Exhibit 8 The Body Shop Plc 2001: Historical Financial Statements (in GBP millions Fiscal Year Ended February 28 1999 (GBP) Forecast 1999 (% sales) 2000 (GBP) 2000 (% sales) 2001 (GBP) 2002-2004 2001 Assumptions (% sales) Explanation Average Forecast 2002 2004 Income Statement Turnover Cost of sales Gross profit 303.7 127.7 176.0 100.0 0.4 58.0 330.1 9% 130.9 199.2 100.0 0.4 60.3 13% 374.1 149.0 225.1 100.0 Growth % 0.4 % sales 60.2 11.0% 40.5% 13.0% 40.0% 422.7 169.1 253.6 477.7 191.1 286.6 539.8 Turnover 215.9 Cost of sales 323.9 Gross profit 49.9 52.3 % sales 51% 52.0% 219.8 248.4 166.2 0.0 50.3 0.0 1.5 3.0 Operating expenses: |-excluding exceptional costs |-exceptional costs 1 Restructuring costs2 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) 5.5 0.0 033326 0.8 0.0 195.7 11.2 1.0 4.4 12.8 3.5 9.3 2.7 1.5 28.8 10.4 18.4 6.0% Operating expenses: 280.7 -excluding exceptional cost -exceptional costs 1 Restructuring costs2 #REF! Net interest expense #REF! Profit before tax #REF! Tax expense #REF! Profit (loss) after tax 1.1 2.6 0.3 0.0 % debt 3.4 0.9 % PBT 2.5 8.7 3.2 #REF! #REF! #REF! #REF! #REF! #REF! #REF! #REF! 30.0% ' (1.5) 5.6 3.3 Ordinary dividends Profit (loss) retained 10.9 10.9 (15.5) 3.6 (5.1) 10.9 7.5 10.9 (1.6) 2.9 Constant (0.4) Net Income - Dividend 10.9 10.9 #REF! ' #REF! 10.9 Ordinary dividends #REF! Profit (loss) retained 2.3 Fiscal Year Ended February 28 1999 (GBP) 1999 sales) 2000 (GBP) 2000 (% sales) 2001 (GBP) 2001 sales) Balance Sheet (% (% Forecast 5.8 8.0% 13.7% Assets Cash Accounts receivable Inventorics Other current assets Net fixed assets Other asscts3 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 9.2 13.5 4.7 31.7 1.8 66.8 13.7 30.3 51.3 17.5 110.6 6.7 230.1 Average 3.7 Plug, min 10mm 8.1 % sales 9% 13.7 % sales 13% 4.7 % sales 4.5% 29.6 % sales 30% 1.8 % sales 1% 61.5 #REF! 33.8 57.9 19.1 127.1 0.0 #REF! #REF! 38.2 65.4 21.5 143.6 0.0 #REF! #REF! Cash 43.2 Accounts receivable 74.0 Inventorics 24.3 Other current assets 162.3 Net fixed assets 0.0 Other assets3 #REF! Total assets 0.0% 13.0 11.3 10.8 4.3 3.7 6.2 3.5 2.0% 3.1% 3.6 4% 4.7 0.1 Liabilities and equity Accounts payable Taxes payable Accruals Overdrafts Other current liabilities Long-term liabilities Other liabilities4 Shareholders' equity Total liabilities and equity 0.0 20.5 11.7 15.6 0.3 13.3 36.7 1.0 121.4 220.5 18.8 8.5 13.1 #REF! 22.1 61.2 21.6 21.3 9.6 14.8 #REF! 24.9 61.2 10.7 7.1 11.5 0.7 16.9 61.2 0.4 121.6 30.1 2.9 % sales 1.9 % sales 3.1 % sales 0.2 Plug 4.5 % sales 16.4 Fixed at 2001 level 0.1 % sales 32.5 Profit (loss) retained 61.5 0.0 7.1 9.2 0.6 37.6 661 5% 28.0 4.0 11.1 0.3 36.8 8 66. Liabilities and equity 24.0 Accounts payable 10.8 Taxes payable 16.7 Accruals #REF! Overdrafts 28.2 Other current liabilities 61.2 Long-lerm liabilities 0.5 Other liabilitics4 #REF! Shareholders' equity #REF! Total liabilities and equity 1.7 0% 0.10% 0.4 114.3 200.7 #REF! #REF! #REF! WREF! 2 Exceptional