Professional Documents
Culture Documents
TABLE OF CONTENTS
LETTER OF TRANSMITTAL ..............................................................................................1
EXECUTIVE SUMMARY ....................................................................................................2
1. INTRODUCTION ..............................................................................................................4
1.1. Purpose.............................................................................................................................4
1.2. Scope ................................................................................................................................4
1.3. Methodology ....................................................................................................................4
1.4. Limitations .......................................................................................................................5
1.5. Assumption ......................................................................................................................6
2. COMPANY OVERVIEW ..................................................................................................7
2.1. Business description ........................................................................................................7
2.2. History..............................................................................................................................8
3. ECONOMIC FRAMEWORK ............................................................................................9
4. INDUSTRY ANALYSIS .................................................................................................10
4.1. Bread manufacturing industry........................................................................................10
4.2. Cake and Pastry Manufacturing industry.......................................................................11
4.3. Cooking oil and Margarine Manufacturing industry .....................................................12
5. FINANCIAL ANALYSIS ................................................................................................13
5.1. Segment analysis ............................................................................................................13
5.1.1. Fresh Baking division .................................................................................................14
5.1.2. Fresh Dairy division ....................................................................................................14
5.1.3. Home Ingredients ........................................................................................................14
5.1.4. Asia Pacific .................................................................................................................15
5.2. Common size analysis....................................................................................................15
5.2.1. Income statement ........................................................................................................15
5.2.2 Balance sheet ...............................................................................................................17
5.3. Ratio analysis .................................................................................................................18
5.3.1. Activity analysis..........................................................................................................18
5.3.2. Profitability analysis ...................................................................................................20
5.3.3. Liquidity analysis ........................................................................................................21
5.3.4. Long-term debt and solvency analysis .......................................................................22
5.3.5. Five-factor DuPont analysis ........................................................................................23
5.4. Cash flow analysis .........................................................................................................24
6. PROSPECTIVE ANALYSIS ...........................................................................................26
6.1. Sales Forecast.................................................................................................................26
6.2. Cost of sales forecast .....................................................................................................27
6.3. Earning forecast .............................................................................................................27
7. CONCLUSION AND RECOMMENDATION ................................................................28
REFERENCES .....................................................................................................................30
APPENDICES ......................................................................................................................31
Page 1
Dear Judy,
With due respect it is my pleasure to present the report entitled Financial Statement Analysis
on Goodman Fielder Ltd (GFF). While doing this research, I have tried my best to creating
the most objective opinion on GFFs financial health, profitability as well as its potential
earning power in order to suggest the most appropriate investing strategy in the near future. I
hope this report may provide a clear scenario of Goodman Fielder and its industry,
furthermore giving investors an opportunity to buy, sell or hold this stock.
This paper is produced based on GFFs financial data, public announcements, its competitors
and industry accumulated during the period from 2007 to 2012. To prepare this report, I have
admitted to give the best effort to collect needed information.
I shall be available to answer any question for clarification and really appreciate your advice,
so please fell free to contact me.
Sincerely yours,
Page 2
Page 3
Page 4
Horizontal and vertical common size analyses are constructed to observe the trend on
Goodman Fielder activities and evaluate its strategies to face the difficulty of Global
Financial Crisis and giant competitors such as Coles and Woolworths.
Financial ratios of liquidity, profitability, solvency and cash flow are calculated based
on adjusted financial statements then running an analysis with a comparable company
and industry average to locate Goodman Fielders position.
Based on historical data and current situation forecasting Goodman Fielders potential
earning power and future business performance, and then making decision under a
personal investors point of view.
1.4. Limitations
Although best effort is given when writing this report, there are still several obstacles that
keep it away from practice, consisting of:
-
Financial figures were not identical year by year because they were restated in every
following financial statement to reflect the accounting policy changes. There would
be a difficulty in choosing which resource is more accurate.
Financial statement format was inconsistent during the observed period from FY2007
to FY2012, thus leading to a difficulty in comparison and doing common size
analysis.
Depreciation method and inventory cost method are not mentioned clearly. According
to GFFs financial reports, deprecation was charged on a straight line basis or
diminishing value basis. Meanwhile, inventory cost was determined on the basis of
first in first out or average cost whichever is the most appropriate for each individual
business.
There is lack of available financial data of GFFs peer companies and industry
average figures in Australia market because Goodman Fielders operations range
widely from bread, dairy to edible oil manufacturing and it is also a market leader in
Page 5
GFFs annual reports did not provide enough needed information of other income,
other expenses or cash flow, etc. to evaluate exactly its performance.
Business transactions and events occurring after the end of FY2012 were not recorded
then not be evaluated although they could play an important role in forecasting GFFs
future performance. Integro Food business, one of the main segments, which was sold
to GrainCorp for $170 million in August 28th 2012, must have been deducted from
Goodman Fielders previous annual reports. However, Integro business was not
separately presented than it is difficult to keep it away from GFFs financial
statements.
1.5. Assumption
-
Depreciation was calculated based on the straight line basis and inventory cost was
charged on the basis of first in first out consistently during the observed period.
The more recent financial statement, the more accurate information it contains. This
assumption provides a manner to choose efficient data resource.
