Financial Analysis of Simonds Farsons Cisk PLC and Heineken Holding N.V.

This document provides a comprehensive financial analysis of Simonds Farsons Cisk PLC and Heineken Holding N.V. It includes vertical analysis, horizontal analysis, and ratio analysis to evaluate the financial performance of both companies.

Financial Analysis
Management &
Enterprise

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
TASK 2 .........................................................................................................................................13
TASK 3 .........................................................................................................................................14
CONCLUSION..............................................................................................................................15
REFERENCES..............................................................................................................................17
APPENDIX....................................................................................................................................18
.......................................................................................................................................................29

INTRODUCTION
The word financial analysis is a structured method of analysing information from
different financial statements in order to accurately determine the financial situation of
businesses (Kim and Jeon, 2015). There are different kinds of financial reports like statement of
financial position, statement of comprehensive income and cash flow position with the purpose
of obtaining important financial data. The purpose of the project document is to evaluate and
compare corporations ' financial results form 2015-2018. The study mainly based on two firms
which are SIMONDS FARSONS CISK PLC and HEINEKEN HOLDING N.V evaluating the
financial situation. Different types of techniques like horizontal analysis and vertical analysis,
ratio analysis are implemented subject to overall analysis of financial position of companies. At
the end of the chapter. At last, an evaluation of cash flow statement of both the organisation done
to analyse the flow of cash in operations.
TASK 1
Introduction of both companies:
Heineken company - It is a Dutch scotch ale that Gerald Adriaan Guinness founded in
Holland in 1864. The company works in 70 nations and has a strong portfolio of goods. More
over 250 locally and internationally specialty beers are produced and offered. The key goal of
such an organization is to focus on developing value that allows them to achieve core
performance (Lin, 2012).
Farsons Company - Formed in 1966, this corporation runs its operations in wine, beer,
coffee, etc. development & delivery. Earlier, the business was identified as Wands Limited. The
headquarters are located in Malta, Birkirkara. Blue Label Ale, Cisk Lager and many others are
the main and most popular items of this business. Although, it is a non-bank business firm, the
business is traded on the Malta stock exchange (Barashian and Pronnikova, 2016).
(a) Vertical analysis
Heineken
Income Statement:
Depending on Heineken Plc's updated comprehensive income statement, it can be
determined that it is structured according to 100 percent of revenue calculation. It was improved
significantly over the period from 2015 to 2017. It could be noted that their operating profits

dropped to 51.29 percent in 2018. A declaration of profits contains specific information on
productivity and spending. Nevertheless, over the four periods 2015, 2016, 2017 and 2018, their
net profits fluctuated. As in 2015, it fell by 4.67 percent in the year to 3.75 percent. This
increased or decreased in other years. It rose became 4.46 percent as in 2017. As in 2015, it fell
by 4.67 percent during the year to 3.75 percent. It growing and reduced in other years. As in
2017, it improved became 4.46% but declined again in 2018 to 4.28%.
Balance sheet:
Depending on Heineken's vertical financial position statement review, this can be
determined that certain products are depending on the 100% book value (Rui, 2012). It is
estimated in all four accounting periods; their non-current assets had decreased. It was 84.32
percent in the beginning year of 2015, which fell substantially as 79.31 percent in 2016, 79.90 in
2017 even 78.38 percent in 2018. On the other hand, in deemed four financial years, the cost of
current assets increases and decreases. This was 15.68 percent, like in 2015, which increased by
31.95 percent in 2016 and have become 20.69 percent. Even though it declined by a decent
margin in 2017 and have become 20.10% in 2017, it rose by 21.62% in 2018.
This can be measured throughout the sense of investor assets that its price has continued
to rise over all four accounting period. Beginning in 2015, this can be found that its price was
down 17.90 percent in 2016 it was down 16.78 percent. While this was 16.16 percent in 2017 &
2018 & 17.06 percent. Some of the main advantages for the organization is that their current
liabilities would decrease between 2016 and 2018. In contrast to their multi-current liabilities,
during span from 2015 to 2018 they are often decreased from 59.52 percent to 58.03 percent.
Farsons:
Income Statement:
Similar with the above balance sheet, all products are calculated on even a share of the
total revenue sum within this business. With respect to net sales, it can be found that in 2015, it
was 37.97%, which rose to 38.82% in 2016. This was 38.64 percent through 38.95 percent in
2017 and 2018 and in the following two accounting period. Furthermore, their net profit
fluctuates over all fourth periods. As in 2015, it declined from 14.74 to 10.13 percent in 2016.
Whilst it rose by 12.94% and 13.64% over the succeeding 2 financial year.
Balance sheet:

As for this corporation's financial position statement, it could be calculated that perhaps
the company's enterprise value will decline in three periods other than in 2017. Like in 2015, it
fell from 67.11 to 66.87 percent in 2016. Since it rose and becoming 67.21 percent in 2017, it
dropped once more in 2018 to 59.88 percent. Apart from this, regards to the entity's total
liabilities, this can be noted that in given four accounting periods it increases and decreases
dramatically. Such as in 2015, it fell by 32.79 percent in the year to 32.52 percent. Although its
value dropped by a decent profit in 2017, it grew by 32.89% throughout 2018. This decreased
significantly to 20.37%. For both the client, this is a good indication that the overall debts were
through.
It may have determined, in the light of non-current assets, that its value was improved
other than in 2018. Like in 2015, it rose by 78.52% to 79.14% then 81.42% in the next two
financial periods. Whilst it decreased by an enormous margin in 2018, it had become 77.16%.
Rather than the current assets of the organization for 2015, 2016, 2017 through 2018 are 21.48
percent, 20.25 percent, 18.58 percent and 22.22 percent overall.
CONCLUSION
From the above vertical analysis, it is resulted that the gross profitability situation of
Farsons is quite optimistic whereas the net profitability is optimistic of Heineken comparatively
to Farsons’. The financial position presents favourable current assets position for Farsons
compared to Heineken and the current liability is analysed the effective current liability position
organisation.
(b) Horizontal analysis
Heineken:
Income Statement:
Based on this firm's horizontal profit and loss statement review, this can be found that the
revenue rate was greater in 2017, and that was 5.27% when it was less in 2018, and that was
2.66%. Therefore, their gross margin volume declined by 2.08% in 2018 as well as the higher
inflation was 6.04% throughout 2017. A net income also dropped from 1.64 per cent in 2018 as
well as its price rose to 25.42 per cent in 2017 (Annual Report of Heiniken, 2019).
Balance sheet:
Based on this business's financial statements, this can be found that only in 2017 through
2018, the rising percentage of the company's funds was 0.53 percent or 7.91 percent. As it

declined from 2.25 percent in 2016. As for this firm's resources, this can be seen this is rising
dramatically, like 37.59% in 2016, 1.36% throughout 2017 but 9.97% in 2018. Therefore, the
non-current debts are also increased by 7.24% in 2017 than 1.69% in 2018. The cost of
receivables in 2016 and 2017 grew from 22.09% to 0.59%. The volume of money resources rose
from 268.33% in 2016, which dropped by 19.54% in 2018. Although it decreased to 0.08% in
2018. Their non-current assets dropped to 1.94% in 2016, but decreased by 5.14% in 2017 to
0.31% in 2018 over the next two accounting.
Farsons:
Income Statement:
In the sense of these business, its revenue increased by 7.95 percent in 2018 but enhanced
by 3.53 percent in 2016-17 and 7.59 million in 2018. In addition, their gross margin rose by 10%
in 2016, by 3.03% in 2017 and also by 8.82% in 2018. Together the overall productivity, they
improved to 16.67%in 2018,2016, 9.09% in 2017 and 37.50% (Annual Report of Farsons, 2019).
Balance sheet:
As for this business's financial position statement, it can be noted that the resources of its
owner decreased by 21.14% in 2018, and there was a rise of 9% and 12.84% in 2016 as well as
2017. In contrast, their bit of a non-current liabilities rose as 8.16%, 13.21% respectively 11.67%
in 2016, 2017 and 2018. The cost of current assets also rose in 2018 from 33.33%. In the sense
of the company's overall wealth, it can be found that it rose from 12.27% and 9.40% in three
years 2016 and 2017, but declined by 11.48% for 2018. In comparison, the amount of non-
current assets declined to 16.11% in 2018, which rose from 10.26% or 15.50% in 2016 through
2017. In 2016, 2017 and 2018, together with the total assets grew from 3.13 percent, 3.03 percent
and 5.88 percent.
Conclusion
Form the above horizontal analysis it is analyzed that the income position of Farsons is in
optimistic conditions whereas the financial position of Heineken H.V. is optimistic subject to
financial feasibility.
(c) Ratio analysis: It is a type of technique that is used for assessing companies financial
performance (Peda, Argento and Grossi, 2013). Under this a vital range of ratios are calculated

and interpreted. Such as profitability ratio, efficiency ratio, liquidity ratio and many more (Chun-
yu, 2013). In the aspect of above both of companies, ratio analysis is done below:
 Current ratio:
Conclusion- In comparative manner, Farsons company seems better. It is so because their current
ratio is higher in all four years. Though, it is declining but this is higher then Heineken company.
This is so because Farsons company's current ratio is increasing significantly. Such as in year
2015, it was of 1.72 times that ended on 1.12 times in year 2018. While Heineken company's
current ratios are increasing in all four years like in year 2015, it was of 0.69 times that raised in
next year and became of 0.78 times as well as in next two years too.

 Quick ratio:
Conclusion- In comparative manner, Farsons company seems better. It is so because their quick
ratio is higher in all four years. Though, it is declining but this is higher then Heineken company.
It is so because Farsons company's quick ratio is increasing significantly. Such as in year 2015, it
was of 1.14 times that ended on 0.7 times in year 2018. While Heineken company's quick ratios
are fluctuating in all four years like in year 2015, it was of 0.43 times that raised in next year and
became of 0.58 times as well as in next year it reduced till 0.55 tines. In year 2018, increased and
became of 0.6 times.
 Gross profit ratio:

Conclusion- In comparative manner, Heiniken company is better because their GP margin is
higher in all four years. It is so because Farsons company's GP ratio is increasing except year
2017. In year 2015, 2016 this was of 37.97% and 38.82% but in year 2017 it decreased till
38.64%. On the other hand, GP ratio of Heiniken company has been increased in starting three
years it was as 52.75% in year 2015, 53.39% in year 2016 and 53.77% in year 2017 but in year
2018, it reduced till 51.29%.
 Net profit ratio:
Conclusion- In comparative manner, Farsons company is better because their net profit margin is
higher in all four years and increasing. This is so because Farsons company's net profit ratio is
increasing significantly. Such as in year 2015, it was of 10.11% that ended on 14.49% in year
2018. While Heineken company's quick ratios are fluctuating in all four years like in year 2015,
it was of 4.67% that reduced in next year and became of 3.75% as well as in next year it raised
till 4.46%. In year 2018, decreased and became of 4.28%

 Debt equity ratio:
Conclusion- In the aspect of this ratio, if it is 0.4 or lower then 0.4 then this is better for
company. Thus, the performance of Farsons company is much more better as compare to
Heiniken company. It is so because their ratio is as accordance of ideal form.
 Return on assets:
Conclusion- In comparative manner, the performance of Farsons company is better because their
return on assets is higher in all four years. Such as Farsons company's return on assets in year
2015 was of 5.35% while Heiniken company's ratio was of 2.64%. Similar in all years, Farsons
company is beating to Heiniken company.

