Pacific Grove Spice Company

Exhibit 1 - Income Statement ($ in millions except for price per share)

Income Statement 06/30/07 06/30/08 06/30/09 06/30/10 06/30/11 06/30/12 06/30/13 06/30/14 06/30/15

Net Sales $46.180 $53.107 $57.887 $68.017 $80.940 $93.081 $105.182 $116.751 $127.259
Cost of Goods Sold 26.784 30.802 33.575 39.790 47.512 54.452 61.531 68.300 74.447
Gross Profit Margin 19.396 22.305 24.312 28.227 33.428 38.629 43.650 48.452 52.813

R&D Expense 0.739 0.850 0.926 1.088 1.295 1.489 1.683 1.868 2.036
SG&A Expense 14.916 17.260 18.871 21.902 26.063 29.321 33.132 36.777 40.087
Earnings Before Interest & Taxes 3.741 4.195 4.515 5.237 6.070 7.819 8.835 9.807 10.690

Interest Expense 2.906 2.940 2.668 2.423 2.817 3.237 3.582 3.894 4.124
Earnings Before Income Taxes 0.835 1.255 1.847 2.814 3.253 4.581 5.254 5.913 6.566

Income Taxes 0.225 0.339 0.499 0.760 0.879 1.237 1.418 1.597 1.773
Net Income 0.610 0.916 1.348 2.054 2.374 3.344 3.835 4.316 4.793

Growth rate of sale 15.00% 9.00% 17.50% 19.00% 15.00% 13.00% 11.00% 9.00%
Income tax rate assumed 27.00% 27.00% 27.00% 27.00%
Price/Earnings Ratio 16.0
Market Value of Equity $37.990

Common Shares Outstanding 1,165,327 37,989,660

Price per share $32.60

Note: 2012-2015 are projected data

Pacific Grove Spice Company

Exhibit 2 - Balance Sheet ($ in millions)

Assets 06/30/07 06/30/08 06/30/09 06/30/10 06/30/11 06/30/12 06/30/13 06/30/14 06/30/15

Cash $2.325 $2.680 $2.924 $3.440 $4.102 $4.672 $5.279 $5.860 $6.387
Accounts Receivable 9.489 10.912 11.895 13.976 16.632 19.126 21.613 23.990 26.149
Inventories 6.697 7.701 8.394 9.947 11.878 13.613 15.383 17.075 18.612
Prepaid Expenses 0.770 0.840 0.910 0.828 0.969 1.117 1.262 1.401 1.527
Total Current Assets 19.281 22.133 24.123 28.191 33.581 38.528 43.537 48.326 52.675

Net Property & Equipment * 15.200 16.000 17.300 19.100 22.400 25.157 28.427 31.554 34.395
Other Long-Term Assets 2.241 2.479 2.671 3.074 3.639 4.189 4.733 5.254 5.727
Total Assets 36.722 40.612 44.094 50.365 59.620 67.874 76.697 85.134 92.797

Growth rate of assets 10.6% 8.6% 14.2% 18.4% 13.8% 13.0% 11.0% 9.0%

Liabilities & Owners' Equity 06/30/07 06/30/08 06/30/09 06/30/10 06/30/11 06/30/12 06/30/13 06/30/14 06/30/15

Bank Notes Payable $7.669 $8.820 $9.613 $11.295 $13.442 $15.492 $17.506 $19.432 $21.181
Accounts Payable 2.203 2.532 2.760 3.271 3.905 4.476 5.057 5.614 6.119
Current Portion of Long-Term Debt 0.973 1.060 1.124 1.240 1.483 1.614 1.751 1.842 1.869
Accrued Expenses 0.771 0.884 0.965 1.129 1.345 1.545 1.746 1.938 2.113
Total Current Liabilities 11.616 13.296 14.462 16.935 20.175 23.127 26.061 28.826 31.282

Long-Term Debt 14.600 15.894 16.862 18.606 22.247 24.204 26.258 27.614 28.028
Total Liabilities 26.216 29.190 31.324 35.541 42.422 47.331 52.319 56.440 59.310 11000

Common Stock 6.881 6.881 6.881 6.881 6.881 6.881 6.881 6.881 6.881
Retained Earnings 3.625 4.541 5.889 7.943 10.317 13.661 17.497 21.813 26.606
Total Shareholder Equity 10.506 11.422 12.770 14.824 17.198 20.543 24.378 28.694 33.488

Total Liabilities & Net Worth 36.722 40.612 44.094 50.365 59.620 67.874 76.697 85.134 92.797

* Net property & equipment for all years is calculated as net property & equipment from the prior year, plus capital expenditures in the same year, minus
depreciation expense in the same year. Depreciation expense is included in reported operating expenses; it is not broken out separately.