Any adjustments in income statement will lead to relative changes in retained earning
account each year. In order to keep balance sheet balanced, contributed equity account
is adjusted as if Goodman Fielder has repurchased or issued shares.
Only operating lease is capitalized. Others items such as internally generated assets
for use are classified as expenses because of lack of information and data. Effects of
the capitalization of interest cost are not adjusted because its account is immaterial.
Patties Food Ltd. is chosen to compare with Goodman Fielder with the assumption
that PFLs financial information described in annual report and Morningstar
DatAnalysis Database are accurate and not necessary to be adjusted. Also, PFL is
assumed to be GFFs most appropriate peer company although differences in market
share, market value and total assets. Industry averages derived from IBISWorld
database are assumed to be precise.
Financial ratios are assumed not being affected by differences in accounting policy
changes during the period, thus may not limit comparisons made overtime or between
Page 6
Cash and cash equivalents account, dividend paid are assumed not being influenced
by any adjustments.
Market value of GFFs asset and liabilities seem not to be well divergent from their
book value.
2. COMPANY OVERVIEW
2.1. Business description
Graph 1
over
manufactures
7,500
its
people,
products
in
outlets
supermarkets,
Graph 2
including
convenience
Exchange
on
th
North
Ryde-based
food
Page 7
1909 Geo Fielder & Co. Ltd. incorporated in Australia, based in Tamworth NSW.
1986 Goodman Fielder Ltd established with merger of Goodman Group Ltd (New
Zealand) and Allied Mills Ltd.
1992 Name changed to Goodman Fielder Ltd following divestment of Wattie Foods
Ltd to H J Heinz.
1996 New Zealand milling and baking operations consolidated into Milling and
Baking Australasia.
Bluebird Foods (New Zealand) and Uncle Tobys joined to form Cereals and Snacks
division.
Goodman Fielder International formed.
2003 Goodman Fielder Limited is acquired by Burns, Philp & Company Limited.
2005 Initial Public Offering of shares in Goodman Fielder Limited on ASX and NZX.
2010 Opening of new head office and research facility in North Ryde, NSW.
Opening of new corporate office and research facility in Auckland, New Zealand.
Page 8
Graph 4
momentum
from
consumption
Source: tradingeconomics.com
Page 9
Source: IBISWorld
Over the past decade, demand for bread and bakery products has been stimulated by the
emergence of health and nutrition-conscious consumers. According to IBISWorld report,
industry sales are estimated to rise by 2.5% per annum over the past five years and forecast to
increase 2.1% to reach $2.8billion in 2011-2012.
The bread market is now witnessing a broad range of baking products and a high level of
competition which resulted from the vast majority of small and medium-sized bakers. A high
density of competitors and identical products has caused industry profitability to decline. In
addition, greatly fluctuation in commodity prices such as wheat and sugar, combined with
increasing labor cost over the past five year has dampened baking industry growth and
reduced profit margin. Furthermore, the increased availability of substitute foods and greater
buying power by the industrys key client base have contributed to the saturation of the
domestic bread market. Thus, industry revenue growth rate is expected to be 1.8% per annum
in the next five year, to total $3.1billion in 2016-2017.
Page 10
Source: IBISWorld
The Australian Cake and Pastry Manufacturing industrys revenue is estimated to rise at an
annualized rate of 1.4% during the period from 2007 to 2012, to reach the total of
$1.64billion. Over the same period, real GDP grew by 2.8% and disposable incomes
increased by 3.2%. This indicates a mature and stagnant industry. IBISWorld also predicts
that in 2012, industry revenue would decrease by 0.6%.
Although this industry has a total of 256 businesses running their operations, 65% of industry
sales are generated by the top four manufacturers. This medium concentration is primarily a
result of M&A activity, product innovation, aggressive marketing and strong customer
loyalty. Consequently, industrys major players can pass on unexpected cost increases down
the supply chain to final consumer.
Similar to the Bread manufacturing industry, this industrys key inputs consist of wheat and
sugar, and variations in their prices will make a significant impact on the performance of the
industry. Cake and Pastry industry has also faced a rising level of competition from bread and
cake retailing, including hot-bread shops, and on-site baking shops. Additionally, increased
public awareness about health has led to declining sales of high calorie content such as cakes
and sweet pastry products.
Student ID: 17259191
Page 11
Source: IBISWorld
Goodman Fielder had used to be the leading player in this industry before it sold Integro
Foods, New Zealands largest refiner and packager of edible fats and oils to GrainCorp.
Overall, industry revenue is estimated to increase by 2.0% per annum over five years to reach
$2.38billion in 2012. During the current year, revenue is anticipated to grow by 2.3%.
