P&L Budgeting

Sales Budget -->

Volume Forecast

Bottom-Up

Last Year Actual Volume Bottom-Up

in '000 Q1 Q2 Q3 Q4 FY Q1
Distributor A 100 250 280 98 728 105
Distributor B 50 86 92 65 293 52
Distributor C 45 120 120 70 355 50
Total 195 456 492 233 1,376 206

Top-Down

Last Year Actual Volume Top-Down

in '000 Q1 Q2 Q3 Q4 FY Q1
Total Industry 18,525 43,320 46,740 22,135 130,720 19,507
Henry's Hats Market Share 1.1% 1.1% 1.1% 1.1% 1.1% 1.2%
Total 195 456 492 233 1,376 234

Triangulaion
Bottom-up 5.9%
Top-Down 20.0%
Average Growth 13.0%

Forecasted Volume

Last Year Actual Volume Forec

in '000 Q1 Q2 Q3 Q4 FY Q1
Volume 195 456 492 233 1,376 220

White Hats 130 304 328 155 917 147

Red Hats 65 152 164 78 459 73

White Hats 66.7% 66.7% 66.7% 66.7% 66.7% 66.7%

Red Hats 33.3% 33.3% 33.3% 33.3% 33.3% 33.3%
 Bottom-Up Volume Forecast
Q2 Q3 Q4 FY Growth %
263 294 103 764 5.0%
89 95 67 302 3.2%
132 132 77 391 10.0%
483 521 247 1,457 5.9%

Top-Down Volume Forecast

Q2 Q3 Q4 FY Growth %
45,616 49,217 23,308 137,648 5.3%
1.2% 1.2% 1.2% 1.2%
547 591 280 1,652 20.0%

Forecasted Volume
Q2 Q3 Q4 FY Growth %
515 556 263 1,555 13.0%

343 371 175 1036

172 185 88 518

66.7% 66.7% 66.7% 66.7%

33.3% 33.3% 33.3% 33.3%
Revenue Forecast

Last Year Actual Volume Forecasted Vo

in '000 Q1 Q2 Q3 Q4 FY Q1 Q2
Volume 195 456 492 233 1,376 220 515

White Hats 130 304 328 155 917 147 343

Red Hats 65 152 164 78 459 73 172

White Hats 66.7% 66.7% 66.7% 66.7% 66.7% 66.7% 66.7%

Red Hats 33.3% 33.3% 33.3% 33.3% 33.3% 33.3% 33.3%

Price White Hats 10 10 10 10 10 10 10

Price Red Hats 10 10 10 10 10 12 12

Revenue White Hats 1,300 3,040 3,280 1,553 9,173 1,469 3,434
Revenue Red Hats 650 1,520 1,640 777 4,587 881 2,061

Total Revenue 1,950 4,560 4,920 2,330 13,760 2,350 5,495

 Forecasted Volume
Q3 Q4 FY Growth %
556 263 1,555 13.0%

371 175 1036

185 88 518

66.7% 66.7% 66.7%

33.3% 33.3% 33.3%

10 10 10
12 12 12

3,706 1,755 10,364

2,223 1,053 6,218

5,929 2,808 16,582

Production Budget -->
Production & Direct Materials

Last Year Actual Volume Forecasted Volume

in '000 Q1 Q2 Q3 Q4 FY Q1 Q2 Q3
Volume 195 456 492 233 1,376 220 515 556

White Hats 130 304 328 155 917 147 343 371
Red Hats 65 152 164 78 459 73 172 185

Target Warehouse Level:

White Hats 25% 25% 25% 25% 25% 25% 25%
Red Hats 30% 30% 30% 30% 30% 30% 30%

Beginning Inventory:
White Hats 32 33 76 82 39 37 86
Red Hats 16 20 46 49 23 22 52

Ending Inventory:
White Hats 33 76 82 39 37 86 93
Red Hats 20 46 49 23 22 52 56

Production:
White Hats 131 348 334 112 924 145 393 377
Red Hats 69 178 168 52 466 72 201 189

Direct Materials

Last Year Actual Production Forecasted Production

Production:
White Hats 131 348 334 112 924 145 393 377
Red Hats 69 178 168 52 466 72 201 189

Fabric per Hat (m²):

White Hats 0.3 0.3 0.3 0.3 0.3 0.3 0.3 0.3
Red Hats 0.3 0.3 0.3 0.3 0.3 0.3 0.3 0.3