Note: 2012-2015 are projected data 3.6397202

Cash flow 06/30/08 06/30/09 06/30/10 06/30/11 06/30/12 06/30/13 06/30/14 06/30/15

Actividades de operación
Utilidad neta $0.916 $1.348 $2.054 $2.374 $3.344 $3.835 $4.316 $4.793
Depreciación

Activos corrientes:
Cuentas por cobrar - neto -$1.423 -$0.983 -$2.081 -$2.656 -$2.494 -$2.486 -$2.377 -$2.159
Inventarios -$1.004 -$0.693 -$1.553 -$1.931 -$1.735 -$1.770 -$1.692 -$1.537
Otros activos corrientes -$0.070 -$0.070 $0.082 -$0.141 -$0.148 -$0.145 -$0.139 -$0.126

Pasivos corrientes:
Proveedores $0.329 $0.228 $0.511 $0.634 $0.571 $0.582 $0.556 $0.505
Otros pasivos corrientes $0.113 $0.081 $0.164 $0.216 $0.200 $0.201 $0.192 $0.174

Efectivo de actividades de operación -$1.139 -$0.089 -$0.823 -$1.504 -$0.262 $0.217 $0.857 $1.651

Actividades de inversión
Inversiones de corto plazo
Activos fijos -$0.800 -$1.300 -$1.800 -$3.300 -$2.757 -$3.270 -$3.127 -$2.841
Otros activos fijos -$0.238 -$0.192 -$0.403 -$0.565 -$0.550 -$0.545 -$0.521 -$0.473

Efectivo de actividades de inversión -$1.038 -$1.492 -$2.203 -$3.865 -$3.307 -$3.815 -$3.648 -$3.314

Actividades de financiación
Deuda de corto plazo
Bank Notes Payable $1.151 $0.793 $1.682 $2.147 $2.050 $2.014 $1.926 $1.749
Porción corto DLP $0.087 $0.064 $0.116 $0.243 $0.131 $0.137 $0.090 $0.028
Pasivo largo plazo $1.294 $0.968 $1.744 $3.641 $1.957 $2.054 $1.356 $0.414
Common Stock 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
Efectivo de actividades de financiación $2.532 $1.825 $3.542 $6.031 $4.139 $4.205 $3.372 $2.190

Change in cash and equivalents $0.355 $0.244 $0.516 $0.662 $0.570 $0.607 $0.581 $0.528

Initial balance $2.325 $2.680 $2.924 $3.440 $4.102 $4.672 $5.279 $5.860

Final balance in cash and equivalents $2.680 $2.924 $3.440 $4.102 $4.672 $5.279 $5.860 $6.388

Difference $0.000 $0.000 $0.000 $0.000 $0.000 $0.000 $0.000 $0.000

Financial Ratios
06/30/07 06/30/08 06/30/09 06/30/10 06/30/11 06/30/12 06/30/13 06/30/14 06/30/15
Liquidity:
Current ratio 1.66 1.66 1.67 1.66 1.66 1.67 1.67 1.68 1.68
Quick ratio 1.08 1.09 1.09 1.08 1.08 1.08 1.08 1.08 1.09

Leverag:
Debt-to-assets 0.71 0.72 0.71 0.71 0.71 0.70 0.68 0.66 0.64
Debt-to-equity 2.50 2.56 2.45 2.40 2.47 2.30 2.15 1.97 1.77
Interest coverage (EBIT) 1.29 1.43 1.69 2.16 2.15 2.42 2.47 2.52 2.59

