BLAKE INTERNATIONAL FINANCIAL STATEMENTS, 1999-2003 SCO

INCOME STATEMENTS ($ MILLIONS)

1999 2000 2001 2002 2003

Sales $ 3,481 $ 3,479 $ 3,644 $ 3,225 $ 2,900 Sales

Cost of goods sold 2,083 2,109 2,255 1,997 1,746 Cost of goods sold
Gross profit $ 1,398 $ 1,370 $ 1,389 $ 1,228 $ 1,154 Gross profit
Selling, general, and administrative expense 999 1,065 1,070 1,043 972 Selling, general, and administrative e
Depreciation 35 40 43 45 43 Depreciation
Operating profit $ 364 $ 265 $ 276 $ 140 $ 139 Operating profit
Interest expense 26 42 64 61 50 Interest expense
Non-operating income/expense 10 15 5 (8) 1 Non-operating income/expense
Special items (72) ### (59) (34) (62) Special items
Pretax income $ 276 $ 238 $ 158 $ 37 $ 28 Pretax income
Total income taxes 100 84 12 12 10 Total income taxes
Minority interest 11 15 10 1 7 Preferred dividends
Net income $ 165 $ 139 $ 136 $ 24 $ 11 Net income

BALANCE SHEETS ($ MILLIONS)

1999 2000 2001 2002 2003

ASSETS ASSETS

Cash and equivalents $ 80 $ 232 $ 210 $ 180 $ 282 Cash and equivalents
Net receivables 507 591 562 518 417 Net receivables
Inventories 635 545 564 535 415 Inventories
Other current assets 121 95 129 129 129 Prepaid expenses
Total current assets $ 1,343 $ 1,463 $ 1,465 $ 1,362 $ 1,243 Other current assets
Gross, plant, property, and equipment 336 357 354 399 422 Total current assets
Accumulated depreciation 144 172 197 226 244 Gross plant, property, and equipmen
Net plant, property, and equipment $ 192 $ 185 $ 157 $ 173 $ 178 Accumulated depreciation
Other assets 121 138 134 205 143 Net plant, property, and equipment
Total assets $ 1,656 $ 1,786 $ 1,756 $ 1,740 $ 1,564 Intagibles
Other assets
Total assets

LIABILITIES LIABILITIES

Long-term debt due in one year $ 1 $ 53 $ 121 $ 87 $ 185 Long-term debt due in one year
Notes payable 67 33 41 48 28 Notes payable
Accounts payable 166 196 192 203 154 Accounts payable
Taxes payable 53 66 4 82 8 Taxes payable
Accrued expenses 145 169 219 192 249 Accrued expenses
Total current liabilities $ 432 $ 517 $ 577 $ 612 $ 624 Total current liabilities
Long-term debt 254 854 639 554 370 Long-term debt
Minority interest 31 34 33 33 ― Deferred taxes
Other liabilities ― ― ― ― 41 Other liabilities
Total liabilities $ 717 $ 1,405 $ 1,249 $ 1,199 $ 1,035 Total liabilities

EQUITY EQUITY

Preferred stock $ 44 $ ― $ ― $ 17 $ ― Common Stock

Common stock 1 1 1 1 1 Capital Surplus
Retained earnings 1,497 998 1,124 1,141 1,146 Retained earnings
Less: treasury stock 603 618 618 618 618 Total equity
Total equity $ 939 $ 381 $ 507 $ 541 $ 529 Total liabilities and equity
Total liabilities and equity $ 1,656 $ 1,786 $ 1,756 $ 1,740 $ 1,564
 SCOTT CORPORATION FINANCIAL STATEMENTS, 1999-2003

INCOME STATEMENTS ($ MILLIONS)

1999 2000 2001 2002 2003

$ 4,761 $ 6,471 $ 9,187 $ 9,553 $ 8,777

Cost of goods sold 2,806 3,825 5,365 5,881 5,295
$ 1,955 $ 2,646 $ 3,822 $ 3,672 $ 3,482
Selling, general, and administrative expense 1,210 1,589 2,304 2,624 2,427
Depreciation 84 119 158 204 218
Operating profit $ 661 $ 938 $ 1,360 $ 844 $ 837
Interest expense 24 40 55 67 51
Non-operating income/expense 24 1 8 5 (10)
Special items (11) ― (18) (129) (30)
Pretax income $ 650 $ 899 $ 1,295 $ 653 $ 746
Total income taxes 250 346 499 253 295
Preferred dividends ### ### ### ### ###
$ 400 $ 553 $ 796 $ 400 $ 451

BALANCE SHEETS ($ MILLIONS)

1999 2000 2001 2002 2003

Cash and equivalents $ 216 $ 262 $ 445 $ 109 $ 198

Net receivables 1,053 1,346 1,754 1,674 1,556
Inventories 630 931 1,339 1,397 1,199
Prepaid expenses 74 94 157 196 191
Other current assets 73 94 136 157 121
Total current assets $ 2,046 $ 2,727 $ 3,831 $ 3,533 $ 3,265
Gross plant, property, and equipment 891 1,047 1,425 1,820 2,002
Accumulated depreciation 336 404 503 667 736
Net plant, property, and equipment $ 555 $ 643 $ 922 $ 1,153 $ 1,266
496 476 464 435 427
Other assets 46 106 144 276 290
$ 3,143 $ 3,952 $ 5,361 $ 5,397 $ 5,248

Long-term debt due in one year $ 32 $ 7 $ 2 $ 2 $ 1

Notes payable 397 445 553 480 419
Accounts payable 298 455 687 585 373
Taxes payable 36 79 54 29 ―
Accrued expenses 345 481 571 608 654
Total current liabilities $ 1,108 $ 1,467 $ 1,867 $ 1,704 $ 1,447
Long-term debt 11 10 296 379 386
Deferred taxes 18 2 5 ― ―
Other liabilities 41 41 37 53 80
Total liabilities $ 1,178 $ 1,520 $ 2,205 $ 2,136 $ 1,913

Common Stock $ 3 $ 3 $ 3 $ 3 $ 3
Capital Surplus 123 155 211 263 334
Retained earnings 1,839 2,274 2,942 2,995 2,998
$ 1,965 $ 2,432 $ 3,156 $ 3,261 $ 3,335
Total liabilities and equity $ 3,143 $ 3,952 $ 5,361 $ 5,397 $ 5,248
BLAKE INTERNATIONAL FINANCIAL STATEMENTS, 1999-2003 SCOTT CORPORATION FINANCIAL STATEMENTS, 1999-2003

FINANCIAL STATEMENT ANALYSIS - SOLVENCY FINANCIAL STATEMENT ANALYSIS - SOLVENCY

1999 2000 2001 2002 2003 1999 2000 2001 2002 2003

LIQUIDITY RATIOS LIQUIDITY RATIOS

Current ratio 3.11 2.83 2.54 2.23 1.99 Current ratio 1.85 1.86 2.05 2.07 2.26
Quick, or acid test, ratio 1.64 1.78 1.56 1.35 1.33 Quick, or acid test, ratio 1.28 1.22 1.33 1.25 1.43
Cash ratio 0.19 0.45 0.36 0.29 0.45 Cash ratio 0.19 0.18 0.24 0.06 0.14
Times interest earned ratio 14.00 6.31 4.31 2.30 2.78 Times interest earned ratio 27.54 23.45 24.73 12.60 16.41

TURNOVER RATIOS TURNOVER RATIOS

Receivables turnover ratio 6.87 5.89 6.48 6.23 6.95 Receivables turnover ratio 4.52 4.81 5.24 5.71 5.64
Days receivable (ACP) 53 62 56 59 52 Days receivable (ACP) 81 76 70 64 65
Inventory turnover ratio 3.28 3.87 4.00 3.73 4.21 Inventory turnover ratio 4.45 4.11 4.01 4.21 4.42
Days inventory 111 94 91 98 87 Days inventory 82 89 91 87 83
Accounts payable turnover ratio 8.72 7.98 8.81 7.20 8.64 Accounts payable turnover ratio 7.30 6.36 5.86 7.66 10.98
Days payable 42 46 41 51 42 Days payable 50 57 62 48 33
Cash conversion cycle 123 111 106 106 97 Cash conversion cycle 113 107 98 103 114

FINANCIAL STATEMENT ANALYSIS - PERFORMANCE FINANCIAL STATEMENT ANALYSIS - PERFORMANCE

1999 2000 2001 2002 2003 1999 2000 2001 2002 2003

OPERATING EFFICIENCY RATIOS OPERATING EFFICIENCY RATIOS

Total asset turnover ratio 2.10 1.95 2.08 1.85 1.85 Total asset turnover ratio 1.51 1.64 1.71 1.77 1.67
Net fixed asset turnover ratio 18.13 18.81 23.21 18.64 16.29 Net fixed asset turnover ratio 8.58 10.06 9.96 8.29 6.93
Equity turnover ratio 3.71 9.13 7.19 5.96 5.48 Equity turnover ratio 2.42 2.66 2.91 2.93 2.63

