Coca-Cola Assumptions Hist. Hist.
2009 2010
INCOME STATEMENT
Revenues - $ $ 30,900,000 $ 35,119,000 COGS excl deprec - % sales 33% 33%Deprec - % of beg PP&E 11% 8%SG&A- Increase as % Sales growth 42% 37%Amortization expense - $ $ 63,000 $ 102,000 Restructuring charge-$ $ 51,000 $ 59,000 Gain(Loss) on sale-$ $ 313,000 $ 819,000 Effective tax rate 24% 25%Interest income-$ $ 249,000 $ 317,000 Interest expense-$ $ 355,000 $ 733,000 Dividens-$ $ (3,800,000) $ (4,068,000)
SHAREHOLDER INFORMATIONBasic WASO 2,314,000 2,308,000 Diluted WASO 2,329,000 2,333,000 Dividends per share - $ $ 1.64 $ 1.76
BALANCE SHEETCash and Cash Equivalents % SALES 23% 24%Short Term Investments -$ $ 2,192,000 $ 2,820,000 Net receivable - % Sales 12% 13%Inventories - % COGS + depreciation 21% 21% other current assets - % sales 7% 9%PP&E % SALES 31% 42%Goodwill - $ 4,224,000.00 11,665,000.00 Long term Investments - $ $ 6,755,000 $ 7,585,000 Capital expenditures - $ $ (1,993,000) $ (2,215,000)Other long-term assets - % Sales 6% 6%Additions to Intangible assets $ 6,640,000 Accounts payable - % COGS 69% 79%short/current long term debt - % COGS 67% 81%Long term debt -$ $ 5,059,000 $ 14,041,000 Other liabilities-$ $ 2,965,000 $ 4,794,000 Deferred Long Term Liability Changes-$ $ 1,580,000 $ 4,261,000 Minority Interest-$ $ 547,000 $ 314,000 Common Stock $ 880,000 $ 880,000 Retained Earnings $ 41,537,000 $ 49,278,000 Treasury Stock $ (25,398,000) $ (27,762,000)
Capital Surplus $ 8,537,000 $ 10,057,000 Other Stockholder Equity $ (757,000.00) $ (1,450,000)
Coca-Cola Hist. Proj Proj Proj
2011 2012 2013 2014
$ 46,542,000 $ 50,963,490 $ 56,314,656 $ 62,509,269 36% 36% 39% 40%11% 11% 10% 10%13% 35% 34% 34%
$ 192,000 $ 192,000 $ 192,000 $ 192,000 $ 52,000 $ 52,000 $ 52,000 $ 52,000 $ 732,000 $ 732,000 $ 732,000 $ 732,000
24% 24% 24% 24% $ 483,000 $ 483,000 $ 483,000 $ 483,000 $ 417,000 $ 417,000 $ 417,000 $ 417,000 $ (4,300,000) $ (4,300,000) $ (4,300,000) $ (4,300,000)
2,284,000 2,284,000 2,284,000 2,284,000 2,323,000 2,323,000 2,323,000 2,323,000 $ 1.88 $ 1.88 $ 1.88 $ 1.88
28% 29% 32% 33% $ 1,232,000 1,232,000 1,232,000 1,232,000
11% 13% 14% 14%17% 19% 19% 19%
7% 8% 8% 8%32% 29% 28% 27%
12,219,000.00 12,219,000.00 12,219,000.00 12,219,000.00 $ 8,374,000 $ 8,374,000 $ 8,374,000 $ 8,374,000 $ (2,920,000) $ (2,920,000) $ (2,920,000) $ (2,920,000)
8% 9% 10% 11% $ 206,000 $ - $ - $ -
57% 68% 68% 68%90% 0% 0% 0%
$ 13,656,000 $ 13,656,000 $ 13,656,000 $ 13,656,000 $ 5,420,000 $ 5,420,000 $ 5,420,000 $ 5,420,000 $ 4,694,000 $ 4,694,000 $ 4,694,000 $ 4,694,000 $ 286,000 $ 286,000 $ 286,000 $ 286,000 $ 880,000 $ 880,000 $ 880,000 $ 880,000 $ 53,550,000 $ 62,295,526 $ 71,402,180 $ 81,075,323 $ (31,304,000) $ (31,304,000) $ (31,304,000) $ (31,304,000)
$ 11,212,000 $ 11,212,000 $ 11,212,000 $ 11,212,000 $ (2,703,000) $ (2,703,000) $ (2,703,000) $ (2,703,000)
$ - $ - $ -
Coca-Cola Proj Proj Proj Proj
2015 2016 2017 2018
$ 69,697,835 $ 77,852,481 $ 87,973,304 $ 100,729,433 41% 42% 43% 44%10% 9% 10% 12%33% 33% 32% 31%
$ 192,000 $ 192,000 $ 192,000 $ 192,000 $ 52,000 $ 52,000 $ 52,000 $ 52,000 $ 732,000 $ 732,000 $ 732,000 $ 732,000
24% 24% 24% 24% $ 483,000 $ 483,000 $ 483,000 $ 483,000 $ 417,000 $ 417,000 $ 417,000 $ 417,000 $ (4,300,000) $ (4,300,000) $ (4,300,000) $ (4,300,000)
2,284,000 2,284,000 2,284,000 2,284,000 2,323,000 2,323,000 2,323,000 2,323,000 $ 1.88 $ 1.88 $ 1.88 $ 1.88
34% 35% 36% 38%1,232,000 1,232,000 1,232,000 1,232,000
15% 16% 15% 17%19% 19% 19% 19%
8% 8% 8% 8%27% 26% 27% 30%
12,219,000.00 12,219,000.00 12,219,000.00 12,219,000.00 $ 8,374,000 $ 8,374,000 $ 8,374,000 $ 8,374,000 $ (2,920,000) $ (2,920,000) $ (2,920,000) $ (2,920,000)
12% 13% 13% 14% $ - $ - $ - $ -
68% 68% 68% 68%0% 0% 0% 0%
