· Accounting & Financial Analysis
· Analyze quarter-to-quarter (Q/Q) performance reflecting the firm’s operating trends.
· Does the firm’s historic financial performance support management’s future goals and strategies for the business?
· Is the firm’s historic financial performance in line with the industry norms?
·
Template for
Fiscal Year Ended
2Q2011
3Q2011
4Q2011
1Q2012
2Q2012
Industry / Peers
Net Revenue
Gross Margin %
Operating Profit
Net Earning
Leverage Ratio
Net Working Capital
Liquidity Ratio
Inventory turnover ratio
ROA, ROE
Income Statement Analysis
· Discuss revenue recognition policies.
· Discuss changes in trends; unusual or extraordinary items
· Quality of earning: potential red flags
Balance Sheet Analysis
· Major changes in assets/liabilities
· Significant trends in liquidity, working capital and balance sheet ratios.
· Identify off-balance sheet exposure and identify potential impacts.
Cash Flow Statement Analysis
· Amount of cash generated;
· Source and uses of cash.
· Availability of funds to finance capital expenditures, expansion of business activity, etc.
5). Pro Forma Financial Analysis (Cash Flow Statements)
i). Three sets of financial projections are required (base or most likely case, worst case, best case). Results from all three cases are to be included in the forecast comparison spreadsheet. In each section the student should briefly summarize assumptions, the rationale behind the assumptions.
ii). Valuation using price multiples (comparable companies); Provide reasons why you select certain ratios
9). Conclusion: proposed action (buy, sell, hold, spin-off) and its justification
Historical Data29/11/2012 23:42Error check = OK= Input on this sheet= CalculationName - ScenarioHistoricalCurrencyOther inputsNANANANANANANANANANA----------Historical Income StatementRevenuesPositiveOther Operating RevenuesPositiveCosts of Goods SoldNegativeSelling, Gen & Admin ExpensesNegativeDepreciation ExpenseNegativeOther Operating ExpenseNegativeReported EBITA0000000000Goodwill WritedownsNegativeAmortization of IntangiblesNegativeNon-Operating IncomePositiveInterest IncomePositiveInterest ExpenseNegativeRestructuring ChargesNegativeSpecial ItemsEarnings Before Taxes0000000000Income TaxesNegativeMinority InterestIncome Before Extraord. Items0000000000Extraord. Items (After Tax)Net Income0000000000Preference dividendsNegativeEarnings for common shareholders0000000000Common dividendsNegativeRetained profit0000000000Statement of changes in equityBeginning Equity000000000Retained profit000000000Foreign Exchange Rate ChangesIssue of New Shares/buy backGoodwill Written OffNegativeOther Adjustments to Equity000000000Ending Equity0000000000Historical Balance SheetOperating CashPositiveExcess marketable securitiesPositiveAccounts ReceivablePositiveInventoriesPositiveOther Current AssetsPositiveTotal Current Assets0000000000Net Property Plant and EquipPositiveGoodwillPositiveAcquired ...
1. · Accounting & Financial Analysis
· Analyze quarter-to-quarter (Q/Q) performance reflecting the
firm’s operating trends.
· Does the firm’s historic financial performance support
management’s future goals and strategies for the business?
· Is the firm’s historic financial performance in line with the
industry norms?
·
Template for
Fiscal Year Ended
2Q2011
3Q2011
4Q2011
1Q2012
2Q2012
Industry / Peers
Net Revenue
Gross Margin %
Operating Profit
3. ROA, ROE
Income Statement Analysis
· Discuss revenue recognition policies.
· Discuss changes in trends; unusual or extraordinary items
· Quality of earning: potential red flags
Balance Sheet Analysis
· Major changes in assets/liabilities
· Significant trends in liquidity, working capital and balance
sheet ratios.
· Identify off-balance sheet exposure and identify potential
impacts.
Cash Flow Statement Analysis
· Amount of cash generated;
· Source and uses of cash.
· Availability of funds to finance capital expenditures,
expansion of business activity, etc.
5). Pro Forma Financial Analysis (Cash Flow Statements)
i). Three sets of financial projections are required (base or most
likely case, worst case, best case). Results from all three cases
are to be included in the forecast comparison spreadsheet. In
each section the student should briefly summarize assumptions,
the rationale behind the assumptions.
ii). Valuation using price multiples (comparable
companies); Provide reasons why you select certain ratios
9). Conclusion: proposed action (buy, sell, hold, spin-off) and
its justification
4. Historical Data29/11/2012 23:42Error check = OK= Input on
this sheet= CalculationName - ScenarioHistoricalCurrencyOther
inputsNANANANANANANANANANA----------Historical
Income StatementRevenuesPositiveOther Operating
RevenuesPositiveCosts of Goods SoldNegativeSelling, Gen &
Admin ExpensesNegativeDepreciation ExpenseNegativeOther
Operating ExpenseNegativeReported
EBITA0000000000Goodwill WritedownsNegativeAmortization
of IntangiblesNegativeNon-Operating IncomePositiveInterest
IncomePositiveInterest ExpenseNegativeRestructuring
ChargesNegativeSpecial ItemsEarnings Before
Taxes0000000000Income TaxesNegativeMinority
InterestIncome Before Extraord. Items0000000000Extraord.
