Financial Analysis of Farsons and Heiniken Companies

This article provides a detailed financial analysis of Farsons and Heiniken companies, including vertical, horizontal, and ratio analysis of their financial statements.

Financial Analysis
Management
Enterprise

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
TASK 1. Complete vertical, horizontal and ratio analysis of the financial statements of chosen
companies....................................................................................................................................3
Task 2.Evaluation of the Working Capital...............................................................................11
Task 3. Evaluation of the Cash Flow........................................................................................12
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14
APPENDIX....................................................................................................................................15
.......................................................................................................................................................26

INTRODUCTION
The term financial analysis can be defined as a way of analysing monetary aspect of
business entities for a particular time frame. In order to do an effective financial analysis, various
kinds of financial statements are interpreted such as income statement, balance sheet and many
more (Morden, 2016). Basically, there are different types of techniques of doing financial
analysis such as vertical analysis, horizontal analysis, ratio analysis and many more. The aim of
project report to do a detailed financial analysis of given enterprises. The project report is based
on two companies which are Farsons and Heiniken. Under the project report four years financial
statements are assessed in order to evaluate about efficiency of both of companies. The Farsons
company operates its business and activities in beverage sector. They produce a wide range of
beers and soft drinks. The company is headquartered in Malta and it was founded in year 1928.
The another company, Heiniken is also involved in process of beer manufacturing and located in
Netherlands.
MAIN BODY
TASK 1. Complete vertical, horizontal and ratio analysis of the financial statements of chosen
companies.
Vertical analysis: This can be defined as a type of financial statement analysis technique in
which every item is presented as a percentage of base amount in various statements (Yinping,
2015). It is also known by common size analysis. In order to convert elements of different
elements to do vertical analysis, there is a particular formula which is as follows :
Vertical analysis formula (Income statement) = Item of income statement / Total sales * 100.
Vertical analysis formula (Balance sheet) = Item of balance sheet / Total sales * 100.
In the context of above mentioned both of companies, there vertical analysis is done below in
such manner :
Heiniken:
Income Statement:
On the basis of produced income statement of Heiniken Plc, this can be find out that all
the elements of this statement are based on total value of sales. Their income statement presents
that the value of gross profit was increasing during year of 2015 to 2017. Though, in year 2018,

it decreased and became of 51.29%. In the aspect of net profit of company, it can be find out that
this is fluctuating in all four years. In year 2015, it was of 4.67% that reduced and became of
3.75% in 2016 (Annual Report of Heiniken, 2019). In next year 2017, it increased and became of
4.46% but in last year 2018, again it reduced till 4.28%.
Balance sheet:
As per the information included in balance sheet of above company, it can be find out
that their value of fixed assets is increasing and decreasing in all four years. Like in year 2015, it
was of 84.32% that decreased in next year till 79.31% but in year 2017, it raised by a little
margin and became of 79.90%. In year 2018, it decreased and became of 78.38%. Their current
assets are also increasing by huge gapes in all four years. Like in year 2015, it was of 15.68%
that raised between three years and became of 21.62% in last year 2018. As well as their cash
proportion which is based on total assets was higher in year 2018 of 6.92%. In rest of the years, it
was of 2.23% in year 2015, 7.72% in 2016 and 5.95% in year 2017.
Apart from it, above company's shareholder's funds are based on percentage of total
assets. The value of their shareholder's fund was higher in year 2015 that was of 17.90%. In rest
of years, it was of 16.78%, 16.16% and 17.06%. Along with the amount of current liabilities fell
down from 26.44% to 24.90% in the financial year 2016 to 2018. Their non current liabilities
also reduced by some gape during accounting year 2015 to 2018 from 59.52% to 58.03%.
Farsons:
Income Statement:
Similar as the above mentioned company, this companies' all items of income statement
are based on the percentage of total sales revenues. In the aspect of gross profit of this company,
it can be stated that it is increasing year by year. For four years 2015,2016,2017 and 2018 their
gross profits is as follows: 37.97%, 38.82%, 38.64% and 38.95% (Annual Report of Farsons,
2019). In addition, the value of net income is also increasing in a significant manner. Such as in
year 2015, it was of 10.13% which raised and became of 12.94% in 2016. As well as in next two
years it became of 13.64% and 14.74%.