There are a broad range of fats and oils manufactured by this industry such as sunflower seed
oil, olive oil, canola oil and lard. Rising public awareness of health and nutrition has a
dramatic impact on demand for this industrys products. The past five years have seen
demand for animal fats decline while oils with lower saturated-fat content have grown in
sales. During the same period, the margarine segment, another main product segment in the
industry, has faced competition from other sorts of fats and oils, particularly butter which is
not included in this industry. Over the next five years, consumption of fats and oils is
Page 12
Fresh Baking
600.0
Fresh Dairy
Home Ingredients
400.0
Asia Pacific
200.0
0.0
2007
2008
2009
2010
2011
2012
2008
Fresh Baking
2009
Fresh Dairy
2010
Home Ingredients
2011
2012
Asia Pacific
Because of its large scale of business, Goodman Fielder has experienced a lower revenue
growth rate than industry averages during the past period. An annualized rate of 0.84% for
the five years through to FY2012 was much smaller than 2.5% in Bread Manufacturing, 2%
in Cooking oil and Margarine Manufacturing and 1.4% in Cake and Pastry Manufacturing.
Except for Integro Foods which was sold after the end of FY2012, Goodman Fielders
operations are divided into four divisions: Fresh Baking, Fresh Dairy, Home Ingredients and
Food supplier in Asia Pacific. As can be seen from Graph 9, Fresh baking was the most
Student ID: 17259191
Page 13
Page 14
2008
2009
2010
2011
2012
Gross margin
During the observed period, Goodman Fielder has experienced a significant increase in cost
of sales, causing its gross margin falling down from 39.43% to 32.88% in FY2012. Flour and
sugar are the key input to bread manufacturing, and any fluctuations in their prices may affect
Student ID: 17259191
Page 15
Source: indexmundi.com
Graph 12: Cost structure of Goodman Fielder and its industries in FY2012
100.00%
80.00%
profit
60.00%
other expense
40.00%
Depreciation expense
20.00%
SGA expense
0.00%
Cost of sales
Goodman
Fielder
Bread
industry
Cake and
Pastry
industry
Page 16
2008
2009
2010
Total equity
2011
2012
The past few years balance sheets present a decrease in total assets as Goodman Fielder has
started its reducing plan to face the challenging market conditions and high level of
competition. Except for FY2009, GFFs total assets have sunk during the reporting period
Page 17
2009
2010
2011
2012
Average
8.00
8.31
9.78
8.95
8.67
8.74
45.61
43.93
37.33
40.79
42.12
41.95
8.51
9.98
11.85
11.67
11.71
10.75
42.90
36.57
30.79
31.27
31.17
34.54
5.18
5.42
5.58
5.27
6.12
5.51
70.51
67.33
65.41
69.22
59.64
66.42
12.60
16.93
24.76
34.01
25.72
22.80
0.69
0.76
0.82
0.83
0.87
0.79
Page 18
2009
2010
2011
2012
Average
9.09
9.13
6.63
6.98
6.19
7.60
40.14
39.99
55.09
52.27
58.98
49.29
5.37
4.98
6.24
5.77
4.92
5.46
67.95
73.35
58.51
63.23
74.13
67.43
11.92
10.31
9.22
8.28
8.62
9.67
30.61
35.39
39.57
44.10
42.35
38.41
5.00
4.78
5.22
5.45
4.09
4.91
0.80
0.86
0.92
0.95
0.95
0.89
In general, there has been an upward trend in inventory turnover ratio, resulting in a decrease
in number of days of inventory on hand from 45.61 days in FY2008 to 42.12 days in FY2012.
As Goodman Fielders is operating in Food industry, this trend may suggest an increase in
number of orders during the period and a reduction in inventory caring cost. Meanwhile, it
took Patties Foods Limited- the biggest player in Cake and Pastry Manufacturing industryover 49 days to spend up its inventory and 63.1 days for average company in the industry.
Average days of sales in receivable were 34.54 days while GFFs policy shows that only
receivables past due over 90 days were classified as doubtful debts. On the other hand, its
payable turnover ratio was always lower than receivable turnover ratio during the period, and
it took Goodman Fielder 66.42 days in average to repay its short term liabilities. This
suggests the negotiating strength of Goodman Fielder, one of the biggest food companies in
ANZ to deal with its key suppliers. Obviously, GFF has competitive advantage compared to
PHL, which is about 9 times smaller in total assets and had to spend up to 67.43 days to
collect its receivables and only 38.41 days to meet its short term obligations.
GFFs working capital turnover ratio has improved every year from 12.6 times to 25.72
times. However, this trend was not contributed by revenue growth, but a decrease in its
working capital during the observed period except for FY2012. Similarly, a decrease in total
assets caused by impairment test on goodwill assets has led its asset turnover ratio to rise
while sales have not fluctuated greatly during the same period.
Student ID: 17259191
Page 19
2009
2010
2011
2012
Industry
1.98%
18.69%
38.68%
8.68%
7.51%
38.79%
36.64%
6.49%
4.85%
5.44%
4.66%
1.04%
5.88%
6.26%
5.85%
6.50%
6.31%
3.31%
7.96%
Gross Margin
8.90%
8.12%
2009
2010
2011
2012
13.75%
10.62%
14.39%
14.30%
14.32%
9.21%
6.61%
8.78%
8.51%
8.29%
8.76%
7.43%
9.54%
9.53%
9.22%
Both gross margin and return on sales of the Sydney-based food provider had been quite
stable from FY2008 to FY2011 although it has suffered from the 2008 Global recession and
the less consuming trend. However, in FY2012 as trading conditions in ANZ challenged and
commodity prices increased sharply, Goodman Fielder experienced the dramatic drop on its
margin and ROS to 32.88% and 1.04% respectively. As mentioned above in Common size
and Segment Analysis, an increase in wheat and sugar price as well as higher labor and
logistic costs led its cost of sales to jump up.