Items (After Tax)Net Income0000000000Preference
dividendsNegativeEarnings for common
shareholders0000000000Common dividendsNegativeRetained
profit0000000000Statement of changes in equityBeginning
Equity000000000Retained profit000000000Foreign Exchange
Rate ChangesIssue of New Shares/buy backGoodwill Written
OffNegativeOther Adjustments to Equity000000000Ending
Equity0000000000Historical Balance SheetOperating
CashPositiveExcess marketable securitiesPositiveAccounts
ReceivablePositiveInventoriesPositiveOther Current
AssetsPositiveTotal Current Assets0000000000Net Property
Plant and EquipPositiveGoodwillPositiveAcquired Intangible
AssetsPositiveOther Operating AssetsPositiveInvestments &
AdvancesPositiveDeferred tax AssetPositiveOther Non-op
AssetsPositiveRetirement Related Assets (non-
operating)PositiveTotal Assets0000000000Short Term
DebtPositiveAccounts PayablePositiveTax
PayablePositiveDividends PayablePositiveOther Current
LiabilitiesPositiveTotal Current
Liabilities0000000000Balancing DebtPositiveLong Term
DebtPositiveDeferred Income TaxesPositiveOther operating
liabilitiesPositiveRestructuring ProvisionsPositiveIncome
5. smoothing ProvisionsPositiveOn-going operating
ProvisionsPositiveLong-term operating
ProvisionsPositiveRetirement Related
LiabilitiesPositiveMinority InterestPositivePreferred
StockPositiveTotal Long Term Liabilities0000000000Total
Common EquityPositiveTotal Liabs and
Equity0000000000Balance sheet checkOK0000000000Off
Balance Sheet ItemsNon-operating Component of Income
Taxes%Note: Use + if non-op income was positive and taxes
were paid, otherwise use - (negative)Non-opea Component of
Incr in Def Tax LiabNote: Use + if increase in net deferred tax
liabilityCapital ExpenditurePositiveInitial Cumulative Goodwill
Written OffPositiveInitial Cumulative Intangibles Written
OffPositiveMarket Value of Common EquityPositiveNon-
operating component of pension expensePositiveWeighted
Average Cost of Capital%Risk Free Rate (10 yr T-bond, avg
yr.)%Operating LeasesPositiveInterest rate on Operating Leases
%%Interest rate on Long-term operating Provision%Number of
ordinary shares (average) (000)PositiveNumber of ordinary
shares (year end) (000)PositiveAdditional number of shares if
fully diluted(000)PositivePar value of preference shares
(Currency)Positive
&L&"Times New Roman,Bold"McKinsey && Company
Confidential&C&F&RPage &P
&L&"Times New Roman,Bold"McKinsey && Company
Confidential&C&F&RPage &P
&L&"Times New Roman,Bold"McKinsey && Company
Confidential&C&F&RPage &P
&L&"Times New Roman,Bold"McKinsey && Company
Confidential&C&F&RPage &P
&L&"Times New Roman,Bold"McKinsey && Company
Confidential&C&F&RPage &P
&L&"Times New Roman,Bold"McKinsey && Company
Confidential&C&F&RPage &P
&C&F&RPage &P
&L&"Times New Roman,Bold"McKinsey && Company
6. Confidential&C&F&RPage &P
&L&"Times New Roman,Bold"McKinsey && Company
Confidential&C&F&RPage &P
&L&"Times New Roman,Bold"McKinsey && Company
Confidential&C&F&RPage &P
&L&"Times New Roman,Bold"McKinsey && Company
Confidential&C&F&RPage &P
&C&F&RPage &P
&L&"Times New Roman,Bold"McKinsey && Company
Confidential&C&F&RPage &P
&L&"Times New Roman,Bold"McKinsey && Company
Confidential&C&F&RPage &P
&L&"Times New Roman,Bold"McKinsey && Company
Confidential&C&F&RPage &P
&L&"Times New Roman,Bold"McKinsey && Company
Confidential&C&F&RPage &P
&L&"Times New Roman,Bold"McKinsey && Company
Confidential&C&F&RPage &P
&L&"Times New Roman,Bold"McKinsey && Company
Confidential&C&F&RPage &P
Forecast Drivers29/11/2012 23:42= Input on this sheet= Link to
historical data= Calculation= Input on this sheetError check =
OKName - ScenarioHistoricalDetailed ForecastKey driver
forecast000000CurrencyRange nameOther
inputsNANANANANANANANANANANANANANANANANA
NANANANANANANANANA--------------------------
GeneralNameNameNameScenarioScenarioScenarioLatest year
endYEdd/mm/yy or mm/dd/yyValuation dateVal_DateMust be
