Fall

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ENNAKL Tunisia Financial Analysis

ZAYNEB TURKI
ID : 2016120324

D o n g g u k u n i v e r s i t y P r e p a r e d B y Z a y n e b T u r k i
F i n a n c i a l M a n a g e m e n t F A L L 2 0 1 6

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 I. Executive summary:

This Report was commissioned to investigate the financial condition of ENNAKL company as of
on the year end 2015.

Furthermore this report provides an analysis and evaluation of the current and prospective profitability,
liquidity, efficiency, Leverage and coverage ratio of ENNAKL automobiles.

Methods of analysis includes but are not limited to: Common-size analysis & Horizontal analysis,
Ratio analysis such as Liquidity ratios, coverage ratios, other calculations forecasts future sales and are
based on Regression analysis. The Report includes comparative analysis with 2014 financial statement and
industry average.

The calculation can be found in appendices excel sheets. The Results shows that in one hand most of the
Ratios are below the industry average but in the other hand are showing recovery sign in contrast with the
2014 ratio. Besides ENNAKL shows positive net cash flow and will be able to pay its suppliers and creditors in
the coming period.

We recommend that: ENNAKL improves the collection period for receivables and that management put a
greater effort on controlling operating expenses.

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II. Description of the firm

Created in 1965 by a consortium of public enterprises, ENNAKL Company specialized in the import
and distribution of VOLKSWAGEN vehicles in Tunisia. The firm becomes private in 2006 by the
entrance of Princess Holding Group in its capital. ENNAKL is now leader of the distribution sector
of light vehicles with 9617 vehicles marketed in 2009 under the brand, VOLKSWAGEN Trucks,
AUDI and PORSCHE and has a network of 17 branches spread over the Tunisian territory.

ENNAKLs headquarter is in Z. I. II CHARGUIA 1080 TUNIS, has a capital of 30 000 000 dinars
and it is managed by IBRAHIM DEBACHE.

Created in 1965 by a consortium of public enterprises, ENNAKL Company specialized in the import
and distribution of VOLKSWAGEN vehicles in Tunisia. The firm becomes private in 2006 by the
entrance of Princess Holding Group in its capital. ENNAKL is now leader of the distribution sector
of light vehicles with 9617 vehicles marketed in 2009 under the brand VOLKSWAGEN,
VOLKSWAGEN Trucks, AUDI and PORSCHE and has a network of 17 branches spread over the
Tunisian territory.

ENNAKLs headquarter is in Z. I. II CHARGUIA 1080 TUNIS, has a capital of 30 000 000 dinars
and it is managed by IBRAHIM DEBACHE.

1. Management of the company after the revolution

ENNAKL crossed the post-revolutionary period without a lot of damage. This transitory period was
marked by a tense corporate social atmosphere, but ENNAKL tried to manage better the claims and
set up an equity policy allowing employees to better meet themselves into the company and to
anchor a new culture which appeased the social climate and started a new dynamic growth.

Also after the departure of the old CEO, ENNAKL hired a receiver which used companys assets in a
way that most effectively paid back creditors.

2. Government restrictions

ENNAKL suffers from the quota system which makes it difficult to have visibility of the future.
Especially with the new quota allocation rule which is now based on the value and not on the
volume. ENNAKL wants a liberalization of the market as was released on truck segment which dont
show any massive importation thanks to the law of supply and demand which has played "the role of
regulator.

3. STRATEGY
ENNAKL signed a contract which allows it to market the Skoda brand in Tunisia and expects to
enter in the used car market with the introduction of recovery policy for their customer.

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Also ENNAKL wants to enriching the supply of its product and services, improving the quality of its
services and strengthening its network of approved agencies and workshops.

III. Income Statement Analysis (ENNAKL Company)

Income statement
City
Ennakl Increase/decrease Car s Artes
Year 2015 2014 Amount Percent 2015 2015

Net sales 300339 264495 35 844 13,55% 99 283 228734

Other revenues 1 093 741 352 47,50% 283 1047

Total Revenues 301432 265236 36 196 13,65% 99 566 229781

Cost of goods sold 262553 240111 22 442 9,35% 83 848 189257

Operating Income 38 879 25 125 13 754 54,74% 15 718 40 524

Selling General and
Administrative Costs 27 586 22 805 4 781 20,96% 2 261 8391
Earning Before
Interest Tax and
Depreciation 11 293 2 320 8 973 386,77% 13 457 32 133

