Target Target

Historical figures Historical figures

Income Statement (in millions) 2016 2017 2018 Income Statement (in millions) 2016
Sales (O) 37,410 42,025 46,839 Sales (O) 37,410
Cost of goods sold (O) -25,498 -28,389 -31,445 Cost of goods sold (O) -25,498
Gross profit 11,912 13,636 15,394 Gross profit 11,912
SGA (O) -8,134 -9,379 -10,534 SGA (O) -8,134
Depreciation (O) -967 -1,098 -1,259 EBITDA 3,778
Operating income 2,811 3,159 3,601 Depreciation (O) -967
Interest income (F) 25 30 28 EBIT 2,811
Interest expense (F) -584 -556 -570 Tax on operating income -1062
Income before tax 2,252 2,633 3,059 NOPAT 1,749
Tax expense (O+F) -851 -984 -1,146 Interest income (F) 25
Net income from continuing operations 1,401 1,649 1,913 Interest expense (F) -584
Income from discontinued operations (O) 247 190 1,313 +/- tax-shield from NFE 211
Net income 1,648 1,839 3,226 Net income from continuing operations 1,401
Income from discontinued operations (O) 247
Net income 1,648

Historical figures PROFITABILITY ANALYSIS

Selected Ratios 2016 2017 2018 2016
Sales growth 12.3 % 11.5 % ROIC
Sales growth reversion rate -0.9 % Using NOA averages
Gross profit margin 31.8 % 32.4 % 32.9 % WACC=8%
SGA/Sales 21.7 % 22.3 % 22.5 % EVA as (ROIC-WACC)x avg(NOA)
Depreciation/Gross prior-year PP&E 5.8 % 6.3 % EVA as NOPAT - WACC x avg(NOA)
Interest income/Prior-year cash balance 4.0 % 4.0 % PM
Interest expense/Prior-year interest-bearing debt 5.3 % 5.2 % ATO
Income tax expense/pretax income 37.8 % 37.4 % 37.5 % ROIC=PM x ATO
Marginal tax rate 37.50% 37.50% 37.50% ATO (not using average)
ROIC=PM x ATO
ROE from continuing op.
Using BVE averages
NBC
FLEV
ROE=ROIC+(ROIC-NBC)xFLEV

ROE including disc. Operations

GROWTH ANALYSIS
2016
Sustainable growht rate
g=ROE x (1-PO)
PO=Dividends/Net income
Dividends
PO=Dividends/Net income
g=ROE x (1-PO)

LIQUIDITY ANALYSIS
SHORT-TERM LIQUIDITY
Turn over rate of NOWC 8.08
Liquidity cycle 45.2
Current ratio 1.59
Quick ratio 0.95
LONG-TERM LIQUIDITY
Financial leverage 1.85
Solvency ratio 0.35
Interest coverage ratio 5.03
 Target Indexed Refromulated IS
Historical figures Historical figures
2017 2018 Income Statement (in millions) 2016 2017 2018
42,025 46,839 Sales (O) 100 112 125
-28,389 -31,445 Cost of goods sold (O) 100 111 123
13,636 15,394 Gross profit 100 114 129
-9,379 -10,534 SGA (O) 100 115 130
4,257 4,860 EBITDA 100 113 129
-1,098 -1,259 Depreciation (O) 100 114 130
3,159 3,601 EBIT 100 112 128
-1181 -1349 Tax on operating income 100 111 127
1,978 2,252 NOPAT 100 113 129
30 28 Interest income (F) 100 120 112
-556 -570 Interest expense (F) 100 95 98
197 203 +/- tax-shield from NFE 100 93 96
1,649 1,913 Net income from continuing operations 100 118 137
190 1,313 Income from discontinued operations (O) 100 77 532
1,839 3,226 Net income 100 112 196

ANALYSIS
2017 2018 2016 2017 2018
ROIC
9.58% 10.78% Using NOA at the end of prev. Period 9.97% 10.50%
WACC=8%
326.90 581.39
326.90 581.39
4.71% 4.81%
2.04 2.24
9.58% 10.78%
2.11755517 2.184451
9.97% 10.50%
 15.57% 15.84%
3.28% 3.85%
0.94984652 0.728571
15.57% 15.84%