after latest year endEnd of detailed forecast
periodEnd_DFNAContinuing value yearCVY_DateNAEnter any
year end from NA to NACurrencyCurrencyCurrencye.g. DM,
US$UnitsUnits1e.g. 1,000Share price for comparison with
valuationText:HighHighLowLowOperationsP&LOperating
Revenue: % GrowthNANANANANANANANANAOperating
revenuesRevPositive000000000000000Other Revenue: %
GrowthNANANANANANANANANAOther
7. revenuesOORPositive000000000000000COGS: %
RevenueNANANANANANANANANANACost of Goods
SoldCOGSNegative000000000000000SGA: %
RevenueNANANANANANANANANANASGASGANegative000
000000000000Other Op Exp: %
RevenueNANANANANANANANANANAOther Operating
ExpenseOOENegative000000000000000Working capitalOp
Cash: % RevenueNANANANANANANANANANAOperating
cashOpCashPositive000000000000000Inventories: %
RevenueNANANANANANANANANANAInventoriesInvPositiv
e000000000000000Acc Rec: %
RevenuesNANANANANANANANANANAAccounts
receivableTradDebtPositive000000000000000Acc. Pay: %
RevenuesNANANANANANANANANANAAccounts
payableTradCredPositive000000000000000OCA: %
RevenuesNANANANANANANANANANAOther current
assetsOCAPositive000000000000000OCL: %
RevenuesNANANANANANANANANANAOther current
liabilitiesOCLPositive000000000000000Total operating
working capitalWC_Bal000000000000000WC
increase/(decrease)WC_Delta00000000000000WC: %
RevenuesNANANANANANANANANANANANANANANABal
ance Sheet ItemsProperty Plant & EquipPPE
NetPPE_NetPositive000000000000000Capital expenditure
optionEnter 1,2 or 311: Net PPE as %
revenuesNANANANANANANANANA2: % Operating
revenuesNANANANANANANANANA3: Cash amount
Currency000000000Capital
expenditureCapexPositive00000000000000Depreciation: % Net
PPE
b/fNANANANANANANANANADepreciationDepnNegative000
000000000000Balancing
itemNANANANANANANANANAOther historical fixed asset
movtsFA_Hist0NANANANANANANANAGoodwillOpening000
00000000000Additions/(disposals)GW_Cash000000000Writedo
wnsGW_AmortNegative0000000000ClosingGW_BalPositive000
8. 000000000000Initial goodwill written
offGW_InitPositive0Acquired
IntangiblesOpening00000000000000Additions/(disposals)Intang
_Cash000000000AmortisationIntang_AmortNegative000000000
0ClosingIntang_BalPositive000000000000000Initial intangibles
written offIntang_InitPositive0Other operating
assetsOpening00000000000000Additions/(disposals)OOA_Cash
0NANANANANANANANAClosingOOA_BalPositive00000000
0000000Other operating
liabilitiesOpening00000000000000Additions/(disposals)OOL_C
ash0NANANANANANANANAClosingOOL_BalPositive000000
000000000Non-operating
assetsOpening00000000000000Additions/(disposals)NOA_Cash
0NANANANANANANANAClosingNOA_BalPositive00000000
0000000Retirement Related
AssetsOpening00000000000000Increase/(decrease)RetRelA_Cas
h0NANANANANANANANAClosing
balanceRetRelA_BalPositive000000000000000Retirement
Related
LiabilitiesIncrease/(decrease)RetRel_Cash000000000Closing
balanceRetRel_BalPositive000000000000000Memo: %
RevenuesNANANANANANANANANANANANANANANANon
-operating
componentRetRel_Nonop0000000000InvestmentsOpening00000
000000000Additions/(disposals)Inv_Cash0NANANANANANA
NANAClosingInv_BalPositive000000000000000Off-Balance
Sheet ItemsOperating leasesImplied
principalOpLease_BalPositive0000000000Investment in
operating
leasesOpLease_Cash0NANANANANANANANA00000Interest
rate0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%Implied
interestOpLease_IntPositive00000000000000Adjustments to
operating valueValuation basisBook valuePV (discounted at
WACC)Excess Marketable SecuritiesEMS0Book0Financial
InvestmentsFFA0Max(BV,PV)00Excess pension
assetsPen_ExcessManual
9. calc30DebtMV_Debt0Book0Capitalized Operating
LeasesMV_OpLease0Book0Retirement Related
LiabilityMV_RetRel0Book0Preferred
StockMV_Prefs0Book0Minority
InterestMV_Min0Max(BV,PV)00Restructuring
ProvisionMV_Restr0Max(BV,PV)00Long-term operating
ProvisionMV_LTOp0Book0Value of Options
OutstandingOptionsManual calcValue of Future Stock
OptionsFuture_OptionsManual calcProvisions & Non-Op.