Depreciation 3 672 4 032 -360 -8,93% 307 805

Amortization 0 0 0 - 0 89
Total Depreciation
Depletion and
Amortization 3 672 4 032 -360 -8,93% 307 894
Operating Income
After Dept. and
Amort. 7 621 -1 712 9 333 -545,15% 13 150 31 239
Unusual/Exceptional
Items 6 282 12434 -6 152 -49,48% 150 713
Earnings Before
Interest and Tax 13 903 10722 3 181 29,67% 13 000 30526

Interest Income 2 529 1 915 614 32,06% 2 337 6558

Interest Expense 274 70 204 291,43% 1 489 216

Net Interest 2 255 1 845 410 22,22% 848 6342

Other Financial
Income and
Expenses 2 899 2 873 26 0,90% 1 661 747
Gain/Loss Sale of
Assets 220 158 62 39,24% 66 -

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 Earnings Before Tax 19 277 15 598 3 679 23,59% 15 575 37 615

Income Taxes 3 554 3 245 309 9,52% 3 264 11 169

Earnings After Tax 15 723 12 353 3 370 27,28% 12 311 26 470

Net Income 15 723 12 344 3 379 27,37% 12 311 26470

Ordinary Dividends -12 000 -9 990 2 010 20,12% -9 045 -15873

1. Common Size Income Statement (ENNAKL Company)

Common Size Income Statement

Year 2015 2014
Sales 100,0% 100,00%
Cost of goods sold 87,10% 90,53%
Operating Income 12,90% 9,47%
Selling, General and Administrative Costs 9,15% 8,60%
Earnings Before Interest, Tax and Depreciation 3,75% 0,87%
Total Depreciation, Depletion and Amortization 1,22% 1,52%
Operating Income After Depr. and Amort. 2,53% -0,65%
Unusual/Exceptional Items 2,08% 4,69%
Earnings Before Interest and Tax 4,61% 4,04%
Interest Income 0,84% 0,72%
Interest Expense 0,09% 0,03%
Net Interest 0,75% 0,70%
Other Financial Income and Expenses 0,96% 1,08%
Gain/Loss Sale of Assets 0,07% 0,06%
Earnings Before Tax 6,40% 5,88%
Income Taxes 1,18% 1,22%
Earnings After Tax 5,22% 4,66%
Net Profit 5,22% 4,65%

2. Balance Sheet (ENNAKL Company)

Ennakl Increase/Decrease City Cars Artes

Year 2015 2014 Amount Percent 2015 2015
Assets
Cash and Equivalent 53 015 68 327 -15 312 -22,41% 2 259 5 028
Short-Term Investments 39 21 18 85,71% 26 186 116 667
Accounts Receivable 21 929 10 784 11 145 103,35% 1 895 7 219
Inventories 46 098 42 853 3 245 7,57% 28 018 24 509

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Prepayments and Advances 1 727 5 395 -3 668 -67,99% 621 2 399
Other Current Assets 10 978 9 328 1 650 17,69% 302 304
Current Assets 133 786 136 708 -2 922 -2,14% 59 281 156 126
Property, Plant and Equipment at cost 40 444 38 530 1 914 4,97% 8 462 17 505
Accumulated Depreciation 13 850 11 875 1 975 16,63% 629 7 512
Net Property, Plant and Equipment 26 594 26 655 -61 -0,23% 7 833 9 993
Intangibles 28 28 0 0,00% 29 477
Long Term Investments 24 876 23 515 1 361 5,79% 1 3 899
Other Long Term Assets 1 341 1 321 20 1,51% 132 493
Non current assets 52 839 51 519 1 320 2,56% 7 995 32 367
Total Assets 186 625 188 227 -1 602 -0,85% 67 276 170 988
Accounts Payable 87 091 95 182 -8 091 -8,50% 36 531 48 729
Short Term Debt 352 381 -29 -7,61% 0 16
Taxes Payable 6 839 2 648 4 191 158,27% 812 0
Other Current Liabilities 6 592 7 674 -1 082 -14,10% 757 7 290
Total Current Liabilities 100 874 105 885 -5 011 -4,73% 38 100 56 035
Long Term Debt 0 0 0 - 0 40
Deferred Taxes 233 383 -150 -39,16% 0 0
Provisions 865 1 555 -690 -44,37% 35 350
Other Long Term Liabilities 6 4 2 50,00% 2 1 571
Total Liabilities and Debt 101 978 107 827 -5 849 -5,42% 38 137 57 996
Preferred Shares 0 0 0 - 0 0
Common Stock/Shares 30 000 30 000 0 0,00% 13 500 38 250
Share Capital 30 000 30 000 0 0,00% 13 500 38 250
Shareholders Reserve 36 788 35 283 1 505 4,27% 3 328 48 272
Retained Earnings 15 723 12 344 3 379 27,37% 12 311 26 470
Other Equity 2 136 2 773 -637 -22,97% - 0
Total Shareholders Equity 84 647 80 400 4 247 5,28% 29 139 112 992
Total Liabilities and Equity 186 625 188 227 -1 602 -0,85% 67 276 170 988

