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The Body Shop International Plc, previously being one of the fastest growing manufacturer retailers in the world, operates in a niche natural
company which used to grow at 20% per annum in early to middle 1990s, had seen decline in growth to 8% in late 1990s impacted by stiff c
repositioning from niche premium segment to mass retailer. Anita Roddick, the founder, stepped down as CEO in 1998 and Patrick Gournay
responsibility of regaining lost market share, repositioned brand image and grow the business. Sales although grew by 13% in 2001, yet prof
the growth agenda with focus on product strategy and increased investment in stores; achieve operational efficiencies in supply chain and he
grow profitability to reinforce stakeholders. The paper model present the thesis behind next three year financial projection of the Body Shop
tegy, Marketing, Human Resources, Organization Behavior, Economics, Excel,

n the world, operates in a niche naturally based skin care and hair care products. The
to 8% in late 1990s impacted by stiff competition in the market and brand
n as CEO in 1998 and Patrick Gournay on-boarded as new CEO took the
lthough grew by 13% in 2001, yet profitability decline by 21%. New CEO has set
onal efficiencies in supply chain and hence reduce product and inventory costs and
financial projection of the Body Shop Plc.
The Body Shop Plc - Forecasted Financial Statements ($ million)
Assumptions 2002 2003 2004
Revenue Growth 13% 13% 13%

Cost of Sales 40% 40% 40%

Operating Expenses 53% 55% 57%

Interest Expense 6% 6% 6%
Tax Rate 30% 30% 30%
Ordinary dividend 10.90 10.90 10.90
Cash 14.50 14.50 14.50
Accounts Receivable 8.0% 8.0% 8.0%
Inventory 33.0% 33.0% 33.0%
Other current assets 4.7% 4.7% 4.7%
Net fixed assets 30% 30% 30%
Other assets 0% 0% 0%
Accounts Payable 11% 11% 11%
Taxes Payable 3% 3% 3%
Accruals 4% 4% 4%
Overdraft 0% 0% 0%
Other Current Liabilities 5% 5% 5%

Income Statement 28-Feb-99 28-Feb-00 28-Feb-01

Sales 303.7 330.1 374.1
Growth (%) 8.69% 13.33%
Cost of sales 127.7 130.9 149.0
% of Sales 42.05% 39.65% 39.83%
Gross profit 176.0 199.2 225.1
Gross Margin (%) 57.95% 60.35% 60.17%

Operating expenses
Regular Expenses 151.4 166.2 195.7
% of Sales 49.85% 50.35% 52.31%
Exceptional costs* 4.5 0.0 11.2
% of Sales 1.48% 0.00% 2.99%
Restructuring costs** 16.6 2.7 1.0
% of Sales 5.47% 0.82% 0.27%

EBIT 3.5 30.3 17.2

Net interest expense 0.1 1.5 4.4
% of Sales 0.03% 0.45% 1.18%
Profit before tax 3.4 28.8 12.8
Tax expense 8.0 10.4 3.5
% of PBT 235% 36% 27%

Profit/(loss) after tax (4.6) 18.4 9.3

Net Margin (%) -1.51% 5.57% 2.49%
Ordinary dividends 10.9 10.9 10.9
Profit/(loss) retained (15.5) 7.5 (1.6)

* Exceptional costs in 2001 included redundancy costs (4.6 million), costs of supply chain development (2.4 million) and impairment of fixed assets and
4.5 million in 1999 were associated with closing unprofitable shops and an impairment review of the remaining shops in the USA.

** Restructuring costs in 2001 and 2000 relate to the sale of manufacturing plants in Littlehampton, England, and to associated reorganization costs. Res
of the management structure of the business in the US and the UK.

*** Other assets in 2001 and 2000 represented receivables relating to the sale of the company's Littlehampton manufacturing plant.
* Exceptional costs in 2001 included redundancy costs (4.6 million), costs of supply chain development (2.4 million) and impairment of fixed assets and
4.5 million in 1999 were associated with closing unprofitable shops and an impairment review of the remaining shops in the USA.

** Restructuring costs in 2001 and 2000 relate to the sale of manufacturing plants in Littlehampton, England, and to associated reorganization costs. Res
of the management structure of the business in the US and the UK.

