Coca-Cola

Assumptions

Hist.

Hist.

2009

2010

INCOME STATEMENT

Revenues - $
COGS excl deprec - % sales
Deprec - % of beg PP&E
SG&A- Increase as % Sales growth
Amortization expense - $
Restructuring charge-$
Gain(Loss) on sale-$
Effective tax rate
Interest income-$
Interest expense-$
Dividens-$

$
$
$
$
$
$

30,900,000
33%
11%
42%
63,000
51,000
313,000
24%
249,000
355,000
(3,800,000)

$
$
$
$
$
$

35,119,000
33%
8%
37%
102,000
59,000
819,000
25%
317,000
733,000
(4,068,000)

SHAREHOLDER INFORMATION
Basic WASO
Diluted WASO

Dividends per share - $

BALANCE SHEET
Cash and Cash Equivalents % SALES
Short Term Investments -$
Net receivable - % Sales
Inventories - % COGS + depreciation
other current assets - % sales
PP&E % SALES
Goodwill - $
Long term Investments - $
Capital expenditures - $
Other long-term assets - % Sales
Additions to Intangible assets
Accounts payable - % COGS
short/current long term debt - % COGS
Long term debt -$
Other liabilities-$
Deferred Long Term Liability Changes-$
Minority Interest-$
Common Stock

$
$

$
$
$
$
$

2,314,000
2,329,000
1.64 $

2,308,000
2,333,000
1.76

23%
24%
2,192,000 $
2,820,000
12%
13%
21%
21%
7%
9%
31%
42%
4,224,000.00
11,665,000.00
6,755,000 $
7,585,000
(1,993,000) $
(2,215,000)
6%
6%
$
6,640,000
69%
79%
67%
81%
5,059,000 $
14,041,000
2,965,000 $
4,794,000
1,580,000 $
4,261,000
547,000 $
314,000
880,000 $
880,000

Retained Earnings
Treasury Stock
Capital Surplus
Other Stockholder Equity

$
$
$
$

41,537,000
(25,398,000)
8,537,000
(757,000.00)

$
$
$
$

49,278,000
(27,762,000)
10,057,000
(1,450,000)

$
$
$
$
$
$

$
$
$

$
$
$
$
$

Hist.

Proj

Proj

Proj

2011

2012

2013

2014

46,542,000
36%
11%
13%
192,000
52,000
732,000
24%
483,000
417,000
(4,300,000)

$
$
$
$
$
$

2,284,000
2,323,000
1.88 $

28%
1,232,000
11%
17%
7%
32%
12,219,000.00
8,374,000
(2,920,000)
8%
206,000
57%
90%
13,656,000
5,420,000
4,694,000
286,000
880,000

$
$
$

$
$
$
$
$

50,963,490
36%
11%
35%
192,000
52,000
732,000
24%
483,000
417,000
(4,300,000)

$
$
$
$
$
$

2,284,000
2,323,000
1.88 $

29%
1,232,000
13%
19%
8%
29%
12,219,000.00
8,374,000
(2,920,000)
9%
68%
0%
13,656,000
5,420,000
4,694,000
286,000
880,000

$
$
$

$
$
$
$
$

56,314,656
39%
10%
34%
192,000
52,000
732,000
24%
483,000
417,000
(4,300,000)

$
$
$
$
$
$

2,284,000
2,323,000
1.88 $

32%
1,232,000
14%
19%
8%
28%
12,219,000.00
8,374,000
(2,920,000)
10%
68%
0%
13,656,000
5,420,000
4,694,000
286,000
880,000

$
$
$

$
$
$
$
$

62,509,269
40%
10%
34%
192,000
52,000
732,000
24%
483,000
417,000
(4,300,000)

2,284,000
2,323,000
1.88

33%
1,232,000
14%
19%
8%
27%
12,219,000.00
8,374,000
(2,920,000)
11%
68%
0%
13,656,000
5,420,000
4,694,000
286,000
880,000

$
$
$
$

53,550,000
(31,304,000)
11,212,000
(2,703,000)

$
$
$
$
$

62,295,526
(31,304,000)
11,212,000
(2,703,000)
-

$
$
$
$
$

71,402,180
(31,304,000)
11,212,000
(2,703,000)
-

$
$
$
$
$

81,075,323
(31,304,000)
11,212,000
(2,703,000)
-

$
$
$
$
$
$

$
$
$

$
$
$
$
$

Proj

Proj

Proj

Proj

2015

2016

2017

2018

69,697,835
41%
10%
33%
192,000
52,000
732,000
24%
483,000
417,000
(4,300,000)

$
$
$
$
$
$

2,284,000
2,323,000
1.88 $

34%
1,232,000
15%
19%
8%
27%
12,219,000.00
8,374,000
(2,920,000)
12%
68%
0%
13,656,000
5,420,000
4,694,000
286,000
880,000

$
$
$

$
$
$
$
$

77,852,481
42%
9%
33%
192,000
52,000
732,000
24%
483,000
417,000
(4,300,000)

$
$
$
$
$
$

2,284,000
2,323,000
1.88 $

35%
1,232,000
16%
19%
8%
26%
12,219,000.00
8,374,000
(2,920,000)
13%
68%
0%
13,656,000
5,420,000
4,694,000
286,000
880,000

$
$
$

$
$
$
$
$

87,973,304
43%
10%
32%
192,000
52,000
732,000
24%
483,000
417,000
(4,300,000)

$ 100,729,433
44%
12%
31%
$
192,000
$
52,000
$
732,000
24%
$
483,000
$
417,000
$ (4,300,000)