3. Common Size Balance Sheet (ENNAKL Company)

Assets 2015 2014

Cash and Equivalent 28% 36%
Short-Term Investments 0,02% 0,01%
Accounts Receivable 11,75% 5,73%
Inventories 24,70% 22,77%
Prepayments and Advances 0,93% 2,87%
Other Current Assets 5,88% 4,96%
Current Assets 72% 73%
Property, Plant and Equipment at cost 21,67% 20,47%
Accumulated Depreciation 7,42% 6,31%
Net Property, Plant and Equipment 14,25% 14,16%

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 Intangibles 0,02% 0,01%
Leasing and Investment Properties 0,00% 0,00%
Long Term Investments 13,33% 12,49%
Other Long Term Assets 0,72% 0,70%
Non current assets 28% 27%
Total Assets 100% 100%

Liabilities and equity

Accounts Payable 46,67% 50,57%
Short Term Debt 0% 0%
Current Portion of Long Term Debt 0% 0%
Taxes Payable 3,66% 1,41%
Other Current Liabilities 3,53% 4,08%
Total Current Liabilities 54,05% 56,25%
Long Term Debt 0,00% 0,00%
Deferred Taxes 0,12% 0,20%
Provisions 0,46% 0,83%
Other Long Term Liabilities 0,00% 0,00%
Total Liabilities and Debt 54,64% 57,29%
Redeemable Preferred Shares 0,00% 0,00%
Preferred Shares 0,00% 0,00%
Common Stock/Shares 16,08% 15,94%
Participation Shares 0,00% 0,00%
Share Capital 16,08% 15,94%
Shareholders Reserve 19,71% 18,74%
Retained Earnings 8,42% 6,56%
Other Equity 1,14% 1,47%
Total Shareholders Equity 45,36% 42,71%
Total Liabilities and Equity 100% 100%

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IV. Statement of Cash Flows :

Ennakel Statement of Cash Flows

For the Year Ended Dec. 31, 2015 in thousands of dinars
Cash Flows from Operations
Net Income 15 723
Depreciation 3 672
Change in Accounts Receivable 11 145
Change in Inventories (3245)
Change in Accounts Payable 29 600
Change in Other Current Liabilities 5 011
Total Cash Flows from Operations 61 906
Cash Flows from Investing
Change in Plant & Equipment 61
Total Cash Flows from Investing 61
Cash Flows from Financing
Change in Notes Payable (29)
Change in LT Debt 2
Change in Common Stock 4 247
Cash Dividends Paid to Stockholders (12000)
Total Cash Flows from Financing (7780)
Net Change in Cash Balance 54 187

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 V. Ratios Analysis
ENNAKL SA
Ratio Analysis for 2014 and 2015
ENNAKL City Cars ARTES
Ratio 2015 2014 2015 2015 Industry 2015 Analysis
Liquidity Ratio
Current ratio 1,33 1,29 1,56 2,79 2,17 OK
Quick Ratio 0,87 0,89 0,82 2,35 1,58 Bad
Efficiency Ratio
Inventory turnover ratio 5,70 5,60 2,99 7,72 5,36 Good
Accounts receivable turnover 13,75 24,60 52,54 31,83 42,19 Bad
Average Collection Period 26,19 14,64 6,85 11,31 9,08 Bad
Fixed Asset Turnover 11,33 9,95 12,71 22,99 17,85 OK
Total Asset Turnover 1,62 1,41 1,48 1,34 1,41 Good
Leverage Ratio
Total Debt Ratio 54,64% 57,29% 56,69% 33,92% 45,30% OK
Long Term Debt Ratio 0,00% 0,00% 0,00% 0,02% 0,01%
LT Debt to Total Capitalization 0,00% 0,00% 0,00% 0,10% 0,05%