$ 13,656,000 $ 13,656,000 $ 13,656,000 $ 13,656,000 $ 5,420,000 $ 5,420,000 $ 5,420,000 $ 5,420,000 $ 4,694,000 $ 4,694,000 $ 4,694,000 $ 4,694,000 $ 286,000 $ 286,000 $ 286,000 $ 286,000 $ 880,000 $ 880,000 $ 880,000 $ 880,000 $ 91,961,249 $ 104,027,435 $ 117,465,385 $ 132,413,268 $ (31,304,000) $ (31,304,000) $ (31,304,000) $ (31,304,000)
$ 11,212,000 $ 11,212,000 $ 11,212,000 $ 11,212,000 $ (2,703,000) $ (2,703,000) $ (2,703,000) $ (2,703,000) $ - $ - $ - $ -
Coca-Cola Proj Proj Proj
2019 2020 2021
$ 115,133,742 $ 131,252,466 $ 147,790,276 45% 46% 47%11% 11% 13%30% 31% 32%
$ 192,000 $ 192,000 $ 192,000 $ 52,000 $ 52,000 $ 52,000 $ 732,000 $ 732,000 $ 732,000
24% 24% 24% $ 483,000 $ 483,000 $ 483,000 $ 417,000 $ 417,000 $ 417,000 $ (4,300,000) $ (4,300,000) $ (4,300,000)
2,284,000 2,284,000 2,284,000 2,323,000 2,323,000 2,323,000 $ 1.88 $ 1.88 $ 1.88
40% 43% 4100%1,232,000 1,232,000 1,232,000
16% 17% 15%19% 19% 19%
8% 8% 8%31% 30% 32%
12,219,000.00 12,219,000.00 12,219,000.00 $ 8,374,000 $ 8,374,000 $ 8,374,000 $ (2,920,000) $ (2,920,000) $ (2,920,000)
15% 16% 17% $ - $ - $ -
68% 68% 68%0% 0% 0%
$ 13,656,000 $ 13,656,000 $ 13,656,000 $ 5,420,000 $ 5,420,000 $ 5,420,000 $ 4,694,000 $ 4,694,000 $ 4,694,000 $ 286,000 $ 286,000 $ 286,000 $ 880,000 $ 880,000 $ 880,000 $ 150,414,809 $ 169,386,062 $ 188,555,887 $ (31,304,000) $ (31,304,000) $ (31,304,000)
$ 11,212,000 $ 11,212,000 $ 11,212,000 $ (2,703,000) $ (2,703,000) $ (2,703,000) $ - $ - $ -
Coca-Cola Assumptions Hist. Hist.
2008 2009
Global vs USApproach 2: Global vs US
Global Sales analysisRevenues - Outside US 22,979,000
growth rateRevenues - US 8,011,000
growth rateNon US sales - % DSDTotal revenues - approx 30,990,000
implied growth rate
Revenue scenariosSelect a revenue growth scenario
1 2 3 4
Hist.
2008
Revenue growth rate assumptionRevenue - $
Coca-Cola Hist. Hist. Proj Proj Proj
2010 2011 2012 2013 2014
24,490,000 27,843,000 32,019,450 38,423,340 48,029,175 6.6% 13.7% 15.0% 20.0% 25.0%
10,629,000 18,699,000 30,853,350 49,365,360 74,048,040 32.7% 75.9% 65.0% 60.0% 50.0%
35,119,000 46,542,000 62,872,800 87,788,700 122,077,21513.32% 32.53%
Revenue scenariosSelect a revenue growth scenario 4
Base case 13.5% 14.0%Upside case = High global growth 13.5% 14.0%Downside case - Limited global growth 13.0% 12.9%Extreme - Health Trends Slow Growth 12.0% 11.5%
Hist. Hist. Hist. Proj Proj
2009 2010 2011 2012 2013
12.0% 11.5%30,900,000 35,119,000 46,542,000 52,127,040 58,121,650
Coca-Cola Proj Proj Proj Proj Proj
2015 2016 2017 2018 2019
62,918,219 86,197,960 124,987,043 191,230,175 304,055,978 31.0% 37.0% 45.0% 53.0% 59.0%
103,667,256 134,767,433 168,459,291 208,889,521 250,667,425 40.0% 30.0% 25.0% 24.0% 20.0%
166,585,475 220,965,393 293,446,334 400,119,696 554,723,403
14.2% 14.5% 14.6% 14.8% 15.0%14.6% 15.0% 15.5% 16.0% 16.5%12.5% 12.3% 12.0% 11.0% 10.0%11.4% 11.0% 10.0% 9.0% 8.0%
Proj Proj Proj Proj Proj
2014 2015 2016 2017 2018
11.4% 11.0% 10.0% 9.0% 8.0%64,747,518 71,869,745 79,056,719 86,171,824 93,065,570
Coca-Cola Proj Proj
2020 2021
492,570,685 788,113,096 62.0% 60.0%
295,787,562 340,155,696 18.0% 15.0%
788,358,246 1,128,268,792
15.3% 15.4% 15.0%17.0% 17.5% 18.0%
9.6% 9.5% 9.4%7.0% 6.0% 6.0%
Proj Proj Proj
2019 2020 2021
7.0% 6.0% 6.0%99,580,160 105,554,969 111,888,267
Coca-ColaBalance Sheet Hist. 12/31/2009 Hist. 12/31/2010Hist. 12/31/2011 Proj 2012Current Assets
Cash and Cash Equivalents $ 7,021,000 $ 8,517,000 12,803,000 17,192,364 Short Term Investments $ 2,192,000 $ 2,820,000 $ 1,232,000 - Net Receivables $ 3,758,000 $ 4,430,000 $ 4,920,000 6,625,254 Inventory $ 2,354,000 $ 2,650,000 $ 3,092,000 5,129,193 Other Current Assets $ 2,226,000 $ 3,162,000 $ 3,450,000 4,077,079
Total Current Assets $ 17,551,000 $ 21,579,000 $ 25,497,000 $ 33,023,889
Long term Investments $ 6,755,000 $ 7,585,000 $ 8,374,000 8,374,000 Property Plant and Equipment $ 9,561,000 $ 14,727,000 $ 14,939,000 16,215,710 Goodwill $ 4,224,000 $ 11,665,000 $ 12,219,000 12,219,000 Intangible Assets $ 8,604,000 $ 15,244,000 $ 15,450,000 15,258,000 Other Assets $ 1,976,000 $ 2,121,000 $ 3,495,000 4,077,079
