just fill in the yellow parts thank u

Date Fled: Feb 19,2020 Period End: Dec 31, 2019 EL LILLY AND COMPANY AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (Dollars in millions, shes in thousands) in the yellow shaded cells below, enter a zero if the item is Operating and enter the appropriate amount the item is Non Operating, Cash is already completed December 31, 2019 December 31, 2018 2019 Operating Non-Oper. 2013 Operating Non-Oper 7,320. 7 5 2 3375 $ 1010 45473 4,5939 1010 45673 4,5939 11829 9942 3.190.7 25389 3.190.7 25389 20367 00 Asum i ng Assets Current Assets Cash and cash equivalents (Note 77 Short-term investments (Note 7) Accounts receivable, net of allowances of $22.4 (2019) and $24.1 (2018) Other receivables Inventores ( Note 6) Prepaid expenses and other Ourrent assets of discontinued operations (Note 19) Tot current assets Investments (Note 7) Goodall (Note Other intangibles, net (Note 8) Deferred tax assets (Note 14) Property and equipment, net (Note 9) Operating lease assets (Note 10) Other noncurrent assets Noncurrent assets of discontinued operations (Note 19) Total Assets 1 182.9 3.0981 2,036.7 2.2291 20,5496 2.005.4 137095 19624 113721 1.9624 13,2289 2,005 4 6.6180 2.5725 78729 5321 2.3391 1080 2.513.7 7,996.1 6.6180 2.5726 7.8729 5321 2.339.1 106RO 2.613.7 701 00 1,824.9 5.4841 43.808.4 1.8249 6. 21 35 58775 39.286.1 S S 36 948 6 5 2337.5 73207 1.4993 $ 1.1022 S 14993 1.102.2 14053 9155 2011 0556 14053 9155 1.2073 9556 Liabilities and Equity Current Liabilines Short-term borrowings and current maturities of long-terms dett Note 11) counts payable Emplovee compensation Sales rebates and discounts Dividends payable Income taxes payable (Note 14) Other current abilities Current liabilities of discontinued operations (Note 19) Total current abilities 1506 2 1894 2,036.7 2,0367 00 Ampang 11.7752 11,8881 138179 9,196.4 13.8179 9.1954 3GB 2 2.0022 1,3576 Other Liabilities Long-term debt (Note 11) Noncurrent operating le b ites (Note 10) Accrued retirement benefits Note 15 Long-term income taxes payable (Note 14) Other noncurrent liabilities Deferred tax liabilities (Note 14) Noncurrent abilities of discontinued operations (Note 19) Total other lisbilities Commitments and Contingencies (Note 16) Eli Lilly and Company Shareholders' Equity (Notes 12 and 13) Common stock no par value Authorized Shares: 3,200.000 10143 2 1875 1,357.6 1,312.7 21875 24 811 21.1112 248118 21.1112 598 Period End: Dec 31, 2019 Date Filed: Feb 19, 2020 ELI LILLY AND COMPANY AND SUBSIDIARIES CONSOLIDATE STATEMENTS OF OPERATIONS (Dollars in millons, shares in thousands except per-share dara) Year Ended December 31, December 31, December 31, 2019 in the yellow-shaded ons below, enter a zero if the tem is Operating and enter the appropriate amount if the item is Non-Operating. Revenue is already completed. Calculate the Tax Shield in cell H24 make sure the sign is correct) 2017 Year Ended Dec 31, 2019 Operating Non-Oper. 22.319.5 500 Revenge 22 3195 $ 21,493 3 $ 19.9738 4,6817 5.051 2 4.7212 5.5950 6.2138 2396 575.6 5,975 1 1,9839 266.9 4.447.7 5,096.2 5.9824 1.1126 1331.6 4,7212 5,595.0 6.2138 239.6 575.6 173452 17,95BB 17.970.5 17.345.2 Operating costs and expenses Cost of