 Return on equity:
Conclusion- In comparative manner, the Heiniken company is better because their ROE is higher
in all four years. Such as Farsons company's ROE in year 2015 was of 8.19% while Heiniken
company's ratio was of 14.87%. Similar in all years, Heiniken company is beating to Farsons
company.
 Return on invested capital:

Conclusion- In comparative manner, the performance of Farsons company is better because their
return on capital is higher in all four years. Such as Farsons company's return on capital in year
2015 was of 7.17% while Heiniken company's ratio was of 6.75%. Similar in all years, Farsons
company is beating to Heiniken company.
 Interest coverage ratio
Conclusion- On the basis of above graph, it can be concluded that Farsons company is better in
compare to Heiniken company in the aspect of interest coverage ratio. Except year 2015, Farsons
company is gaining higher interest in all four years.

 Receivable turn over ratio
Conclusion- In the aspect of this ratio, Farsons company is better as compare to Heiniken
company. It is so because their turn over of receivable is less that is good sign for company.
 Inventory turn over ratio:

Conclusion- In this aspect, the Farsons company is better as compare to Heiniken company. It is
so because they are effectively utilising their available quantity of raw material. As well as in all
four years, Farsons company is producing lower turn over in inventory perspective.
 Fixed assets turn over ratio:
Conclusion- Higher fixed assets turn over indicates that company is effectively using its fixed
assets to generate revenues. Hence, the Heiniken company is better in compare to Farsons
company. This is so because their ratios are higher in all four years.
 Assets turn over ratio:

Conclusion- Higher assets turn over indicates that company is effectively using its assets to
generate revenues. Hence, the Heiniken company is better in compare to Farsons company. This
is so because their ratios are higher in all four years.
TASK 2
Working capital- It can be defined as a variation between current assets and liabilities during a
particular time period (Campbell, Jardine and McGlynn, 2016). If current assets are higher then
to current liabilities then this is considered as a better condition for company. In the context of
Farsons and Heiniken company, analysis of their working capital is done below in such manner:
Farsons company- On the basis of above working capital of this company, it can be find out that
their working capital is in positive condition. This is so because their current assets are higher as
compare to current liabilities. Like in year 2015, it was of 32 million that increased in next three
years and became of 33, 34 and 36 million for year 2016, 2017 & 2018. While their current
liabilities are lower in compare to current assets. Though their working capital is fluctuating in
all four years but its in positive form.
Heiniken company- This company has large amount of current assets and liabilities in compare
to Farsons company. Though, their working capital is producing negative result because the
value of current assets is lower then to current liabilities. Like their current liabilities are of 8516,
10397, 10458 and 10450 for year 2015,2016,2017 and 2018. On the other hand, their current
assets' value is too lower. Though, their working capital is improving in an effective manner.
Conclusion- From the above analysis, this can be concluded that Farsons company's
performance is better in the aspect of working capital as compare to Heiniken company.
TASK 3
Cash flow- It can be defined as a movement of cash for a particular time period. This is
measured on the basis of three activities that are financing, operating and investing (WANG,
DUAN and PENG, 2012). In the context of above mentioned companies, analysis of cash flow is
done below in such manner:

Farsons company- In the aspect of this company, it can be find out that there is inflow of cash
from operating activity that is of 13, 21 million for year 2017 and 2018. As well as in the aspect
of financing activity, there is inflow of cash 4 million in year 2017 and outflow of cash is of -1
million in year 2018. While, in the investing activity there is outflow of cash which is of -20 and
-21 million for year 2017-18. So overall their cash flow is negative.
Heiniken company- In the context of this company, this can be assessed that there is inflow of
cash from operating activities that is of 3882 million and 4388 million for year 2017 and 2018.
While from financing and investing activities, there is outflow of cash in both of years. Though
overall, there is inflow of cash from combined three activities.
Conclusion- On the basis of above analysis, it can be concluded that Heiniken company's
position is better as compare to Farsons company in terms of cash flows.
Overall conclusion:
Serial number Criteria Farsons company Heiniken
company
1 Vertical analysis ✔ x
2 Horizontal analysis ✔ x
3 Current ratio ✔ x
4 Quick ratio ✔ x
5 Gross profit margin x ✔
6 Net profit margin ✔ x
7 Debt equity ratio ✔ x
8 Return on assets ✔ x
9 Return on equity x ✔
10 Return on invested capital ✔ x

11 Interest coverage ratio ✔ x
12 Receivable turn over ratio ✔ x
13 Inventory turn over ratio ✔ x
14 Fixed assets turn over ratio x ✔
15 Assets turn over ratio x ✔
16 Working capital analysis ✔ x
17 Cash flow analysis x ✔
CONCLUSION
On the basis of above project report it has been concluded that Farsons company is better
as compare to Heiniken company. This is so because their performance in horizontal and vertical
analysis is far better. In addition, in the context of ratio analysis the Farsons company is beating
to Heiniken company. As well as Heiniken company's performance is effective in the context of
cash flows. So overall, it can be articulated that Farsons company's financial performance is
strong in compare to Heiniken company.