Profitability:
Net profit margin 1.3% 1.7% 2.3% 3.0% 2.9% 3.6% 3.6% 3.7% 3.8%
Operating margin 8.1% 7.9% 7.8% 7.7% 7.5% 8.4% 8.4% 8.4% 8.4%
Gross margin 72.4% 72.4% 72.4% 70.9% 70.4% 70.9% 70.9% 70.9% 70.9%

Return On Assets (ROA) 10.2% 10.3% 10.2% 10.4% 10.2% 11.5% 11.5% 11.5% 11.5%
Return On Equity (ROE) 35.6% 36.7% 35.4% 35.3% 35.3% 38.1% 36.2% 34.2% 31.9%
Dupont:
Net profit margin 1.3% 1.7% 2.3% 3.0% 2.9% 3.6% 3.6% 3.7% 3.8%
Asset turnover (Sales / Assets) 1.26 1.31 1.31 1.35 1.36 1.37 1.37 1.37 1.37
1.7% 2.3% 3.1% 4.1% 4.0% 4.9% 5.0% 5.1% 5.2%
Return On Invested Capital (ROIC)
Implied tax rate 26.9% 27.0% 27.0% 27.0% 27.0% 27.0% 27.0% 27.0% 27.0%
ROIC 8.1% 8.2% 8.2% 8.3% 8.1% 9.2% 9.2% 9.2% 9.2%

Working capital:
Account receivable days 75 75 75 75 75 75 75 75 75
Inventory days 91 91 91 91 91 91 91 91 91
Accounts payable days 30 30 30 30 30 30 30 30 30
Cash Conversion Cycle 136 136 136 136 136 136 136 136 136

Cash days 18 18 18 18 18 18 18 18 18

Other ratios:
COGS to Sales 58.0% 58.0% 58.0% 58.5% 58.7% 58.5% 58.5% 58.5% 58.5%
Operating expenses to sales 33.9% 34.1% 34.2% 33.8% 33.8% 33.1% 33.1% 33.1% 33.1%
Pacific Grove Spice Company

Exhibit 3 - Capital Budgeting Analysis of Television Program Opportunity

Initial Investment Cash Flow Year 0

Equipment -$1,440,000

Growth Rate of Sales 5.0% 5.0% 5.0% 5.0%

Operating Cash Flows Year 1 Year 2 Year 3 Year 4 Year 5

Sales $8,100,000 $8,505,000 $8,930,250 $9,376,763 $9,845,601

Cost of Goods Sold at 58.5% of sales 4,738,500 4,975,425 5,224,196 5,485,406 5,759,676
Gross Profit Margin 3,361,500 3,529,575 3,706,054 3,891,356 4,085,924

Promotion Expense at 11% of sales 891,000 935,550 982,328 1,031,444 1,083,016

General & Administrative Expense 760,000 798,000 837,900 879,795 923,785
Depreciation Expense 288,000 288,000 288,000 288,000 288,000
Incremental Operating Profit 1,422,500 1,508,025 1,597,826 1,692,118 1,791,123

Income Taxes at 27% 384,075 407,167 431,413 456,872 483,603

Incremental Net Income 1,038,425 1,100,858 1,166,413 1,235,246 1,307,520

+ Depreciation Expense 288,000 288,000 288,000 288,000 288,000

Incremental Operating Cash Flow 1,326,425 1,388,858 1,454,413 1,523,246 1,595,520

Yearly Net Working Capital Investment Year 1 Year 2 Year 3 Year 4 Year 5
Additional A/R at 75 Days Sales Outstandi $1,664,384 $83,219 $87,380 $91,749 $96,337
Additional Inventory at 4 Inventory Turns 1,184,625 59,231 62,193 65,302 68,568
Additional A/P at 30 Days COGS 389,466 19,473 20,447 21,469 22,543
Total NWC Investment -2,459,543 -122,977 -129,126 -135,582 -142,361

Terminal Cash Flows Year 1 Year 2 Year 3 Year 4 Year 5

Recovery of NWC $2,989,590

Total Project Cash Flows -$1,440,000 -$1,133,118 $1,265,881 $1,325,287 $1,387,664 $4,442,748

Internal Rate of Return 41.28%

Valor Presente Neto TIO 20 $1,716,414

Valor Presente Neto TIO 15 $2,405,498
Valor Presente Neto TIO 10 $3,278,174
Pacific Grove Spice Company

