Change of Desert Market, Aug - Sep '66 compared to Aug - Sep '65

Aug - Sep Share pointVolume

Jell-O 19% 3.6 40
Tasty 4% 4 (new)
Total powders 25.30% 7.6 62
Pie fillings and cake mixes 32% -3.9 (no change)
Ice cream 42.70% -3.4 5
Total market 100% 13

Ex.1 : Consolidated Balance Sheet

Assets

Cash 20
Marketable securities 89
Receivables 180
Inventories 261
Pre-paid expenses 14
Current Assets 564
Land, buildings, equipment 332
LT receivables and sundry assets 7
Goodwill 26

Total 929

Liabilities and Stockholder's equity

Notes payable 22
Accounts payable 86
Accrued liabilities 73
Accrued income taxes 57
Current liabilities 238
Long-term notes 39
3 3/8% debentures 22
Other non-current liabilities 10
Deferred investement tax credit 9
Stockholders' equity
Common stock 164
Retained earnings 449
Treasury stock -2
Total stockholders' equity 611

Total 929

Shares outstanding (in millions) 25.127

Ex. 2 - Common stock prices of General foods Corporation

Year Low High Average

1958 24 39 31.5
 1959 37 1/8 53 7/8 45.5
1960 49 1/8 75 1/2 62.3125
1961 68 5/8 107 87.8125
1962 57 96 76.5
1963 77 5/8 90 1/2 84.0625
1964 78 1/4 93 1/4 85.75
1965 77 1/2 89 7/8 83.6875
1966 62 83 72.5
1967 65 1/4 81 73.125

Exhibit 3 : summary statistical data 1958- to 1967 (figures in millions, except per share data)_

1958 1959 1960 1961 1962

Income statement

Sales to customers (net) 1009 1053 1087 1160 1189

Cost of sales 724 734 725 764 769
Mkg., admn. & gen. exp. 181 205 236 261 267
EBIT 105 115 130 138 156
Taxes 57 61 69 71 84
PAT 48 54 61 67 72
Dividends - common shares 24 28 32 35 40
Retained earnings 24 26 29 32 32
EPS 1.99 2.21 2.48 2.69 2.9
DPS 1 1.15 1.3 1.4 1.6

MSGA/Sales 17.9 19.5 21.7 22.5 22.5

Increase in MSGA 24.0 31.0 25.0 6.0
Taxes/ PBT 0.542857 0.530435 0.530769 0.514493 0.538462
Assets, liabilities and stockholders equity

Inventories 169 149 154 189 183

Other current liabilities 144 180 200 171 204
Current liabilities 107 107 126 123 142
Working capital 206 222 230 237 245
Land, bldg, epmt (gross) 203 221 247 289 328
Land, bldg, epmt (net) 125 132 148 173 193
Long-term debt 49 44 40 37 35
Stockholders equity 287 315 347 384 419
Stockholders equity / share 11.78 12.87 14.07 15.46 16.8

Capital additions 28 24 35 40 42
Depreciation 11 14 15 18 21

Wages salaries and benefits 128 138 147 162 171

Employees (thousands) 21 22 22 25 28
Asset / employee (thousands) 21 22 23 22 22
Exhibit 6 : Financial evaluation of super project

Project cost details

Buildings 80
Machinery and equipment 120
Total investment required 200

Year 1968 1969 1970 1971 1972

Period 0 1 2 3 4 5

Net project cost 200 200 200 200 200

Accumulated depreciation 19 37 54 70 85
Net investment 181 163 146 130 115

Assets
Receivables 124 134 142 157 160
Inventories 207 222 237 251 266
Less: current liabilities -2 -82 -108 -138 -185

Net working capital 329 274 271 270 241

Incremental NWC 329 -55 -3 -1 -29

Operating Profit

Unit volume 1100 1200 1300 1400 1500

Gross sales 2200 2400 2600 2800 3000
Deductions 88 96 104 112 120
Net sales 2112 2304 2496 2688 2880
Cost of goods sold 1100 1200 1300 1400 1500
Gross profit 1012 1104 1196 1288 1380
Advertising expenses 1100 1050 1000 900 700
Start-up costs 15
Testmarketing expenses 360
Erosion of Jell-O 180 200 210 220 230
PBT -643 -146 -14 168 450
Taxes -334 -76 -7 87 234
Add: Investment tax credit -1 -1 -1 -1 -1
PAT -308 -69 -6 82 217

Alternative evaluations of super project

Incremental Facilities Fully
basis used basis allocated basis

Investment
Working capital 267 267 267
Fixed capital
Gross 200 653 672
Net 113 358 367
Total investment 380 625 634
Profit before taxes 239 211 157
ROFE 63% 34% 25%

Jell-O project
Building 200 x 2/3 = 133
Agglomerator 640 x 1/2 = 320
453
er share data)_

1963 1964 1965 1966 1967

1216 1338 1478 1555 1652

769 838 937 965 1012
274 322 362 406 449
170 179 177 185 193
91 95 91 91 94
79 84 86 94 99
45 50 50 53 55
34 34 36 41 44
3.14 3.33 3.44 3.73 3.93
1.8 2 2 2.1 2.2

22.5 24.1 24.5 26.1 27.2

7.0 48.0 40.0 44.0 43.0 29.8
0.535294 0.530726 0.514124 0.491892 0.487047

205 256 214 261 261

206 180 230 266 303
162 202 173 219 238
249 234 271 308 326
375 436 477 517 569
233 264 283 308 332
34 23 37 54 61
454 490 527 569 611
18.17 19.53 20.99 22.64 24.32

57 70 54 65 59
24 26 29 32 34

180 195 204 218 237

28 30 30 30 32
23 24 25 29 29
1973 1974 1975 1976 1977
6 7 8 9 10

200 200 200 200 200

98 110 121 131 140
102 90 79 69 60

160 169 169 178 178

266 281 281 296 296
-184 -195 -195 -207 -207

242 255 255 267 267

1 13 0 12 0

1500 1600 1600 1700 1700

3000 3200 3200 3400 3400
120 128 128 136 136
2880 3072 3072 3264 3264
1500 1600 1600 1700 1700
1380 1472 1472 1564 1564
700 730 730 750 750

230 240 240 250 250

450 502 502 564 564
234 261 261 293 293
-1 -1 -1 -1
217 242 242 272 271