2,284,000
2,323,000
1.88 $

36%
1,232,000
15%
19%
8%
27%
12,219,000.00
8,374,000
(2,920,000)
13%
68%
0%
13,656,000
5,420,000
4,694,000
286,000
880,000

2,284,000
2,323,000
1.88

38%
1,232,000
17%
19%
8%
30%
12,219,000.00
$
8,374,000
$ (2,920,000)
14%
$
68%
0%
$ 13,656,000
$
5,420,000
$
4,694,000
$
286,000
$
880,000

$
$
$
$
$

91,961,249
(31,304,000)
11,212,000
(2,703,000)
-

$
$
$
$
$

104,027,435
(31,304,000)
11,212,000
(2,703,000)
-

$
$
$
$
$

117,465,385
(31,304,000)
11,212,000
(2,703,000)
-

$ 132,413,268
$ (31,304,000)
$ 11,212,000
$ (2,703,000)
$
-

$
$
$
$
$
$

$
$
$

$
$
$
$
$

Proj

Proj

Proj

2019

2020

2021

115,133,742
45%
11%
30%
192,000
52,000
732,000
24%
483,000
417,000
(4,300,000)

$
$
$
$
$
$

2,284,000
2,323,000
1.88 $

40%
1,232,000
16%
19%
8%
31%
12,219,000.00
8,374,000
(2,920,000)
15%
68%
0%
13,656,000
5,420,000
4,694,000
286,000
880,000

$
$
$

$
$
$
$
$

131,252,466
46%
11%
31%
192,000
52,000
732,000
24%
483,000
417,000
(4,300,000)

$ 147,790,276
47%
13%
32%
$
192,000
$
52,000
$
732,000
24%
$
483,000
$
417,000
$ (4,300,000)

2,284,000
2,323,000
1.88 $

43%
1,232,000
17%
19%
8%
30%
12,219,000.00
8,374,000
(2,920,000)
16%
68%
0%
13,656,000
5,420,000
4,694,000
286,000
880,000

2,284,000
2,323,000
1.88

4100%
1,232,000
15%
19%
8%
32%
12,219,000.00
$
8,374,000
$ (2,920,000)
17%
$
68%
0%
$ 13,656,000
$
5,420,000
$
4,694,000
$
286,000
$
880,000

$
$
$
$
$

150,414,809
(31,304,000)
11,212,000
(2,703,000)
-

$
$
$
$
$

169,386,062
(31,304,000)
11,212,000
(2,703,000)
-

$ 188,555,887
$ (31,304,000)
$ 11,212,000
$ (2,703,000)
$
-

Coca-Cola
Assumptions

Hist.

Hist.

2008

2009

Global vs US
Approach 2: Global vs US

Global Sales analysis

22,979,000

Revenues - Outside US

growth rate
8,011,000

Revenues - US

growth rate
Non US sales - % DSD
Total revenues - approx
implied growth rate

30,990,000

Revenue scenarios
Select a revenue growth scenario

1
2
3
4
Hist.
2008

Revenue growth rate assumption

Revenue - $

Hist.

Hist.

Proj

Proj

Proj

2010

2011

2012

2013

2014

24,490,000
6.6%
10,629,000
32.7%

27,843,000
13.7%
18,699,000
75.9%

32,019,450
15.0%
30,853,350
65.0%

38,423,340
20.0%
49,365,360
60.0%

48,029,175
25.0%
74,048,040
50.0%

35,119,000
13.32%

46,542,000
32.53%

62,872,800

87,788,700

122,077,215

13.5%
13.5%
13.0%
12.0%

14.0%
14.0%
12.9%
11.5%

ue scenarios
a revenue growth scenario

Base case
Upside case = High global growth
Downside case - Limited global growth
Extreme - Health Trends Slow Growth
Hist.

Hist.

Hist.

