Keurig Green Mountain, Inc.

Consolidated Statements of Operations

(Dollars in thousands except per share data)
Fiscal years ended

Projection Projection Projection Projection*

September, September, September, September, September 26, September 27, September 28,
2019 2018 2017 2016 2015 2014 2013
Net sales $ 4,896,465 $ 4,799,515 $ 4,704,485 $ 4,611,336 $ 4,520,031 $ 4,707,680 $ 4,358,100
Cost of sales $ 3,155,065 $ 3,092,594 $ 3,031,361 $ 2,971,340 $ 2,912,507 $ 2,891,820 $ 2,738,714

Gross profit $1,741,401 $1,706,921 $1,673,124 $1,639,996 $1,607,524 $1,815,860 $1,619,386

Selling and operating expenses $584,169 $572,603 $561,265 $550,152 $539,259 $561,573 $560,430
General and administrative expenses $311,542 $305,373 $299,327 $293,400 $287,591 $307,046 $293,729
Restructuring expenses $15,250 $15,250 $15,250 $15,250 $15,250 $0 $0

Operating income $ 830,440 $ 813,695 $ 797,282 $ 781,194 $ 765,424 $ 947,241 $ 765,227

Other income, net $ 1,217 $ 1,192 $ 1,169 $ 1,146 $ 1,123 $ 262 $ 960
Gain on financial instruments, net $ 8,750 $ 8,576 $ 8,407 $ 8,240 $ 8,077 $ 8,307 $ 5,513
Loss on foreign currency, net $ (24,012) $ (23,537) $ (23,071) $ (22,614) $ (22,166) $ (19,746) $ (12,649)
Interest expense $ (2,039) $ (1,998) $ (1,959) $ (1,920) $ (1,882) $ (11,691) $ (18,177)

Income before income taxes $ 814,355 $ 797,929 $ 781,828 $ 766,046 $ 750,576 $ 924,373 $ 740,874
Income tax expense $ (287,997) $ (282,188) $ (276,493) $ (270,912) $ (251,948) $ (326,959) $ (256,771)

Net Income $ 526,358 $ 515,741 $ 505,334 $ 495,134 $ 498,628 $ 597,414 $ 484,103

Net income attributable to
noncontrolling interests** $ - $ - $ - $ - $ 353 $ 896 $ 871

Net income attributable to Keurig $ 526,358 $ 515,741 $ 505,334 $ 495,134 $ 498,275 $ 596,518 $ 483,232
Profit Margin 10.75% 10.75% 10.74% 10.74% 11.02% 12.67% 11.09%

*Keurig Green Mountian was purchased by JAB Holdings & went private starting in the Fiscal Year 2016. thus the projection for a year that has already occurred.
**Noncontrolling Interest Income not a factor now that Keurig is privately owned.

For this set of Preliminary Projections for Keurig, the Net Sales have been used as the cost driver, using the net average growth percentage (2.02%) of the three prior fiscal years
to help project both revenue and expenses through 2019. The two exceptions for this steady growth projection are the "Restructuring Expenses" & the previously annotated
"Net Income Attributable to Noncontrolling Interests". "Restructuring Expenses" have been kept at the $15.25 million amount from 2015 in anticipation of continued
restructuring of Keurig as both a newly private organization under the JAB Holdings umbrella, as well as for this project's intended expansion of Keurig's sales/operations into the
United Kingdom for a new market. These expansion-related costs explain why the profit margin suffers a small decrease in the projected future years in spite of the ideal
increases in sales.
 Keurig Green Mountain, Inc.

Consolidated Statements of Operations

(Dollars in thousands except per share data)
Fiscal years ended

Projection Projection Projection Projection*

September, September, September, September,
2019 2018 2017 2016
Net sales $ 5,875,758 $ 5,759,418 $ 5,645,382 $ 5,533,603
Cost of sales $ 3,155,065 $ 3,092,594 $ 3,031,361 $ 2,971,340

Gross profit $2,720,694 $2,666,824 $2,614,021 $2,562,263

Selling and operating expenses $584,169 $572,603 $561,265 $550,152
General and administrative expenses $311,542 $305,373 $299,327 $293,400
Restructuring expenses $15,250 $15,250 $15,250 $15,250

Operating income $ 1,809,733 $ 1,773,598 $ 1,738,179 $ 1,703,461

Other income, net $ 1,217 $ 1,192 $ 1,169 $ 1,146
Gain on financial instruments, net $ 8,750 $ 8,576 $ 8,407 $ 8,240
Loss on foreign currency, net $ (24,012) $ (23,537) $ (23,071) $ (22,614)
Interest expense $ (2,039) $ (1,998) $ (1,959) $ (1,920)

Income before income taxes $ 1,793,648 $ 1,757,832 $ 1,722,725 $ 1,688,313

Income tax expense $ (634,324) $ (621,657) $ (609,242) $ (597,072)

Net Income $ 1,159,324 $ 1,136,175 $ 1,113,483 $ 1,091,241

Net income attributable to
noncontrolling interests** $ - $ - $ - $ -

Net income attributable to Keurig $ 1,159,324 $ 1,136,175 $ 1,113,483 $ 1,091,241

Profit Margin 19.73% 19.73% 19.72% 19.72%

*Keurig Green Mountian was purchased by JAB Holdings & went private starting in the Fiscal Year 2016. thus t
**Noncontrolling Interest Income not a factor now that Keurig is privately owned.