Exhibit 4 - High Country Seasonings Income Statement ($ in millions)

Income Statement 06/30/08 06/30/09 06/30/10 06/30/11

Net Sales $15.401 $15.919 $16.664 $17.564

Cost of Goods Sold 9.887 10.284 10.732 11.329
Gross Profit Margin 5.514 5.635 5.932 6.235

R&D Expense 0.000 0.000 0.000 0.000

SG&A Expense 4.359 4.553 4.816 5.041
Earnings Before Interest & Taxes 1.155 1.082 1.116 1.194

Interest Expense 0.057 0.072 0.060 0.063

Earnings Before Income Taxes 1.098 1.010 1.056 1.131

Income Taxes 0.297 0.273 0.285 0.306

Net Income 0.801 0.737 0.771 0.825

Dividends Paid 0.288 0.254 0.422 0.401

Pacific Grove Spice Company

Exhibit 5 - High Country Seasonings Balance Sheet ($ in millions)

Assets 06/30/08 06/30/09 06/30/10 06/30/11

Cash $0.585 $0.610 $0.639 $0.673

Accounts Receivable 3.165 3.271 3.424 3.609
Inventories 2.060 2.142 2.236 2.360
Prepaid Expenses 0.231 0.239 0.250 0.263
Total Current Assets 6.041 6.262 6.549 6.905

Net Property & Equipment * 3.831 4.146 4.273 4.424

Other Long-Term Assets 0.462 0.477 0.500 0.527
Total Assets 10.334 10.885 11.322 11.856

Liabilities + Owners' Equity 06/30/08 06/30/09 06/30/10 06/30/11

Bank Notes Payable $0.791 $0.818 $0.856 $0.902

Accounts Payable 0.813 0.845 0.882 0.931
Current Portion of Long-Term Debt 0.000 0.000 0.000 0.000
Accrued Expenses 0.262 0.271 0.283 0.299
Total Current Liabilities 1.866 1.934 2.021 2.132

Long-Term Debt 0.000 0.000 0.000 0.000

Total Liabilities 1.866 1.934 2.021 2.132

Common Stock 4.584 4.584 4.584 4.584

Retained Earnings 3.884 4.367 4.716 5.140
Total Shareholder Equity 8.468 8.951 9.300 9.724

Total Liabilities & Net Worth 10.334 10.885 11.322 11.856

$10.334 $10.885 $11.321 $11.856
* Net property & equipment for all years is calculated as net property & equipment from the
prior year, plus capital expenditures in the same year, minus depreciation expense in the
same year. Depreciation expense is included in reported operating expenses; it is not
broken out separetely.

High Country Seasoning

Flujo de efectivo
1985-1989

Actividades de operación
Utilidad neta
Depreciación

Activos corrientes:
Cuentas por cobrar - neto
Inventarios
Otros activos corrientes

Pasivos corrientes:
Provedores más de 30 días
Proveedores
Provisión EPS

Efectivo de actividades de operación

Actividades de inversión
Inversiones de corto plazo
Activos fijos
Otros activos fijos

Efectivo de actividades de inversión

Actividades de financiación
Deuda de corto plazo
Crédito bancario
Crédito de corto - Jorge
Porción corto DLP
Pasivo largo plazo

Efectivo de actividades de financiación

Change in cash and equivalents

Initial balance

Final balance in cash and equivalents

Caja y banco según rotación

Difference
Pacific Grove Spice Company

Exhibit 6 - Industry Information

McCormick & Company* ConAgra Foods** Pacific Grove Spice Co.

2010 2011 2010 2011 2010 2011

Sales revenue (in millions) $3,336.8 $3,440.5 $12,014.9 $12,303.1 $68.0 $80.9
Net income (in millions) $370.2 $386.5 $725.8 $817.0 $2.1 $2.4
Earnings per share $2.79 $2.92 $1.63 $1.90 $1.76 $2.04
Closing stock price $44.01 $49.60 $24.02 $25.76 $25.87 $32.60
Price/earnings ratio 15.8 17.0 14.7 13.6 14.7 16.0