Total Assets $ 48,671,000 $ 72,921,000 $ 79,974,000 $ 89,167,678
Liabilities
Current Liabilities
Accounts Payable $ 6,921,000 $ 9,132,000 $ 9,371,000 12,475,862 Short/Current Long Term Debt $ 6,800,000 $ 9,376,000 $ 14,912,000 $ 14,912,000
Total Current Liabilities $ 13,721,000 $ 18,508,000 $ 24,283,000 $ 27,387,862
Long Term Debt $ 5,059,000 $ 14,041,000 $ 13,656,000 13,656,000 Other Liabilities $ 2,965,000 $ 4,794,000 $ 5,420,000 5,420,000 Deferred Long Term Liability Changes $ 1,580,000 $ 4,261,000 $ 4,694,000 4,694,000 Minority Interest $ 547,000 $ 314,000 $ 286,000 286,000
Total Liabilities $ 23,872,000 $ 41,918,000 $ 48,339,000 $ 51,443,862
Stockholder's Equity
Common Stock $ 880,000 $ 880,000 $ 880,000 880,000 Retained Earnings $ 41,537,000 $ 49,278,000 $ 53,550,000 62,295,526 Treasury Stock $ (25,398,000) $ (27,762,000) $ (31,304,000) (31,304,000)Capital Surplus $ 8,537,000 $ 10,057,000 $ 11,212,000 11,212,000 Other Stockholder Equity $ (757,000) $ (1,450,000) $ (2,703,000) (2,703,000)
Total Stockholder Equity $ 24,799,000 $ 31,003,000 $ 31,635,000 $ 37,723,816
Total Laibilities + Stockholder Equity $ 48,671,000 $ 72,921,000 $ 79,974,000 $ 89,167,678
balance check - - - -
Proj 2013 Proj 2014 Proj 2015 Proj 2016 Proj 2017 Proj 2018
22,192,665 27,842,495 34,217,038 41,612,877 52,041,767 61,867,049 - - - - - - 7,884,052 8,751,298 10,454,675 12,456,397 13,195,996 17,124,004 5,794,487 6,502,118 7,297,734 7,988,729 9,275,254 11,026,243 4,505,173 5,000,741 5,575,827 6,228,198 7,037,864 8,058,355
$ 40,376,376 $ 48,096,652 $ 57,545,274 $ 68,286,202 $ 81,550,881 $ 98,075,650
8,374,000 8,374,000 8,374,000 8,374,000 8,374,000 8,374,000 17,514,139 18,682,725 19,734,453 20,878,352 21,710,517 22,025,255 12,219,000 12,219,000 12,219,000 12,219,000 12,219,000 12,219,000 15,066,000 14,874,000 14,682,000 14,490,000 14,298,000 14,106,000 4,505,173 5,000,741 5,575,827 6,228,198 7,037,864 8,058,355
$ 98,054,687 $ 107,247,119 $ 118,130,553 $ 130,475,752 $ 145,190,262 $ 162,858,259
14,934,647 17,002,521 19,431,756 22,234,669 25,723,394 30,138,246 $ 14,912,000 $ 14,912,000 $ 14,912,000 $ 14,912,000 $ 14,912,000 $ 14,912,000
$ 29,846,647 $ 31,914,521 $ 34,343,756 $ 37,146,669 $ 40,635,394 $ 45,050,246
13,656,000 13,656,000 13,656,000 13,656,000 13,656,000 13,656,000 5,420,000 5,420,000 5,420,000 5,420,000 5,420,000 5,420,000 4,694,000 4,694,000 4,694,000 4,694,000 4,694,000 4,694,000 286,000 286,000 286,000 286,000 286,000 286,000
$ 53,902,647 $ 55,970,521 $ 58,399,756 $ 61,202,669 $ 64,691,394 $ 69,106,246
880,000 880,000 880,000 880,000 880,000 880,000 71,402,180 81,075,323 91,961,249 104,027,435 117,465,385 132,413,268 (31,304,000) (31,304,000) (31,304,000) (31,304,000) (31,304,000) (31,304,000) 11,212,000 11,212,000 11,212,000 11,212,000 11,212,000 11,212,000 (2,703,000) (2,703,000) (2,703,000) (2,703,000) (2,703,000) (2,703,000)
$ 44,152,041 $ 51,276,598 $ 59,730,797 $ 69,273,083 $ 80,498,868 $ 93,752,013
$ 98,054,687 $ 107,247,119 $ 118,130,553 $ 130,475,752 $ 145,190,262 $ 162,858,259
- - - - - -
Proj 2019 Proj 2020 Proj 2021
77,936,270 92,506,573 111,771,775 - - - 18,421,399 22,312,919 22,168,541 12,266,713 13,948,938 16,070,802 9,210,699 10,500,197 11,823,222
$ 117,835,081 $ 139,268,628 $ 161,834,341
8,374,000 8,374,000 8,374,000 22,522,477 22,965,004 22,899,554 12,219,000 12,219,000 12,219,000 13,914,000 13,722,000 13,530,000 9,210,699 10,500,197 11,823,222
$ 184,075,257 $ 207,048,829 $ 230,680,116
35,230,925 41,055,771 46,831,783 $ 14,912,000 $ 14,912,000 $ 14,912,000
$ 50,142,925 $ 55,967,771 $ 61,743,783
13,656,000 13,656,000 13,656,000 5,420,000 5,420,000 5,420,000 4,694,000 4,694,000 4,694,000 286,000 286,000 286,000
$ 74,198,925 $ 80,023,771 $ 85,799,783