Additionally, the ordinary shares issues in October and November 2011 also caused the ROE
ratio to drop to 1.98% in FY2012, much lower than 14.32% of Patties Foods, 18.69% of
industry average and 12.31% of sector average. Processing the restructuring plan to cut back
on number of employees, divest in many non-core brands and reduce overhaul cost, GFFs
board of directors expected to improve its profitability as commodity prices such as wheat
and sugar has been predicted to fall down in the following years due to oversupplied.
Page 20
2009
2010
2011
2012
Industry
Current Ratio
1.44
1.28
1.24
1.11
1.31
1.38
Quick Ratio
0.86
0.82
0.78
0.67
0.84
0.97
Cash Ratio
0.13
0.16
0.18
0.17
0.35
0.20
0.71
0.82
0.99
0.62
0.50
0.73
2009
2010
2011
2012
Current Ratio
1.94
2.6
2.32
2.13
2.55
Quick Ratio
1.27
1.73
1.22
1.23
1.49
Cash Ratio
1.21
1.63
1.18
1.17
1.36
0.68
0.58
0.82
0.66
0.26
Although compared to current ratio of PFL and industry average, that of Goodman Fielder
was well slower than, the Group still guaranteed the ability to meet its short term obligations
by liquidating its current assets. Both of its quick ratio and cash ratio were lower than 1
which might indicate lack of ability to repay current debt by its cash and receivables amount.
However, its inventory which consists of bread, dairy and ingredients is quite liquid and easy
to transfer to cash without affecting its value. Furthermore, it took only about 34.54 days for
Goodman Fielder to collect its receivables due to its competitive advantage and large
business scale in any industries Goodman Fielder placed in.
However, operational cash flow ratio has been lower than 1 during the observed period. This
indicates cash generated from operating activities was not enough to cover its short term
obligations. Similar, its peer company PFL and an average company in its industry still could
not meet their current obligations by its operational cash. In FY2012, operational cash flow
ratio was 0.26 for PFL and 0.73 for industry average.
Page 21
2009
2010
2011
2012
Average
49.33%
49.53%
47.69%
54.63%
49.61%
50.16%
39.11%
38.51%
36.70%
39.92%
35.58%
37.96%
97.36%
98.13%
91.18% 120.43%
Asset Leverage
98.46% 101.12%
2.10
1.58
2.19
1.46
0.36
1.54
3.28
3.39
4.28
2.75
2.34
3.21
2009
2010
2011
2012
Average
41.48%
39.34%
34.96%
32.53%
34.54%
36.57%
35.89%
38.03%
33.73%
31.38%
33.50%
34.51%
64.70%
63.49%
52.76%
47.40%
51.94%
56.06%
Asset Leverage
5.64
4.06
5.96
6.16
6.47
5.66
4.34
2.55
4.85
4.68
1.92
3.67
Over the past five years, approximately 50% of Goodman Fielders long-term capital has
been funded by interest bearing debt, particularly long-term debt has accounted for 37.96% of
its total capitalization. It also can be seen from the above table than there has been a
movement from long-term to short-term source of capital. During the reporting period, there
was two times its short-term obligations increased dramatically by reclassified the companys
current position of long-term debt. However, adjustment was made to put these excess
amounts back to long-term debt because Goodman Fielder was expected to refinance these
facilities by issuing bond and starting new syndicated debt due to its reputation and industrial
position.
GFFs asset leverage has also presented a slight upward trend to reach 217.48% in FY2012.
A decrease in total equity due to impairment loss, while Goodman Fielder has tried to
maintain a high level of both sort-term and long-term debts, has caused its asset leverage
Student ID: 17259191
Page 22
2009
2010
2011
2012
Tax burden
82.97%
75.46%
69.33%
75.32%
73.60%
Interest burden
68.25%
62.17%
69.20%
61.94%
26.89%
EBIT margin
11.47%
10.34%
11.34%
9.98%
5.27%
Assets turnover
0.69
0.76
0.82
0.83
0.87
Leverage
1.94
2.04
2.00
2.11
2.17
8.68%
7.51%
8.90%
8.12%
1.98%
ROE
Tax burden: because the tax burden reflects the relation of after-tax profits to pretax profits,
the decrease from 82.97% in FY2008 to 73.60% in FY2012 indicates tax increase. Although
the corporate income tax rate has remained at 30% during the period, the increase in effective
tax rate from 17.03% to 26.40% was caused by the variation of deferred tax accounts.