P&LNon-operating P&L itemsNon-operating income %
growthNANANANANANANANANANon-operating
income/(expense)NOI000000000000000Special (pretax)
income/(expense)SpecItem0000000000Extraordinary
items/(expense)ExtraordItem0000000000Income smoothing
ProvisionIncrease/(decrease)Prov_CashNegative000000000Clos
ing balanceProv_BalPositive000000000000000Memo: %
RevenuesNANANANANANANANANANANANANANANAOn-
going operating
ProvisionsIncrease/(decrease)OOP_Cash0NANANANANANAN
ANAClosing
balanceOOP_BalPositive000000000000000Restructuring
ProvisionsOpening00000000000000P&L
additionsRestr_ProfPositive0000000000Cash
paymentsRestr_CashNegative000000000ClosingRestr_BalPositi
ve000000000000000Long-term operating
ProvisionsOpening00000000000000Implied
InterestLOP_Int00000000000000Interest
RateLOP_IntR0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%Exp
ense00000000000000ClosingLOP_BalPositive0000000000Incre
ase/(decrease)LOP_Cash0NANANANANANANANA00000Mino
rity interestsOpening00000000000000P&L attributed
(+ve)Min_ProfPositive0000000000Cash
paymentsMin_CashNegative000000000ClosingMin_BalPositive
000000000000000Debt Finance & WACCInterest ratesExcess
cashBalancing debtShort term debtLong term debt - 1Long term
debt - 2Historical balancesExcess
10. cashCashPositive000000000000000Balancing
debtODPositive000000000000000Short term
debtSTD_BalPositive000000000000000Long term debt -
1000000000000000Long term debt - 2Use this if you want to
subdivide
LTD00000TotalLTD_BalPositive000000000000000Scheduled
additions/(repayments)Short term
debtSTD_Cash000000000Long term debt - 1Long term debt -
2TotalLTD_Cash00000000000000Interest calculationsExcess
cashInt_IncPositive000000000000000Balancing debt00000Short
term debt00000Long term debt - 100000Long term debt -
200000Total interest
expenseInt_ExpNegative000000000000000Total interest
expense (excl
OD)Int_Exp_Excl_ODNegative00000WACCWACC0.0%0.0%0.
0%0.0%0.0%0.0%0.0%0.0%0.0%Note: to be calculated in
separate modelEquity FinancePreferred
stockOpening00000000000000New
issues/redemptionPrefs_Cash00000000000000ClosingPrefs_Bal
Positive000000000000000Dividend: Coupon % average
balanceNANANANANANANANANADividendsPrefs_DivNegat
ive000000000000000Par value per share0No. preferred shares
(thousands)Prefs_No000000000000000Common
equityOpeningEquity_Bal _BFPositive1000000000000000Net
earnings for year00000000000000Dividends: %
earningsNANANANANANANANANADividendsDiv_ComNegat
ive000000000000000Translation
effectsTranslation000000000New issues/(buy-
backs)Equity_Cash000000000Goodwill write
offGW_writeoffNegative000000000Other
adjustmentsEquity_Adj000000000ClosingEquity_BalPositive00
0000000000000Number of common sharesCurrent no. shares
(thousands)AverageShares_AvPositive000000000000000Movem
ent in year0NANANANANANANANAYear
endShares_YEPositive000000000000000Fully diluted no. shares
(thousands)Additional
11. sharesPositive0000000000AverageShares_FD_AvPositive00000
0000000000Year
endShares_FD_YEPositive000000000000000Dividends payable
(B/S)Opening00000000000000Dividends
declared00000000000000Dividends
paidDiv_CashNegative000000000ClosingDiv_BalNegative0000
00000000000TaxCurrent taxEarnings before
tax000000000000000Tax
chargeTax_ChargeNegative000000000000000Tax creditor
b/f00000000000000Current tax payable00000000000000Tax
paidTax_PaidNegative000000000Tax creditor
c/fTax_Cred_BalPositive000000000000000Tax creditor
deltaTax_Cred_Delta00000000000000Tax
ratesEffectiveNANANANANANANANANANANon-operating
Component of Income TaxesNon Op Taxes- 0- 0- 0- 0- 0- 0- 0-
0- 0- 0- 0- 0- 0- 0Non-oper Comp of Incr Def Tax Liab- 0- 0- 0-
0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0Deferred taxAsset
Increase/(decrease)DefTaxA_Delta000000000Deferred tax
assetDefTaxA_BalPositive000000000000000Liability
Increase/(decrease)DefTax_Delta000000000Deferred tax
liabilityDefTax_BalPositive000000000000000Phase 2 & CV
driversPhase 2 InputsRevenue
growthNANANANARevenueRev_P20000000000000000Adjuste
d EBITA marginNANANANANAAdjusted
EBITAAdj_EBITA_P20000000000000000Cash tax
rateCashTax_P2NANANANANANOPLATNOPLAT_P20000000
000000000Closing Net PPE as % RevenuesNANANANANANet
PPE0000000000000000Other Invested Capital as %
RevenuesNANANANANAOther Invested
Capital0000000000000000Invested Capital (pre-
Goodwill)Inv_CapP_P20000000000000000Cumulative
Goodwill00000Invested
CapitalInv_Cap_P20000000000000000Net
InvestmentNet_Inv_P200000000000Continuing value
inputsChoose ROIC optionEnter 1,2 or 311: Input value2: Last
year of phase 2NA3: WACC0.0%ROIC usedROIC0.0%Growth
12. in NOPLATgConstants & datesDays in yearDIY365Months in
yearMIY12OneOne1Units -
labelUnit_label11000thousands1000000millions1000000000billi
onsDatesNANANANANANANANANANANANANANANANA
NANANANANANANANANANAYear(9)(8)(7)(6)(5)(4)(3)(2)(1
)012345678910111213141516CVY000000000000000000000000
00FY10Mid year adjustment factor (months)MYAF0
&L&"Times New Roman,Bold"McKinsey && Company
Confidential&C&F&RPage &P
&L&"Times New Roman,Bold"McKinsey && Company
Confidential&C&F&RPage &P
&L&"Times New Roman,Bold"McKinsey && Company
Confidential&C&F&RPage &P
