Business Valuation and Analysis

This report provides a detailed analysis of business valuation and financial statements of a company. It covers trends, cash flow analysis, liquidity analysis, income analysis, and more. The report focuses on Harvey Norman, a successful retail group in Australia.

1
Business Valuation and Analysis

2
Executive summary
The report has covered all the information which is presented in the financial statements of the
company. For the identification of the trends, there has been carrying out of the vertical and
horizontal analysis which has been performed. By the help of that, all of the changes which are
taking place are identified and help in the evaluation of the position of the company. The
changes which are taking place in respect of the cash flows have been identified and in that the
cash flow for equity and firm both have been calculated separately. They show that company has
adequate cash balances which are maintained. The several ratios have been calculated and by
that the analysis has been made in respect of the income, liquidity, coverage, and solvency. In all
the aspects the business is gaining improvements. The risk and returns of the business have also
been taken into consideration and they are maintained adequately. The financial statements have
been projected and represented for further evaluation.

3
Table of Contents
Executive summary.........................................................................................................................2
Introduction......................................................................................................................................4
a) Company background and mission..............................................................................................4
b) Common size & horizontal analysis............................................................................................5
c) Cash flow analysis.......................................................................................................................7
d) Liquidity analysis........................................................................................................................8
e) Income analysis...........................................................................................................................9
f) Solvency analysis.........................................................................................................................9
g) Coverage....................................................................................................................................10
h) Growth and risk analysis...........................................................................................................11
i) Prospective analysis...................................................................................................................11
Conclusion.....................................................................................................................................12
References......................................................................................................................................13
Appendixes....................................................................................................................................15

4
Introduction
In the company, there are various financial aspects which are involved and required to be
analyzed in an appropriate manner. There will be analysis which will be performed for the same
by the use of the financial information that is available in the annual report of the company. The
proper evaluation will be made possible by considering the information for some years in the
past. In the report the financial analysis will be performed in context of Harvey Norman. The
information about the company and its mission will be provided. With that there will be
horizontal and vertical analysis that will be performed in respect of the financial statements of
the company. The cash flow which is involved in the business will also be analyzed to identify
the cash position of the business. It will be determined whether the company has appropriate
amount of cash available to meet the obligation. The liquidity of the company will be evaluated
and with that other analyzation will also be made in respect of income, capital structure,
coverage, and risk. There will also be the presentation of the prospective financial statements
which will be determining the position of the company in coming year.
a) Company background and mission
Harvey Norman is the retail group in Australia which is very successful and operated around 150
stores. The company was founded by Ian Norman and Gerry Harvey. The stores provide home
entertainment equipment, computers, and various home appliances. There is a unique franchise
model which is used by the company in which the properties are leased and owned. Under that a
part of the earnings is required to be expended on the local community and their welfare. All the
retail operations in the company are controlled in a very tight manner. The company adopts
various formats and the latest among them are Domayne which is an upscale store, furniture
store format and rebel sports chain (Harvey Norman, 2019). There are stores in various countries
and company is expanding in fast manner. The main mission of the company is to become the
world’s largest retail service provider and have integrated retail, franchising and property entity.
It is dealing with the fast-moving consumer goods in which growth is attained faster. It also aims
at providing the stakeholders with the appropriate returns and makes the company a place where
everyone likes to work by improving the workplace facilities.

5
b) Common size & horizontal analysis
The analysis of the financial statements is made and in that there is the undertaking of horizontal
and vertical analysis. By the help of that, the trend which is prevailing from many years is
analyzed and also the growths can be taken into account. In the horizontal analysis there is the
comparison which is made among various years by taking one year as base year. In case of the
vertical analysis the evaluation is made among the values of one year by taking a variable as the
base. The trends which are identified in relation to various aspects are provided below.
2014 2015 2016 2017 2018
480,000
500,000
520,000
540,000
560,000
580,000
600,000
620,000
640,000
660,000
680,000
569,057
552,603
580,805
625,112
660,337
Property, plant and equipment
Property, plant and
equipment
Linear (Property, plant and
equipment)
The graph shows the increase and decreases which is taking place in case of the plant, property,
and equipment due to various acquisitions and disposals. It can be identified that the decline was
faced in 2015 but after that there is continuous increase (Harvey Norman, 2018). Appendix 1
shows that highest increase was made in 2018 with 16.04%.

6
2014 2015 2016 2017 2018
0
500,000
1,000,000
1,500,000
2,000,000
2,500,000
1,513,662
1,617,151
1,795,7591,833,123
1,993,760
Sales revenue
Sales revenue
Linear (Sales revenue)
The sales of the company are fluctuating and it can be noted from the graph as well as appendix
1. There was rise all the years which is made and the frequency of the increase is getting higher.
There was increment of 6.84% in 2015 and then 18.64% in 2016 which rose to 21.11% in 2017
and finally 31.72% in 2018. By the help of this it can be said that further increment will be made
at even higher rate. This is taking place because of the expansion which is made by the company
in various places which yield more revenue.
2014 2015 2016 2017 2018
0
50,000
100,000
150,000
200,000
250,000
300,000
350,000
400,000
450,000
500,000
212,238
268,914
351,340
452,966
380,050
Profit after tax
Profit after tax
Linear (Profit after tax)
The changes which have been made in terms of the net profitability of the company have been