Balance sheet:
All the items of balance sheet are based on the total value of assets. Such as their
shareholder's equity was of 67.11% in year 2015 which fluctuated in next three years. In year
2016, it reduced and became of 66.87% but in year 2017, it raised and became of 67.21. While in
last year 2018, it decreased by huge gape till 59.88%. In addition, the amount of total liabilities
increased year by year. Starting from 2015, it was of 20.37% that raised continuously and
became of 32.79% in 2016, 32.52% in year 2017 and ended with 32.89% in year 2018.
In addition, the value of non current assets are also fluctuating such as in year 2015, it
was of 78.52% that raised and became of 79.14% as well as in next year, it increased till 81.42%.
In last year 2018, it minimized and became of 77.16%. Their value of total assets are as: 21.48%,
20.25%, 18.58% and 22.22% for year 2015,2016,2017 and 2018 respectively.
Horizontal Analysis: It is also known as Trend analysis. This can be defined as a type of
financial-statements analysis technique in which variation in the value of different elements of
financial is presented for a particular time period. In this kinds of analyzing technique, financial
statements of two or more then two years are taken to make a proper comparison. In the aspect of
above mentioned both of companies, the horizontal analysis is done below in such manner:
Heiniken:
Income Statement:
On the basis of horizontal analysis of income statement of this company, it can be find
out that variation in total sales revenue is raised in year 2017 till 5.27% that decreased in next
year and became of 2.66% in 2018. In addition, the gross profit of this company also decreased
by 2.08% in year 2018 and in year 2017, there was higher increased in variation of 6.04%. In the
aspect of net profit of company, it can be find out that it decreased in year 2018 from 1.64% and
in year 2017, it raised from 25.42%.
Balance sheet:
On the basis of balance sheet of company, it can be find out that the value of
shareholder's funds is increased by 7.91% in year 2018. Though, during year 2016-17, it was of -
2.25% and 0.53%. In the context of non current liabilities of this company, it can be find out that
in year 2017 it increased by 7.24% and in year 2018, it raised by just 1.69%. Their current

liabilities were increased during year 2016-17 from 22.09% and 0.59%. While in year 2018, it
reduced by -0.08%.
In the context of cash funds of this company, it can be find out that in year 2018, it
increased by 18.88% but in year 2017, there was decreasing in its value by 19.54%. While in
year 2016, it was raised by huge margin of 268.33%. Their current assets were raised from
37.59%, 1.36% and 9.97% in year 2016, 2017 and 2018 respectively. On the other hand, value of
non current assets raised by just 0.31% in year 2018. As well as their non current assets were
decreased from 1.94% in financial year 2016.
Farsons:
Income Statement:
As per the analysis of income statement of this company, it can be find out that it is
raised from 7.95% in year 2016. While in year 2017-18, its increasing value was of 3.53% and
7.59%. Along with the value of gross-profit also increased from 8.82% in year 2018, though in
year 2016, 2017 its increasing was of 10% and 3.03%. The net profit of company raised as:
37.50%, 9.09% and 16.67% throughout year 2016, 2017 and 2018.
Balance sheet:
As per the balance sheet of above company, it can be find out that shareholder's funds
decreased from 9% in year 2016 and 12.84% in year 2017. While in year 2018, it fell down from
21.14%. In addition, their non current liabilities raised by 8.16%, 13.21% and 11.67% for year
2016, 2017 and 2018. In the aspect of current liabilities, it can be find out that it increased by
33.33% in year 2018 and it remain unchanged in year 2017. As well as their total assets
decreased by 11.48% in year 2018 and in year 2016 & 2017, it raised by 12.27% and 9.40%. In
addition, the fixed assets decreased by 16.11% in year 2018 while in last years, it raised from
15.50% and 10.26% in year 2016 and 2017. Their current assets also raised from 5.88%, 3.03%
and 3.13% for year 2018, 2017 and 2016.
Ratio analysis- It can be defined as a type financial analysis technique which is based on
completely calculation and analysis of ratios for a particular time period (Vogel, 2014). In this
technique, a wide range of ratios are included such as profitability ratio, efficiency ratio and

many more. The main objective of this analysis technique is to assessing companies strength and
weakness of different kinds of aspects. In the aspect of above mentioned Farsons and Heiniken
companies, ratio analysis is done below that is as follows:
 Net profit ratio- It is a type of ratio which is computed by companies in order to assess
efficiency of generating net revenue after deducting all expenses. There is a formula of
calculating net profit ratio that is as: Net profit/ net sales * 100. Herein, below net profit
ratio of both companies is mentioned in such way:
Farsons Heiniken
2015 2016 2017 2018 2015 2016 2017 2018
Net
Margin 10.11% 13.22% 13.77% 14.49% 4.67% 3.75% 4.46% 4.28%
2015 2016 2017 2018
0
2
4
6
8
10
12
14
16
10.11
13.22 13.77 14.49
4.67 3.75 4.46 4.28
Farsons
Heiniken
Analysis- On the basis of above presented graph, it can be find out that both companies have
different amount of net profit margin. In the aspect of Farsons company, it can be find out that
their net profit is increasing in all four years. Their net profit margin is as follows: 10.11%,
13.22%, 13.77% and 14.49% for year 2015,2016,2017 and 2018 respectively. In the aspect of
Heiniken company, it can be find out that their net profit margin is raising and decreasing in all
four years. In year 2015, it was of 4.67% that reduced and became of 3.75%. While in year 2017
it raised till 4.46% and in year 2018, decreased again and became of 4.28%.
In comparative manner, it can be find out that Farsons company's monetary position is
better as compare to Heiniken company. It is so because their net profit margin is higher and
increasing year by year.