*** Other assets in 2001 and 2000 represented receivables relating to the sale of the company's Littlehampton manufacturing plant.

**** Other liabilities included mostly deferred taxes.

 Remarks
Has been taken flat at 13%

This has declined and been maintained at 40% and on a declinin

This is rising year over year and hence has been built with av
57%.
Exceptional and Restructuring
Interest expense cost at
has been assumed is 6%.
a one time
For cost cash
excess and intere
hence

Maintained at last three years average rate

Assumed to have a fixed cash balance of $14.5 milion every y
Maintained at last year average rate
Maintained at last three years average rate but on a declinin
As per last two years
Maintained at last three years average rate
2000 and 2001 represents receivables relating to sale of manuf
Maintained at last three years average rate. Accounts Payable
Maintained at last three years average rate
Maintained at last three years average rate
Assumed not to have any overdraft balance
Maintained at last three years average rate

28-Feb-02 28-Feb-03 28-Feb-04 Balance Sheet

422.7 477.7 539.8 Assets
13.00% 13.00% 13.00% Excess Cash
169.1 191.1 215.9 Cash
40.00% 40.00% 40.00% % of sales
253.6 286.6 323.9 Accounts receivable
60.0% 60.0% 60.0% % of sales
Inventories
% of Cost of sales
224.0 262.7 307.7 Other current assets
53.00% 55.00% 57.00% % of sales
Total Current Assets
% of sales
Net fixed assets
% of sales
Other assets***
29.6 23.9 16.2 % of sales
Err:522 Err:522 Err:522 Total assets
Err:522 Err:522 Err:522 % of sales
Err:522 Err:522 Err:522
Err:522 Err:522 Err:522 Liabilities and Equity
30% 30% 30% Accounts payable
% of Cost of Sales
Err:522 Err:522 Err:522 Taxes payable
Err:522 Err:522 Err:522 % of sales
10.9 10.9 10.9 Accruals
Err:522 Err:522 Err:522 % of sales
Overdrafts
% of sales
Other current liabilities
million) and impairment of fixed assets and goodwill (4.2 million). The exceptional costs of
ng shops in the USA.

and to associated reorganization costs. Restructuring costs in 1999 arose from the realignment

n manufacturing plant.
million) and impairment of fixed assets and goodwill (4.2 million). The exceptional costs of
ng shops in the USA. % of sales
Total Current Liabilities
and to associated reorganization costs. Restructuring costs in 1999 arose from the realignment % of sales
Long-term liabilities
n manufacturing plant. % of sales
Other liabilities****
% of sales
Shareholders' equity
% of sales
Total liabs. and equity
% of sales

Trial Assets
Trial Liabs and Equity
Plug: Debt (Excess Cash)
 40% and on a declining trend for going ahead
has been built with average hike of another 2% before it will peak

e time
For cost cash
excess and interest
hence will haveof
income no 6%
future impact
has been built

$14.5 milion every year end

ate but on a declining trend. Inventory is measured at cost of sales

ating to sale of manufacturing plant which is assumed to have been re

ate. Accounts Payable is measured at cost of sales

28-Feb-99 28-Feb-00 28-Feb-01 28-Feb-02 28-Feb-03

0.0 0.0 0.0 Err:522 Err:522

34.0 19.2 13.7 15 14.5
11.2% 5.8% 3.7% 3.4% 3.0%
27.8 30.3 30.3 33.8 38.2
9.2% 9.2% 8.1% 8.0% 8.0%
38.6 44.7 51.3 55.8 63.1
30.2% 34.1% 34.4% 33.0% 33.0%
12.5 15.6 17.5 19.9 22.5
4.1% 4.7% 4.7% 4.7% 4.7%
112.9 109.8 112.8 Err:522 Err:522
37.2% 33.3% 30.2% Err:522 Err:522
87.8 104.7 110.6 126.8 143.3
28.9% 31.7% 29.6% 30.0% 30.0%
0.0 6.0 6.7 0.0 0.0
0.0% 1.8% 1.8% 0.0% 0.0%
200.7 220.5 230.1 Err:522 Err:522
66.1% 66.8% 61.5% Err:522 Err:522