880,000 880,000 880,000 150,414,809 169,386,062 188,555,887 (31,304,000) (31,304,000) (31,304,000) 11,212,000 11,212,000 11,212,000 (2,703,000) (2,703,000) (2,703,000)
$ 109,876,332 $ 127,025,058 $ 144,880,334
$ 184,075,257 $ 207,048,829 $ 230,680,116
- - -
Coca-Cola
Income Statement12/31/2011 12/31/2010 12/31/2009
Total Revenue $ 46,542,000 $ 35,119,000 $ 30,900,000
Cost of Revenue $ 18,216,000 $ 12,693,000 $ 11,088,000
Gross Profit $ 28,326,000 $ 22,426,000 $ 19,812,000
Gross profit margin 61% 64% 64%
Selling General and Administrative $ 17,440,000 $ 13,158,000 $ 11,358,000
Gain/(loss) on sale $ 732,000 $ 819,000 $ 313,000
Operating profit $ 10,154,000 $ 8,449,000 $ 8,141,000
Operating Margin 22% 24% 26%
Intrest income $ 483,000 $ 317,000 $ 249,000
Interest Expense $ 417,000 $ 733,000 $ 355,000
equity income (loss) $ 690,000 $ 1,025,000 $ 781,000
other income (loss) $ 529,000 $ 5,185,000 $ 40,000
Income Before income Tax $ 11,439,000 $ 14,243,000 $ 8,856,000
Income Tax Expense $ 2,805,000 $ 2,384,000 $ 2,040,000
Consolidated Net Income $ 8,634,000 $ 11,859,000 $ 6,816,000
Less net income attributable to non controlling intrests $ 62,000 $ 50,000 $ 82,000
Net Income $ 8,572,000 $ 11,809,000 $ 6,734,000
Net margin 18% 34% 22%
share holder/other information
Depreciation espense $ 1,654,000 $ 1,188,000 $ 1,005,000
amortization expense $ 192,000 $ 102,000 $ 63,000
Net earnings per share
Basic $ 3.75 $ 5.12 $ 2.95
Diluted $ 3.69 $ 5.06 $ 2.93
Weighted average common shares outstanding Diluted $ 2,323,000 $ 2,333,000 $ 2,329,000
Cash Dividens Declared per common share $ 1.88 $ 1.76 $ 1.64
Restructuring charge $ 52,000 $ 59,000 $ 51,000
Coca-Cola "Cleaned"
Income StatementHist. 12/31/2009 Hist. 12/31/2010 Hist. 12/31/2011
Total Revenue $ 30,900,000 $ 35,119,000 $ 46,542,000
Cost of Revenue (excl deprc) $ 10,083,000 $ 11,505,000 $ 16,562,000
Gross Profit $ 20,817,000 $ 23,614,000 $ 29,980,000
Gross Profit Margin 67% 67% 64%
Selling General and Administrative cleaned $ 11,295,000 $ 13,056,000 $ 17,248,000
EBITA $ 9,522,000 $ 10,558,000 $ 12,732,000
Depreciation espense $ 1,005,000 $ 1,188,000 $ 1,654,000
amortization expense $ 63,000 $ 102,000 $ 192,000
EBITA-core, reccuring $ 8,454,000 $ 9,268,000 $ 10,886,000
Core, recurring EBIT margin 27% 26% 23%
Restructuring charge $ 51,000 $ 59,000 $ 52,000
Gain/(loss) on sale $ 313,000 $ 819,000 $ 732,000
Operating Profit as reported $ 8,716,000 $ 10,028,000 $ 11,566,000
Interest income $ 249,000 $ 317,000 $ 483,000
Interest expense $ 355,000 $ 733,000 $ 417,000
Earnings before tax $ 8,610,000 $ 9,612,000 $ 11,632,000
Income tax (provision) $ 2,040,000 $ 2,384,000 $ 2,805,000
Net earnings $ 6,570,000 $ 7,228,000 $ 8,827,000
Net Profit Margin 21% 21% 19%
share holder/other information
Depreciation espense $ 1,005,000 $ 1,188,000 $ 1,654,000
amortization expense $ 63,000 $ 102,000 $ 192,000
Net earnings per share
Basic $ 2.95 $ 5.12 $ 3.75
Diluted $ 2.93 $ 5.06 $ 3.69
Weighted average common shares outstanding Diluted $ 2,329,000 $ 2,333,000 $ 2,323,000
Cash Dividens Declared per common share $ 1.64 $ 1.76 $ 1.88
dividens $ (3,800,000) $ (4,068,000) $ (4,300,000)
Proj 2012 Proj 2013 Proj 2014 Proj 2015
50,963,490 56,314,656 62,509,269 69,697,835 18,346,856 21,962,716 25,003,707 28,576,112
32,616,634 34,351,940 37,505,561 41,121,722
64% 61% 60% 59%
17,837,222 19,146,983 21,253,151 23,000,285
14,779,412 15,204,957 16,252,410 18,121,437
1,643,290 1,621,571 1,751,414 1,868,273 192,000 192,000 192,000 192,000 12,944,122 13,391,386 14,308,996 16,061,164
25% 24% 23% 23%
52,000 52,000 52,000 52,000 732,000 732,000 732,000 732,000 13,624,122 14,071,386 14,988,996 16,741,164
483,000 483,000 483,000 483,000 417,000 417,000 417,000 417,000 13,690,122 14,137,386 15,054,996 16,807,164
3,301,306 3,409,162 3,630,439 4,052,966 10,388,816 10,728,225 11,424,557 12,754,199