17.37% 26.70%

ALYSIS
2017 2018

750 1,329
40.8 % 41.2 %
10.29% 15.70%

ALYSIS
QUIDITY
8.77 11.83
41.6 30.9
1.56 1.69
1.01 1.04
QUIDITY
1.82 1.48
0.35 0.40
6.01 6.64
Target Common size Refromulated IS
Historical figures
Income Statement (in millions) 2016 2017 2018
Sales (O) 100% 100% 100%
Cost of goods sold (O) -68% -68% -67%
Gross profit 32% 32% 33%
SGA (O) -22% -22% -22%
EBITDA 10% 10% 10%
Depreciation (O) -3% -3% -3%
EBIT 8% 8% 8%
Tax on operating income -3% -3% -3%
NOPAT 5% 5% 5%
Interest income (F) 0% 0% 0%
Interest expense (F) -2% -1% -1%
+/- tax-shield from NFE 1% 0% 0%
Net income from continuing operatio 4% 4% 4%
Income from discontinued operations 1% 0% 3%
Net income 4% 4% 7%
Target Target TA-Format
Historical figures Historical figures
Balance Sheet (in millions) 2016 2017 2018 Balance Sheet (in millions) 2016 2017 2018
Gross PP&E 18,936 19,880 22,846 Gross PP&E 18,936 19,880 22,846
Accumulated depreciation -3,629 -4,727 -5,986 Accumulated depreciation -3,629 -4,727 -5,986
Net PP&E (O) 15,307 15,153 16,860 Net PP&E (O) 15,307 15,153 16,860
Other non-current assets (O) 1,361 3,311 1,511 Other non-current assets (O) 1,361 3,311 1,511
Total non-current assets 16,668 18,464 18,371 ONCA 16,668 18,464 18,371

Inventories (O) 4,760 4,531 5,384 Cash (F) 758 708 2,245
Trade receivables (O) 5,565 4,621 5,069 FA 758 708 2,245
Other current assets (O) 852 3,092 1,224
Cash (F) 758 708 2,245 Inventories (O) 4,760 4,531 5,384
Total current assets 11,935 12,952 13,922 Trade receivables (O) 5,565 4,621 5,069
Other current assets (O) 852 3,092 1,224
TOTAL ASSETS 28,603 31,416 32,293 OCA 11,177 12,244 11,677

Share capital 76 76 76 TOTAL ASSETS (ONCA+FA+OCA) 28,603 31,416 32,293

Share premium 1,256 1,256 1,256
Retained earnings 8,711 9,800 11,697
Shareholders equity 10,043 11,132 13,029 Share capital 76 76 76
Share premium 1,256 1,256 1,256
Deferred tax (P) 1,451 1,815 2,010 Retained earnings 8,711 9,800 11,697
Long-term debt (F) 9,586 10,155 9,034 Shareholders equity 10,043 11,132 13,029
Total long-term liabilities 11,037 11,970 11,044
Deferred tax (P) 1,451 1,815 2,010
Current portion of long-term debt (F) 975 863 504 P 1,451 1,815 2,010
Accounts payable (O) 4,684 4,956 5,779
Accrued expenses (O) 1,545 2,188 1,633 Long-term debt (F) 9,586 10,155 9,034
Taxes payable (O) 319 307 304 Current portion of long-term debt (F) 975 863 504
Toal current liabilities 7,523 8,314 8,220 IBD 10,561 11,018 9,538
TOTAL EQUITY AND LIABILITIES 28,603 31,416 32,293 Accounts payable (O) 4,684 4,956 5,779
Accrued expenses (O) 1,545 2,188 1,633
Taxes payable (O) 319 307 304
OL 6,548 7,451 7,716
Historical figures
Selected Ratios 2016 2017 2018 TOTAL E+P+IBD+OL 28,603 31,416 32,293
Account receivable turnover rate 6.7 9.1 9.2
Inventory turnover rate 5.4 6.3 5.8
Deferred tax/PP&E 9.5 % 12.0 % 11.9 %
Account payable turnover rate 5.4 5.7 5.4
Accrued expenses turnover rate 5.3 4.3 6.5
Tax payable/Tax expense 37.5 % 31.2 % 26.5 %
Dividends (in millions) 750 1,329
Dividend ratio (Dividend/Net income) 40.8 % 41.2 %
Capital expenditures (CAPEX) - (in millions) 944 2,966
CAPEX/Sales 2.25% 6.33%
Installments interest-bearing debt 975 863 504
NOWC (in millions) 4,629 4,793 3,961
Change in NOWC (in millions) 164 -832
Other non current assets
Other current assets
 Target CE-Format Target NOA-Format
Historical figures Historical figures
Balance Sheet (in millions) 2016 2017 2018 Balance Sheet (in millions) 2016 2017 2018
Gross PP&E 18,936 19,880 22,846 Gross PP&E 18,936 19,880 22,846
Accumulated depreciation -3,629 -4,727 -5,986 Accumulated depreciation -3,629 -4,727 -5,986
Net PP&E (O) 15,307 15,153 16,860 Net PP&E (O) 15,307 15,153 16,860
Other non-current assets (O) 1,361 3,311 1,511 Other non-current assets (O) 1,361 3,311 1,511
Deferred tax (P) -1,451 -1,815 -2,010 Deferred tax (P) -1,451 -1,815 -2,010
NONCA 15,217 16,649 16,361 NONCA 15,217 16,649 16,361
Inventories (O) 4,760 4,531 5,384 Inventories (O) 4,760 4,531 5,384
Trade receivables (O) 5,565 4,621 5,069 Trade receivables (O) 5,565 4,621 5,069
Other current assets (O) 852 3,092 1,224 Other current assets (O) 852 3,092 1,224
Accounts payable (O) -4,684 -4,956 -5,779 Accounts payable (O) -4,684 -4,956 -5,779
Accrued expenses (O) -1,545 -2,188 -1,633 Accrued expenses (O) -1,545 -2,188 -1,633
Taxes payable (O) -319 -307 -304 Taxes payable (O) -319 -307 -304
NOWC 4,629 4,793 3,961 NOWC 4,629 4,793 3,961
NOA (NONCA+NOWC) 19,846 21,442 20,322 NOA (NONCA+NOWC) 19,846 21,442 20,322