7
ascertained with the help of the analysis and they are represented in Appendix 1 (Harvey
Norman, 2017). The graphical presentation of them is made above for the better understanding
and it states that profits of the company rose in first four year and after that, there is some decline
which is made in 2018 which was mainly due to the increase in the administrative expenses.
c) Cash flow analysis
Cash is an important element of the business and it requires to be maintained in an effective
manner. Most of the changes which take place in the cash flow are because of the cash flow from
operations as various activities are involved in that (Bhundia, 2012). It has been noted that there
is a decline in cash flow in 2017 from $437691 in 2016 to $425140 in year 2017. This decline is
due to the fewer amounts of receipts which are made from the customers and franchisees. Also
the payments in relation to income tax have increased in 2017 which lead to decline in the
balance of cash. The cash balance again increased in 2018 with the increase in the amount which
is received from the franchise and customers.
The free cash flow for a firm will be as follows:
Particulars 2015 2016 2017 2018
NOPAT 292293.373 371765.925 467176.45 398934.51
Add: Non cash cost 77720 111108 102880 151156
Less: Increase in working
capital
85,200 -14,891 -16,835 138,529
FCFF 284813.37 497764.93 586891.45 411561.51
This is the amount which involves both the equity and debt aspects. The cash is the amount
which is available after considering all the elements in relation to them. This amount is available
with the firm and can be used in various manners (Bigelli and Sánchez-Vidal, 2012). This will
help the company to meet all the obligations on time and also will be able to invest the same for
further expansion. It can be seen that there is increase in the year 2016 and 2017 but after that the
decline is there in 2018 from $586891.45 to $411561.51. This is because of the large amount
which is invested as working capital in the company. The amount has been used in the business
and due to that the balance has declined.

8
The FCFF covers both the equity and debt but the cash flow which is available for equity holders
is identified as FCFE and the calculation for the same is also made which is as follows:
Particulars 2015 2016 2017 2018
FCFF 284813.37 497764.93 586891.45 411561.51
Add: Net borrowings 698,438 654,077 720,509 925,394
Less: Interest after tax 23,379 20,426 14,210 18,885
FCFE 959872.00 1131416.0
0
1293190.00 1318071.00
The amount which is available for equity funds is represented and it is calculated by adding back
the borrowings which are made. It can be seen that the amount is increasing in a continuous
manner and this shows that company will be able to make payments to the equity holders on time
which will make them satisfied.
d) Liquidity analysis
In the business, it is highly required that the liquidity shall be maintained in an effective manner.
This determines the company’s ability to meet the current expenses which will be arising in an
appropriate manner. For this current and quick ratio will be calculated in which the liquid
position of the company will be analyzed.
Particular
s
Formula 2014 2015 2016 2017 2018
Current
ratio
Current Assets/current
liabilities
1.23 1.31 1.26 1.50 1.59
Quick ratio Quick assets/current
liabilities
0.99 1.08 1.01 1.07 1.17
The calculations which are made show that the liquidity position of the company is increasing as
there is rise in both the current as well as quick ratios. It has been identified that the inventory is
increasing in all the years (Harvey Norman, 2016). The downfall in the current assets has been
noted in 2017 but the similar decline was made in current liabilities which balanced the situation.
The amount of the current liabilities has dropped in 2017 and 2018 as the amount of trade

9
payables has declined. It means that company has paid its liabilities and now is having a better
liquid position.
e) Income analysis
The earnings are the main reason for which all the businesses are carried and it shall be evaluated
in an effective manner. There shall be proper analyzation of the same so that all the changes
which are taking them in their respect can be identified. In that the reasons which are responsible
for the same will also be taken into consideration. This will be helping in taking such actions
which will be improving the position in the coming periods.
Particulars Formula 2014 2015 2016 2017 2018
EBIT Margin EBIT/sales*100 22.30 25.41 29.09 36.00 27.91
Gross profit
margin
Gross profit/sales*100 29.65 30.32 31.40 32.60 33.48
Net profit
margin
Net profit/sales*100 14.02 16.63 19.56 24.71 19.06
EPS PAT/No of shares 0.2 0.25 0.31 0.4 0.33
ROA Net profit/Total
assets*100
5.05% 6.22% 7.93% 10.81% 8.30%
The calculation of ratios has been made for the analyzation of the income position. In these
various ratios are covered which includes EBIT margin in which the return which is made on the
sales without giving consideration to the interest and tax is considered. This is the amount which
is gained on the operations of the company to identify whether they are performed in profitable
manner or not. It can be noted that the rise is made in all the ratios and this shows that company
is performing well in all aspects (Williams and Dobelman, 2017). There is increase in all the
ratios but a decline is noted in the return on assets in 2018 which is due to the increase in the
total assets of the company.
f) Solvency analysis
The capital structure of the company is required to be maintained in an adequate manner and in
that there are two main sources which are involved. They are equity and debts and the proportion