Gross Profit: It is a type of ratio which is computed by companies in order to assess efficiency
of generating gross revenue after deducting all operational expenses (Campbell, Jardine, and
McGlynn, 2016). There is a formula of calculating net profit ratio that is as: Gross profit/ net
sales * 100. Herein, below gross profit ratio of both companies is mentioned in such way:
Farsons Heiniken
2015 2016 2017 2018 2015 2016 2017 2018
Gross
Margin 37.97% 38.82% 38.64% 38.95% 52.75% 53.39% 53.77% 51.29%
2015 2016 2017 2018
0
10
20
30
40
50
60
37.97 38.82 38.64 38.95
52.75 53.39 53.77 51.29
Farsons
Heiniken
Analysis- The above presented graph is showing information regards to gross profit margin of
both of companies. In the context of Farsons company, it can be find out that their gross margin
is increasing in three years except during 2017. Their GP margin is as: 37.97%, 38.82%, 38.64%
and 38.95% for year 2015,2016,2017 and 2018. Similar as in Heiniken company, their gross
profit margin is increasing in starting three years except year 2018. Such as in year 2015, it was
of 52.75% that raised and became of 53.39% in year 2016. as well as in year 2017, it was of
53.77% which decreased in next year and became of 51.29%.
In this comparative manner, it can be find out that Heiniken company is much more better as
compare to Farsons company. It is so because their gross margin is increasing in three years and
higher compare to their competitor.

Current ratio- It is a key ratio for assessing liquidation ability of companies. Eventually, this
ratio shows the relation between current assets and liabilities of a particular time segment
(Jianjun, 2012). There is a particular formula to compute this ratio which is as follows: Current
ratio = current assets / current liabilities. Herein, below current ratio of both companies is
mentioned in such way:
2015 2016 2017 2018
0
0.2
0.4
0.6
0.8
1
1.2
1.4
1.6
1.8
2
1.72
1.39 1.39
1.12
0.69 0.78 0.79 0.87 Farsons
Heiniken
Analysis- The above presented graph shows current ratio of both of companies. In the context of
Farsons company, it can be find out that their current ratio is decreasing in all four years except
year 2017. In starting year 2015, their current ratio was of 1.72 times which reduced till 1.39 in
2016 and remain same for next year 2017. In last year 2018, it reduced and became of 1.12
times. While the current ratio of Heiniken company has been increased in accounting years. Like
in year 2015, it was of 0.69 times that increased and became of 0.78 times in year 2016. As well
as for next two years 2017-18, it was of 0.79 times and 0.87 times.
So overall, in comparative manner it can be find out that Farsons company is better as compare
to Heiniken company. It is so because their current ratio is higher. Though, both companies are
failed to meet the criteria of ideal current ratio that is of 2:1.

Return on Equity- It can be defined as a ratio that is calculated in order to assess efficiency to
generate return on equities of a company (Olson and Wu, 2017). Herein, below ROE of both
companies is mentioned in such way:
Analysis- The above presented graph shows information about return on equity of both of
companies. In the context of Farsons company, it can be find out that their ROE is decreasing
continuously. Such as in year 2015, it was of 12.52% that fell down in next year and became of
10.43%. Similar as in next two years, it decreased till 10.7% and 8.19% in 2017 and 2018. On
the other hand, ROE of Heiniken company is fluctuating in all four years. Like in years, 2015 it
was of 14.87% that reduced in next year and became of 11.67%. While in year 2017, it increased
till 14.77% but again in 2018 it decreased and became of 13.94%.
So overall in comparative manner, it can be find out that Heiniken company's efficiency to
generate return on equity is better in compare to Farsons company. It is so because Heiniken
company is able to generate higher return from their equities.
2015 2016 2017 2018
0
2
4
6
8
10
12
14
16
12.52
10.43 10.7
8.19
14.87
11.67
14.77 13.94
Farsons
Heiniken

