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Company Jean Louis

Income Sheet ($ m)
Net Sales
Direct Costs
Gross Profit

2012A

2013A

2014A

2905
1698
1207

Historical
3408
1925
1483

3959
2228
1730

Selling, General & Admin Costs

Other Expense/ (Income)
EBITDA

350
(2)
859

442
(1)
1042

509
(11)
1233

Depreciation
Amortization
EBIT

102
9
747

127
11
904

136
13
1084

Interest Expense
Interest Income
Pretax Income (PBT)

44
(1)
704

60
(1)
845

64
(1)
1021

Income Taxes
Net Income

175
529

215
630

255
766

Diluted Weighted Average Shares (millions)

Margins
Gross Margin (excluding D&A)
SG&A Expense as % of Net Sales
Other Expense/ (Income) as % of Net Sales
EBITDA Margin
EBIT Margin
Net Income Margin

100

41.5%
12.1%
-0.1%
29.6%
25.7%
18.2%

Growth Rate Analysis

Net Sales Growth Rate
EBITDA Growth Rate
Net Income Growth Rate
Effective Tax Rate

24.8%

43.5%
13.0%
0.0%
30.6%
26.5%
18.5%

43.7%
12.9%
-0.3%
31.1%
27.4%
19.4%

17.3%
21.3%
19.0%

16.2%
18.3%
21.7%

25.5%

25.0%

2015E

2016E

2017E

2018E

2019E

Forecast

25.0%

25.0%

25.0%

25.0%

25.0%

2020E

25.0%

2021E

25.0%

Company Jean Louis

2012A

Balance Sheet ($ m)

Current Assets, Loans and Advances

Cash
Accounts Receivable, net
Inventory
Other Current Assets
Total Current Assets

2013A
Historical

28

30

463
327
87
905

474
350
83
937

852

950

Other Assets
Intangibles, net
Goodwill

47
1672

62
1672

Total Assets

3475

3621

206

221

181
68
455

161
63
446

250
1600
1850

150
1360
1510

153
447

157
454

569

1054

3475

3621

Fixed Assets

PP&E, net

Current Liabilities & Provisions

Accounts Payable
Accrued Liabilities
Other Current Liabilities
Total Current Liabilities
Loan Funds
Revolving Credit Facility
Long Term Debt
Total Liabilities
Other Long Term Liabilities
Post retirement Pension Cost
Shareholder's Funds
Total Liabilities & Equity

Check

2014A

Historical

2015E

2016E

2017E

2018E
Forecast

29
473
384
84
970

1100

80
1672
3821

279
177
82
538

101
875
976
187
461
1660
3821

2019E

2020E

2021E

Company Jean Louis

Cash Flow Statement

2012A

2013A
Historical

Operating Activities

Net Income
Depreciation
Amortization
Change in Working Capital
Change in Assets & Liabilities (if any)
Cash Flow from Operating Activities
Investment Activities

Capital Expenditures
Additions to Intangibles
Cash Flow from Investing Activities
Cash Flow Available for Financing Activities
Financing Activities

Proceeds from/ (repayment of) Revolver

Issuance of Long Term Debt
(Repayment) of Long Term Debt
Issuance/ (Repurchase of) Equity
Dividends
Option Proceeds
Other Long Term Liabilities
Post retirement Pension Cost
Cash Flow from Financing Activities
Net Change in Cash
Beginning Cash Balance
Ending Cash Balance
Check

30

2014A

istorical

2015E

2016E

2017E

2018E
Forecast

29

recast

2019E

2020E

2021E

Revenues ($)
Sales Volume (Units)

2010E

2011E

Segmental Revenues (Rs.)

Soaps
growth rate

2010E
600,000,000

2011E
756,000,000

Hair Colour
growth rate

825,000,000

951,750,000

Detergents
growth rate

660,000,000

761,600,000

2,085,000,000

2,469,350,000

Total Revenue

2012A

2013A

2014A

2015E

2012A
960,000,000

2013A
1,225,500,000

2014A
1,518,750,000

2015E

1,069,937,500

1,207,868,000

1,352,705,000

875,000,000

974,632,000

1,087,500,000

2,904,937,500

3,408,000,000

3,958,955,000

2016E

2017E

2018E

2019E

2016E

2017E

2018E

2019E

2020E

2021E

2020E

2021E

Raw Materials volume requirement (ml)

Acid
Speciality chemicals
Ordinary chemicals

100 gms soap

10.5
1.0
0.5

250 ml hair colour

25.5
1.2
0.8

2010E

2011E

2010E
1,123,595,550

2011E
1,373,756,175

Speciality chemicals
% of sales

32,267,700

42,343,763

Ordinary chemicals
% of sales

8,590,950

13,597,875

33,585,480

41,076,872

1,198,039,680

1,470,774,684

48,450,000

57,095,000

1,246,489,680

1,527,869,684

51,084,000

57,523,200

2,000,000

2,400,000

Raw Materials prices

Total sales

Raw Material Cost ($)