Debt to Equity 1,20 1,34 1,31 0,51 0,91 OK

LTD to Equity 0,00% 0,00% 0,00% 0,10% 0,05%
Coverage Ratio
Times Interest Earned 50,74 153,17 8,73 141,32 75,03 Bad
Cash Coverage 64,14 210,77 8,94 145,46 77,20 Bad
Profitability Ratio
Gross Profit Margin 12,90% 9,47% 15,79% 17,64% 16,71% OK
Operating Profit Margin 4,61% 4,04% 13,06% 13,28% 13,17% OK
Net Profit Margin 5,22% 4,65% 12,36% 11,52% 11,94% OK
ROA 8,42% 6,56% 18,30% 15,48% 16,89% OK
ROE 18,57% 15,35% 42,25% 23,43% 32,84% OK
ROCE 52,41% 41,15% 91,19% 69,20% 80,20% OK

Dupont ratio 18,57% 15,35% 42,25% 23,43%

Nbre of shares * 000 30000
Price per share 9,87
Z-score 3,932728539 >2.67 No Bankruptcy predicted
NOPAT 11339,776 8491,401
NOWC 27 359 19 108
OC 53 953 45 763
WACC 13,33% 13,33%
EVA 4148 2391

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 1. Efficiency Analysis

ENNAKL was able to rotate its inventory in sales 5.7 times in 2015 which increased from 5.6 in
2014.This is due to the increase in cost of goods sold. The inventory turnover is higher than the
industry average. So we can say that the company has better sales.

Accounts receivable turnover decreased from 24.6 to13.75 between 2014 and 2015.It is also a way
below the average .This was resulting from a very high and increasing amount of accounts
receivables. This high amount also leads to a higher average collection period of 26.19. It increased
from 14.64 and its almost 3 times the average industry. It takes ENNAKL 3 times the number of
days to convert its receivables into cash.

In 2015 ENNAKL generates 11.33 TND from each dinar invested in Fixed assets and 1.62 TND
from each dinar invested in total assets. This increased compared to 2014 with a 9.95 and 1.41 Fixed
asset turnover and Total asset turn over respectively but it is under the average for NFA but over
average for TFA. ENNAKL should invest less in net fixed assets and maybe sell some of them.

2. Leverage Ratio Analysis

In 2015, ENNAKL financed 56.64% through creditors. This structure changed slightly from 2014 by
more than 3% it is getting stable compared to the previous year.

Compared to its competitors ENNAKL owes 10% more money .This explains the higher cash and
equivalents it has needed to pay its interest payments. This structure is also confirmed through the
debt to equity ratio 1.2 which is higher than the industry average (0.91).But in the long run we can
see a 0% long term debt ratio during the two years. This shows that there is a null portion of assets
financed by long term debt. The average also is almost null (0.01%).This null long term debt lead to
a null LO debt to total capitalization and LTD to equity ratios. The debt of ENNAKL is mainly
composed of current liabilities.

3. Coverage Analysis

ENNAKL has a times interest ratio equals to 50.74.It means that it is able to pay 50.74 times its
interest expenses with its EBIT. Its coverage ratio equals to 64.14, its greater if we add the
depreciation and amortization but these two ratios badly decreased from 153.17 and 210.77 in 2014
even though its EBIT increased .Its mainly because the interest expenses doubled 4 times .It
doubled even though total debt decrease. We can see that the taxes payable increased by 2.6 times
and this is mainly the reason behind this raise in interest expenses and lower coverage performance

ENNAKL badly performing compared to the previous year and to the industry that on average
pay 75.03 times its interest expenses with EBIT.

4. Profitability Analysis
The profit margin analysis provides clues to the companys pricing policies, cost structure and
production efficiency.

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ENNAKLs Gross profit margin raised by 3.5% between 2014 and 2015 reaching 12.9%.This
evolution is due to a decrease of the proportion of cost of goods sold from sales. This increase in
gross profit margin with a decrease in depreciation and amortization cost lead to an increase in net
operating income. The drop of depreciation and amortization has also influenced the operating profit
margin with a 0.6% growth and the net profit margin also with 0.6% growth.

These 3 ratios are far under the industry average that operates with 16.71%gross profit margin,
13.17% operating profit margin and 11.94% net profit margin.