20% 19% 18% 18%
1,643,290 1,621,571 1,751,414 1,868,273 192,000 192,000 192,000 192,000
2,323,000 2,323,000 2,323,000 2,323,000 $ 1.88 $ 1.88 $ 1.88 $ 1.88 (4,300,000) (4,300,000) (4,300,000) (4,300,000)
Proj 2016 Proj 2017 Proj 2018 Proj 2019 Proj 2020
77,852,481 87,973,304 100,729,433 115,133,742 131,252,466 32,698,042 37,828,521 44,320,950 51,810,184 60,376,134
45,154,439 50,144,783 56,408,482 63,323,558 70,876,331
58% 57% 56% 55% 54%
25,691,319 28,151,457 31,226,124 34,540,123 40,688,264
19,463,120 21,993,326 25,182,358 28,783,435 30,188,067
1,776,101 2,087,835 2,605,262 2,422,778 2,477,472 192,000 192,000 192,000 192,000 192,000 17,495,020 19,713,491 22,385,096 26,168,657 27,518,595
22% 22% 22% 23% 21%
52,000 52,000 52,000 52,000 52,000 732,000 732,000 732,000 732,000 732,000 18,175,020 20,393,491 23,065,096 26,848,657 28,198,595
483,000 483,000 483,000 483,000 483,000 417,000 417,000 417,000 417,000 417,000 18,241,020 20,459,491 23,131,096 26,914,657 28,264,595
4,398,733 4,933,706 5,577,951 6,490,338 6,815,869 13,842,287 15,525,784 17,553,145 20,424,319 21,448,726
18% 18% 17% 18% 16%
1,776,101 2,087,835 2,605,262 2,422,778 2,477,472 192,000 192,000 192,000 192,000 192,000
2,323,000 2,323,000 2,323,000 2,323,000 2,323,000 $ 1.88 $ 1.88 $ 1.88 $ 1.88 $ 1.88 (4,300,000) (4,300,000) (4,300,000) (4,300,000) (4,300,000)
Proj 2021
147,790,276 68,870,269
78,920,007
53%
47,292,888
31,627,119
2,985,451 192,000 28,449,669
19%
52,000 732,000 29,129,669
483,000 417,000 29,195,669
7,040,393 22,155,276
15%
2,985,451 192,000
2,323,000 $ 1.88 (4,300,000)
Coca-ColaCash Flow Statement Hist. 12/31/2009 Hist. 12/31/2010 Hist. 12/31/2011
Net Income
Depreciation
Amortization
Operating Activities
Change in Accounts Recievable
Change in Inventories
Change in Other Currents Assets
Change in Accounts Payable
Change in Other Current Liabilities
Change in Other Longterm Investments
Change in Short Term Investments
Other long term assets
Total Cash Flow from Operating Activities $ - $ - $ -
Investing Activities
Capital Expenditures $ (1,993,000) $ (2,215,000) $ (2,920,000)
Investments $ (2,152,000) $ (679,000) $ 803,000
GoodwillChange Intangible AssetsOther Liabilities
Total Cash Flows From Investing Activities $ (4,145,000) $ (2,894,000) $ (2,117,000)
Financing Activities
Common Stock
Long-term Debt
Other Liabilities
Dividends Paid
Purchasing of Treasury
Total Cash Flows from Financing Activities $ - $ - $ -
Effect of Exchange Rate Changes
Change in Cash
balance at beginning of yearChange in Cash balance at end of year 12,803,000
Coca-ColaProj 2012 Proj 2013 Proj 2014 Proj 2015 Proj 2016 Proj 2017
10,388,816 10,728,225 11,424,557 12,754,199 13,842,287 15,525,784 1,643,290 1,621,571 1,751,414 1,868,273 1,776,101 2,087,835 192,000 192,000 192,000 192,000 192,000 192,000
(1,705,254) (1,258,798) (867,246) (1,703,378) (2,001,722) (739,599) (2,037,193) (665,294) (707,631) (795,616) (690,995) (1,286,525) (627,079) (428,093) (495,569) (575,085) (652,372) (809,666) 3,104,862 2,458,785 2,067,874 2,429,235 2,802,912 3,488,725 - - - - - - - - - - - - $ 1,232,000 $ - $ - $ - $ - $ - (582,079) (428,093) (495,569) (575,085) (652,372) (809,666) $ 11,609,364 $ 12,220,301 $ 12,869,830 $ 13,594,543 $ 14,615,840 $ 17,648,889
(2,920,000) (2,920,000) (2,920,000) (2,920,000) (2,920,000) (2,920,000)0 0 0 0 0 00 0 0 0 0 00 0 0 0 0 0
- - - - - -
$ (2,920,000) $ (2,920,000) $ (2,920,000) $ (2,920,000) $ (2,920,000) $ (2,920,000)
0 0 0 0 0 0 - - - - - - - - - - - - (4,300,000) (4,300,000) (4,300,000) (4,300,000) (4,300,000) (4,300,000) - - - - - -
$ (4,300,000) $ (4,300,000) $ (4,300,000) $ (4,300,000) $ (4,300,000) $ (4,300,000)
$ 4,389,364 $ 5,000,301 $ 5,649,830 $ 6,374,543 $ 7,395,840 $ 10,428,889
12,803,000 17,192,364 22,192,665 27,842,495 34,217,038 41,612,877 $ 4,389,364 $ 5,000,301 $ 5,649,830 $ 6,374,543 $ 7,395,840 $ 10,428,889 17,192,364 22,192,665 27,842,495 34,217,038 41,612,877 52,041,767
