P&G Case Financial Projection

Model Assumptions
Country Japan Taiwan/Hong Ko China
COGS % 22% 26% 45%
SG&A % 67% 58% 44%
Operating Income % 11% 16% 11%

Japan
Current Sales 150.00
Annual Growth Rate 10%

China
Potential Growth 35%
Sales Over 3 Years 12,500,000.00 4.1666666667
Expected Losses Over 3 Years 10% -3%

United Kingdom
Expected Sales by Year 4 10,000,000.00 2.5
Expected Annual Losses 1,500,000.00 -1.5

Japan Projection
Year 0 1 2
Sales 150.00 157.50 168.53
Growth 5% 7%
COGS 33.00 34.65 37.08
SG&A 100.50 105.53 112.91
Operating Margin 16.50 17.33 18.54

China
Year 0 1 2
Sales 0.00 4.17 4.17
Growth 0% 0%
COGS 0.00 1.48 1.48
SG&A 0.00 2.13 2.13
Operating Margin 0.00 -0.14 -0.14

United Kingdom
Year 0 1 2
Sales 0.00 2.50 2.50
Growth 0% 0%
COGS 0.00 0.73 0.73
SG&A 0.00 1.58 1.58
Operating Margin 0.00 -1.50 -1.50
Average United Kingdom
36% 29%
51% 63%
14% 8%

3 4 5 6 7 8 9 10
183.69 202.06 222.27 240.05 259.25 277.40 296.82 317.60
9% 10% 10% 8% 8% 7% 7% 7%
40.41 44.45 48.90 52.81 57.04 61.03 65.30 69.87
123.07 135.38 148.92 160.83 173.70 185.86 198.87 212.79
20.21 22.23 24.45 26.41 28.52 30.51 32.65 34.94

3 4 5 6 7 8 9 10
4.17 5.00 6.25 8.13 10.16 12.19 14.63 17.55
0% 20% 25% 30% 25% 20% 20% 20%
1.48 1.78 2.22 2.88 3.61 4.33 5.19 6.23
2.13 2.55 3.19 4.14 5.18 6.22 7.46 8.95
-0.14 0.68 0.84 1.10 1.37 1.65 1.97 2.37

3 4 5 6 7 8 9 10
2.50 3.00 3.60 4.14 4.76 5.24 5.76 6.34
0% 20% 20% 15% 15% 10% 10% 10%
0.73 0.87 1.04 1.20 1.38 1.52 1.67 1.84
 1.58 1.89 2.27 2.61 3.00 3.30 3.63 3.99
-1.50 0.41 0.49 0.56 0.64 0.71 0.78 0.86