Model Facts

Copyright (C) 2001 by the Trustees of the University of Virginia Darden School Foundation.
Revised, December 6, 2001.

Page 1

Model Facts

This spreadsheet supports student analysis of the case, "The Body Shop
International Plc 2001" (UVA -F- 1349, v. 1.2)
Please note:
1) This is a working model. Assumptions / Inputs presented can be changed to vary
the results.
2) This spreadsheet incorporates circular logical reference. To resolve this
circularity, please instruct Excel to "iterate" several times in calculating the results.
This is accomplished by clicking on Tools/Options/Calculation, and then checking
the iteration box.

3) As long as default spreadsheet calculation is set as "automatic" impact of

changing assumptions will be computed in real time. Alternatively the F9 function
key may need to be invoked to recalculate results. To set the numerical calculation
settings to automatic, please click on Tools/Options/Calculations menu, and check
the automatic calculation option.

Copyright (C) 2001 by the Trustees of the University of Virginia Darden School Foundation.
Revised, December 6, 2001.

Page 2

A
1

Exhibit 1

Input Data

The Body Shop Plc 2001:

2
3

SALES

422,733 Format for Developing a Spreadsheet Model

4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35

COGS/SALES
OPERATING EXPENSES/SALES
INTEREST RATE
TAX RATE
DIVIDENDS (Thousand pounds)
CURR. ASSETS/SALES
CURR. LIABS./SALES
FIXED ASSETS
STARTING EQUITY

0.38
0.50
0.06
0.30
10,900
0.32
0.28
110,600
121,600

INCOME STATEMENT

2002

SALES
COGS
OPERATING EXPENSES
INTEREST EXPENSE (INCOME)
PROFIT BEFORE TAX
TAX
PROFIT AFTER TAX
DIVIDENDS
EARNINGS RETAINED
BALANCE SHEET
CURRENT ASSETS
FIXED ASSETS
TOTAL ASSETS
CURRENT LIABILITIES
DEBT
EQUITY
TOTAL LIAB. & NET WORTH

2002

A
1

The Body Shop Plc 2001:

2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35

Exhibit 2

Input Data

422,733 Spreadsheet Formulas to Forecast 2002 Financials:

0.38
0.50
0.06
0.30
10,900
0.32
0.28
110,600
121,600

SALES
COGS/SALES
OPERATING EXPENSES/SALES
INTEREST RATE
TAX RATE
DIVIDENDS (Thousand pounds)
CURR. ASSETS/SALES
CURR. LIABS./SALES
FIXED ASSETS
STARTING EQUITY
INCOME STATEMENT
SALES
COGS
OPERATING EXPENSES
INTEREST EXPENSE (INCOME)
PROFIT BEFORE TAX
TAX
PROFIT AFTER TAX
DIVIDENDS
EARNINGS RETAINED

2002
+B3
+B4*B16
+B5*B16
+B6*B33
+B16-B17-B18-B19
+B7*B20
+B20-B21
+B8
+B22-B23

BALANCE SHEET

2002

CURRENT ASSETS
FIXED ASSETS
TOTAL ASSETS

+B9*B16
+B11
+B28+B29

CURRENT LIABILITIES
DEBT
EQUITY
TOTAL LIAB. & NET WORTH

+B10*B16
+B30-B32-B34
+B12+B24
+B32+B33+B34

A
1

The Body Shop Plc 2001:

2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35

Exhibit 3

Input Data
SALES
COGS/SALES
OPERATING EXPENSES/SALES
INTEREST RATE
TAX RATE
DIVIDENDS (Thousand pounds)
CURR. ASSETS/SALES
CURR. LIABS./SALES
FIXED ASSETS
STARTING EQUITY
INCOME STATEMENT
SALES
COGS
OPERATING EXPENSES
INTEREST EXPENSE (INCOME)
PROFIT BEFORE TAX
TAX
PROFIT AFTER TAX
DIVIDENDS
EARNINGS RETAINED
BALANCE SHEET

422,733 Basic Forecasting Results for 2002

0.38
0.50
0.06
0.30
10,900
0.32
0.28
110,600
121,600
2002
422,733
160,639
211,367
Err:522
Err:522
Err:522
Err:522
10,900
Err:522
2002

CURRENT ASSETS
FIXED ASSETS
TOTAL ASSETS

135,275
110,600
245,875

CURRENT LIABILITIES
DEBT
EQUITY
TOTAL LIAB. & NET WORTH

118,365
Err:522
Err:522
Err:522

A
1

The Body Shop Plc 2001:

2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40

Exhibit 4

Input Data

422,733 Adjusting to Reflect Excess Cash

0.38
0.50
0.06
0.30
10,900
0.32
0.28
110,600
121,600

SALES
COGS/SALES
OPERATING EXPENSES/SALES
INTEREST RATE
TAX RATE
DIVIDENDS (Thousand pounds)
CURR. ASSETS/SALES
CURR. LIABS./SALES
FIXED ASSETS
STARTING EQUITY
INCOME STATEMENT
SALES
COGS
OPERATING EXPENSES
INTEREST EXPENSE (INCOME)
PROFIT BEFORE TAX
TAX
PROFIT AFTER TAX
DIVIDENDS
EARNINGS RETAINED

2002
422,733
160,639
211,367
+(B6*B34)-(B6*B28)
40,706
14,247
26,459
10,900
15,559

BALANCE SHEET

2002

EXCESS CASH
CURRENT ASSETS
FIXED ASSETS
TOTAL ASSETS

=IF(B40<0,-B40,0)
135,275
110,600
+B29+B30+B28

CURRENT LIABILITIES
DEBT
EQUITY
TOTAL LIAB. & NET WORTH

118,365
=IF(B40>0,+B40,0)
137,159
+B33+B34+B35

TRIAL ASSETS
TRIAL LIABILITIES AND EQUITY
PLUG: DEBT (EXCESS CASH)

+B29+B30
+B33+B35
+B38-B39

A
1

2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40

SALES
COGS/SALES
OPERATING EXPENSES/SALES
INTEREST RATE
TAX RATE
DIVIDENDS (Thousand pounds)
CURR. ASSETS/SALES
CURR. LIABS./SALES
FIXED ASSETS
STARTING EQUITY
INCOME STATEMENT
SALES
COGS
OPERATING EXPENSES
INTEREST EXPENSE (INCOME)
PROFIT BEFORE TAX
TAX
PROFIT AFTER TAX
DIVIDENDS
EARNINGS RETAINED
BALANCE SHEET

Exhibit 5

Input Data
422,733
0.38
0.50
0.06
0.30
10,900
0.32
0.28
110,600
121,600
2002
422,733
160,639
211,367
Err:522
Err:522
Err:522
Err:522
10,900
Err:522
2002

EXCESS CASH
CURRENT ASSETS
FIXED ASSETS
TOTAL ASSETS

Err:522
135,275
110,600
Err:522

CURRENT LIABILITIES
DEBT
EQUITY
TOTAL LIAB. & NET WORTH

118,365
Err:522
Err:522
Err:522

TRIAL ASSETS
TRIAL LIABILITIES AND EQUITY
PLUG: DEBT (EXCESS CASH)

245,875
Err:522
Err:522

The Body Shop Plc 2001:

Finished Results for 2002, Reflecting Excess Cash

A
1

SALES
COGS/SALES
OPERATING EXPENSES/SALES
INTEREST RATE
TAX RATE
DIVIDENDS (Thousand pounds)
CURR. ASSETS/SALES
CURR. LIABS./SALES
FIXED ASSETS
STARTING EQUITY
INCOME STATEMENT
SALES
COGS
OPERATING EXPENSES
INTEREST EXPENSE (INCOME)
PROFIT BEFORE TAX
TAX
PROFIT AFTER TAX
DIVIDENDS
EARNINGS RETAINED
BALANCE SHEET

The Body Shop Plc 2001:

Set up for a Forecast with Data Table

2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40

Exhibit 6

Input Data
422,733
0.38
0.50
0.06
0.30
10,900
0.32
0.28
110,600
121,600
2002
422,733
160,639
211,367
Err:522
Err:522
Err:522
Err:522
10,900
Err:522
2002

EXCESS CASH
CURRENT ASSETS
FIXED ASSETS
TOTAL ASSETS

Err:522
135,275
110,600
Err:522

CURRENT LIABILITIES
DEBT
EQUITY
TOTAL LIAB. & NET WORTH

118,365
Err:522
Err:522
Err:522

TRIAL ASSETS
TRIAL LIABILITIES AND EQUITY
PLUG: DEBT (EXCESS CASH)

245,875
Err:522
Err:522

Sensitivity Analysis
Of Debt and Excess Cash
To COGS/SALES Ratio
COGS/SALES
0.35
0.38
0.40
0.42
0.44
0.45
0.48

DEBT
=B34

Ex. CASH
=B28

A
1

SALES
COGS/SALES
OPERATING EXPENSES/SALES
INTEREST RATE
TAX RATE
DIVIDENDS (Thousand pounds)
CURR. ASSETS/SALES
CURR. LIABS./SALES
FIXED ASSETS
STARTING EQUITY
INCOME STATEMENT
SALES
COGS
OPERATING EXPENSES
INTEREST EXPENSE (INCOME)
PROFIT BEFORE TAX
TAX
PROFIT AFTER TAX
DIVIDENDS
EARNINGS RETAINED
BALANCE SHEET