OPERATING PROFITABILITY RATIOS OPERATING PROFITABILITY RATIOS

Gross profit margin 40.16% 39.38% 38.12% 38.08% 39.79% Gross profit margin 41.06% 40.89% 41.60% 38.44% 39.67%
Operating profit margin 10.46% 7.62% 7.57% 4.34% 4.79% Operating profit margin 13.88% 14.50% 14.80% 8.83% 9.54%
Net margin 4.74% 4.00% 3.73% 0.74% 0.38% Net margin 8.40% 8.55% 8.66% 4.19% 5.14%
Operating income ROI 0.22 0.15 0.16 0.08 0.09 Operating income ROI 0.21 0.24 0.25 0.16 0.16
Return on total assets 0.10 0.08 0.08 0.01 0.01 Return on total assets 0.13 0.14 0.15 0.07 0.09
Return on total equity 0.18 0.36 0.27 0.04 0.02 Return on total equity 0.20 0.23 0.25 0.12 0.14
Return on equity 0.18 0.36 0.27 0.04 0.02 Return on equity 0.20 0.23 0.25 0.12 0.14
Dupont Formula - ROE 0.18 0.36 0.27 0.04 0.02 Dupont Formula - ROE 0.20 0.23 0.25 0.12 0.14

FINANCIAL STATEMENT ANALYSIS - RISK FINANCIAL STATEMENT ANALYSIS - RISK

1999 2000 2001 2002 2003 1999 2000 2001 2002 2003

BUSINESS RISK BUSINESS RISK

Operating leverage ― 473.4 5.16 8.37 3.70 Operating leverage ― 1.17 1.14 0.28 0.32
Financial leverage ― 0.58 0.73 1.39 1.51 Financial leverage ― 0.91 0.94 ### 0.48
Total leverage ― 274.3 3.75 11.62 5.59 Total leverage ― 1.06 1.06 ### 0.15

FINANCIAL RISK FINANCIAL RISK

Debt ratio 0.43 0.79 0.71 0.69 0.66 Debt ratio 0.37 0.38 0.41 0.40 0.36
Debt to equity ratio 0.27 2.38 1.50 1.18 1.05 Debt to equity ratio 0.02 0.01 0.09 0.12 0.12
Interest coverage 6.35 3.31 2.13 0.39 0.22 Interest coverage 16.67 13.83 14.47 5.97 8.84
TS, 1999-2003
 BLAKE INTERNATIONAL FINANCIAL STATEMENTS, 1999-2003

INCOME STATEMENTS ($ MILLIONS)

1999 2000 2001 2002 2003

SALES $ 3,481 100.00% $ 3,479 100.00% $ 3,644 100.00% $ 3,225 100.00% $ 2,900 100.00%
Cost of goods sold $ 2,083 59.84% $ 2,109 60.62% $ 2,255 61.88% $ 1,997 61.92% $ 1,746 60.21%
Gross profit 1,398 40.16% 1,370 39.38% 1,389 38.12% 1,228 38.08% 1,154 39.79%
Selling, general, and administrative expense $ 999 28.70% $ 1,065 30.61% $ 1,070 29.36% $ 1,043 32.34% $ 972 33.52%
Depreciation 35 1.01% 40 1.15% 43 1.18% 45 1.40% 43 1.48%
Interest expense 26 0.75% 42 1.21% 64 1.76% 61 1.89% 50 1.72%
Non-operating income/expense 10 (0.29)% 15 (0.43)% 5 (0.14)% (8) 0.25% 1 (0.03)%
Special items (72) 2.07% 0 0.00% (59) 1.62% (34) 1.05% (62) 2.14%
Total income taxes 100 2.87% 84 2.41% 12 0.33% 12 0.37% 10 0.34%
Minority interest 11 0.32% 15 0.43% 10 0.27% 1 0.03% 7 0.24%
Net income 165 4.74% 139 4.00% 136 3.73% 24 0.74% 11 0.38%

BALANCE SHEETS ($ MILLIONS)

1999 2000 2001 2002 2003

ASSETS
Cash and equivalents $ 80 4.83% $ 232 12.99% $ 210 11.96% $ 180 10.34% $ 282 18.03%
Net receivables 507 30.62% 591 33.09% 562 32.00% 518 29.77% 417 26.66%
Inventories 635 38.35% 545 30.52% 564 32.12% 535 30.75% 415 26.53%
Other current assets 121 7.31% 95 5.32% 129 7.35% 129 7.41% 129 8.25%
Total current assets $ 1,343 81.10% $ 1,463 81.91% $ 1,465 83.43% $ 1,362 78.28% $ 1,243 79.48%

Gross, plant, property, and equipment $ 336 20.29% $ 357 19.99% $ 354 20.16% $ 399 22.93% $ 422 26.98%
Accumulated depreciation 144 (8.70)% 172 (9.63)% 197 (11.22)% 226 (12.99)% 244 (15.60)%
Net plant, property, and equipment $ 192 11.59% $ 185 10.36% $ 157 8.94% $ 173 9.94% $ 178 11.38%
Other assets 121 7.31% 138 7.73% 134 7.63% 205 11.78% 143 9.14%

TOTAL ASSETS $ 1,656 100.00% $ 1,786 100.00% $ 1,756 100.00% $ 1,740 100.00% $ 1,564 100.00%

LIABILITIES
Long-term debt due in one year $ 1 0.06% $ 53 2.97% $ 121 6.89% $ 87 5.00% $ 185 11.83%
Notes payable 67 4.05% 33 1.85% 41 2.33% 48 2.76% 28 1.79%
Accounts payable 166 10.02% 196 10.97% 192 10.93% 203 11.67% 154 9.85%
Taxes payable 53 3.20% 66 3.70% 4 0.23% 82 4.71% 8 0.51%
Accrued expenses 145 8.76% 169 9.46% 219 12.47% 192 11.03% 249 15.92%
Total current liabilities $ 432 26.09% $ 517 28.95% $ 577 32.86% $ 612 35.17% $ 624 39.90%

Long-term debt 254 15.34% 854 47.82% 639 36.39% 554 31.84% 370 23.66%
Minority interest 31 1.87% 34 1.90% 33 1.88% 33 1.90% ― 0.00%
Other liabilities ― 0.00% ― 0.00% ― 0.00% ― 0.00% 41 2.62%

TOTAL LIABILITIES $ 717 43.30% $ 1,405 78.67% $ 1,249 71.13% $ 1,199 68.91% $ 1,035 66.18%

EQUITY
Preferred stock $ 44 2.66% $ ― 0.00% $ ― 0.00% $ 17 0.98% $ ― 0.00%
Common stock 1 0.06% 1 0.06% 1 0.06% 1 0.06% 1 0.06%
Retained earnings 1,497 90.40% 998 55.88% 1,124 64.01% 1,141 65.57% 1,146 73.27%
Less: treasury stock 603 (36.41)% 618 (34.60)% 618 (35.19)% 618 (35.52)% 618 (39.51)%
TOTAL EQUITY $ 939 56.70% $ 381 21.33% $ 507 28.87% $ 541 31.09% $ 529 33.82%

TOTAL LIABILITIES AND EQUITY $ 1,656 100.00% $ 1,786 100.00% $ 1,756 100.00% $ 1,740 100.00% $ 1,564 100.00%
 SCOTT CORPORATION FINANCIAL STATEMENTS, 1999-2003

INCOME STATEMENTS ($ MILLIONS)

1999 2000 2001 2002 2003

SALES $ 4,761 100.00% $ 6,471 100.00% $ 9,187 100.00% $ 9,553 100.00% $ 8,777 100.00%
Cost of goods sold $ 2,806 58.94% $ 3,825 59.11% $ 5,365 58.40% $ 5,881 61.56% $ 5,295 60.33%
Gross profit 1,955 41.06% 2,646 40.89% 3,822 41.60% 3,672 38.44% 3,482 39.67%
Selling, general, and administrative expense $ 1,210 25.41% $ 1,589 24.56% $ 2,304 25.08% $ 2,624 27.47% $ 2,427 27.65%
Depreciation 84 1.76% 119 1.84% 158 1.72% 204 2.14% 218 2.48%
Interest expense 24 0.50% 40 0.62% 55 0.60% 67 0.70% 51 0.58%
Non-operating income/expense 24 (0.50)% 1 (0.02)% 8 (0.09)% 5 (0.05)% (10) (0.11)%
Special items (11) 0.23% ― 0.00% (18) 0.20% (129) 1.35% (30) 0.34%
Total income taxes 250 5.25% 346 5.35% 499 5.43% 253 2.65% 295 3.36%
Preferred dividends 0 0.00% 0 0.00% 0 0.00% 0 0.00% 0 0.00%
Net income 400 8.40% 553 8.55% 796 8.66% 400 4.19% 451 5.14%

BALANCE SHEETS ($ MILLIONS)

1999 2000 2001 2002 2003

ASSETS

Cash and equivalents $ 216 6.87% $ 262 6.63% $ 445 8.30% $ 109 2.02% $ 198 3.77%
Net receivables 1,053 33.50% 1,346 34.06% 1,754 32.72% 1,674 31.02% 1,556 29.65%
Inventories 630 20.04% 931 23.56% 1,339 24.98% 1,397 25.88% 1,199 22.85%
Prepaid expenses 74 2.35% 94 2.38% 157 2.93% 196 3.63% 191 3.64%
Other current assets 73 2.32% 94 2.38% 136 2.54% 157 2.91% 121 2.31%
Total current assets $ 2,046 65.10% $ 2,727 69.00% $ 3,831 71.46% $ 3,533 65.46% $ 3,265 62.21%