&L&"Times New Roman,Bold"McKinsey && Company
Confidential&C&F&RPage &P
&L&"Times New Roman,Bold"McKinsey && Company
Confidential&C&F&RPage &P
&C&F&RPage &P
&L&BMcKinsey && Company Confidential&B&C&D&RPage
&P
&L&"Times New Roman,Bold"McKinsey && Company
Confidential&C&F&RPage &P
&L&"Times New Roman,Bold"McKinsey && Company
Confidential&C&F&RPage &P
&L&"Times New Roman,Bold"McKinsey && Company
Confidential&C&F&RPage &P
&L&"Times New Roman,Bold"McKinsey && Company
Confidential&C&F&RPage &P
&L&BMcKinsey && Company Confidential&B&C&D&RPage
&P
&L&"Times New Roman,Bold"McKinsey && Company
Confidential&C&F&RPage &P
&L&"Times New Roman,Bold"McKinsey && Company
Confidential&C&F&RPage &P
&L&"Times New Roman,Bold"McKinsey && Company
Confidential&C&F&RPage &P
13. &C&F&RPage &P
&C&F&RPage &P
&C&F&RPage &P
Results29/11/2012 23:42Error check = OKName -
ScenarioOKHistoricalDetailed ForecastKey driver
forecast000000CurrencyNANANANANANANANANANANAN
ANANANANANANANANANANANANANANA------------------
--------Income
StatementRevenues00000000000000000000000000Other
Operating Revenues000000000000000Cost of Goods
Sold000000000000000Selling, Gen & Admin
Expenses000000000000000Depreciation
Expense000000000000000Other Oper
Expense000000000000000Reported
EBITA000000000000000Goodwill
Writeoffs000000000000000Amortization of
Intangibles000000000000000Reported
EBIT000000000000000Non-Oper
Income000000000000000Interest
Income000000000000000Interest
Expense000000000000000Restructuring
Charges000000000000000Special
Items000000000000000Earnings Before
Taxes000000000000000Income
Taxes000000000000000Minority
Interest000000000000000Income Before Extraordinary
Items000000000000000Extraordinary Items (After
Tax)000000000000000Net Income000000000000000Preference
dividends000000000000000Earnings for common
shareholders000000000000000Common
dividends000000000000000Retained
profit000000000000000Earnings per share
(Currency)0.000.000.000.000.000.000.000.000.000.00NANANA
NANAEarnings per share - fully diluted
(Currency)0.000.000.000.000.000.000.000.000.000.00NANANA
NANAStatement of changes in equityOpening
14. balance00000000000000Retained profit00000000000000Foreign
Exchange Rate Changes00000000000000Issue of New
Shares00000000000000Goodwill Written
Off00000000000000Other Adjustments to
Equity00000000000000Closing
balance000000000000000Check: Changes in
EquityOK00000000000000Balance SheetOperating
Cash000000000000000Excess Marketable
Securities000000000000000Accounts
Receivable000000000000000Inventories000000000000000Other
Current Assets000000000000000Total Current
Assets000000000000000Net Property Plant and
Equipment000000000000000Goodwill000000000000000Acquire
d Intangible Assets000000000000000Other Operating
Assets000000000000000Investments000000000000000Deferred
tax asset000000000000000Other Non-operating
Assets000000000000000Retirement Related
Assets000000000000000Total Assets000000000000000Short
term debt000000000000000Accounts
Payable000000000000000Tax
payable000000000000000Dividends
payable000000000000000Other Current
Liabilities000000000000000Total Current
Liabilities000000000000000Balancing
Debt000000000000000Long Term
Debt000000000000000Deferred Income
Taxes000000000000000Other Operating
Liabilities000000000000000Restructuring
Provisions000000000000000Income smoothing
Provisions000000000000000On-going operating
Provisions000000000000000Long-term operating
Provisions000000000000000Retirement Related
Liabilities000000000000000Minority
Interest000000000000000Preferred
Stock000000000000000Total Common
Equity000000000000000Total Liabs and
15. Equity000000000000000Check: Assets =
LiabilitesOK000000000000000Traditional Cash flowReported
EBITA00000000000000Depreciation00000000000000EBITDA0
0000000000000Less investment in working
capital00000000000000Foreign exchange translation
effects00000000000000Operating
cashflow00000000000000Less tax paid00000000000000Capital
investmentsLess capex00000000000000Less
investment00000000000000Less goodwill & intangibles
acquired00000000000000On-going operating
Provision00000000000000Less other operating
assets/liabilities00000000000000Total capital
investments00000000000000FinanceInterest
Income00000000000000Interest Expense00000000000000Debt
raised/repaid00000000000000Total finance
payments00000000000000Plus non-operating income
&expenseNon-Oper Income00000000000000Special
items00000000000000Extraordinary
items00000000000000Investment in non-operating
assets00000000000000Retirement Related
Assets00000000000000Total non-operating
items00000000000000Less payments from reserves and to
minoritiesRestructuring charges00000000000000Income
smoothing Provision00000000000000Long-term operating
Provision00000000000000Retirement Related
Liabilities00000000000000Minority
interest00000000000000Total payments to
reserves/minorities00000000000000EquityLess pref dividends
paid00000000000000Prefs
issued/(redeemed)00000000000000Less dividends
paid00000000000000Equity raised/repaid00000000000000Total
equity cash payments00000000000000Net
Cashflow00000000000000Cash/overdraftOpening