Task 2.Evaluation of the Working Capital.
The term working capital can be defined as a type of capital that is associated with
making payment of day to day expenses (Pinto and Garvey, 2016). It is calculated by subtracting
amount of current liabilities from current assets. There is formula to compute this which is as
follows:
Working capital = Current assets- current liabilities.
Under the current assets various items are included such as cash, debtors, bills receivable and
many more. While in current liabilities creditors, bills payable, short-term debts etc. are included.
Herein, below evaluation of working capital of above mentioned both of companies is as
follows:
Analysis- On the basis of above table, this can be find out that both companies are generating
different amount of working capital in all four years. In the context of Farsons company, it can
be find out that their net working capital is of 14, 9, 10 and 4 million for year 2015,2016,2017
and 2018. While in the aspect of Heiniken company, this can be analyzed that their net working
capital is presenting negative results in all four years. It is so because their current assets' value is
less as compare to current liabilities. Like in four years their net working capital is of -2602, -
2260, -2210 and -1380 million.
So overall in comparative manner, the Farsons company is more effective and better in order to
make payment of short term debts.

Task 3. Evaluation of the Cash Flow.
The term cash flow can be defined as flow of cash in a business entity during a particular
time period (Elgharbawy and Abdel-Kade, 2013). In order to assess cash flow, companies
produce cash flow statement that consists information about cash receipts and payments. This
statement is prepared by three activities which are operating, financing and investing activities. If
cash receipts are more then cash payments then there will be cash inflow. In the aspect of both of
companies, cash flow analysis is done below in such manner:
Heiniken: In the aspect of this company, it can be find out that their cash flow from operating
activities is increasing throughout the four years. Such as in year 2015, it was of 3489 million,
that raised and became of 3718 million in year 2016. Same as in next two years it increased and
became of 3882 and 4388 million. In addition, there is cash outflow of 2064 million, 2,007
million, 2965 million and 2355 million from investing activities. On the other hand, in the
context of financing activities there is outflow of cash that is of 1,173 million, 672 million, 966
million and 967 million for same time period. In addition their free cash flow is of 1,759 million,
1,852 million, 2,049 million and 2,333 million for above mentioned time period. Thus, it can be
stated that above company's financial position is better in order to have more cash receipts.
Farsons: On the basis of above mentioned cash flow of this company, it can be find out that
their cash flow from operating activities is of 16 million, 16 million, 13 million and 21 million in
year 2015, 2016, 2017 and 2018. On the other hand, there is outflow of cash from investing
activities that is of 7 million, 18 million, 20 million and 21 million during year 2015, 2016, 2017
and 2018. As well as cash flow from financing activities is of -4 million, -2 million, 4 million
and -1 million in 2015,2016,2017 and 2018 while their free cash-flows are 9 million, -1 million, -
6 million and 7 million during same period.
In the comparative manner, it can be find out that Heiniken company's cash flow is better
compare to Farsons company. It is so because they are able to generate positive cash flows from
all three activities.
CONCLUSION
On the basis of above project report, it can be concluded that financial analysis is
important for companies in order to do proper evaluation. The project report concludes about

financial analysis of two companies: Heiniken Farsons from different techniques such as ratio
analysis, horizontal and vertical analysis etc. Both companies' performance is average. In some
aspects, Heiniken company is better while in others Farsons is better. The further part of report
concludes about cash flow and working capital analysis in which both companies are beating
each other.

REFERENCES
Books and journals:
Morden, T., 2016. Principles of strategic management. Routledge.
Yinping, Z., 2015, December. The research of the enterprise financial model based on
information entropy and correlation model reorganization theory. In 2015 International
Conference on Intelligent Transportation, Big Data and Smart City (pp. 910-913).
IEEE.
Vogel, H .L., 2014. Entertainment industry economics: A guide for financial analysis.
Cambridge University Press.
Jianjun, X .Y. S., 2012. Empirical Analysis of the Factors Affecting the Fusion of Enterprise
Informatization and Industrialization [J]. Journal of Intelligence, 5.
Olson, D .L. and Wu, D. D., 2017. Data mining models and enterprise risk management.
In Enterprise risk management models (pp. 119-132). Springer, Berlin, Heidelberg.
Pinto, C .A. and Garvey, P. R., 2016. Advanced risk analysis in engineering enterprise systems.
CRC Press.
Olson, D .L. and Wu, D .D., 2017. Balanced Scorecards to Measure Enterprise Risk
Performance. In Enterprise Risk Management Models (pp. 133-144). Springer, Berlin,
Heidelberg.
Elgharbawy, A. and Abdel-Kader, M., 2013. Enterprise governance and value-based
management: a theoretical contingency framework. Journal of management &
governance. 17(1). pp.99-129.
Campbell, J. D., Jardine, A .K. and McGlynn, J. eds., 2016. Asset management excellence:
optimizing equipment life-cycle decisions. CRC Press.
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
%

Heineken Cash-flows:

Farsons Cash-flows: