CopyrightTransworld Auto Parts (A)Harvard Business School Case #110-027Case Software #XLS-460Copyright 2010 President and Fellows of Harvard College. No part of this product may be reproduced, stored in a retrieval system or transmitted in any form or by any meanselectronic, mechanical, photocopying, recording or otherwisewithout the permission of Harvard Business School.

Exhibit 1Exhibit 1 Transworld Auto Parts Financial StatementsAnnual Income Statement (abbreviated) (in $USM except where noted)Dec 08Dec 07Dec 06Dec 05Dec 04Revenue$6,681$7,886$7,993$11,883$13,060Costs of Goods Sold6,3607,4857,47911,49512,678Gross Profit$321$401$514$388$382Gross Profit Margin (%)4.81%5.09%6.43%3.26%2.93%SG&A Expense6787758021,7201,176Operating Income$(357)$(375)$(288)$(1,332)$(793)Interest Expense98157123101103Income Tax Expense00000Net Income$(455)$(531)$(411)$(1,433)$(897)Annual Balance Sheet (in $USM)Dec 08Dec 07Dec 06Dec 05Dec 04Cash$1,626.0$2,030.6$1,539.9$1,405.5$1,326.4Net Receivables692.3805.0871.51,216.61,778.0Inventories247.8346.5364.0375.9622.3Other Current Assets174.3468.3520.1143.5184.1Total Current Assets$2,740.4$3,650.4$3,295.5$3,141.5$3,910.8Net Fixed Assets1,513.41,955.1$2,123.8$2,081.1$3,712.1Other Noncurrent Assets219.8238.0237.3292.6393.4Total Assets$4,473.6$5,843.5$5,656.6$5,515.2$8,016.3Accounts Payable$740.6$1,236.2$1,277.5$1,262.1$1,682.1Short-Term Debt1,887.966.570.0339.5355.6Other Current Liabilities361.2466.9450.1469.7652.4Total Current Liabilities$2,989.7$1,769.6$1,797.6$2,071.3$2,690.1Long-Term Debt45.51,921.51,489.61,056.31,059.1Other Noncurrent Liabilities1,259.31,415.41,701.01,621.23,182.2Total Liabilities$4,294.5$5,106.5$4,988.2$4,748.8$6,931.4Total Equity179.1737.0668.4766.41,084.9Total Liabilities and Equity$4,473.6$5,843.5$5,656.6$5,515.2$8,016.3Source: Casewriters.

Exhibit 1 (continued)Exhibit 1 (continued) Transworld Auto Parts Financial StatementsAnnual Cash Flow Statement ($USM)Dec 08Dec 07Dec 06Dec 05Dec 04Net Operating Cash Flow$(81)$205$197$292$293Net Investing Cash Flow(146)(124)(236)(162)(547)Net Financing Cash Flow(178)410173(51)113Net Change in Cash$(405)$491$134$79$(141)Depreciation & Amortization2913303011,058480Capital Expenditures(206)(263)(261)(410)(579)Cash Dividends Paid00000Source: Casewriters.

Exhibit 3Exhibit 3 TAP Key Customer Segments by Percentage of Sales in Each Geographic Division, December 2008North AmericaEuropeAsiaLow-priced small cars10%5%35%Low-priced midsized cars16%5%30%Low-priced CUV/SUVsa4%5%10%Luxury cars5%35%5%Luxury SUVs12%5%5%Luxury CUVs8%5%5%Luxury sport5%30%5%Moderately priced cars, SUVs, and CUVs20%3%5%Trucks (noncommercial)20%7%0%Total100%100%100%Total Sales (%)45%30%25%Source: Casewriters.a Crossover utility vehicles (CUVs) are built on car frames and have little or no off-road capability, SUVs (sports utility vehicles) are built on truck frames and typically have off-road capability.

Exhibit 4Exhibit 4 TAP Selected Financial Data, by Customer Division (in $USM), FYE 2008Product CategoryEconomy Small to Midsized Cars/SUVs/CUVsModerately Priced Cars/SUVs/CUVsLuxury (all segments)Truck (all segments)TotalRevenue$2,255$745$2,939$742$6,681COGS2,1008992,5608016,360SGA135244171128678OperatingIncome$20$(398)$208$(187)$(357)Source: Casewriters.

Exhibit 5Exhibit 5 Global Light Vehicle Production by Region (in thousands of vehicles)200320042005200620072008North America15,87415,77315,75315,25215,02112,607South America1,9222,5172,8163,0343,4923,688European Union17,47217,76517,79318,05818,99217,710Other Europe1,9092,3552,2592,5282,8403,107Asia & Oceania20,36322,58823,8626,17828,33528,575Africa379401491531493548Total57,91861,39962,97365,5869,17366,234Source: Compiled from data provided by the International Organization of Motor Vehicle Manufacturers and Efraim Levy, "Autos & Auto Parts," Standard & Poor's Industry Surveys, June 25, 2009.