Coca-ColaProj 2018 Proj 2019 Proj 2020 Proj 2021
17,553,145 20,424,319 21,448,726 22,155,276 2,605,262 2,422,778 2,477,472 2,985,451 192,000 192,000 192,000 192,000
(3,928,008) (1,297,395) (3,891,520) 144,378 (1,750,988) (1,240,470) (1,682,225) (2,121,864) (1,020,490) (1,152,345) (1,289,498) (1,323,025) 4,414,852 5,092,679 5,824,846 5,776,012 - - - - - - - - $ - $ - $ - $ - (1,020,490) (1,152,345) (1,289,498) (1,323,025) $ 17,045,282 $ 23,289,221 $ 21,790,303 $ 26,485,202
(2,920,000) (2,920,000) (2,920,000) (2,920,000)0 0 0 00 0 0 00 0 0 0
- - - -
$ (2,920,000) $ (2,920,000) $ (2,920,000) $ (2,920,000)
0 0 0 0 - - - - - - - - (4,300,000) (4,300,000) (4,300,000) (4,300,000) - - - -
$ (4,300,000) $ (4,300,000) $ (4,300,000) $ (4,300,000)
$ 9,825,282 $ 16,069,221 $ 14,570,303 $ 19,265,202
52,041,767 61,867,049 77,936,270 92,506,573 $ 9,825,282 $ 16,069,221 $ 14,570,303 $ 19,265,202 61,867,049 77,936,270 92,506,573 111,771,775
Coca-Cola Corp
Measures 12/31/2009 12/31/2010 12/31/2011Income MeasuresGross profit $ 19,812,000 $ 22,426,000 $ 28,326,000 Operating profit $ 8,141,000 $ 8,449,000 $ 10,154,000 EBIT: core and recurring $ 8,454,000 $ 9,268,000 $ 10,886,000 Net income $ 6,570,000 $ 7,228,000 $ 8,827,000 Operating working capital measures
Working capital $ 3,830,000.00 $ 3,071,000.00 $ 1,214,000.00 Operating working capital = OWC $ 7,665,000 $ 7,653,000 $ 10,706,000 Net new investment in OWC $ 12,000.00 $ (3,053,000.00)Cash flow measures
Capital Expenditures $ (1,993,000) $ (2,215,000) $ (2,920,000)Depreciation & amortization $ 1,068,000 $ 1,290,000 $ 1,846,000 EBITDA - core and recurring 7,386,000 7,978,000 9,040,000 NOPAT - core recurring 6,450,962 6,969,320 8,260,894 Operating Cash Flow 7,518,962 8,259,320 10,106,894 Free Cash Flow 5,537,962 2,991,320 7,106,000 Valuation measures
Book value of equity 24,799,000 31,003,000 31,635,000 Market value of equity - basic shares 2,329,000 2,333,000 2,323,000
12/31/2012 12/31/2013 12/31/2013 12/31/2014 12/31/2015
$ 22,426,000 $ 19,812,000 $ - Gross Profit $ 20,817,000 $ 8,449,000 $ 8,141,000 $ - Depreciation espen $ 1,005,000 $ 12,944,122 $ 13,391,386 $ 14,308,996 $ 16,061,164 $ 17,495,020 $ 10,388,816 $ 10,728,225 $ 11,424,557 $ 12,754,199 $ 13,842,287
$ 5,636,026.81 $ 10,529,729.07 $ 16,182,131.19 $ 23,201,517.26 $ 31,139,533.03 $ 15,128,027 $ 20,021,729 $ 25,674,131 $ 32,693,517 $ 40,631,533
$ (2,920,000) $ (2,920,000) $ (2,920,000) $ (2,920,000) $ (2,920,000) $ 1,835,290 $ 1,813,571 $ 1,943,414 $ 2,060,273 $ 1,968,101
11,108,832 11,577,815 12,365,582 14,000,892 15,526,919 9,733,678 10,218,514 14,308,996 16,061,164 17,495,020
11,568,968 12,032,085 16,252,410 18,121,437 19,463,120 7,106,000 7,106,000 7,106,000 7,106,000 7,106,000
37,723,816 44,152,041 51,276,598 59,730,797 69,273,083 2,323,000 2,323,000 2,323,000 2,323,000 2,323,000
12/31/2016
$ 23,614,000 $ 1,188,000 $ 19,713,491 $ 15,525,784
$ 40,915,486.88 $ 50,407,487
$ (2,920,000) $ 2,279,835
17,433,656 19,713,491 21,993,326
7,106,000
80,498,868 2,323,000
12/31/2017 12/31/2018 12/31/2019 12/31/2020
$ 29,980,000 $ 32,616,634 $ 34,351,940 $ 37,505,561 $ 1,654,000 $ 1,643,290 $ 1,621,571 $ 1,751,414 $ 22,385,096 $ 26,168,657 $ 27,518,595 $ 28,449,669 $ 17,553,145 $ 20,424,319 $ 21,448,726 $ 22,155,276
$ 53,025,403.85 $ 67,692,156.36 $ 83,300,856.54 $ 100,090,557.89 $ 62,517,404 $ 77,184,156 $ 92,792,857 $ 109,582,558
$ (2,920,000) $ (2,920,000) $ (2,920,000) $ (2,920,000) $ 2,797,262 $ 2,614,778 $ 2,669,472 $ 3,177,451
19,587,834 23,553,879 24,849,122 25,272,218 22,385,096 26,168,657 27,518,595 28,449,669 25,182,358 28,783,435 30,188,067 31,627,119
7,106,000 7,106,000 7,106,000 7,106,000
93,752,013 109,876,332 127,025,058 144,880,334 2,323,000 2,323,000 2,323,000 2,323,000
Coca-Cola Corp.