13.0 20.5 10.7 18.6 21.0

10.2% 15.7% 7.2% 11.0% 11.0%
11.3 11.7 7.1 12.7 14.3
3.7% 3.5% 1.9% 3.0% 3.0%
10.8 15.6 11.5 16.1 18.2
3.6% 4.7% 3.1% 3.8% 3.8%
0.0 0.3 0.7 0.0 0.0
0.0% 0.1% 0.2% 0.0% 0.0%
21.6 13.3 16.9 21.1 23.9
 7.1% 4.0% 4.5% 5.0% 5.0%
56.7 61.4 46.9 68.5 77.4
18.7% 18.6% 12.5% 16.2% 16.2%
28.0 36.7 61.2 Err:522 Err:522
9.2% 11.1% 16.4% Err:522 Err:522
1.7 1.0 0.4 0.0 0.0
0.6% 0.3% 0.1% 0.0% 0.0%
114.3 121.4 121.6 Err:522 Err:522
37.6% 36.8% 32.5% Err:522 Err:522
200.7 220.5 230.1 Err:522 Err:522
66.1% 66.8% 61.5% Err:522 Err:522

200.7 220.5 230.1 250.8 281.5

172.7 183.8 168.9 Err:522 Err:522
- - - Err:522 Err:522
t will peak at

cost of sales

have been recovered in 2002

28-Feb-04

Err:522
14.5
2.7%
43.2
8.0%
71.3
33.0%
25.4
4.7%
Err:522
Err:522
161.9
30.0%
0.0
0.0%
Err:522
Err:522

23.8
11.0%
16.2
3.0%
20.5
3.8%
0.0
0.0%
27.0
 5.0%
87.4
16.2%
Err:522
Err:522
0.0
0.0%
Err:522
Err:522
Err:522
Err:522

316.2
Err:522
Err:522
The Body Shop Plc - Forecasted Financial Statements ($ million)
Assumptions 2002 2003 2004
Revenue Growth 15% 18% 20%

Cost of Sales 40% 39% 38%

Operating Expenses 53% 54% 55%

Interest Expense 6% 6% 6%
Tax Rate 30% 30% 30%
Ordinary dividend 10.90 10.90 10.90
Cash 14.50 14.50 14.50
Accounts Receivable 8.0% 8.0% 8.0%
Inventory 33.0% 31.0% 30.0%
Other current assets 4.7% 4.7% 4.7%
Net fixed assets 30% 30% 30%
Other assets 0% 0% 0%
Accounts Payable 11% 11% 11%
Taxes Payable 3% 3% 3%
Accruals 4% 4% 4%
Overdraft 0% 0% 0%
Other Current Liabilities 5% 5% 5%

Income Statement 28-Feb-99 28-Feb-00 28-Feb-01

Sales 303.7 330.1 374.1
Growth (%) 8.69% 13.33%
Cost of sales 127.7 130.9 149.0
% of Sales 42.05% 39.65% 39.83%
Gross profit 176.0 199.2 225.1
Gross Margin (%) 57.95% 60.35% 60.17%

Operating expenses
Regular Expenses 151.4 166.2 195.7
% of Sales 49.85% 50.35% 52.31%
Exceptional costs* 4.5 0.0 11.2
% of Sales 1.48% 0.00% 2.99%
Restructuring costs** 16.6 2.7 1.0
% of Sales 5.47% 0.82% 0.27%

EBIT 3.5 30.3 17.2

Net interest expense 0.1 1.5 4.4
% of Sales 0.03% 0.45% 1.18%
Profit before tax 3.4 28.8 12.8
Tax expense 8.0 10.4 3.5
% of PBT 235% 36% 27%

Profit/(loss) after tax (4.6) 18.4 9.3

Net Margin (%) -1.51% 5.57% 2.49%
Ordinary dividends 10.9 10.9 10.9
Profit/(loss) retained (15.5) 7.5 (1.6)

* Exceptional costs in 2001 included redundancy costs (4.6 million), costs of supply chain development (2.4 million) and impairment of fixed assets and
4.5 million in 1999 were associated with closing unprofitable shops and an impairment review of the remaining shops in the USA.

** Restructuring costs in 2001 and 2000 relate to the sale of manufacturing plants in Littlehampton, England, and to associated reorganization costs. Res
realignment of the management structure of the business in the US and the UK.