REFERENCES
Books and journals:
Kim, J. and Jeon, Y., 2015. Dividend policy and corporate social responsibility: a comparative
analysis of multinational enterprise subsidiaries and domestic firms in Korea. Emerging
Markets Finance and Trade. 51(2). pp.306-319.
Peda, P., Argento, D. and Grossi, G., 2013. Governance and performance of a mixed public-
private enterprise: an assessment of a company in the Estonian water sector. Public
Organization Review. 13(2). pp.185-196.
Campbell, J .D., Jardine, A. K. and McGlynn, J. eds., 2016. Asset management excellence:
optimizing equipment life-cycle decisions. CRC Press.
WANG, L.M., DUAN, Y .C. and PENG, Y .F., 2012. Analysis on Context Strategy of CIS in
Enterprise Cluster Based on Competitive Advantage [J]. Information Science. 4.
Lin, M .Q .Z., 2012. Study on the Relationship between Human Capital and Enterprise
Performance of Equipment Industry [J]. Journal of Industrial Technological
Economics. 10.
Barashian, V. and Pronnikova, V., 2016. Modern financial technologies of rational organization
of the investment resources of enterprise. Wschodnioeuropejskie Czasopismo Naukowe.
8(1). pp.128-130.
Rui, Z .H .A. N. G., 2012. An Analysis of Causes of Professional Embezzlement Committed by
Executives of State-Owned Enterprise Based on the Fraud Triangle
Theory. Contemporary Finance & Economics. (5). p.13.
Chun-yu, L. U. A. N., 2013. Analysis on the Status and Strategy of Inner Control of
Enterprise. Journal of Changchun Finance College. (2). p.8.
Driver, J. and Bernard, R., 2012. Enterprise risk management. In The SAGES manual of quality,
outcomes and patient safety. (pp. 529-539). Springer, Boston, MA.
Online:
Annual Report of Farsons, 2019. [Online]. Available through:
<https://www.farsons.com/en/financial-statements-archive>
Annual Report of Heiniken, 2019. [Online]. Available through:
<https://www.theheinekencompany.com/Age-gate.aspx?returnurl=%2f>

APPENDIX
HEINEKEN INCOME STATEMENT
Fiscal year ends in December. EUR in
millions except per share data.
201
5-12
Percen
t
201
6-12
Perce
nt
201
7-12
Perc
ent
201
8-12
Perce
nt
Revenue
205
11
100.0
0%
207
92
100.0
0%
218
88
#DI
V/0!
224
71
100.0
0%
Cost of revenue
969
1 0.24%
969
2
0.26
%
101
18
0.00
%
109
46
48.71
%
Gross profit
108
20 0.15%
111
00
0.16
%
117
70
0.00
%
115
25
51.29
%
Operating expenses
Sales, General and administrative
275
5 0.09%
283
6
0.11
%
291
3
0.00
%
249
4
11.10
%
Other operating expenses
540
1 0.00%
555
5
0.00
%
558
1
0.00
%
596
9
26.56
%
Total operating expenses
815
6 0.10%
839
1
0.11
%
849
4
0.00
%
846
3
37.66
%
Operating income
266
4 0.05%
270
9
0.06
%
327
6
0.00
%
306
2
13.63
%
Interest Expense 412 0.00% 419
0.00
% 468
0.00
% 493
2.19
%
Other income (expense) 586 0.00% 122
0.00
% 100
0.00
% 283
1.26
%
Income before taxes
283
8 0.04%
241
2
0.05
%
290
8
0.00
%
285
2
12.69
%
Provision for income taxes 697 - 673 0.00 755 0.00 757 3.37

0.02% % % %
Net income from continuing operations
214
1 0.06%
173
9
0.06
%
215
3
0.00
%
209
5
9.32
%
Other
-
118
4
-
0.02% -960
0.00
%
-
117
6
0.00
%
-
113
4
-
5.05
%
Net income 957 0.04% 779
0.06
% 977
0.00
% 961
4.28
%
Net income available to common
shareholders 957 0.04% 779
0.06
% 977
0.00
% 961
4.28
%
Fiscal year ends in December. EUR in
millions except per share data.
201
5-12
Varian
ce (%)
201
6-12
Varia
nce
(%)
201
7-12
Vari
ance
(%)
201
8-12
Varia
nce
(%)
Revenue
205
11 -
207
92
1.37
%
218
88
5.27
%
224
71
2.66
%
Cost of revenue
969
1 -
969
2
0.01
%
101
18
4.40
%
109
46
8.18
%
Gross profit
108
20 -
111
00
2.59
%
117
70
6.04
%
115
25
-
2.08
%
Operating expenses -
Sales, General and administrative
275
5 -
283
6
2.94
%
291
3
2.72
%
249
4
-
14.38
%
Other operating expenses
540
1 -
555
5
2.85
%
558
1
0.47
%
596
9
6.95
%