For this set of Preliminary Projections for Keurig, the Net Sales have been used as the cost driver, using the net aver
to help project both revenue and expenses through 2019. The two exceptions for this steady growth projection are
"Net Income Attributable to Noncontrolling Interests". "Restructuring Expenses" have been kept at the $15.25 millio
restructuring of Keurig as both a newly private organization under the JAB Holdings umbrella, as well as for this proj
United Kingdom for a new market. These expansion-related costs explain why the profit margin suffers a small decr
increases in sales.
untain, Inc.

ts of Operations
ept per share data)
years ended

September 26, September 27, September 28,

2015 2014 2013
$ 4,520,031 $ 4,707,680 $ 4,358,100
$ 2,912,507 $ 2,891,820 $ 2,738,714

$1,607,524 $1,815,860 $1,619,386

$539,259 $561,573 $560,430
$287,591 $307,046 $293,729
$15,250 $0 $0

$ 765,424 $ 947,241 $ 765,227

$ 1,123 $ 262 $ 960
$ 8,077 $ 8,307 $ 5,513
$ (22,166) $ (19,746) $ (12,649)
$ (1,882) $ (11,691) $ (18,177)

$ 750,576 $ 924,373 $ 740,874

$ (251,948) $ (326,959) $ (256,771)

$ 498,628 $ 597,414 $ 484,103

$ 353 $ 896 $ 871

$ 498,275 $ 596,518 $ 483,232

11.02% 12.67% 11.09%

iscal Year 2016. thus the projection for a year that has already occurred.

iver, using the net average growth percentage (2.02%) of the three prior fiscal years
growth projection are the "Restructuring Expenses" & the previously annotated
ept at the $15.25 million amount from 2015 in anticipation of continued
, as well as for this project's intended expansion of Keurig's sales/operations into the
gin suffers a small decrease in the projected future years in spite of the ideal
 Keurig Green Mountain, Inc.

Consolidated Statements of Operations

(Dollars in thousands except per share data)
Fiscal years ended

Projection Projection Projection Projection*

September, September, September, September,
2019 2018 2017 2016
Net sales $ 3,917,172 $ 3,839,612 $ 3,763,588 $ 3,689,069
Cost of sales $ 2,524,052 $ 2,474,075 $ 2,425,089 $ 2,377,072

Gross profit $1,393,121 $1,365,537 $1,338,499 $1,311,997

Selling and operating expenses $584,169 $572,603 $561,265 $550,152
General and administrative expenses $311,542 $305,373 $299,327 $293,400
Restructuring expenses $15,250 $15,250 $15,250 $15,250

Operating income $ 482,159 $ 472,311 $ 462,657 $ 453,194

Other income, net $ 1,217 $ 1,192 $ 1,169 $ 1,146
Gain on financial instruments, net $ 8,750 $ 8,576 $ 8,407 $ 8,240
Loss on foreign currency, net $ (24,012) $ (23,537) $ (23,071) $ (22,614)
Interest expense $ (2,039) $ (1,998) $ (1,959) $ (1,920)

Income before income taxes $ 466,075 $ 456,545 $ 447,203 $ 438,046

Income tax expense $ (164,827) $ (161,457) $ (158,153) $ (154,915)

Net Income $ 301,247 $ 295,088 $ 289,050 $ 283,131

Net income attributable to
noncontrolling interests** $ - $ - $ - $ -

Net income attributable to Keurig $ 301,247 $ 295,088 $ 289,050 $ 283,131

Profit Margin 7.69% 7.69% 7.68% 7.67%

*Keurig Green Mountian was purchased by JAB Holdings & went private starting in the Fiscal Year 2016. thus t
**Noncontrolling Interest Income not a factor now that Keurig is privately owned.

For this set of Preliminary Projections for Keurig, the Net Sales have been used as the cost driver, using the net aver
to help project both revenue and expenses through 2019. The two exceptions for this steady growth projection are
"Net Income Attributable to Noncontrolling Interests". "Restructuring Expenses" have been kept at the $15.25 millio
restructuring of Keurig as both a newly private organization under the JAB Holdings umbrella, as well as for this proj
United Kingdom for a new market. These expansion-related costs explain why the profit margin suffers a small decr
increases in sales.
untain, Inc.

ts of Operations
ept per share data)
years ended

September 26, September 27, September 28,

2015 2014 2013
$ 4,520,031 $ 4,707,680 $ 4,358,100
$ 2,912,507 $ 2,891,820 $ 2,738,714

$1,607,524 $1,815,860 $1,619,386

$539,259 $561,573 $560,430
$287,591 $307,046 $293,729
$15,250 $0 $0

$ 765,424 $ 947,241 $ 765,227

$ 1,123 $ 262 $ 960
$ 8,077 $ 8,307 $ 5,513
$ (22,166) $ (19,746) $ (12,649)
$ (1,882) $ (11,691) $ (18,177)

$ 750,576 $ 924,373 $ 740,874

$ (251,948) $ (326,959) $ (256,771)

$ 498,628 $ 597,414 $ 484,103

$ 353 $ 896 $ 871

$ 498,275 $ 596,518 $ 483,232

11.02% 12.67% 11.09%

iscal Year 2016. thus the projection for a year that has already occurred.

iver, using the net average growth percentage (2.02%) of the three prior fiscal years
growth projection are the "Restructuring Expenses" & the previously annotated
ept at the $15.25 million amount from 2015 in anticipation of continued
, as well as for this project's intended expansion of Keurig's sales/operations into the
gin suffers a small decrease in the projected future years in spite of the ideal