*** Other assets in 2001 and 2000 represented receivables relating to the sale of the company's Littlehampton manufacturing plant.
* Exceptional costs in 2001 included redundancy costs (4.6 million), costs of supply chain development (2.4 million) and impairment of fixed assets and
4.5 million in 1999 were associated with closing unprofitable shops and an impairment review of the remaining shops in the USA.

** Restructuring costs in 2001 and 2000 relate to the sale of manufacturing plants in Littlehampton, England, and to associated reorganization costs. Res
realignment of the management structure of the business in the US and the UK.

*** Other assets in 2001 and 2000 represented receivables relating to the sale of the company's Littlehampton manufacturing plant.

**** Other liabilities included mostly deferred taxes.

 Remarks
Has been taken at 15% and then built extra 3% next year and p
be taken for higher growth. This is because of rise seen in la
This has declined and been maintained at 40% and on a declinin
This is rising year over year and hence has been built with av
55%.
Exceptional and Restructuring
Interest expense cost at
has been assumed is 6%.
a one time
For cost cash
excess and intere
hence

Maintained at last three years average rate

Assumed to have a fixed cash balance of $14.5 milion every y
Maintained at last year average rate
Maintained at last three years average rate but on a declinin
As per last two years
Maintained at last three years average rate
2000 and 2001 represents receivables relating to sale of manuf
Maintained at last three years average rate. Accounts Payable
Maintained at last three years average rate
Maintained at last three years average rate
Assumed not to have any overdraft balance
Maintained at last three years average rate

28-Feb-02 28-Feb-03 28-Feb-04 Balance Sheet

430.2 507.7 609.2 Assets
15.00% 18.00% 20.00% Excess Cash
172.1 198.0 231.5 Cash
40.00% 39.00% 38.00% % of sales
258.1 309.7 377.7 Accounts receivable
60.0% 61.0% 62.0% % of sales
Inventories
% of Cost of sales
228.0 274.1 335.1 Other current assets
53.00% 54.00% 55.00% % of sales
Total Current Assets
% of sales
Net fixed assets
% of sales
Other assets***
30.1 35.5 42.6 % of sales
Err:522 Err:522 Err:522 Total assets
Err:522 Err:522 Err:522 % of sales
Err:522 Err:522 Err:522
Err:522 Err:522 Err:522 Liabilities and Equity
30% 30% 30% Accounts payable
% of Cost of Sales
Err:522 Err:522 Err:522 Taxes payable
Err:522 Err:522 Err:522 % of sales
10.9 10.9 10.9 Accruals
Err:522 Err:522 Err:522 % of sales
Overdrafts
% of sales
Other current liabilities
million) and impairment of fixed assets and goodwill (4.2 million). The exceptional costs of
ing shops in the USA.

d, and to associated reorganization costs. Restructuring costs in 1999 arose from the

n manufacturing plant.
 million) and impairment of fixed assets and goodwill (4.2 million). The exceptional costs of
ing shops in the USA. % of sales
Total Current Liabilities
d, and to associated reorganization costs. Restructuring costs in 1999 arose from the % of sales
Long-term liabilities
n manufacturing plant. % of sales
Other liabilities****
% of sales
Shareholders' equity
% of sales
Total liabs. and equity
% of sales

Trial Assets
Trial Liabs and Equity
Plug: Debt (Excess Cash)
ra 3% next year and peak rate of 20% for 2004 assuming initiatives
ause of rise seen in last two years
40% and on a declining trend for going ahead
has been built with average hike of another 1% before it will peak

e time
For cost cash
excess and interest
hence will haveof
income no 6%
future impact
has been built