Total operating expenses
815
6 -
839
1
2.88
%
849
4
1.23
%
846
3
-
0.36
%
Operating income
266
4 -
270
9
1.69
%
327
6
20.9
3%
306
2
-
6.53
%
Interest Expense 412 - 419
1.70
% 468
11.6
9% 493
5.34
%
Other income (expense) 586 - 122
-
79.18
% 100
-
18.0
3% 283
183.0
0%
Income before taxes
283
8 -
241
2
-
15.01
%
290
8
20.5
6%
285
2
-
1.93
%
Provision for income taxes 697 - 673
-
3.44
% 755
12.1
8% 757
0.26
%
Net income from continuing operations
214
1 -
173
9
-
18.78
%
215
3
23.8
1%
209
5
-
2.69
%
Other
-
118
4 - -960
-
18.92
%
-
117
6
22.5
0%
-
113
4
-
3.57
%
Net income 957 - 779
-
18.60
% 977
25.4
2% 961
-
1.64
%
Net income available to common
shareholders
957 - 779 -
18.60
977 25.4
2%
961 -
1.64

% %
HEINEKEN
BALANCE SHEET
2015-
12 %
2016-
12 %
2017-
12 %
2018-
12 %
Assets
Current assets
Cash
Cash and cash equivalents 824
2.18
% 3035
7.72
% 2442
5.95
% 2903
6.92
%
Short-term investments 16
0.04
%
Total cash 840
2.23
% 3035
7.72
% 2442
5.95
% 2903
6.92
%
Receivables 2169
5.75
% 2283
5.81
% 2582
6.29
% 2588
6.17
%
Inventories 1702
4.51
% 1618
4.11
% 1814
4.42
% 1920
4.58
%
Prepaid expenses 343
0.91
% 328
0.83
% 399
0.97
% 382
0.91
%
Other current assets 860
2.28
% 873
2.22
% 1011
2.46
% 1277
3.04
%
Total current assets 5914
15.68
% 8137
20.69
% 8248
20.10
% 9070
21.62
%
Non-current assets

Property, plant and equipment
Gross property, plant and equipment
1978
6
52.46
%
1953
8
49.69
%
2137
2
52.08
%
2219
2
52.89
%
Accumulated Depreciation
-
1023
4
-
27.14
%
-
1030
6
-
26.21
%
-
1025
5
-
24.99
%
-
1083
3
-
25.82
%
Net property, plant and equipment 9552
25.33
% 9232
23.48
%
1111
7
27.09
%
1135
9
27.07
%
Goodwill
1132
4
30.03
%
1102
9
28.05
%
1120
5
27.31
%
1119
4
26.68
%
Intangible assets 6859
18.19
% 6395
16.26
% 6465
15.76
% 6265
14.93
%
Deferred income taxes 958
2.54
% 1011
2.57
% 768
1.87
% 622
1.48
%
Other long-term assets 3107
8.24
% 3517
8.94
% 3231
7.87
% 3446
8.21
%
Total non-current assets
3180
0
84.32
%
3118
4
79.31
%
3278
6
79.90
%
3288
6
78.38
%
Total assets
3771
4
100.0
0%
3932
1
100.0
0%
4103
4
100.0
0%
4195
6
100.0
0%
Liabilities and stockholders' equity
Liabilities
Current liabilities
Short-term debt 1339
3.55
% 3028
7.70
% 2563
6.25
% 1680
4.00
%
Capital leases 5
0.01
%

Accounts payable 3403
9.02
% 3562
9.06
% 4037
9.84
% 4016
9.57
%
Taxes payable 1185
3.14
% 1231
3.13
% 1234
3.01
% 1326
3.16
%
Other current liabilities 2584
6.85
% 2576
6.55
% 2624
6.39
% 3428
8.17
%
Total current liabilities 8516
22.58
%
1039
7
26.44
%
1045
8
25.49
%
1045
0
24.91
%
Non-current liabilities
Long-term debt
1061
6
28.15
%
1094
4
27.83
%
1224
4
29.84
%
1262
8
30.10
%
Capital leases 10
0.03
%
Deferred taxes liabilities 1858
4.93
% 1672
4.25
% 1495
3.64
% 1370
3.27
%
Pensions and other benefits 1289
3.42
% 1420
3.61
% 1289
3.14
% 954
2.27
%
Minority interest 8320
22.06
% 7975
20.28
% 7888
19.22
% 8382
19.98
%
Other long-term liabilities 355
0.94
% 315
0.80
% 1027
2.50
% 1014
2.42
%
Total non-current liabilities
2244
8
59.52
%
2232
6
56.78
%
2394
3
58.35
%
2434
8
58.03
%
Total liabilities
3096
4
82.10
%
3272
3
83.22
%
3440
1
83.84
%
3479
8
82.94
%
Stockholders' equity
Common stock 461 1.22 461 1.17 461 1.12 461 1.10

% % % %
Additional paid-in capital 1257
3.33
% 1257
3.20
% 1257
3.06
% 1257
3.00
%
Retained earnings 5143
13.64
% 5248
13.35
% 5782
14.09
% 6377
15.20
%
Accumulated other comprehensive
income -111
-
0.29
% -368
-
0.94
% -867
-
2.11
% -937
-
2.23
%
Total stockholders' equity 6750
17.90
% 6598
16.78
% 6633
16.16
% 7158
17.06
%
Total liabilities and stockholders'
equity
3771
4
100.0
0%
3932
1
100.0
0%
4103
4
100.0
0%
4195
6
100.0
0%
2015-
12 %
2016-
12 %
2017-
12 %
2018-
12 %
Assets
Current assets
Cash
Cash and cash equivalents 824 -% 3035
268.3
3% 2442
-
19.54
% 2903
18.88
%
Short-term investments 16 -%
Total cash 840 -% 3035
261.3
1% 2442
-
19.54
% 2903
18.88
%
Receivables 2169 -% 2283
5.26
% 2582
13.10
% 2588
0.23
%