Interest burden: smaller than 100% means that interest expense and financial charge
excessed non-operating income in all five years. This ratio illustrates a fluctuation around 6070% from FY2008 to FY2011 before dropping dramatically to 26.89% in FY2012. Goodman
Fielders debt structure has not changed greatly, leading to interest expense stable during the
Page 23
2007
2008
2009
2010
2011
2012
(300.00)
(450.00)
Net cash from operating activities
The graph above illustrates the main source of GFF cash was from operating activities, which
had increased to $407.60 million by FY2010, followed by a downward trend in two years
thereafter. While cash received from customers has dropped from FY2010 onward due to a
decrease in revenue, payment to suppliers and employees was affected by an increase in input
costs. Neither trade receivables nor payables have fluctuated greatly, indicating GFFs
Student ID: 17259191
Page 24
2008
2009
2010
2011
2012
Net cash generated from financing activities was always negative over the period, especially
in FY2012 when GFF spent up to $317.3million which accounted for 78% of cash generated
from its operations. It has been noticed that dividends were paid every single year although
GFF reported losses in FY2011 and FY2012. Some items such as payment of deferred
consideration and dividends paid to outside equity interests are not mentioned clearly in
either Cash Flow statements or Note to financial statements.
Page 25
Fresh baking division, which is the largest segment of Goodman Fielder and the
biggest player in the Bread Manufacturing industry, is expected to grow by 1.8% per
annum- the industry growth rate.
Fresh dairy division has suffered from challenging trading conditions in New Zealand
market, is predicted optimistically to grow at 0%.
Asia Pacific is the target market of Goodman Fielder. The historical average grow rate
is at 15.28% per annum. The Group is expected to process its expansion plan in this
region and the revenue grow rate is predicted to be 12%.
FY2012
FY2013E
FY2014E
FY2015E
FY2016E
FY2017E
979
996.62
1014.57
1032.82
1051.41
1070.34
Fresh Dairy
411.1
411.1
411.1
411.1
411.1
411.1
Home Ingredients
540.6
552.49
564.65
577.07
589.77
602.74
Asia Pacific
333.5
373.52
418.34
468.54
524.77
587.74
2264.2
2333.74
2408.67
2489.53
2577.05
2671.92
Fresh Baking
Total Revenue
Page 26
2008
2009
Sales of good
2010
2011
2012
Cost of sales
2013E
2014E
2015E
2016E
2017E
Page 27
2013E
2333.74
-1453.45
880.28
-510.67
-97.44
-8.29
263.89
3.79
-88.73
178.95
-45.52
133.44
2014E
2408.65
-1500.11
908.54
-527.06
-100.57
-8.55
272.36
3.92
-91.58
184.70
-46.98
137.72
2015E
2489.54
-1550.48
939.05
-544.76
-103.95
-8.84
281.51
4.05
-94.65
190.90
-48.56
142.34
2016E
2577.05
-1604.99
972.06
-563.91
-107.60
-9.15
291.40
4.19
-97.98
197.61
-50.26
147.35
2017E
2671.92
-1664.07
1007.85
-584.67
-111.56
-9.49
302.13
4.34
-101.59
204.89
-52.12
152.77
Page 28
Page 29
Page 30
Item
Trade receivable
Other receivable
Depreciation and
Amortization
Foreign exchange gains
Foreign exchange losses
Operating lease
Account
Trade & other
receivable
Trade& other
receivable
Selling-GeneralAdministration
expenses
Finance income
Finance costs
PPE, deferred tax
asset, current
borrowing, noncurrent borrowing
and income
statement
Amount
($mil)
Nature
274.2
33.6
55.2
52.1
20.7
132.7
Trade receivable
Other receivable
Depreciation and
Amortization
Borrowing- non current
liabilities
260.4
30
48.9
170.7
FY 2007
Trade receivable should be presented
separately in the balance sheet
