Reference no: EM132540017
Question 1:
The table below appears on page 2 of the annual report of the Norne group.
Key financials (unaudited, in millions of S, excluding earnings per share and dividends):
|
|
1996
|
1997
|
1998
|
1999
|
2000
|
|
|
13 289
|
20 273
|
31 260
|
40 112
|
100 789
|
|
Sales
|
|
|
|
|
|
|
Net income:
|
|
|
|
|
|
|
Recurring net income
|
493
|
515
|
698
|
957
|
1266
|
|
Items impacting comparability
|
91
|
-410
|
5
|
-64
|
-287
|
|
Total
|
584
|
105
|
703
|
893
|
979
|
|
Diluted earnings per share:
|
|
|
|
|
|
|
Recurring net income
|
0.91
|
0.87
|
1.00
|
1.18
|
1.47
|
|
Items impacting comparability
|
0.17
|
-0.71
|
0.01
|
-0.08
|
-0.35
|
|
Total
|
1.08
|
0.16
|
1.01
|
1.10
|
1.12
|
|
Dividend per share
|
0.43
|
0.46
|
0.48
|
0.50
|
0.50
|
|
Total assets
|
16 137
|
22 552
|
29 350
|
33 381
|
65 503
|
|
Cash from operating activities (excluding change in working capital)
|
742
|
276
|
1873
|
2228
|
3010
|
|
Capital expenditure
|
1483
|
2092
|
3564
|
3085
|
3314
|
|
Share price at 31 Dec
|
22
|
21
|
29
|
44
|
83
|
Question 2:
Identify the sector to which each of the following types of company belongs: electricity producer, supermarket, temporary employment agency, specialised retailer, construction and public infrastructure.
|
Company
|
1
|
2
|
|
3
|
4
|
5
|
|
Sales
|
100
|
100
|
|
100
|
100
|
100
|
|
Production
|
100
|
100
|
|
104
|
99
|
0
|
|
Trading profit
|
23.0
|
24.8
|
|
0
|
0
|
0
|
|
Raw materials used
|
0
|
0
|
|
} 46.6
|
23.6
|
0
|
|
Other external charges
|
7.8
|
7.0
|
|
|
46.9
|
14.1
|
|
Personnel cost
|
9.3
|
11.7
|
|
21.5
|
24.1
|
88.2
|
|
EBITDA
|
6.8
|
6.7
|
|
28.1
|
3.7
|
4.6
|
|
Depreciation and amortisation
|
2.6
|
0.9
|
|
14.4
|
1.2
|
0.7
|
|
Operating income
|
4.2
|
5.8
|
|
7.1
|
2.9
|
3.1
|
Question 3:
In January of year 0, the Swiss group Schmidheiny published the following projected figures:
|
|
0
|
1
|
2
|
3
|
|
Production
|
70.2
|
106
|
132
|
161
|
|
Raw materials used
|
29.4
|
35.4
|
44.3
|
53.8
|
|
Personnel cost
|
22.2
|
29.4
|
36.7
|
41.1
|
|
Taxes
|
0.5
|
0.7
|
0.7
|
0.8
|
|
Other external services
|
13.7
|
19.8
|
24.6
|
30.5
|
|
Outsourcing
|
2.5
|
8.9
|
11.2
|
11.3
|
|
Depreciation and amortisation
|
1.4
|
2.7
|
3.6
|
5
|
(a) Calculate the breakeven point for each year. The cost structure is as follows:
o variable costs: raw materials used, outsourcing, 50% of other external services; o fixed costs: all other costs.
(b) Schmidheiny is planning a capital expenditure programme which should increase its production capacity threefold. This programme, which is spread over years 0 to 1, includes the construction of four factories and the launch of new products. The income statements for years 1, 2 and 3 factor in these investments. State your views.
(c) The company will need to raise around €30m to finance this capital expenditure programme. Financial expense before this capital expenditure programme amounts