10
at which they shall be maintained shall be managed in an effective manner (Park and Jang,
2013). The total debts which are available with the company shall be identified and then it shall
be analyzed whether the company will be able to pay the obligations in relation to them or not.
For the evaluation of the same, there are two ratios which have been calculated above.
Particulars Formula 2014 2015 2016 2017 2018
Debt to
equity
Total liabilities/total
equity
0.69 0.69 0.65 0.49 0.56
Debt ratio Total liabilities/ total
assets
0.41 0.41 0.39 0.33 0.36
The debt to equity ratio has been calculated and it shows that debts are being repaid and they are
reducing with time. Company has an adequate amount of the equity and assets which will be
used to pay off the liabilities as when they will be arising. Company has certain financial assets
which are held will be providing it will be required returns. The position of the company is
appropriate and it has the scope to increase the debt in case of requirement.
g) Coverage
In all the businesses there are certain loans which are taken and there is the need to pay the
interest on the same. The company shall have an adequate amount of the earnings by which all
the obligations will be met in an adequate manner. The coverage ratio is calculated in which the
relation between the interest and operating earnings is ascertained.
Particulars Formula 2014 2015 2016 2017 2018
Interest
coverage
EBIT/Interest 9.26 12.50 18.20 32.88 21.12
It can be noted that there is an increase in the ratio in all except the last one. The ratio was 9.26
in 2014 and increased till 32.88 in 2017 which shows that company is operating in very efficient
manner and is able to meet the liabilities in proper manner (Bonazzi and Iotti, 2014). The interest
will be covered easily and there will be no issues which will be faced in this respect. The decline
in the last year is because of the decline in the earnings which is made as the expenses in that

11
year have increased. Even in this case also the position is good and company will be able to
maintain the obligations effectively.
h) Growth and risk analysis
The business shall be managed in such a manner that there is attainment of continuous growth.
There is undertaking of the various steps by which this will be made possible. The risk in the
business is required to be maintained so that it does not affect the business in an adverse manner
(Barde and Barde, 2012). The same will be done with the help of identification of the standard
deviation which identifies the risk which is involved in the business. The calculation of the same
is shown below in table.
Particulars Formula 2014 2015 2016 2017 2018
EBIT 337,498 410,972 522,469 659,878 556,516
ROA Net profit/Total
assets*100
5.05% 6.22% 7.93% 10.81% 8.30%
Standard deviation 238647.
1
290601 369441.3 466604.1 393516.2
It can be noted that the company is maintaining proper growth as the return on the assets is
increasing. There is a continuous increase which is noted and this shows that company is
working appropriately and maintaining the required level of growth. The standard deviations
have been calculated and it is identified that there is increase in the same also. With the rise in
the returns the risk is also increasing (Harvey Norman, 2015). The company will be required to
take the appropriate steps by which the risk will be maintained and the growth will be further
enhanced.
i) Prospective analysis
The trends have been identified form the analysis which has been conducted in relation to the
company. In that, all of the aspects have been covered and the increase and decrease which is
taking place are calculated. The horizontal analysis shows the proper amount by which the
incomes, expenses, and assets are changing in the company. By taking them into account the risk
or other elements which need to be considered are identified and will be used in the future
calculations and projections (Ahrendsen and Katchova, 2012). On the basis of the identified data

12
there are the projected financial statements which have been prepared and they are represented in
Appendix 2.
From that, it can be said that the current assets of the company are declining. This should affect
the working capital of the business but as the current liabilities are also declining that too at
faster rate so this will not be taking place. There will be maintenance of the working capital in
adequate manner. The non-current assets of the company are increasing which shows that
company will be making the investment in the fixed assets and by that the return will also be
increasing as they will raise the efficiency of the business. Company is maintaining the returns
and risk which is involved and earnings which are made on each share is also increasing. This
shows that the position of the company will be further enhanced in the coming period.
Conclusion
The report has provided a complete analysis of the financial position of Harvey Norman. In that
there has been identification of the changes which are taking place in the past few years and for
that horizontal and vertical form of analysis has been performed with reference to the financial
statements of the company. The cash flow position of the company is also evaluated and in that
the cash flow from the operation is taken into consideration. With that the free cash flow which
is available with the firm and equity are also ascertained and they show that company has
adequate funds. The various analyses have been performed by which all the aspects of the
business are evaluated and they show that company is performing in well manner in all the years.
The return and risk which are involved in the business have also been shown and there has been
representation of the projected financial statements of the company which shows further growth.