The management of ENNAKL improved but we can assume that it is not enough for the
industry. ENNAKL might revise its pricing strategy but most importantly reduce its cost structure
represented in its selling and administrative costs that increased this year and that is more than two
times the industry spending proportion.

ENNAKL has a return on equity ratio that equals 18.57% .it means that each dinar invested in equity
generates 0.1857 dinars and a return on assets equal to 8.42% it means that ENNAKL generates
0.1857 dinars for each dinar invested in equity and 0.0842 TND for each dinar invested in assets.

These two ratios showed an increase of 3% and 2% consecutively. This is a result of the 3.379
Million TND increase in Net income .This improved final result also lead to an improvement of the
return on common equity knowing that ENNAKL has zero preferred stocks and constant
common stocks.

If we compare these 3 ratios to the industry average we find that ENNAKL performed less than its
competitors. It generates a low net income compared to the amount invested in equity and in assets.

The DuPont ratio proves the certitude of our calculation and proves the profitability performance
analyzed in the previous part.

5. Financial Distress
ENNAKL has a Z-score equals to 3.933 which is larger than 2.67.This score predicts that there is
no risk of default .We can confirm this result with the higher solvency ratio.

We can conclude that the company is considered as safe and there is no risk of bankruptcy.

VI. Economic Profit Performance

NOWC of ENNAKL Company is positive and equals 27359.This reflects a good operating
liquidity level. The turnover level is adequate and ENNAKL is able to pay off its short term
liabilities. This measure is high. This can be also a signal that the company is able to repay its
operations.

ENNAKL EVAs is equal to 1845 TND .This positive value due to its high NOPAT and a WACC
of 13.33% indicates that ENNAKL produces an economic profit.

This economic profit could have been better if the company has better managed its costs and assets
utilization.

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VII. Forecasts

Forecasting Details

YEAR SALES
2007 212 187
2008 265 461
2009 316 430
2010 420 847
2011 275 136
2012 264 495
2013 300 339
2014 325 161
2015 333 062
2016 340 963

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 Regression Data
Year Sales COGS
2009 212187 193 391
2010 265461 232 646
2011 316430 278 418
2012 420847 329 630
2013 275136 195 089
2014 264495 240 111
2015 300339 262 553
2016* 325 161 268 915

*Forecast

Regression Results
SUMMARY OUTPUT

Regression
Statistics
Multiple R 0,920139
R-Square 0,846656
Adjusted R square 0,815987
Standard Error 20630,4
Observation 7

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 ANOVA
df SS MS F
Significance
F
1.17E+01 27.6064 0.003314755
Regression 1 1.17E+10 0 2
Residual 5 1.17E+09 4.26E+00
Total 6 1.39E+10 8

Coefficient Standard Error t-Stat P-value Lower 95% Upper 95%
s
Intercept 47614.58 38816.38 1.226662 0.274558 -52,166 147395.2628

Variable 0.680588 0.129533 5.254181 0.003315 0.347613489 1.013561579

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Adjusted R-square : 0.815 =

81% of the valuation of COGS
is explained by sales
P-value : =0.00315 =0.331 %
lower than 5 % mean that the
sales is a significant variable

Pro Forma Balance Sheet and Income Statement

The Pro-forma Balance sheet and income statement on the Appendix are based on the Percentage of sale
method and trend Forecast

We can see that discretionary financing needed was negative which means there is a unneeded borrowing
which could be invested either to purchase short term investment or to purchase fixed assets or
expenditure. On the other hand there are no guaranties that the company will borrow at the same level of
2015, it is highly probable that it will adequate its borrowing to its needs.

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VIII. Summary and Conclusion:

After the 2011 revolution and the transfer of ownership of Princess Holding to ALKARMA Holding,
We analyzed the global financial and economic performance of ENNAKL.

Knowing that it was the market leader before with 21.9%, we can easily notice that it has higher
sales than its competitors even though this market share decreased to 16.1% in 2015.
We can observe signals of recovery after the 2013 exceptional year and this observation proved
throughout our performance analysis but in general, ENNAKL is still performing below the industry
average.

In the liquidity side, ENNAKL showed stability and an ability to meet its short term obligations. But
it may revise its current assets and liabilities portions and this by increasing its cash on hand
and minimizing short term debts.

ENNAKL showed better efficiency performance than its competitors in its inventory rotation and
its total asset inventory. But this analysis showed bad cash collection strategy and an excess of
investment in fixed assets. This confirms the importance of the investment in current assets.

