10/24/2016

DodolanSepatu

PLANTOPERATIONSREPORT

Year12

Industry10

PLANTCAPACITY(000sofpairsw/oOT)

NorthAmerica
Plant

EuropeAfrica
Plant

2,000
0
0
0
2,000
0
2,000

PlantUpgrade Online(initiatedpriortoY12)
Options
Pending(initiatedinY12)

none
none

none
none

none
none

none
none

NorthAmerica
Plant

EuropeAfrica
Plant

AsiaPacific
Plant

LatinAmerica
Plant

GrossInvestmentattheEndofYear11
+UpgradeOptions(initiatedinYear11)
+NewConstruction(initiatedinYear11)
+CapacityPurchased(atbeginningofY12)
CapacitySoldOff(atbeginningofY12)
+EnergyEfficiencyInitiatives(inY12)
GrossInvestmentinYear12Capacity
AccumulatedDepreciation(throughY11)
CurrentDepreciation(incurredinY12)
NetInvestmentinYear12Capacity
UpgradeandConstructionWorkinProgress

LABORSTATISTICS

pairs

pairs

75,000
0
0
0
0
333
75,333
31,250
3,767
40,316
0
NorthAmerica
Year11

Year12

WorkerProductivity(pairsperworkerperyear)
NumberofWorkersEmployed
Compensation AnnualBaseWage
($000sperworker)
IncentivePay
TotalCompensation
IncentivePayPerPair($pernonrejectedpair)

4,021
498
15.2
5.7
20.9
1.25

4,107
487
15.3
7.9
23.2
2.00

CumulativeBest $PerWorker
Practices
$PerBrandedPair

1,000
0.24
NorthAmerica

PRODUCTIONSTATISTICS
Footwear RegularPairsProduced
Production
OvertimePairsProduced
(000sofpairs)
RejectedPairs
NetFootwearProduction
RejectRate(%ofregular+OTproduction)
NumberofModelsProduced
S/QRatingofPairsProduced
CapacityUtilization(maxutilizationatfullOT=120%)

BRANDEDPRODUCTIONCOSTS

Thissectionlists
costsforbranded
productiononly.
PrivateLabel
productioncosts
arelistedonthe
PrivateLabel
Operationsreport.

MaterialsCosts Standard
Superior
LaborCosts RegularPay
OvertimePay
BestPracticesTraining
PlantSupervision
EnhancedStyling/Features
TQM/6SigmaQualityProgram
ProductionRunSetUp
PlantMaintenance
Depreciation
TotalProductionCosts
CostofRejectedPairs

CompanyOperatingReports

4,000
0
0
0
4,000
0
4,000

LatinAmerica
Plant

PlantCapacityattheEndofYear11
+NewConstruction(initiatedinYear11)
+CapacityPurchased(atbeginningofY12)
CapacitySoldOff(atbeginningofY12)
CapacityAvailableforYear12Production
NewConstructionInitiatedinYear12
TotalCapacityAvailableforYear13

PLANTINVESTMENT($000s)

