Juhayna Food Industries

Annual Balance Sheet

Period Ended 12/31/15 12/31/14 12/31/13 12/31/12

In millions of EGP
(except for per share items)
Cash 71.37 43.6 12.49 14.56
Cash & Equivalents 723.55 376.51 558.4 509.22
Short Term Investments -- -- 0 240.03
Accounts Receivable - Trade, Net 64.47 64.03 71.65 66.64
Notes Receivable - Short Term 16.93 33.63 8.39 --
Receivables - Other 90.48 80.22 74.69 79.82
Inventories - Finished Goods 235.82 215.3 193.21 127.5
Inventories - Work In Progress -- 0 0 6.98
Inventories - Raw Materials 127.96 151.87 259.27 81.19
Inventories - Other 243.1 190.35 163.71 131.93
Prepaid Expenses 16.13 17.7 36.55 --
Other Current Assets, Total 50.93 5.05 5.05 6.58

Total Current Assets 1,640.73 1,178.26 1,383.40 1,264.44

Buildings - Gross 1,156.95 753.15 637.9 502.5

Land / Improvements - Gross 209.23 199.6 151.79 124.01
Machinery / Equipment - Gross 2,253.07 1,825.51 1,644.92 1,451.15
Construction in Progress - Gross 430.87 1,067.15 1,071.43 530.58
Other Property / Plant / Equipment - Gross 85.37 77.84 62.44 53.67
Accumulated Depreciation, Total -888.98 -735.32 -749.98 -622.02
Property / Plant / Equipment, Total - Net 3,246.51 3,187.93 2,818.50 2,039.89
Goodwill, Net 97.09 97.09 97.09 97.09
Long Term Investments 10.15 50.93 47.66 43.11
Other Long Term Assets 0.77 0.78 0.79 0.8

Total Assets 4,995.26 4,515.00 4,347.44 3,445.34

Accounts Payable 197.6 140.4 130.74 134.87

Payable / Accrued 18.37 27.13 32.44 --
Accrued Expenses 68.14 66.59 53.12 55.79
Notes Payable / Short Term Debt 671.35 779.63 792.75 406.22
Current Portion of Long Term Debt / Capital 247.35 254.16 256.9 152.03
Leases
Dividends Payable 0 0.01 0.7 0.13
Customer Advances 6.61 5 4.08 1.16
Income Taxes Payable 92.92 77.22 69.06 43.07
Other Payables 4.68 2.83 1.97 35.34
Other Current Liabilities 11.96 8.57 10.09 11.55

Total Current Liabilities 1,318.98 1,361.53 1,351.85 840.16

Long Term Debt 1,013.34 705.7 675.11 525.64

Deferred Income Tax 154.6 74.84 66.95 51.97
Minority Interest 0.82 0.76 0.64 0.52
Other Long Term Liabilities 85.4 88.48 89.21 38.92

Total Liabilities 2,573.14 2,231.31 2,183.76 1,457.22

Common Stock 941.41 941.41 706.05 706.05

Additional Paid-In Capital 330.92 330.92 330.92 330.92
Retained Earnings (Accumulated Deficit) 1,149.80 1,011.37 1,126.71 951.15
Treasury Stock - Common -- -- -- 0

Total Equity 2,422.13 2,283.69 2,163.68 1,988.12

Total Liabilities & Shareholders' Equity 4,995.26 4,515.00 4,347.44 3,445.34

Juhayna Food Industries
Annual Income Statement
Period Ended 12/31/15 12/31/14 12/31/13 12/31/12
In millions of EGP
(except for per share items)
Revenue 4,231.16 3,684.06 3,293.71 2,854.97
Cost of Revenue 2,749.36 2,693.05 2,304.72 1,962.75

Gross Profit 1,481.80 991.01 988.99 892.22

Selling / General / Administrative Expenses 798.5 606.36 533.51 455.11

Depreciation / Amortization 13.72 14.25 15.05 13.13
Litigation -- 0 0.1 5.41
Unusual Expense (Income) 10.31 0.25 6.3 10.63
Other Operating Expenses 23.64 -0.73 -10.41 6.65

Operating Income 635.63 370.88 444.54 406.7

Interest Expense, Net Non-Operating -196.14 -144.01 -123.31 -92.61

Interest / Investment Income, Non-Operating 21.58 20.98 70.41 68.61
Other Non-Operating Income (Expense) -10.67 -20 -- --

