Solved by verified expert :Nestlé
(NSRGY)
Summary of Valuation Results
Mar-14
Method 1: Dividend Discount
Model
$76.83
Method 2: Operating Free Cash
Flow
$74.03
Method 3: Free Cash Flow to
Equity
$77.04
Average
$75.97
Market Price at Mar 25, 2014:
$74.60
Nestlé (NSRGY)
Consolidated Statements of
Income
Year ended December 31
31/12/2008
31/12/2009
31/12/2010
31/12/2011
(In millions except per share
data)
12 Months
12 Months
12 Months
12 Months
Net operating revenues
$31,944
$30,990
$35,119
$46,542
Cost of goods sold
11,374
11,088
12,693
18,216
Gross profit
20,570
19,902
22,426
28,326
SG&A expenses
11,774
11,358
13,158
17,440
Other operating charges
350
313
819
732
Operating income
8,446
8,231
8,449
10,154
Interest income (net)
333
249
317
483
Interest expense
438
355
733
417
Equity income-net
(874)
781
1,025
690
Other income (loss)-net
39
40
5,185
529
Gains
on issuances of stock by equity investees
–
–
–
–
EBT
before cumulative effect of accounting change
7,506
8,946
14,243
11,439
Income taxes
1,632
2,040
2,384
2,805
Net income before cumulative effect of accounting change
5,874
6,906
11,859
8,634
Net income after cumulative effect of accounting change and
other adjustments
5,807
6,824
11,809
8,572
Average shares outstanding
2,315
2,315
2,333
2,323
Net income per share
$2.51
$2.95
$5.06
$3.69
Dividends paid per share
$1.52
$1.64
$1.76
$1.88
Nestlé (NSRGY)
Consolidated Balance
Sheets
Year ended December 31
31/12/2007
31/12/2008
31/12/2009
31/12/2010
31/12/2011
(In millions except per share
data)
12 Months
12 Months
12 Months
12 Months
12 Months
ASSETS
Cash & cash equivalents
$4,093
$4,701
$7,021
$8,517
$12,803
ST investments and Marketable
securities
215
278
2,192
2,820
1,232
Total cash & mktable sec
4,308
4,979
9,213
11,337
14,035
Accounts receivable
3,317
3,090
3,758
4,430
4,920
Inventories
2,220
2,187
2,354
2,650
3,092
Prepaid expenses and other
assets
2,260
1,920
2,226
3,162
3,450
Total current assets
$12,105
$12,176
$17,551
$21,579
$25,497
Total Long Term Investments
$7,777
$5,779
$6,755
$7,585
$8,374
Other assets
$2,675
$1,733
$1,976
$2,121
$3,495
Total invest. & other
assets
$10,452
$7,512
$8,731
$9,706
$11,869
Property, plant &
equipment
Land
–
–
–
–
–
Buldings and improvements
8,493
8,326
9,561
14,727
14,939
Machinery and equipment
–
–
–
–
–
Containers
–
–
–
–
–
Total Gross PP&E
$8,493
$8,326
$9,561
$14,727
$14,939
Less allowances for
depreciation
–
–
–
–
–
Net PP&E
$8,493
$8,326
$9,561
$14,727
$14,939
Goodwill & Trademarks
4,256
10,088
10,407
18,021
18,649
Other Intangible Assets
7,963
2,417
2,421
8,888
9,020
Total assets
$43,269
$40,519
$48,671
$72,921
$79,974
Liabilities
A/P and accrued expenses
$6,915
$6,205
$6,657
$8,859
$9,009
Loans & notes payable
5,919
6,066
6,749
8,100
12,871
Current portion of long-term
debt
133
465
51
1,276
2,041
Accrued income taxes
258
252
264
273
362
Total current liabilities
$13,225
$12,988
$13,721
$18,508
$24,283
Long-term debt
3,277
2,781
5,059
14,041
13,656
Other liabilities
3,133
3,401
3,512
5,108
5,706
Deferred Income Taxes
1,890
877
1,580
4,261
4,694
Total long-term liabilities
$8,300
$7,059
$10,151
$23,410
$24,056
Total liabilities
$21,525
$20,047
$23,872
$41,918
$48,339
Shareholders’ equity
Common stock, $0.25 par
value
880
880
880
880
880
Capital surplus
7,378
7,966
8,537
10,057
11,212
Reinvested earnings
36,235
38,513
41,537
49,278
53,550
Accumulated comprehensive
income (loss)
626
– 2,674
– 757
– 1,450
– 2,703
Less treasury stock
– 23,375
– 24,213
– 25,398
– 27,762
– 31,304
Shareholders’ equity
$21,744
$20,472
$24,799
$31,003
$31,635
Total liab. &
shareholders’ equity
$43,269
$40,519
$48,671
$72,921
$79,974
Nestlé (NSRGY)
Consolidated
Statements of Cash Flows
Year ended December 31
31/12/2008
31/12/2009
31/12/2010
31/12/2011
(In millions except per share
data)
12 Months
12 Months
12 Months
12 Months
Operating Activities
Net Income
$5,874
$6,906
$11,859
$8,634
Depreciation and amortization
1,228
1,236
1,443
1,954
Stock based compensation
expense
266
241
380
354
Deferred income taxes
– 360
353
617
1,028
Equity income or loss, net of
dividends
1,128
– 359
– 671
– 269
Foreign currency adjustments
– 42
61
151
7
Gains
on issuance of stock by equity investees
–
–
–
–
(Gains) losses on sales of
assets
– 130
– 43
– 645
– 220
Cumulative effect of
accounting changes
–
–
–
–
Other operating charges
209
134
264
214
Other items
153
221
– 4,236
– 335
Net
change in operating assets and liabilities
– 755
– 564
370
– 1,893
Net cash provided by
operating activities
7,571
8,186
9,532
9,474
Investing Activities
Acquisitions
&invest. (trademarks and bottling cos.)
– 759
– 300
– 2,511
– 977
Purchases of investments and
other assets
– 240
– 2,152
– 4,711
– 4,844
Proceeds
from disposals of investments and other assets
479
240
5,004
6,209
Purchases
of property, plant and equipment
– 1,968
– 1,993
– 2,215
– 2,920
Proceeds from disposals of
PP&E
129
104
134
101
Other investing activities
–
4
– 48
– 106
– 93
Net cash used in investing
activities
– 2,363
– 4,149
– 4,405
– 2,524