Other receivable should be presented
separately in the balance sheet
Depreciation and Amortization should
be presented separately in the balance
sheet
Non- recurring item
Non- recurring item
Adjustment
Present separately on the balance
sheet
Present separately on the balance
sheet
Present separately on the balance
sheet
Subtracting from finance income
Subtracting from finance costs
Reclassified to PPE (130.9),
deferred tax asset (1.8), current
borrowing(28.1), non-current
borrowing (108.7), depreciation
expense (-26.8), SGA expense
(23.6), income tax expense (1.8),
interest expense (-2.8)
Operating lease
Other income
Other income
162.9
current liabilities
Other expenses
Trade & other
receivable
Trade& other
receivable
Selling-GeneralAdministration
expenses
170
227.4
48.2
55.5
Other income
Other income
Other income
Assets classified as
held for sale
Liabilities classified as
held for sale
Liabilities
classified as held
for sale
Sale of goods
Sale of goods
Cost of sales
Cost of sales
Selling- GeneralAdministration
expenses
Selling- GeneralAdministration
expenses
Operating lease
6.9
164.4
Trade receivable
Other receivable
Depreciation and
Amortization
Other income
Trade & other
receivable
Trade& other
receivable
Selling-GeneralAdministration
expenses
0.7
214.7
32.7
61.3
Borrowing- current
liabilities
Other income
Operating lease
Other income
Trade & other
receivable
Trade& other
receivable
Selling-GeneralAdministration
expenses
Insurance recoveries
relating to Christchurch
earthquakes
Other income
Operating lease
145.5
Liabilities classified as
held for sale
Insurance recoveries
Impairment charges
Operating lease
Other expenses
Trade & other
receivable
Trade& other
receivable
Selling-GeneralAdministration
expenses
Assets classified as
held for sale
Liabilities
classified as held
for sale
Other income
Other expenses
PPE, deferred tax
asset, current
borrowing, noncurrent borrowing
and income
statement
300
207.9
19.7
177.1
7.6
126.3
2007
2008
2009
2010
2011
2012
2426.7
(1469.8)
2317.5
(1418.6)
2471.3
(1565.8)
2660.1
(1672.1)
2556.2
(1620.9)
2513.7
(1687.2)
956.9
(494.7)
898.9
(514.5)
905.5
(550.2)
988.0
(579.3)
935.3
(563.1)
826.5
(569.0)
(82.0)
(87.5)
(101.5)
(108.7)
(118.9)
(127.0)
1.8
0.8
1.8
1.6
1.8
1.9
Other expenses
(27.7)
(31.9)
0.0
0.0
(25.9)
(31.1)
1.8
1.6
1.8
1.9
EBIT
Interest income
354.3
3.3
265.8
1.8
255.6
3.9
301.6
2.4
255.1
11.4
132.4
1.7
(79.5)
(86.2)
(100.6)
(95.3)
(108.5)
(98.5)
EBT
Income tax expense
278.1
(70.6)
181.4
(30.9)
158.9
(39.0)
208.7
(64.0)
158.0
(39.0)
35.6
(9.4)
Net income
207.5
150.5
119.9
144.7
119.0
26.2
Sale of goods
Cost of sales
Gross operating income
SGA expenses
Depreciation and Amortization
Other income
2007
100.%
-60.57%
2008
100.%
-61.21%
2009
100.%
-63.36%
2010
100.%
-62.86%
2011
100.%
-63.41%
2012
100.%
-67.12%
Average
100.%
-63.09%
SGA expenses
39.43%
-20.39%
38.79%
-22.20%
36.64%
-22.26%
37.14%
-21.78%
36.59%
-22.03%
32.88%
-22.64%
36.91%
-21.88%
Depreciation
-3.38%
-3.78%
-4.11%
-4.09%
-4.65%
-5.05%
-4.18%
Other income
0.07%
0.03%
0.07%
0.06%
0.07%
0.08%
0.06%
Other expenses
-1.14%
-1.38%
0.00%
0.00%
0.00%
0.00%
-0.42%
-1.07%
-1.34%
0.07%
0.06%
0.07%
0.08%
-0.36%
Interest income
14.60%
0.14%
11.47%
0.08%
10.34%
0.16%
11.34%
0.09%
9.98%
0.45%
5.27%
0.07%
10.50%
0.16%
Interest expense
-3.28%
-3.72%
-4.07%
-3.58%
-4.24%
-3.92%
-3.80%
11.46%
-2.91%
7.83%
-1.33%
6.43%
-1.58%
7.85%
-2.41%
6.18%
-1.53%
1.42%
-0.37%
6.86%
-1.69%
8.55%
6.49%
4.85%
5.44%
4.66%
1.04%
5.17%
Cost of sales
Gross operating income
EBT
Income tax expense
Net income
2007
2008
2009
