Deutsche Brauerei

Summary

DB is a family business of
beer

1998: expanded to
Ukraine

Late 1990s: a rapidly

growth in sales

To maintain the growth,

DB has been getting a lot
of loans

2001:
Financial Budget

Dividend payout
Scheme for O. Pinchuk

Financial Butget

2001

2002

(Proj'd)

(Proj'd)

2001

2002

We recomend

Sales Growth: Germany

3.00%

3.00%

3.00%

3.00%

Sales Growth: Ukraine

45.00%

30.00%

3.00%

3.00%

Capital Expenditures/Sales

6,980

6,822

Dividend Payout

75.0%

75.0%

Germany

41

41

Ukraine

90

41

Days Sales Outstanding:

Return on Marginal
Investment

123%

132%

-8%

290%

Dividend Payout

75% dividends

50% dividends

30% dividends

20% dividends

2001

2002

2001

2002

2001

2002

2001

2002

(Proj'd.)

(Proj'd.)

(Proj'd.)

(Proj'd.)

(Proj'd.)

(Proj'd.)

(Proj'd.)

(Proj'd.)

Sales: Germany

68,202.80

70,248.88

68,202.80

70,248.88

68,202.80

70,248.88

68,202.80

70,248.88

Sales: Ukraine

37,478.80

48,722.44

37,478.80

48,722.44

37,478.80

48,722.44

37,478.80

48,722.44

105,681.60

118,971.32

105,681.60

118,971.32

105,681.60

118,971.32

105,681.60

118,971.32

Production costs and expenses

61,392.72

71,608.83

61,392.72

71,608.83

61,392.72

71,608.83

61,392.72

71,608.83

Administrative and selling expenses

18,500.00

18,500.00

18,500.00

18,500.00

18,500.00

18,500.00

18,500.00

18,500.00

Depreciation

6,766.28

7,448.46

6,766.28

7,448.46

6,766.28

7,448.46

6,766.28

7,448.46

Excise duties

11,624.89

13,086.74

11,624.89

13,086.74

11,624.89

13,086.74

11,624.89

13,086.74

Total operating expenses

(98,283.89) (110,644.03)

Net sales
Operating expenses:

(98,283.89) (110,644.03)

(98,283.89) (110,644.03)

(98,283.89) (110,644.03)

Operating profit

7,397.71

8,327.29

7,397.71

8,327.29

7,397.71

8,327.29

7,397.71

8,327.29

Allowance for doubtful accounts

(201.02)

(60.04)

(201.02)

(60.04)

(201.02)

(60.04)

(201.02)

(60.04)

Interest expense

(1,467.52)

(1,634.35)

(1,467.52)

(1,634.35)

(1,467.52)

(1,634.35)

(1,467.52)

(1,634.35)

Earnings before taxes

5,729.17

6,632.89

5,729.17

6,632.89

5,729.17

6,632.89

5,729.17

6,632.89

Income taxes

(2,005.21)

(2,321.51)

(2,005.21)

(2,321.51)

(2,005.21)

(2,321.51)

(2,005.21)

(2,321.51)

Net earnings

3,723.96

4,311.38

3,723.96

4,311.38

3,723.96

4,311.38

3,723.96

4,311.38

Dividends to all common shares

2,792.97

3,233.54

1,861.98

2,155.69

1,117.19

1,293.41

744.79

862.28

Retentions of earnings

930.99

1,077.85

1,861.98

2,155.69

2,606.77

3,017.97

2,979.17

3,449.11

ROE

3.279%

10.630%

10.494%

12.149%

3.797%

6.559%

7.593%

9.182%

Scheme to Pichuk

Let Pichuk compensation plan as it is or

even find a new employee for that job,
because it looks that all he wants is a higher
pay is not really considering the companys
best interests.