Proj

Proj

2009

2010

2011

2012

2013

30,900,000

35,119,000

46,542,000

12.0%
52,127,040

11.5%
58,121,650

Proj

Proj

Proj

Proj

Proj

2015

2016

2017

2018

2019

62,918,219
31.0%
103,667,256
40.0%

86,197,960
37.0%
134,767,433
30.0%

124,987,043
45.0%
168,459,291
25.0%

191,230,175
53.0%
208,889,521
24.0%

304,055,978
59.0%
250,667,425
20.0%

166,585,475

220,965,393

293,446,334

400,119,696

554,723,403

14.2%
14.6%
12.5%
11.4%

14.5%
15.0%
12.3%
11.0%

14.6%
15.5%
12.0%
10.0%

14.8%
16.0%
11.0%
9.0%

15.0%
16.5%
10.0%
8.0%

Proj

Proj

Proj

Proj

Proj

2014

2015

2016

2017

2018

10.0%
79,056,719

9.0%
86,171,824

11.4%
64,747,518

11.0%
71,869,745

8.0%
93,065,570

Proj

Proj

2020

2021

492,570,685
62.0%
295,787,562
18.0%

788,113,096
60.0%
340,155,696
15.0%

788,358,246

1,128,268,792

15.3%
17.0%
9.6%
7.0%

15.4%
17.5%
9.5%
6.0%

15.0%
18.0%
9.4%
6.0%

Proj

Proj

Proj

2019

2020

2021

7.0%
99,580,160

6.0%
105,554,969

6.0%
111,888,267

Coca-Cola
Hist. 12/31/2009 Hist. 12/31/2010 Hist. 12/31/2011

Proj 2012

Cash and Cash Equivalents

7,021,000

8,517,000

Short Term Investments

2,192,000

2,820,000

1,232,000

Net Receivables

3,758,000

4,430,000

4,920,000

Inventory

2,354,000

2,650,000

3,092,000

Other Current Assets

2,226,000

3,162,000

3,450,000

17,192,364
6,625,254
5,129,193
4,077,079

Total Current Assets

17,551,000

$ 21,579,000

25,497,000

Long term Investments

6,755,000

7,585,000

8,374,000

Property Plant and Equipment

9,561,000

$ 14,727,000

14,939,000

Goodwill

4,224,000

$ 11,665,000

12,219,000

Intangible Assets

8,604,000

$ 15,244,000

15,450,000

Other Assets

1,976,000

2,121,000

3,495,000

48,671,000

$ 72,921,000

79,974,000

Accounts Payable

6,921,000

9,132,000

9,371,000

Short/Current Long Term Debt

6,800,000

9,376,000

14,912,000

14,912,000

13,721,000

$ 18,508,000

24,283,000

27,387,862

Long Term Debt

5,059,000

$ 14,041,000

13,656,000

Other Liabilities

2,965,000

4,794,000

5,420,000

Deferred Long Term Liability Changes

1,580,000

4,261,000

4,694,000

Minority Interest

547,000

314,000

286,000

23,872,000

$ 41,918,000

48,339,000

Common Stock

880,000

Retained Earnings

41,537,000

Treasury Stock

$ (25,398,000) $

Capital Surplus

Other Stockholder Equity

Total Stockholder Equity

Total Laibilities + Stockholder Equity

Balance Sheet
Current Assets

Total Assets

12,803,000

33,023,889

8,374,000
16,215,710
12,219,000
15,258,000
4,077,079
$

89,167,678

Liabilities
Current Liabilities

Total Current Liabilities

Total Liabilities

12,475,862

13,656,000
5,420,000
4,694,000
286,000
$

51,443,862

Stockholder's Equity

880,000
49,278,000 $ 53,550,000
62,295,526
(27,762,000) $ (31,304,000) (31,304,000)
10,057,000 $ 11,212,000
11,212,000
(1,450,000) $ (2,703,000)
(2,703,000)
880,000

880,000

24,799,000

$ 31,003,000

31,635,000

37,723,816

48,671,000

$ 72,921,000

79,974,000

89,167,678

8,537,000

(757,000) $

balance check

Proj 2013

Proj 2014

Proj 2015

22,192,665
7,884,052
5,794,487
4,505,173

27,842,495
8,751,298
6,502,118
5,000,741

34,217,038
10,454,675
7,297,734
5,575,827

40,376,376

8,374,000
17,514,139
12,219,000
15,066,000
4,505,173
$

98,054,687

14,934,647

48,096,652

57,545,274

8,374,000
18,682,725
12,219,000
14,874,000
5,000,741

8,374,000
19,734,453
12,219,000
14,682,000
5,575,827

107,247,119

$ 118,130,553

17,002,521

19,431,756

Proj 2016

Proj 2017

41,612,877
12,456,397
7,988,729
6,228,198
$

68,286,202

52,041,767
13,195,996
9,275,254
7,037,864
$

8,374,000
20,878,352
12,219,000
14,490,000
6,228,198
$

130,475,752

Proj 2018

81,550,881

61,867,049
17,124,004
11,026,243
8,058,355
$

8,374,000
21,710,517
12,219,000
14,298,000
7,037,864
$

22,234,669

145,190,262

98,075,650

8,374,000
22,025,255
12,219,000
14,106,000
8,058,355
$

25,723,394

162,858,259

30,138,246

14,912,000

14,912,000

14,912,000

14,912,000

14,912,000

14,912,000

29,846,647

31,914,521

34,343,756

37,146,669

40,635,394

45,050,246

13,656,000
5,420,000
4,694,000
286,000
$

53,902,647

13,656,000
5,420,000
4,694,000
286,000
$

880,000
71,402,180
(31,304,000)
11,212,000
(2,703,000)

55,970,521

13,656,000
5,420,000
4,694,000
286,000
$

58,399,756

13,656,000
5,420,000
4,694,000
286,000
$

880,000
880,000
81,075,323
91,961,249
(31,304,000) (31,304,000)
11,212,000
11,212,000
(2,703,000) (2,703,000)

44,152,041

51,276,598

98,054,687

107,247,119

61,202,669

13,656,000
5,420,000
4,694,000
286,000
$

880,000
104,027,435
(31,304,000)
11,212,000
(2,703,000)

64,691,394

13,656,000
5,420,000
4,694,000
286,000
$

880,000
117,465,385
(31,304,000)
11,212,000
(2,703,000)

69,106,246

880,000
132,413,268
(31,304,000)
11,212,000
(2,703,000)

59,730,797

69,273,083

80,498,868

93,752,013

$ 118,130,553

130,475,752

145,190,262

162,858,259

Proj 2019

77,936,270
18,421,399
12,266,713
9,210,699
$

117,835,081

8,374,000
22,522,477
12,219,000
13,914,000
9,210,699
$

184,075,257

Proj 2020

Proj 2021

92,506,573
22,312,919
13,948,938
10,500,197

111,771,775
22,168,541
16,070,802
11,823,222

139,268,628

8,374,000
22,965,004
12,219,000
13,722,000
10,500,197
$

35,230,925

207,048,829

161,834,341

8,374,000
22,899,554
12,219,000
13,530,000
11,823,222
$

41,055,771

230,680,116

46,831,783

14,912,000

14,912,000

14,912,000

50,142,925

55,967,771

61,743,783

13,656,000
5,420,000
4,694,000
286,000
$

74,198,925

13,656,000
5,420,000
4,694,000
286,000
$

80,023,771

13,656,000
5,420,000
4,694,000
286,000
$

880,000
880,000
150,414,809 169,386,062
(31,304,000) (31,304,000)
11,212,000
11,212,000
(2,703,000)
(2,703,000)