0
0
0
0
0
0
0

AsiaPacific
Plant

pairs

pairs

0
0
0
0
0
0
0
0
0
0
0
EuropeAfrica

pairs

180,000
0
0
0
0
667
180,667
40,500
9,033
131,134
0
AsiaPacific

Year11

Year12

Year11

Year12

0
0
0.0
0.0
0.0
0.00

0
0
0.0
0.0
0.0
0.00

2,519
1,588
2.8
1.4
4.2
0.50

2,597
1,541
2.9
4.3
7.1
1.50

0
0.00
EuropeAfrica

0
0
0
0
0
0
0

pairs

675
0.25
AsiaPacific

pairs

pairs

0
0
0
0
0
0
0
0
0
0
0

AllPlants
Combined
6,000
0
0
0
6,000
0
6,000

pairs

pairs

AllPlants
Combined
255,000
0
0
0
0
1,000
256,000
71,750
12,800
171,450
0

LatinAmerica
Year11

Year12

0
0
0.0
0.0
0.0
0.00

0
0
0.0
0.0
0.0
0.00

0
0.00
LatinAmerica

Overall

Branded

PLabel

Branded

PLabel

Branded

PLabel

Branded

PLabel

Branded

PLabel

2,000
0
74
1,926
3.7%
200
5

0
0
0
0
0.0%
0
0

0
0
0
0
0.0%
0
0

0
0
0
0
0.0%
0
0

4,000
0
172
3,828
4.3%
200
5

0
593
20
573
3.3%
100
4

0
0
0
0
0.0%
0
0

0
0
0
0
0.0%
0
0

6,000
0
246
5,754
4.1%

0
593
20
573
3.4%

100.0%
NorthAmerica
$000s

$/pair

7,440
9,544
11,304
0
487
2,922
2,400
3,000
6,000
5,085
3,767
51,949
1,921

3.86
4.96
5.87
0.00
0.25
1.52
1.25
1.56
3.12
2.64
1.96
26.97
1.00

0.0%
EuropeAfrica
$000s

$/pair

0
0
0
0
0
0
0
0
0
0
0
0
0

0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00

114.8%
AsiaPacific

$000s

$/pair

14,880
19,088
10,134
0
1,342
2,684
2,400
8,710
6,000
7,868
7,868
80,974
3,481

3.89
4.99
2.65
0.00
0.35
0.70
0.63
2.28
1.57
2.06
2.06
21.15
0.91

CopyrightGLOBUSSoftware,Inc.

0.0%
LatinAmerica
$000s

0
0
0
0
0
0
0
0
0
0
0
0
0

109.9%
Overall

$/pair

$000s

$/pair

0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00

22,320
28,632
21,438
0
1,829
5,606
4,800
11,710
12,000
12,953
11,635
132,923
5,403

3.88
4.98
3.73
0.00
0.32
0.97
0.83
2.04
2.09
2.25
2.02
23.10
0.94
Page1

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10/24/2016

DodolanSepatu

DISTRIBUTION&WAREHOUSEREPORT

Year12

Industry10

WAREHOUSEOPERATIONS

(thousandsof
brandedpairs)

EndingInventoryfromYear11
InventoryClearance(atthebeginningofY12)
BeginningInventory(carriedoverfromY12)
Incoming NorthAmericaPlant
Shipmentsfrom
EuropeAfricaPlant
AsiaPacificPlant
LatinAmericaPlant
PairsAvailableforSale(inventory+shipments)
PairsSold InternetSegment
WholesaleSegment
TotalBrandedSales
RequiredInventory(neededtoachievedeliverytime)
InventorySurplus(Shortfall)
EndingInventory(pairsleftoverattheendofY12)
ModelAvailability(weightedaverage)
S/QRating(weightedaverage)

COSTOFBRANDEDPAIRSSOLD
CostofBeginningYear12Inventory
+ProductionCostofIncomingPairs
ExchangeRateCostAdjustments
+FreightonIncomingPairs
+ImportTariffsonIncomingPairs
CostofEndingYear12Inventory
CostofBrandedPairsSoldinYear12

WAREHOUSEOPERATINGEXPENSES
InventoryStorageCosts
Packaging/ShippingInternet
Wholesale
WarehouseLeaseandMaintenance
TotalWarehouseOperatingExpenses

INVENTORYCLEARANCE
NetRevenuesfromPairsCleared
DirectCostsProduction/Freight/Tariffs
ofPairs
InventoryStorage
Cleared
Packaging/Shipping
MarginOverDirectCosts

CompanyOperatingReports

NorthAmerica
Warehouse

EuropeAfrica
Warehouse

AsiaPacific
Warehouse

LatinAmerica
Warehouse

Company
Total

398
0
398
1,598
0
0
0
1,996
121
1,550
1,671
48
277
325

333
0
333
0
0
1,840
0
2,173
125
1,580
1,705
51
417
468

292
0
292
0
0
998
0
1,290
96
942
1,038
31
221
252

200
0
200
328
0
990
0
1,518
100
1,166
1,266
36
216
252

1,223
0
1,223
1,926
0
3,828
0
6,977
442
5,238
5,680
166
1,131
1,297

pairs

pairs

200
5
$000s

$/pair

10,402
43,102
0
1,598
0
8,972
46,130

26.14
26.97
0.00
1.00
0.00
27.61
27.61

NorthAmerica
$/pair

368
1,210
2,825
1,000
5,403

pairs

200
5

NorthAmerica

$000s

pairs

0.22
0.72
1.69
0.60
3.23

EuropeAfrica

pairs

pairs

pairs

Weighted average of
beginning inventory +
new incoming pairs
shippedfromplants.