The leverage and the coverage analysis showed that the company owes more than the average
industry. With a zero long term debt level, ENNAKL is considered to lower its short term debt to
decrease its interest expenses. These expenses in addition to the high administrative costs affected
the companys profitability. ENNAKL can improve its net Income and its profitability in general if it
reconsiders its pricing strategy and its cost structure. It can be more profitable compared to the level
of equity and assets it owns.

We can notice a general improvement of ENNAKLs performance, even if it is weaker than the
industry performance. This is also confirmed by the stable income and the low risk of default.
Despite the difficulties it is facing and the change in its managing staff, ENNAKLs position itself as
a strong company in the distribution industry.
With a strategy that combines effective asset allocation, an effective pricing, a more efficient
receivables collection strategy and a more balanced cost structure , the company can be become the
leader of the industry.

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 IX. Appendix:

CITY CAR

The City Cars company came into operation on December 7, 2009. It is the importer and the official
distributor of KIA in Tunisian market; KIA brands reputation continues to increase through its extremely
competitive quality/price, in fact it occupies the 5 th range in the world in terms of sales.

At the end of 2014 the City Cars access the 5th position of the ranking of Personal Vehicles on the Tunisian
market with 9.3% of market share.

The City Cars Group has a solid financial position with good profitability levels in 2014, the consolidated
turnover was amounted to 84MDT and net income Group share 8MDT, and a net margin of 9.9%.This
performance was achieved through a sales force competent, a distribution network developed and effective
experienced and reduced staff.

City Cars has since January 2015 in support of its new shareholder principal, the consortium Bouchamaoui
Group Group Chabchoub.

Strategy

The short-medium term strategy City Cars consists on Environmental restrictions on imports, consolidate
its market share and Investing in a new headquarters, which should be operational

Early 2017 it will greatly expand after sales activities. It also expects to develop its network
(8current to 20 agencies on the horizon 2019), to ensure service quality and proximity.

ARTES

Established in 1947 ARTES is a company specialized in the retail sale of new vehicles, spare parts and after
sales service of Renault, Nissan and Dacia

ARTES is currently the sales leader in the automotive market in Tunisia and is the parent company of a group
including three companies specializing in the automotive sector:

+ Artegros : the import and wholesale of spare parts of Renault and Nissan

+ ADEV: the import and sale of vehicles, parts and service Nissan

+ AUTRONIC: created jointly with Johnson Control and specialized in the manufacture and marketing of
automotive electronic equipment intended for export.

ARTES was acquired by MZABI GROUP in 1997, introduced in the stock exchange in 2008 and it is managed
by MONCEF MZABI.

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Income Statement City cars

Income statement
Year 2015 2014
Net sales 99 283 84 244
Other revenues 283 104
Total Revenues 99 566 84 348
Cost of goods sold 83 848 70 462
Operating Income 15 718 13 886
Selling General and Administrative Costs 2 261 2 834
Earning Before Interest Tax and Depreciation 13 457 11 052
Depreciation 307 183
Amortization 0 11
Total Depreciation Depletion and Amortization 307 194
Operating Income After Depr. and Amort. 13 150 10 858
Unusual/Exceptional Items 150 890
Earnings Before Interest and Tax 13 000 9 968
Interest Income 2 337 990
Interest Expense 1 489 30
Net Interest 848 960
Other Financial Income and Expenses 1 661 -6
Gain/Loss Sale of Assets 66 0
Earnings Before Tax 15 575 10 922
Income Taxes 3 264 2 586
Earnings After Tax 12 311 8 336
Net Income 12 311 8 336
Ordinary Dividends -9 045 -7 425

Common Size Income Statement City cars

Common Size Income Statement
Year 2015 2014
Sales 100,00% 100,00%
Cost of goods sold 84,21% 83,54%
Operating Income 15,79% 16,46%
Selling, General and Administrative Costs 2,27% 3,36%
Earning Before Interest, Tax and Depreciation 13,52% 13,10%
Total Depreciation, Depletion and Amortization 0,31% 0,23%
Operating Income After Depr. and Amort. 13,21% 12,87%
Unusual/Exceptional Items 0,15% 1,06%
Earnings Before Interest and Tax 13,06% 11,82%
Interest Income 2,35% 1,17%