Total liabilities (in millions) $1,957.0 $1,947.3 $6,809.1 $6,700.2 $35.5 $42.4
Interest-bearing debt (in millions) $880.3 $989.7 $3,487.2 $3,233.8 $31.1 $37.2

Book value of equity (in millions) $1,462.7 $1,642.1 $4,928.9 $4,708.5 $14.8 $17.2

Shares outstanding (in millions) 133.1 132.4 443.6 429.7 1.2 1.2
Market value of equity (in millions) $5,857.7 $6,567.0 $10,655.3 $11,069.1 $30.1 $38.0

Equity beta coefficient 0.50 0.60 0.85

* McCormick's fiscal year-end is November 30. The 2011 data presents the most recent four quarters of
income statement information and the May 31, 2011, balance sheet information.

** ConAgra's fiscal year-end is May 31. The 2011 data presents the full 2011 fiscal year.

Current market interest rates in July of 2011:

Long-term U.S. Treasury Bonds 4.25%

Long-term AA Corporate Bonds 5.20%

Long-Term BBB Corporate Bonds 5.65%

Market Risk Premium, S&P 500 vs. Long-term Treasuries 7.00%

Prime Interest Rate 3.25%
Pacific Grove Spice Company

Exhibit 3 - Capital Budgeting Analysis of Television Program Opportunity

Initial Investment Cash Flow Year 0

Equipment -$1,440,000

Growth Rate of Sales 5.0% 5.0% 5.0% 5.0%

Operating Cash Flows Year 1 Year 2 Year 3 Year 4 Year 5

Sales $8,100,000 $8,505,000 $8,930,250 $9,376,763 $9,845,601

Cost of Goods Sold at 58.5% of sales 4,738,500 4,975,425 5,224,196 5,485,406 5,759,676
Gross Profit Margin 3,361,500 3,529,575 3,706,054 3,891,356 4,085,924

Promotion Expense at 11% of sales 891,000 935,550 982,328 1,031,444 1,083,016

General & Administrative Expense 760,000 798,000 837,900 879,795 923,785
Depreciation Expense 288,000 288,000 288,000 288,000 288,000
Incremental Operating Profit 1,422,500 1,508,025 1,597,826 1,692,118 1,791,123

Income Taxes at 27% 384,075 407,167 431,413 456,872 483,603

Incremental Net Income 1,038,425 1,100,858 1,166,413 1,235,246 1,307,520

+ Depreciation Expense 288,000 288,000 288,000 288,000 288,000

Incremental Operating Cash Flow 1,326,425 1,388,858 1,454,413 1,523,246 1,595,520

Yearly Net Working Capital Investment Year 1 Year 2 Year 3 Year 4 Year 5
Additional A/R at 75 Days Sales Outstandi $1,664,384 $83,219 $87,380 $91,749 $96,337
Additional Inventory at 4 Inventory Turns 1,184,625 59,231 62,193 65,302 68,568
Additional A/P at 30 Days COGS 389,466 19,473 20,447 21,469 22,543
Total NWC Investment -2,459,543 -122,977 -129,126 -135,582 -142,361

Terminal Cash Flows Year 1 Year 2 Year 3 Year 4 Year 5

Recovery of NWC $2,989,590

Total Project Cash Flows -$1,440,000 -$1,133,118 $1,265,881 $1,325,287 $1,387,664 $4,442,748

Internal Rate of Return 41.28%

Valor Presente Neto TIO 20 $1,716,414

Valor Presente Neto TIO 15 $2,405,498
Valor Presente Neto TIO 10 $3,278,174
Pacific Grove Spice Company

Exhibit 2 - Balance Sheet ($ in millions)

Assets 06/30/07 06/30/08 06/30/09 06/30/10 06/30/11 06/30/12 06/30/13 06/30/14 06/30/15

Cash $2.325 $2.680 $2.924 $3.440 $4.102 $13.299 $13.906 $14.487 $19.761
Accounts Receivable 9.489 10.912 11.895 13.976 16.632 19.126 21.613 23.990 26.149
Inventories 6.697 7.701 8.394 9.947 11.878 13.613 15.383 17.075 18.612
Prepaid Expenses 0.770 0.840 0.910 0.828 0.969 1.117 1.262 1.401 1.527
Total Current Assets 19.281 22.133 24.123 28.191 33.581 47.155 52.163 56.953 66.048

Net Property & Equipment * 15.200 16.000 17.300 19.100 22.400 25.157 28.427 31.554 34.395
Other Long-Term Assets 2.241 2.479 2.671 3.074 3.639 4.189 4.733 5.254 5.727
Total Assets 36.722 40.612 44.094 50.365 59.620 76.501 85.324 93.761 106.170

Growth rate of assets 10.6% 8.6% 14.2% 18.4% 28.3% 11.5% 9.9% 13.2%

Liabilities & Owners' Equity 06/30/07 06/30/08 06/30/09 06/30/10 06/30/11 06/30/12 06/30/13 06/30/14 06/30/15

Bank Notes Payable $7.669 $8.820 $9.613 $11.295 $13.442 $15.492 $17.506 $19.432 $21.181
Accounts Payable 2.203 2.532 2.760 3.271 3.905 4.476 5.057 5.614 6.119
Current Portion of Long-Term Debt 0.973 1.060 1.124 1.240 1.483 1.466 1.603 1.693 2.018
Accrued Expenses 0.771 0.884 0.965 1.129 1.345 1.545 1.746 1.938 2.113
Total Current Liabilities 11.616 13.296 14.462 16.935 20.175 22.979 25.913 28.677 31.430

Long-Term Debt 14.600 15.894 16.862 18.606 22.247 21.979 24.033 25.389 30.253
Total Liabilities 26.216 29.190 31.324 35.541 42.422 44.958 49.946 54.066 61.683 11000
11
Common Stock 6.881 6.881 6.881 6.881 6.881 17.881 17.881 17.881 17.881
Retained Earnings 3.625 4.541 5.889 7.943 10.317 13.661 17.497 21.813 26.606
Total Shareholder Equity 10.506 11.422 12.770 14.824 17.198 31.543 35.378 39.694 44.488

Total Liabilities & Net Worth 36.722 40.612 44.094 50.365 59.620 76.501 85.324 93.761 106.170

control $0.000 $0.000 $0.000 $0.000 $0.000 $0.000 $0.000 $0.000 $0.000

* Net property & equipment for all years is calculated as net property & equipment from the prior year, plus capital expenditures in the same year, minus
depreciation expense in the same year. Depreciation expense is included in reported operating expenses; it is not broken out separately.

Note: 2012-2015 are projected data $ 38.94 $ 43.14 $ 46.51 $ 53.45

06/30/12 06/30/13 06/30/14 06/30/15
Nivel de Apalancamie 1.2344392132 1.2194780213 1.1718209 1.2014869

Cash flow 06/30/08 06/30/09 06/30/10 06/30/11 06/30/12 06/30/13 06/30/14 06/30/15

Actividades de operación
Utilidad neta $0.916 $1.348 $2.054 $2.374 $3.344 $3.835 $4.316 $4.793
Depreciación

Activos corrientes:
Cuentas por cobrar - neto -$1.423 -$0.983 -$2.081 -$2.656 -$2.494 -$2.486 -$2.377 -$2.159
Inventarios -$1.004 -$0.693 -$1.553 -$1.931 -$1.735 -$1.770 -$1.692 -$1.537
Otros activos corrientes -$0.070 -$0.070 $0.082 -$0.141 -$0.148 -$0.145 -$0.139 -$0.126

Pasivos corrientes:
Proveedores $0.329 $0.228 $0.511 $0.634 $0.571 $0.582 $0.556 $0.505
Otros pasivos corrientes $0.113 $0.081 $0.164 $0.216 $0.200 $0.201 $0.192 $0.174

Efectivo de actividades de operación -$1.139 -$0.089 -$0.823 -$1.504 -$0.262 $0.217 $0.857 $1.651

Actividades de inversión
Inversiones de corto plazo
Activos fijos -$0.800 -$1.300 -$1.800 -$3.300 -$2.757 -$3.270 -$3.127 -$2.841
Otros activos fijos -$0.238 -$0.192 -$0.403 -$0.565 -$0.550 -$0.545 -$0.521 -$0.473

Efectivo de actividades de inversión -$1.038 -$1.492 -$2.203 -$3.865 -$3.307 -$3.815 -$3.648 -$3.314

