Page 121 - DMGT405_FINANCIAL%20MANAGEMENT

(in millions excepts per
2005
2002
2003
2001
2004
2000
2006
share data)
Revenues
Cost of goods sold
5,503.0 6,065.5 5,493.5 5,403.8 7,784.9
2,865.3 3,906.7
Gross profit
1,895.6 2,563.9
3,683.5 3,487.6 3,283.4 3,591.3 3,703.9
2,303.7 2,623.8 2,426.6 2,606.4 2,689.7
Selling and administrative
1,209.8 1,588.6
863.8
Operating Income
984.9 1,014.2
685.8
1,379.8
856.8
975.3
52.3
Interst expense
45.0
24.2
58.7
39.5
60.0
44.1
23.2
21.5
11.7
34.1
20.9
Other expense net
32.3
36.7
---
Restructuring charge,net
129.9
45.1
---
2.5
---
---
899.1 1,295.20
921.4
746.1
653.0
Income before Income taxes
919.2
649.9
253.4
340.1
294.7
345.9
499.4
Income taxes 4,760.8 6,470.6 9,816.5 9,553.1 8,776.9 8,995.1 9,488.8
250.2
331.7
Net Income 399.7 553.2 795.8 399.6 451.4 579.4 589.7
Diluted earning per Annum Unit 6: Cost of Capital
Shares 1.4 1.9 2.7 1.4 1.6 2.1 2.2
Average shares outstanding
(diluted) 294.0 293.6 297.0 296.0 287.5 279.8 273.3
Notes
Growth(%)
Revenue 35.9 42.0 4.0 8.1 2.5 5.5
Operating income 42.2 41.5 37.4 0.8 15.0 3.0
Net income 38.4 43.9 49.8 13.0 28.3 1.8
Margins (%)
Gross margin 39.6 40.1 36.5 37.4 39.9 39.0
Operating margin 15.1 15.0 9.0 9.8 10.9 10.7
Net margin 8.5 8.7 4.2 3.1 6.4 6.2
Effective tax rate (%) 38.5 38.6 38.8 39.5 37.0 36.0

Exhibit 2: Discounted - Cash - flow Analysis
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Assumption
Revenue growth
(%) 7.0 6.5 6.5 6.5 6.0 6.0 6.0 6.0 6.0 6.0
COGS/Sales (%) 60.0 60.0 59.5 59.5 59.0 59.0 58.5 58.5 58.0 58.0
S & A / Sales (%) 28.0 27.5 27.0 26.5 26.0 25.5 25.0 25.0 25.0 25.0
Tax rate (%) 38.0 38.0 38.0 38.0 38.0 38.0 38.0 38.0 38.0 38.0
Current Assets /
sales (%) 38.0 38.0 38.0 38.0 38.0 38.0 38.0 38.0 38.0 38.0
Current liabilities/
sales (%) 11.5 11.5 11.5 11.5 11.5 11.5 11.5 11.5 11.5 11.5
Yearly
depreciations
Equals capex.
Cost of Capital (%) 12.0
Terminal growth
rate (%) 3.0
Discounted cash flow
Opeating income 1,218.4 1,351.6 1554.6 1717.0 1950.0 2135.9 2410.2 2554.8 2790.1 2957.5
Taxes 463.0 513.6 590.8 652.5 741.0 811.7 915.9 970.8 1060.2 1123.9
NOPAT 755.4 838.0 963.9 1064.5 1209.0 1324.3 1494.3 1584.0 1729.9 1833.7
Capex.net of
dereciation --- --- --- --- --- --- --- --- --- ---
Change in NWC 8.8 -174.9 186.3 198.4 195.0 206.7 219.1 232.3 246.2 261.0
Free cash flow 764.1 663.1 776.6 866.2 1014.0 1176.6 1275.2 1351.7 1483.7 1572.7
Terminal value 17998.7
Total flows 764.1 663.1 776.6 866.2 1014.0 1176.6 1275.2 1351.7 1483.7 19571.5
Present value of
flows 682.3 528.6 553.5 550.5 575.4 566.2 576.8 545.9 535.0 6301.5
Enterprise value 11415.7
Less : current
outstanding dept. 1296.6
Equity value 10119.1
Current shares
outstanding 271.5
Equity value per
share $37.27 Current share price $42.09
Contd...
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