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Interest Expense 1,50% 0,04%
Net Interest 0,85% 1,14%
Other Financial Income and Expenses 1,67% -0,01%
Gain/Loss Sale of Assets 0,07% 0,00%
Earnings Before Tax 15,64% 12,95%
Income Taxes 3,28% 3,07%
Earnings After Tax 12,36% 9,88%
Net Profit 12,36% 9,88%

Balance Sheet City cars

Balance Sheet Statement

Year 2015 2014
Assets
Cash and Equivalent 2 259 1 190
Short-Term Investments 26 186 24 380
Accounts Receivable 1 895 565
Inventories 28 018 9 745
Prepayments and Advances 621 1 185
Other Current Assets 302 1 117
Current Assets 59 281 38 182
Property, Plant and Equipment at cost 8 462 2 577
Accumulated Depreciation 629 498
Net Property, Plant and Equipment 7 833 2 079
Intangibles 29 15
Leasing and Investment Properties 0 0
Long Term Investments 1 5 074
Other Long Term Assets 132 0
Non current assets 7 995 7 168
Total Assets 67 276 45 350
Accounts Payable 36 531 20 182
Short Term Debt 0 0
Current Portion of Long Term Debt 0 0
Taxes Payable 812 520
Other Current Liabilities 757 396
Total Current Liabilities 38 100 21 098
Long Term Debt 0 0
Deferred Taxes 0 0
Provisions 35 0
Minority interest 2 2
Total Liabilities and Debt 38 137 21 100
Redeemable Preferred Shares 0 0
Preferred Shares 0 0
Common Stock/Shares 13 500 13 500

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Participation Shares 0 0
Share Capital 13 500 13 500
Shareholders Reserve 3 328 2 415
Retained Earnings 12 311 8 335
Other Equity - -
Total Shareholders Equity 29 139 24 250
Total Liabilities and Equity 67 276 45 350

Common size Balance Sheet City cars

Common size Balance Sheet

Year 2015 2014
Assets
Cash and Equivalent 3% 3%
Short-Term Investments 38,92% 53,76%
Accounts Receivable 2,82% 1,25%
Inventories 41,65% 21,49%
Prepayments and Advances 0,92% 2,61%
Other Current Assets 0,45% 2,46%
Current Assets 88% 84%
Property, Plant and Equipment at cost 12,58% 5,68%
Accumulated Depreciation 0,93% 1,10%
Net Property, Plant and Equipment 11,64% 4,58%
Intangibles 0,04% 0,03%
Leasing and Investment Properties 0,00% 0,00%
Long Term Investments 0,00% 11,19%
Other Long Term Assets 0,20% 0,00%
Non current assets 12% 16%
Total Assets 100% 100%

Liabilities and equity

Accounts Payable 54,30% 44,50%
Short Term Debt 0% 0%
Current Portion of Long Term Debt 0% 0%
Taxes Payable 1,21% 1,15%
Other Current Liabilities 1,13% 0,87%
Total Current Liabilities 56,63% 46,52%
Long Term Debt 0,00% 0,00%
Deferred Taxes 0,00% 0,00%
Provisions 0,05% 0,00%
Other Long Term Liabilities 0,00% 0,00%
Total Liabilities and Debt 56,69% 46,53%
Redeemable Preferred Shares 0,00% 0,00%

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Preferred Shares 0,00% 0,00%
Common Stock/Shares 20,07% 29,77%
Participation Shares 0,00% 0,00%
Share Capital 20,07% 29,77%
Shareholders Reserve 4,95% 5,33%
Retained Earnings 18,30% 18,38%
Total Shareholders Equity 43,31% 53,47%
Total Liabilities and Equity 100% 100%

Income Statement Artes

Income statement
Year 2015 2014
Net sales 228734 205732
Other revenues 1047 552
Total Revenues 229781 206284
Cost of goods sold 189257 169278
Operating Income 40524 37006
Selling, General and Administrative Costs 8391 9286
Earning Before Interest, Tax and Depreciation 32133 27720
Depreciation and Depletion 805 801
Amortization 89 348
Total Depreciation, Depletion and Amortization 894 1149
Operating Income After Depr. and Amort. 31239 26571
Unusual/Exceptional Items 713 -
Earnings Before Interest and Tax 30526 26571
Interest Income 6558 4198
Interest Expense 216 264
Net Interest 6342 3934
Other Financial Income and Expenses 747 290
Gain/Loss Sale of Assets - -
Earnings Before Tax 37615 30795
Income Taxes 11169 6263
Earnings After Tax 26446 24532
Other After Tax Adjustments 24 230
Net Profit 26470 24762
Ordinary Dividends 15873 -

