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2015-2016 KPMG International Case Competition
Unicorn ConsultingMabe Business Strategy
Mabe profilea. Revenues
b. Global Occupations
c. Strengths and weaknesses
© 2014 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. NDPPS 304443
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Historical revenues show strong year on year for performance, reliant on the Americas
• Latin America (along with Mexico) make up the core of Mobe’s market.
• Further high growth will be difficult to achieve in these markets
Historical revenues and projectionsGlobal Revenue by Region
Latin America and Mexico’s future growth are limited, expansion or Joint Venture is needed in culturally similar
markets
• Large growth attributed to JV and Acquisitions• Slight decline in revenue due to GFC• 4% Future growth estimate
10%10%
40%
23%
17%
Chart Title
International
Canada
Latin America
GE USA
Mexico
Sales Performance by Region in 2011
1991 1993 1995 1997 1999 2001 2003 2005 2007 2009 2011 2013 20150
500
1000
1500
2000
2500
3000
3500
4000
4500
Mabe's Revenue (US $m) Projected Growth
CAGR 24%
© 2014 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. NDPPS 304443
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Mabe is a global company with the core of the business in the Americas and potential to expand to Asia and the emerging markets
Manufacturing facility centre
Procurement Office
Research and Development
Centre
Representation office
Acquisitions
Future Markets
Joint Ventures
Centre
© 2014 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. NDPPS 304443
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Human Capital
Assets
DebtGeographic reach
Synergy with other firms
We have identified 5 indicators of performance that help outline Mabe’s strengths and weaknesses
• Progressive hiring college graduates has led to educated employees
• Global manufacturing centres(through JVs and acquisition) leaves Mabe with considerable assets
• In 2008, Short term borrowings were $637m, whilst long term debt decreased to $429m
• Commanding a foothold in the Americas, Mabe should look to expand to Asia and the emerging markets
• Past JVs and acquisitions have performed well, whilst the Russian venture underperformed due to a combination of factors
Historical performance and strategya. Russian market drivers
b. Areas for improvement
c. Corporate structure
d. Past operations (JVs and acquisitions)
e. Scorecard
f. Marketing
© 2014 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. NDPPS 304443
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• Russia had a profit margin 2x that of the standard operating margin for appliances
• Required local manufacturing which Mabe did not -all items from other plants (high transportation cost)
• Wholesale –
• Regional Distributor –
• Self-distribution or acquire distributor
• Must address market-specific needs
• Corruption/bribery in bureaucracy
• 56% of enterprise owned by government
• Few small enterprises
• Gap between 5 big cities and rest of country
• Few investment banks and private equity institutions
• One large central bank operated by the government
• Difficult to obtain loans
• Decline in foreign investment (cite appendix -$80B outflow in 2011)
• Young twenty-somethings that are capitalistic consumers, concerned with status
• Older Soviet generation that is disciplined, hardworking and distrusting
• Market-specific needs must be met in emerging markets
• More affordable products
• Government stimulus packages
• Energy & Water efficiency
Market Requirements
Distribution ChanbelsProfitabilityDemographics Capital Market
InstitutionsEconomic structure
Market drivers in Russia are unique to the country
Russian market drivers
RegulationSupplyDemand
© 2014 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. NDPPS 304443
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Improvements can be made on current business strategy to better position Mabe within the global appliance market
Current Strategy Recommended Action New Effectiveness
Corporate structure (e.g. Spanish CEO in Russia)
Local talent in upper management (in progress) ◕
Joint venture in Russia with Spanish firm Fagor
Acquire local companies and small players (e.g. Candy) ●
Action Learning Team Action Learning team and a scorecard to analyse factors outside of city business life ◕
Value propositionContinue to trim offerings, attacking holes in
the market, target highlighted area in scorecard and AL ◕
Marketing(ads, demographics)
Advertise online and through social media to target younger generations ◕
A
B
C
D
E
© 2014 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. NDPPS 304443
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Improvements can be made on current business strategy to better position Mabe within the global appliance market
Current Strategy Recommended Action Action Effectiveness
Corporate structure (e.g. Spanish CEO in Russia)
Local talent in upper management (in progress) ◕
Joint venture in Russia with Spanish firm Fagor
Acquire local companies and small players (e.g. Candy) ●
Action Learning Team Action Learning team and a scorecard to analyse factors outside of city business life ◕
Value propositionContinue to trim offerings, attacking holes in
the market, target highlighted area in scorecard and AL ◕
Marketing(ads, demographics)
Advertise online and through social media to target younger generations ◕
A
B
C
D
E
© 2014 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. NDPPS 304443
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Corporate Structure
CEO
Upper Management Integration
Middle Management
Employees