Cash (F) 758 708 2,245

FA 758 708 2,245 Share capital 76 76 76
Share premium 1,256 1,256 1,256
TOTAL CE (NOA+FA) 20,604 22,150 22,567 Retained earnings 8,711 9,800 11,697
Shareholders equity 10,043 11,132 13,029

Share capital 76 76 76 Long-term debt (F) 9,586 10,155 9,034

Share premium 1,256 1,256 1,256 Current portion of long-term 975 863 504
Retained earnings 8,711 9,800 11,697 Cash (F) -758 -708 -2,245
Shareholders equity 10,043 11,132 13,029 NIBD 9,803 10,310 7,293
TOTAL E+NIBD 19,846 21,442 20,322
Long-term debt (F) 9,586 10,155 9,034
Current portion of long-term debt (F) 975 863 504
IBD 10,561 11,018 9,538
TOTAL E+IBD 20,604 22,150 22,567
 Target Index NOA-Format Target Common Size NOA-Format
Historical figures Historical figures
Balance Sheet (in millions) 2016 2017 2018 Balance Sheet (in millions) 2016 2017 2018
Gross PP&E 100 105 121 Gross PP&E 95.4 % 92.7 % 112.4 %
Accumulated depreciation 100 130 165 Accumulated depreciation -18.3 % -22.0 % -29.5 %
Net PP&E (O) 100 99 110 Net PP&E (O) 77.1 % 70.7 % 83.0 %
Other non-current assets (O) 100 243 111 Other non-current assets (O) 6.9 % 15.4 % 7.4 %
Deferred tax (P) 100 125 139 Deferred tax (P) -7.3 % -8.5 % -9.9 %
NONCA 100 109 108 NONCA 76.7 % 77.6 % 80.5 %
Inventories (O) 100 95 113 Inventories (O) 24.0 % 21.1 % 26.5 %
Trade receivables (O) 100 83 91 Trade receivables (O) 28.0 % 21.6 % 24.9 %
Other current assets (O) 100 363 144 Other current assets (O) 4.3 % 14.4 % 6.0 %
Accounts payable (O) 100 106 123 Accounts payable (O) -23.6 % -23.1 % -28.4 %
Accrued expenses (O) 100 142 106 Accrued expenses (O) -7.8 % -10.2 % -8.0 %
Taxes payable (O) 100 96 95 Taxes payable (O) -1.6 % -1.4 % -1.5 %
NOWC 100 104 86 NOWC 23.3 % 22.4 % 19.5 %
NOA (NONCA+NOWC) 100 108 102 NOA (NONCA+NOWC) 100.0 % 100.0 % 100.0 %

Share capital 100 100 100 Share capital 0.4 % 0.4 % 0.4 %
Share premium 100 100 100 Share premium 6.3 % 5.9 % 6.2 %
Retained earnings 100 113 134 Retained earnings 43.9 % 45.7 % 57.6 %
Shareholders equity 100 111 130 Shareholders equity 50.6 % 51.9 % 64.1 %

Long-term debt (F) 100 106 94 Long-term debt (F) 48.3 % 47.4 % 44.5 %
Current portion of long-term debt (F) 100 89 52 Current portion of long-term debt (F) 4.9 % 4.0 % 2.5 %
Cash (F) 100 93 296 Cash (F) -3.8 % -3.3 % -11.0 %
NIBD 100 105 74 NIBD 49.4 % 48.1 % 35.9 %
TOTAL E+NIBD 100 108 102 TOTAL E+NIBD 100.0 % 100.0 % 100.0 %
Target
Historical figures Forecast horizon
Cash Flow Statement (in millions) 2016 2017 2018 2019 2020 2021 2022 2023
NOPAT 1,978
+depreciation 1,098
-increase in NWC -164
-Net investments (NCA) -2,530
FCF to the Firm 382
New Net Financial Liabilities 457
Net financial expenses after tax -329
Free CF to equity holders 510
-dividends -750
Income from discontinuing operations 190
Cash surplus -50