85,799,783

880,000
188,555,887
(31,304,000)
11,212,000
(2,703,000)

109,876,332

127,025,058

144,880,334

184,075,257

207,048,829

230,680,116

Coca-Cola
Income Statement
12/31/2011

12/31/2010

Total Revenue

46,542,000

35,119,000

Cost of Revenue

18,216,000

12,693,000

Gross Profit

28,326,000

22,426,000

Gross profit margin

61%

64%

Selling General and Administrative

17,440,000

13,158,000

Gain/(loss) on sale

732,000

819,000

10,154,000

8,449,000

Operating profit
Operating Margin

22%

24%

Intrest income

483,000

Interest Expense

417,000

733,000

equity income (loss)

690,000

1,025,000

other income (loss)

529,000

5,185,000

Income Before income Tax

11,439,000

14,243,000

Income Tax Expense

2,805,000

2,384,000

Consolidated Net Income

8,634,000

11,859,000

Less net income attributable to non controlling intrests

62,000

50,000

Net Income

8,572,000

11,809,000

Net margin

18%

317,000

34%

share holder/other information

Depreciation espense

1,654,000

1,188,000

amortization expense

192,000

102,000

Basic

3.75

5.12

Diluted

3.69

5.06

Weighted average common shares outstanding

Diluted

2,323,000

2,333,000

Cash Dividens Declared per common share

1.88

1.76

Net earnings per share

Restructuring charge

52,000

59,000

12/31/2009
$

30,900,000

11,088,000

19,812,000

64%
$

11,358,000

313,000

8,141,000
26%

249,000

355,000

781,000

40,000

8,856,000

2,040,000

6,816,000

82,000

6,734,000
22%

1,005,000

63,000

2.95

2.93

2,329,000

1.64

51,000

Coca-Cola "Cleaned"
Income Statement
Hist. 12/31/2009

Hist. 12/31/2010

Hist. 12/31/2011

Total Revenue

30,900,000

35,119,000

46,542,000

Cost of Revenue (excl deprc)

10,083,000

11,505,000

16,562,000

20,817,000

23,614,000

29,980,000

Gross Profit
Gross Profit Margin
Selling General and Administrative cleaned

67%

67%

64%

11,295,000

13,056,000

17,248,000

9,522,000

10,558,000

12,732,000

Depreciation espense

1,005,000

1,188,000

1,654,000

amortization expense

63,000

102,000

192,000

EBITA-core, reccuring

8,454,000

9,268,000

10,886,000

EBITA

Core, recurring EBIT margin

27%

Restructuring charge

Gain/(loss) on sale

26%

51,000

23%

59,000

52,000

313,000

819,000

732,000

Operating Profit as reported

8,716,000

10,028,000

11,566,000

Interest income

249,000

317,000

483,000

Interest expense

355,000

733,000

417,000

Earnings before tax

8,610,000

9,612,000

11,632,000

Income tax (provision)

2,040,000

2,384,000

2,805,000

Net earnings

6,570,000

7,228,000

8,827,000

Net Profit Margin

21%

21%

19%

share holder/other information

Depreciation espense

1,005,000

1,188,000

1,654,000

amortization expense

63,000

102,000

192,000

Basic

2.95

5.12

3.75

Diluted

2.93

5.06

3.69

Weighted average common shares outstanding

Diluted

2,329,000

2,333,000

2,323,000

Cash Dividens Declared per common share

1.64

1.76

1.88

(4,068,000) $

(4,300,000)

Net earnings per share

dividens

(3,800,000) $

Proj 2012

Proj 2013

Proj 2015

50,963,490
18,346,856

56,314,656
21,962,716

62,509,269
25,003,707

69,697,835
28,576,112

32,616,634

34,351,940

37,505,561

41,121,722

64%

61%

60%

59%

17,837,222

19,146,983

21,253,151

23,000,285

14,779,412

15,204,957

16,252,410

18,121,437

1,643,290
192,000
12,944,122

1,621,571
192,000
13,391,386

1,751,414
192,000
14,308,996

1,868,273
192,000
16,061,164

25%

24%

23%

23%

52,000
732,000

52,000
732,000

52,000
732,000

52,000
732,000

13,624,122

14,071,386

14,988,996

16,741,164

483,000
417,000

483,000
417,000

483,000
417,000

483,000
417,000

13,690,122

14,137,386

15,054,996

16,807,164

3,301,306

3,409,162

3,630,439

4,052,966

10,388,816

10,728,225

11,424,557

12,754,199

20%

19%

18%

18%

1,643,290
192,000

Proj 2014

2,323,000
1.88 $
(4,300,000)

1,621,571
192,000

2,323,000
1.88 $
(4,300,000)

1,751,414
192,000

2,323,000
1.88 $
(4,300,000)

1,868,273
192,000

2,323,000
1.88
(4,300,000)

