Case Hansson Private Label

HPL (NPV Analysis with Constant Growth) Operating Results:

Total Capacity (000's) Capacity Utilization Unit Volume

Selling Price Per Unit - Growing at

3.0%

Revenue

Production Costs:

Raw aterials Per Unit Growing at an!"act!ring #$erea& Growing at aintenance pense Growing at

3.0% 3.0% 3.0%

Salaried Labor Cost:

anagers $erage nn!al *!lly +oa&e& Cost

3.0%

Total Salaried Labor Cost

Hourly Labor Cost:

$erage *!lly +oa&e& ,o!rly Cost ,o!rs Per ear

3.0%

Cost Per Hourly Employee

!/er o" ,o!rly 1or2ers Total Hourly Labor Cost (000's)

Selling General 4 &/inistrati$e5Re$en!e Total Labor Cost

Less Ra! "aterials Costs Less Labor Cost Less "anu#a$turin% &veread Less "aintenan$e Epense Less Sellin% *eneral + ,dministrative

E-.T/, Less /epre$iation E-.T Less Taes &P,T

Un-levered Free Cash Flow:

60%

&P,T Plus /epre$iation (Less Can%e in et 1ied ,ssets) Less Can%e in et 2or3in% Capital

Un4levered 1ree Cas 1lo!

7.38%

Cost o# Capital Pre se n tVa l u eo#Un 4l e v e re d1 C1 Pre se n tVa l u eo#Re t u r no #2or 3i n %Ca p i ta l

56  7 8 9

5 6 7 8 9 9 : 5 ;

.n v e s t m e n t P(V P e rt e s eV na t lue )

5 6 00 0 5 05 0

or!ing Capital "ssu#ptions $%&:

9ays Sales #!tstan&ing 9ays Sales :n$entory 9ays Payale #!tstan&ing

'alance Sheet (ata: ,$$ounts Re$eivable .nventory ,$$ounts Payable + ,$$rued Liabilities 2 e tor 3 iC n %a p i ta l

: < 7 : ;

Pro p e r tyPl a n+ E t =ui pme nt

5 6 00 0

Tot.anl v e s t eCda p i t a l

6; 7: ;

"sset )**iciency:

R# T#

HPL (EVA Analysis with Constant Growth) +nvested Capital: -e%innin% -alan$e Plus Can%e in 2or3in% Capital Less /epre$iation Endin% -alan$e

)," "nalysis:

&P,T Less Capital Car%e EV,

7.38%

Cost o# Capital Pre se nV t a l uo eE # V, Pre se n tVa l u eo#Re t u r no #2or 3i n %Ca p i ta l L e sPs
:<; >>

: < ; > > 9 : 5 ; ::  7 ; 9 5 05 0

HPL (NPV Analysis Using Gates´ Assumptions) Operating Results:

Total Capacity (000's) Capacity Utilization Unit Volume

Selling Price Per Unit - Growing at

;.0%

Revenue

Production Costs:

Raw aterials Per Unit Growing at an!"act!ring #$erea& Growing at aintenance pense Growing at

<.0% 3.0% 3.0%

Salaried Labor Cost:

anagers $erage nn!al *!lly +oa&e& Cost

3.=%

Total Salaried Labor Cost

Hourly Labor Cost:

$erage *!lly +oa&e& ,o!rly Cost ,o!rs Per ear Cost Per Hourly Employee

!/er o" ,o!rly 1or2ers Total Hourly Labor Cost (000's)

Selling General 4 &/inistrati$e5Re$en!e Total Labor Cost

Less Ra! "aterials Costs Less Labor Cost Less "anu#a$turin% &veread Less "aintenan$e Epense

3.=%

Less Sellin% *eneral + ,dministrative

E-.T/, Less /epre$iation E-.T

60%

Less Taes &P,T

Un-levered Free Cash Flow: &P,T Plus /epre$iation (Less Can%e in et 1ied ,ssets) Less Can%e in et 2or3in% Capital

Un4levered 1ree Cas 1lo!

7.38%

Cost o# Capital Pre se n tVa l u eo#Un 4l e v e re d1 C1 Pre se n tVa l u eo#Re t u r no #2or 3i n %Ca p i ta l

5;  0 90

5 ;  09 0 < 8 5 :

.n v e s t m e n t P(V P e rt e s eV na t lue )

5 6 00 0 5 8 ; :

or!ing Capital "ssu#ptions $%&:

9ays Sales #!tstan&ing 9ays Sales :n$entory 9ays Payale #!tstan&ing

'alance Sheet (ata: ,$$ounts Re$eivable .nventory ,$$ounts Payable + ,$$rued Liabilities 2 e tor 3 iC n %a p i ta l

: < 7 : ;

Pro p e r tyPl a n+ E t =ui pme nt

5 6 00 0

Tot.anl v e s t eCda p i t a l

6; 7: ;

"sset )**iciency:

R# T#

HPL (EVA Analysis Using Gates´ Assumptions) +nvested Capital: -e%innin% -alan$e Plus Can%e in 2or3in% Capital Less /epre$iation Endin% -alan$e

)," "nalysis: &P,T Less Capital Car%e EV,

7.38%

Cost o# Capital Pre se nV t a l uo eE # V, Pre se n tVa l u eo#Re t u r no #2or 3i n %Ca p i ta l L e sPs
: 9  : 95

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