. Exhibit 8 presents the full range of accounts as actually reported by the Body Shop in 2001. Please forecast all of the accounts individually for 2002 and present your result in a spreadsheet similar to Exhibit 7. Provide detailed interpretation of your spreadsheet by answering the following questions:

a. What is your assumption regarding sales growth? How did you derive it?

b. Based on your pro forma projections, how much additional financing will The Body Shop need during 2002?

c. What are the three of four most important assumptions or key drivers in your forecast? What is the effect on the financing need of varying each of these assumptions up or down from the base case (Sensitivity Analysis)?

YES USE OF SPREADSHEET IS REQUIRED.

AND ALSO NEED THE ANSWER OF THE QUESTIONS

The Body Shop International PLC 2001: An Introduction to Financial Modeling Finance bored the pants off me. I fell asleep more times than not. -Anita Roddick, founder, The Body Shop International Roddick, as self righteous as she is ambitious, professes to be unconcemed [with financial results]. "Our business is about two things: social change and action, and skin care," she snaps. "Social change and action come first. You money-conscious people just don't understand." Well maybe we don't, but we sure know this: Roddick is one hell of a promoter She and her husband, Gordon, own shares worth just under $300 million. Now that's social action One of our greatest frustrations at The Body Shop is that we're still judged by the media and the City by our profits, by the amount of product we sell, whereas we want and have always wanted sitive difference we make our actions in the larger world, by the po to be judged by Anita Roddick In the late 1990s, The Body Shop International PLC, previously one of the fastest growing manufacturer retailers in the world, ran aground. Although the had an annual revenue growth rate of 20% in the early to middle 1990s, by the late 1990s, revenue growth slowed to around 8%. New retailers of the naturally based skin- and hair-care products entered the market, bringing intense competition for The Body Anita Roddick, Body and Soul (London: Ebury Press, 1991), 105 "Jean Sherman Chatzky, "Changing the World," Forbes (2 March 1992): 87 Anita Roddick, Business as Unusual (London: Thorsons, 2000), 56 This case was prepared by Susan Shank and John Vaccaro under the direction of Robert F Bruner and Robert Conroy. It was written as a basis for class discussion rather than to illustrate effective or ineffective handling of an administrative situation. The financial support of the Batten Institute for case development is gratefully acknowledged. Copyright 2001 by the University of Virginia Darden School Foundation, Charlottesville, No VA. All rights reserved. To order copies. send an e-mail to spreadsheet, or transmitted in of this publication may be reproduced, stored in a retrieval system, used in a or otherwise-without the mechanical, photocopying, recording, any form or by any means-electronic, permission of the Darden School Foundation. 143