balance00000000000000Increase/
(Decrease)00000000000000Closing
balance000000000000000Check: Cash calc = Cash
16. balanceOK00000000000000Excess
cashCash_Calc00000000000000Balancing
debtCash_OD00000000000000NOPLATReported
EBITA00000000000000Adj for Operating
Leases00000000000000Adj for Non-operating component of
pension expense00000000000000Add: Interest associated with
Long-term operating Provision00000000000000Add: Increase in
Income smoothing Provision00000000000000Adjusted
EBITAEBITA_Adj0000000000000000000000000Taxes on
EBITA00000000000000Change in Deferred Taxes
Operating00000000000000NOPLATNOPLAT000000000000000
0000000000Taxes on EBITAProv for Inc
Taxes00000000000000Non-operating Component of Income
Taxes00000000000000Taxes on
EBITA00000000000000Reconciliation to Net IncomeNet
Income00000000000000Add: Increase in Deferred Taxes
Operating00000000000000Add: Non-operating Component of
Income Taxes00000000000000Add: Increase in Income
smoothing Provision00000000000000Add: Amort of Intangible
and GW Writeoffs00000000000000Add: Extraordinary
Items00000000000000Add: Special Items00000000000000Add:
Minority Interest00000000000000Adjusted Net
Income00000000000000Add: Interest
Expense00000000000000Add: Interest Exp. On Long-term
operating Provision00000000000000Add: Interest Exp. on Op.
Leases00000000000000Add: Interest Exp. on Non-operating
component of pension expense00000000000000Add:
Restructuring Charges00000000000000Less: Interest
Income00000000000000Less: Non-operating
Income00000000000000NOPLAT00000000000000Check:
NOPLATOK00000000000000Invested CapitalOperating
Working Capital000000000000000Net Property Plant and
Equipment000000000000000Other Assets Net of Other
Liabs000000000000000Less: On-going operating
Provision000000000000000Value of Operating
Leases000000000000000Op. Invested Capital
17. (excl.Goodwill)00000000000000000000000000Goodwill &
Intangibles000000000000000Cumulative Written Off &
Amortized0000000000000000Op. Invested Capital
(incl.Goodwill)Inv_Cap00000000000000000000000000Excess
Marketable
Securities000000000000000Investments000000000000000Non-
operating Assets000000000000000Retirement Related
Assets000000000000000Total Investor
Funds000000000000000Total Common Equity & Pref.
Stock000000000000000Cum Goodwill Written Off &
Amortized000000000000000Deferred Income
Taxes000000000000000Dividends
Payable000000000000000Income smoothing
Provision000000000000000Adjusted
Equity000000000000000Minority
Interest000000000000000Restructuring
Provisions000000000000000Long-term operating
Provision000000000000000Retirement-Related
Liabilities000000000000000Interest Bearing
Debt000000000000000Value of Operating
Leases000000000000000Total Investor
Funds000000000000000Check: Investor
FundsOK000000000000000Free Cash
FlowNOPLAT0000000000000000000000000Depreciation00000
000000000Gross Cash Flow00000000000000Increase in
Working Capital00000000000000Capital
Expenditures00000000000000Incr in other operating
assets/liabilities00000000000000Incr in Ongoing operating
Provisions00000000000000Inv in Operating
Leases00000000000000Gross Investment00000000000000Free
Cash Flow Excl. Goodwill00000000000000Investment in
Goodwill and Intangibles00000000000000Free Cash Flow Incl.
GoodwillFCF0000000000000000000000000Interest
Income00000000000000(Incr)/Decr Excess Mkt
Sec00000000000000Foreign Exchange
Translation00000000000000(Incr)/Decr Retirement Related
18. Assets00000000000000Non-operating Cash
Flow00000000000000Restructuring Cash
Flow00000000000000Non-operating Component of Income
Taxes00000000000000Extraordinary
items00000000000000Cash Flow Available to
Investors00000000000000Financing FlowInterest
Expense00000000000000Interest on Operating
Leases00000000000000Interest on Nonoperating Component of
Pension Expense00000000000000Interest on Long-term
Operating Provision00000000000000Decr/(Incr) in
Debt00000000000000Decr/(Incr) in Operating
Leases00000000000000Decr/(Incr) in Retirement Rel.
Liab00000000000000Decr/(Incr) in Long-term Operating
Provision00000000000000Payments to
Minorities00000000000000Common
Dividends00000000000000Preferred
Dividends00000000000000Decr/(Incr) in
Preferred00000000000000Decr/(Incr) in Share
Capital00000000000000Total Financing
Flow00000000000000Check: Investors CF = Financing
CFOK00000000000000Economic ProfitBefore GoodwillReturn
on Invested
Capital0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.
0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%
0.0%WACC0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.
0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%
0.0%0.0%Spread0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.
0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%
0.0%0.0%0.0%Invested Capital (Beg of
Year)0000000000000000000000000Economic Profit (before
Goodwill)0000000000000000000000000NOPLAT000000000000
0000000000000Capital
Charge0000000000000000000000000Economic Profit (before
Goodwill)0000000000000000000000000After GoodwillReturn
on Invested
Capital0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.