Price of 1 m² Fabric:
White Hats -4 -4 -4 -4 -4 -4 -4 -4
Red Hats -5 -5 -5 -5 -5 -5 -5 -5

Fabric Purchases
White Hats -157 -417 -401 -135 -1109 -174 -471 -453
Red Hats -103 -267 -251 -78 -699 -108 -302 -284
 Forecasted Volume
Q4 FY Growth %
263 1,555 13%

175 1,036
88 518

25%
30%

93
56

44
26

127 1041
58 521

Forecasted Production

127 1041
58 521

0.3 0.3
0.3 0.3

-4 -4
-5 -5

-152 -1250
-88 -782
Direct Labour

Last Year Actual Volume Forecasted Volum

in '000 Q1 Q2 Q3 Q4 FY Q1 Q2
Volume 195 456 492 233 1,376 220 515

White Hats 130 304 328 155 917 147 343

Red Hats 65 152 164 78 459 73 172

Production:
White Hats 131 348 334 112 924 145 393
Red Hats 69 178 168 52 466 72 201

Number of Direct Labour Hours per Hat:

White Hats 0.25 0.25 0.25 0.25 0.25 0.25
Red Hats 0.25 0.25 0.25 0.25 0.25 0.25

Hours of Direct Labour Needed:

White Hats (000s) 33 87 84 28 36 98
Red Hats (000s) 17 45 42 13 18 50

Average Cost of Direct Labour:

White Hats -10 -10 -10 -10 -10 -10
Red Hats -10 -10 -10 -10 -10 -10

Direct Labour Expense:

White Hats -326 -869 -835 -280 -2310 -362 -981
Red Hats -171 -445 -419 -129 -1165 -180 -503
Forecasted Volume
Q3 Q4 FY Growth %
556 263 1,555 13.0%

371 175 1,036

185 88 518

377 127 1041 0

189 58 521 0

0.25 0.25
0.25 0.25

94 32
47 15

-10 -10
-10 -10

-943 -317 -2603

-473 -146 -1303
Overhead

Last Year Actual Volume

in '000 Q1 Q2 Q3 Q4 FY
Production:
White Hats 131 348 334 112 924
Red Hats 69 178 168 52 466

Indirect Personnel (number of people) 3 3 3 3

Indirect Personnel Average Salary (000s) -40 -40 -40 -40

Indirect Labour Expense: -120 -120 -120 -120 -480

Number of Hats to be Produced 199 526 502 164

Average Utility Expense per Hat -0.1 -0.1 -0.1 -0.1

Utility Expense: -20 -53 -50 -16 -139

Rent Expense: -400 -400 -400 -400 -1600

Depreciation: -50 -51 -59 -69 -229

 Forecasted Volume
Q1 Q2 Q3 Q4 FY Growth %

145 393 377 127 1041

72 201 189 58 521

4 4 4 4
-40 -40 -40 -40

-160 -160 -160 -160 -640

217 594 567 185

-0.1 -0.1 -0.1 -0.1

-22 -59 -57 -19 -156

-400 -400 -400 -400 -1600

Cost of Goods Sold

Last Year Actual Volume Forecasted

in '000 Q1 Q2 Q3 Q4 FY Q1 Q2
Fabric Purchases -259 -684 -652 -212 -1808 -282 -773
Direct Labour -498 -1314 -1254 -410 -3475 -542 -1484
Indirect Labour -120 -120 -120 -120 -480 -160 -160
Utility Expense (production) -20 -53 -50 -16 -139 -22 -59
Rent Expense (production) -400 -400 -400 -400 -1600 -400 -400
Cost of Goods Sold -1,297 -2,571 -2,476 -1,158 -7,502 -1,406 -2,877
Forecasted Volume
Q3 Q4 FY Growth %
-737 -240 -2031
-1417 -463 -3906
-160 -160 -640
-57 -19 -156
-400 -400 -1600
-2,770 -1,281 -8,334
SG&A Budget -->
SG&A

Last Year Actuals Fore

in '000 Q1 Q2 Q3 Q4 FY Q1 Q2
Volume 195 456 492 233 1,376 220 515
Revenue 1,950 4,560 4,920 2,330 13,760 2,350 5,495

Last Year Actual SG&A Forecast

in '000 Q1 Q2 Q3 Q4 FY Q1 Q2
Selling Commissions -60 -228 -246 -66 -600 -102 -240
as a % of Revenues -3% -5% -5% -3% -4% -4% -4%