sales Research and development Marketing, selling, and administrative Acquired in process research and development (Note 3) Asset impairment restructuring, and other special charges (Note 5) Total operating expenses: Other income) and expenses (Note 18) Interest expense Interest income Other (income) expense, nel Total other income) and expenses: Income before income taxes Income taxes (Note 14) Net income (loss) from continuing operations Net income loss) from discontinued operations (Note 19) Net income (loss) 4006 (804) (6118 2915 52659 8280 46379 3.680 5 8.3184 S 2425 (159.3) (228) (145.6 3,680.1 529.5 3,150 6 814 3,2320$ 225.0 (1664) (360.1) (301.5 2.3048 2,391.2 864) (1177) (204.1) 400.6 (80.4) (611.8) (291.6) 5.265 9 62.0 4,6379 3,6805 8,318.45 Tax Shield $ = Net Operating Profit After Tax Earnings (less) per share: Earnings (loss) from continuing operations basic Earings (loss) from discontinued operations - basic Eamings (los) per share basic Eamnings (loss) from continuing operations -diluted Earings (loss) from discontinued operations-diluted Eamings (loss) per share-diluted 4.98 3.95 8.93 3.07 0.07 3.14 $ (0.08) 10.11 (0.19) 100) (0.11) (0.19) 4.96 305 3.93 8.895 0.0B 3.13 $ Shares used in calculation of earnings (loss) per share Basic Diluted 931,059 935 684 1,027,721 1.033,667 1,052,023 1.052.023 2019 Reported period 2022 Forecast 2023 Forecast 2024 Forecast 2025 Forecast Where Forecast 2020 Forecast 1 7.00% 2021 Forecast 2 2.00% 5.00% 6.00% 5.00% 5.00% 2.00% 22,320 10.900W 10.900% 131791.3179 10.900 13179 10.900W 10.900% 1317913179 10 900 13179 10.500% 131791 10.900% 13179 1.920% 0.1700 20-Year Treasury Note Interest Rate on 12/31/2019 5-yr monthly per Yahoo Finance assumption based on 50-year stock market average Discounted Cash Flow Valuation Model all amounts are in Smillions Parsimonious Forecast Sales Growth Forecast Sales Revenue Net Operating Profit After Tax (NOPAT) Net Operating Assets (NOA) Net Operating Profit Margin INOPM) Net Operating Asset Turnover (NOAT) Weighted Average Cost of Capital Calculation Risk Free Return ) Market Beta (LLY Overall Market Premium Cost of Equity Capital Market Capitalization (LLY) = IV Interest Expense Average Interest-Bearing Debt IV Marginal Tax Rate Cost of Debt Capital Intrinsic Value of Firm - IV, Weighted Avg Cost of Capital (WACC) Discounted Cash Flow Valuation Model Increase in Net Operating Assets (NOA) FCFF (NOPAT Increase in NOA) Discount factor Present Value of horizon FCFF Cumulative PV of horizon FCFF Present Value of terminal FCFF Total Firm Value less: NNO INO Liabilities. NO Assets) less: Noncontrolling Interests Firm Equity Value 125,923 401 4,350 24.000% $131.43/shr x 958.1 million shares outstanding on 12/31/2019 from El Lilly 2019 annual report assumed to also be the market value of interest bearing debt assumed 21% federal rate average 3% state rote 2,309 2019 Balance Sheet O O from your calculation of NNO O EL from El Lilly 2019 income Statement Acet5401 Twitter Financial Forecast Worksheet 950.056 from Lilly 2019 annual report Shares Outstanding (millions) Stock Value per Share Price Sensitivity to WACC and Growth WACC 4.000% 3.000% 3.500% 4.500 Terminal Growth Rate $0.00 1.00% 1 SOK 2.00% 