Ratios Hist. 12/31/2009 Hist. 12/31/2010Quick Ratio 1.11 1.02 Current Ratio 1.28 1.17 Days sales outstanding 44.39 46.04Inventory turnover 13.13 x 13.25 xInventory days 77.49 76.20Fixed asset turnover 3.23 x 2.38 xTotal asset turnover 0.63 x 0.48 xCAPEX/sales 6.45% 6.31%OWC/sales 25% 22%Total debt/equity 48% 76%Total debt to Total assets ratio 24% 32%TIE 23.81 x 12.64 xROA 13% 10%ROE 26% 23% FCF $ 5,537,962 $ 2,991,320 Basic earing power 17% 13%Year over year growth in sales - -12%Year over year growth in net income - -9%Year over year growth in EBIT - -10%Year over year growth in FCF - 85%Year over year growth in EPS (diluted) - -42%P/E 8.98 5.94Price to Book 2.5 2.2Price to Free Cash Flow 10.99 23.19Earnings Yield 11% 17%Dividend yield 6% 6%
Coca-Cola Corp.
Hist. 12/31/2011 0.92 1.05
38.5815.05 x
61.963.12 x0.58 x6.27%
23%90%36%
26.11 x11%28%
$ 7,106,000 14%
-25%-18%-17%-58%37%
10.442.8
12.3810%
5%
COCA-COLA Hist. Proj Proj
2011 2012 2013
EQUITYEquity - beginning balance 31,635,000 37,723,816 Net income 10,388,816 10,728,225 Dividends (4,300,000) (4,300,000)Equity - ending balance 31,635,000 37,723,816 44,152,041
PP&EPP&E, Beginning 14,939,000 16,215,710 CAPEX (2,920,000) (2,920,000)Depreciation 1,643,290 1,621,571 PP&E Ending 14,939,000 16,215,710 17,514,139
INTANGIBLE ASSETSBeginning balance 15,450,000 15,258,000 Additions - - Amortization 192,000 192,000 Ending balance 15,450,000 15,258,000 15,066,000
Proj Proj Proj Proj Proj Proj Proj
2014 2015 2016 2017 2018 2019 2020
44,152,041 51,276,598 59,730,797 69,273,083 80,498,868 93,752,013 109,876,332 11,424,557 12,754,199 13,842,287 15,525,784 17,553,145 20,424,319 21,448,726 (4,300,000) (4,300,000) (4,300,000) (4,300,000) (4,300,000) (4,300,000) (4,300,000) 51,276,598 59,730,797 69,273,083 80,498,868 93,752,013 109,876,332 127,025,058
17,514,139 18,682,725 19,734,453 20,878,352 21,710,517 22,025,255 22,522,477 (2,920,000) (2,920,000) (2,920,000) (2,920,000) (2,920,000) (2,920,000) (2,920,000) 1,751,414 1,868,273 1,776,101 2,087,835 2,605,262 2,422,778 2,477,472 18,682,725 19,734,453 20,878,352 21,710,517 22,025,255 22,522,477 22,965,004
15,066,000 14,874,000 14,682,000 14,490,000 14,298,000 14,106,000 13,914,000 - - - - - - - 192,000 192,000 192,000 192,000 192,000 192,000 192,000 14,874,000 14,682,000 14,490,000 14,298,000 14,106,000 13,914,000 13,722,000
Proj
2021
127,025,058 22,155,276 (4,300,000) 144,880,334
22,965,004 (2,920,000) 2,985,451 22,899,554
13,722,000 - 192,000 13,530,000
Coca-Cola24% 25% 24%
2,284,000 2,308,000 2,314,000 2,323 2,333 2,329
38.52 30.06 26.3
$ (4,300,000) $ (4,068,000) $ (3,800,000)
EBIT 14,779,412
Depreciation & amortization 1,846,000
Change in OWC & other operating cash flows
CAPEX
Tax rate
FCF long run growth rate 3%
WACC 7%
Cash 27,742,000
Value of Debt 13,656,000.0
Shares of stock outstanding 2,323,000.0
EV/EBITDA multiple (ltm) 11.0
A: Enterprise Valuation: Relative Valuation using Trailing EBITDA Multiple
EBITDA 16,614,702.1
EV 182,761,723.1
Equity value 196,847,723.1
Share price $84.74
B: Enterprise Valuation Assuming Constant Growth
FCFEV 245,972,589.6
Equity value 260,058,589.6
Share price $111.95
C: Enterprise Valuation: Use Forecast since we assume Non-Constant Growth over short term;TV is based off EBITDA Multiple
Variable growth phase
Year (for discounting)
Free cash flow
Present value of FCF
TV using EBITDA multiple
PV of TV 17,767,802.1
Enterprise value 117,384,383.0
Equity value 131,470,383.0
Share price $56.60
D: Enterprise Valuation: Use Forecast since we assume Non-Constant Growth over short term;TV assumes we hit steady state and can apply constant growth model
Stable growth phase
Free cash flow during first year of stable growth
Enterprise value when growth becomes stable
Present value of enterprise value in stable phase 56,678,711.4
Enterprise value 156,295,292.4
Equity value 170,381,292.4
Share price $73.35
E: Enterprise Valuation Assuming Non-Constant Growth and Finite Time Horizon
Year
Free cash flow
FCF growth rate expected
Year (for discounting)
Free Cash Flow
PV of FCF
Enterprise Value for 60 year time horizon 151,676,403.1
Equity value 165,762,403.1
Share price $71.36
End
15,204,957 16,252,410 18,121,437 19,463,120 21,993,326
1,835,290 1,813,571 1,943,414 2,060,273 1,968,101