Gross plant, property, and equipment 891 28.35% 1,047 26.49% 1,425 26.58% 1,820 33.72% 2,002 38.15%
Accumulated depreciation 336 (10.69)% 404 (10.22)% 503 (9.38)% 667 (12.36)% 736 (14.02)%
Net plant, property, and equipment $ 555 17.66% $ 643 16.27% $ 922 17.20% $ 1,153 21.36% $ 1,266 24.12%
Intagibles 496 15.78% 476 12.04% 464 8.66% 435 8.06% 427 8.14%
Other assets 46 1.46% 106 2.68% 144 2.69% 276 5.11% 290 5.53%

TOTAL ASSETS $ 3,143 100.00% $ 3,952 100.00% $ 5,361 100.00% $ 5,397 100.00% $ 5,248 100.00%

LIABILITIES
Long-term debt due in one year $ 32 1.02% $ 7 0.18% $ 2 0.04% $ 2 0.04% $ 1 0.02%
Notes payable 397 12.63% 445 11.26% 553 10.32% 480 8.89% 419 7.98%
Accounts payable 298 9.48% 455 11.51% 687 12.81% 585 10.84% 373 7.11%
Taxes payable 36 1.15% 79 2.00% 54 1.01% 29 0.54% ― 0.00%
Accrued expenses 345 10.98% 481 12.17% 571 10.65% 608 11.27% 654 12.46%
Total current liabilities $ 1,108 35.25% $ 1,467 37.12% $ 1,867 34.83% $ 1,704 31.57% $ 1,447 27.57%

Long-term debt 11 0.35% 10 0.25% 296 5.52% 379 7.02% 386 7.36%
Deferred taxes 18 0.57% 2 0.05% 5 0.09% ― 0.00% ― 0.00%
Other liabilities 41 1.30% 41 1.04% 37 0.69% 53 0.98% 80 1.52%

TOTAL LIABILITIES $ 1,178 37.48% $ 1,520 38.46% $ 2,205 41.13% $ 2,136 39.58% $ 1,913 36.45%

EQUITY
Common Stock $ 3 0.10% $ 3 0.08% $ 3 0.06% $ 3 0.06% $ 3 0.06%
Capital Surplus 123 3.91% 155 3.92% 211 3.94% 263 4.87% 334 6.36%
Retained earnings 1,839 58.51% 2,274 57.54% 2,942 54.88% 2,995 55.49% 2,998 57.13%
TOTAL EQUITY $ 1,965 62.52% $ 2,432 61.54% $ 3,156 58.87% $ 3,261 60.42% $ 3,335 63.55%

TOTAL LIABILITIES AND EQUITY $ 3,143 100.00% $ 3,952 100.00% $ 5,361 100.00% $ 5,397 100.00% $ 5,248 100.00%
 BLAKE INTERNATIONAL FINANCIAL STATEMENTS, 1999-2003 SCOTT CORPORATION FINANCIAL STATEMENTS, 1999-2003

INCOME STATEMENTS ($ MILLIONS) INCOME STATEMENTS ($ MILLIONS)

Increase or (Decrease) Increase or (Decrease) Increase or (Decrease) Increase or (Decrease) Increase or (Decrease) Increase or (Decrease) Increase or (Decrease) Increase or (Decrease)
2000 Amount ($) Percent (%) 2001 Amount ($) Percent (%) 2002 Amount ($) Percent (%) 2003 Amount ($) Percent (%) 2000 Amount ($) Percent (%) 2001 Amount ($) Percent (%) 2002 Amount ($) Percent (%) 2003 Amount ($) Percent (%)
1999 ($) ($) from base year from base year ($) from base year from base year ($) from base year from base year ($) from base year from base year 1999 ($) ($) from base year from base year ($) from base year from base year ($) from base year from base year ($) from base year from base year

Sales 3,481 3,479 (2) (0.06)% 3,644 163 4.68% 3,225 (256) (7.35)% 2,900 (581) (16.69)% Sales 4,761 6,471 1,710 35.92% 9,187 4,426 92.96% 9,553 4,792 100.65% 8,777 4,016 84.35%
Cost of goods sold 2,083 2,109 26 1.25% 2,255 172 8.26% 1,997 (86) (4.13)% 1,746 (337) (16.18)% Cost Cost of goods sold 2,806 3,825 1,019 36.32% 5,365 2,559 91.20% 5,881 3,075 109.59% 5,295 2,489 88.70%

Gross profit 1,398 1,370 (28) (2.00)% 1,389 (9) (0.64)% 1,228 (170) (12.16)% 1,154 (244) (17.45)% Gross profit 1,955 2,646 691 35.35% 3,822 1,867 95.50% 3,672 1,717 87.83% 3,482 1,527 78.11%

Selling, general, and administrative expense 999 1,065 66 6.61% 1,070 71 7.11% 1,043 44 4.40% 972 (27) (2.70)% Selling, general, and administrative expense 1,210 1,589 379 31.32% 2,304 1,094 90.41% 2,624 1,414 116.86% 2,427 1,217 100.58%
Depreciation 35 40 5 14.29% 43 8 22.86% 45 10 28.57% 43 8 22.86% Depreciation 84 119 35 41.67% 158 74 88.10% 204 120 142.86% 218 134 159.52%

Operating profit 364 265 (99) (27.20)% 276 (88) (24.18)% 140 (224) (61.54)% 139 (225) (61.81)% Operating profit 661 938 277 41.91% 1,360 699 105.75% 844 183 27.69% 837 176 26.63%

Interest expense 26 42 16 61.54% 64 38 146.15% 61 35 134.62% 50 24 92.31% Interest expense 24 40 16 66.67% 55 31 129.17% 67 43 179.17% 51 27 112.50%
Non-operating income/expense 10 15 5 50.00% 5 (5) (50.00)% (8) (2) (20.00)% 1 (9) (90.00)% Non-operating income/expense 24 1 (23) (95.83)% 8 (16) (66.67)% 5 19 (79.17)% (10) (14) (58.33)%
Special items (72) ### (72) 100.00% (59) (13) (18.06)% (34) (38) (52.78)% (62) (10) (13.89)% Special items (11) ― 11 100.00% (18) (29) (63.64)% (129) (118) (1073)% (30) (19) (172.73)%

Pretax income 276 238 (38) (13.77)% 158 (118) (42.75)% 37 (239) (86.59)% 28 (248) (89.86)% Pretax income 650 899 249 38.31% 1,295 645 99.23% 653 3 0.46% 746 96 14.77%

Total income taxes 100 84 (16) (16.00)% 12 (88) (88.00)% 12 (88) (88.00)% 10 (90) (90.00)% Total income taxes 250 346 96 38.40% 499 249 99.60% 253 3 1.20% 295 45 18.00%
Minority interest 11 15 4 36.36% 10 (1) (9.09)% 1 (10) (90.91)% 7 (4) (36.36)% Preferred dividends ### ### 0 ### 0 0 ### ### 0 ### 0 0 ###

Net income 165 139 (26) (15.76)% 136 (29) (17.58)% 24 (141) (85.45)% 11 (154) (93.33)% Net income 400 553 153 38.25% 796 396 99.00% 400 0 0.00% 451 51 12.75%

TREND ANALYSIS TREND ANALYSIS

120% 250% ### 2000
### 2002
###
104.68% Sales ### 135.92%### 200.65%
###
99.94%
98.00% 99.36% Gross profit### 135.35%### 187.83%
###
205.75%
100% 200.65%
92.64% 200% Operating pro
### 141.91%### 195.50%
192.96%
127.69%
###
199.00%
87.84% 187.83% 184.35%
###84.24% 2000### 2002
###82.42% 83.30%
82.55% Net income### 138.25% ### 100.00%
### 178.11%
80% Sales ### 99.94%
### 92.64%
###75.82%
72.80%
Gross profit
### 98.00%
### 87.84%
### 150% 141.91%
138.25%
135.92%
Operating ###
pro 72.80%
### 38.46%
### 135.35% 127.69% 126.63%
60% Net income### 84.24%
### 14.54%
### 112.75%
100.00%
100%
40% 38.46%
38.19%

50%
20% 14.54%

6.66%
0% 0%
1999 2000 2001 2002 2003 1999 2000 2001 2002 2003

Sales Gross profit Operating profit Net income Sales Gross profit Operating profit Net income

BALANCE SHEETS ($ MILLIONS) BALANCE SHEETS ($ MILLIONS)

Increase or (Decrease) Increase or (Decrease) Increase or (Decrease) Increase or (Decrease) Increase or (Decrease) Increase or (Decrease) Increase or (Decrease) Increase or (Decrease)
2000 Amount ($) Percent (%) 2001 Amount ($) Percent (%) 2002 Amount ($) Percent (%) 2003 Amount ($) Percent (%) 2000 Amount ($) Percent (%) 2001 Amount ($) Percent (%) 2002 Amount ($) Percent (%) 2003 Amount ($) Percent (%)
ASSETS 1999 ($) ($) from base year from base year ($) from base year from base year ($) from base year from base year ($) from base year from base year ASSETS 1999 ($) ($) from base year from base year ($) from base year from base year ($) from base year from base year ($) from base year from base year