Proj 2016

Proj 2017

Proj 2019

Proj 2020

77,852,481
32,698,042

87,973,304
37,828,521

100,729,433
44,320,950

115,133,742
51,810,184

131,252,466
60,376,134

45,154,439

50,144,783

56,408,482

63,323,558

70,876,331

58%

57%

56%

55%

54%

25,691,319

28,151,457

31,226,124

34,540,123

40,688,264

19,463,120

21,993,326

25,182,358

28,783,435

30,188,067

1,776,101
192,000
17,495,020

2,087,835
192,000
19,713,491

2,605,262
192,000
22,385,096

2,422,778
192,000
26,168,657

2,477,472
192,000
27,518,595

22%

22%

22%

23%

21%

52,000
732,000

52,000
732,000

52,000
732,000

52,000
732,000

52,000
732,000

18,175,020

20,393,491

23,065,096

26,848,657

28,198,595

483,000
417,000

483,000
417,000

483,000
417,000

483,000
417,000

483,000
417,000

18,241,020

20,459,491

23,131,096

26,914,657

28,264,595

4,398,733

4,933,706

5,577,951

6,490,338

6,815,869

13,842,287

15,525,784

17,553,145

20,424,319

21,448,726

17%

18%

16%

18%

1,776,101
192,000

Proj 2018

2,323,000
1.88 $
(4,300,000)

18%

2,087,835
192,000

2,323,000
1.88 $
(4,300,000)

2,605,262
192,000

2,323,000
1.88 $
(4,300,000)

2,422,778
192,000

2,323,000
1.88 $
(4,300,000)

2,477,472
192,000

2,323,000
1.88
(4,300,000)

Proj 2021

147,790,276
68,870,269
78,920,007
53%

47,292,888
31,627,119

2,985,451
192,000
28,449,669
19%

52,000
732,000
29,129,669

483,000
417,000
29,195,669

7,040,393
22,155,276
15%

2,985,451
192,000

2,323,000
1.88
(4,300,000)

Coca-Cola
Cash Flow Statement

Hist. 12/31/2009 Hist. 12/31/2010 Hist. 12/31/2011

Net Income
Depreciation
Amortization
Operating Activities
Change in Accounts Recievable
Change in Inventories
Change in Other Currents Assets
Change in Accounts Payable
Change in Other Current Liabilities
Change in Other Longterm Investments
Change in Short Term Investments
Other long term assets
Total Cash Flow from Operating Activities

Capital Expenditures

(1,993,000) $

(2,215,000) $

Investments

(2,152,000) $

(679,000) $

(4,145,000) $

(2,894,000) $

Investing Activities
(2,920,000)
803,000

Goodwill
Change Intangible Assets
Other Liabilities
Total Cash Flows From Investing Activities

(2,117,000)

Financing Activities
Common Stock
Long-term Debt
Other Liabilities
Dividends Paid
Purchasing of Treasury

Total Cash Flows from Financing Activities

Effect of Exchange Rate Changes
Change in Cash

balance at beginning of year

Change in Cash

balance at end of year

12,803,000

Proj 2012

10,388,816
1,643,290
192,000

Proj 2013

Proj 2014

Proj 2015

Proj 2016

Proj 2017

10,728,225
1,621,571
192,000

11,424,557
1,751,414
192,000

12,754,199
1,868,273
192,000

13,842,287
1,776,101
192,000

15,525,784
2,087,835
192,000

(1,705,254)
(1,258,798)
(2,037,193)
(665,294)
(627,079)
(428,093)
3,104,862
2,458,785
$ 1,232,000 $
$
(582,079)
(428,093)
$ 11,609,364

(2,920,000)
0
0
0
$

(2,920,000) $

12,220,301

(2,920,000)
0
0
0
(2,920,000) $

(867,246) (1,703,378) (2,001,722)

(739,599)
(707,631)
(795,616)
(690,995)
(1,286,525)
(495,569)
(575,085)
(652,372)
(809,666)
2,067,874
2,429,235
2,802,912
3,488,725
$
$
$
(495,569)
(575,085)
(652,372)
(809,666)
12,869,830

(2,920,000)
0
0
0
(2,920,000) $

13,594,543

(2,920,000)
0
0
0
(2,920,000) $

14,615,840

(2,920,000)
0
0
0
(2,920,000) $

17,648,889

(2,920,000)
0
0
0
(2,920,000)

(4,300,000)
-

(4,300,000)
-

(4,300,000)
-

(4,300,000)
-

(4,300,000)
-

(4,300,000)
-

(4,300,000) $

(4,300,000) $

$ 4,389,364 $ 5,000,301 $

(4,300,000) $

(4,300,000) $

(4,300,000) $

(4,300,000)

5,649,830 $ 6,374,543 $ 7,395,840 $ 10,428,889

12,803,000
17,192,364
22,192,665 27,842,495 34,217,038
41,612,877
$ 4,389,364 $ 5,000,301 $ 5,649,830 $ 6,374,543 $ 7,395,840 $ 10,428,889

17,192,364

22,192,665

27,842,495

34,217,038

41,612,877

52,041,767

Proj 2018

Proj 2019

Proj 2020

Proj 2021

17,553,145
2,605,262
192,000

20,424,319
2,422,778
192,000

21,448,726
2,477,472
192,000

22,155,276
2,985,451
192,000

(3,928,008)
(1,297,395)
(1,750,988)
(1,240,470)
(1,020,490)
(1,152,345)
4,414,852
5,092,679
$
$
$
(1,020,490)
(1,152,345)
$

17,045,282

(2,920,000)
0
0
0
$

(2,920,000) $

23,289,221

(2,920,000)
0
0
0
(2,920,000) $

(3,891,520)
144,378
(1,682,225)
(2,121,864)
(1,289,498)
(1,323,025)
5,824,846
5,776,012
$
(1,289,498)
(1,323,025)
21,790,303

