INVESTMENT + COST REDUCTION FINANCIAL SCENARIOS

Company Products & Services

INVESTMENT + COST REDUCTION FINANCIAL SCENARIOS

CONTENTS

Page:

      INVESTMENT + COST REDUCTION FINANCIAL SCENARIOS FOR THE INDUSTRY

1

~ .... HISTORIC FINANCIAL DATA

2

~ .... Historic Balance Sheet

3

~ ~ ...... Historic Costs & Margins

4

~ ~ ........ Historic Financial Ratios & Margins

5

~ ~ .......... Historic Operational Ratios & Margins

6

~ .... Financial forecast notes

7

~ .... INVESTMENT + COST REDUCTION FINANCIAL FORECASTS

8

~ .... Base Forecast : Median Market Scenario Balance Sheet Forecast

9

~ ...... Base Forecast : Median Market Scenario Operational Costs Forecast

10

~ ........ Base Forecast : Median Market Scenario Financial Ratios

11

~ .......... Base Forecast : Median Market Scenario Operational Margins

12

~ .... Profit Impact: Materials Cost Reduction Balance Sheet Forecast

13

~ ...... Profit Impact: Materials Cost Reduction Operational Costs Forecast

14

~ ........ Profit Impact: Materials Cost Reduction Financial Ratios

15

~ .......... Profit Impact: Materials Cost Reduction Operational Margins

16

~ .... Profit Impact: Payroll Cost Reduction Balance Sheet Forecast

17

~ ...... Profit Impact: Payroll Cost Reduction Operational Costs Forecast

18

~ ........ Profit Impact: Payroll Cost Reduction Financial Ratios

19

~ .......... Profit Impact: Payroll Cost Reduction Operational Margins

20

~ .... Profit Impact: Process Cost Reduction Balance Sheet Forecast

21

~ ...... Profit Impact: Process Cost Reduction Operational Costs Forecast

22

~ ........ Profit Impact: Process Cost Reduction Financial Ratios

23

~ .......... Profit Impact: Process Cost Reduction Operational Margins

24

~ .... Profit Impact: Distribution Cost Reduction Balance Sheet Forecast

25

~ ...... Profit Impact: Distribution Cost Reduction Operational Costs Forecast

26

~ ........ Profit Impact: Distribution Cost Reduction Financial Ratios

27

~ .......... Profit Impact: Distribution Cost Reduction Operational Margins

28

~ .... Profit Impact: Customer Handling Cost Reduction Balance Sheet Forecast

29

~ ...... Profit Impact: Customer Handling Cost Reduction Operational Costs Forecast

30

~ ........ Profit Impact: Customer Handling Cost Reduction Financial Ratios

31

~ .......... Profit Impact: Customer Handling Cost Reduction Operational Margins

32

~ .... Investments: Process Plant & Equipment Balance Sheet Forecast

33

~ ...... Investments: Process Plant & Equipment Operational Costs Forecast

34

~ ........ Investments: Process Plant & Equipment Financial Ratios

35

~ .......... Investments: Process Plant & Equipment Operational Margins

36

~ .... Investments: Premises Balance Sheet Forecast

37

~ ...... Investments: Premises Operational Costs Forecast

38

~ ........ Investments: Premises Financial Ratios

39

~ .......... Investments: Premises Operational Margins

40

~ .... Investments: Distribution / Handling Balance Sheet Forecast

41

~ ...... Investments: Distribution / Handling Operational Costs Forecast

42

~ ........ Investments: Distribution / Handling Financial Ratios

43

~ .......... Investments: Distribution / Handling Operational Margins

44

~ .... Investments: Customer Handling Systems Balance Sheet Forecast

45

~ ...... Investments: Customer Handling Systems Operational Costs Forecast

46

~ ........ Investments: Customer Handling Systems Financial Ratios

47

~ .......... Investments: Customer Handling Systems Operational Margins

48

~ .... Product Cost Improvements Balance Sheet Forecast

49

~ ...... Product Cost Improvements Operational Costs Forecast

50

~ ........ Product Cost Improvements Financial Ratios

51

~ .......... Product Cost Improvements Operational Margins

52

~ .... Product Quality Improvement Balance Sheet Forecast

53

~ ...... Product Quality Improvement Operational Costs Forecast

54

~ ........ Product Quality Improvement Financial Ratios

55

~ .......... Product Quality Improvement Operational Margins

56

~ .... Customer Handling Improvements Balance Sheet Forecast

57

~ ...... Customer Handling Improvements Operational Costs Forecast

58

~ ........ Customer Handling Improvements Financial Ratios

59

~ .......... Customer Handling Improvements Operational Margins

61

~ .... Financial data definitions

INDEX

HISTORIC FINANCIAL DATA

INVESTMENT + COST REDUCTION FINANCIAL SCENARIOS ISSUES

F_H - FIN_HIST.HTM   HISTORIC FINANCIAL DATA

 Financial Definitions

INVESTMENT + COST REDUCTION FINANCIAL SCENARIOS

FINANCIAL DATA FORECAST

INVESTMENT + COST REDUCTION FINANCIAL SCENARIOS BASED - BALANCE SHEET FORECASTS


The INVESTMENT + COST REDUCTION FINANCIAL SCENARIOS BALANCE SHEET FORECASTS section gives a series of Balance Sheet Forecasts for the industry using a number of assumptions relating to the investment and cost reduction decisions available to the management of the industry.