Transportation -26 -94 -101 -32 -253 -31 -113

as a % of Revenues -1% -2% -2% -1% -2% -1% -2%

External Services -35 -150 -195 -118 -498 -42 -181

as a % of Revenues -2% -3% -4% -5% -4% -2% -3%

Administration -300 -300 -300 -300 -1200 -300 -300

as a % of Revenues -15% -7% -6% -13% -9% -13% -5%

Office Rent -40 -40 -40 -40 -160 -40 -40

as a % of Revenues -2% -1% -1% -2% -1% -2% -1%

SG&A -461 -812 -882 -556 -2,711 -516 -874

 Forecast
Q3 Q4 FY Growth %
556 263 1,555 13.0%
5,929 2,808 16,582 20.5%

Forecasted SG&A
Q3 Q4 FY Driver
-259 -122 -723 % of Revenues
-4% -4% -4%

-122 -39 -305 % of Revenues

-2% -1% -2%

-235 -142 -600 % of Revenues

-4% -5% -4%

-300 -300 -1200 Fixed Costs

-5% -11%

-40 -40 -160 Fixed Costs

-1% -1% -1%

-955 -643 -2,988

Balance Sheet Budgeting -->
Working Capital

Last Year Actuals

in '000 Q1 Q2 Q3 Q4 FY Q1
Revenue 1,950 4,560 4,920 2,330 13,760 2,350
Cost of Goods Sold -1,297 -2,571 -2,476 -1,158 -7,502 -1,406

Accounts Receivable 650 1520 1640 777 783

Days Sales Outstanding (DSO) 30 30 30 30 30

Trade Payables 288 571 550 257 312

Days Payables Outstanding (DPO) 20 20 20 20 20

Inventory 32 122 131 35 59

Days Inventory Outstanding (DIO) 2 4 5 3 4
Working Capital 394 1070 1221 554 530
 Forecast
Q2 Q3 Q4 FY Growth %
5,495 5,929 2,808 16,582 20.5%
-2,877 -2,770 -1,281 -8,334 11.1%

1832 1976 936

30 30 30

639 616 285

20 20 20

137 148 70
4 5 5
1330 1509 721
Fixed Assets

Last Year Actuals

in '000 Q1 Q2 Q3 Q4 FY Q1
Revenue 1,950 4,560 4,920 2,330 13,760 2,350

Beginning value of PP&E 1000 1,048 1223 1408 1,454

CAPEX 98 228 246 117 688 117

as a % of Revenue 5% 5% 5% 5% 5%

D&A -50 -52 -61 -70 -234 -73

as a % of Beginning Value 5% 5% 5% 5% 5%

Property, Plant & Equipment 1,048 1,223 1,408 1,454 1,499

 Forecast
Q2 Q3 Q4 FY Growth %
5,495 5,929 2,808 16,582 20.5%

1,499 1,699 1,910

275 296 140 829

5% 5% 5%

-75 -85 -96 -328

5% 5% 5%

1,699 1,910 1,955

Financial Statements -->
Income Statement

Last Year Actuals

in '000 Q1 Q2 Q3 Q4 FY Q1
Revenue 1,950 4,560 4,920 2,330 13,760 2,350
Cost of Goods Sold -1,297 -2,571 -2,476 -1,158 -7,502 -1,406
Gross Profit 653 1,989 2,444 1,172 6,258 944
SG&A Expenses -461 -812 -882 -556 -2711 -516
EBITDA 192 1,177 1,562 616 3,547 428
D&A -50 -52 -61 -70 -234 -73
EBIT 142 1,125 1,500 545 3,313 355
Taxes -21 -169 -225 -82 -497 -53
as a % of Operating Income (EBIT) 15% 15% 15% 15% 15% 15%
Net Income 121 956 1,275 463 2,816 302
 Forecast
Q2 Q3 Q4 FY Growth %
5,495 5,929 2,808 16,582 20.5%
-2,877 -2,770 -1,281 -8,334 11.1%
2,618 3,159 1,526 8,247 31.8%
-874 -955 -643 -2988 10.2%
1,745 2,203 883 5,259 48.3%
-75 -85 -96 -328 40.3%
1,670 2,119 788 4,931 48.9%
-250 -318 -118 -740 48.9%
15% 15% 15% 15% 0.0%
1,419 1,801 670 4,192 48.9%