13
References
Ahrendsen, B.L. and Katchova, A.L., 2012. Financial ratio analysis using ARMS
data. Agricultural Finance Review, 72(2), pp.262-272.
Barde, M.P. and Barde, P.J., 2012. What to use to express the variability of data: Standard
deviation or standard error of mean?. Perspectives in clinical research, 3(3), p.113.
Bhundia, A., 2012. A comparative study between free cash flows and earnings
management. Business Intelligence Journal, 5(1), pp.123-129.
Bigelli, M. and Sánchez-Vidal, J., 2012. Cash holdings in private firms. Journal of Banking &
Finance, 36(1), pp.26-35.
Bonazzi, G. and Iotti, M., 2014. Interest coverage ratios (ICRs) and financial sustainability:
Application to firms with bovine dairy livestock. American Journal of Agricultural and
Biological Sciences, 9(4), p.482.
Harvey Norman. (2015) Annual report. [Online] Available at:
http://clients.weblink.com.au/news/pdf2/01667098.pdf [Accessed 11 September 2019]
Harvey Norman. (2016) Annual report. [Online] Available at:
http://clients.weblink.com.au/news/pdf2/01784649.pdf [Accessed 11 September 2019]
Harvey Norman. (2017) Annual report. [Online] Available at:
http://clients.weblink.com.au/news/pdf2/01902066.pdf [Accessed 11 September 2019]
Harvey Norman. (2018) Annual report. [Online] Available at:
http://clients.weblink.com.au/news/pdf2/02027865.pdf [Accessed 11 September 2019]
Harvey Norman. (2019) COMPANY OVERVIEW. [Online] Available at:
http://www.harveynormanholdings.com.au/company [Accessed 11 September 2019]
Park, K. and Jang, S.S., 2013. Capital structure, free cash flow, diversification and firm
performance: A holistic analysis. International Journal of Hospitality Management, 33, pp.51-

14
63.
Williams, E.E. and Dobelman, J.A., 2017. Financial statement analysis. World Scientific Book
Chapters, pp.109-169.
1.

15
Appendixes
Appendix 1
Horizontal analysis
Balance
sheet
Increase in amount Increase in percent
Particul
ars
2014 2015 201
6
201
7
201
8
201
5
201
6
201
7
201
8
201
5
201
6
201
7
201
8
Current
Assets
Cash
and cash
equivale
nts
144,9
57
185,8
40
139,
874
80,2
24
170,
544
40,
883
-
5,0
83
-
64,
733
25,
587
28.
20
%
-
3.51
%
-
44.6
6%
17.6
5%
Trade
and
other
receivab
les
1,062
,284
1,110
,668
1,09
6,57
2
640,
686
724,
690
48,
384
34,
288
-
421
,59
8
-
337
,59
4
4.5
5%
3.23
%
-
39.6
9%
-
31.7
8%
Other
financial
assets
21,59
6
26,14
8
26,2
04
29,1
91
31,4
63
4,5
52
4,6
08
7,5
95
9,8
67
21.
08
%
21.3
4%
35.1
7%
45.6
9%
Inventor
ies
297,6
70
298,3
81
315,
746
315,
968
345,
287
711 18,
076
18,
298
47,
617
0.2
4%
6.07
%
6.15
%
16.0
0%
Other
assets
23,01
0
23,07
2
26,7
03
45,8
78
45,1
44
62 3,6
93
22,
868
22,
134
0.2
7%
16.0
5%
99.3
8%
96.1
9%
Intangib
le assets
541 476 448 486 490 -65 -93 -55 -51 -
12.
01
%
-
17.1
9%
-
10.1
7%
-
9.43
%
Total
current
assets
1,550
,058
1,644
,585
1,60
5,54
7
1,11
2,43
3
1,31
7,61
8
94,
527
55,
489
-
437
,62
5
-
232
,44
0
6.1
0%
3.58
%
-
28.2
3%
-
15.0
0%
Non-
Current
Assets
Trade
and
other
receivab
64,52
6
71,81
5
74,3
82
78,7
77
78,4
43
7,2
89
9,8
56
14,
251
13,
917
11.
30
%
15.2
7%
22.0
9%
21.5
7%

16
les
Investm
ents
account
ed for
using
equity
method
24,91
2
21,42
5
24,8
28
26,3
55
4,49
7
-
3,4
87
-84 1,4
43
-
20,
415
-
14.
00
%
-
0.34
%
5.79
%
-
81.9
5%
Other
financial
assets
16,17
6
16,57
0
18,7
51
30,0
76
18,2
83
394 2,5
75
13,
900
2,1
07
2.4
4%
15.9
2%
85.9
3%
13.0
3%
Property
, plant
and
equipme
nt
569,0
57
552,6
03
580,
805
625,
112
660,
337
-
16,
454
11,
748
56,
055
91,
280
-
2.8
9%
2.06
%
9.85
%
16.0
4%
Investm
ent
properti
es
1,903
,504
1,935
,936
2,04
6,29
5
2,24
1,75
4
2,42
9,39
7
32,
432
142
,79
1
338
,25
0
525
,89
3
1.7
0%
7.50
%
17.7
7%
27.6
3%
Intangib
le assets
77,89
8
83,72
7
81,1
92
75,2
37
69,0
67
5,8
29
3,2
94
-
2,6
61
-
8,8
31
7.4
8%
4.23
%
-
3.42
%
-
11.3
4%
Total
non-
current
assets
2,656
,073
2,682
,076
2,82
6,25
3
3,07
7,31
1
3,26
0,02
4
26,
003
170
,18
0
421
,23
8
603
,95
1
0.9
8%
6.41
%
15.8
6%
22.7
4%
Total
Assets
4,206
,131
4,326
,661
4,43
1,80
0
4,18
9,74
4
4,57
7,64
2
120
,53
0
225
,66
9
-
16,
387
371
,51
1
2.8
7%
5.37
%
-
0.39
%
8.83
%
Current
Liabiliti
es
Trade
and
other
payables
740,6
81
781,5
91
713,
553
238,
628
289,
986
40,
910
-
27,
128
-
502
,05
3
-
450
,69
5
5.5
2%
-
3.66
%
-
67.7
8%
-
60.8
5%
Interest-
bearing
loans
and
borrowi
ngs
469,8
72
408,4
38
453,
035
386,
651
422,
191
-
61,
434
-
16,
837
-
83,
221
-
47,
681
-
13.
07
%
-
3.58
%
-
17.7
1%
-
10.1
5%
Income 24,14 34,80 42,7 42,5 15,6 10, 18, 18, - 44. 76.9 76.2 -