Inventories 1702 -% 1618
-
4.94
% 1814
12.11
% 1920
5.84
%
Prepaid expenses 343 -% 328
-
4.37
% 399
21.65
% 382
-
4.26
%
Other current assets 860 -% 873
1.51
% 1011
15.81
% 1277
26.31
%
Total current assets 5914 -% 8137
37.59
% 8248
1.36
% 9070
9.97
%
Non-current assets
Property, plant and equipment
Gross property, plant and equipment
1978
6 -%
1953
8
-
1.25
%
2137
2
9.39
%
2219
2
3.84
%
Accumulated Depreciation
-
1023
4 -%
-
1030
6
0.70
%
-
1025
5
-
0.49
%
-
1083
3
5.64
%
Net property, plant and equipment 9552 -% 9232
-
3.35
%
1111
7
20.42
%
1135
9
2.18
%
Goodwill
1132
4 -%
1102
9
-
2.61
%
1120
5
1.60
%
1119
4
-
0.10
%
Intangible assets 6859 -% 6395
-
6.76
% 6465
1.09
% 6265
-
3.09
%
Deferred income taxes 958 -% 1011 5.53 768 - 622 -

%
24.04
%
19.01
%
Other long-term assets 3107 -% 3517
13.20
% 3231
-
8.13
% 3446
6.65
%
Total non-current assets
3180
0 -%
3118
4
-
1.94
%
3278
6
5.14
%
3288
6
0.31
%
Total assets
3771
4 -%
3932
1
4.26
%
4103
4
4.36
%
4195
6
2.25
%
Liabilities and stockholders' equity
Liabilities
Current liabilities
Short-term debt 1339 -% 3028
126.1
4% 2563
-
15.36
% 1680
-
34.45
%
Capital leases 5 -%
Accounts payable 3403 -% 3562
4.67
% 4037
13.34
% 4016
-
0.52
%
Taxes payable 1185 -% 1231
3.88
% 1234
0.24
% 1326
7.46
%
Other current liabilities 2584 -% 2576
-
0.31
% 2624
1.86
% 3428
30.64
%
Total current liabilities 8516 -%
1039
7
22.09
%
1045
8
0.59
%
1045
0

Non-current liabilities
Long-term debt
1061
6 -%
1094
4
3.09
%
1224
4
11.88
%
1262
8
3.14
%
Capital leases 10 -%
Deferred taxes liabilities 1858 -% 1672
-
10.01
% 1495
-
10.59
% 1370
-
8.36
%
Pensions and other benefits 1289 -% 1420
10.16
% 1289
-
9.23
% 954
-
25.99
%
Minority interest 8320 -% 7975
-
4.15
% 7888
-
1.09
% 8382
6.26
%
Other long-term liabilities 355 -% 315
-
11.27
% 1027
226.0
3% 1014
-
1.27
%
Total non-current liabilities
2244
8 -%
2232
6
-
0.54
%
2394
3
7.24
%
2434
8
1.69
%
Total liabilities
3096
4 -%
3272
3
5.68
%
3440
1
5.13
%
3479
8
1.15
%
Stockholders' equity
Common stock 461 -% 461
0.00
% 461
0.00
% 461
0.00
%
Additional paid-in capital 1257 -% 1257
0.00
% 1257
0.00
% 1257
0.00
%
Retained earnings 5143 -% 5248 2.04 5782 10.18 6377 10.29

% % %
Accumulated other comprehensive
income -111 -% -368
231.5
3% -867
135.6
0% -937
8.07
%
Total stockholders' equity 6750 -% 6598
-
2.25
% 6633
0.53
% 7158
7.91
%
Total liabilities and stockholders'
equity
3771
4 -%
3932
1
4.26
%
4103
4
4.36
%
4195
6
2.25
%
SIMONDS FARSONS CISK PLC
(SFC) CashFlowFlag INCOME
STATEMENT
Income Statement
Fiscal year ends in January. EUR in
millions except per share data.
2015-
01
2016-
01
2017-
01
2018-
01
Revenue 79
100.0
0% 85
100.0
0% 88
100.0
0% 95
100.0
0%
Cost of revenue 50
63.29
% 52
61.18
% 54
61.36
% 58
61.05
%
Gross profit 30
37.97
% 33
38.82
% 34
38.64
% 37
38.95
%
Operating expenses
Sales, General and administrative 19
24.05
% 21
24.71
% 22
25.00
% 22
23.16
%
Other operating expenses 0
0.00
% 0
0.00
% 0
0.00
%
0.00
%

Total operating expenses 20
25.32
% 22
25.88
% 22
25.00
% 22
23.16
%
Operating income 10
12.66
% 11
12.94
% 13
14.77
% 15
15.79
%
Interest Expense 1
1.27
% 1
1.18
% 1
1.14
% 1
1.05
%
Other income (expense) -0
0.00
% -0
0.00
% -0
0.00
% 0
0.00
%
Income before taxes 8
10.13
% 10
11.76
% 11
12.50
% 13
13.68
%
Provision for income taxes -5
-
6.33
% -1
-
1.18
% -0
0.00
% -1
-
1.05
%
Net income from continuing operations 13
16.46
% 11
12.94
% 12
13.64
% 14
14.74
%
Net income from discontinuing ops -5
-
6.33
% 0
0.00
% 0
0.00
% -1
-
1.05
%
Net income 8
10.13
% 11
12.94
% 12
13.64
% 14
14.74
%
Net income available to common
shareholders 8
10.13
% 11
12.94
% 12
13.64
% 14
14.74
%
Income Statement
Fiscal year ends in January. EUR in
millions except per share data.
2015-
01
2016-
01
2017-
01
2018-
01

