2005 2006 2007 2008

ASSETS
Cash & Cash Equivalents 5,488 6,414 7,373 5,569
Acounts Receivable 1,715 2,662 2,840 3,654
Inventories 29,762 32,191 33,685 35,180
Prepayments 1,889 2,557 2,690 3,182
Current Assets 38,854 43,824 46,588 47,585

Property, Plant & Equipment 73,745 85,652 94,512 105,903

Other Non-current Assets 13,182 15,073 16,165 18,912
Total Assets 125,781 144,549 157,265 172,400

LIABILITIES & SHAREHOLDERS' EQUITY

Accounts Payable 21,987 25,373 28,090 30,370
Notes Payable 3,812 3,754 2,570 5,040
Current Portion of Long Term Debt 3,982 4,894 5,713 6,229
Other Current Liabilities 13,401 14,805 15,381 16,815
Total Current Liabilities 43,182 48,826 51,754 58,454

Long-Term Debt 28,885 36,533 36,807 42,288

Other Noncurrent Liabilities 4,318 6,019 7,131 7,050
Total Liabilities 76,385 91,378 95,692 107,792

Common Stock ($.10 par value) 423 417 413 397

Additional Paid-in Capital 2,425 2,596 2,834 3,028
Retained Earnings 43,854 49,105 55,818 57,319
Accumulated Other Comprehensive Income 2,694 1,053 2,508 3,864
Total Shareholders' Equity 49,396 53,171 61,573 64,608
Total Liabilities and Shareholders' Equity 125,781 144,549 157,265 172,400
- - - -
 2006 2007 2008
Sales Revenue 308,945 344,992 374,526
Other Revenues 3,398 3,938 4,578
Total Revenues 312,343 348,930 379,104
Less Expenses
Cost of Goods Sold 237,649 264,152 286,515
Selling & Administrative 56,063 64,426 70,694
Interest 1,420 1,809 2,103
Total 295,132 330,387 359,312
Income Before Income Taxes 17,211 18,543 19,792
Income Tax Expense 5,803 6,365 6,908
Net Income 11,408 12,178 12,884
 2006 2007 2008
Operations
Net Income 11,408 12,178 12,884
Additions & Subtractions
Deppreciation Expense 4,717 5,459 6,317
Other Addbacks & Subtractions 491 1,128 593
(Increase) Decrease in Accounts Receivable (456) (214) (564)
(Increase) Decrease in Inventories (1,733) (1,274) (775)
(Increase) Decrease in Prepayments (668) (133) (492)
Increase (Decrease) in Accounts Payable 2,390 2,344 865
Increase (Decrease) in Other Current Liabilities 1,484 676 1,526
Cash Flow from Operations 17,633 20,164 20,354

Investing
Acquisitions of Property, Plant & Equipment (14,563) (15,666) (14,937)
Other Investing Transactions 380 1,203 (733)
Cash Flow from Investing (14,183) (14,463) (15,670)

Financing
(Increase) Decrease in Short-Term Borrowing (704) (1,193) 2,376
Increase in Long-Term Borrowing 7,691 7,199 11,167
Decrease in Long-Term Borrowing (2,969) (6,098) (9,066)
Acquisitio of Common Stock (3,580) (1,718) (7,691)
Dividends (2,511) (2,802) (3,586)
Other Financing Transactions (451) (130) 312
Cash Flow from Financing (2,524) (4,742) (6,488)
Net Change in Cash 926 959 (1,804)
Cash, Beginning of Year 5,488 6,414 7,373
Cash, End of Year 6,414 7,373 5,569
- - -
 2005 2006 2007 2008 2005 2006 2007 2008

Net Income + Interest Expense Net of Income Taxes Savings 12,349 13,366 14,253
ROA = -------------------------------------------------------------------------- = -------------- -------------- -------------- = 9.1% 8.9% 8.6%
Average Total Assets 135,165 150,907 164,833

Net Income + Interest Expense Net of Income Taxes Savings 12,349 13,366 14,253
Profit Margin for RoA = -------------------------------------------------------------------------- = -------------- -------------- -------------- = 4.0% 3.9% 3.8%
Sales 308,945 344,992 374,526

Sales 308,945 344,992 374,526

Asset Turnover = -------------------------------------------------------------------------- = -------------- -------------- -------------- = 2.29 2.29 2.27
Average Total Assets 135,165 150,907 164,833

Net Sales on Account 308,945 344,992 374,526

A/R Turnover = -------------------------------------------------------------------------- = -------------- -------------- -------------- = 141.2 125.4 115.3
Average Accounts Receivable 2,189 2,751 3,247

365 365 365 365

Days Sales Outstanding (DSO) = -------------------------------------------------------------------------- = -------------- -------------- -------------- = 2.6 2.9 3.2 Days
A/R Turnover 141.2 125.4 115.3

Cost of Goods Sold 237,649 264,152 286,515

Inventory Turnover = -------------------------------------------------------------------------- = -------------- -------------- -------------- = 7.7 8.0 8.3
Average Inventory 30,977 32,938 34,433