Experienced Locals
Integration of experience and
youth
Educated workforce
Educated foreign
A
© 2014 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. NDPPS 304443
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Improvements can be made on current business strategy to better position Mabe within the global appliance market
Current Strategy Recommended Action Action Effectiveness
Corporate structure (e.g. Spanish CEO in Russia)
Local talent in upper management (in progress) ◕
Joint venture in Russia with Spanish firm Fagor
Acquire local companies and small players (e.g. Candy) ●
Action Learning Team Action Learning team and a scorecard to analyse factors outside of city business life ◕
Value propositionContinue to trim offerings, attacking holes in
the market, target highlighted area in scorecard and AL ◕
Marketing(ads, demographics)
Advertise online and through social media to target younger generations ◕
A
B
C
D
E
© 2014 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. NDPPS 304443
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Success in Latin America shows us what works and what doesn’t
RussiaLatin America
Challenges faced during Mabe’s Latin American market entry are not unlike those faced in Russia. Global financial crisis aside, deviating from our previously successful strategy was
our downfall, not “overconfidence”
Revenue
$80M after 4y, Double in 4y with (14% growth rate), $400M with an
acquisition
DemographicsEuropean yuppies, older Soviet
generation
Competition Large US Brands, local competition
External Factors
Distrusting culture, complex tax system, global financial crisis, low
human capital
StrategyJoint Venture, high-end niche
positioning
Revenue Brazil $1B, Mexico $650M
Demographics Working class families
Competition Large US Brands, local competition
External Factors
Mexico/Brazil clash, Corruption, capitalist, unindustrialized, poor
education system
StrategyAcquisition, medium-end
positioning
© 2014 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. NDPPS 304443
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Acquisitions help us to get the “local edge” that is so crucial in emerging markets
RussiaLatin America
Acquiring companies with local insights and manufacturing helps penetrate markets quickly, even in subprime economic
conditions
Year 1
Year 5
Year 10
• Acquire Easy• 2 plants in Mexico (Queretaro, San Luis
Potosi)
• Acquired plants in Ecuador, Argentina, Columbia
• JVs with Ceteco and Durex (locally-based)
• Acquire Dako in Brazil• Open new plant in Mexico (Celaya)
• Acquire ATLAS (Costa Rica)• Acquire Bosch (Brazil)
• Open representation office
• JV with Fagor
• Shrink product mix, repositioning
Goal: “Leaders in Latin America” Goal: “Gain global competitiveness”
© 2014 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. NDPPS 304443
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A possible acquisition could bootstrap growth from the bottom up
MielCandy
In order to fully take advantage of high profit margins (exhibit 8) and other benefits that come from local
manufacturing in an emerging market, we need factories on Russian soil.
Benefits• A supply chain that supports our most popular products (Stoves and
Fridges NOT microwaves and washing machines)• Snag extra 5% market share (2x current)• Gives us access to their suppliers to grow our network in the region• Allows us to focus on local markets instead of 5 city areas where most
competition is• Financial statements with revenue projection from acquisition go here
© 2014 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. NDPPS 304443
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Mabe is not new to culture clashes
RussiaLatin America
Mabe’s workers may have been Russian enough, but they have not acted Russian enough. We want to be a foreign
company selling
ExecutivesCEO in Brazil from HR department,
action teams
WorkforceEngineers from the US, LATAM
nationals from acquisitions
Distributors Used channels from acquisitions
Consumers
Strong price competition, very elastic demand, accepting of US
brands
Business Culture Based on charm
ExecutivesCEO was only foreigner, action
teams
WorkforceSplit between seniors/juniors,
average age <42yo
Distributors Regional distributors
Consumers
Disparate market segments, rural/urban divide, distrusting of US
brands
Business Culture What you see is what you get
© 2014 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. NDPPS 304443
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Improvements can be made on current business strategy to better position Mabe within the global appliance market
Current Strategy Recommended Action Action Effectiveness
Corporate structure (e.g. Spanish CEO in Russia)
Local talent in upper management (in progress) ◕
Joint venture in Russia with Spanish firm Fagor
Acquire local companies and small players (e.g. Candy) ●
Action Learning Team Action Learning team and a scorecard to analyse factors outside of city business life ◕
Value propositionContinue to trim offerings, attacking holes in
the market, target highlighted area in scorecard and AL ◕
Marketing(ads, demographics)
Advertise online and through social media to target younger generations ◕
A
B
C
D
E
© 2014 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. NDPPS 304443
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A weighted scorecard might be used in conjunction with the ActionLearning to provide a more swift and accurate view on market entry
Country FDI and Market Size
Market Entry Profitability GDP Discretionar
y Income Total
Brazil 2 3 2 2 2 11
Russia 1 2 3 1 3 10
India 2 3 2 1 1 9
China 3 1 3 3 1 11
South East Asia
? ? ? ? ? ?