19. 0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%
0.0%WACC0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.
0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%
0.0%0.0%Spread0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.
0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%
0.0%0.0%0.0%Invested Capital (Beg of
Year)0000000000000000000000000Economic Profit (after
Goodwill)0000000000000000000000000NOPLAT000000000000
0000000000000Capital
Charge0000000000000000000000000Economic Profit (after
Goodwill)EP0000000000000000000000000DCF Valuation
CalculationsCV period0000000000000000FCF
periodSumSum1111111111111111Free Cash
Flow00000000000000000Discount
Factor1.001.001.001.001.001.001.001.001.001.001.001.001.001.
001.001.001.00PV of FCF000000000000000000Continuing
value00000000000000000PV of Continuing
value000000000000000000Operating value0Economic
profit00000000000000000Discount
Factor1.001.001.001.001.001.001.001.001.001.001.001.001.001.
001.001.001.00PV of EP000000000000000000Continuing
value00000000000000000PV of Continuing
value000000000000000000Invested capital at start of
forecast00Operating value0Check: EV=FCFOKMinoritiesProfits
attributable to minorities00000Perpetuity based on final year
detailed forecast00000Discount
factor1.001.001.001.001.001.00Present Value000000Non-
operating assetsNon-operating income00000Perpetuity based on
final year detailed forecast00000Discount
factor1.001.001.001.001.001.00Present
Value000000Restructuring costsRestructuring costs
paid00000Discount factor1.001.001.001.001.001.00Present
Value000000RatiosAdjusted EBITA / RevenuesCost of Goods
Sold /
RevenuesNANANANANANANANANANANANANANANASG
A costs /
20. RevenueNANANANANANANANANANANANANANANAEBI
TDA /
RevenueNANANANANANANANANANANANANANANADepr
eciation /
RevenuesNANANANANANANANANANANANANANANARep
orted EBITA /
RevenuesNANANANANANANANANANANANANANANAAdj
ustments to EBITA /
RevenuesNANANANANANANANANANANANANANAAdjuste
d EBITA /
RevenuesNANANANANANANANANANANANANANANANA
NANANANANANANANANAReturn on Invested Capital
(BY)Net PPE /
Revenues0.0%NANANANANANANANANANANANANAWork
ing Capital /
Revenues0.0%NANANANANANANANANANANANANANet
Other Assets /
Revenues0.0%NANANANANANANANANANANANANARev. /
Inv. Capital (pre-
Goodwill)0.0NANANANANANANANANANANANANANANA
NANANANANANANANANAPre-Tax
ROIC0.0%NANANANANANANANANANANANANACash Tax
Rate0.0%NANANANANANANANANANANANANA0.0%0.0%
0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%After-Tax ROIC
(pre-
Goodwill)0.0%NANANANANANANANANANANANANANAN
ANANANANANANANANANARev. / Inv. Capital (incl.
Goodwill)0.0NANANANANANANANANANANANANANANA
NANANANANANANANANAAfter-Tax ROIC (incl.
Goodwill)0.0%NANANANANANANANANANANANANANAN
ANANANANANANANANANAReturn on Invested Cap
(Avg)Net PPE /
Revenues0.0%NANANANANANANANANANANANANAWork
ing Capital /
Revenues0.0%NANANANANANANANANANANANANANet
Other Assets /
21. Revenues0.0%NANANANANANANANANANANANANARev. /
Inv. Capital (pre-
Goodwill)0.0NANANANANANANANANANANANANANANA
NANANANANANANANANAPre-Tax
ROIC0.0%NANANANANANANANANANANANANAAfter-
Tax ROIC (pre-
Goodwill)0.0%NANANANANANANANANANANANANANAN
ANANANANANANANANANAAfter-Tax ROIC (incl.
