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 3131/12/200831/12/200931/12/201031/12/2011
(In millions except per share data)12 Months12 Months12 Months12 Months
Net operating revenues$31,944$30,990$35,119$46,542
Cost of goods sold11,37411,08812,69318,216
Gross profit20,57019,90222,42628,326
SG&A expenses11,77411,35813,15817,440
Other operating charges350 313819732
Operating income8,4468,2318,44910,154
Interest income (net)333 249317483
Interest expense438 355733417
Equity income-net(874)7811,025690
Other income (loss)-net39405,185529
Gains on issuances of stock by equity investees- – – –
EBT before cumulative effect of accounting change7,5068,94614,24311,439
Income taxes1,6322,0402,3842,805
Net income before cumulative effect of accounting change5,8746,90611,8598,634
Net income after cumulative effect of accounting change and other adjustments5,8076,82411,8098,572
Average shares outstanding2,3152,3152,3332,323
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 3131/12/200731/12/200831/12/200931/12/201031/12/2011
(In millions except per share data)12 Months12 Months12 Months12 Months12 Months
ASSETS
Cash & cash equivalents$4,093$4,701$7,021$8,517$12,803
ST investments and Marketable securities215278 2,1922,8201,232
Total cash & mktable sec4,3084,9799,21311,33714,035
Accounts receivable3,3173,0903,7584,4304,920
Inventories2,2202,1872,3542,6503,092
Prepaid expenses and other assets2,2601,9202,2263,1623,450
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 improvements8,4938,3269,56114,72714,939
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 & Trademarks4,25610,08810,40718,02118,649
Other Intangible Assets7,9632,4172,4218,8889,020
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 payable5,9196,0666,7498,10012,871
Current portion of long-term debt133465 511,2762,041
Accrued income taxes258252 264273362
Total current liabilities$13,225$12,988$13,721$18,508$24,283
Long-term debt3,2772,7815,05914,04113,656
Other liabilities3,1333,4013,5125,1085,706
Deferred Income Taxes1,890877 1,5804,2614,694
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
