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Balance sheet
Cash 120.1 105.2 66.8 9.4 (165.3)
Accounts receivable 90.6 99.5 119.5 146.4 190.3
Inventory 468.3 507.6 523.4 656.9 854.0
Other current assets 20.9 19.3 22.6 20.9 32.5
Current assets 699.9 731.6 732.3 833.6 911.4
Net fixed assets 332.1 332.5 384.3 347.9 376.9
Total assets 1032.0 1064.1 1116.6 1181.5 1288.3
Exhibit 2
Free Cash Flow Analysis
(Unit: thousands of dollars)
2002 2003 2004 2005 2006 F
Net profit 25.3 52.0 60.8 90.5
Add: Depreciation 38.4 36.3 40.9 46.0
Less: Increase in Working Capital -39.8 -38.6 -154.6 -236.3
Less: CAPEX -38.8 -88.1 -4.5 -75.0
FCF -14.9 -38.4 -57.4 -174.7
Exhibit 3
Details of change in net working capital
(Unit: thousands of dollars)
2002 2003 2004 2005 2006 F
Change in Accounts receivable 8.9 20.0 26.9 43.9
Change in Inventory 39.3 15.8 133.5 197.1
Change in Other current assets -1.6 3.3 -1.7 11.6
Change in Accounts payable -0.7 -0.8 0.5 1.6
Change in Wages payable 2.3 0.1 2.3 9.7
Change in Other payables 5.2 1.2 1.3 5.1
Increase in Working Capital 39.8 38.6 154.6 236.3
Exhibit 4
Gowth of Revenue and Account Receivable
30%
Exhibit 5
Financial Ratio and Benchmarking
Return on assets (Net profit / Total assets) 3.2% 2.4% 4.7% 5.1% 2.9%
Return on capital (Net profit / Total capital) 3.3% 2.5% 4.8% 5.4% 4.0%
Receivable days (AR / Revenue * 365) 41.9 45.0 48.0 50.9 21.8
Inventory days (Inventory / COGS * 365) 424.2 432.1 436.5 476.3 386.3
Payable days (AP / Purchases * 365) 15.6 13.3 10.2 9.9 26.9
NFA turnover (Revenue / NFA) 2.4 2.4 2.4 3.0 2.7
Cash Conversion Cycle 450.6 463.7 474.3 517.4 381.2
1
Benchmark figures are based on 2004 financial ratios of publicly traded horticulture producers.
Exhibit 1
Financial Statement Projection
Balance sheet
Cash 120.1 105.2 66.8 9.4 (165.3)
Accounts receivable 90.6 99.5 119.5 146.4 190.3
Inventory 468.3 507.6 523.4 656.9 854.0
Other current assets 20.9 19.3 22.6 20.9 32.5
Current assets 699.9 731.6 732.3 833.6 911.4
Net fixed assets 332.1 332.5 384.3 347.9 376.9
Total assets 1032.0 1064.1 1116.6 1181.5 1288.3
Exhibit 2
Free Cash Flow Analysis
(Unit: thousands of dollars)
2002 2003 2004 2005 2006 F
Net profit 25.3 52.0 60.8 90.5
Depreciation 38.4 36.3 40.9 46.0
Net Change in Working Capital -39.8 -38.6 -154.6 -236.3
CAPEX -38.8 -88.1 -4.5 -75.0
FCF -14.9 -38.4 -57.4 -174.7
Balance sheet
Cash 15.2% 13.0% 7.4% 0.9% Formula
Accounts receivable 41.9 45.0 48.0 50.9 50.9 /2 Receivable days
Inventory 424.2 432.1 436.5 476.3 476.3 /2 Inventory days
Other current assets 2.7% 2.4% 2.5% 2.0% 2.4% /3 % of Revenue
Current assets
Net fixed assets Formula
Total assets
/1 CAGR
/2 Applying 2005 financial ratio
/3 Applying 4-year average financial ratio
Revenue G
-165.34 -165.3 -25% -20% -15% -10% -5% 0%
34%
36%
COGS (% of Revenue)
38%
40%
42%
44%
46%
48%
50%
52%
Exhibit 5
Sensitivity Analysis for Cash Balance
AP Day
### 7.9 9.9 11.9 13.9 15.9 17.9
75.9
70.9
65.9
60.9
55.9
50.9
AR Days
45.9
40.9
35.9
30.9
25.9
20.9
15.9
10.9
5.9
Revenue Growth
5% 10% 15% 20% 25% 30% 35% 40%
AP Days
19.9 21.9 23.9 25.9 27.9 29.9 31.9 33.9
Exhibit 1
Financial Statement Projection
Scenario: Funding with loan
(Unit: thousands of dollars)
2002 2003 2004 2005 2006 F
Profit and loss statement
Revenue 788.5 807.6 908.2 1048.8 1363.4
Cost of goods sold 402.9 428.8 437.7 503.4 654.4
Gross profit 385.6 378.8 470.5 545.4 709.0
SG&A expense 301.2 302.0 356.0 404.5 522.7
Depreciation 34.2 38.4 36.3 40.9 46.0
Operating profit 50.2 38.4 78.2 100.0 140.3
Interest 18.6
Taxes 17.6 13.1 26.2 39.2 43.2
Net profit 32.6 25.3 52.0 60.8 78.5
Balance sheet
Cash 120.1 105.2 66.8 9.4 109.1
Accounts receivable 90.6 99.5 119.5 146.4 190.3
Inventory 468.3 507.6 523.4 656.9 854.0
Other current assets 20.9 19.3 22.6 20.9 32.5
Current assets 699.9 731.6 732.3 833.6 1185.8
Net fixed assets 332.1 332.5 384.3 347.9 376.9
Total assets 1032.0 1064.1 1116.6 1181.5 1562.7
Exhibit 2
Free Cash Flow Analysis
(Unit: thousands of dollars)
2002 2003 2004 2005 2006 F
Net profit 25.3 52.0 60.8 78.5
Depreciation 38.4 36.3 40.9 46.0
Net Change in Working Capital -39.8 -38.6 -154.6 -236.3
After Tax Interest 12.0
CAPEX -38.8 -88.1 -4.5 -75.0
FCF -14.9 -38.4 -57.4 -174.7
Cash 8% of Revenue