Cash and equivalents 80 232 152 190.00% 210 130 162.50% 180 100 125.00% 282 202 252.50% Cash and equivalents 216 262 46 21.30% 445 229 106.02% 109 (107) (49.54)% 198 (18) (8.33)%
Net receivables 507 591 84 16.57% 562 55 10.85% 518 11 2.17% 417 (90) (17.75)% Net receivables 1,053 1,346 293 27.83% 1,754 701 66.57% 1,674 621 58.97% 1,556 503 47.77%
Inventories 635 545 (90) (14.17)% 564 (71) (11.18)% 535 (100) (15.75)% 415 (220) (34.65)% Inventories 630 931 301 47.78% 1,339 709 112.54% 1,397 767 121.75% 1,199 569 90.32%
Other current assets 121 95 (26) (21.49)% 129 8 6.61% 129 8 6.61% 129 8 6.61% Prepaid expenses 74 94 20 27.03% 157 83 112.16% 196 122 164.86% 191 117 158.11%
Other current assets 73 94 21 28.77% 136 63 86.30% 157 84 115.07% 121 48
Total current assets 1,343 1,463 120 8.94% 1,465 122 9.08% 1,362 19 1.41% 1,243 (100) (7.45)% 65.75%

Gross, plant, property, and equipment 336 357 21 6.25% 354 18 5.36% 399 63 18.75% 422 86 25.60% Total current assets 2,046 2,727 681 33.28% 3,831 1,785 87.24% 3,533 1,487 72.68% 3,265 1,219 59.58%
Accumulated depreciation 144 172 28 19.44% 197 53 36.81% 226 82 56.94% 244 100 69.44%
Gross plant, property, and equipment 891 1,047 156 17.51% 1,425 534 59.93% 1,820 929 104.26% 2,002 1,111 124.69%
Net plant, property, and equipment 192 185 (7) (3.65)% 157 (35) (18.23)% 173 (19) (9.90)% 178 (14) (7.29)% Accumulated depreciation 336 404 68 20.24% 503 167 49.70% 667 331 98.51% 736 400 119.05%

Other assets 121 138 17 14.05% 134 13 10.74% 205 84 69.42% 143 22 18.18% Net plant, property, and equipment 555 643 88 15.86% 922 367 66.13% 1,153 598 107.75% 1,266 711 128.11%

Total assets 1,656 1,786 130 7.85% 1,756 100 6.04% 1,740 84 5.07% 1,564 (92) (5.56)% Intagibles 496 476 (20) (4.03)% 464 (32) (6.45)% 435 (61) (12.30)% 427 (69) (13.91)%
Other assets 46 106 60 130.43% 144 98 213.04% 276 230 500.00% 290 244 530.43%

Total assets 3,143 3,952 809 25.74% 5,361 2,218 70.57% 5,397 2,254 71.71% 5,248 2,105 66.97%

Increase or (Decrease) Increase or (Decrease) Increase or (Decrease) Increase or (Decrease) Increase or (Decrease) Increase or (Decrease) Increase or (Decrease) Increase or (Decrease)
2000 Amount ($) Percent (%) 2001 Amount ($) Percent (%) 2002 Amount ($) Percent (%) 2003 Amount ($) Percent (%) 2000 Amount ($) Percent (%) 2001 Amount ($) Percent (%) 2002 Amount ($) Percent (%) 2003 Amount ($) Percent (%)
LIABILITIES 1999 ($) ($) from base year from base year ($) from base year from base year ($) from base year from base year ($) from base year from base year LIABILITIES 1999 ($) ($) from base year from base year ($) from base year from base year ($) from base year from base year ($) from base year from base year

Long-term debt due in one year 1 53 52 5200% 121 120 12000% 87 86 8600.00% 185 184 18400% Long-term debt due in one year 32 7 (25) (78.13)% 2 (30) (93.75)% 2 (30) (93.75)% 1 (31) (96.88)%
Notes payable 67 33 (34) (50.75)% 41 (26) (38.81)% 48 (19) (28.36)% 28 (39) (58.21)% Notes payable 397 445 48 12.09% 553 156 39.29% 480 83 20.91% 419 22 5.54%
Accounts payable 166 196 30 18.07% 192 26 15.66% 203 37 22.29% 154 (12) (7.23)% Accounts payable 298 455 157 52.68% 687 389 130.54% 585 287 96.31% 373 75 25.17%
Taxes payable 53 66 13 24.53% 4 (49) (92.45)% 82 29 54.72% 8 (45) (84.91)% Taxes payable 36 79 43 119.44% 54 18 50.00% 29 (7) (19.44)% ― ― 0.00%
Accrued expenses 145 169 24 16.55% 219 74 51.03% 192 47 32.41% 249 104 71.72% Accrued expenses 345 481 136 39.42% 571 226 65.51% 608 263 76.23% 654 309 89.57%

Total current liabilities 432 517 85 19.68% 577 145 33.56% 612 180 41.67% 624 192 44.44% Total current liabilities 1,108 1,467 359 32.40% 1,867 759 68.50% 1,704 596 53.79% 1,447 339 30.60%

Long-term debt 254 854 600 236.22% 639 385 151.57% 554 300 118.11% 370 116 45.67% Long-term debt 11 10 (1) (9.09)% 296 285 2590.91% 379 368 3345.45% 386 375 3409.09%
Minority interest 31 34 3 9.68% 33 2 6.45% 33 2 6.45% ― Deferred taxes 18 2 (16) (88.89)% 5 (13) (72.22)% ― ― 0.00% ― ― 0.00%
Other liabilities ― ― ― ― ― ― ― ― ― ― 41 41 410.00% Other liabilities 41 41 ― 0.00% 37 (4) (9.76)% 53 12 29.27% 80 39 95.12%

Total liabilities 717 1,405 688 95.96% 1,249 532 74.20% 1,199 482 67.22% 1,035 318 44.35% Total liabilities 1,178 1,520 342 29.03% 2,205 1,027 87.18% 2,136 958 81.32% 1,913 735 62.39%

EQUITY EQUITY

Preferred stock 44 ― (44) 0.00% ― (44) 0.00% 17 (27) (61.36)% ― (44) 0.00% Common Stock 3 3 ― 0.00% 3 ― 0.00% 3 ― 0.00% 3 ― 0.00%
Common stock 1 1 0 0.00% 1 0 0.00% 1 0 0.00% 1 0 0.00% Capital Surplus 123 155 32 26.02% 211 88 71.54% 263 140 113.82% 334 211 171.54%
Retained earnings 1,497 998 (499) (33.33)% 1,124 (373) (24.92)% 1,141 (356) (23.78)% 1,146 (351) (23.45)% Retained earnings 1,839 2,274 435 23.65% 2,942 1,103 59.98% 2,995 1,156 62.86% 2,998 1,159 63.02%
Less: treasury stock 603 618 15 2.49% 618 15 2.49% 618 15 2.49% 618 15 2.49%
Total equity 1,965 2,432 467 23.77% 3,156 1,191 60.61% 3,261 1,296 65.95% 3,335 1,370 69.72%
Total equity 939 381 (558) (59.42)% 507 (432) (46.01)% 541 (398) (42.39)% 529 (410) (43.66)%
Total liabilities and equity 3,143 3,952 809 25.74% 5,361 2,218 70.57% 5,397 2,254 71.71% 5,248 2,105 66.97%
Total liabilities and equity 1,656 1,786 130 7.85% 1,756 100 6.04% 1,740 84 5.07% 1,564 (92) (5.56)%
 RATIO ANALYSIS OF FINANCIAL STATEMENTS

SOLVENCY RATIOS

LIQUIDITY RATIO

CURRENT RATIO 1999 2000

Blake International
Current assets $ 1,343 $ 1,463 $
Current liabilities 432 517
Current ratio ### ###

Scott Corporation
Current assets $ 2,046 $ 2,727 $
Current liabilities 1,108 1,467
Current ratio ### ###

QUICK, OR ACID TEST, RATIO 1999 2000

Blake International
Current assets $ 1,343 $ 1,463 $
Inventories 635 545
Current liabilities 432 517
Quick, or acid test, ratio 1.64 1.78

Scott Corporation
Current assets $ 2,046 $ 2,727 $
Inventories 630 931
Current liabilities 1,108 1,467
Quick, or acid test, ratio 1.28 1.22

CASH RATIO 1999 2000

Blake International
Cash and cash equivalents $ 80 $ 232 $
Current liabilities 432 517
Cash ratio 0.19 0.45

Scott Corporation
Cash and cash equivalents $ 216 $ 262 $
Current liabilities 1,108 1,467
Cash ratio 0.19 0.18
TIMES INTEREST EARNED RATIO 1999 2000

Blake International
Operating income $ 364 $ 265 $
Interest Expense 26 42
Times interest earned ratio 14.00 6.31

Scott Corporation
Operating income $ 661 $ 938 $
Interest Expense 24 40
Times interest earned ratio 27.54 23.45