(2,920,000)
0
0
0
(2,920,000) $

26,485,202

(2,920,000)
0
0
0
(2,920,000)

(4,300,000)
-

(4,300,000)
-

(4,300,000)
-

(4,300,000)
-

(4,300,000) $

(4,300,000) $

(4,300,000) $

(4,300,000)

$ 9,825,282 $ 16,069,221 $ 14,570,303 $ 19,265,202

52,041,767
61,867,049
77,936,270
92,506,573
$ 9,825,282 $ 16,069,221 $ 14,570,303 $ 19,265,202

61,867,049

77,936,270

92,506,573

111,771,775

Coca-Cola Corp
Measures
Income Measures
Gross profit
Operating profit
EBIT: core and recurring
Net income
Operating working capital measures

12/31/2009
$
$
$
$

19,812,000
8,141,000
8,454,000
6,570,000

12/31/2010
$
$
$
$

22,426,000
8,449,000
9,268,000
7,228,000

12/31/2011
$
$
$
$

28,326,000
10,154,000
10,886,000
8,827,000

Working capital
Operating working capital = OWC
Net new investment in OWC
Cash flow measures

$
$
$

3,830,000.00 $
7,665,000 $
12,000.00 $

3,071,000.00 $
7,653,000 $
(3,053,000.00)

1,214,000.00
10,706,000

Capital Expenditures
Depreciation & amortization
EBITDA - core and recurring
NOPAT - core recurring
Operating Cash Flow
Free Cash Flow
Valuation measures

$
$

(1,993,000) $
1,068,000 $
7,386,000
6,450,962
7,518,962
5,537,962

(2,215,000) $
1,290,000 $
7,978,000
6,969,320
8,259,320
2,991,320

(2,920,000)
1,846,000
9,040,000
8,260,894
10,106,894
7,106,000

24,799,000
2,329,000

31,003,000
2,333,000

31,635,000
2,323,000

Book value of equity

Market value of equity - basic shares

12/31/2012
$
$
$
$

$
$

$
$

22,426,000
8,449,000
12,944,122
10,388,816

12/31/2013
$
$
$
$

19,812,000
8,141,000
13,391,386
10,728,225

12/31/2013
$
$
$
$

14,308,996
11,424,557

12/31/2014
Gross Profit
$
Depreciation espense
$
$
16,061,164 $
$
12,754,199 $

12/31/2015
20,817,000
1,005,000
17,495,020
13,842,287

5,636,026.81 $ 10,529,729.07 $ 16,182,131.19 $ 23,201,517.26 $ 31,139,533.03

15,128,027 $
20,021,729 $
25,674,131 $
32,693,517 $
40,631,533

(2,920,000) $
1,835,290 $
11,108,832
9,733,678
11,568,968
7,106,000

(2,920,000) $
1,813,571 $
11,577,815
10,218,514
12,032,085
7,106,000

(2,920,000) $
1,943,414 $
12,365,582
14,308,996
16,252,410
7,106,000

(2,920,000) $
2,060,273 $
14,000,892
16,061,164
18,121,437
7,106,000

(2,920,000)
1,968,101
15,526,919
17,495,020
19,463,120
7,106,000

37,723,816
2,323,000

44,152,041
2,323,000

51,276,598
2,323,000

59,730,797
2,323,000

69,273,083
2,323,000

12/31/2016
$
$
$
$

23,614,000
1,188,000
19,713,491
15,525,784

$ 40,915,486.88
$
50,407,487

$
$

(2,920,000)
2,279,835
17,433,656
19,713,491
21,993,326
7,106,000

80,498,868
2,323,000

12/31/2017
$
$
$
$

29,980,000
1,654,000
22,385,096
17,553,145

12/31/2018
$
$
$
$

$ 53,025,403.85 $
$
62,517,404 $

$
$

(2,920,000) $
2,797,262 $
19,587,834
22,385,096
25,182,358
7,106,000

93,752,013
2,323,000

32,616,634
1,643,290
26,168,657
20,424,319

12/31/2019
$
$
$
$

67,692,156.36 $
77,184,156 $

(2,920,000) $
2,614,778 $
23,553,879
26,168,657
28,783,435
7,106,000

109,876,332
2,323,000

34,351,940
1,621,571
27,518,595
21,448,726

12/31/2020
$
$
$
$

37,505,561
1,751,414
28,449,669
22,155,276

83,300,856.54 $ 100,090,557.89
92,792,857 $
109,582,558

(2,920,000) $
2,669,472 $
24,849,122
27,518,595
30,188,067
7,106,000

127,025,058
2,323,000

(2,920,000)
3,177,451
25,272,218
28,449,669
31,627,119
7,106,000

144,880,334
2,323,000

Coca-Cola Corp.
Ratios
Quick Ratio
Current Ratio
Days sales outstanding
Inventory turnover
Inventory days
Fixed asset turnover
Total asset turnover
CAPEX/sales
OWC/sales
Total debt/equity
Total debt to Total assets ratio
TIE
ROA
ROE
FCF
Basic earing power
Year over year growth in sales
Year over year growth in net income
Year over year growth in EBIT
Year over year growth in FCF
Year over year growth in EPS (diluted)
P/E
Price to Book
Price to Free Cash Flow
Earnings Yield
Dividend yield

Hist. 12/31/2009
Hist. 12/31/2010
1.11
1.02
1.28
1.17
44.39
46.04
13.13 x
13.25 x
77.49
76.20
3.23 x
2.38 x
0.63 x
0.48 x
6.45%
6.31%
25%
22%
48%
76%
24%
32%
23.81 x
12.64 x
13%
10%
26%
23%
$
5,537,962 $
2,991,320
17%
13%
-12%
-9%
-10%
85%
-42%
8.98
5.94
2.5
2.2
10.99
23.19
11%
17%
6%
6%

Hist. 12/31/2011
0.92
1.05
38.58
15.05 x
61.96
3.12 x
0.58 x
6.27%
23%
90%
36%
26.11 x
11%
28%
$
7,106,000
14%
-25%
-18%
-17%
-58%
37%
10.44
2.8
12.38
10%
5%

COCA-COLA
EQUITY
Equity - beginning balance
Net income
Dividends
Equity - ending balance
PP&E
PP&E, Beginning
CAPEX
Depreciation
PP&E Ending
INTANGIBLE ASSETS
Beginning balance
Additions
Amortization
Ending balance

Hist.

Proj

Proj

2011

2012

2013

31,635,000

31,635,000
10,388,816
(4,300,000)
37,723,816

37,723,816
10,728,225
(4,300,000)
44,152,041

14,939,000

14,939,000
(2,920,000)
1,643,290
16,215,710

16,215,710
(2,920,000)
1,621,571
17,514,139

15,450,000

15,450,000
192,000
15,258,000

15,258,000
192,000
15,066,000

Proj

Proj

Proj

Proj

Proj

Proj

Proj

2014

2015

2016

2017

2018

2019

2020

44,152,041 51,276,598 59,730,797 69,273,083

11,424,557 12,754,199 13,842,287 15,525,784
(4,300,000) (4,300,000) (4,300,000) (4,300,000)
51,276,598 59,730,797 69,273,083 80,498,868

80,498,868
93,752,013 109,876,332
17,553,145
20,424,319
21,448,726
(4,300,000)
(4,300,000)
(4,300,000)
93,752,013 109,876,332 127,025,058

17,514,139 18,682,725 19,734,453 20,878,352

(2,920,000) (2,920,000) (2,920,000) (2,920,000)
1,751,414
1,868,273
1,776,101
2,087,835
18,682,725 19,734,453 20,878,352 21,710,517

21,710,517
(2,920,000)
2,605,262
22,025,255

22,025,255
(2,920,000)
2,422,778
22,522,477

22,522,477
(2,920,000)
2,477,472
22,965,004

15,066,000
192,000
14,874,000

14,298,000
192,000
14,106,000

14,106,000
192,000
13,914,000

13,914,000
192,000
13,722,000

14,874,000
192,000
14,682,000

14,682,000
192,000
14,490,000

14,490,000
192,000
14,298,000

Proj
2021

127,025,058
22,155,276
(4,300,000)
144,880,334

22,965,004
(2,920,000)
2,985,451
22,899,554

13,722,000
192,000
13,530,000

Coca-Cola
24%
2,284,000
2,323
38.52
$ (4,300,000)

Coca-Cola
24%
25%
24%
2,284,000
2,308,000
2,314,000
2,323
2,333
2,329
30.06
26.3
38.52
$ (4,300,000) $ (4,068,000) $ (3,800,000)

14,779,412

EBIT

1,846,000

Depreciation & amortization

Change in OWC & other operating cash flows
CAPEX
Tax rate
FCF long run growth rate

3%

WACC

7%

Cash
Value of Debt

27,742,000
13,656,000.0

Shares of stock outstanding

2,323,000.0

EV/EBITDA multiple (ltm)

11.0

A: Enterprise Valuation: Relative Valuation using Trailing EBITDA Multiple

EBITDA
EV
Equity value
Share price

16,614,702.1
182,761,723.1
196,847,723.1
$84.74

B: Enterprise Valuation Assuming Constant Growth

FCF
EV
Equity value
Share price

245,972,589.6
260,058,589.6
$111.95

C: Enterprise Valuation: Use Forecast since we assume Non-Constant Growth over short term;TV

Variable growth phase

Year (for discounting)
Free cash flow

Present value of FCF

TV using EBITDA multiple

PV of TV

Enterprise value
Equity value
Share price

17,767,802.1
117,384,383.0
131,470,383.0
$56.60

D: Enterprise Valuation: Use Forecast since we assume Non-Constant Growth over short term;TV
Stable growth phase
Free cash flow during first year of stable growth
Enterprise value when growth becomes stable
Present value of enterprise value in stable phase

Enterprise value
Equity value
Share price

56,678,711.4
156,295,292.4
170,381,292.4
$73.35

E: Enterprise Valuation Assuming Non-Constant Growth and Finite Time Horizon

Year
Free cash flow
FCF growth rate expected
Year (for discounting)
Free Cash Flow
PV of FCF

Enterprise Value for 60 year time horizon

151,676,403.1

Equity value

165,762,403.1

Share price

End

$71.36

15,204,957

16,252,410

18,121,437

19,463,120

21,993,326

1,835,290

1,813,571

1,943,414

2,060,273

1,968,101

(614,742)

(321,495)

(498,141)

(1,219,928)

(1,194,548)

(2,920,000)

(2,920,000)

(2,920,000)

(2,920,000)

(2,920,000)

24%

24%

24%

24%

24%

9,838,903.6

wth over short term;TV is based off EBITDA Multiple

9,838,903.6

10,905,297.0

12,276,814.1

12,690,028.0

14,543,295.7

9,195,237.0

9,525,108.7

10,021,537.3

9,681,161.6

10,369,168.8

wth over short term;TV assumes we hit steady state and can apply constant growth model