200
5

$/pair

$000s

AsiaPacific

$/pair

LatinAmerica
$000s

$/pair

$000s

$/pair

8,461
38,922
479
3,680
7,360
12,479
45,465

25.41
21.15
0.26
2.00
4.00
26.66
26.67

5,962
21,111
0
998
0
5,484
22,587

20.42
21.15
0.00
1.00
0.00
21.76
21.76

5,472
29,789
2,886
2,636
5,940
6,798
34,153

27.36
22.60
2.19
2.00
4.51
26.98
26.98

30,297
132,924
3,365
8,912
13,300
33,733
148,335

24.77
23.10
0.58
1.55
2.31
26.01
26.12

EuropeAfrica
$000s

AsiaPacific

$/pair

309
1,250
2,870
1,000
5,429

0
0
0
0
0

$000s

$000s

0.18
0.73
1.68
0.59
3.18

0
0
0
0
0

0.00
0.00
0.00
0.00
0.00

pairs

$000s

EuropeAfrica

$/pair

pairs

200
5

NorthAmerica
$000s

pairs

$/pair

$/pair

271
960
1,884
1,000
4,115

CopyrightGLOBUSSoftware,Inc.

$000s

$/pair

183
1,000
2,249
1,000
4,432

0.14
0.79
1.78
0.79
3.50

AsiaPacific

LatinAmerica

0
0
0
0
0

0
0
0
0
0

$000s

0.00
0.00
0.00
0.00
0.00

0.26
0.92
1.82
0.96
3.96

LatinAmerica

$/pair

0.00
0.00
0.00
0.00
0.00

$000s

$/pair

0.00
0.00
0.00
0.00
0.00

Overall

Overall

$000s

$/pair

1,131
4,420
9,828
4,000
19,379

0.20
0.78
1.73
0.70
3.41

Overall

$000s

$/pair

0
0
0
0
0

0.00
0.00
0.00
0.00
0.00

Page2

2/5

10/24/2016

DodolanSepatu

MARKETING&ADMINISTRATIVEREPORT

Year12

Industry10

MARKETINGEXPENSES
Internet Advertising 1
Segments
WebSiteMaintenance
CelebrityEndorsements2
TotalInternetMarketing
Wholesale Advertising 1
Segments
RebateRedemption
RetailerSupport
OnTimeDelivery
CelebrityEndorsements2
TotalWholesaleMarketing

NorthAmerica
$000s

$/pair

GeneralAdministration
OtherCorporateOverhead
TotalAdministrativeExpenses

$000s

AsiaPacific

$/pair

$000s

$/pair

LatinAmerica
$000s

$/pair

Overall

$000s

$/pair

579
1,166
0
1,745

4.79
9.64
0.00
14.42

586
1,205
0
1,791

4.69
9.64
0.00
14.33

463
925
0
1,388

4.82
9.64
0.00
14.46

395
964
0
1,359

3.95
9.64
0.00
13.59

2,023
4,260
0
6,283

4.58
9.64
0.00
14.21

7,421
2,713
922
1,163
0
12,219

4.79
1.75
0.59
0.75
0.00
7.88

7,414
2,765
1,000
1,185
0
12,364

4.69
1.75
0.63
0.75
0.00
7.83

4,537
1,649
520
707
0
7,413

4.82
1.75
0.55
0.75
0.00
7.87

4,605
2,041
520
875
0
8,041

3.95
1.75
0.45
0.75
0.00
6.90

23,977
9,168
2,962
3,930
0
40,037

4.58
1.75
0.57
0.75
0.00
7.64

1. Totalregionaladvertisingexpendituresareallocatedtointernetandwholesaleseg
mentsbasedoneachsegment'spercentageoftotalbrandedpairssoldintheregion.

ADMINISTRATIVEEXPENSES

EuropeAfrica

NorthAmerica
$000s

$/pair

562
1,986
2,548

0.34
1.19
1.52

2. Totalexpendituresforcelebrityendorsementsareallocatedtointernetandwhole
salesegmentsbasedoneachsegment'spercentageoftotalbrandedpairssold.