TURNOVER RATIO

RECEIVABLES TURNOVER RATIO 1999 2000

Blake International
Sales $ 3,481 $ 3,479 $
Receivables 507 591
Receivables turnover ratio ### ###

Scott Corporation
Sales $ 4,761 $ 6,471 $
Receivables 1,053 1,346
Receivables turnover ratio ### ###

DAYS RECEIVABLE 1999 2000

Blake International
Receivables $ 507 $ 591 $
Average sales per day 10 10
Days receivable 53 62

Scott Corporation
Receivables $ 1,053 $ 1,346 $
Average sales per day 13 18
Days receivable 81 76

INVENTORY TURNOVER RATIO 1999 2000

Blake International
 Cost of goods sold $ 2,083 $ 2,109 $
Inventory 635 545
Inventory turnover ratio 3.28 3.87

Scott Corporation
Cost of goods sold $ 2,806 $ 3,825 $
Inventory 630 931
Inventory turnover ratio 4.45 4.11

DAYS INVENTORY 1999 2000

Blake International
Inventory $ 635 $ 545 $
Average cost of goods sold per day 6 6
Days inventory 111 94

Scott Corporation
Inventory $ 630 $ 931 $
Average cost of goods sold per day 8 10
Days inventory 82 89

ACCOUNTS PAYABLE TURNOVER 1999 2000

Blake International
Cost of goods sold $ 2,083 $ 2,109 $
Beginning inventory ### ###
Ending inventory 635 545
Purchases $ 1,448 $ 1,564 $
Accounts payable 166 196
Accounts payable turnover 8.72 7.98

Scott Corporation
Cost of goods sold $ 2,806 $ 3,825 $
Beginning inventory ### ###
Ending inventory 630 931
Purchases $ 2,176 $ 2,894 $
Accounts payable 298 455
Accounts payable turnover 7.30 6.36

DAYS PAYABLE 1999 2000

Blake International
Accounts payable $ 166 $ 196 $
Average purchases per day 4 4
Days payable 42 46
Scott Corporation
Accounts payable $ 298 $ 455 $
Average purchases per day 6 8
Days payable 50 57

CASH CONVERSION CYCLE 1999 2000

Blake International
Receivable days 53 62
Inventory days 111 94
Payable days 42 46
Cash conversion cycle (days) 123 111

Scott Corporation
Receivable days 81 76
Inventory days 82 89
Payable days 50 57
Cash conversion cycle (days) 113 107
IAL STATEMENTS FORMULAS

OS

2001 2002 2003

1,465 $ 1,362 $ 1,243

577 612 624
### ### ###
𝑪𝒖𝒓𝒓𝒆𝒏𝒕 𝒓𝒂𝒕𝒊𝒐= (𝐶𝑢𝑟𝑟𝑒𝑛𝑡 𝑎𝑠𝑠𝑒𝑡𝑠)/(𝐶𝑢𝑟𝑟𝑒𝑛𝑡 𝑙𝑖𝑎𝑏𝑖𝑙𝑖𝑡𝑖𝑒𝑠)

3,831 $ 3,533 $ 3,265

1,867 1,704 1,447
### ### ###

2001 2002 2003

1,465 $ 1,362 $ 1,243

564 535 415
577 612 624
1.56 1.35 1.33
■8(𝑸𝒖𝒊𝒄𝒌, 𝒐𝒓 𝒂𝒄𝒊𝒅@𝒕𝒆𝒔𝒕, 𝒓𝒂𝒕𝒊𝒐)= (𝐶𝑢𝑟𝑟𝑒𝑛𝑡 𝑎𝑠𝑠𝑒𝑡𝑠 −𝐼𝑛𝑣𝑒𝑛𝑡𝑜𝑟𝑖𝑒𝑠)/(𝐶𝑢𝑟𝑟𝑒𝑛𝑡 𝑙

3,831 $ 3,533 $ 3,265

1,339 1,397 1,199
1,867 1,704 1,447
1.33 1.25 1.43

2001 2002 2003

210 $ 180 $ 282

577 612 624
0.36 0.29 0.45
𝑪𝒂𝒔𝒉 𝒓𝒂𝒕𝒊𝒐= (𝐶𝑎𝑠ℎ 𝑎𝑛𝑑 𝑐𝑎𝑠ℎ 𝑒𝑞𝑢𝑖𝑣𝑎𝑙𝑒𝑛𝑡𝑠)/(𝐶𝑢𝑟𝑟𝑒𝑛𝑡 𝑙𝑖𝑎𝑏𝑖𝑙𝑖𝑡𝑖𝑒𝑠

445 $ 109 $ 198

1,867 1,704 1,447
0.24 0.06 0.14
 2001 2002 2003

276 $ 140 $ 139

64 61 50
4.31 2.30 2.78
■8(𝑻𝒊𝒎𝒆𝒔 𝒊𝒏𝒕𝒆𝒓𝒆𝒔𝒕@𝒆𝒂𝒓𝒏𝒆𝒅 𝒓𝒂𝒕𝒊𝒐)= (𝑂𝑝𝑒𝑟𝑎𝑡𝑖𝑛𝑔 𝑖𝑛𝑐𝑜𝑚𝑒)/(𝐼𝑛𝑡𝑒𝑟𝑒𝑠𝑡

1,360 $ 844 $ 837

55 67 51
24.73 12.60 16.41

2001 2002 2003

3,644 $ 3,225 $ 2,900

562 518 417
### ### ###
■8(𝑹𝒆𝒄𝒆𝒊𝒗𝒂𝒃𝒍𝒆𝒔@𝑻𝒖𝒓𝒏𝒐𝒗𝒆𝒓)= 𝑆𝑎𝑙𝑒𝑠/𝑅𝑒𝑐𝑒𝑖𝑣𝑎𝑏𝑙𝑒𝑠

9,187 $ 9,553 $ 8,777

1,754 1,674 1,556
### ### ###

2001 2002 2003

562 $ 518 $ 417 ■8(𝑨𝒗𝒆𝒓𝒂𝒈𝒆 𝒔𝒂𝒍𝒆𝒔@𝒑𝒆𝒓 𝒅𝒂𝒚)= (𝐴𝑛𝑛𝑢𝑎𝑙 𝑆𝑎𝑙𝑒𝑠)/365

10 9 8
56 59 52

■8(𝑫𝒂𝒚𝒔@𝑹𝒆𝒄𝒆𝒊𝒗𝒂𝒃𝒍𝒆)= 𝑅𝑒𝑐𝑒𝑖𝑣𝑎𝑏𝑙𝑒𝑠/(𝐴𝑣𝑒𝑟𝑎𝑔𝑒 𝑠𝑎𝑙𝑒𝑠 𝑝𝑒𝑟 𝑑𝑎

1,754 $ 1,674 $ 1,556
25 26 24
70 64 65

2001 2002 2003

2,255 $ 1,997 $ 1,746
564 535 415
4.00 3.73 4.21
■8(𝑰𝒏𝒗𝒆𝒏𝒕𝒐𝒓𝒚@𝑻𝒖𝒓𝒏𝒐𝒗𝒆𝒓)= (𝐶𝑜𝑠𝑡 𝑜𝑓 𝑔𝑜𝑜𝑑𝑠 𝑠𝑜𝑙𝑑)/𝐼𝑛𝑣𝑒𝑛𝑡𝑜𝑟

5,365 $ 5,881 $ 5,295

1,339 1,397 1,199
4.01 4.21 4.42

2001 2002 2003

564 $ 535 $ 415■8(𝑨𝒗𝒆𝒓𝒂𝒈𝒆 𝒄𝒐𝒔𝒕 𝒐𝒇@𝒈𝒐𝒐𝒅𝒔 𝒔𝒐𝒍𝒅 𝒑𝒆𝒓 𝒅𝒂𝒚)= █(𝐴𝑛𝑛𝑢𝑎𝑙 𝑐𝑜𝑠𝑡 𝑜𝑓 @𝑔𝑜𝑜𝑑
6 5 5
91 98 87

1,339 $ 1,397 $ 1,199 ■8(𝑫𝒂𝒚𝒔@𝒊𝒏𝒗𝒆𝒏𝒕𝒐𝒓𝒚)= 𝐼𝑛𝑣𝑒𝑛𝑡𝑜𝑟𝑦/█(𝐴𝑣𝑒𝑟𝑎𝑔𝑒 𝑐𝑜𝑠𝑡 𝑜𝑓 𝑔𝑜𝑜𝑙𝑑𝑠@𝑠𝑜𝑙𝑑

