INCOME STATEMENT 2013 2014 2015 2016 2017

Income before following Items 24,694 31,512 36,584 42,545 92,550

R&D 12,487 14,610 17,094 20,000 39,000
Consumer Advertising Exp 34 38 41 45 50
Good Will impairment - - - - 10,000
Net Income Before tax 12,173 16,864 19,449 22,500 43,500
Tax at 35% 4,261 5,902 6,807 7,875 18,725
Net income after Tax 7,912 10,962 12,642 14,625 24,775

BALANCE SHEET
Net operating assets 66,949 79,000 93,220 110,000 135,000

Cost of capital/Capital charge 11%

Without adjustment
EVA= NOPAT-CoC*Capital 548 10,962 12,642 14,625 24,775
INCOME STATEMENT 2,012 2013 2014
Income before following Items 24,694 31,512
yoy growth 28%
R&D(old values in Yellow) 4,632 12,487 7,554
R&D as % of income 51%
Consumer Advertising Exp 11 34 24

Good Will impairment - -

20,051 23,934
Add:Good Will impairment - -

Net Income Before tax 20,051 12,173 23,934

Tax at 35% 7,018 5,902

Net income after Tax 13,033 18,032

BALANCE SHEET
Net operating assets 66,949 79,000
yoy growth 18%
Asset Added(R&D) 12,487 37,770
Less: Accumulated amortisation 4,632 14,321
Gross Asset R&D 7,855 23,449

Add back Impairment of good will - -

Add Advertising 34 72
Less: Accumulated amortisation 11 24
23 48

74,827 102,497
Cost of capital/Capital charge 11% 11%

Capitalization of Consumer Expense 2013 2014

11.333 11.333
12.667

11 24

PnL Cumulative 34 72
Actual Cumulative 11 35
23 37

Capitalizing R&D Expense 2,012 2013 2014

2,135 2,135 2,135
2,497 2,497
2,922

Cumulated amortisation 2,135 4,632 7,554

Cumulative R&D 10,673 23,160 37,770
Actual 2,135 6,767 14,321
Diff 8,538 16,393 23,449

NOPAT(int info not given) 13,033 18,032

Capital 74,827 102,497
EVA 4,802 6,757
 2015 2016 2017 2018
36,584 42,545 92,550 61,265
16% 16% 118% 20%
14,610 10,973 17,094 14,973 20,000 20,638 39,000 23,616
46% 47% 47% 42%
38 38 41 41 45 45 50 50
11.76% 7.89% 9.76% 11.11%
- - 10,000 -
25,574 27,531 61,866 37,598
- - 10,000 -

16,864 25,574 19,449 27,531 22,500 71,866 53,500 37,598

39% 15% 16%

6,807 7,875 18,725 10,597

18,766 19,656 53,141 15,913

93,220 110,000 135,000 153,164

18% 18% 23% 18%
54,864 74,864 113,864 141,242
25,293 40,266 60,904 84,521
29,571 34,598 52,960 56,721

- - 10,000 -

113 158 208 262

38 41 45 50
75 117 163 213

122,866 144,714 198,122 210,098

11% 11% 11% 11%

2015 2016 2017 2018

11.333
12.667 12.667
13.667 13.667 13.667
15.000 15.000 15.000
16.667 16.667
18.150

38 41 45 50

113 158 208 262

 73 114 160 209
40 44 48 53

2015 2016 2017 2018

2,135 2,135
2,497 2,497 2,497
2,922 2,922 2,922 2,922
3,419 3,419 3,419 3,419
4,000 4,000 4,000
7,800 7,800
5,476

10,973 14,973 20,638 23,616

54,864 74,864 113,864 141,242
25,293 40,266 60,904 84,521
29,571 34,598 52,960 56,721

18,766 19,656 53,141 15,913

122,866 144,714 198,122 210,098
5,251 3,737 31,348 -7,197.60
 2019
73,517 0 0
20%
27,378 27,101 32,032.26 Making R&D changes
17% 17% R&D increase has been 17%
54 55 60
10.00% 10.00% Approx yoy inc in Consumer is 10%
- Add impairment
46,362
- Impairment added

30,276 46,362 35,120

16% 16%
27,378 32,032
-23,616.40 -27,100.85
54 60
-49.82 -54.78
26,510 30,184
12,292
17,892

180,734
18% Add back Advertising expense less accumulated ammortization
173,274
111,622
61,653

322
55
268

242,654
11%

2019

16.667
18.150
19.965
55

322
 264
58

2019

3,419
4,000 4,000
7,800
5,476
6,406 6,406 6,406
27,101
173,274
111,622
61,653

17,892
242,654
-8,800
 2013 2014
EVA (Calculated) 4,802.00 - 6,756.89 -

2017 2018(Estimated) 2019(Estimated)

Old Bank Balance - 291,980.17 52,514.14
Managers Base Pay 300,000.00 300,000.00 300,000.00
Target Bonus 240,000.00 240,000.00 240,000.00
EVA Improvement Goal 2,150.00 2,150.00 2,150.00
EVA Interval 12,000.00 12,000.00 12,000.00
Actual improvement 31,348.02 -7,197.60 -8,800.32

Eva Performance 3.43 0.22 0.09

Calculated Bonus 823,960.35 53,048.10 20,993.53

New Balance 823,960.35 345,028.27 73,507.67
Payout 531,980.17 292,514.14 156,753.83

Actual payout 531,980.17 292,514.14 73,507.67

Ending Balance 291,980.17 52,514.14 -
 2015 2016 2017 2018
5,251.13 - 3,737.28 - 31,348.02 - -7,197.60 -

3,150.68
 2019
-8,800.32 373.73 41% -22% -29%
Estimated EVA
Apprrox -90%
1. Founded in 1945
2. 15 Subsidiaries : Valuation of 2.7 billions USD
3. Finn was CEO for 18 years importance was given to Profits and EPS
4. Old compensation: Half based on operating results and other half was subjective
5. Corporate restructuring is done for implement EVA( challenges for implementation of EVA
s and EPS
ther half was subjective
enges for implementation of EVA)