EuropeAfrica
$000s

AsiaPacific

$/pair

573
2,026
2,599

$000s

0.34
1.19
1.52

$/pair

349
1,233
1,582

0.34
1.19
1.52

LatinAmerica
$000s

$/pair

426
1,505
1,931

0.34
1.19
1.53

Overall

$000s

$/pair

1,910
6,750
8,660

0.34
1.19
1.52

Totalcompanyadministrativeexpensesareallocatedtoeachregionbasedontheregion'spercentageoftotalbrandedpairssold.

DodolanSepatu

PRIVATELABELREPORT

Year12

Industry10

OFFERSSUBMITTED
OfferstoPrivate PairsOffered(000s)
LabelBuyers
S/QRating
BidPrice($perpair)
PairsOffered(000s)

NorthAmerica
Market

EuropeAfrica
Market

AsiaPacific
Market

LatinAmerica
Market

Company
Total

289pairs
4
35.00

273pairs
4
35.00

300pairs
4
35.00

300pairs
4
35.00

pairs

573pairs

0pairs

273pairs

300pairs

0pairs

NorthAmerica

EuropeAfrica

AsiaPacific

LatinAmerica

Production MaterialsStandard
Costs
Superior
LaborRegular
Overtime
Styling/Features
ProductionRunSetUp
OtherAllocatedCosts1
TotalProductionCosts

0
0
0
0
0
0
0
0

0
0
0
0
0
0
0
0

PairsProduced(000sofpairsafterrejects)2

pairs

pairs

573

pairs

pairs

573

pairs

ShipmentsTo N.A.Warehouse
(000sofpairs)
EAWarehouse
APWarehouse
L.A.Warehouse

0
0
0
0

pairs

0
0
0
0

pairs

0
273
300
0

pairs

0
0
0
0

pairs

0
273
300
0

pairs

PRODUCTIONSHIPPING

$000s

$/pair

0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00

pairs

1. Bestpractices,plantsupervision,TQM/6Sigma,plantmaintenance,anddeprecia
tioncostallocationsbasedonpercentageoftotalpairsproducedbeforerejects.

REVENUES/COSTS/MARGINS
GrossPrivateLabelRevenues
ExchangeRateAdjustments
NetPrivateLabelRevenues
DirectProductionCosts
Costs
ExchangeRateAdjustments
Freight
ImportTariffs
Packaging/Shipping
MarginOverDirectCosts

CompanyOperatingReports

NorthAmerica
$000s

$/pair

0
0
0
0
0
0
0
0
0

$000s

0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00

$/pair

0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00

pairs

$000s

$/pair

3,125
1,061
860
977
500
625
4,217
11,365

5.45
1.85
1.50
1.71
0.87
1.09
7.36
19.83

$000s

$/pair

0
0
0
0
0
0
0
0

pairs

0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00

pairs

Overall

$000s

$/pair

3,125
1,061
860
977
500
625
4,217
11,365

5.45
1.85
1.50
1.71
0.87
1.09
7.36
19.83

pairs

2. Formoreprivatelabelproductioninfo(rejectedpairs,rejectrate,numberofmodels,
andS/Qrating)seetheProductionStatisticssectionofthePlantOperationsReport.

EuropeAfrica
$000s

9,555
229
9,326
5,415
67
546
1,092
273
2,067

AsiaPacific

$/pair

$000s

$/pair

35.00
0.84
34.16
19.84
0.25
2.00
4.00
1.00
7.57

10,500
386
10,114
5,950
0
300
0
300
3,564

35.00
1.29
33.71
19.83
0.00
1.00
0.00
1.00
11.88

CopyrightGLOBUSSoftware,Inc.

LatinAmerica
$000s

$/pair

0
0
0
0
0
0
0
0
0

0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00

Overall

$000s

$/pair

20,055
615
19,440
11,365
67
846
1,092
573
5,631

35.00
1.07
33.93
19.83
0.12
1.48
1.91
1.00
9.83

Page3

3/5

10/24/2016

INCOMESTATEMENT

DodolanSepatu

Year12

Industry10

CONSOLIDATEDINCOMESTATEMENT
SegmentRevenues Internet
Wholesale1
PrivateLabel
GrossRevenuesfromFootwearSales
ExchangeRateAdjustments
NetRevenuesfromFootwearSales
OperatingCostofPairsSold 1
Costs
WarehouseExpenses
MarketingExpenses
AdministrativeExpenses
OperatingProfit(Loss)
PROFITABILITY&PAYOUT
EarningsPerShare
DividendPerShare