$14.5 milion every year end

rate but on a declining trend. Inventory is measured at cost of sales

ating to sale of manufacturing plant which is assumed to have been re

rate. Accounts Payable is measured at cost of sales

28-Feb-99 28-Feb-00 28-Feb-01 28-Feb-02 28-Feb-03

0.0 0.0 0.0 Err:522 Err:522

34.0 19.2 13.7 15 14.5
11.2% 5.8% 3.7% 3.4% 2.9%
27.8 30.3 30.3 34.4 40.6
9.2% 9.2% 8.1% 8.0% 8.0%
38.6 44.7 51.3 56.8 61.4
30.2% 34.1% 34.4% 33.0% 31.0%
12.5 15.6 17.5 20.2 23.9
4.1% 4.7% 4.7% 4.7% 4.7%
112.9 109.8 112.8 Err:522 Err:522
37.2% 33.3% 30.2% Err:522 Err:522
87.8 104.7 110.6 129.1 152.3
28.9% 31.7% 29.6% 30.0% 30.0%
0.0 6.0 6.7 0.0 0.0
0.0% 1.8% 1.8% 0.0% 0.0%
200.7 220.5 230.1 Err:522 Err:522
66.1% 66.8% 61.5% Err:522 Err:522

13.0 20.5 10.7 18.9 21.8

10.2% 15.7% 7.2% 11.0% 11.0%
11.3 11.7 7.1 12.9 15.2
3.7% 3.5% 1.9% 3.0% 3.0%
10.8 15.6 11.5 16.3 19.3
3.6% 4.7% 3.1% 3.8% 3.8%
0.0 0.3 0.7 0.0 0.0
0.0% 0.1% 0.2% 0.0% 0.0%
21.6 13.3 16.9 21.5 25.4
 7.1% 4.0% 4.5% 5.0% 5.0%
56.7 61.4 46.9 69.7 81.7
18.7% 18.6% 12.5% 16.2% 16.1%
28.0 36.7 61.2 Err:522 Err:522
9.2% 11.1% 16.4% Err:522 Err:522
1.7 1.0 0.4 0.0 0.0
0.6% 0.3% 0.1% 0.0% 0.0%
114.3 121.4 121.6 Err:522 Err:522
37.6% 36.8% 32.5% Err:522 Err:522
200.7 220.5 230.1 Err:522 Err:522
66.1% 66.8% 61.5% Err:522 Err:522

200.7 220.5 230.1 255.0 292.6

172.7 183.8 168.9 Err:522 Err:522
- - - Err:522 Err:522
 initiatives will

it will peak at

cost of sales

have been recovered in 2002

28-Feb-04

Err:522
14.5
2.4%
48.7
8.0%
69.4
30.0%
28.6
4.7%
Err:522
Err:522
182.8
30.0%
0.0
0.0%
Err:522
Err:522

25.5
11.0%
18.3
3.0%
23.1
3.8%
0.0
0.0%
30.5
 5.0%
97.3
16.0%
Err:522
Err:522
0.0
0.0%
Err:522
Err:522
Err:522
Err:522

344.1
Err:522
Err:522
The Body Shop Plc - Forecasted Financial Statements ($ million)
Assumptions 2002 2003 2004
Revenue Growth 17% 20% 22%

Cost of Sales 40% 37% 35%

Operating Expenses 53% 54% 55%

Interest Expense 6% 6% 6%
Tax Rate 30% 30% 30%
Ordinary dividend 10.90 10.90 10.90
Cash 14.50 14.50 14.50
Accounts Receivable 8.0% 8.0% 8.0%
Inventory 33.0% 30.0% 27.0%
Other current assets 4.7% 4.7% 4.7%
Net fixed assets 30% 30% 30%
Other assets 0% 0% 0%
Accounts Payable 11% 11% 11%
Taxes Payable 3% 3% 3%
Accruals 4% 4% 4%
Overdraft 0% 0% 0%
Other Current Liabilities 5% 5% 5%

Income Statement 28-Feb-99 28-Feb-00 28-Feb-01

Sales 303.7 330.1 374.1
Growth (%) 8.69% 13.33%
Cost of sales 127.7 130.9 149.0
% of Sales 42.05% 39.65% 39.83%
Gross profit 176.0 199.2 225.1
Gross Margin (%) 57.95% 60.35% 60.17%

Operating expenses
Regular Expenses 151.4 166.2 195.7
% of Sales 49.85% 50.35% 52.31%
Exceptional costs* 4.5 0.0 11.2
% of Sales 1.48% 0.00% 2.99%
Restructuring costs** 16.6 2.7 1.0
% of Sales 5.47% 0.82% 0.27%

EBIT 3.5 30.3 17.2

Net interest expense 0.1 1.5 4.4
% of Sales 0.03% 0.45% 1.18%
Profit before tax 3.4 28.8 12.8
Tax expense 8.0 10.4 3.5
% of PBT 235% 36% 27%

Profit/(loss) after tax (4.6) 18.4 9.3

Net Margin (%) -1.51% 5.57% 2.49%
Ordinary dividends 10.9 10.9 10.9
Profit/(loss) retained (15.5) 7.5 (1.6)

* Exceptional costs in 2001 included redundancy costs (4.6 million), costs of supply chain development (2.4 million) and impairment of fixed assets and
of 4.5 million in 1999 were associated with closing unprofitable shops and an impairment review of the remaining shops in the USA.