365 365 365 365

Days Inventory = -------------------------------------------------------------------------- = -------------- -------------- -------------- = 47.6 45.5 43.9 Days
Inventory Turnover 7.7 8.0 8.3

Sales 308,945 344,992 374,526

Fixed Asset Turnover = -------------------------------------------------------------------------- = -------------- -------------- -------------- = 3.9 3.8 3.7
Average Fixed Assets 79,699 90,082 100,208

Average Fixed Assets 79,699 90,082 100,208

Resiprocal FA T/O = -------------------------------------------------------------------------- = -------------- -------------- -------------- = 0.26 0.26 0.27
Sales 308,945 344,992 374,526

Net Income - Dividend on Preferred Stock 11,408 12,178 12,884

RoE or ROCE = -------------------------------------------------------------------------- = -------------- -------------- -------------- = 22.2% 21.2% 20.4%
Average Shareholder Equity 51,284 57,372 63,091

Net Income - Dividend on Preferred Stock 11,408 12,178 12,884

Profit Margin for ROCE = -------------------------------------------------------------------------- = -------------- -------------- -------------- = 3.7% 3.5% 3.4%
Sales 308,945 344,992 374,526

Average Total Assets 135,165 150,907 164,833

Capital Structue (Leverage) = -------------------------------------------------------------------------- = -------------- -------------- -------------- = 2.64 2.63 2.61
Average Shareholder Equity 51,284 57,372 63,091

Net Income 11,408 12,178 12,884

Earnings per Share (EPS) = -------------------------------------------------------------------------- = -------------- -------------- -------------- = 2.81 3.00 3.17
Numbr of Shares Outstanding 4,066 4,066 4,066

Share Price or Market Capitalization 48.0

Price to Earnings (P/E) = ---------------------------------- = --------------------------------------- = -------------- = 15.1
EPS or Net Income 3.17

Current Assets 38,854 43,824 46,588 47,585

Current Ratio = -------------------------------------------------------------------------- = -------------- -------------- -------------- -------------- = 0.90 0.90 0.90 0.81
Current Liabilities 43,182 48,826 51,754 58,454

Cash, Marketable Securities & Accounts Receivable 7,203 9,076 10,213 9,223
Quick Ratio = -------------------------------------------------------------------------- = -------------- -------------- -------------- -------------- = 0.17 0.19 0.20 0.16
Current Liabilities 43,182 48,826 51,754 58,454

Operating Cash Flow 17,633 20,164 20,354

Operating CF to CL = -------------------------------------------------------------------------- = -------------- -------------- -------------- = 38.3% 40.1% 36.9%
Average Current Liabilities 46,004 50,290 55,104

Purchases 240,078 265,646 288,010

Accounts Payable Turnover = -------------------------------------------------------------------------- = -------------- -------------- -------------- = 10.1 9.9 9.9
Average Accounts Payable 23,680 26,732 29,230

365 365 365 365

Days A/P Outstanding = -------------------------------------------------------------------------- = -------------- -------------- -------------- = 36.0 36.7 37.0 Days
Accounts Payable Turnover 10.1 9.9 9.9

Total Liabilities 76,385 91,378 95,692 107,792

Liabilities to Assets = -------------------------------------------------------------------------- = -------------- -------------- -------------- -------------- = 60.7% 63.2% 60.8% 62.5%
Total Assets 125,781 144,549 157,265 172,400

Long-Term Debt 28,885 36,533 36,807 42,288

Long-Term Debt Ratio = -------------------------------------------------------------------------- = -------------- -------------- -------------- -------------- = 23.0% 25.3% 23.4% 24.5%
Total Assets 125,781 144,549 157,265 172,400

Long-Term Debt 28,885 36,533 36,807 42,288

Debt-Equity = -------------------------------------------------------------------------- = -------------- -------------- -------------- -------------- = 0.58 0.69 0.60 0.65
Total Shareholders' Equity 49,396 53,171 61,573 64,608

Operating Cash Flow 17,633 20,164 20,354

Operating CF to Total Liabilities = -------------------------------------------------------------------------- = -------------- -------------- -------------- = 21.0% 21.6% 20.0%
Average Total Liabilities 83,882 93,535 101,742

Net Income before Interest and Taxes (EBIT) 18,631 20,352 21,895
Interest Coverage = -------------------------------------------------------------------------- = -------------- -------------- -------------- = 13.1 11.3 10.4
Interest Expense 1,420 1,809 2,103

Total Interest Bearing Liabilities

Debt to EBITDA = --------------------------------------------------------------------------
EBITDA

Total Interest Bearing Liabilities

Debt to Oper CF = --------------------------------------------------------------------------
Operating Cash Flow

Interest and Principal Payments on Interest Bearing Liabilities

Debt Service to EBITDA = --------------------------------------------------------------------------
EBITDA

Interest and Principal Payments on Interest Bearing Liabilities

Debt Service to Operating CF = --------------------------------------------------------------------------
Operating Cash Flow
BB inventory + Purchases - COGS = EB Inventory

Purchases = EB Inventory + COGS - BB Inventory

Interest Tax Shield Assets 1,000
No Debt Debt Debt 500
Income before Taxes 200 150 Interest rate 10%
Tax @ 35% 70 52.5 Annual Interest Expense 50