NorthAmerica
$000s

$/pair

8,591
69,750
0
78,341
0
78,341
46,130
5,403
13,964
2,548
10,296

71.00
45.00
0.00
46.88
0.00
46.88
27.61
3.23
8.36
1.52
6.16

Year11

Year12

$4.01
$0.00

$2.79
$0.00

EuropeAfrica
$000s

$/pair

$000s

AsiaPacific

$/pair

LatinAmerica
$000s

$/pair

$000s

$/pair

8,875
71,100
9,555
89,530
2,118
87,412
52,450
5,702
14,155
2,599
12,506

71.00
45.00
35.00
45.26
1.07
44.19
26.52
2.88
7.16
1.31
6.32

6,816
41,448
10,500
58,764
2,127
56,637
28,837
4,415
8,801
1,582
13,002

71.00
44.00
35.00
43.92
1.59
42.33
21.55
3.30
6.58
1.18
9.72

7,100
50,138
0
57,238
4,128
61,366
34,153
4,432
9,400
1,931
11,450

71.00
43.00
0.00
45.21
3.26
48.47
26.98
3.50
7.42
1.53
9.04

31,382
232,436
20,055
283,873
117
283,756
161,570
19,952
46,320
8,660
47,254

71.00
44.37
35.00
45.40
0.02
45.38
25.84
3.19
7.41
1.38
7.56

6,871
473
39,910
11,973
27,937

1.10
0.08
6.38
1.91
4.47

InterestIncome(Expenses)
OtherIncome(Expenses)2
PreTaxProfit(Loss)
IncomeTaxes3
NetProfit(Loss)

Overall

1. TheseitemsincluderevenuescollectedfromandcostsassociatedwithinventoryliquidatedatthebeginningofY12.SeethelastsectionoftheDistribution&WarehouseReport.
2. Thisitemincludesanycharitablecontributionsand/orinstructorimposedfines(appearingasnegative)and/orinstructorawardedrefunds(appearingaspositive).
3. Theincometaxrateis30%.IfanetlosswasrecordedinY11,thelossiscarriedforwardandmayoffsetsomeoralltaxableY12profitandreduceY12incometaxes.

DodolanSepatu
Industry10

REVENUECOSTPROFITPERFORMANCE
INTHEBRANDEDSEGMENTS

INTERNETMARKETPERFORMANCE
RevenuesfromInternetSales
CustomerPaidShippingFees
GrossInternetRevenues
ExchangeRateAdjustments
NetInternetRevenues
Operating CostofPairsSold
Costs
WarehouseExpenses
MarketingExpenses
AdministrativeExpenses
OperatingProfit(Loss)
MARKETSTATISTICS
PairsSold(000s)
MarketShare
OperatingProfitMargin

WHOLESALEMARKETPERFORMANCE
GrossWholesaleRevenues
ExchangeRateAdjustments
NetWholesaleRevenues
Operating CostofPairsSold
Costs
WarehouseExpenses
MarketingExpenses
AdministrativeExpenses
OperatingProfit(Loss)
MARKETSTATISTICS
PairsSold(000s)
MarketShare
OperatingProfitMargin

CompanyOperatingReports

NorthAmerica
$000s

7,381
1,210
8,591
0
8,591
3,340
1,309
1,745
184
2,013

$/pair

61.00
10.00
71.00
0.00
71.00
27.60
10.82
14.42
1.52
16.64

EuropeAfrica
$000s

7,625
1,250
8,875
183
8,692
3,333
1,346
1,791
191
2,031

AsiaPacific

$/pair

$000s

61.00
10.00
71.00
1.46
69.54
26.66
10.77
14.33
1.53
16.25

5,856
960
6,816
216
6,600
2,089
1,078
1,388
146
1,899

$/pair

61.00
10.00
71.00
2.25
68.75
21.76
11.23
14.46
1.52
19.78

Year12
LatinAmerica
$000s

6,100
1,000
7,100
448
7,548
2,698
1,093
1,359
153
2,245

Overall

$/pair

$000s

$/pair

61.00
10.00
71.00
4.48
75.48
26.98
10.93
13.59
1.53
22.45

26,962
4,420
31,382
49
31,431
11,460
4,826
6,283
674
8,188

61.00
10.00
71.00
0.11
71.11
25.93
10.92
14.21
1.52
18.52

Year11

Year12

Year11

Year12

Year11

Year12

Year11

Year12

Year11

Year12

165
17.4%
18.7%

121
10.3%
23.4%

166
17.5%
20.4%

125
10.7%
23.4%

122
18.5%
28.1%

96
11.3%
28.8%

123
18.7%
17.9%

100
11.8%
29.7%

576
17.9%
21.0%

442
11.0%
26.1%

NorthAmerica
$000s

$/pair

69,750
0
69,750
42,790
4,094
12,219
2,364
8,283

45.00
0.00
45.00
27.61
2.64
7.88
1.53
5.34

EuropeAfrica
$000s

$/pair

$000s

AsiaPacific

$/pair

LatinAmerica
$000s

$/pair

$000s

Overall

$/pair

71,100
1,706
69,394
42,131
4,083
12,364
2,408
8,408

45.00
1.08
43.92
26.67
2.58
7.83
1.52
5.32

41,448
1,525
39,923
20,498
3,037
7,413
1,436
7,539

44.00
1.62
42.38
21.76
3.22
7.87
1.52
8.00

50,138
3,680
53,818
31,455
3,339
8,041
1,778
9,205

43.00
3.16
46.16
26.98
2.86
6.90
1.52
7.89

232,436
449
232,885
136,874
14,553
40,037
7,986
33,435

44.37
0.09
44.46
26.13
2.78
7.64
1.52
6.38

Year11

Year12

Year11

Year12

Year11

Year12

Year11

Year12

Year11

Year12

1,326
9.0%
25.0%

1,550
10.0%
11.9%

1,413
9.6%
24.3%

1,580
10.3%
12.1%

910
8.9%
31.3%

942
8.4%
18.9%

1,012
9.9%
15.1%

1,166
10.5%
17.1%

4,661
9.3%
23.9%

5,238
9.9%
14.4%

CopyrightGLOBUSSoftware,Inc.

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10/24/2016

BALANCESHEET&CASHFLOWREPORT

DodolanSepatu

Year12

Industry10

BALANCESHEET

CASHFLOWSTATEMENT

ASSETS

$000s

CashOnHand
AccountsReceivable(seeNote1)
FootwearInventories
TotalCurrentAssets
NetPlantInvestment(seeNote2)
ConstructionWorkinProgress
TotalFixedAssets

24,565
70,939
33,733
129,237
171,450
0
171,450

TotalAssets

300,687

LIABILITIES

$000s

AccountsPayable(seeNote3)
OverdraftLoanPayable(seeNote4)
1YearBankLoanPayable(seeNote5)
CurrentPortionofLongTermLoans(seeNote6)
TotalCurrentLiabilities
LongTermBankLoansOutstanding(seeNote7)

13,785
0
0
16,300
30,085
50,800

TotalLiabilities

80,885
Beginning
Balance

SHAREHOLDEREQUITY
CommonStock(seeNote8)
AdditionalCapital(seeNote9)
RetainedEarnings(seeNote10)
TotalShareholderEquity

Change
inY12

$000s

10,000
100,000
81,866

0
0
+27,936

10,000
100,000
109,802

191,866

+27,936

219,802

ReturnonAverageEquityforYear12(seeNote11)

13.6%

BalanceSheetNotes(alldollarandsharefiguresinthousands)
Note1: Ofthe$283,756netrevenuesreportedintheY12incomestatement,25%have
notbeencollectedfromcustomers(andwillbecollectedinY13).
Note2: For more details on net plant investment, see the Plant Investment section of
thePlantOperationsReport.
Note3: Ofthe$55,140inmaterialsusedforfootwearproductioninY12,25%havenot
beenpaidfor(andwillbepaidforinY13).
Note4: Loansforoverdraftsareincurredautomaticallytopreventanegativeyearend
cashbalanceandcarryaninterestrate2%abovetheratefor1yearloans.
Note5: Thecompany'sinterestratefora1yearloaninY12was4.9%.
Note6: Thisitemrepresentstheprincipalportionofalloutstanding5yearand10year
bankloansduetoberepaidinYear13.
Note7: Longtermbankloansoutstanding:
Loan
Number