2010
2011
2012
85.8
39.3
65.4
73.3
79.9
161.7
280.1
264.7
230.5
218.3
219.7
209.6
(5.9)
(4.3)
(3.1)
(3.6)
(4.3)
(1.7)
33.6
30.0
48.2
32.7
30.7
19.7
153.5
201.0
175.9
166.1
196.2
193.2
14.7
13.0
0.7
0.1
0.4
1.7
ASSETS
Cash and cash equivalents
Trade receivable
Allowance for doubtful debt
Other receivable
Inventories
Derivative financial instruments
Current tax receivable
22.1
8.2
16.0
8.9
13.7
9.0
10.0
5.0
6.5
3.8
9.0
570.8
575.8
530.8
509.4
535.3
606.9
5.1
5.3
3.6
2.4
1.8
2.8
4.1
Receivables
Investments in jointly controlled entities
Derivative nancial instruments
20.3
10.6
1.6
623.4
686.1
719.2
761.5
746.2
711.2
70.7
88.4
107.2
62.4
67.5
64.0
2199.9
1885.1
1893.1
1906.1
1571.2
1430.5
7.2
2.5
1.4
2.2
1.9
1.1
2921.5
2672.7
2727.6
2739.3
2393.2
2213.3
Total assets
3492.3
3248.5
3258.4
3248.7
2928.5
2820.2
285.8
283.2
284.2
297.9
313.1
275.2
29.5
31.5
29.4
29.8
79.9
79.9
LIABILITIES
Trade and other payables
Borrowings
Derivative financial instruments
4.9
6.0
36.4
19.0
23.2
23.7
8.9
11.3
5.4
13.1
17.6
15.0
49.6
68.1
59.2
50.9
49.9
69.2
378.7
400.1
414.6
410.7
483.7
463.0
0.6
1.0
1204.5
1224.7
1215.0
1143.8
1046.5
898.2
0.7
7.6
13.9
82.1
62.7
22.2
25.4
11.0
16.5
17.9
20.5
Provisions
Total current liabilities
Payables
Borrowings
Derivative financial instruments
Deferred tax liabilities
Provisions
9.5
7.6
7.7
13.9
15.6
15.2
1236.8
1259.4
1241.3
1188.1
1162.1
996.6
Total liabilities
1615.5
1659.5
1655.9
1598.8
1645.8
1459.6
Net assets
1876.8
1589.0
1602.5
1649.9
1282.7
1360.6
1770.5
1639.7
1720.2
1771.4
1486.2
1567.7
Reserves
(55.6)
(186.6)
(214.0)
(208.2)
(259.5)
(252.9)
154.7
127.8
86.6
77.5
48.1
39.8
1869.6
1580.9
1592.8
1640.7
1274.8
1354.6
7.2
8.1
9.7
9.2
7.9
6.0
1876.8
1589.0
1602.5
1649.9
1282.7
1360.6
EQUITY
Contributed equity
2007
2008
2009
2010
2011
2012
2.46%
1.21%
2.01%
2.26%
2.73%
5.73%
Trade receivable
8.02%
8.15%
7.07%
6.72%
7.50%
7.43%
-0.17%
-0.13%
-0.10%
-0.11%
-0.15%
-0.06%
Other receivable
0.96%
0.92%
1.48%
1.01%
1.05%
0.70%
Inventories
4.40%
6.19%
5.40%
5.11%
6.70%
6.85%
0.42%
0.40%
0.02%
0.00%
0.01%
0.06%
0.00%
0.68%
0.25%
0.49%
0.30%
0.49%
0.26%
0.31%
0.15%
0.20%
0.13%
0.32%
16.34%
0.00%
17.73%
0.00%
16.29%
0.16%
15.68%
0.16%
18.28%
0.12%
21.52%
0.09%
0.00%
0.00%
0.00%
0.06%
0.10%
0.15%
0.58%
0.33%
0.05%
0.00%
0.00%
0.00%
17.85%
21.12%
22.07%
23.44%
25.48%
25.22%
Receivables
2.02%
2.72%
3.29%
1.92%
2.30%
2.27%
62.99%
58.03%
58.10%
58.67%
53.65%
50.72%
0.21%
0.08%
0.04%
0.07%
0.06%
0.04%
83.66%
82.27%
83.71%
84.32%
81.72%
78.48%
100%
100%
100%
100%
100%
100%
8.18%
8.72%
8.72%
9.17%
10.69%
9.76%
Borrowings
0.84%
0.97%
0.90%
0.92%
2.73%
2.83%
0.14%
0.18%
1.12%
0.58%
0.79%
0.84%
0.25%
0.35%
0.17%
0.40%
0.60%
0.53%
Provisions
1.42%
2.10%
1.82%
1.57%
1.70%
2.45%
Payables
10.84%
0.02%
12.32%
0.03%
12.72%
0.00%
12.64%
0.00%
16.52%
0.00%
16.42%
0.00%
Borrowings
34.49%
37.70%
37.29%
35.21%
35.74%
31.85%
0.00%
0.02%
0.23%
0.43%
2.80%
2.22%
0.64%
0.78%
0.34%
0.51%
0.61%
0.73%
Intangible assets
Total assets
LIABILITIES
Provisions
0.27%
0.23%
0.24%
0.43%
0.53%
0.54%
35.42%
38.77%
38.10%
36.57%
39.68%
35.34%
Total liabilities
46.26%
51.09%
50.82%
49.21%
56.20%
51.76%
Net assets
53.74%
48.91%
49.18%
50.79%
43.80%
48.24%
Contributed equity
50.70%
50.48%
52.79%
54.53%
50.75%
55.59%
Reserves
-1.59%
-5.74%
-6.57%
-6.41%
-8.86%
-8.97%
4.43%
3.93%
2.66%
2.39%
1.64%
1.41%
53.53%
48.67%
48.88%
50.50%
43.53%
48.03%
0.21%
0.25%
0.30%
0.28%
0.27%
0.21%
53.74%
48.91%
49.18%
50.79%
43.80%
48.24%
EQUITY
2009
2010
2011
2012
Valuation Ratios
EPS
Dividend per Share
P/E Ratio
P/B (price to book) Ratio