The Body Shop Plc 2001:

Finished Forecast with Data Table

2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40

Exhibit 7

Input Data
422,733
0.38
0.50
0.06
0.30
10,900.00
0.32
0.28
110,600
121,600
2002
422,733
160,639
211,367
Err:522
Err:522
Err:522
Err:522
10,900
Err:522
2002

EXCESS CASH
CURRENT ASSETS
FIXED ASSETS
TOTAL ASSETS

Err:522
135,275
110,600
Err:522

CURRENT LIABILITIES
DEBT
EQUITY
TOTAL LIAB. & NET WORTH

118,365
Err:522
Err:522
Err:522

TRIAL ASSETS
TRIAL LIABILITIES AND EQUITY
PLUG: DEBT (EXCESS CASH)

245,875
Err:522
Err:522

Sensitivity Analysis
Debt and Excess Cash
By COGS/SALES
COGS/SALES
0.35
0.38
0.40
0.42
0.44
0.45
0.48

DEBT
+B34
0
0
0
0
0
2,102
11,369

Ex. CASH
+B28
28,787
19,520
13,342
7,165
987
0
0

Exhibit 8
The Body Shop Plc 2001:
Historical Financial Statements ( in millions)
Fiscal Year Ended Feb. 28
1999
()

1999
(% sales)

2000
()

2000
(% sales)

2001
()

2001
(% sales)

Income Statement
Turnover
Cost of sales
Gross profit

303.7
127.7
176.0

100.0
42.0
58.0

330.1
130.9
199.2

100.0
39.7
60.3

374.1
149.0
225.1

100.0
39.8
60.2

Operating expenses
- excluding exceptional costs
- exceptional costs*
Restructuring costs**
Net interest expense
Profit before tax
Tax expense
Profit/(loss) after tax

151.4
4.5
16.6
0.1
3.4
8.0
(4.6)

49.9
1.5
5.5
0.0
1.1
2.6
-1.5

166.2
0.0
2.7
1.5
28.8
10.4
18.4

50.3
0.0
0.8
0.5
8.7
3.2
5.6

195.7
11.2
1.0
4.4
12.8
3.5
9.3

52.3
3.0
0.3
1.2
3.4
0.9
2.5

Ordinary dividends
Profit/(loss) retained

10.9
(15.5)

3.6
-5.1

10.9
7.5

3.3
2.3

10.9
(1.6)

2.9
-0.4

Fiscal Year Ended Feb. 28

Balance Sheet

1999
()

1999
(% sales)

2000
()

2000
(% sales)

2001
()

2001
(% sales)

Assets
Cash
Accounts receivable
Inventories
Other current assets
Net fixed assets
Other assets***
Total assets

34.0
27.8
38.6
12.5
87.8
0.0
200.7

11.2
9.2
12.7
4.1
28.9
0.0
66.1

19.2
30.3
44.7
15.6
104.7
6.0
220.5

5.8
9.2
13.5
4.7
31.7
1.8
66.8

13.7
30.3
51.3
17.5
110.6
6.7
230.1

3.7
8.1
13.7
4.7
29.6
1.8
61.5

Liabilities and equity

Accounts payable
Taxes payable
Accruals
Overdrafts
Other current liabilities
Long-term liabilities
Other liabilities****
Shareholders' equity
Total liabs. and equity

13.0
11.3
10.8
0.0
21.6
28.0
1.7
114.3
200.7

4.3
3.7
3.6
0.0
7.1
9.2
0.6
37.6
66.1

20.5
11.7
15.6
0.3
13.3
36.7
1.0
121.4
220.5

6.2
3.5
4.7
0.1
4.0
11.1
0.3
36.8
66.8

10.7
7.1
11.5
0.7
16.9
61.2
0.4
121.6
230.1

2.9
1.9
3.1
0.2
4.5
16.4
0.1
32.5
61.5

* Exceptional costs in 2001 included redundancy costs (4.6 million), costs of supply chain development (2.4 million) and impairment of fixed assets and goodwill (4.2 million). The
exceptional costs of 4.5 million in 1999 were associated with closing unprofitable shops and an impairment review of the remaining shops in the USA.
** Restructuring costs in 2001 and 2000 relate to the sale of manufacturing plants in Littlehampton, England, and to associated reorganization costs. Restructuring costs in 1999 arose
from the realignment of the management structure of the business in the US and the UK.
*** Other assets in 2001 and 2000 represented receivables relating to the sale of the company's Littlehampton manufacturing plant.
**** Other liabilities included mostly deferred taxes.