Compagnie du Froid - Alternative Exhibits

Alternative Exhibit 1

Example of Standards for the 1996 Profit Plan

France

Standards
Percentage of volume from specialties

10%

Italy

Spain

10%

10%

Selling prices (in French Francs)

Ice-cream (per litre)
Specialties (per litre)

17.40
32.10

17.45
32.00

17.30
31.80

Manufacturing costs (in French Francs)

Dairy (per litre)
Other ingredients ice-cream (sugar, flavor, etc. per 100 grams)
Other ingredients specialties (sugar, flavor, etc. per 100 grams)
Labor (wage per hour)
Labor hours ice-cream (litres per hour)
Labor hours specialties (litres per hour)

10.70
6.00
8.60
37.80
110
12

10.40
5.80
8.45
35.40
85
12

10.20
5.90
8.30
31.70
110
12

Volume
Dairy ingredients - ice-cream (% of volume)
Other ingredients - ice-cream (grams per litre)
Dairy ingredients - specialties (% of volume)
Other ingredients - specialties (grams per litre)

75%
48
93%
73

78%
54
95%
73

75%
48
93%
73

Compagnie du Froid - Alternative Exhibits

Alternative Exhibit 2

French Region, 1996 Results

Volume
('000)

Sales Data
Sales ice cream (volume in litres)
Sales ice cream to Spain (litres)
Sales "specialties" (litres)
Revenue from distribution
Total sales
Cost of Goods Sold
Cost ice-cream
Dairy ingredients (litres)
Other ingredients (100 gr.)
Labor (hours)
Cost "specialties"
Dairy ingredients (litres)
Other ingredients (100 gr.)
Labor (hours)
Contribution margin

4,015
600
405

Volume
('000)

Profit Plan
French Francs
('000)

4,000
0
445

5,020

69,821
8,280
13,183
250
91,534

3,443
2,123
41.39

368
307
32.93

Other costs
Supervision, energy, maint,
Depreciation
Operating margin
Selling and Administrative Expenses
Delivery expenses
Depreciation of trucks
Selling expenses
Advertising
Administrative salaries and exp.
Allocated central office expenses
Profits Before Interest and Taxes
Identifiable Assets
Cash (average)
Accounts receivable (average)
Plant and Equipment
(net of Fr. 8,956,000 depreciation)
Total Identifiable Assets
Conditions for tourism
Average summer temperature

Actual
French Francs
('000)

29.2 C

Variance

4,445

69,600
0
14,285
0
83,885

221
8,280
1,102
250
7,649

37,288
12,972
1,623

3,000
1,920
36.36

32,100
11,520
1,374

5,188 U
1,452 U
249 U

3,985
2,634
1,291
31,741

414
325
37.08

4,430
2,795
1,402
30,264

445
161
111
1,477

9,072
1,823
20,846

8,611
1,823
19,830

461 U
0 F
1,016 F

3,544
1,992
4,448
4,177
3,161
754
2,770

3,360
1,978
4,210
4,455
3,074
619
2,134

184
14
238
278
87
135
636

551
2,474

366
2,266

185 U
208 U

18,451
21,476

18,399
21,031

52 U
445 U

29.8 C

F
F
U
F
F

F
F
F
F

U
U
U
F
U
U
F

Compagnie du Froid - Alternative Exhibits

Alternative Exhibit 3

Italian Region, 1996 Results

Volume
('000)

Actual
French Francs
('000)

Volume
('000)

Profit Plan
French Francs
('000)

Variance

Sales Data
Sales ice cream (volume in litres)
Sales "specialties" (litres)
Total sales

2,478
274
2,752

43,315
8,732
52,047

2,450
270
2,720

42,753
8,640
51,393

562 F
92 F
654 F

Cost of Goods Sold

Cost ice-cream
Dairy ingredients (litres)
Other ingredients (100 gr.)
Labor (hours)