2 50% 100% Price Sensitivity to NOPM and NOAT NOAT 0.71791.01791.31791.617919175 $0.00 8.900% 9.900% 10.90% NOPM Twitter Financial Forecast Worksheet Reported Forecl ore 22 320 10 SON 13179 30 SOON 13179 30 SOON 13179 30 SOON 10 900 10 90 13179 13119 13179 10.90 13179 10.900 13179 1.520% 0.1700 6.000 10-Year T mo sury Note interest Rate on 12/31/2019 h oo Finance bodo so war stock market overge Residual Operating income Valuation Model Olomounts or ons Parimnious forecast Sales Growth Forecast Sales Revenue Net Operating Profit Ater Tax INOPAT) Net Operating Assets (NOA) Net Operating profit Margin INOPE Net Operating Asset Turnover (NOAT) Weighted Average Cost of Capital Calculation Risk Free Return ) Marbet Beta ILLY Overall Market Premium Cost of Equity Capital Market Capitation (LLYN Interest Expense Average interest-Bearing Debt IV Marginal Tax Rate Cost of Debt Capital intrinsic Value of Firm IV Weighted Avg Cost of Capital (WACC) ROPI Valuation Model ROPI (NOPATINOA, Discount factor Present value of horizon ROPI Cumulative PV of horizon ROPI Present Value of terminal ROPI TotalFirm Value less: NNO (NO Liabilities. NO Assets) less: Noncontrolling Interests Firm Equity Value Shares Outstanding millions) 125.923 401 4,350 24.000% $131. 981 ilin shores outstanding on 12/31/2019 2019 u port assumed to also be the market value of interest-bearing-debt med 215 federal rote average store rote 0 from your colors of NNO O E lly's 2019 Balance Sheet fror 2019 Income Statement 958.056 from Lilly 2019 annual report Twitter Financial Forecast Worksheet Stock Value per Share Price Sensitivity to WACC and Growth WACC 4.000K SO100 SOON Terminal Growth Rate 2.00 Price Sensitivity to NOPM and NOAT Price-to-Book Valuation Analysis LLY T ABT 2,699.10 3333333333 Equity assumed value Book value of equity weight for LLY market multiple --> Book value market multiple Equity intrinsic value Common shares outstanding millions) Equity intrinsic value per share Price-to-Equity Valuation Analysis Xin millions LLY ABT 463790 3333333333343 Income from Continuing Operations weight for LLY market multiple Income market multiple Equity intrinsic value Common shares outstanding millions) Equity intrinsic value per share 958 056 Price to Book Multiple MShares FYE 2019 Outstanding Stock Price come from Cont Ops (M) Market Cap Book City Total De M M M Income Multiple Ticker Company Total Debt to-fouity PC PE/Growth Trading Pt Forward SY R OP from the Finance 5831 AN 1314 123,917 2 5910 15.803 90 56 86153413415310880018439.00 1520 11 6 6200 191.176 2.894.93 58.173.60 22,649.00 Above Inc Alergan PLC AGN 160 11.95 329.00 11.40 1045.265.10 15 242,842.00 445. 303.31 BIB 1100 4 296.73 $5,488.5 13,343.20 6415 109893.28 $1,5580 5.954.80 46,733.00 333 SEBELSBEEREEE 15.119.00 MRK 653 964 Merck & Co Inc REGN 264.00 2.500.00 5,675.00 115.00 26100 482.00 100 145 87391515.08 59.47100 90 95 234.65100 25.907 DO 39.18 222 346.50 63,143.00 375.48 43.180.20 11.089.70 218 95 57.145.956 ,0852 132.3563,792.70 2,708.00 100 100 100 27.696.00 26.146.00 52,150 00 0 .00 0 .00 6.447.00 100 3842,115.50 931.17581 46.51 10161 82.53 0.00 0.09 238.01 100.00 Vertex Pharmaceuticals Zocesine 1.500.00 100 100 100 ELILILLY AND COMPANY AND