15 16 15
91 87 83

2001 2002 2003

2,255 $ 1,997 $ 𝑷𝒖𝒓𝒄𝒉𝒂𝒔𝒆𝒔=■8(𝐶𝑜𝑠𝑡

1,746 𝑜𝑓 𝑔𝑜𝑜𝑑𝑠 𝑠𝑜𝑙𝑑@█(+ 𝐼𝑛𝑣𝑒𝑛𝑡𝑜𝑟𝑦 𝑝𝑟𝑒𝑣. 𝑦𝑒𝑎𝑟 @− 𝑖𝑛𝑣𝑒𝑛𝑡𝑜𝑟
### ### ###
564 535 415
1,691 $ 1,462 $ 1,331
192 203 154
8.81 7.20 8.64
■8(𝑨𝒄𝒄𝒐𝒖𝒏𝒕𝒔 𝒑𝒂𝒚𝒂𝒃𝒍𝒆@𝑻𝒖𝒓𝒏𝒐𝒗𝒆𝒓)= 𝑃𝑢𝑟𝑐ℎ𝑎𝑠𝑒𝑠/(𝐴𝑐𝑐𝑜𝑢𝑛𝑡𝑠 𝑝𝑎𝑦

5,365 $ 5,881 $ 5,295

### ### ###
1,339 1,397 1,199
4,026 $ 4,484 $ 4,096
687 585 373
5.86 7.66 10.98

2001 2002 2003

192 $ 203 $ 154 ■8(𝑨𝒗𝒆𝒓𝒂𝒈𝒆 𝒑𝒖𝒓𝒄𝒉𝒂𝒔𝒆𝒔@𝒑𝒆𝒓 𝒅𝒂𝒚)= (𝐴𝑛𝑛𝑢𝑎𝑙 𝑝𝑢𝑟𝑐ℎ𝑎𝑠𝑒𝑠)/36

5 4 4
41 51 42
 ■8(𝑫𝒂𝒚𝒔@𝒑𝒂𝒚𝒂𝒃𝒍𝒆)= (𝐴𝑐𝑐𝑜𝑢𝑛𝑡𝑠 𝑝𝑎𝑦𝑎𝑏𝑙𝑒)/(𝐴𝑣𝑒𝑟𝑎𝑔𝑒 𝑝𝑢𝑟𝑐ℎ𝑎𝑠𝑒𝑠 𝑝𝑒
687 $ 585 $ 373
11 12 11
62 48 33

2001 2002 2003

56 59 52
91 98 87
41 51 42
■8(𝑪𝒂𝒔𝒉 𝒄𝒐𝒏𝒗𝒆𝒓𝒔𝒊𝒐𝒏@𝒄𝒚𝒄𝒍𝒆)=■8( 𝑅𝑒𝑐𝑒𝑖𝑣𝑎𝑏𝑙𝑒 𝑑𝑎𝑦𝑠@█( + 𝐼𝑛𝑣𝑒𝑛𝑡𝑜𝑟𝑦 𝑑𝑎𝑦𝑠
106 106 97

70 64 65
91 87 83
62 48 33
98 103 114
AS CONTENTS:
SOLVENCY RATIO
- Liquidity ratio
Current ratio
Quick ratio
Cash ratio
- Turnover ratio
Receivables turnover ratio
Days receivable
Inventory turnover ratio
Days inventory
Accounts payable turnover ratio
Days payable
Cash conversion cycle
OPERATING PERFORMANCE

)/(𝐶𝑢𝑟𝑟𝑒𝑛𝑡 𝑙𝑖𝑎𝑏𝑖𝑙𝑖𝑡𝑖𝑒𝑠)

𝑠 −𝐼𝑛𝑣𝑒𝑛𝑡𝑜𝑟𝑖𝑒𝑠)/(𝐶𝑢𝑟𝑟𝑒𝑛𝑡 𝑙𝑖𝑎𝑏𝑖𝑙𝑖𝑡𝑖𝑒𝑠)

𝑛𝑡𝑠)/(𝐶𝑢𝑟𝑟𝑒𝑛𝑡 𝑙𝑖𝑎𝑏𝑖𝑙𝑖𝑡𝑖𝑒𝑠)
𝑎𝑡𝑖𝑛𝑔 𝑖𝑛𝑐𝑜𝑚𝑒)/(𝐼𝑛𝑡𝑒𝑟𝑒𝑠𝑡 𝑒𝑥𝑝𝑒𝑛𝑠𝑒)

= 𝑆𝑎𝑙𝑒𝑠/𝑅𝑒𝑐𝑒𝑖𝑣𝑎𝑏𝑙𝑒𝑠

(𝐴𝑛𝑛𝑢𝑎𝑙 𝑆𝑎𝑙𝑒𝑠)/365

𝑒𝑠/(𝐴𝑣𝑒𝑟𝑎𝑔𝑒 𝑠𝑎𝑙𝑒𝑠 𝑝𝑒𝑟 𝑑𝑎𝑦)

 𝑜𝑓 𝑔𝑜𝑜𝑑𝑠 𝑠𝑜𝑙𝑑)/𝐼𝑛𝑣𝑒𝑛𝑡𝑜𝑟𝑦

█(𝐴𝑛𝑛𝑢𝑎𝑙 𝑐𝑜𝑠𝑡 𝑜𝑓 @𝑔𝑜𝑜𝑑𝑠 𝑠𝑜𝑙𝑑)/365

𝑎𝑔𝑒 𝑐𝑜𝑠𝑡 𝑜𝑓 𝑔𝑜𝑜𝑙𝑑𝑠@𝑠𝑜𝑙𝑑 𝑝𝑒𝑟 𝑑𝑎𝑦)

𝑝𝑟𝑒𝑣. 𝑦𝑒𝑎𝑟 @− 𝑖𝑛𝑣𝑒𝑛𝑡𝑜𝑟𝑦 𝑐𝑢𝑟𝑟𝑒𝑛𝑡 𝑦𝑒𝑎𝑟))

𝑢𝑟𝑐ℎ𝑎𝑠𝑒𝑠/(𝐴𝑐𝑐𝑜𝑢𝑛𝑡𝑠 𝑝𝑎𝑦𝑎𝑏𝑙𝑒)

= (𝐴𝑛𝑛𝑢𝑎𝑙 𝑝𝑢𝑟𝑐ℎ𝑎𝑠𝑒𝑠)/365
)/(𝐴𝑣𝑒𝑟𝑎𝑔𝑒 𝑝𝑢𝑟𝑐ℎ𝑎𝑠𝑒𝑠 𝑝𝑒𝑟 𝑑𝑎𝑦)

𝑠@█( + 𝐼𝑛𝑣𝑒𝑛𝑡𝑜𝑟𝑦 𝑑𝑎𝑦𝑠@− 𝑃𝑎𝑦𝑎𝑏𝑙𝑒 𝑑𝑎𝑦𝑠))

 RATIO ANALYSIS OF FINANCIAL STATEMENTS

OPERATING PERFORMANCE

OPERATING EFFICIENCY RATIOS

TOTAL ASSET TURNOVER RATIO 1999 2000

Blake International
Total sales $ 3,481 $ 3,479 $
Total assets 1,656 1,786
Asset turnover ratio 2.10 1.95

Scott Corporation
Total sales $ 4,761 $ 6,471 $
Total assets 3,143 3,952
Asset turnover ratio 1.51 1.64

NET FIXED ASSET TURNOVER RATIO 1999 2000

Blake International
Total sales $ 3,481 $ 3,479 $
Net fixed assets 192 185
Net fixed asset turnover ratio 18.13 18.81

Scott Corporation
Total sales $ 4,761 $ 6,471 $
Net fixed assets 555 643
Net fixed asset turnover ratio 8.58 10.06

EQUITY TURNOVER RATIO 1999 2000

Blake International
Total sales $ 3,481 $ 3,479 $
Shareholder's equity 939 381
Equity turnover ratio 3.71 9.13

Scott Corporation
Total Sales $ 4,761 $ 6,471 $
Shareholder's equity 1,965 2,432
Equity turnover ratio 2.42 2.66
 OPERATING PROFITABILITY RATIOS

GROSS PROFIT MARGIN 1999 2000

Blake International
Gross profit $ 1,398 $ 1,370 $
Sales 3,481 3,479
Gross profit margin 40.16% 39.38%

Scott Corporation
Gross profit $ 1,955 $ 2,646 $
Sales 4,761 6,471
Gross profit margin 41.06% 40.89%

OPERATING PROFIT MARGIN 1999 2000

Blake International
Operating profit $ 364 $ 265 $
Sales 3,481 3,479
Operating profit margin 10.46% 7.62%

Scott Corporation
Operating profit $ 661 $ 938 $
Sales 4,761 6,471
Operating profit margin 13.88% 14.50%

NET MARGIN 1999 2000

Blake International
Net income $ 165 $ 139 $
Sales 3,481 3,479
Net margin 4.74% 4.00%

Scott Corporation
Net income $ 400 $ 553 $
Sales 4,761 6,471
Net margin 8.40% 8.55%

OPERATING INCOME RETURN ON INVESTMENT 1999 2000

Blake International
Operating income $ 364 $ 265 $
 Total assets 1,656 1,786
Operating income return on investment 0.22 0.15

Scott Corporation
Operating income $ 661 $ 938 $
Total assets 3,143 3,952
Operating income return on investment 0.21 0.24

RETURN ON TOTAL ASSETS 1999 2000

Blake International
Net income $ 165 $ 139 $
Total assets 1,656 1,786
Return on total assets 0.10 0.08

Scott Corporation
Net income $ 400 $ 553 $
Total assets 3,143 3,952
Return on total assets 0.13 0.14

