Year End May 31

(In millions except per share data)

revenues
costs of goods sold
gross profit
SG&A
operating income
interest expense
other expense, net
restructuring charge, net
Income before income taxes
Income taxes
net income
diluted earnings per common share
average shares outstanding diluted

1996
6470.6
3906.7
$2,563.90
1588.6
$
975.3
39.5
36.7
0
$ 899.10
345.9
$
553.2
$
1.88
293.6

1997
9186.5
5503
$3,683.50
2303.7
$ 1,379.8
52.3
32.3
0
$1,295.20
499.5
$
795.7
$
2.68
297

growth (%)
revenue
operating income
net income

35.9
42.2
38.4

42
41.5
43.9

margins (%)
gross margin
operating margin
net margin
effective tax rate(%)

39.6
15.1
8.5
38.5

40.1
15
8.7
38.6

$
$
$
$
$
$
$
$
$
$
$
$
$

1995
4,760.8
2,865.3
1,895.5
1,209.8
685.7
24.2
11.7
649.8
250.2
399.6
1.36
294.0

1998
9553.1
6065.5
$3,487.60
2623.8
$
863.8
60
20.9
129.9
$ 653.00
253.4
$
399.6
$
1.35
296

1999
8776.9
5493.5
$3,283.40
2426.6
$
856.8
44.1
21.5
45.1
$ 746.10
294.7
$
451.4
$
1.57
287.5

2000
8995.1
5403.8
$3,591.30
2606.4
$
984.9
45
23.2
-2.5
$ 919.20
340.1
$
579.1
$
2.07
279.8

2001
9488.8
5784.9
$3,703.90
2689.7
$ 1,014.2
58.7
34.1
0
$ 921.40
331.7
$
589.7
$
2.16
273.3

4
-37.4
-49.8

-8.1
-0.8
13

2.5
15
28.3

5.5
3
1.8

36.5
9
4.2
38.8

37.4
9.8
5.1
39.5

39.9
10.9
6.4
37

39
10.7
6.2
36

Assumptions
Revenue Growth (%)
COGS/sales (%)
SG&A/sales (%)
Tax Rate (%)
Current assets/sales (%)
Current liabilities/sales (%)
Yearly depreciation and
CAPEX equal each other.
Cost of capital(%)
Terminal value growth rate (%)

2002

2003

2004

7.00%
60.00%
28.00%
38.00%
38.00%
11.50%

6.50%
60.00%
27.50%
38.00%
38.00%
11.50%

6.50%
59.50%
27.00%
38.00%
38.00%
11.50%

12%
3%

Discounted Cash Flow (in millions of dollars except per share data)
Operating Income
$
1,218.4 $
1,351.6 $
Taxes
463.0
513.6
NOPAT
755.4
838.0
Capex, net of depreciation
0.0
0.0
Change in NWC
8.8
174.9
Free cash flow
764.2
663.1
Terminal value
Total flows
764.20
663.11
Present value of flows
$
682.32 $
528.63 $
Enterprise value
less: current outstanding debt
Equity value
Current shares outstanding

$
$
$

Equity value per share

11,415.4
1,296.6
10,118.8
271.5

1,554.6
590.8
963.8
0.0
186.3
777.5
777.55
553.44

271.5

37.27 Current Share Price

42.05

2005

2006

2007

2008

2009

2010

6.50%
59.50%
26.50%
38.00%
38.00%
11.50%

6.00%
59.00%
26.00%
38.00%
38.00%
11.50%

6.00%
59.00%
25.50%
38.00%
38.00%
11.50%

6.00%
58.50%
25.00%
38.00%
38.00%
11.50%

6.00%
58.50%
25.00%
38.00%
38.00%
11.50%

6.00%
58.00%
25.00%
38.00%
38.00%
11.50%

1,717.0 $
652.5
1064.5
0.0
198.4
866.1
866.14
550.45

1,950.0 $
741
1209.0
0.0
195.0
1,014.0

1,014.00
$
575.37 $

2,135.9 $
811.7
1324.2
0.0
206.7
1,117.5
1,117.50
566.16

8.00%
8.50%
9.00%
9.50%
10.00%
10.50%
11.00%
11.17%
11.50%
12.00%

2,410.2 $
915.9
1494.3
0.0
219.1
1,275.2

1,275.19
576.83

37.27

2,554.8 $
970.8
1584.0
0.0
232.3
1,351.7

1,351.75
$
545.95

2,790.1
1060.2
1729.9
0.0
246.2
1,483.7

1,483.71
$
535.04

2011
6.00%
58.00%
25.00%
38.00%
38.00%
11.50%

2,957.5
1123.9
1833.6
0.0
261.0
1,572.6
17,998.0
19,570.66
$
6,301.23

CA
CL

FCF2012
1,619.8

SALES 2001
$
9,488.8 $
$ 3,625.30 $
$ 1,786.70 $

2002
10,153.0 $
3,858.15 $
1,167.60 $

2003
10,813.0
4,108.93
1,243.49

$
$
$

2004
11,515.8 $
4,376.01 $
1,324.32 $

2005
12,264.3 $
4,660.45 $
1,410.40 $

2006
13,000.2 $
4,940.07 $
1,495.02 $

2007
13,780.2 $
5,236.48 $
1,584.72 $

2008
14,607.0 $
5,550.67 $
1,679.81 $

2009
15,483.4
5,883.71
1,780.60

$
$
$

2010
16,412.4 $
6,236.73 $
1,887.43 $

2011
17,397.2
6,610.93
2,000.68

Balance Sheet
(In millions of dollars)
Assets
Current assets:
Cash and equivalents
accounts receivable
inventories
deferred income taxes
prepaid expenses

As of May 31,
2000
2001

254.3
1,569.4
1,446.0
111.5
215.2

304.0
1,621.4
1,424.1
113.3
162.5

Total current assets

3,596.4

3,625.3

Property, plant and equipment, net

Identifiable intangible assets and goodwill, net
deferred income taxes and other assets

1,583.4
410.9
266.2

1,618.8
397.3
178.2

5,856.9

$ 5,819.6

50.1
924.2
543.8
621.9
-

5.4
855.3
432.0
472.1
21.9

2,140.0

1,786.7

Total assets

Liabilities and shareholders' equity

Current liabilities
Current portion of long-term debt
Notes payable
Accounts payable
Accrued liabilities
Income taxes payable
Total current Liabilities
Long term debt
Deferred income taxes and other liabilities
Redeemable preferred stock

470.3
110.3
0.3

435.9
102.2
###

Shareholders' equity
Common Stock, par
Capital in excess of stated value
Unseamed stock compensation
Accumulated other comprehensive income
Retained Earnings

2.8
369.0
(11.7)
(111.1)
2,887.0

###
459.4
(9.9)
(152.1)
3,194.3

Total shareholder's equity

3,136.0

3,494.5

5,856.9

$ 5,819.6

Total Liabilities and shareholders' equity