2011

2012

9,838,903.6

2013

10,905,297.0

10.8%

12,276,814.1

12.6%

2014

2015

12,690,028.0

14,543,295.7

3.4%

14.6%

9,838,903.6

10,905,297.0

12,276,814.1

12,690,028.0

14,543,295.7

9,195,237.0

9,525,108.7

10,021,537.3

9,681,161.6

10,369,168.8

25,182,358

28,783,435

30,188,067

31,627,119

2,279,835

2,797,262

2,614,778

2,669,472

3,177,451

(2,327,895)

1,152,476

(156,730)

(3,305,125)

(2,920,000)

(2,920,000)

24%

24%

250,124
(2,920,000)
24%

(2,920,000)
24%

24%

10

18,312,860.5

18,414,587.7

22,853,263.9

21,421,971.2

4,329,926.4

11

12,202,632.2

11,467,679.7

13,300,807.7

11,652,133.0

2,201,115.0

34,951,956.0

growth model

0.0
111,495,604.1

2016
18,312,860.5

25.9%

2017

2018

2019

18,414,587.7

22,853,263.9

21,421,971.2

0.6%

24.1%

2020
-6.3%

2021

4,329,926.4

-79.79%

4,535,597.9

4.75%

10

11

18,312,860.5

18,414,587.7

22,853,263.9

21,421,971.2

4,329,926.4

4,535,597.9

12,202,632.2

11,467,679.7

13,300,807.7

11,652,133.0

2,201,115.0

2,154,829.9

2022

2023

2024

2025

2026

2027

2028

4,751,038.8

4,964,835.5

5,175,841.0

5,382,874.7

5,584,732.5

5,780,198.1

5,968,054.5

4.75%

4.50%

4.25%

4.00%

3.75%

3.50%

3.25%

12

13

14

15

16

17

18

4,751,038.8

4,964,835.5

5,175,841.0

5,382,874.7

5,584,732.5

5,780,198.1

5,968,054.5

2,109,518.0

2,060,230.2

2,007,280.4

1,951,001.5

1,891,742.1

1,829,862.7

1,765,732.0

2029

2030

2031

2032

2033

2034

2035

6,147,096.2

6,331,509.1

6,521,454.3

6,717,098.0

6,918,610.9

7,126,169.2

7,339,954.3

3.00%

3.00%

3.00%

3.00%

3.00%

3.00%

3.00%

19

20

21

22

23

24

25

6,147,096.2

6,331,509.1

6,521,454.3

6,717,098.0

6,918,610.9

7,126,169.2

7,339,954.3

1,699,723.3

1,636,182.3

1,575,016.6

1,516,137.4

1,459,459.4

1,404,900.2

1,352,380.5

2036

2037

2038

2039

2040

2041

2042

7,560,152.9

7,786,957.5

8,020,566.3

8,261,183.2

8,509,018.7

8,764,289.3

9,027,218.0

3.00%

3.00%

3.00%

3.00%

3.00%

3.00%

3.00%

26

27

28

29

30

31

32

7,560,152.9

7,786,957.5

8,020,566.3

8,261,183.2

8,509,018.7

8,764,289.3

9,027,218.0

1,301,824.3

1,253,157.9

1,206,310.9

1,161,215.2

1,117,805.3

1,076,018.1

1,035,793.2

2043

2044

2045

9,298,034.5

9,576,975.6

9,864,284.8

3.00%

3.00%

2046

3.00%

2047

10,160,213.4

3.00%

2048

10,465,019.8

3.00%

2049

10,778,970.4

3.00%

11,102,339.5

3.00%

33

34

35

36

37

38

39

9,298,034.5

9,576,975.6

9,864,284.8

10,160,213.4

10,465,019.8

10,778,970.4

11,102,339.5

997,071.9

959,798.2

923,917.9

889,378.9

856,131.1

824,126.2

793,317.8

2050

2051

11,435,409.7

3.00%

2052

11,778,471.9

3.00%

2053

12,131,826.1

3.00%

2054

12,495,780.9

3.00%

2055

12,870,654.3

3.00%

2056

13,256,773.9

3.00%

13,654,477.2

3.00%

40

41

42

43

44

45

46

11,435,409.7

11,778,471.9

12,131,826.1

12,495,780.9

12,870,654.3

13,256,773.9

13,654,477.2

763,661.0

735,112.9

707,632.1

681,178.5

655,713.9

631,201.3

607,604.9

2057

2058

14,064,111.5

3.00%

2059

14,486,034.8

3.00%

2060

14,920,615.9

3.00%

2061

15,368,234.3

3.00%

2062

15,829,281.4

3.00%

2063

16,304,159.8

3.00%

16,793,284.6

3.00%

47

48

49

50

51

52

53

14,064,111.5

14,486,034.8

14,920,615.9

15,368,234.3

15,829,281.4

16,304,159.8

16,793,284.6

584,890.7

563,025.7

541,978.0

521,717.1

502,213.7

483,439.3

465,366.8

2064

2065

17,297,083.2

3.00%

2066

17,815,995.6

3.00%

2067

18,350,475.5

3.00%

2068

18,900,989.8

3.00%

2069

19,468,019.5

3.00%

2070

20,052,060.1

3.00%

20,653,621.9

3.00%

54

55

56

57

58

59

60

17,297,083.2

17,815,995.6

18,350,475.5

18,900,989.8

19,468,019.5

20,052,060.1

20,653,621.9

447,969.9

431,223.4

415,102.9

399,585.0

384,647.3

370,267.9

356,426.2

62