RETURN ON TOTAL EQUITY 1999 2000

Blake International
Net income $ 165 $ 139 $
Total equity 939 381
Return on total equity 0.18 0.36

Scott Corporation
Net income $ 400 $ 553 $
Total equity 1,965 2,432
Return on total equity 0.20 0.23

RETURN ON EQUITY 1999 2000

Blake International
Net income $ 165 $ 139 $
Shareholder's equity 939 381
Return on equity 0.18 0.36

Scott Corporation
Net income $ 400 $ 553 $
Shareholder's equity 1,965 2,432
Return on equity 0.20 0.23
 THE DUPONT FORMULA

DUPONT FORMULA - RETURN ON EQUITY 1999 2000

Blake International
Net income $ 165 $ 139 $
Sales 3,481 3,479
Total assets 1,656 1,786
Shareholder's equity 939 381
Return on equity 0.18 0.36

Scott Corporation
Net income $ 400 $ 553 $
Sales 4,761 6,471
Total assets 3,143 3,952
Shareholder's equity 1,965 2,432
Return on equity 0.20 0.23
IAL STATEMENTS FORMULAS

RMANCE

Y RATIOS

2001 2002 2003

3,644 $ 3,225 $ 2,900

1,756 1,740 1,564
2.08 1.85 1.85
■8(𝑻𝒐𝒕𝒂𝒍 𝑨𝒔𝒔𝒆𝒕𝒔@𝑻𝒖𝒓𝒏𝒐𝒗𝒆𝒓)= (𝑇𝑜𝑡𝑎𝑙 𝑆𝑎𝑙𝑒𝑠)/(𝑇𝑜𝑡𝑎𝑙 𝑎𝑠𝑠𝑒𝑡𝑠

9,187 $ 9,553 $ 8,777

5,361 5,397 5,248
1.71 1.77 1.67

2001 2002 2003

3,644 $ 3,225 $ 2,900

157 173 178
23.21 18.64 16.29
■8(𝑵𝒆𝒕 𝒇𝒊𝒙𝒆𝒅 𝑨𝒔𝒔𝒆𝒕𝒔@𝑻𝒖𝒓𝒏𝒐𝒗𝒆𝒓)= (𝑇𝑜𝑡𝑎𝑙 𝑆𝑎𝑙𝑒𝑠)/(𝑁𝑒𝑡 𝑓𝑖𝑥𝑒𝑑 𝑎𝑠𝑠

9,187 $ 9,553 $ 8,777

922 1,153 1,266
9.96 8.29 6.93

2001 2002 2003

3,644 $ 3,225 $ 2,900

507 541 529 ■8(𝑬𝒒𝒖𝒊𝒕𝒚@𝑻𝒖𝒓𝒏𝒐𝒗𝒆𝒓)= (𝑇𝑜𝑡𝑎𝑙 𝑆𝑎𝑙𝑒𝑠)/(𝑆ℎ𝑎𝑟𝑒ℎ𝑜𝑙𝑑𝑒𝑟^′ 𝑠 𝑒𝑞𝑢𝑖𝑡
7.19 5.96 5.48

9,187 $ 9,553 $ 8,777

3,156 3,261 3,335
2.91 2.93 2.63
TY RATIOS

2001 2002 2003

1,389 $ 1,228 $ 1,154

3,644 3,225 2,900
38.12% 38.08% 39.79% ■8(𝑮𝒓𝒐𝒔𝒔 𝒑𝒓𝒐𝒇𝒊𝒕@𝑴𝒂𝒓𝒈𝒊𝒏)= (𝐺𝑟𝑜𝑠𝑠 𝑝𝑟𝑜𝑓𝑖𝑡)/𝑆𝑎𝑙𝑒𝑠

3,822 $ 3,672 $ 3,482

9,187 9,553 8,777
41.60% 38.44% 39.67%

2001 2002 2003

276 $ 140 $ 139

3,644 3,225 2,900
7.57% 4.34% 4.79% ■8(𝑶𝒑𝒆𝒓𝒂𝒕𝒊𝒏𝒈 𝒑𝒓𝒐𝒇𝒊𝒕@𝑴𝒂𝒓𝒈𝒊𝒏)= (𝑂𝑝𝑒𝑟𝑎𝑡𝑖𝑛𝑔 𝑝𝑟𝑜𝑓𝑖𝑡)/𝑆𝑎𝑙𝑒

1,360 $ 844 $ 837

9,187 9,553 8,777
14.80% 8.83% 9.54%

2001 2002 2003

136 $ 24 $ 11
3,644 3,225 2,900
3.73% 0.74% 0.38% ■8(𝑵𝒆𝒕@𝑴𝒂𝒓𝒈𝒊𝒏)= (𝑁𝑒𝑡 𝑖𝑛𝑐𝑜𝑚𝑒)/𝑆𝑎𝑙𝑒𝑠

796 $ 400 $ 451

9,187 9,553 8,777
8.66% 4.19% 5.14%

2001 2002 2003

276 $ 140 $ 139

1,756 1,740 1,564
0.16 0.08 0.09
■8(𝑶𝒑𝒆𝒓𝒂𝒕𝒊𝒏𝒈 𝒊𝒏𝒄𝒐𝒎𝒆@𝒓𝒆𝒕𝒖𝒓𝒏 𝒐𝒏 𝒊𝒏𝒗𝒆𝒔𝒕𝒎𝒆𝒏𝒕)= (𝑂𝑝𝑒𝑟𝑎𝑡𝑖𝑛𝑔 𝑖𝑛𝑐𝑜𝑚𝑒)/(

1,360 $ 844 $ 837

5,361 5,397 5,248
0.25 0.16 0.16

2001 2002 2003

136 $ 24 $ 11
1,756 1,740 1,564
0.08 0.01 0.01
■8(𝑹𝒆𝒕𝒖𝒓𝒏 𝒐𝒏@𝑻𝒐𝒕𝒂𝒍 𝒂𝒔𝒔𝒆𝒕𝒔)= (𝑁𝑒𝑡 𝑖𝑛𝑐𝑜𝑚𝑒)/(𝑇𝑜𝑡𝑎𝑙 𝑎𝑠𝑠𝑒𝑡𝑠)

796 $ 400 $ 451

5,361 5,397 5,248
0.15 0.07 0.09

2001 2002 2003

136 $ 24 $ 11
507 541 529
0.27 0.04 0.02
■8(𝑹𝒆𝒕𝒖𝒓𝒏 𝒐𝒏@𝑻𝒐𝒕𝒂𝒍 𝒆𝒒𝒖𝒊𝒕𝒚)= (𝑁𝑒𝑡 𝑖𝑛𝑐𝑜𝑚𝑒)/(𝑇𝑜𝑡𝑎𝑙 𝑒𝑞𝑢𝑖𝑡

796 $ 400 $ 451

3,156 3,261 3,335
0.25 0.12 0.14

2001 2002 2003

136 $ 24 $ 11
507 541 529
0.27 0.04 0.02
■8(𝑹𝒆𝒕𝒖𝒓𝒏 𝒐𝒏@𝑬𝒒𝒖𝒊𝒕𝒚)= (𝑁𝑒𝑡 𝑖𝑛𝑐𝑜𝑚𝑒)/(𝑆ℎ𝑎𝑟𝑒ℎ𝑜𝑙𝑑𝑒𝑟^′ 𝑠 𝑒𝑞𝑢𝑖

796 $ 400 $ 451

3,156 3,261 3,335
0.25 0.12 0.14
MULA

2001 2002 2003

𝑹𝑶𝑬= (𝑁𝑒𝑡 𝑖𝑛𝑐𝑜𝑚𝑒)/𝑆𝑎𝑙𝑒𝑠 𝑥 𝑆𝑎𝑙𝑒𝑠/(𝑇𝑜𝑡𝑎𝑙 𝑎𝑠𝑠𝑒𝑡𝑠) 𝑥 (𝑇𝑜𝑡𝑎𝑙 𝑎𝑠𝑠𝑒𝑡𝑠)/█(𝐴𝑣𝑒𝑟𝑎𝑔𝑒@𝑠ℎ𝑎𝑟𝑒ℎ

136 $ 24 $ 11
3,644 3,225 2,900
1,756 1,740 1,564
507 541 529
0.27 0.04 0.02

796 $ 400 $ 451

9,187 9,553 8,777
5,361 5,397 5,248
3,156 3,261 3,335
0.25 0.12 0.14
AS

𝑜𝑡𝑎𝑙 𝑆𝑎𝑙𝑒𝑠)/(𝑇𝑜𝑡𝑎𝑙 𝑎𝑠𝑠𝑒𝑡𝑠)

𝑡𝑎𝑙 𝑆𝑎𝑙𝑒𝑠)/(𝑁𝑒𝑡 𝑓𝑖𝑥𝑒𝑑 𝑎𝑠𝑠𝑒𝑡𝑠)

