Profit Plans Revenues Premium Private

Income States 2000 and 2001 (Private Brand strategy) (Thousands of Italian liras) Private Brand Strategy (2001)

52,800,000 52,800,000

Cost of goods Sales Variable 39,600,000

Fixed Total Cost of Sales Gross Margin R&D expenses Marketing expenses Selling expenses Administrative expenses Interest expenses Operating expenses Profit before Taxes Taxes (40%) Net profit

3,319,500 42,919,500 9,880,500 832,032.5 0 1,251,148.5 2,376,000 3,825,000 8,284,181 1,596,319 638,527.6 957,791.4

Cash flow 2001 (Private Brand strategy) (Thousands of Italian liras, Indirect Method) Net Profit Adjust for Depreciation 2,993,700 957,791.4

Decrease in Inventory Increase in Account receivable Net cash Flow

1,148,400 (10,273,133) (5,173,241.6)