Acid
% of sales

Perfumes
% of sales

Total raw material cost ($)

Total packaging cost ($)

% of sales

Total Direct Costs

Salary & bonus cost ($)

% of sales

Power Cost
% of sales

Advertisement cost ($)

% of sales
Commission ($)
% of sales

Insurance premium ($)

% of sales

Selling, General & Admin Costs

156,000,000

177,701,250

52,275,000

66,733,750

2,000,000

263,359,000

###

306,358,200

500 ml detergent
50.5
2.5
1.5
2012A

2013A

2014A

2012A
1,516,132,099

2013A
1,707,647,148

2014A
1,973,195,100

50,481,051

59,437,578

68,890,932

16,242,259

19,214,520

24,895,206

48,483,780

59,032,659

71,812,080

1,631,339,189

1,845,331,905

2,138,793,318

66,785,085

80,043,841

89,679,100

1,698,124,275

1,925,375,745

2,228,472,418

72,360,960

85,666,560

94,474,800

3,000,000

3,500,000

4,000,000

195,370,313

270,600,000

304,421,625

77,623,438

80,200,000

103,973,875

2,000,000

2,000,000

2,000,000

350,354,710

441,966,560

508,870,300

2015E
-

2015E

2016E
-

2016E

2017E
-

2017E

2018E
-

2018E

2019E
-

2019E

2020E
-

2020E

2021E
-

2021E

Company Jean Louis

Working Capital Schedule

Net Sales
Cost of Sales (excluding D&A)
Working Capital Balances

Accounts Receivable, net

Inventory
Other Current Assets
Total Non Cash Current Assets
Accounts Payable
Accrued Liabilities
Other Current Liabilities
Total Non-Debt Current Liabilities
Net Working Capital/ (Deficit)

(Increase)/ Decrease in Working Capital

Ratios & Assumptions

Accounts Receivable, net (Collection period in days)

Inventory (Days outstanding)
Other Current Assets (% of Net Sales)
Purchases
Accounts Payable (Days Payable)
Accrued Liabilities (% of COGS)
Other Current Liabilities (% of COGS)

2012A

2013A
Historical

storical

2014A

2015E

2016E

2017E

2018E
Forecast

2019E

2020E

2021E

Number of days assumption

365

2012A

Company Jean Louis

Depreciation Schedule

2013A
Historical

Net Sales
Capital Expenditures
Capital Expenditures as % of Net Sales

Beginning Net PP&E

Capital Expenditures
(Depreciation Expense)
(Asset Sales )
Ending Net PP&E

PPE (Break-up for 2014)

Land
Building Improvements
Machinery and equipment
Automobiles and trucks
Total

Amount
Remaining useful life
30.0
NA
100.0
7
700.0
9
270.0
9
1,100.0

Total Capex
Breakup
Land
Building Improvements
Machinery and equipment
Automobiles and trucks

Building Improvements - Straight Line Method

Useful Life
Building Improvement
Depreciation Expense (existing)
incremental capex uniformly added over year
2015
2016
2017
2018
2019
2020
2021

50%

2014A

Depreciation (Building Improvements)

Machinery & Equipments
Useful Life
Machinery & Equipments
Depreciation Expense (existing)
incremental capex uniformly added over year
Capex

50%
Useful Life

2015
2016
2017
2018
2019
2020
2021
Total Depreciation (Machinery & Equipments)
Automobiles & Trucks
Useful Life
Automobiles & Trucks
Depreciation Expense (existing)
Capex

2015
2016
2017
2018
2019
2020
2021
Total Depreciation (Automobiles & Trucks)

Total Depreciation Expense

50%
Useful Life

2015E

2016E

2017E

2018E

2019E

2020E

2021E

2020E

2021E

Forecast

Proportion of Assets
Straight Line Method of Depreciation
Straight Line Method of Depreciation
Straight Line Method of Depreciation

2015E

2016E

2017E

2018E

2019E

#DIV/0!

2012A

Company Jean Louis

Depreciation Schedule

2013A

2014A

Historical

Net Sales
Additions to Intangibles
Additions to Intangibles as % of Net Sales

Beginning Net Intangibles

Additions to Intangibles
(Amortization Expense)
(Intangible Sales and write offs)
Ending Net Intangibles

Existing Net Intangibles, net

Useful Life
Straight Line
incremental capex uniformly added over year

8.0
50%
Intangibles

2015
2016
2017
2018
2019
2020
2021
Total Amortization Expense

Useful Life

2015E

2016E

2017E

2018E
Forecast

2019E

2020E

2021E

Company Jean Louis

Shareholder's Equity Schedule

Beginning Equity Balance

Net Income
Dividends Paid
Ending Equity Balance

Dividend Assumptions

Total Dividends Paid

Net Income
Dividend Payout Ratio

2012A

2013A
Historical

torical

2014A

2015E

2016E

2017E

2018E
Forecast

ecast

2019E

2020E

2021E

Company Jean Louis

Debt Schedule

2012A

2013A

2014A

Historical

Cash Flow Available for Financing Activities

Proceeds from/ (Repurchase of) Equity
Dividends
Option Proceeds
+ Beginning Cash Balance
- Minimum Cash Balance
Cash Available for Debt Repayment
Long Term Debt Issuance
Long Term Debt (Repayments)
Cash Available for Revolving Credit Facility
Revolving Credit Facility
Beginning Balance
Discretionary (Paydown)/ Borrowings
Ending Balance
Long Term Debt
Beginning Balance
Issuance
(Repayment/ Amortization)
Ending Balance
Revolving Credit Facility