** Restructuring costs in 2001 and 2000 relate to the sale of manufacturing plants in Littlehampton, England, and to associated reorganization costs. Res
realignment of the management structure of the business in the US and the UK.

*** Other assets in 2001 and 2000 represented receivables relating to the sale of the company's Littlehampton manufacturing plant.
* Exceptional costs in 2001 included redundancy costs (4.6 million), costs of supply chain development (2.4 million) and impairment of fixed assets and
of 4.5 million in 1999 were associated with closing unprofitable shops and an impairment review of the remaining shops in the USA.

** Restructuring costs in 2001 and 2000 relate to the sale of manufacturing plants in Littlehampton, England, and to associated reorganization costs. Res
realignment of the management structure of the business in the US and the UK.

*** Other assets in 2001 and 2000 represented receivables relating to the sale of the company's Littlehampton manufacturing plant.

**** Other liabilities included mostly deferred taxes.

 Remarks
Has been taken at 17% and then built extra 3% next year and
will be taken for higher growth. This is because of rise seen
This has declined and been maintained at 40% and on a declinin
This is rising year over year and hence has been built with av
at 55%.
Exceptional and Restructuring
Interest expense cost at
has been assumed is 6%.
a one time
For cost cash
excess and intere
hence

Maintained at last three years average rate

Assumed to have a fixed cash balance of $14.5 milion every y
Maintained at last year average rate
Maintained at last three years average rate but on a declinin
As per last two years
Maintained at last three years average rate
2000 and 2001 represents receivables relating to sale of manuf
Maintained at last three years average rate. Accounts Payable
Maintained at last three years average rate
Maintained at last three years average rate
Assumed not to have any overdraft balance
Maintained at last three years average rate

28-Feb-02 28-Feb-03 28-Feb-04 Balance Sheet

437.7 525.2 640.8 Assets
17.00% 20.00% 22.00% Excess Cash
175.1 194.3 224.3 Cash
40.00% 37.00% 35.00% % of sales
262.6 330.9 416.5 Accounts receivable
60.0% 63.0% 65.0% % of sales
Inventories
% of Cost of sales
232.0 283.6 352.4 Other current assets
53.00% 54.00% 55.00% % of sales
Total Current Assets
% of sales
Net fixed assets
% of sales
Other assets***
30.6 47.3 64.1 % of sales
Err:522 Err:522 Err:522 Total assets
Err:522 Err:522 Err:522 % of sales
Err:522 Err:522 Err:522
Err:522 Err:522 Err:522 Liabilities and Equity
30% 30% 30% Accounts payable
% of Cost of Sales
Err:522 Err:522 Err:522 Taxes payable
Err:522 Err:522 Err:522 % of sales
10.9 10.9 10.9 Accruals
Err:522 Err:522 Err:522 % of sales
Overdrafts
% of sales
Other current liabilities
million) and impairment of fixed assets and goodwill (4.2 million). The exceptional costs
aining shops in the USA.

d, and to associated reorganization costs. Restructuring costs in 1999 arose from the

n manufacturing plant.
 million) and impairment of fixed assets and goodwill (4.2 million). The exceptional costs
aining shops in the USA. % of sales
Total Current Liabilities
d, and to associated reorganization costs. Restructuring costs in 1999 arose from the % of sales
Long-term liabilities
n manufacturing plant. % of sales
Other liabilities****
% of sales
Shareholders' equity
% of sales
Total liabs. and equity
% of sales

Trial Assets
Trial Liabs and Equity
Plug: Debt (Excess Cash)
xtra 3% next year and peak rate of 22% for 2004 assuming initiatives
s because of rise seen in last two years
40% and on a declining trend for going ahead
has been built with average hike of another 1% before it will peak

ne time
For cost cash
excess and interest
hence will haveof
income no 6%
future impact
has been built