Revenue 79 -% 85
7.59
% 88
3.53
% 95
7.95
%
Cost of revenue 50 -% 52
4.00
% 54
3.85
% 58
7.41
%
Gross profit 30 -% 33
10.00
% 34
3.03
% 37
8.82
%
Operating expenses
Sales, General and administrative 19 -% 21
10.53
% 22
4.76
% 22
0.00
%
Other operating expenses
Total operating expenses 20 -% 22
10.00
% 22
0.00
% 22
0.00
%
Operating income 10 -% 11
10.00
% 13
18.18
% 15
15.38
%
Interest Expense 1 -% 1
0.00
% 1
0.00
% 1
0.00
%
Other income (expense) -0 -%
Income before taxes 8 -% 10
25.00
% 11
10.00
% 13
18.18
%
Provision for income taxes -5 -% -1
-
80.00
% -1
Net income from continuing operations 13 -% 11
-
15.38
% 12
9.09
% 14
16.67
%
Net income from discontinuing ops -5 -%
Net income 8 -% 11 37.50 12 9.09 14 16.67

% % %
Net income available to common
shareholders 8 -% 11
37.50
% 12
9.09
% 14
16.67
%
SIMONDS FARSONS CISK PLC
(SFC) CashFlowFlag BALANCE
SHEET
Fiscal year ends in January. EUR in
millions except per share data.
2015-
01 %
2016-
01 %
2017-
01 %
2018-
01 %
Assets
Current assets
Cash
Cash and cash equivalents 5
3.36
% 2
1.23
% 1
0.55
% 4
2.47
%
Total cash 5
3.36
% 2
1.23
% 1
0.55
% 4
2.47
%
Receivables 12
8.05
% 12
7.36
% 13
7.10
% 15
9.26
%
Inventories 10
6.71
% 12
7.36
% 15
8.20
% 14
8.64
%
Other current assets 5
3.36
% 7
4.29
% 6
3.28
% 4
2.47
%
Total current assets 32
21.48
% 33
20.25
% 34
18.58
% 36
22.22
%
Non-current assets

Property, plant and equipment
Gross property, plant and equipment 180
120.8
1% 194
119.0
2% 213
116.3
9% 224
138.2
7%
Accumulated Depreciation -99
-
66.44
% -104
-
63.80
% -102
-
55.74
% -109
-
67.28
%
Net property, plant and equipment 80
53.69
% 90
55.21
% 111
60.66
% 116
71.60
%
Goodwill 1
0.67
%
Intangible assets
Deferred income taxes 2
1.34
% 4
2.45
% 3
1.64
% 5
3.09
%
Other long-term assets 34
22.82
% 34
20.86
% 34
18.58
% 4
2.47
%
Total non-current assets 117
78.52
% 129
79.14
% 149
81.42
% 125
77.16
%
Total assets 149
100.0
0% 163
100.0
0% 183
100.0
0% 162
100.0
0%
Liabilities and stockholders' equity
Liabilities
Current liabilities
Short-term debt 2
1.34
% 3
1.84
% 4
2.19
% 10
6.17
%
Capital leases
Accounts payable 4
2.68
% 8
4.91
% 5
2.73
% 5
3.09
%

Taxes payable 2
1.34
% 2
1.23
% 2
1.09
% 3
1.85
%
Other current liabilities 10
6.71
% 10
6.13
% 13
7.10
% 15
9.26
%
Total current liabilities 18
12.08
% 24
14.72
% 24
13.11
% 32
19.75
%
Non-current liabilities
Long-term debt 22
14.77
% 24
14.72
% 31
16.94
% 33
20.37
%
Capital leases 1
0.55
% 1
0.62
%
Other long-term liabilities 8
5.37
% 5
3.07
% 4
2.19
% 1
0.62
%
Total non-current liabilities 30
20.13
% 29
17.79
% 35
19.13
% 34
20.99
%
Total liabilities 49
32.89
% 53
32.52
% 60
32.79
% 67
41.36
%
Stockholders' equity
Common stock 9
6.04
% 9
5.52
% 9
4.92
% 9
5.56
%
Retained earnings 39
26.17
% 47
28.83
% 56
30.60
% 39
24.07
%
Accumulated other comprehensive
income 52
34.90
% 53
32.52
% 58
31.69
% 49
30.25
%
Total stockholders' equity 100
67.11
% 109
66.87
% 123
67.21
% 97
59.88
%
Total liabilities and stockholders' 149 100.0 163 100.0 183 100.0 162 100.0

equity 0% 0% 0% 0%
Fiscal year ends in January. EUR in
millions except per share data.
2015-
01 %
2016-
01 %
2017-
01 %
2018-
01 %
Assets
Current assets
Cash
Cash and cash equivalents 5 -% 2
-
60.00
% 1
-
50.00
% 4
300.0
0%
Total cash 5 -% 2
-
60.00
% 1
-
50.00
% 4
300.0
0%
Receivables 12 -% 12
0.00
% 13
8.33
% 15
15.38
%
Inventories 10 -% 12
20.00
% 15
25.00
% 14
-
6.67
%
Other current assets 5 -% 7
40.00
% 6
-
14.29
% 4
-
33.33
%
Total current assets 32 -% 33
3.13
% 34
3.03
% 36
5.88
%
Non-current assets
Property, plant and equipment
Gross property, plant and equipment 180 -% 194 7.78 213 9.79 224 5.16