𝑠)/(𝑆ℎ𝑎𝑟𝑒ℎ𝑜𝑙𝑑𝑒𝑟^′ 𝑠 𝑒𝑞𝑢𝑖𝑡𝑦)
 (𝐺𝑟𝑜𝑠𝑠 𝑝𝑟𝑜𝑓𝑖𝑡)/𝑆𝑎𝑙𝑒𝑠

(𝑂𝑝𝑒𝑟𝑎𝑡𝑖𝑛𝑔 𝑝𝑟𝑜𝑓𝑖𝑡)/𝑆𝑎𝑙𝑒𝑠

𝑒𝑡 𝑖𝑛𝑐𝑜𝑚𝑒)/𝑆𝑎𝑙𝑒𝑠
= (𝑂𝑝𝑒𝑟𝑎𝑡𝑖𝑛𝑔 𝑖𝑛𝑐𝑜𝑚𝑒)/(𝑇𝑜𝑡𝑎𝑙 𝑎𝑠𝑠𝑒𝑡𝑠)

𝑡 𝑖𝑛𝑐𝑜𝑚𝑒)/(𝑇𝑜𝑡𝑎𝑙 𝑎𝑠𝑠𝑒𝑡𝑠)

𝑁𝑒𝑡 𝑖𝑛𝑐𝑜𝑚𝑒)/(𝑇𝑜𝑡𝑎𝑙 𝑒𝑞𝑢𝑖𝑡𝑦)

𝑒)/(𝑆ℎ𝑎𝑟𝑒ℎ𝑜𝑙𝑑𝑒𝑟^′ 𝑠 𝑒𝑞𝑢𝑖𝑡𝑦)
𝑠𝑠𝑒𝑡𝑠)/█(𝐴𝑣𝑒𝑟𝑎𝑔𝑒@𝑠ℎ𝑎𝑟𝑒ℎ𝑜𝑙𝑑𝑒𝑟^′ 𝑠@𝑒𝑞𝑢𝑖𝑡𝑦)
 RATIO ANALYSIS OF FINANCIAL STATEMENTS

RISK ANALYSIS

BUSINESS RISK

OPERATING LEVERAGE 1999 2000 2001

Blake International
% change in Operating income ― -27.20% 24.18%
% change in Sales ― -0.06% 4.68%
Operating leverage ― 473.38 5.16

Scott Corporation
% change in Operating income ― 41.91% 105.75%
% change in Sales ― 35.92% 92.96%
Operating leverage ― 1.17 1.14

FINANCIAL LEVERAGE 1999 2000 2001

Blake International
% change in Net income ― -15.76% -17.58%
% change in Operating income ― -27.20% -24.18%
Financial leverage ― 0.58 0.73

Scott Corporation
% change in Net income ― 38.25% 99.00%
% change in Operating income ― 41.91% 105.75%
Financial leverage ― 0.91 0.94

TOTAL LEVERAGE 1999 2000 2001

Blake International
% change in Net income ― 15.76% 17.58%
% change in sales ― 0.06% 4.68%
Total leverage ― 274.26 3.75

Scott Corporation
% change in Net income ― 38.25% 99.00%
% change in sales ― 35.92% 92.96%
Total leverage ― 1.06 1.06
 FINANCIAL RISK

DEBT RATIO 1999 2000 2001

Blake International
Total liabilities $ 717 $ 1,405 $ 1,249
Total assets 1,656 1,786 1,756
Debt ratio 0.43 0.79 0.71

Scott Corporation
Total liabilities $ 1,178 $ 1,520 $ 2,205
Total assets 3,143 3,952 5,361
Debt ratio 0.37 0.38 0.41

DEBT TO EQUITY RATIO 1999 2000 2001

Blake International
Total debt $ 255 $ 907 $ 760
Shareholder's equity 939 381 507
Debt to equity ratio 0.27 2.38 1.50

Scott Corporation
Total debt $ 43 $ 17 $ 298
Shareholder's equity 1,965 2,432 3,156
Debt to equity ratio 0.02 0.01 0.09

INTEREST COVERAGE 1999 2000 2001

Blake International
Net income $ 165 $ 139 $ 136
Interest expense 26 42 64
Interest coverage 6.35 3.31 2.13

Scott Corporation
Net income $ 400 $ 553 $ 796
Interest expense 24 40 55
Interest coverage 16.67 13.83 14.47
STATEMENTS FORMULAS

2002 2003

-61.54% -61.81%
-7.35% -16.69%
8.37 3.70■8(𝑶𝒑𝒆𝒓𝒂𝒕𝒊𝒏𝒈@𝒍𝒆𝒗𝒆𝒓𝒂𝒈𝒆)= (% 𝑐ℎ𝑎𝑛𝑔𝑒 𝑖𝑛 𝑂𝑝𝑒𝑟𝑎𝑡𝑖𝑛𝑔 𝑖𝑛𝑐𝑜𝑚𝑒)/(% 𝑐ℎ𝑎𝑛𝑔𝑒 𝑖𝑛 𝑆

27.69% 26.63%
100.65% 84.35%
0.28 0.32

2002 2003

-85.45% -93.33%
-61.54% -61.81%
■8(𝑭𝒊𝒏𝒂𝒏𝒄𝒊𝒂𝒍@𝒍𝒆𝒗𝒆𝒓𝒂𝒈𝒆)= (% 𝑐ℎ𝑎𝑛𝑔𝑒 𝑖𝑛 𝑁𝑒𝑡 𝑖𝑛𝑐𝑜𝑚𝑒)/(% 𝑐ℎ𝑎𝑛𝑔𝑒 𝑖𝑛 𝑂𝑝𝑒𝑟𝑎𝑡𝑖𝑛𝑔 𝑖𝑛
1.39 1.51

0.00% 12.75%
27.69% 26.63%
### 0.48

2002 2003

85.45% 93.33%
7.35% 16.69%
■8(𝑻𝒐𝒕𝒂𝒍@𝒍𝒆𝒗𝒆𝒓𝒂𝒈𝒆)= (% 𝑐ℎ𝑎𝑛𝑔𝑒 𝑖𝑛 𝑁𝑒𝑡 𝑖𝑛𝑐𝑜𝑚𝑒)/(% 𝑐ℎ𝑎𝑛𝑔𝑒 𝑖𝑛 𝑆𝑎𝑙𝑒𝑠)
11.62 5.59

0.00% 12.75%
100.65% 84.35%
### 0.15
 2002 2003

$ 1,199 $ 1,035
1,740 1,564
0.69 0.66 ■8(𝑫𝒆𝒃𝒕 @𝑹𝒂𝒕𝒊𝒐)= (𝑇𝑜𝑡𝑎𝑙 𝑎𝑠𝑠𝑒𝑡𝑠)/(𝑇𝑜𝑡𝑎𝑙 𝑙𝑖𝑎𝑏𝑖𝑙𝑖𝑡𝑖𝑒𝑠)

$ 2,136 $ 1,913
5,397 5,248
0.40 0.36

2002 2003

$ 641 $ 555
541 529
1.18 1.05 ■8(𝑫𝒆𝒃𝒕 𝒕𝒐 𝒆𝒒𝒖𝒊𝒕𝒚@𝒓𝒂𝒕𝒊𝒐)= (𝑇𝑜𝑡𝑎𝑙 𝑑𝑒𝑏𝑡)/(𝑆ℎ𝑎𝑟𝑒ℎ𝑜𝑙𝑑𝑒𝑟^′ 𝑠 𝑒𝑞𝑢𝑖𝑡𝑦)

$ 381 $ 387
3,261 3,335
0.12 0.12

2002 2003

$ 24 $ 11
61 50
0.39 0.22 ■8(𝑰𝒏𝒕𝒆𝒓𝒆𝒔𝒕@𝑪𝒐𝒗𝒆𝒓𝒂𝒈𝒆)= (𝑁𝑒𝑡 𝑖𝑛𝑐𝑜𝑚𝑒)/(𝐼𝑛𝑡𝑒𝑟𝑒𝑠𝑡 𝑒𝑥𝑝𝑒𝑛𝑠𝑒)

$ 400 $ 451
67 51
5.97 8.84
AS

𝑟𝑎𝑡𝑖𝑛𝑔 𝑖𝑛𝑐𝑜𝑚𝑒)/(% 𝑐ℎ𝑎𝑛𝑔𝑒 𝑖𝑛 𝑆𝑎𝑙𝑒𝑠)

𝑐𝑜𝑚𝑒)/(% 𝑐ℎ𝑎𝑛𝑔𝑒 𝑖𝑛 𝑂𝑝𝑒𝑟𝑎𝑡𝑖𝑛𝑔 𝑖𝑛𝑐𝑜𝑚𝑒)

𝑡 𝑖𝑛𝑐𝑜𝑚𝑒)/(% 𝑐ℎ𝑎𝑛𝑔𝑒 𝑖𝑛 𝑆𝑎𝑙𝑒𝑠)

𝑒𝑡𝑠)/(𝑇𝑜𝑡𝑎𝑙 𝑙𝑖𝑎𝑏𝑖𝑙𝑖𝑡𝑖𝑒𝑠)

𝑏𝑡)/(𝑆ℎ𝑎𝑟𝑒ℎ𝑜𝑙𝑑𝑒𝑟^′ 𝑠 𝑒𝑞𝑢𝑖𝑡𝑦)

𝑐𝑜𝑚𝑒)/(𝐼𝑛𝑡𝑒𝑟𝑒𝑠𝑡 𝑒𝑥𝑝𝑒𝑛𝑠𝑒)