17
tax
payable
2 7 11 41 08 665 569 399 8,5
34
18
%
2% 1% 35.3
5%
Other
liabilitie
s
2,043 2,870 41,0
16
41,5
71
66,8
25
827 38,
973
39,
528
64,
782
40.
48
%
190
7.64
%
193
4.80
%
317
0.93
%
Provisio
ns
25,49
4
23,49
0
28,6
97
34,0
34
35,3
54
-
2,0
04
3,2
03
8,5
40
9,8
60
-
7.8
6%
12.5
6%
33.5
0%
38.6
8%
Total
current
liabilitie
s
1,262
,232
1,251
,196
1,27
9,01
2
743,
425
829,
964
-
11,
036
16,
780
-
518
,80
7
-
432
,26
8
-
0.8
7%
1.33
%
-
41.1
0%
-
34.2
5%
Non-
Current
Liabiliti
es
Interest-
bearing
loans
and
borrowi
ngs
238,0
94
290,0
00
201,
042
333,
858
503,
203
51,
906
-
37,
052
95,
764
265
,10
9
21.
80
%
-
15.5
6%
40.2
2%
111.
35
%
Provisio
ns
10,29
3
12,24
9
14,7
10
13,0
52
11,6
45
1,9
56
4,4
17
2,7
59
1,3
52
19.
00
%
42.9
1%
26.8
0%
13.1
4%
Deferre
d
income
tax
liabilitie
s
188,9
80
198,7
28
226,
254
267,
219
280,
735
9,7
48
37,
274
78,
239
91,
755
5.1
6%
19.7
2%
41.4
0%
48.5
5%
Other
liabilitie
s
15,42
6
17,62
8
22,1
08
19,2
83
14,1
63
2,2
02
6,6
82
3,8
57
-
1,2
63
14.
27
%
43.3
2%
25.0
0%
-
8.19
%
Total
non-
current
liabilitie
s
452,7
93
518,6
05
464,
114
633,
412
809,
746
65,
812
11,
321
180
,61
9
356
,95
3
14.
53
%
2.50
%
39.8
9%
78.8
3%
Total
Liabiliti
es
1,715
,025
1,769
,801
1,74
3,12
6
1,37
6,83
7
1,63
9,71
0
54,
776
28,
101
-
338
,18
8
-
75,
315
3.1
9%
1.64
%
-
19.7
2%
-
4.39
%

18
NET
ASSET
S
2,491
,106
2,556
,860
2,68
8,67
4
2,81
2,90
7
2,93
7,93
2
65,
754
197
,56
8
321
,80
1
446
,82
6
2.6
4%
7.93
%
12.9
2%
17.9
4%
Equity
Contrib
uted
equity
259,6
10
380,3
28
385,
296
386,
309
388,
381
120
,71
8
125
,68
6
126
,69
9
128
,77
1
46.
50
%
48.4
1%
48.8
0%
49.6
0%
Reserve
s
102,7
35
113,2
90
155,
814
174,
950
185,
384
10,
555
53,
079
72,
215
82,
649
10.
27
%
51.6
7%
70.2
9%
80.4
5%
Retaine
d profits
2,109
,032
2,043
,463
2,12
5,18
6
2,22
9,20
0
2,33
7,24
1
-
65,
569
16,
154
120
,16
8
228
,20
9
-
3.1
1%
0.77
%
5.70
%
10.8
2%
Parent
entity
interests
2,471
,377
2,537
,081
2,66
6,29
6
2,79
0,45
9
2,91
1,00
6
65,
704
194
,91
9
319
,08
2
439
,62
9
2.6
6%
7.89
%
12.9
1%
17.7
9%
Non-
controlli
ng
interests
19,72
9
19,77
9
22,3
78
22,4
48
26,9
26
50 2,6
49
2,7
19
7,1
97
0.2
5%
13.4
3%
13.7
8%
36.4
8%
TOTAL
EQUIT
Y
2,491
,106
2,556
,860
2,68
8,67
4
2,81
2,90
7
2,93
7,93
2
65,
754
197
,56
8
321
,80
1
446
,82
6
2.6
4%
7.93
%
12.9
2%
17.9
4%
Partic
ulars
2014 2015 201
6
201
7
201
8
201
5
201
6
201
7
201
8
201
5
201
6
201
7
201
8
Sales
revenu
e
1,513
,662
1,617
,151
1,79
5,75
9
1,83
3,12
3
1,99
3,76
0
103,
489
282,
097
319,
461
480,
098
6.84
%
18.6
4%
21.1
1%
31.7
2%
Cost
of
sales
-
1,064
,892
-
1,126
,894
-
1,23
1,93
3
-
1,23
5,60
2
-
1,32
6,33
9
-
62,0
02
-
167,
041
-
170,
710
-
261,
447
5.82
%
15.6
9%
16.0
3%
24.5
5%
Gross
profit
448,7
70
490,2
57
563,
826
597,
521
667,
421
41,4
87
115,
056
148,
751
218,
651
9.24
%
25.6
4%
33.1
5%
48.7
2%
Reven
ues
and
other
incom
e
1,033
,624
1,116
,829
1,23
0,48
4
1,30
5,34
4
1,24
0,70
3
83,2
05
196,
860
271,
720
207,
079
8.05
%
19.0
5%
26.2
9%
20.0
3%

19
items
Distri
bution
expen
ses
-
15,11
4
-
34,28
7
-
34,5
54
-
36,1
89
-
41,6
02
-
19,1
73
-
19,4
40
-
21,0
75
-
26,4
88
126.
86
%
128.
62
%
139.
44
%
175.
25
%
Marke
ting
expen
ses
-
348,9
52
-
370,1
24
-
385,
664
-
384,
885
-
374,
322
-
21,1
72
-
36,7
12
-
35,9
33
-
25,3
70
6.07
%
10.5
2%
10.3
0%
7.27
%
Occup
ancy
expen
ses
-
233,8
81
-
229,0
81
-
232,
002
-
226,
994
-
241,
220
4,80
0
1,87
9
6,88
7
-
7,33
9
-
2.05
%
-
0.80
%
-
2.94
%
3.14
%
Admi
nistrat
ive
expen
ses
-
427,6
04
-
447,1
98
-
511,
182
-
492,
453
-
585,
683
-
19,5
94
-
83,5
78
-
64,8
49
-
158,
079
4.58
%
19.5
5%
15.1
7%
36.9
7%
Other
expen
ses
-
136,8
46
-
124,0
82
-
112,
795
-
107,
666
-
114,
573
12,7
64
24,0
51
29,1
80
22,2
73
-
9.33
%
-
17.5
8%
-
21.3
2%
-
16.2
8%
Financ
e costs
-
36,43
7
-
32,87
2
-
28,7
06
-
20,0
72
-
26,3
44
3,56
5
7,73
1
16,3
65
10,0
93
-
9.78
%
-
21.2
2%
-
44.9
1%
-
27.7
0%
Share
of net
profit
of
joint
ventur
e
entitie
s
17,50
1
8,658 4,35
6
5,20
0
5,79
2
-
8,84
3
-
13,1
45
-
12,3
01
-
11,7
09
-
50.5
3%
-
75.1
1%
-
70.2
9%
-
66.9
0%
Profit
before
incom
e tax
301,0
61
378,1
00
493,
763
639,
806
530,
172
77,0
39
192,
702
338,
745
229,
111
25.5
9%
64.0
1%
112.
52
%
76.1
0%
Incom
e tax
expen
se
-
88,82
3
-
109,1
86
-
142,
423
-
186,
840
-
150,
122
-
20,3
63
-
53,6
00
-
98,0
17
-
61,2
99
22.9
3%
60.3
4%
110.
35
%
69.0
1%
Profit
after
212,2
38
268,9
14
351,
340
452,
966
380,
050
56,6
76
139,
102
240,
728
167,
812
26.7
0%
65.5
4%
113.
42
79.0
7%

20
tax %
Vertical analysis
Balance
sheet
Increase in percent
Particulars 2014 2015 2016 2017 2018 2014 2015 2016 2017 2018
Current
Assets
Cash and
cash
equivalents
144,95
7
185,84
0
139,8
74
80,22
4
170,5
44
3.45
%
4.30
%
3.16
%
1.91
%
3.73
%
Trade and
other
receivables
1,062,2
84
1,110,6
68
1,096
,572
640,6
86
724,6
90
25.26
%
25.67
%
24.74
%
15.29
%
15.83
%
Other
financial
assets
21,596 26,148 26,20
4
29,19
1
31,46
3
0.51
%
0.60
%
0.59
%
0.70
%
0.69
%
Inventories 297,67
0
298,38
1
315,7
46
315,9
68
345,2
87
7.08
%
6.90
%
7.12
%
7.54
%
7.54
%
Other assets 23,010 23,072 26,70
3
45,87
8
45,14
4
0.55
%
0.53
%
0.60
%
1.10
%
0.99
%
Intangible
assets
541 476 448 486 490 0.01
%
0.01
%
0.01
%
0.01
%
0.01
%
Total
current
assets
1,550,0
58
1,644,5
85
1,605
,547
1,112
,433
1,317
,618
36.85
%
38.01
%
36.23
%
26.55
%
28.78
%
Non-
Current
Assets
Trade and
other
receivables
64,526 71,815 74,38
2
78,77
7
78,44
3
1.53
%
1.66
%
1.68
%
1.88
%
1.71
%
Investments
accounted
for using
equity
method
24,912 21,425 24,82
8
26,35
5
4,497 0.59
%
0.50
%
0.56
%
0.63
%
0.10
%
Other
financial
assets
16,176 16,570 18,75
1
30,07
6
18,28
3
0.38
%
0.38
%
0.42
%
0.72
%
0.40
%
Property,
plant and
equipment
569,05
7
552,60
3
580,8
05
625,1
12
660,3
37
13.53
%
12.77
%
13.11
%
14.92
%
14.43
%

21
Investment
properties
1,903,5
04
1,935,9
36
2,046
,295
2,241
,754
2,429
,397
45.26
%
44.74
%
46.17
%
53.51
%
53.07
%
Intangible
assets
77,898 83,727 81,19
2
75,23
7
69,06
7
1.85
%
1.94
%
1.83
%
1.80
%
1.51
%
Total non-
current
assets
2,656,0
73
2,682,0
76
2,826
,253
3,077
,311
3,260
,024
63.15
%
61.99
%
63.77
%
73.45
%
71.22
%
Total Assets 4,206,1
31
4,326,6
61
4,431
,800
4,189
,744
4,577
,642
100.0
0%
100.0
0%
100.0
0%
100.0
0%
100.0
0%
Current
Liabilities
Trade and
other
payables
740,68
1
781,59
1
713,5
53
238,6
28
289,9
86
17.61
%
18.06
%
16.10
%
5.70
%
6.33
%
Interest-
bearing loans
and
borrowings
469,87
2
408,43
8
453,0
35
386,6
51
422,1
91
11.17
%
9.44
%
10.22
%
9.23
%
9.22
%
Income tax
payable
24,142 34,807 42,71
1
42,54
1
15,60
8
0.57
%
0.80
%
0.96
%
1.02
%
0.34
%
Other
liabilities
2,043 2,870 41,01
6
41,57
1
66,82
5
0.05
%
0.07
%
0.93
%
0.99
%
1.46
%
Provisions 25,494 23,490 28,69
7
34,03
4
35,35
4
0.61
%
0.54
%
0.65
%
0.81
%
0.77
%
Total
current
liabilities
1,262,2
32
1,251,1
96
1,279
,012
743,4
25
829,9
64
30.01
%
28.92
%
28.86
%
17.74
%
18.13
%
Non-
Current
Liabilities
Interest-
bearing loans
and
borrowings
238,09
4
290,00
0
201,0
42
333,8
58
503,2
03
5.66
%
6.70
%
4.54
%
7.97
%
10.99
%
Provisions 10,293 12,249 14,71
0
13,05
2
11,64
5
0.24
%
0.28
%
0.33
%
0.31
%
0.25
%
Deferred
income tax
liabilities
188,98
0
198,72
8
226,2
54
267,2
19
280,7
35
4.49
%
4.59
%
5.11
%
6.38
%
6.13
%
Other
liabilities
15,426 17,628 22,10
8
19,28
3
14,16
3
0.37
%
0.41
%
0.50
%
0.46
%
0.31
%
Total non- 452,79 518,60 464,1 633,4 809,7 10.77 11.99 10.47 15.12 17.69

22
current
liabilities
3 5 14 12 46 % % % % %
Total
Liabilities
1,715,0
25
1,769,8
01
1,743
,126
1,376
,837
1,639
,710
40.77
%
40.90
%
39.33
%
32.86
%
35.82
%
Equity
Contributed
equity
259,61
0
380,32
8
385,2
96
386,3
09
388,3
81
6.17
%
8.79
%
8.69
%
9.22
%
8.48
%
Reserves 102,73
5
113,29
0
155,8
14
174,9
50
185,3
84
2.44
%
2.62
%
3.52
%
4.18
%
4.05
%
Retained
profits
2,109,0
32
2,043,4
63
2,125
,186
2,229
,200
2,337
,241
50.14
%
47.23
%
47.95
%
53.21
%
51.06
%
Parent entity
interests
2,471,3
77
2,537,0
81
2,666
,296
2,790
,459
2,911
,006
58.76
%
58.64
%
60.16
%
66.60
%
63.59
%
Non-
controlling
interests
19,729 19,779 22,37
8
22,44
8
26,92
6
0.47
%
0.46
%
0.50
%
0.54
%
0.59
%
TOTAL
EQUITY
2,491,1
06
2,556,8
60
2,688
,674
2,812
,907
2,937
,932
59.23
%
59.10
%
60.67
%
67.14
%
64.18
%
Total equity
and liability
4,206,1
31
4,326,6
61
4,431
,800
4,189
,744
4,577
,642
100.0
0%
100.0
0%
100.0
0%
100.0
0%
100.0
0%
Income statement
Particul
ars
2014 2015 2016 2017 2018 Increase in percent
2014 2015 2016 2017 2018
Sales
revenue
1,513,6
62
1,617,1
51
1,795,
759
1,833,
123
1,993,
760
100.0
0%
100.0
0%
100.0
0%
100.0
0%
100.0
0%
Cost of
sales
-
1,064,8
92
-
1,126,8
94
-
1,231,
933
-
1,235,
602
-
1,326,
339
-
70.35
%
-
69.68
%
-
68.60
%
-
67.40
%
-
66.52
%
Gross
profit
448,770 490,257 563,8
26
597,5
21
667,4
21
29.65
%
30.32
%
31.40
%
32.60
%
33.48
%
Revenue
s and
other
income
items
1,033,6
24
1,116,8
29
1,230,
484
1,305,
344
1,240,
703
68.29
%
69.06
%
68.52
%
71.21
%
62.23
%
Distribut
ion
expenses
-15,114 -34,287 -
34,55
4
-
36,18
9
-
41,60
2
-
1.00
%
-
2.12
%
-
1.92
%
-
1.97
%
-
2.09
%