Goodwill)0.0%NANANANANANANANANANANANANANAN
ANANANANANANANANANAAverage
ROE0.0%NANANANANANANANANANANANANAGrowth
RatesRevenue Growth
Rate0.0%NANANANANANANANANANANANANANANANA
NANANANANANANANAAdjusted EBITA Growth
RateNANANANANANANANANANANANANANANANANAN
ANANANANANANANANOPLAT Growth
RateNANANANANANANANANANANANANANANANANAN
ANANANANANANANAInvested Capital Growth
Rate0.0%NANANANANANANANANANANANANANANANA
NANANANANANANANANet Income Growth
Rate0.0%NANANANANANANANANANANANANAInvestment
Rates (excl. Goodwill)Gross Investment
Rate0.0%NANANANANANANANANANANANANANet
Investment /
NOPLAT0.0%NANANANANANANANANANANANANANAN
ANANANANANANANANANAFinancingEBIT/Interest
PayableNANANANANANANANANANANANANANAAdjusted
EBITA/Interest
payableNANANANANANANANANANANANANANACash
Coverage (Gross CF /
Interest)N/ANANANANANANANANANANANANANADebt /
Total Cap
(Book)NANANANANANANANANANANANANANANADebt /
Total Cap (Market)NANANANANANANANANANAValuation
indicatorsMkt Val Op Inv Cap/ BV Op Inv
CapNANANANANANANANANAMarket / Book (incl. Cum
22. Goodwill)NANANANANANANANANAMkt val Op Inv Cap /
Adj EBITANANANANANANANANANAEnterprise value /
EBITANANANANANANANANANANAPrice Earnings
RatioNANANANANANANANANANA
&C&F&RPage &P
&L&"Times New Roman,Bold"McKinsey && Company
Confidential&C&F&RPage &P
&C&F&RPage &P
&C&F&RPage &P
&C&F&RPage &P
&L&"Times New Roman,Bold"McKinsey && Company
Confidential&C&F&RPage &P
&R&F &A
&C&F&RPage &P
&C&F&RPage &P
&L&"Times New Roman,Bold"McKinsey && Company
Confidential&C&F&RPage &P
&L&"Times New Roman,Bold"McKinsey && Company
Confidential&C&F&RPage &P
&R&F &A
&C&F&RPage &P
&C&F&RPage &P
&C&F&RPage &P
&L&"Times New Roman,Bold"McKinsey && Company
Confidential&C&F&RPage &P
&L&"Times New Roman,Bold"McKinsey && Company
Confidential&C&F&RPage &P
&L&"Times New Roman,Bold"McKinsey && Company
Confidential&C&F&RPage &P
Valuation Summary29/11/2012 23:42OKName -
ScenarioCurrencyValue of Operations: DCF approachValue of
Operations: Economic ProfitValue of EquityFree
CashDiscountPVEconomicDiscountPVOperating
Value0YearFlowFactorof FCFYearProfitFactorof EPExcess Mkt
Securities0NA01.0000NA01.0000Financial
Investments0NA01.0000NA01.0000Excess Pension
23. Assets0NA01.0000NA01.0000NA01.0000NA01.0000Enterprise
Value0NA01.0000NA01.0000Debt0NA01.0000NA01.0000Capit
alized Operating Leases0NA01.0000NA01.0000Retirement
Related Liability0NA01.0000NA01.0000Preferred
Stock0NA01.0000NA01.0000Minority
Interest0NA01.0000NA01.0000Long-Term Operating
Provision0NA01.0000NA01.0000Restructuring
Provision0NA01.0000NA01.0000Future Stock
Options0NA01.0000NA01.0000Stock
options0NA01.0000NA01.0000Equity
Value0NA01.0000NA01.0000Cont. Value01.0000Cont.
Value01.0000No. shares (thousands)0Operating Value00Present
Value of Economic Profit0Value per ShareNAInvested Capital
(incl. goodwill)0Continuing value % Operating valueNA-
HighNAOperating Value0-LowNAMid -Year Adjustment
Factor1.000Mid -Year Adjustment Factor1.000Value Difference
- HighNAOperating Value (Adjusted)0Operating Value
(Adjusted)0Value Difference - LowNAComparison of key
ratiosEvaluation of entry and exit
multiplesAveragesFrom:NANANANATo:NANANANANANARe
venue growth (CAG)NANANANAOperating Value00Adjusted
EBITA growth (CAG)NANANANANOPLAT growth
(CAG)NANANANAExcess Mkt Securities0Invested capital
growth (CAG)NANANANAFinancial Investments0Adj.
EBIT/RevenuesNANANANAEnterprise
Value00Revenues/Invested Capital (pre-
Goodwill)NANANANARevenue0NAROIC (after tax, pre-
Goodwill)NANANANAAdjusted EBITA0NAROIC (after tax,
including Goodwill)NANANANANOPLAT0NAAverage
Economic Profit0000Enterprise / RevenueNANACash Tax
RateNANA0.0%0.0%Enterprise / Adjusted
EBITANANAWACCNA0.0%0.0%0.0%Enterprise /
NOPLATNANA
&L&"Times New Roman,Bold"McKinsey && Company
Confidential&C&F&RPage &P
&C&F&RPage &P
24. &L&"Times New Roman,Bold"McKinsey && Company
Confidential&C&F&RPage &P
&L&"Times New Roman,Bold"McKinsey && Company
Confidential&C&F&RPage &P
&L&"Times New Roman,Bold"McKinsey && Company
Confidential&C&F&RPage &P
&L&"Times New Roman,Bold"McKinsey && Company
Confidential&C&F&RPage &P
&L&"Times New Roman,Bold"McKinsey && Company
Confidential&C&F&RPage &P
&L&"Times New Roman,Bold"McKinsey && Company
Confidential&C&F&RPage &P
&C&F&RPage &P
&L&"Times New Roman,Bold"McKinsey && Company
Confidential&C&F&RPage &P
&L&"Times New Roman,Bold"McKinsey && Company
Confidential&C&F&RPage &P
&L&"Times New Roman,Bold"McKinsey && Company
Confidential&C&F&RPage &P
&L&"Times New Roman,Bold"McKinsey && Company
Confidential&C&F&RPage &P
&L&"Times New Roman,Bold"McKinsey && Company
Confidential&C&F&RPage &P
&L&"Times New Roman,Bold"McKinsey && Company
Confidential&C&F&RPage &P
&L&"Times New Roman,Bold"McKinsey && Company
Confidential&C&F&RPage &P