Cafes Monte Bianco Table

Profit Plans

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

Revenues Premium Private

9,934,848 46,177,560

52,800,000

56,112,408

52,800,000

30,640,167

39,600,000

2,593,700

3,319,500

Total Cost of Sales

33,233,867

42,919,500

Gross Margin

22,878,541

9,880,500

R&D expenses

3,328,130

832,032.5

Marketing expenses

4,155,980

0

Selling expenses

3,574,710

1,251,148.5

Administrative expenses

4,752,000

2,376,000

Interest expenses

3,825,000

3,825,000

Operating expenses

19,635,820

8,284,181

Profit before Taxes

3,242,721

1,596,319

Taxes (40%)

1,297,089

638,527.6

Net profit

1,945,632

957,791.4

Cost of goods Sales Variable

Fixed

Cash flow 2001 (Private Brand strategy) (Thousands of Italian liras, Indirect Method) Net Profit

957,791.4

Adjust for Depreciation

2,993,700

Decrease in Inventory Increase in Account receivable Net cash Flow

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