23
Marketin
g
expenses
-
348,952
-
370,124
-
385,6
64
-
384,8
85
-
374,3
22
-
23.05
%
-
22.89
%
-
21.48
%
-
21.00
%
-
18.77
%
Occupan
cy
expenses
-
233,881
-
229,081
-
232,0
02
-
226,9
94
-
241,2
20
-
15.45
%
-
14.17
%
-
12.92
%
-
12.38
%
-
12.10
%
Administ
rative
expenses
-
427,604
-
447,198
-
511,1
82
-
492,4
53
-
585,6
83
-
28.25
%
-
27.65
%
-
28.47
%
-
26.86
%
-
29.38
%
Other
expenses
-
136,846
-
124,082
-
112,7
95
-
107,6
66
-
114,5
73
-
9.04
%
-
7.67
%
-
6.28
%
-
5.87
%
-
5.75
%
Finance
costs
-36,437 -32,872 -
28,70
6
-
20,07
2
-
26,34
4
-
2.41
%
-
2.03
%
-
1.60
%
-
1.09
%
-
1.32
%
Share of
net profit
of joint
venture
entities
17,501 8,658 4,356 5,200 5,792 1.16
%
0.54
%
0.24
%
0.28
%
0.29
%
Profit
before
income
tax
301,061 378,100 493,7
63
639,8
06
530,1
72
19.89
%
23.38
%
27.50
%
34.90
%
26.59
%
Income
tax
expense
-88,823 -
109,186
-
142,4
23
-
186,8
40
-
150,1
22
-
5.87
%
-
6.75
%
-
7.93
%
-
10.19
%
-
7.53
%
Profit
after tax
212,238 268,914 351,3
40
452,9
66
380,0
50
14.02
%
16.63
%
19.56
%
24.71
%
19.06
%
Appendix 2: projected financial statements
Projected balance sheet
Particulars Average
increase
or
decrease
2019 2018
Current Assets
Cash and cash
equivalents
-0.58% 169559.
8
170,544
Trade and other
receivables
-15.92% 609309.
5
724,690

24
Other financial assets 30.82% 41159.3
3
31,463
Inventories 7.11% 369849.
9
345,287
Other assets 52.97% 69058.4
5
45,144
Intangible assets -12.20% 430.221
8
490
Total current assets -8.39% 1207102 1,317,618
Non-Current Assets
Trade and other
receivables
17.56% 92214.5
3
78,443
Investments accounted
for using equity
method
-22.62% 3479.66 4,497
Other financial assets 29.33% 23644.9
3
18,283
Property, plant and
equipment
6.27% 701713.
9
660,337
Investment properties 13.65% 2761027 2,429,397
Intangible assets -0.76% 68541.8
9
69,067
Total non-current
assets
11.50% 3634797 3,260,024
Total Assets 4.17% 4768459 4,577,642
Current Liabilities
Trade and other
payables
-31.69% 198081.
7
289,986
Interest-bearing loans
and borrowings
-11.13% 375204.
3
422,191
Income tax payable 40.49% 21927.4
6
15,608
Other liabilities 1763.46% 1245258 66,825
Provisions 19.22% 42148.7
7
35,354
Total current
liabilities
-18.72% 674566.
5
829,964
Non-Current
Liabilities

25
Interest-bearing loans
and borrowings
39.45% 701724.
3
503,203
Provisions 25.46% 14610.2
7
11,645
Deferred income tax
liabilities
28.71% 361330.
8
280,735
Other liabilities 18.60% 16797.5
6
14,163
Total non-current
liabilities
33.94% 1084571 809,746
Total Liabilities -4.82% 1560683 1,639,710
NET ASSETS 10.36% 3242194 2,937,932
Equity
Contributed equity 48.33% 576084 388,381
Reserves 53.17% 283953.
2
185,384
Retained profits 3.54% 2420069 2,337,241
Parent entity interests 10.31% 3211171 2,911,006
Non-controlling
interests
15.99% 31230.2
2
26,926
TOTAL EQUITY 10.36% 3242194 2,937,932
Income statement
Particulars Average
increase
or
decrease
2019 2018
Sales revenue 19.57% 2384021 1,993,760
Cost of sales 15.52% -
1532223
-
1,326,339
Gross profit 29.19% 862226.
7
667,421
Revenues and other
income items
18.35% 1468427 1,240,703
Distribution expenses 142.54% -100903 -41,602
Marketing expenses 8.54% -406285 -374,322

26
Occupancy expenses -0.67% -239614 -241,220
Administrative
expenses
19.07% -697347 -585,683
Other expenses -16.13% -96097.6 -114,573
Finance costs -25.90% -19520 -26,344
Share of net profit of
joint venture entities
-65.71% 1986.21
2
5,792
Profit before income
tax
69.55% 898926.
6
530,172
Income tax expense 65.66% -248690 -150,122
Profit after tax 71.18% 650584.
8
380,050