SUBSIDIARIES Come and share Equity ULLY AND COMPANY AND SUBSIDIARIES Code 12 ELI LILLY & Co 10-K 02/19/2020 Consolidated Statements of Cash Flows Years Ended December 31 2019 2018 2017 $8,318.4 $3,2320 (52041) (3.680.5) (309.81 1.2326 1.609.0 326.8 279 5 1.983.9 3124 2396 348.7 1,567.3 (787.9 2813 1.1126 4415 4720 ELI LILLY AND COMPANY AND SUBSIDIARIES Dollars in millions) Cash Flows from Operating Activities Not income (loss) Adjustments to Reconcile Net Income (Loss) to Cash Flows from Operating Activities: Gain related to disposition of Elanco (Note 19 Gain on sale of antibiotic business in China (Note 3) Depreciation and amortization Change in deferred income taxes Stock-based compensation expense Acquired in process research and development (Note 3) Other non-cash operating activities, net Other changes in operating assets and liabilities, nel of acquisitions and divestitures: Receivables increase) decrease Inventories (increase) decrease Other assets (increase) decrease Income taxes payable increase (decrease) Accounts payable and other liabilities increase (decrease) Net Cash Provided by Operating Activities Cash Flows from Investing Activities Purchases of property and equipment Proceeds from sales and maturities of short-term investments Purchases of short-term investments Proceeds from sales of noncurrent investments Purchases of noncurrent investments Purchases of in-process research and development Cash paid for acquisitions, net of cash acquired (Note 3 and 19) Cash distributed to Elance upon disposition Cash received for sale of antibiotic business in China Other investing activities, net (996.7) 78 (1272) (2587) (6023) (2213) (4777) $4,836.6 (9800) (125.3) (2845) 55,524,5 (357.0) (253,9) (590.1) 3,4896 9163 $5,615,6 (1.033.91 136.6 (12.7) 609 B (247.5) (319.5) (6,917.) (374 ) 354.8 (247) (1.210.6) 2.5525 (1122) 3.509.5 (837.9) 1 8076) (1 0768) 4,8525 (3 389.7) 2.585.0 (4.6116) (1.086.8) (882.1) (1877) (175.1) ($8,082.9) $1,9060 (3.7836) (2.409.8) 995.4 6,5564 (2.866.4 (4,400.0) 12.192.1) 1.397.5 2.2320 (630.6) (2998) Net Cash Provided by (Used for) Investing Activities Cash Flows from Financing Activities Dividends paid Net change in short-term borrowings Proceeds from issuance of long-term debt Repayments of long-term debt Purchases of common stock Net proceeds from Elanco initial public offering (Note 19) Other financing activities, net Net Cash Provided by (Used for) Financing Activities Effect of exchange rate changes on cash and cash equivalents Net increase (decrease) in cash and cash equivalents Cash and cash equivalents al beginning of year includes $5775 (2019), 33244 (2018) and 32588 (2017) of discontinued operations) Cash and Cash Equivalents at End of Year (includes $6775 (2018) and 53244 (2017) of discontinued operations) 12.311.8) (2.197.9) 2.477.7 11.009.1) (4.150, 1,659.7 (372.8) (55.904.9) (53.5) $1,462.0 6,536.2 (2001) (52,324.5) 189.9) (55.660.71 7,998.2 (364.4) $142.6 120.5) $1.954.1 4,5821 $2,337,5 $7,998.2 $6,536.2 un 0 10 12/1/2019 11/1/2019 10/1/2019 open high close cose Volume en 11752 137.00 1152131435 71.290 01 11407 118.46 111 114.67 1016 11195 112.717106100 . 12019 2/1/2018 216.14 113 115.47 107. 105 15 132. 