Actividades de financiación
Deuda de corto plazo
Bank Notes Payable $1.151 $0.793 $1.682 $2.147 $2.050 $2.014 $1.926 $1.749
Porción corto DLP $0.087 $0.064 $0.116 $0.243 -$0.017 $0.137 $0.090 $0.324
Pasivo largo plazo $1.294 $0.968 $1.744 $3.641 -$0.268 $2.054 $1.356 $4.863
Common Stock 0.000 0.000 0.000 0.000 11.000 0.000 0.000 0.000

Efectivo de actividades de financiación $2.532 $1.825 $3.542 $6.031 $12.766 $4.205 $3.372 $6.937

Change in cash and equivalents $0.355 $0.244 $0.516 $0.662 $9.197 $0.607 $0.581 $5.274

Initial balance $2.325 $2.680 $2.924 $3.440 $4.102 $13.299 $13.906 $14.487

Final balance in cash and equivalents $2.680 $2.924 $3.440 $4.102 $13.299 $13.906 $14.487 $19.761

Difference $0.000 $0.000 $0.000 $0.000 $0.000 $0.000 $0.000 $0.000

Assumptions for WACC estimation

06/30/12 06/30/13 06/30/14 06/30/15
R_Debt 7.25%
Tax 27.00%

Debt / (debt + equity) 58.77%

Risk free interest rate 4.25%

Market risk premium 7.00%
Beta 50.00%
5.63%

Equity / (debt + equity) 41.23%

WACC 5.43%
Supuestos 06/30/08 06/30/09 06/30/10 06/30/11 06/30/12 06/30/13 06/30/14
Net Sales 3.36% 4.68% 5.40% 7.00% 6.00% 5.00%
Cost of Goods Sold 64.20% 64.60% 64.40% 64.50% 61.50% 58.50% 58.50%
R&D Expense 0.00% 0.00% 0.00% 0.00% 1.00% 1.60% 1.60%
SG&A Expense 44.09% 44.27% 44.88% 44.50% 30.10% 31.50% 31.50%
Interest rate 7.25% 7.25% 7.25%
Prime 3.25% 3.25% 3.25%
4% 4.00% 4.00% 4.00%
Income taxes 27.05% 27.03% 26.99% 27.06% 27.00% 27.00% 27.00%
Cash 20 20 20
Accounts Receivable days 75 75 75
Inventories turnover 4 4 4
Inventories days 90 90 90
Prepaid Expenses 1.20% 1.20% 1.20%
Net Property & Equipment turnover 4 4 4
Net Property & Equipment days 90 90 90
Other Long-Term Assets 4.50% 4.50% 4.50%
Bank Notes Payable 3.41% 4.65% 5.37% 4.48% 4.48% 4.48%
Accounts Payable days 30 30 30
Accrued Expenses 1.66% 1.66% 1.66%

Income Statement 06/30/08 06/30/09 06/30/10 06/30/11 06/30/12 06/30/13 06/30/14

Net Sales $18.793 $19.921 $20.917

Cost of Goods Sold $11.558 $11.654 $12.237
Gross Profit Margin $7.235 $8.267 $8.681

R&D Expense $0.188 $0.319 $0.335

SG&A Expense $5.657 $6.275 $6.589
Earnings Before Interest & Taxes $1.391 $1.673 $1.757

Interest Expense $0.068 $0.071 $0.075

Earnings Before Income Taxes $1.322 $1.602 $1.682

Income Taxes $0.357 $0.433 $0.454

Net Income $0.965 $1.169 $1.228

Dividends Paid

Balance Sheet 06/30/08 06/30/09 06/30/10 06/30/11 06/30/12 06/30/13 06/30/14

Assets
Cash $0.314 $0.349 $0.366
Accounts Receivable $3.915 $4.150 $4.358
Inventories $2.889 $2.913 $3.059
Prepaid Expenses $0.226 $0.239 $0.251
Inversiones de corto plazo $0.018 $0.617 $1.278
Total Current Assets $7.363 $8.269 $9.312