Interest Tax Shield 17.5

32.5
ITS = I x T

Shield ფარი

NI + I-ITS Sales NI + I-ITS Sales

ROA = ------------ ------------ ------------ -------------
AA Sales Sales AA

NI Sales AA NI Sales AA
ROCE = ------------ ------------ ------------ ------------ ------------ ------------
ACE Sales AA Sales AA ACE

Assets = Liabilities + CE
 2006 2007 2008
Effective Tax Rate 33.7% 34.3% 34.9% ეფექტური მოგების გადასახადის კოეფიციენტი

Sales Revenue 308,945 344,992 374,526 Statutory Rate 35%

Other Revenues 3,398 3,938 4,578
Total Revenues 312,343 348,930 379,104
Less Operating Expenses
Cost of Goods Sold 237,649 264,152 286,515
Selling & Administrative 56,063 64,426 70,694
Total 293,712 328,578 357,209
Income Before Income Taxes and Interest 18,631 20,352 21,895
Income Taxes plus ITS 6,282 6,986 7,642
Income Before Interest and Related Tax Effects 12,349 13,366 14,253
Interest Expense Net of Income Tax Effect (minus ITS) 941 1,188 1,369
Net Income 11,408 12,178 12,884

Check - - -
 2006 2007 2008
Sales Revenue 100.0% 100.0% 100.0%
Other Revenues 1.1% 1.1% 1.2%
Total Revenues 101.1% 101.1% 101.2%
Less Operating Expenses
Cost of Goods Sold 76.9% 76.6% 76.5%
Selling & Administrative 18.1% 18.7% 18.9%
Total 95.1% 95.2% 95.4%
Income Before Income Taxes and Interest 6.0% 5.9% 5.8%
Income Taxes 2.0% 2.0% 2.0%
Income Before Interest and Related Tax Effect 4.0% 3.9% 3.8%
Interest Expense Net of Income Tax Effect 0.3% 0.3% 0.4%
Net Income 3.7% 3.5% 3.4%
 2006 2007 2008
REVENUES
Wal-Mart 209,910 226,294 239,529
Sam's Club 39,798 41,582 44,357
International 59,237 77,116 90,640
Total 308,945 344,992 374,526

OPERATING INCOME
Wal-Mart 15,267 16,620 17,516
Sam's Club 1,407 1,480 1,618
International 3,438 4,265 4,769
Other (1,399) (1,868) (1,907)
Total 18,713 20,497 21,996

ASSETS
Wal-Mart 72,368 79,040 84,286
Sam's Club 10,588 11,448 11,722
International 48,752 55,903 62,961
Other 4,522 5,196 4,545
Total 136,230 151,587 163,514

DEPRECIATION
Wal-Mart 2,947 3,323 3,813
Sam's Club 436 475 507
International 1,011 1,409 1,684
Other 251 252 313
Total 4,645 5,459 6,317
 2006 2007 2008
ROA
Wal-Mart 21.1% 21.0% 20.8%
Sam's Club 13.3% 12.9% 13.8%
International 7.1% 7.6% 7.6%

Profit Margin for ROA

Wal-Mart 7.3% 7.3% 7.3%
Sam's Club 3.5% 3.6% 3.6%
International 5.8% 5.5% 5.3%

TOTAL ASSET TURNOVER

Wal-Mart 2.90 2.86 2.84
Sam's Club 3.76 3.63 3.78
International 1.22 1.38 1.44
Assets 1,000 ROCE COST OF DEBT
Leverage 1 16% 1% 2% 3% 4% 5% 6% 7%
Debt 500 0.2
Equity 500 0.4
Cost of Debt 4% 0.6
ROA 10% 0.8
1.0
NI + I 100 1.2
I 20 L 1.4
NI 80 E 1.6
V 1.8
ROCE 16% E 2.0
R 2.2
A 2.4
G 2.6
E 2.8
3.0
3.2
3.4
3.6
3.8
4.0
4.2
4.4
4.6
4.8
5.0
8% 9% 10% 11% 12% 13% 14% 15%EL
###
### 1200%
###
###
###
### 1000%

###
###
###
800%
###
###
###
### 600%
###
###
###
### 400%

###
###
### 200%
###
###
###
### 0%
- 1.0 2.0
###
 ROCE

1.0 2.0 3.0 4.0 5.0 6.0

G 5%
R 10%
C0 1

0 PV0 20.0
1 PV1 21.0
2 PV2 22.1
3 PV3 23.2
4 PV4 24.3
5 PV5 25.5
6 PV6 26.8
7 PV7 28.1
8 PV8 29.5
9 PV9 31.0
 Every Other
Returns Log Returns
100
105 5.0% 4.9%
111 5.7% 5.6% 11.0% 10.4% -0.3% -
100 -9.9% -10.4% -4.8% -4.9% 0.6% -
102 2.0% 2.0% -8.1% -8.5% 0.2% -
96 -5.9% -6.1% -4.0% -4.1% 0.1% -
95 -1.0% -1.0% -6.9% -7.1% -0.1% -
103 8.4% 8.1% 7.3% 7.0% 0.1% -