% % %
Accumulated Depreciation -99 -% -104
5.05
% -102
-
1.92
% -109
6.86
%
Net property, plant and equipment 80 -% 90
12.50
% 111
23.33
% 116
4.50
%
Goodwill 1 -%
Intangible assets
Deferred income taxes 2 -% 4
100.0
0% 3
-
25.00
% 5
66.67
%
Other long-term assets 34 -% 34
0.00
% 34
0.00
% 4
-
88.24
%
Total non-current assets 117 -% 129
10.26
% 149
15.50
% 125
-
16.11
%
Total assets 149 -% 163
9.40
% 183
12.27
% 162
-
11.48
%
Liabilities and stockholders' equity
Liabilities
Current liabilities
Short-term debt 2 -% 3
50.00
% 4
33.33
% 10
150.0
0%
Capital leases
Accounts payable 4 -% 8 100.0 5 - 5 0.00

0%
37.50
% %
Taxes payable 2 -% 2
0.00
% 2
0.00
% 3
50.00
%
Other current liabilities 10 -% 10
0.00
% 13
30.00
% 15
15.38
%
Total current liabilities 18 -% 24
33.33
% 24
0.00
% 32
33.33
%
Non-current liabilities
Long-term debt 22 -% 24
9.09
% 31
29.17
% 33
6.45
%
Capital leases 1 1
Other long-term liabilities 8 -% 5
-
37.50
% 4
-
20.00
% 1
-
75.00
%
Total non-current liabilities 30 -% 29
-
3.33
% 35
20.69
% 34
-
2.86
%
Total liabilities 49 -% 53
8.16
% 60
13.21
% 67
11.67
%
Stockholders' equity
Common stock 9 -% 9
0.00
% 9
0.00
% 9
-
2.86
%
Retained earnings 39 -% 47
20.51
% 56
19.15
% 39
-
30.36
%

Accumulated other comprehensive
income 52 -% 53
1.92
% 58
9.43
% 49
-
15.52
%
Total stockholders' equity 100 -% 109
9.00
% 123
12.84
% 97
-
21.14
%
Total liabilities and stockholders'
equity 149 -% 163
9.40
% 183
12.27
% 162
-
11.48
%
Ratio analysis:
Current Ratio
Years 2015 2016 2017 2018
Farsons 1.72 1.39 1.39 1.12
Heiniken 0.69 0.78 0.79 0.87
Quick ratio
Years 2015 2016 2017 2018
Farsons 1.14 0.66 0.79 0.7
Heiniken 0.43 0.58 0.55 0.6
Gross profit ratio
Years 2015 2016 2017 2018
Farsons 37.97% 38.82% 38.64% 38.95%
Heiniken 52.75% 53.39% 53.77% 51.29%

Net profit ratio
Years 2015 2016 2017 2018
Farsons 10.11% 13.22% 13.77% 14.49%
Heiniken 4.67% 3.75% 4.46% 4.28%
Debt equity ratio
Years 2015 2016 2017 2018
Farsons 0.22 0.22 0.26 0.34
Heiniken 1.57 1.66 1.85 1.76
Return on equity
Years 2015 2016 2017 2018
Farsons 8.19% 10.70% 10.43% 12.52%
Heiniken 14.87% 11.67% 14.77% 13.94%
Return on invested capital
Years 2015 2016 2017 2018
Farsons 7.17% 9.41% 8.95% 9.75%
Heiniken 6.75% 5.25% 6.03% 5.91%
Inventory turn over ratio

Year 2015 2016 2017 2018
Farsons 4.8 4.6 3.99 4.1
Heiniken 5.81 5.84 5.9 5.86
Interest coverage ratio
Years 2015 2016 2017 2018
Farsons 7.31% 9.66% 10.91% 10.79%
Heiniken 7.89% 6.76% 7.21% 6.79%
Receivable turn over ratio
Year 2015 2016 2017 2018
Farsons 6.72 7.27 7.14 6.88
Heiniken 9.8 9.34 9 8.69
Return on assets
Years 2015 2016 2017 2018
Farsons 5.35% 7.21% 7.02% 7.94%
Heiniken 2.64% 2.02% 2.43% 2.32%
Fixed assets turn over ratio
Year 2015 2016 2017 2018
Farsons 1.03 1 0.88 0.84
Heiniken 2.25 2.21 2.15 2

Assets turn over ratio
Year 2015 2016 2017 2018
Farsons 0.53 0.55 0.51 0.55
Heiniken 2.25 2.21 2.15 2
Task 2.
Farsons Heiniken
(EUR in
Million) 2015 2016 2017 2018 2015 2016 2017 2018
Current
Assets 32 33 34 36 5914 8137 8248 9070
Current
Liabilties 18 24 24 32 8516 10397 10458 10450
Working
Capital 14 9 10 4 -2602 -2260 -2210 -1380
Task 3.
Farsons company Heiniken company
All data in
Million
2017 2018 2017 2018
Operating activity 13 21 3882 4388
Financing activity 4 -1 -966 -967
Investing activity -20 -21 -2965 -2355