Amount in $

Particulars
1995 1996 1997 1998 1999 2000 2001
Revenue 4760.8 6470.6 9186.5 9553.1 8776.9 8995.1 9488.8
COGS 2865.3 3906.7 5503.0 6065.5 5493.5 5403.8 5784.9
Gross Profit 1895.5 2563.9 3683.5 3487.6 3283.4 3591.3 3703.9
Selling and Admin Expenses 1209.8 1588.6 2303.7 2623.8 2426.6 2606.4 2689.7
Operating Income 685.7 975.3 1379.8 863.8 856.8 984.9 1014.2
Interest Expenses 24.2 39.5 52.3 60.0 44.1 45.0 58.7
Other Net Expenses 11.7 36.7 32.3 20.9 21.5 23.2 34.1
Net Restructuring Charge 129.9 45.1 -2.5
Income Before Income Tax 649.8 899.1 1295.2 653.0 746.1 919.2 921.4
Income Tax 250.2 345.9 499.4 253.4 294.7 340.1 331.7
Net Income 399.6 553.2 795.8 399.6 451.4 579.1 589.7

Growth (%)
Revenue 35.91 41.97 3.99 -8.13 2.49 5.49
Operating Income 42.23 41.47 -37.40 -0.81 14.95 2.97
Net Income 38.44 43.85 -49.79 12.96 28.29 1.83

Margin (%)
Gross Margin 39.62 40.10 36.51 37.41 39.93 39.03
Operating Margin 15.07 15.02 9.04 9.76 10.95 10.69
Net Margin 8.55 8.66 4.18 5.14 6.44 6.21

Effective Tax Rate (%) 38.47 38.56 38.81 39.50 37.00 36.00
Particulars Am
Assumptions: 2001 2002 2003

Revenue Growth(%) 7.0 6.5

COGS/Sales(%) 60.0 60.0
SAG&Sales(%) 28.0 27.5
Tax Rate(%) 38.0 38.0
Current Assets/Sales(%) 38.0 38.0
Current Liabilities/Sales(%) 11.5 11.5
Annual Depreciation and Capex(equal to each other)
Cost of Capital(%) 12.00
Terminal Value Growth Rate(%) 3.00

Discounted Cash Flow (in million of dollars except per-share data)

Am
Particulars
2001 2002 2003
Revenue 9488.80 10153.02 10812.96
COGS 5784.90 6091.81 6487.78
Gross Profit 3703.90 4061.21 4325.18
Selling and Administration Expenses 2689.70 2842.84 2973.56
Operating Income 1014.20 1218.36 1351.62
Taxes 462.98 513.62
NOPAT 755.38 838.00
Capex, Net of Depreciation
Change in NWC 8.80 -174.90
Free Cash Flwo 764.18 663.10
Terminal Value
Total Flow 764.18 663.10
Present Value of Flow 682.30 528.60

Enterprise Value 11415.4

Less: Current Outstanding Debt 1296.6
Equity Value 10118.8
Current share Outstanding 271.5
Equity Value per Share 37.27
 Amount in Dollars($)
20041 2005 2006 2007 2008 2009 2010 2011

6.5 6.5 6.0 6.0 6.0 6.0 6.0 6.0

59.5 59.5 59.0 59.0 58.5 58.5 58.0 58.0
27.0 26.5 26.0 25.5 25.0 25.0 25.0 25.0
38.0 38.0 38.0 38.0 38.0 38.0 38.0 38.0
38.0 38.0 38.0 38.0 38.0 38.0 38.0 38.0
11.5 11.5 11.5 11.5 11.5 11.5 11.5 11.5

Amount in Dollars($)
20041 2005 2006 2007 2008 2009 2010 2011
11515.80 12264.33 13000.19 13780.20 14607.02 15483.44 16412.44 17397.19
6851.90 7297.28 7670.11 8130.32 8545.10 9057.81 9519.22 10090.37
4663.90 4967.05 5330.08 5649.88 6061.91 6425.63 6893.23 7306.82
3109.27 3250.05 3380.05 3513.95 3651.75 3870.86 4103.11 4349.30
1554.63 1717.01 1950.03 2135.93 2410.16 2554.77 2790.12 2957.52
590.76 652.46 741.01 811.65 915.86 970.81 1060.24 1123.86
963.87 1064.54 1209.02 1324.28 1494.30 1583.96 1729.87 1833.66

-186.30 -198.40 -195.00 -206.70 -219.10 -232.30 -264.20 -261.00

777.57 866.14 1014.02 1117.58 1275.20 1351.66 1465.67 1572.66
17998.30
777.57 866.14 1014.02 1117.58 1275.20 1351.66 1465.67 19570.96
553.50 550.50 575.40 566.20 576.80 545.90 535.00 6301.20

Current Share Price 42.09

 Consolidated Balance Sheet

Amount in $
Particulars
2000 2001
Assets
Current Assets
Cash and Cash Equivalents 254.3 304.0
Accounts Receivables 1569.4 1621.4
Inevntories 1446.0 1424.1
Deferred Income Tax 111.5 113.3
Prepaid Expenses 215.2 162.5
Total Current Assets 3596.4 3625.3
Fixed Assets
Net Property, Plants and Equipments 1583.4 1618.8
Net Identifiable Intangible Assets and Goodwill 410.9 397.3
Deferred Income Tax and Other Assets 266.2 178.2
Total Fixed Assets 2260.5 2194.3
Total Assets 5856.9 5819.6

Liabilities and Shareholders Equity

Current Liabilities
Current Portion of Long Term Debt 50.1 5.4
Notes Payable 924.2 855.3
Accounts Payable 543.8 432.0
Accrued Liabilities 621.9 472.1
Income Tax Payable 21.9
Total Current Liabilities 2140 1786.7
Long Term Liabilities
Long Term Debt 470.3 435.9
Deferred Income Tax and Other Liabilities 110.3 102.2
Redeemable Preferred Stock 0.3 0.3
Total Long Term Liabilities 580.9 538.4
Shareholders Equity
Common Stock @Par 2.8 2.8
Caiptal in Excess of Stated Value 369.0 459.4
Unearned Stock Compensation -11.7 -9.9
Accumulated Other Comprehensive Income -111.1 -152.1
Retained Earnings 2887.0 3194.3
Total Shareholders Equity 3136 3494.5
Total Liabilities and Shareholders Equity 5856.9 5819.6