costs in 2001 included redundancy costs (4.6 million), costs of supply chain development (2.4 million) and impairment of fixed assets and goodwill (4.2 million). The exceptional costs of 4.5 million in 1999 were associated with closing unprofitable shops and an impairment review of the remaining shops in the USA Trial assets Trial liah tewity Trial plug Min cash balance Final Plug 237.9 268.8 #REF! #REF! #REF! #REF! 10.0 10.0 #REF! " HREF! 303.7 #REF! #REF! 10.0 #REF! Restructuring costs in 2001 and 2000 relate to the sale of manufacturing plants in Littlehampton, England, and to associated reorganization costs Restructuring costs in 1999 arose from the realignment of the management structure of the business in the US and the UK Other assets in 2001 and 2000 represented receivables relating to the sale of the company's Littlehampton manufacturing plant Other liabilities included mostly deferred taxes. 2002 | 2002 2003 2003 | 2004 | 2004 COGS/Sales Overdrafts Excess Cash Overdrafts Excess Cash Overdrafts Excess Cash 35% 0.0 34.2 0.0 43.3 0.0 55.6 38% 0.0 25.0 0.0 23.1 0.0 22.7 40% 0.0 18.8 10.00 9.2 10.01 42% 0.0 12.6 13.7 10.0 31.1 10.0 44% 3.6 10.0 27.1 10.0 53.0 10.01 45% - 6.7 10.0 33.9 10.0 64.00 10.0 48% 15.9 10.0 54.0 10.0 96.8 10.0 0.3 2000 8.7% CAGR 2001 13.3% 11.0% 4. Why are your findings relevant to a general manager like Roddick? What are the implications of these findings for her? What action(s) should she take based on your analysis? Exhibit 8 The Body Shop Plc 2001: Historical Financial Statements (in GBP millions Fiscal Year Ended February 28 1999 (GBP) Forecast 1999 (% sales) 2000 (GBP) 2000 (% sales) 2001 (GBP) 2002-2004 2001 Assumptions (% sales) Explanation Average Forecast 2002 2004 Income Statement Turnover Cost of sales Gross profit 303.7 127.7 176.0 100.0 0.4 58.0 330.1 9% 130.9 199.2 100.0 0.4 60.3 13% 374.1 149.0 225.1 100.0 Growth % 0.4 % sales 60.2 11.0% 40.5% 13.0% 40.0% 422.7 169.1 253.6 477.7 191.1 286.6 539.8 Turnover 215.9 Cost of sales 323.9 Gross profit 49.9 52.3 % sales 51% 52.0% 219.8 248.4 166.2 0.0 50.3 0.0 1.5 3.0 Operating expenses: |-excluding exceptional costs |-exceptional costs 1 Restructuring costs2 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) 5.5 0.0 033326 0.8 0.0 195.7 11.2 1.0 4.4 12.8 3.5 9.3 2.7 1.5 28.8 10.4 18.4 6.0% Operating expenses: 280.7 -excluding exceptional cost -exceptional costs 1 Restructuring costs2 #REF! Net interest expense #REF! Profit before tax #REF! Tax expense #REF! Profit (loss) after tax 1.1 2.6 0.3 0.0 % debt 3.4 0.9 % PBT 2.5 8.7 3.2 #REF! #REF! #REF! #REF! #REF! #REF! #REF! #REF! 30.0% ' (1.5) 5.6 3.3 Ordinary dividends Profit (loss) retained 10.9 10.9 (15.5) 3.6 (5.1) 10.9 7.5 10.9 (1.6) 2.9 Constant (0.4) Net Income - Dividend 10.9 10.9 #REF! ' #REF! 10.9 Ordinary dividends #REF! Profit (loss) retained 2.3 Fiscal Year Ended February 28 1999 (GBP) 1999 sales) 2000 (GBP) 2000 (% sales) 2001 (GBP) 2001 