Average Balance
Interest Rate
Interest Expense

Long Term Debt

Average Balance
Interest Rate
Interest Expense

Total Interest Expense

Cash Balances

Average Balance
Interest Rate
Interest Income

2015E

2016E

2017E

2018E
Forecast

2019E

2020E

2021E

Corporate Bridge Academy

DCF Valuation
(All data is Millions ($) except per share information, A - Actual, E - Estimated)
(Blue for actual data, Black for calculations, Green for Linkage)
Particular

Discounted Cash Flows

All numbers are in Rs. Million except per share data
Free Cash Flow Calculations
Net Income
Add:Depreciation
Add: Interest x (1-tax rate)
Changes in working Capital
Less:Capex
Free Cash Flow to the Firm(FCFF)
Terminal Value
WACC Inputs
Cost of Equity & Cost of Debt
Risk Free Rate
Beta
Equity Risk Premium
Cost of equity
Terminal Growth Rate

Market Value of Equity

Current Stock Price
Current shares outstanding
Options/Warrants Converts
Fully converted shares
Fully converted equity value
Calculating Book value of Debt
Debt
Short-Term Debt

Straight Long-Term Debt

Convertible Debt (out of money)
Value of Debt
Calculating Debt to Equity ratios
Proporiton of Equity in the Capital Strucuture
Proporiton of Debt in the Capital Strucuture
Debt to equity ratio
WACC Calculations

Risk Free rate

Market risk premium
Levered beta of company
Cost of equity
Pre-tax cost of debt
Tax rate
After tax cost of debt
WACC
Adjust for illiquidity/small company
Adjusted WACC

Free cash flow to firm of explicit period 2015E & to 2021E

Cash Flows
NPV of explicit period

Terminal Value Exit EBITDA Multiple

5x
NPV of EBITDA terminal value

DCF Valuation Summary

Enterprise value
DCF calculation as of
NPV of explicit period
NPV of EBITDA terminal value
Enterprise Value
Net Debt

Equity value
Share Price

2015E

2016E

2017E

Back to Index

2018E

2019E

2020E

2021E

Beta Calculation
Leveraged
Beta
Peer A
Peer B
Peer C

Avg Beta
Beta unleveraged
Beta ( jean louis)

1
0.92
1.4

Unleveraged
Beta

Tax rate
20%
31%
30%

D/E
0.34
0.37
0.63

Company Jean Louis

Shareholding Pattern
Existing Shareholders

shares

Promoters
New shareholders
Venture Firm I

Acquisition Terms
Shares to be Acquired
Number of Shares
Price per Share
Cost of Shares
Common Shares Outstanding (post)
Acquisition Stake
Acquisition Price
Transaction Fees
Assumed Liabilities (Existing Debt)
Total Acquisition Cost

Primary

Secondary

% Shareholding
(Pre)

% Shareholding
(Post)

Amount Raised

Equity Valuation
(Post)

CB Research & Analytics

IRR Analysis

As of 3/31/2014

Summary Assumptions
Entry Amount
Current Market Price
Premium to Market
Investment Price per Share
Shares Purchased ('000)
Total Shares Outstanding (Post)
% of New Shares Issued

Investment Return Calculation

2015E EBITDA
Initial Investment
5.0x
6.0x
7.0x
2015E Sales
1.0x
1.1x
1.2x
Note: Assumes no tax leakage

Incremental financing

Return after 7 Year

IRR

Valuation Using Comparables

(Amounts in US$)

Jean Louis

Peer A

Peer B

Peer C

2,561

2014

2014
Balance Sheet
Total Assets

3,112

4,200

500

550

1,000

1,450

1,500

1,600

Revenues

3,500

3,800

5,000

EBITDA

1,000

1,100

1,500

400

300

350

Shares Outstandings ('000)

50

75

100

Share Price

15

22

25

60,000

50,000

60,000

550

550

525

Net Debt

1,000

1,500

2,000

Enterprise Value

1,550

2,050

2,525

Long-term Debt
Net Worth
Income Statement

Net Income
Market Data

Number of Customers

65,000

Equity Valuation/Market Cap.

Earnings Growth (CAGR past 3 years)

2014

6%

3%

3.5%

4%

Jean Louis

Peer A

Peer B

Peer C

Earnings Growth (CAGR past 3 years)

Price-Earning Ratio
EV / EBITDA
EV / Sales
Price to Book (Equity)
EV / Customer
Note: Peer companies are those public companies with similar nature of business of target firm .

Industry
Average

2015