Dividend Payout Ratio
Dividend yield
0.11
0.1350
15.50
1.42
1.19
0.08
0.09
0.1050
18.42
1.28
1.19
0.06
0.11
0.1075
15.64
1.28
1.02
0.07
0.09
0.0725
15.66
1.25
0.84
0.05
0.01
51.50
0.86
-
Profitability Ratios
Return on Equity (ROE)
Gross Margin
Return on Sales (ROS)
Return on Assets (ROA)
8.83%
38.79%
6.49%
6.26%
7.14%
36.64%
4.85%
5.85%
8.29%
37.14%
5.44%
6.50%
7.31%
36.59%
4.66%
6.31%
1.72%
32.88%
1.04%
3.31%
Growth Rates
EPS Growth Rate
Dividend Growth Rate
Sales Growth Rate
EBIT Growth Rate
Net Income Growth Rate
-27.47%
17.37%
-4.50%
-34.77%
-27.47%
-22.10%
-22.22%
6.64%
-12.40%
-20.33%
19.20%
2.38%
7.64%
31.34%
20.68%
-18.27%
-32.56%
-3.91%
-24.29%
-17.76%
-84.46%
Liquidity Ratios
Current Ratio
Quick Ratio
Cash Ratio
Operational Cash Flow Ratio
Defensive Interval
1.44
0.86
0.13
0.71
67.77
1.28
0.82
0.16
0.82
61.91
1.24
0.78
0.18
0.99
54.65
1.11
0.67
0.17
0.62
57.69
1.31
0.84
0.35
0.50
67.03
8.00
8.51
5.18
12.60
0.69
0.83
8.31
9.98
5.42
16.93
0.76
0.92
9.78
11.85
5.58
24.76
0.82
0.97
8.95
11.67
5.27
34.01
0.83
1.00
8.67
11.71
6.12
25.72
0.87
1.09
49.33%
39.11%
97.36%
204.44%
49.53%
38.51%
98.13%
203.33%
47.69%
36.70%
91.18%
196.90%
54.63%
39.92%
120.43%
228.31%
49.61%
35.58%
98.46%
207.28%
2.10
3.28
1.58
3.39
2.19
4.28
1.46
2.75
0.36
2.34
Leverage Ratios
Total Debt to Total Capitalization
Long-Term Debt to Total Capitalization
Total Debt to Equity
Asset Leverage
Coverage Ratios
EBIT Times Interest Cover
CFO Times Interest Cover
-1.66%
-77.47%
-77.98%
2009
2010
2011
2012
Valuation Ratios
EPS
P/E Ratio
P/B (price to book) Ratio
0.10
10.40
1.33
0.08
8.40
0.85
0.11
9.56
1.25
0.13
13.05
1.85
0.14
11.59
1.64
Profitability Ratios
Return on Equity (ROE)
Return on Sales (ROS)
Return on Assets (ROA)
13.75%
9.21%
8.76%
10.62%
6.61%
7.43%
14.39%
8.78%
9.54%
14.30%
8.51%
9.53%
14.32%
8.29%
9.22%
Growth Rates
EPS Growth Rate
Sales Growth Rate
EBIT Growth Rate
Net Income Growth Rate
-0.99%
30.04%
4.73%
8.65%
-19.00%
9.07%
-11.04%
-18.66%
39.51%
10.12%
29.26%
39.70%
15.93%
10.12%
10.13%
16.83%
5.34%
8.67%
5.72%
5.99%
Liquidity Ratios
Current Ratio
Quick Ratio
Cash Ratio
Operational Cash Flow Ratio
1.94
1.27
1.21
0.68
2.6
1.73
1.63
0.58
2.32
1.22
1.18
0.82
2.13
1.23
1.17
0.66
2.55
1.49
1.36
0.26
9.09
5.37
11.92
5.00
0.80
1.15
9.13
4.98
10.31
4.78
0.86
1.19
6.63
6.24
9.22
5.22
0.92
1.31
6.98
5.77
8.28
5.45
0.95
1.41
6.19
4.92
8.62
4.09
0.95
1.51
41.48%
39.34%
34.96%
32.53%
34.54%
35.89%
38.03%
33.73%
31.38%
33.50%
64.70%
187.59%
63.49%
186.98%
52.76%
178.82%
47.40%
177.86%
51.94%
182.51%
5.64
4.34
4.06
2.55
5.96
4.85
6.16
4.68
6.47
1.92
2007
2008
2597.90
(2216.90)
(66.70)
(72.70)
241.60
2846.70
(2424.20)
(86.30)
(53.40)
282.80
(125.50)
(50.90)
(78.50)
(95.20)
(21.50)
28.50
2009
2010
2011
2012
2632.10
(2161.80)
(93.60)
(36.00)
340.70
2851.10
(2322.80)
(102.20)
(18.50)
407.60
2734.20
(2294.70)
(108.00)
(32.90)
298.60
2744.60
(2382.60)
(97.00)
(34.30)
230.70
(93.20)
(101.10)
(84.80)
1.90
7.40
0.00
3.90
14.40
1.90
2.40
(103.60)
(0.30)
21.70
(164.80)
(81.90)
(82.40)
1.50
8.60
(72.10)
1.90
10.00
(54.90)
(72.40)
(43.30)
(96.80)
(104.10)
253.20
(147.30)
946.40
(856.30)
(152.40)
(178.90)
(47.30)
(93.80)
(22.20)
104.60
85.80
(3.30)
(164.50)
(46.50)
85.80
39.30
766.90
(817.00)
(1.50)
(129.40)
(5.10)
(3.30)
(232.70)
26.10
39.30
65.40
1043.40
(1142.00)
(0.90)
(113.30)
(4.40)
(3.30)
(317.30)
7.90
65.40
73.30
1611.10
(1571.30)
(1.10)
(148.40)
(6.10)
(219.90)
6.60
73.30
79.90
(104.30)
251.50
378.60
(573.40)
(1.10)
(34.50)
(10.80)
0.70
2.50
3.20
(170.00)
18.00
(94.00)
81.80
79.90
161.70
Page 31