutory tax rate in 1995 34%

* Source: Value Line Investment Survey, October 20, 1995
** Source: Bloomberg Financial Analysis




EXHIBIT 7
Sensormatic Electronics 1995 Annual Report - Edited

LETTER TO SHAREHOLDERS, CUSTOMERS AND EMPLOYEES:

Fiscal 1995 was a year of both successes and disap- and market breadth with strategic acquisitions,
pointments for Sensormatic. The successes we including the operations of Knogo Corporation out-
achieved were signi¬cant, and provide us with great side North America; Software House, Inc., a leading
con¬dence for the future. Revenue grew 36 percent, supplier of high-end Access Control systems; Case
with increases across the board”18 percent for U.S. Security Limited, a leading supplier of security sys-
retail, 53 percent for Asia/Paci¬c, 40 percent for tems to the U.K. ¬nancial industry; and Glen Indus-
Europe and 36 percent for exports to Latin America, trial Communications, Inc., one of the leading U.S.
Eastern Europe and the Middle East. Most impres- systems integrators.
sively, revenues for our commercial/industrial busi-
We introduced new products using innovative tech-
ness grew 73 percent to $213 million worldwide
nology, including Rapid Pad II, an improved, lower-
and now account for approximately one-fourth of
cost Ultra-Max deactivator; a new line of Video
our businesses, compared with just 3 percent ¬ve
Managers that can integrate CCTV systems with any
years ago.
PC or software system; and SensorStrip, a new elec-
This revenue growth clearly demonstrates the tromagnetic label designed for source tagging in
strength of our business in all segments of the elec- Europe.
tronic security industry. We have almost doubled our
To better serve our customers, we implemented a
business over the past two years and before that,
“Customer Care” program company wide. In the
doubled it more than two times in nine years. We

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