1,955
1,375
30.90

20,079
8,003
1,098

1,911
1,323
28.82

19,874
7,673
1,020

205 U
330 U
78 U

255
196
21.92

2,619
1,670
779
17,799

257
197
22.50

2,673
1,665
797
17,691

54
5
18
108

4,431
427
12,941

4,459
427
12,805

28 F
0 F
136 F

1,226
771
1,342
5,028
2,242
475
754
1,103

1,286
771
1,227
5,185
2,178
475
619
1,064

421
1,393

366
1,470

55 U
77 F

10,791
12,605

10,785
12,621

6 U
16 F

Cost "specialties"
Dairy ingredients (litres)
Other ingredients (100 gr.)
Labor (hours)
Contribution margin
Other costs
Supervision, energy, maint,
Depreciation
Operating margin
Selling and Administrative Expenses
Delivery expenses
Depreciation of trucks
Selling expenses
Advertising
Administrative salaries and exp.
Rent
Allocated central office expenses
Profits Before Interest and Taxes
Identifiable Assets
Cash (average)
Accounts receivable (average)
Plant and Equipment
(net of Fr. 12,493,000 depreciation)
Total Identifiable Assets
Conditions for tourism
Average summer temperature

29.8 C

29.7 C

60
0
115
157
64
0
135
39

F
U
F
F

F
F
U
F
U
F
U
F

Compagnie du Froid - Alternative Exhibits

Alternative Exhibit 4

Spanish Region, 1996 Results

Volume
('000)

Actual
French Francs
('000)

Volume
('000)

Profit Plan
French Francs
('000)

Variance

Sales Data
Sales ice cream (volume in litres)
Sales "specialties" (litres)
Total sales

3,565
391
3,956

60,355
12,391
72,746

3,680
410
4,090

63,664
13,038
76,702

3,309 U
647 U
3,956 U

Cost of Goods Sold

Cost ice-cream
Dairy ingredients (litres)
Other ingredients (100 gr.)
Labor (hours)

2,262
1,447
28.51

22,778
8,581
909

2,760
1,766
33.45

28,152
10,419
1,060

5,374 F
1,838 F
151 F

Cost "specialties"
Dairy ingredients (litres)
Other ingredients (100 gr.)
Labor (hours)

353
269
31.53

3,555
2,179
1,005

381
299
34.17

3,886
2,482
1,083

331 F
303 F
78 F

Transfer from France

Contribution margin

8,280
25,459

0
29,620

8,280 U
4,161 U

Other costs
Supervision, energy, maint,
Depreciation
Operating margin

8,455
1,526
15,478

8,375
1,526
19,719

80 U
0 F
4,241 U

Selling and Administrative Expenses

Delivery expenses
Depreciation of trucks
Subcontracted transportation
Selling expenses
Advertising
Administrative salaries and exp.
Rent
Allocated central office expenses
Profits Before Interest and Taxes

2,957
1,657
299
3,067
5,496
2,514
392
754
(1,658)

2,872
1,612
0
3,228
5,490
2,422
392
619
3,084

381
1,039

366
1,649

15 U
610 F

18,883
20,303

18,599
20,614

284 U
311 F

Identifiable Assets
Cash (average)
Accounts receivable (average)
Plant and Equipment
(net of Fr. 6,516,000 depreciation)
Total Identifiable Assets
Conditions for tourism
Average summer temperature

28.5 C

30.2 C

85
45
299
161
6
92
0
135
4,742

U
U
U
F
U
U
F
U
U

Compagnie du Froid - Alternative Exhibits

Alternative Exhibit 5

1996 Ice-cream Transfers Betweeen France and Spain

Cost of
ingredients

Cost
per litre

Volume transferred (in '000 litres)

Actual Costs (in French Francs)
Dairy Ingredients
Other Ingredients
Labor

Total
(in '000 Francs)
600

8.08
2.81
0.35

4,848
1,686
210

Allocated fixed costs (in French Francs)

Other costs
Depreciation
S&A expenses

1.48
0.30
0.12

888
180
72

5% profit margin

0.66

396

13.80

8,280

Total transfer price

10.83
6.11
0.35