Net Property & Equipment * $4.698 $4.980 $5.229

Other Long-Term Assets $0.846 $0.896 $0.941
Total Assets $12.907 $14.145 $15.483

Liabilities + Owners' Equity

Bank Notes Payable $0.942 $0.985 $1.029

Accounts Payable $0.963 $0.971 $1.020
Current Portion of Long-Term Debt $0.000 $0.000 $0.000
Accrued Expenses $0.312 $0.331 $0.347
Total Current Liabilities $2.218 $2.286 $2.396

Long-Term Debt $0.000 $0.000 $0.000

Total Liabilities $2.218 $2.286 $2.396

Common Stock $4.584 $4.584 $4.584

Retained Earnings $6.105 $7.275 $8.503
Total Shareholder Equity $10.689 $11.859 $13.087

Total Liabilities & Net Worth $12.907 $14.145 $15.483

Cash flow 06/30/08 06/30/09 06/30/10 06/30/11 06/30/12 06/30/13 06/30/14

Actividades de operación
Utilidad neta $0.965 $1.169 $1.228
Depreciación

Activos corrientes:
Cuentas por cobrar - neto -$0.306 -$0.235 -$0.208
Inventarios -$0.529 -$0.024 -$0.146
Otros activos corrientes $0.037 -$0.014 -$0.012

Pasivos corrientes:
Proveedores $0.032 $0.008 $0.049
Otros pasivos corrientes $0.013 $0.019 $0.017

Efectivo de actividades de operación $0.212 $0.924 $0.928

Actividades de inversión
Inversiones de corto plazo -$0.018 -$0.599 -$0.661
Activos fijos -$0.274 -$0.282 -$0.249
Otros activos fijos -$0.319 -$0.051 -$0.045

Efectivo de actividades de inversión -$0.611 -$0.932 -$0.955

Actividades de financiación
Deuda de corto plazo
Bank Notes Payable $0.040 $0.042 $0.044
Porción corto DLP $0.000 $0.000 $0.000
Pasivo largo plazo $0.000 $0.000 $0.000

Efectivo de actividades de financiación $0.040 $0.042 $0.044

Change in cash and equivalents -$0.359 $0.034 $0.017

Initial balance $0.673 $0.314 $0.349

Final balance in cash and equivalents $0.314 $0.349 $0.366

Caja y banco según rotación $0.314 $0.349 $0.366

Difference $0.000 $0.000 $0.000

FCF, NPV y IRR 06/30/08 06/30/09 06/30/10 06/30/11 06/30/12 06/30/13 06/30/14

NOPAT [=EBIT*(1-t)] $1.015 $1.222 $1.283

Depreciation
Variation in net working capital -$0.395 -$0.280 -$0.317
Current assets (excluding short term investments) $6.905 $7.345 $7.652 $8.034
Current liabilities (excluding short term debt) $1.230 $1.275 $1.302 $1.367
Net working capital $5.675 $6.070 $6.350 $6.667
Capex -$0.611 -$0.932 -$0.955
FCF $0.009 $0.010 $0.010

Assumptions for WACC estimation

R_Debt 7.25%
Tax 27.00%

Debt / (debt + equity) 17.18%

Risk free interest rate 4.25%

Market risk premium 7.00%
Beta 0.50
5.63%

Equity / (debt + equity) 82.82%

WACC 5.57%

Presente value $0.035

06/30/15
4.80%
58.50%
1.60%
31.50%
7.25%
3.25%
4.00%
27.00%
20
75
4
90
1.20%
4
90
4.50%
4.48%
30
1.66%

06/30/15

$21.921
$12.824
$9.097

$0.351
$6.905
$1.841

$0.078
$1.763

$0.476
$1.287

06/30/15

$0.384
$4.567
$3.206
$0.263
$1.995
$10.415

$5.480
$0.986
$16.882

$1.075
$1.069
$0.000
$0.364
 $2.507

$0.000
$2.507

$4.584
$9.790
$14.374

$16.882

06/30/15

$1.287

-$0.209
-$0.147
-$0.012

$0.049
$0.017

$0.985

-$0.717
-$0.251
-$0.045

-$1.013

$0.046
$0.000
$0.000

$0.046

$0.018

$0.366

$0.384

$0.384

$0.000

06/30/15

$1.344

-$0.320
$8.420
 $1.433
$6.987
-$1.013
$0.011