Model Facts

This Spreadsheet supports INSTRUCTOR analysis of the case, "The Body Shop
International Plc: 2001" (Case 7)
Please note:
1) This is a working model. Assumptions / Inputs presented can be changed to
vary the results.

2) This model intentionally incorporates circular logic. To resolve this circularity,

please instruct Excel to iterate 20-30 times in recalculating the model. This is
achieved by clicking on Tools/Options/Calculation, and on the iteration button.
3) As long as default spreadsheet calculation is "automatic" the impact of
changing assumptions will be computed in real time. If calculation is set as
"manual" you should press the F9 function key to
recalculate results. To set numerical calculation settings to automatic look under
tools, options, calculations menu.

Copyright 2001 by the Trustees of the University of Virginia Darden School Foundation.
Revised March 7, 2006.

Page 1

Model Facts

Page 2

Exhibit TN1
The Body Shop Plc 2001:
Hypothetical Three-Year Forecast Worksheet, Drawing on Case Exhibit 8
Fiscal Year Ended February 28
1999
(GBP)

1999
(% sales)

2000
(GBP)

2000
(% sales)

Income Statement
Turnover
Cost of sales
Gross profit

303.7
127.7
176.0

100.0
42.0
58.0

330.1
130.9
199.2

100.0
39.7
60.3

Operating expenses
excluding exceptional costs
exceptional costs
Restructuring costs
Net interest expense
Profit before tax
Tax expense
Profit/(loss) after tax

151.4
4.5
16.6
0.1
3.4
8.0
(4.6)

49.9
1.5
5.5
0.0
1.1
2.6
(1.5)

166.2
0.0
2.7
1.5
28.8
10.4
18.4

50.3
0.0
0.8
0.5
8.7
3.2
5.6

Ordinary dividends
Profit/(loss) retained

10.9
(15.5)

3.6
(5.1)

10.9
7.5

3.3
2.3

Fiscal Year Ended February 28

Balance Sheet
Assets
Cash
Accounts receivable
Inventories
Other current assets
Net fixed assets
Other assets
Total assets

1999
(GBP)

34.0
27.8
38.6
12.5
87.8
0.0
200.7

1999
(% sales)

11.2
9.2
12.7
4.1
28.9
0.0
66.1

2000
(GBP)

19.2
30.3
44.7
15.6
104.7
6.0
220.5

2000
(% sales)

5.8
9.2
13.5
4.7
31.7
1.8
66.8

Liabilities and equity

Accounts payable
Taxes payable
Accruals
Overdrafts
Other current liabilities
Long-term liabilities
Other liabilities
Shareholders' equity
Total liabilities and equity

13.0
11.3
10.8
0.0
21.6
28.0
1.7
114.3
200.7

4.3
3.7
3.6
0.0
7.1
9.2
0.6
37.6
66.1

20.5
11.7
15.6
0.3
13.3
36.7
1.0
121.4
220.5

6.2
3.5
4.7
0.1
4.0
11.1
0.3
36.8
66.8

d February 28

Assumptions
2001
(GBP)

2001
(% sales)

374.1
149.0
225.1

100.0
39.8
60.2

195.7
11.2
1.0
4.4
12.8
3.5
9.3

52.3
3.0
0.3
1.2
3.4
0.9
2.5

10.9
(1.6)

2.9
(0.4)

20022004

Forecast

2002

2003

2004

2002

2003

2004

d February 28
2001
(GBP)

13.7
30.3
51.3
17.5
110.6
6.7
230.1

2001
(% sales)

3.7
8.1
13.7
4.7
29.6
1.8
61.5

10.7
7.1
11.5
0.7
16.9
61.2
0.4
121.6
230.1

2.9
1.9
3.1
0.2
4.5
16.4
0.1
32.5
61.5

Exhibit TN2

Exhibit TN1
The Body Shop International Plc 2001:
Hypothetical Three-Year Forecast,
Drawing on Case Exhibit 8
Fiscal Year Ended February 28
Income Statement
Turnover
Cost of sales
Gross profit
Operating expenses
excluding exceptional costs
exceptional costs
Restructuring costs
Net interest expense
Profit before tax (PBT)
Tax expense
Profit/(loss) after tax

1999
303.7 100.0%
127.7
42.0%
176.0
58.0%

2000
330.1 100.0%
130.9
39.7%
199.2
60.3%

151.4
4.5
16.6
0.1
3.4
8.0
(4.6)

49.9%
1.5%
5.5%
0.0%
1.1%
2.6%
-1.5%

166.2
0.0
2.7
1.5
28.8
10.4
18.4

50.3%
0.0%
0.8%
0.5%
8.7%
3.2%
5.6%

Ordinary dividends
Profit/(loss) retained

10.9
(15.5)

3.6%
-5.1%

10.9
7.5

3.3%
2.3%

Balance Sheet
Cash
Accounts receivable
Inventories
Other current assets
Net fixed assets
Other assets
Total assets

34.0
27.8
38.6
12.5
87.8
0.0
200.7

11.2%
9.2%
12.7%
4.1%
28.9%
0.0%
66.1%

19.2
30.3
44.7
15.6
104.7
6.0
220.5

5.8%
9.2%
13.5%
4.7%
31.7%
1.8%
66.8%

Accounts payable
Taxes payable
Accruals
Overdrafts
Other current liabilities
Long-term liabilities
Other liabilities
Shareholders' equity

13.0
11.3
10.8
0.0
21.6
28.0
1.7
114.3

4.3%
3.7%
3.6%
0.0%
7.1%
9.2%
0.6%
37.6%

20.5
11.7
15.6
0.3
13.3
36.7
1.0
121.4

6.2%
3.5%
4.7%
0.1%
4.0%
11.1%
0.3%
36.8%

Page 7

Exhibit TN2

Total liabs. & equity

200.7

Page 8

66.1%

220.5

66.8%

Exhibit TN2

d February 28

Assumptions

Forecast

2001
374.1 100.0%
149.0
39.8%
225.1
60.2%

20022004
Growth
13.0%
% sales
40.0%

2002
422.7
169.1
253.6

195.7
11.2
1.0
4.4
12.8
3.5
9.3

52.3%
3.0%
0.3%
1.2%
3.4%
0.9%
2.5%

% sales
% sales
% sales
% of debt

52.0%
0.0%
0.0%
6.0%

% of PBT

30.0%

219.8
0.0
0.0
3.4
30.4
9.1
21.3

10.9
(1.6)

2.9%
-0.4%

Constant

10.9

10.9
10.4

13.7
30.3
51.3
17.5
110.6
6.7
230.1

3.7%
8.1%
13.7%
4.7%
29.6%
1.8%
61.5%

Plug, min.10mm
% sales
8.0%
% sales
13.7%
% sales
4.7%
% sales
30.0%
% sales
1.8%

4.7
33.8
57.9
19.9
126.8
7.6
250.7

10.7
7.1
11.5
0.7
16.9
61.2
0.4
121.6

2.9%
1.9%
3.1%
0.2%
4.5%
16.4%
0.1%
32.5%

% sales
% sales
% sales
Plug
% sales
Fixed
% sales

16.9
8.5
14.8
0.0
16.9
61.2
0.4
132.0

4.0%
2.0%
3.5%
4.0%
0.1%

Page 9

2003

2004

Exhibit TN2

230.1

61.5%

250.7
Trial assets
Trial liabs. & equity
Trial plug
Min. cash blance
Plug

Page 10

246.0
250.7
(4.7)
10.0
5.3

Revenue Growth
COGS/Sales

13%
40%

COGS to Sales Ratio

Sensitivity Analysis of Overdrafts in 2004

According to Variations in Growth Rate and COGS Ratio

35%
36%
37%
38%
39%
40%
41%
42%
43%
44%
45%
46%
47%
48%

10%
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0

Growth Rate in Revenues

11%
12%
13%
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0

14%
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0

15%
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0

Note: bolded value is given in the "base case" of Exhibit TN2.