Net Income Before Taxes 450.4 227.85 391.65 382.7

Provision for Income Taxes 170.47 57.76 63.32 57.29

Net Income After Taxes 279.93 170.09 328.33 325.41

Minority Interest -0.1 -0.13 -0.15 -0.09

Net Income 279.83 169.96 328.17 325.33

Juhayna Food Industries

In millions of EGP

Cost Revenue
Juice with watermelon
Taste
200 15
Period Ended 12/31/15 12/31/14 12/31/13

Liquidity Ratios
Current Ratio 1.24 0.87 1.02
Quick Ratio 0.78 0.46 0.57

Leverage Ratio
Total Debt Ratio 0.52 0.49 0.50
Times Interest Earned Ratio -3.24 -2.58 -3.61

Debt/Equity 0.39 0.32 0.31

Equity multiplier 2.06 1.98 2.01
Asset management
Total Assets ratio 0.30 0.22 0.23
Inventory Ratio 11.66 12.51 11.93
Day's slaes in inventory 31.31 29.18 30.60
A/R ratio 65.63 57.54 45.97
Average collection period 5.56 6.34 7.94
profitability ratios
Profit margin 0.07 0.05 0.10
ROI 0.06 0.04 0.08
ROE 0.12 0.07 0.15
Plow Back / b / RR 1.00 1.00 1.00
ROA 0.06 0.04 0.08
internal & sustainable growth
Internal Growth rate 0.06 0.04 0.08
Sustainable growth 0.12 0.069995881384 0.14968004388
Networking Capital 321.75 -183.27 31.55
EBIT 635.63 370.88 444.54
Networking Capital -0.79
Cost of equity

Free risk return 10 ‫الدوله‬

Beta 0.7 firm
Market risk primum 6.25%
cost of equity 0.66875

Risk free 0.1

default spread 3%
Cost of Debt 13%

Weight of equity 0.484885671617 0.505800664452 0.497690594925

Weight of debt 0.515114328383
cost of debt
taxe 0.378485790409 0.253500109721 0.161674964892
deprecision 2015 600

WACC 0.365886906599
 12/31/12 Ratio Description

1.51 Current Assets/Current Liabilities

1.09 Current Assets-Inventory/Current Liabilities

0.42 Total Liabilities/Total Assets

-4.39 Opearting Profit/Interest

0.36 Total Debt/Total Equity

1.73 Total Assets/Total Equity

0.26 Sales/Assets
15.39 COGS/Inventory
23.71 365/inventory ratio
42.84 sales/A/R revenue
8.52 365/A/R ratio

0.11 Net income/sales

0.09 Net income/Assets
0.16 Net income /Owner's equity
1.00 1- Dividends (net income-dividends)/net income
0.09 Net income/total assets

0.10 (ROA x b) /(1-ROA x b)

0.159936064919
424.28 CA-CL
406.7 Operating income

0.577046097047 Total equity/ total assets

1-weight of equity

0.149699503528
 from cash flow

weight of equity X Cost of equity

ds)/net income
 Project new company specialized in hegh strength cement (in millions of EGP)
Estimated cost 200
1st year revenue 50
depreciation 20
INITIAL INVESTEMENT ∆NCS /EBIT 0.48
(-200) ∆NWC /EBIT -0.14
Growth 12%

New Project CF0 CF1 CF2 CF3

EBIT 50.0 51.5 53.0
ADD. DEPRECIATION 20.0 20.0 20.0
LESS CHANGE NCS (48%) 24.0 24.7 25.5
LESS NWC (14%) (7.0) (7.2) (7.4)

FREE CASH FLOW 53.0 54.0 55.0

TERMINAL VALUE
(200) 53.0 54.0 55.0

SUM OF PV 793

1-NPV 593 accept

2-PROF.INDEX 2.64 accept
3-Pay back period 3 years depends o
4-ROI 0.29 depends o
5-IRR 32% Reject
ons of EGP)

CF4 CF5 CF6 CF7 CF8 CF9 CF10

54.6 56.3 58.0 59.7 61.5 63.3 65.2
20.0 20.0 20.0 20.0 20.0 20.0 20.0
26.2 27.0 27.8 28.7 29.5 30.4 31.3
(7.6) (7.9) (8.1) (8.4) (8.6) (8.9) (9.1)

56.1 57.1 58.3 59.4 60.6 61.8 63.1

626
56.1 57.1 58.3 59.4 60.6 61.8 689.0

accept NPV IS POSITIVE

accept PI > 1
depends on management decision
depends on management decision
Reject IRR < WAAC , the project will lose WACC = 36.6%