“CAFÉS MONTE BLAN

BUILDING A PROFIT PL
a. PROFIT WHEEL
Estimate The Level of Sales
In this stage Cafes Monte Bianco has set up sales estimation as below:

SALES PLAN 2001 FOR PRIVATE BRAND ONLY

MONTH SALE PRIVATE SALES (%)

JANUARY 426000 7.1

FEBRUARY 540000 9

MARCH 708000 11.8

APRIL 450000 7.5
MAY 486000 8.1
JUNE 300000 5
JULY 252000 4.2
AUGUST 198000 3.3

SEPTEMBER 408000 6.8

OCTOBER 786000 13.1

NOVEMBER 726000 12.1

DECEMBER 720000 12

TOTAL 6000000 100

Forcasting Operating Expenses

OPERATING EXPENSES 2000 VS 2001 (PRIVATE BRAND ON

2000
COST OF GOOD SOLD 33233867
MARKETING EPENSES 4155980
R&D EXPENSES 3328130
SELLING EXPENSES 3574710
ADMINISTRATIVE EXPENSES 4752000
INTEREST EXPENSE 3825000
TOTAL OTHER OPERATING COST 19635820
TOTAL OPERATING EXPENSES 52869687

The PROFIT WHEEL :

INCOME STATEMENT FOR YEAR END DECEMBER 2000 vs 2001

(PRIVATE BRAND ONLY)
2000 2001
Private Brands 9934848 52800000
Premium Brands 46177560
Revenue 56112408 52800000
Cost of Goods Sold 33233867 42918000
Gross Margin 22878541 9882000

Marketing Expenses 4155980 0

R&D Expenses 3328130 832033

Selling Expenses 3574710 1251149
Administrative Expenses 4752000 2376000
Internet Expenses 3825000 3825000
Profit 3242721 1597818
Taxes (40%) 1297088 639127
Net Profit 1945633 958691
MONTE BLANCO:
A PROFIT PLAN”

D ONLY

SALES REVENUE

3748800000

4752000000

6230400000
3960000000
4276800000
2640000000
2217600000
1742400000

3590400000

6916800000

6388800000

6336000000

52800000000

0 VS 2001 (PRIVATE BRAND ONLY)

2001 CHANGES %CHANGE
42918000 9684133 29.13935053059
 0 -4155980 -100
832033 -2496097 -74.9999849765
1251149 -2323561 -64.9999860129
2376000 -2376000 -50
3825000 0 0
8284182 -11351638 -57.8108680972
51202182 -1667505 -3.15399067901
INCOME STATEMENT FOR YEAR END DECEMBER 2000 vs 2001 (PRIVATE BR
ONLY)
60000000
50000000
40000000
BER 2000 vs 2001 30000000
20000000
10000000
Change 0
ds ds e d in s es es es es t )
42865152 an an nu ol rg se ns ns ns ns ofi 0%
r r v e S a e n e e e e Pr (4
B B Re ds M p p p p p s t
-46177560 a te um oo ss Ex Ex Ex Ex t Ex xe Ne
v i G r o g D g e e Ta
Pr
i
em of G eti
n
R& lli
n tiv er
n
-3312408 Pr st rk Se ra nt
Co a i st I
M in
9684133 d m
A
-12996541
2000 2001
-4155980

-2496097
-2323561
-2376000
0
-1644903
-657961
-986942
vs 2001 (PRIVATE BRAND

es es ofi
t ) fit
ns ns Pr 0% ro
e e (4 t P
xp xp s
Ne
tE xe
rn
e Ta
te
In
b. CASH WHEEL
Estimating Net Cash Flows From Company Operations

Cash from operating activities

Profit After Tax 958691
Tax Payment 639128
Interest payment 3825000
Add : Depreciation & other non cash expenses 2993700
EBITDA 8416519
Changes in working capital
Decrease in account receivable 553036
Decrese in Inventory 4056363
Decrese in account payable -487331
4122068
Cash flow from operating activities 12538587

Cash from financing activities

Pay back debt 0
Additional borrowing required 0
Tax payment -639,128
lnterest Payment -3,825,000

CASH WHEEL

CASH PLAN 2001, PREPARED USING EBITDA

Cash from operation activities
Profit after Tax 958691
Tax Payment 639128
Interest Payment 3825000

Add: Depreciation & other non-cash expenses 2993700

EBITDA 8416519

Changes in Working Capital

Decrease in account receivables 553036
Decrease in Inventory 4056363
 Decrease in account payable -487331
4122068
Cash Flow From Operating Activities 12538587

Cash From Investment activities

Investment in new assets 0

Cash from financing activities

Pay back debt 0
Additional borrowing required 0
Tax payment -639128
Interest payment -3825000
-4464128
Total Cash flow 8074459
Cash at the beginning of the year 1121450
Cash at the end of year 9195909
c. ROE WHEEL

BALANCE SHEET AS AT DECEMBER 2000 & 2001(In thousands of Italian Liras)

Assets 2000
Cash 1121450
Raw material Inventoery 2907963
Finished goods(174000 kg) 1148400
Accounts Recievables 9368467
Property, plant & Equipment 42374000
Depriciation -12267080 30106920
44653200

Liabilities and Shareholders Equity 2000

Account Payable 487331
Credit Line 25000000
Long Term Debt 10000000
Shareholder's Equity 9165869
44653200

Assuming that the vacant land cost is 13000000

The next step is to calculate the accounting variables in ROE Wheel following that our financial data report shows th
calculation is as follows:

Variable Summary Value by Year 2000

Net Income/
ROE shareholder’s 0.212269344019645
equity
Year 2000 =
1945632.6/916586
9

Year 2001 =
958690.8/9165869

ROCE Net Income/ 0.06

Capital Employed
Year 2000 =
1945632.6/341658
69
 Year 2001 =
958690.8/3416586
9

Sales/ (Current
Working Capital Turn Over assets- current 3.99
liabilities)

Year 2000=
56112408
/(14546280-
487331)

Year 2001 =
528000000
/(18011340-
1318691)

Sales / Property,
Fixed Asset Turn Over plant & Equipment 1.32

Year 2000 =
56112408/
42374000

Year 2001=
528000000/
42374000
thousands of Italian Liras)
2001
9195909
0
0
8815431

27473220
45484560

2001
131691
25000000
10000000
9165869
45484560

that our financial data report shows the Variables

Value by Year 2001

0.104593574269936

0.03
3.16

1.25