The Balance sheet forecast given shows the effects of investment and cost reduction improvements which Management is likely to recommend:


INVESTMENT + COST REDUCTION FINANCIAL SCENARIOS

- Base Forecast : Median Market Scenario


- Profit Impact From Materials Cost Reduction
- Profit Impact From Payroll Cost Reduction
- Profit Impact From Process Cost Reduction
- Profit Impact From Distribution Cost Reduction
- Profit Impact From Customer Handling Cost Reduction
- Capital Investments Options: Process Plant & Equipment
- Capital Investments Options: Premises
- Capital Investments Options: Distribution / Handling
- Capital Investments Options: Customer Handling Systems
- Product Cost Improvements
- Product Quality Improvement
- Customer Handling Improvements

Managers in the industry will, in both the short-term and the long-term, have vital decisions to make regarding the investment and cost reduction improvements, margins and profitability and these decisions will need to be evaluated in light of the customers, markets, competitors, products, industry and internal factors. The scenarios given isolate a number of the most important factors and provide balance sheet forecasts for each of the scenarios.

The data provides a short and medium term forecast covering the next 6 years for each of the Forecast Financial and Operational items. The Financial and Operational Data sections show each of the items listed below in terms of forecast data and covers a period of the next 6 years.


Base Forecast : Median Market Scenario

F0M|     MEDIAN  FORECAST : Financials

G0M|     MEDIAN  FORECAST : Margins & Ratios

Profit Impact: Materials Cost Reduction

F61|     PROFIT IMPACT FROM MATERIALS COST REDUCTION : Financials

G61|     PROFIT IMPACT FROM MATERIALS COST REDUCTION : Margins & Ratios

Profit Impact: Payroll Cost Reduction

F62|     PROFIT IMPACT FROM PAYROLL COST REDUCTION : Financials

G62|     PROFIT IMPACT FROM PAYROLL COST REDUCTION : Margins & Ratios

Profit Impact: Process Cost Reduction

F63|     PROFIT IMPACT FROM PROCESS COST REDUCTION : Financials

G63|     PROFIT IMPACT FROM PROCESS COST REDUCTION : Margins & Ratios

Profit Impact: Distribution Cost Reduction

F64|     PROFIT IMPACT FROM DISTRIBUTION COST REDUCTION : Financials

G64|     PROFIT IMPACT FROM DISTRIBUTION COST REDUCTION : Margins & Ratios

Profit Impact: Customer Handling Cost Reduction

F65|     PROFIT IMPACT FROM CUSTOMER HANDLING COST REDUCTION : Financials

G65|     PROFIT IMPACT FROM CUSTOMER HANDLING COST REDUCTION : Margins & Ratios

Investments: Process Plant & Equipment

F66|     CAPITAL INVESTMENTS OPTIONS: PROCESS PLANT & EQUIPMENT : Financials

G66|     CAPITAL INVESTMENTS OPTIONS: PROCESS PLANT & EQUIPMENT : Margins & Ratios

Investments: Premises

F67|     CAPITAL INVESTMENTS OPTIONS: PREMISES : Financials

G67|     CAPITAL INVESTMENTS OPTIONS: PREMISES : Margins & Ratios

Investments: Distribution / Handling

F68|     CAPITAL INVESTMENTS OPTIONS: DISTRIBUTION / HANDLING : Financials

G68|     CAPITAL INVESTMENTS OPTIONS: DISTRIBUTION / HANDLING : Margins & Ratios

Investments: Customer Handling Systems

F69|     CAPITAL INVESTMENTS OPTIONS: CUSTOMER HANDLING SYSTEMS : Financials

G69|     CAPITAL INVESTMENTS OPTIONS: CUSTOMER HANDLING SYSTEMS : Margins & Ratios

Product Cost Improvements

F70|     PRODUCT COST IMPROVEMENTS : Financials

G70|     PRODUCT COST IMPROVEMENTS : Margins & Ratios

Product Quality Improvement

F71|     PRODUCT QUALITY IMPROVEMENT : Financials

G71|     PRODUCT QUALITY IMPROVEMENT : Margins & Ratios

Customer Handling Improvements

F72|     CUSTOMER HANDLING IMPROVEMENTS : Financials

G72|     CUSTOMER HANDLING IMPROVEMENTS : Margins & Ratios

FIN_DEFI.HTMFINANCIAL DEFINITIONS

INDEX

 
Balance Sheet Base Forecast : Median Market Scenario, 8
Balance Sheet Customer Handling Improvements, 56
Balance Sheet Historic, 2
Balance Sheet Investments: Customer Handling System, 44