$13 (B) Market Size
$1.5 trillion
State Ownership (>50%)
(10-12% marginal contribution– 2x
Margins)
16-18% marginal contribution
6-8% marginal contribution
Weak Capital Market Institutions (56%)
$1.4 trillion
$2.2 trillion
$5.7 trillion
Low barriers to entry
$50B in direct foreign investment
$1 (B) Market Size
$104 (B) Market Size
$12.5 (B) Market Size
© 2014 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. NDPPS 304443
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Improvements can be made on current business strategy to better position Mabe within the global appliance market
Current Strategy Recommended Action Action Effectiveness
Corporate structure (e.g. Spanish CEO in Russia)
Local talent in upper management (in progress) ◕
Joint venture in Russia with Spanish firm Fagor
Acquire local companies and small players (e.g. Candy) ●
Action Learning Team Action Learning team and a scorecard to analyse factors outside of city business life ◕
Value propositionContinue to trim offerings, attacking holes in
the market, target highlighted area in scorecard and AL ◕
Marketing(ads, demographics)
Advertise online and through social media to target younger generations ◕
A
B
C
D
E
© 2014 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. NDPPS 304443
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Mabe needs to focus marketing efforts outside five major cities (local areas) to capture larger market share
Use to increase market share by
targeting customers in local towns
Local Media
Commercials of products to establish
familiarity with operations
TelevisionAdvertisements of Mabe’s product
line integrated in model homes
Social MediaIncorporate Mabe Logo to increase public presence
Physical Media
Local entertainment channels to target the
youth
Stations
Daytime Programming
TimeTargets
majority of youth on internet
Age Integration of model home appliances appeals to
youth
Content Public Areas: Local Parks,
Shopping Centers,
etc…
LocationsThe Mabe logo on billboards encourages local brand recognition
Content
Incorporation of local media campaign targeting the new youth demographic will increase market penetration
E
Moving forward
© 2014 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. NDPPS 304443
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• 18% Growth Rate
• Risks: Low discretionary income, not culturally-familiar to the firm
Why we should stick with the Russians
Russia
China
India
• 4% Growth Rate (Possibly higher with acquisitions)
• Risks: Locals still resent foreign firm intrusion
• Benefits:
• 10% Growth Rate
• Risks: Extreme competition, no first mover advantage, low discretionary income
2013 2014 2015 -
1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
6,000,000
Emerging Markets Revenue Projections
Russia India China
2013 2014 2015 -
1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
6,000,000
Emerging Markets Revenue Projections
Russia India China
2013 2014 2015 -
1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
6,000,000
Emerging Markets Revenue Projections
Russia India China
4%
10%
18%
© 2014 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. NDPPS 304443
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In order to address Mabe’s concerns and gain global competitiveness from Russia, we will target 3 key areas of development
Seize market share/access to local manufacturing through acquisitions
Appeal to the Russian working culture AND
consumer culture
Develop a “market scorecard” to help assess
future market entries
• Candy and Miel (~5%)
• Take advantage of low manufacturing costs/regulation
• Ad campaign to be run locally
• Distribution channel that is more local than regional distributors?
• Focus on quantitative AND qualitative factors
• Composed of internal experts instead of external newbees
© 2014 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. NDPPS 304443
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A five year plan should include these steps to secure Mabe’s future in the global appliance market
Year 1 Year 2 Year 3 Year 4 Year 5
Acquire Miel and Candy
Switch distribution channels
Assess new markets with scorecard
Begin local manufacturing
Run local ad campaign
Appendix
a. Market Size Projections
b. Income/Revenue Projections
c. Balance Sheet Projections
© 2014 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. NDPPS 304443
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A. Market Size Projections
Market Size (units)'05-'10CAGR 2011 2012
'11-'12CAGR 2013 2014 2015
China 10% 114,926,187 126,808,111 4% 131,880,436 137,155,653 142,641,879 India 18% 15,778,473 18,573,298 4% 19,316,230 20,088,879 20,892,434 Russia 3% 12,933,784 13,278,939 4% 13,810,097 14,362,501 14,937,001 Model DriversRussia Acquisition!Market Share % 3.00% 4.00% 4.90% 10% 12% 14%Market Share $ 0 517,351 650,668 1,381,010 1,723,500 2,091,180 Sales 70,000,000 80,000,000 14% 176,000,000 197,120,000 224,716,800 Average Purchase $ 135.30$ 122.95$ 127.44$ 114.37$ 107.46$
IndiaMarket Share % 3.00% 1.00% 2.00% 4.00% 6.00% 8.00%Market Share $ - 157,785 371,466 772,649 1,205,333 1,671,395 Sales 21,348,993 45,671,947 98,468,718 137,856,206 179,606,942 Average Purchase $ 135.30$ 122.95$ 127.44$ 114.37$ 107.46$
ChinaMarket Share % 3.00% 0.50% 1.00% 1.50% 3.00% 4.00%Market Share $ - 574,631 1,268,081 1,978,207 4,114,670 5,705,675 Sales 77,750,188 155,911,284 252,108,546 470,602,620 613,127,984 Average Purchase $ 135.30$ 122.95$ 127.44$ 114.37$ 107.46$
Key Assumptions• All three markets normalize to a 4% growth rate after 2012• Russian acquisition helps to double market share (from ~5% to 10%)
© 2014 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. NDPPS 304443
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B. Income/Revenue Projections
Key Assumptions• Mabe revenue growth rate of 4%
• Russian market is fully recovered from global financial crisis by 2014• Cost of Goods Sold increases at half the rate of revenue growth (2%).• In order to be conservative, we expect a small currency loss growing 1% each year.
Income StatementModel Drivers
December 31st (000s USD)'06-'08CAGR 2009 2010 2011 2012
'09-'012Average
'09-'012CAGR 2013 2014 2015
'13-'15Average
'13-'15CAGR
Total Revenue 3.86% 3,540,995 3,682,635 3,829,940 3,983,138 3,759,177 4.00% 4,142,463 4,308,162 4,480,488 4,310,371 4.00%YOY % Change #NUM! 3.85% 3.85% 3.85% 3.85% 3.85%
Cost Of Goods Sold 1.18% 2,549,642 2,600,635 2,652,648 2,705,700 2,627,156 2.00% 2,759,814 2,815,011 2,871,311 2,815,379 2.00%YOY % Change 1.96% 1.96% 1.96% 1.96% 1.96%
Gross Profit 12.55% 991,353 1,082,000 1,177,293 1,277,437 1,132,021 8.82% 1,382,649 1,493,151 1,609,177 1,494,993 7.88%Selling General & Admin Exp. 17.74% 710,412 738,828 768,381 799,116 754,184 4.00% 831,081 864,324 898,897 864,767 4.00%
Operating Income 0.06% 280,942 343,172 408,912 478,321 377,837 19.41% 551,568 628,827 710,280 630,225 13.48%YOY % Change 18.13% 16.08% 14.51% 12.29% 11.47%
Interest Expense 3.07% -90,272 -93,883 -97,638 -101,544 -95,834 4.00% -105,605 -109,830 -114,223 -109,886 4.00%Interest and Invest. Income -3.06% 12,112 12,596 13,100 13,624 12,858 4.00% 14,169 14,736 15,325 14,743 4.00%
Net Interest Exp. -4.17% -78,208 -81,336 -84,590 -87,973 -83,027 4.00% -91,436 -95,094 -98,898 -95,143 4.00%Currency Exhange Gains (Loss) 329.38% 10,000 10,100 10,201 10,303 10,151 1.00% 10,406 10,510 10,615 10,510 1.00%
YOY % Change 0.99% 0.99% 0.99% 0.99% 0.99%Other Non-Operating Inc. (Exp.) -53.09% -7,072 -7,355 -7,649 -7,955 -7,508 4.00% -8,273 -8,604 -8,948 -8,609 4.00%Income Tax Expense -11.49% 28,261 29,391 30,567 31,790 30,002 4.00% 33,061 34,384 35,759 34,401 4.00%
Net Income to Company -62.55% 177,401 235,190 296,307 360,906 267,451 26.71% 429,203 501,255 577,290 502,583 15.98%YOY % Change 24.57% 20.63% 17.90% 14.37% 13.17%
© 2014 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. NDPPS 304443
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C. Balance Sheet Projections
Balance Sheet
December 31st (000s USD)'06-'08CAGR 2009 2010 2011 2012
'09-'012Average
'09-'012CAGR 2013 2014 2015
'13-'15Average
'13-'15CAGR
ASSETSCash And Equivalents 17.22% 213,078 221,601 230,466 239,684 226,207 4.00% 249,271 259,242 269,612 259,375 4.00%
Total Cash & ST Investments 17.22% 213,078 221,601 230,466 239,684 226,207 4.00% 249,271 259,242 269,612 259,375 4.00%Accounts Receivable 1.22% 949,285 987,256 1,026,747 1,067,816 1,007,776 4.00% 1,110,529 1,154,950 1,201,148 1,155,543 4.00%Other Receivables 0.00% 22,789 22,789 22,789 22,789 22,789 0.00% 22,789 22,789 22,789 22,789 0.00%
Total Receivables 2.48% 972,074 1,010,045 1,049,536 1,090,605 1,030,565 3.91% 1,133,318 1,177,739 1,223,937 1,178,332 3.92%Inventory 14.33% 550,463 561,473 572,702 584,156 567,199 2.00% 595,839 607,756 619,911 607,836 2.00%Prepaid Exp. -24.95% 7,477 7,776 8,087 8,410 7,937 4.00% 8,747 9,096 9,460 9,101 4.00%
Total Current Assets 7.30% 1,743,092 1,800,895 1,860,790 1,922,856 1,831,908 3.33% 1,987,175 2,053,834 2,122,921 2,054,643 3.36%Net Property, Plant & Equipment 2.20% 725,869 747,645 770,074 793,176 759,191 3.00% 816,972 841,481 866,725 841,726 3.00%
Goodwill -8.97% 160,276 157,071 153,929 150,851 155,532 -2.00% 147,834 144,877 141,979 144,897 -2.00%Other Long-Term assets 32.02% 378,383 393,519 409,259 425,630 401,698 4.00% 442,655 460,361 478,775 460,597 4.00%Total Assets 7.07% 3,007,620 3,099,129 3,194,053 3,292,513 3,148,329 3.06% 3,394,636 3,500,553 3,610,401 3,501,863 3.13%LIABILITIESAccounts Payable 4.60% 1,009,708 1,029,902 1,050,500 1,071,510 1,040,405 2.00% 1,092,941 1,114,799 1,137,095 1,114,945 2.00%Accrued Exp. -16.37% 3,364 3,499 3,639 3,784 3,572 4.00% 3,936 4,093 4,257 4,095 4.00%Short-term Borrowings 242.76% 657,006 676,716 697,018 717,928 687,167 3.00% 739,466 761,650 784,500 761,872 3.00%Curr. Income Taxes Payable 19.85% 50,989 53,029 55,150 57,356 54,131 4.00% 59,650 62,036 64,518 62,068 4.00%Other Current Liabilities 4.31% 14,130 14,696 15,284 15,895 15,001 4.00% 16,531 17,192 17,880 17,201 4.00%
Total Current Liabilities 29.47% 1,735,198 1,777,842 1,821,590 1,866,474 1,800,276 2.46% 1,912,523 1,959,771 2,008,249 1,960,181 2.47%Long-Term Debt -23.51% 446,419 464,276 482,847 502,161 473,926 4.00% 522,247 543,137 564,862 543,415 4.00%Pension & Other Post-Retirment Benefits -12.39% 113,492 118,032 122,753 127,663 120,485 4.00% 132,770 138,080 143,604 138,151 4.00%Def. Tax Liability, Non-Curr. 20.00% 41,419 43,076 44,799 46,591 43,971 4.00% 48,454 50,393 52,408 50,418 4.00%Other Non-Current Liabilities 10.06% 99,511 103,492 107,631 111,937 105,643 4.00% 116,414 121,071 125,914 121,133 4.00%
Total Liabilities 9.00% 2,436,040 2,506,717 2,579,621 2,654,825 2,544,301 2.91% 2,732,409 2,812,452 2,895,037 2,813,299 2.93%Common Stock -1.73% 525,537 516,453 507,525 498,751 512,066 -1.73% 490,130 481,657 473,330 481,706 -1.73%Minority Interest #NUM! 17,110 17,110 17,110 17,110 17,110 0.00% 17,110 17,110 17,110 17,110 0.00%Total Equity -0.17% 571,581 592,412 614,432 637,687 604,028 3.72% 662,227 688,101 715,364 688,564 3.93%Total Liabilities And Equity 7.07% 3,007,620 3,099,129 3,194,053 3,292,513 3,148,329 3.06% 3,394,636 3,500,553 3,610,401 3,501,863 3.13%
Key Assumptions: Most items growing at the rate of revenue (4%), Inventory/Accounts payable (2%), Investment in PPE (3%)
© 2014 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. NDPPS 304443
The KPMG name, logo and “cutting through complexity” are registered trademarks or trademarks of KPMG International.