Initial
Year

Original
Principal

Interest
Rate

Term

Out
standing
Principal

Annual
Principal
Payment

Year13
Interest
Payable

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16

Y7
Y9

115,000
24,000

8.5%
7.5%

10Yr
5Yr

57,500
9,600

11,500
4,800

4,888
720

Note8: There are 10,000 shares issued and outstanding at a par value of $1.00 per
share.Theauthorizedmaximumnumberofsharesoutstandingis40,000.
Note9: AdditionalCapitalrepresentstheamountoverandaboveparvaluethatshare
holdershavepaidtopurchasenewsharesofstock.
Note10: Retained Earnings is a summation of all aftertax profits the company has
earnedthathavenotbeendistributedtoshareholdersintheformofdividends.
Note11: TheformulaforReturn
onAverageEquityis:

AfterTaxprofit
(BeginningEquity+EndingEquity)2

CASHAVAILABLEINYEAR12
BeginningCashBalance
Cash ReceiptsfromSales(seeNote1)
Inflows
BankLoans 1Year
5Year
10Year
StockIssues(0sharesissued)
SaleofExistingPlantCapacity
LoantoCoverOverdrafts
InterestonY11CashBalance
TotalCashAvailablefromAllSources

CASHOUTLAYSINYEAR12
PaymentstoMaterialsSuppliers(seeNote2)
ProductionExpenses(seeNote3)
DistributionandWarehouseExpenses
MarketingandAdministrativeExpenses
CapitalPlantUpgradeOptionsInitiated
Outlays
PurchaseofUsedPlantCapacity
ConstructionofNewCapacity
EnergyEfficiencyInitiatives
RepaymentofPrincipal OverdraftLoan
onBankLoans(seeNote4)
1YearLoan
5YearLoans
10YearLoans
InterestPaymentson OverdraftLoan
BankLoans
StockRepurchases(0sharesrepurchased)
IncomeTaxPayments
DividendPaymentstoShareholders
CharitableContributions
TotalCashOutlays
NetCashBalance(attheendofYear12)

$000s
7,414
283,442
0
0
0
0
0
0
74
290,930

$000s
57,674
72,918
44,102
54,980
0
0
0
1,000
0
0
4,800
11,500
0
6,945
0
11,973
0
473
266,365
24,565

CashFlowNotes
Note1: ReceiptsfromSalesrepresents75%ofYear12revenuesand25%ofYear11
revenuesduetoa3monthlaginreceivablescollections.
Note2: Payments to Materials Suppliers represents 75% of the cost of materials used
forY12productionand25%oftehcostofmaterialsusedforY11productiondue
toa3monthlaginpaymentsmadetomaterialssuppliers.
Note3: ProductionExpensesincludeallY12productionrelatedexpenses(adjustedfor
the exchange rate effects of shipping to regional warehouses) except for
depreciation(whichisanoncashaccountingcharge).
Note4: Overdraft and 1year loans received in Year 11 were repaid in full in Year 12.
InterestonanoverdraftloanreceivedinY11wouldalsoberepaidinY12.

SELECTEDFINANCIALSTATISTICS
Credit InterestCoverageRatio(oper.profitinterestexp.)
6.88
Rating
DebtToAssetsRatio(totaldebttotalassets)
0.22
Measures DefaultRiskRatio(freecashflowprincipalpayments)
2.50
DefaultRiskRating(seeNote1)
Medium
CreditRating(attheendofYear12)
A
CurrentRatio(currentassetscurrentliabilities)
OperatingProfitMargin(operatingprofitnetsalesrevenues)
NetProfitMargin(aftertaxprofitnetsalesrevenues)
DividendPayout(dividendpershareearningspershare)
FreeCashFlow(aftertaxprofit+[depreciationdividends])
TotalPrincipalPayments($000stobepaidinYear13)

4.30
16.7%
9.8%
0.0%
40,737
16,300

Note1: Adefaultriskratioof3.00orhigherresultsinaLowdefaultriskrating,1.00to
3.00resultsinaMediumrating,andbelow1.00resultsinaHighrating.

CompanyOperatingReports

CopyrightGLOBUSSoftware,Inc.

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