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Balance Sheet Artes

Balance Sheet Statement

Year 2015 2014
Assets
Cash and Equivalent 5 028 6 701
Short-Term Investments 116 667 80 332
Accounts Receivable 7 219 8 245
Inventories 24 509 22 019
Prepayments and Advances 2 399 2 495
Other Current Assets 304 210
Current Assets 156 126 120 002
Property, Plant and Equipment at cost 17 505 17 100
Accumulated Depreciation 7 512 6 719
Net Property, Plant and Equipment 9 993 10 381
Intangibles 477 563
Leasing and Investment Properties 0 0
Long Term Investments 3 899 10 787
Other Long Term Assets 493 439
Non current assets 32 367 39 270
Total Assets 170 988 142 172
Accounts Payable 48 729 36 497
Short Term Debt 16 68
Current Portion of Long Term Debt 0 0
Taxes Payable 0 0
Other Current Liabilities 7 290 1 454
Total Current Liabilities 56 035 38 019
Long Term Debt 40 40
Deferred Taxes 0 34
Provisions 350 350
Minority interest 1 571 1 333
Total Liabilities and Debt 57 996 39 776
Redeemable Preferred Shares 0 0
Preferred Shares 0 0
Common Stock/Shares 38 250 31 875
Participation Shares 0 0
Share Capital 38 250 31 875
Shareholders Reserve 48 272 45 759
Retained Earnings 26 470 24 762
Other Equity 0 0
Total Shareholders Equity 112 992 102 396

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 Total Liabilities and Equity 170 988 142 172

Proforma Balance Sheet ENNAKL

ENNAKL pro-forma Balance
Sheet
Balance Sheet
year ended dec , 31,2015
Year 2016 * 2015 2014
Assets
Cash and Equivalent 53 015 53 015 68 327
Short-Term Investments 39 39 21
Accounts Receivable 18438 21 929 10 784
Inventories 51131 46 098 42 853
Prepayments and Advances 4238 1 727 5 395
Other Current Assets 10 978 10 978 9 328
Current Assets 137 839 133 786 136 708
Property, Plant and Equipment at cost 40 444 40 444 38 530
Accumulated Depreciation 13 850 13 850 11 875
Net Property, Plant and Equipment 26 594 26 594 26 655
Intangibles 28 28 28
Leasing and Investment Properties 0 0 0
Long Term Investments 24 876 24 876 23 515
Other Long Term Assets 1 341 1 341 1 321
Non current assets 52839 52 839 51 519
Total Assets 190678 186 625 188 227
Accounts Payable 105316,62 87 091 95 182
Short Term Debt 352 352 381
Current Portion of Long Term Debt 0 0 0
Taxes Payable 6 839 6 839 2 648
Other Current Liabilities 6 592 6 592 7 674
Total Current Liabilities 119099,62 100 874 105 885
Long Term Debt 0 0 0
Deferred Taxes 233 233 383
Provisions 865 865 1 555
Other Long Term Liabilities 6 6 4
Total Liabilities and Debt 120 204 101 978 107 827
Redeemable Preferred Shares 0 0 0
Preferred Shares 0 0 0
Common Stock/Shares 30 000 30 000 30 000
Participation Shares 0 0 0
Share Capital 30 000 30 000 30 000
Shareholders Reserve 36 788 36 788 35 283
Retained Earnings 15 723 15 723 12 344
Other Equity 2 136 2 136 2 773

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Total Shareholders Equity 84647 84 647 80 400
Total Liabilities and Equity 204851 186 625 188 227
forecast*
discretionary financing needed -14 173

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 X. Bibliography & References:

http://www.bvmt.com.tn/

http://www.ilboursa.com/

http://www.readyratios.com/

http://www.jurisitetunisie.com/tunisie/codes/flocal/fisc-local1070.htm

http://www.leaders.com.tn/uploads/FCK_files/file/SCIF.pdf

http://www.tustex.com/fichesoc.php?nom_soc=ENNAKL

http://www.bnacapitaux.com.tn/publications/news/other_23062010-1.pdf

http://www.investopedia.com/

http://www.ccdconsultants.com/

http://www.cashfocus.com/

http://strategiccfo.com/wikicfo

http://www.creditmanagementworld.com/

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