sales) Balance Sheet (% (% Forecast 5.8 8.0% 13.7% Assets Cash Accounts receivable Inventorics Other current assets Net fixed assets Other asscts3 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 9.2 13.5 4.7 31.7 1.8 66.8 13.7 30.3 51.3 17.5 110.6 6.7 230.1 Average 3.7 Plug, min 10mm 8.1 % sales 9% 13.7 % sales 13% 4.7 % sales 4.5% 29.6 % sales 30% 1.8 % sales 1% 61.5 #REF! 33.8 57.9 19.1 127.1 0.0 #REF! #REF! 38.2 65.4 21.5 143.6 0.0 #REF! #REF! Cash 43.2 Accounts receivable 74.0 Inventorics 24.3 Other current assets 162.3 Net fixed assets 0.0 Other assets3 #REF! Total assets 0.0% 13.0 11.3 10.8 4.3 3.7 6.2 3.5 2.0% 3.1% 3.6 4% 4.7 0.1 Liabilities and equity Accounts payable Taxes payable Accruals Overdrafts Other current liabilities Long-term liabilities Other liabilities4 Shareholders' equity Total liabilities and equity 0.0 20.5 11.7 15.6 0.3 13.3 36.7 1.0 121.4 220.5 18.8 8.5 13.1 #REF! 22.1 61.2 21.6 21.3 9.6 14.8 #REF! 24.9 61.2 10.7 7.1 11.5 0.7 16.9 61.2 0.4 121.6 30.1 2.9 % sales 1.9 % sales 3.1 % sales 0.2 Plug 4.5 % sales 16.4 Fixed at 2001 level 0.1 % sales 32.5 Profit (loss) retained 61.5 0.0 7.1 9.2 0.6 37.6 661 5% 28.0 4.0 11.1 0.3 36.8 8 66. Liabilities and equity 24.0 Accounts payable 10.8 Taxes payable 16.7 Accruals #REF! Overdrafts 28.2 Other current liabilities 61.2 Long-lerm liabilities 0.5 Other liabilitics4 #REF! Shareholders' equity #REF! Total liabilities and equity 1.7 0% 0.10% 0.4 114.3 200.7 #REF! #REF! #REF! WREF! 2 Exceptional costs in 2001 included redundancy costs (4.6 million), costs of supply chain development (2.4 million) and impairment of fixed assets and goodwill (4.2 million). The exceptional costs of 4.5 million in 1999 were associated with closing unprofitable shops and an impairment review of the remaining shops in the USA Trial assets Trial liah tewity Trial plug Min cash balance Final Plug 237.9 268.8 #REF! #REF! #REF! #REF! 10.0 10.0 #REF! " HREF! 303.7 #REF! #REF! 10.0 #REF! Restructuring costs in 2001 and 2000 relate to the sale of manufacturing plants in Littlehampton, England, and to associated reorganization costs Restructuring costs in 1999 arose from the realignment of the management structure of the business in the US and the UK Other assets in 2001 and 2000 represented receivables relating to the sale of the company's Littlehampton manufacturing plant Other liabilities included mostly deferred taxes. 2002 | 2002 2003 2003 | 2004 | 2004 COGS/Sales Overdrafts Excess Cash Overdrafts Excess Cash Overdrafts Excess Cash 35% 0.0 34.2 0.0 43.3 0.0 55.6 38% 0.0 25.0 0.0 23.1 0.0 22.7 40% 0.0 18.8 10.00 9.2 10.01 42% 0.0 12.6 13.7 10.0 31.1 10.0 44% 3.6 10.0 27.1 10.0 53.0 10.01 45% - 6.7 10.0 33.9 10.0 64.00 10.0 48% 15.9 10.0 54.0 10.0 96.8 10.0 0.3 2000 8.7% CAGR 2001 13.3% 11.0% 4. Why are your findings relevant to a general manager like Roddick? What are the implications of these findings for her? What action(s) should she take based on your analysis