(614,742) (321,495) (498,141) (1,219,928) (1,194,548)
(2,920,000) (2,920,000) (2,920,000) (2,920,000) (2,920,000)
24% 24% 24% 24% 24%
9,838,903.6
C: Enterprise Valuation: Use Forecast since we assume Non-Constant Growth over short term;TV is based off EBITDA Multiple
1 2 3 4 5
9,838,903.6 10,905,297.0 12,276,814.1 12,690,028.0 14,543,295.7
9,195,237.0 9,525,108.7 10,021,537.3 9,681,161.6 10,369,168.8
D: Enterprise Valuation: Use Forecast since we assume Non-Constant Growth over short term;TV assumes we hit steady state and can apply constant growth model
2011 2012 2013 2014 2015
9,838,903.6 10,905,297.0 12,276,814.1 12,690,028.0 14,543,295.7
10.8% 12.6% 3.4% 14.6%
1 2 3 4 5
9,838,903.6 10,905,297.0 12,276,814.1 12,690,028.0 14,543,295.7
9,195,237.0 9,525,108.7 10,021,537.3 9,681,161.6 10,369,168.8
25,182,358 28,783,435 30,188,067 31,627,119 -
2,279,835 2,797,262 2,614,778 2,669,472 3,177,451
(156,730) (3,305,125) 250,124 (2,327,895) 1,152,476
(2,920,000) (2,920,000) (2,920,000) (2,920,000) -
24% 24% 24% 24% 24%
6 7 8 9 10 11
18,312,860.5 18,414,587.7 22,853,263.9 21,421,971.2 4,329,926.4
12,202,632.2 11,467,679.7 13,300,807.7 11,652,133.0 2,201,115.0
34,951,956.0
D: Enterprise Valuation: Use Forecast since we assume Non-Constant Growth over short term;TV assumes we hit steady state and can apply constant growth model
0.0
111,495,604.1
2016 2017 2018 2019 2020 2021
18,312,860.5 18,414,587.7 22,853,263.9 21,421,971.2 4,329,926.4 4,535,597.9
25.9% 0.6% 24.1% -6.3% -79.79% 4.75%
6 7 8 9 10 11
18,312,860.5 18,414,587.7 22,853,263.9 21,421,971.2 4,329,926.4 4,535,597.9
12,202,632.2 11,467,679.7 13,300,807.7 11,652,133.0 2,201,115.0 2,154,829.9
2022 2023 2024 2025 2026 2027 2028
4,751,038.8 4,964,835.5 5,175,841.0 5,382,874.7 5,584,732.5 5,780,198.1 5,968,054.5
4.75% 4.50% 4.25% 4.00% 3.75% 3.50% 3.25%
12 13 14 15 16 17 18
4,751,038.8 4,964,835.5 5,175,841.0 5,382,874.7 5,584,732.5 5,780,198.1 5,968,054.5
2,109,518.0 2,060,230.2 2,007,280.4 1,951,001.5 1,891,742.1 1,829,862.7 1,765,732.0
2029 2030 2031 2032 2033 2034 2035
6,147,096.2 6,331,509.1 6,521,454.3 6,717,098.0 6,918,610.9 7,126,169.2 7,339,954.3
3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00%
19 20 21 22 23 24 25
6,147,096.2 6,331,509.1 6,521,454.3 6,717,098.0 6,918,610.9 7,126,169.2 7,339,954.3
1,699,723.3 1,636,182.3 1,575,016.6 1,516,137.4 1,459,459.4 1,404,900.2 1,352,380.5
2036 2037 2038 2039 2040 2041 2042
7,560,152.9 7,786,957.5 8,020,566.3 8,261,183.2 8,509,018.7 8,764,289.3 9,027,218.0
3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00%
26 27 28 29 30 31 32
7,560,152.9 7,786,957.5 8,020,566.3 8,261,183.2 8,509,018.7 8,764,289.3 9,027,218.0
1,301,824.3 1,253,157.9 1,206,310.9 1,161,215.2 1,117,805.3 1,076,018.1 1,035,793.2
2043 2044 2045 2046 2047 2048 2049
9,298,034.5 9,576,975.6 9,864,284.8 10,160,213.4 10,465,019.8 10,778,970.4 11,102,339.5
3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00%
33 34 35 36 37 38 39
9,298,034.5 9,576,975.6 9,864,284.8 10,160,213.4 10,465,019.8 10,778,970.4 11,102,339.5
997,071.9 959,798.2 923,917.9 889,378.9 856,131.1 824,126.2 793,317.8
2050 2051 2052 2053 2054 2055 2056
11,435,409.7 11,778,471.9 12,131,826.1 12,495,780.9 12,870,654.3 13,256,773.9 13,654,477.2
3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00%
40 41 42 43 44 45 46
11,435,409.7 11,778,471.9 12,131,826.1 12,495,780.9 12,870,654.3 13,256,773.9 13,654,477.2
763,661.0 735,112.9 707,632.1 681,178.5 655,713.9 631,201.3 607,604.9
2057 2058 2059 2060 2061 2062 2063
14,064,111.5 14,486,034.8 14,920,615.9 15,368,234.3 15,829,281.4 16,304,159.8 16,793,284.6
3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00%
47 48 49 50 51 52 53
14,064,111.5 14,486,034.8 14,920,615.9 15,368,234.3 15,829,281.4 16,304,159.8 16,793,284.6
584,890.7 563,025.7 541,978.0 521,717.1 502,213.7 483,439.3 465,366.8
2064 2065 2066 2067 2068 2069 2070
17,297,083.2 17,815,995.6 18,350,475.5 18,900,989.8 19,468,019.5 20,052,060.1 20,653,621.9
3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00%
54 55 56 57 58 59 60
17,297,083.2 17,815,995.6 18,350,475.5 18,900,989.8 19,468,019.5 20,052,060.1 20,653,621.9
447,969.9 431,223.4 415,102.9 399,585.0 384,647.3 370,267.9 356,426.2
62
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