Balance Sheet Investments: Distribution / Handling, 40
Balance Sheet Investments: Premises, 36
Balance Sheet Investments: Process Plant & Equipment, 32
Balance Sheet Product Cost Improvements, 48
Balance Sheet Product Quality Improvement, 52
Balance Sheet Profit Impact: Customer Handling Costs, 28
Balance Sheet Profit Impact: Distribution Cost Reductions, 24
Balance Sheet Profit Impact: Materials Cost Reduction, 12
Balance Sheet Profit Impact: Payroll Cost Reduction, 16
Balance Sheet Profit Impact: Process Cost Reduction, 20

Costs & Margins Historic, 3

Financial data definitions, 61
Financial forecast notes, 6
Financial Ratios Base Forecast : Median Market, 10
Financial Ratios Customer Handling Improvements, 58
Financial Ratios Investments: Customer Handling System, 46
Financial Ratios Investments: Distribution / Handling, 42
Financial Ratios Investments: Premises, 38
Financial Ratios Investments: Process Plant & Equipment, 34
Financial Ratios Product Cost Improvements, 50
Financial Ratios Product Quality Improvement, 54
Financial Ratios Profit Impact: Customer Handling, 30
Financial Ratios Profit Impact: Distribution Cost, 26
Financial Ratios Profit Impact: Materials Cost Reduction, 14
Financial Ratios Profit Impact: Payroll Cost Reduction, 18
Financial Ratios Profit Impact: Process Cost Reduction, 22
Financial Ratios & Margins Historic, 4

HISTORIC FINANCIAL DATA, 1

INVESTMENT + COST REDUCTION FINANCIAL FORECASTS, 7

Operational Costs Base Forecast : Median Market, 9
Operational Costs Customer Handling Improvements, 57
Operational Costs Investments: Customer Handling, 45
Operational Costs Investments: Distribution / Handling, 41
Operational Costs Investments: Premises, 37
Operational Costs Investments: Process Plant & Equip, 33
Operational Costs Product Cost Improvements, 49
Operational Costs Product Quality Improvement, 53
Operational Costs Profit Impact: Customer Handling, 29
Operational Costs Profit Impact: Distribution Cost, 25
Operational Costs Profit Impact: Materials Cost Reduction, 13
Operational Costs Profit Impact: Payroll Cost Reduction, 17
Operational Costs Profit Impact: Process Cost Reduction, 21
Operational Margins Base Forecast : Median Market, 11
Operational Margins Customer Handling Improvements, 59
Operational Margins Investments: Customer Handling, 47
Operational Margins Investments: Distribution, 43
Operational Margins Investments: Premises, 39
Operational Margins Investments: Process Plant, 35
Operational Margins Product Cost Improvements, 51
Operational Margins Product Quality Improvement, 55
Operational Margins Profit Impact: Customer Handling, 31
Operational Margins Profit Impact: Distribution Cost, 27
Operational Margins Profit Impact: Materials Cost, 15
Operational Margins Profit Impact: Payroll Cost, 19
Operational Margins Profit Impact: Process Cost, 23
Operational Ratios & Margins Historic, 5

CONTENTS

Base Forecast : Median Market Scenario
Customer Handling Improvements
HISTORIC FINANCIAL DATA
INVESTMENT + COST REDUCTION FINANCIAL FORECASTS
Investments: Customer Handling Systems
Investments: Distribution / Handling
Investments: Premises
Investments: Process Plant & Equipment
Product Cost Improvements
Product Quality Improvement
Profit Impact: Customer Handling Cost Reduction
Profit Impact: Distribution Cost Reduction
Profit Impact: Materials Cost Reduction
Profit Impact: Payroll Cost Reduction

HISTORIC FINANCIAL DATA
INVESTMENT + COST REDUCTION FINANCIAL FORECASTS
Base Forecast : Median Market Scenario
Profit Impact: Materials Cost Reduction
Profit Impact: Payroll Cost Reduction
Profit Impact: Process Cost Reduction
Profit Impact: Distribution Cost Reduction
Profit Impact: Customer Handling Cost Reduction
Investments: Process Plant & Equipment
Investments: Premises
Investments: Distribution / Handling
Investments: Customer Handling Systems
Product Cost Improvements
Product Quality Improvement
Customer Handling Improvements