$14.5 milion every year end

rate but on a declining trend. Inventory is measured at cost of sale

lating to sale of manufacturing plant which is assumed to have been r

rate. Accounts Payable is measured at cost of sales

28-Feb-99 28-Feb-00 28-Feb-01 28-Feb-02 28-Feb-03

0.0 0.0 0.0 Err:522 Err:522

34.0 19.2 13.7 15 14.5
11.2% 5.8% 3.7% 3.3% 2.8%
27.8 30.3 30.3 35.0 42.0
9.2% 9.2% 8.1% 8.0% 8.0%
38.6 44.7 51.3 57.8 58.3
30.2% 34.1% 34.4% 33.0% 30.0%
12.5 15.6 17.5 20.6 24.7
4.1% 4.7% 4.7% 4.7% 4.7%
112.9 109.8 112.8 Err:522 Err:522
37.2% 33.3% 30.2% Err:522 Err:522
87.8 104.7 110.6 131.3 157.6
28.9% 31.7% 29.6% 30.0% 30.0%
0.0 6.0 6.7 0.0 0.0
0.0% 1.8% 1.8% 0.0% 0.0%
200.7 220.5 230.1 Err:522 Err:522
66.1% 66.8% 61.5% Err:522 Err:522

13.0 20.5 10.7 19.3 21.4

10.2% 15.7% 7.2% 11.0% 11.0%
11.3 11.7 7.1 13.1 15.8
3.7% 3.5% 1.9% 3.0% 3.0%
10.8 15.6 11.5 16.6 20.0
3.6% 4.7% 3.1% 3.8% 3.8%
0.0 0.3 0.7 0.0 0.0
0.0% 0.1% 0.2% 0.0% 0.0%
21.6 13.3 16.9 21.9 26.3
 7.1% 4.0% 4.5% 5.0% 5.0%
56.7 61.4 46.9 70.9 83.4
18.7% 18.6% 12.5% 16.2% 15.9%
28.0 36.7 61.2 Err:522 Err:522
9.2% 11.1% 16.4% Err:522 Err:522
1.7 1.0 0.4 0.0 0.0
0.6% 0.3% 0.1% 0.0% 0.0%
114.3 121.4 121.6 Err:522 Err:522
37.6% 36.8% 32.5% Err:522 Err:522
200.7 220.5 230.1 Err:522 Err:522
66.1% 66.8% 61.5% Err:522 Err:522

200.7 220.5 230.1 259.2 297.1

172.7 183.8 168.9 Err:522 Err:522
- - - Err:522 Err:522
ng initiatives

e it will peak

t cost of sales

o have been recovered in 2002

28-Feb-04

Err:522
14.5
2.3%
51.3
8.0%
60.6
27.0%
30.1
4.7%
Err:522
Err:522
192.2
30.0%
0.0
0.0%
Err:522
Err:522

24.7
11.0%
19.2
3.0%
24.3
3.8%
0.0
0.0%
32.0
 5.0%
100.3
15.7%
Err:522
Err:522
0.0
0.0%
Err:522
Err:522
Err:522
Err:522

348.7
Err:522
Err:522
 Bear Case
Year Revenue Growth Cost of Sales Operating Cost Inventory
2002 13% 40% 53% 33% ###
2003 13% 40% 55% 33% ###
2004 13% 40% 57% 33% ###

Base Case
Year Revenue Growth Cost of Sales Operating Cost Inventory
2002 15% 40% 53% 33%
2003 18% 39% 54% 31%
2004 20% 38% 55% 30%

Optimistic Case
Year Revenue Growth Cost of Sales Operating Cost Inventory
2002 17% 40% 53% 33%
2003 20% 37% 54% 30%
2004 22% 35% 55% 27%
Bear Base Optimistic Bear Base
Revenue Revenue Revenue Net Profit Net Profit
422.7 430.2 437.7 Err:522 Err:522
477.7 507.7 525.2 Err:522 Err:522
539.8 609.2 640.8 Err:522 Err:522
Optimistic
Net Profit
Err:522
Err:522
Err:522