97 305 307.17 .7.100 WV/2019 4/1/2019 1170511953 1307113135 113.87 113.65 11704 1144 117,712.500 2219 0212777 116.5 125 29 17236 WU/2018 119 120 14 11110 115 116.61 10110 12/28 1854 19 34 305.57 11/1/2018 104 110110495 18.54 1484 1005200 / 301.57 185.510417 2012 VURDER 105311000 610031109 1995 D . 9.30 W1/2018 06 89.35 53000 12/1/2017 11/1/2017 10/1/2017 72.28 30,700 300 /1/2017 2/1/2017 83 15 S. 53 DIES 0.004314 41 76 89812975874,937 490 80.77 2.66 77.46 72,197.500 2 7 12 .28.400 76.35 11/2017 9.09 311 4/1/2017 413 62 79 206 1.414 000 000 2 M 1177121251200002251 2N12724552590 71.24 97.538.800 12/1/2016 229 11/1/2016 73.81 /2016 02 0 781 1/2016 VUOS 2/1/2016 36 12/05 19/2015 34 50 6/1/2015 11/2015 735 00051 1/1/2015 2/1/2015 1/1/2015 1/1/2014 11/1/2014 10/1/2014 9/1/2014 /1/2014 0 17 77 45 B27200 9. 73.47 79 15.10 65 66 588 6743 2 16 6101 63.59 631 7 265 63.77 1 70 171 1676.781 900 68.45 72.00 62.75 98.8 100 .CO 66036812 894 69,396.600 60.58 66335740 107,867.600 14 ABS 1187290 60.14 356 5 4.56 64,115,700 0.04094 7/1/2014 62 63 65.70 6/1/2014 59.75 63.38 51/2014 59 18 6 0.49 4/1/2014 59 13 61.15 11/2014 58.95 0.10 2/1/2014 5411 6 0.12 1/1/2014 50.97 55.79 12/1/2013 5030 538 11/1/2013 19 91 51 62 10/1/2013 50 4151 14 9/1/2013 51 77 5425 2/1/2013 841 56.50 7/1/2013 1935 53.98 6/9/2013 53.00 53.42 51/2013 5510 57 10 4/1/2013 96.62 8.40 113 2/1/2013 53 55 54 2013 1994 1 12/1/2012 49 21 50.76 11/1/2012 489 49.59 30/1/2012 47 49 51.99 9/1/2012 44.97 47 84 8/1/2012 44 12 45.45 7/1/2012 43.06 44.57 6/1/2012 40 67 42.91 5/1/2012 413241.82 4/1/2012 40.30 41.52 V1/2012 39.17 40 45 2/1/2012 39.82 40.11 1/1/2012 41.95 42.03 12/1/2011 3771 41.92 11/1/2011 36 78 39.04 60.94 58.50 57,81 5 7.35 56.81 2.29 50.52 48.88 49.27 47.53 5007 51.00 49.27 48.68 58.15 55.02 W 53 18 1 61.06 52.41 80,409,400 -0.01754 62.17 52.37 81.9 100 0047226 59 86 90 96 101.920 800 0012 59.10 0.31 111 837 100 0004078 .86 0.11 95.419.000 59 61 0 29 114 640 900 101684 54.01 45.57 135 541,200 DOS90 5 1.00 43.03 364 300 0.025570 5022 4195 169415 SOO O OO 49 82 416215432.000 01011 01 20 1 0 ODS 51.40 45 120100 0 97 53.11 3.97 100,532 200 19.12 40.56 106.250.300 216 3.62 130.223.500 DDRE 5.18 5.45 5 3200 t 2 - 9 m DOLEST 5 4.56 445 131.206.400 DONG 1 4 18 19 20 DO 2012 19.04 39.47 363,059,700 .63 29.14 220 200 300 0.02571 4741 38 15 116440900 0056 4491 35.7439216900 DDI 99 4.03 35 04 135 507,300 DOS 4291 14.15 112.670,100 40.95 32 21131 024 800 4139 32.55 148 507 500 40 27 31 67 10R 729.000 0039203 39.24 0.48 147 007 500 0012582 39.74 3037174411.200 0043292 41.56 32.28 168 685 000 0112420 37.85 2902185012100 DOIS B 47.46 471 2.10 41.59 39.93 40.34 3 9.16 38.56 38.10 38.93 37.30 35.46 3702 3752 391 3748 18 30 3 10/1/2011 9/1/2011 2/1/2011 7/1/2011 61/2011 2011 4/1/2011 V1/2011 2/1/2011 11/2011 12/1/2010 11/1/2010 10/1/2010 9/1/2010 8/1/2010 7/1/2010 6/1/2010 5/1/2010 4/1/2010 V1/2010 2/1/2010 1/1/2010 3521 456 343 35 17 33.97 35 26 36 68 14 11 35.84 33.43 3263 35 27 36 45 34 50 35 36 35.77 3398 35.69 3836 35.44 891 33.75 19.787 15 48 36 60 v 4 3 3 3745 35.42 3.46 35923356 35.61 3447 35.40 3 381 35.93 352 3808 3468 36 90 33.8) 37.92 3.56 36 20 32.52 4.98 32.27 35.80 32.02 36.9 34.57 36 82 34.23 35.75 3 3.63 37.92 34.34 37.16 28.49 162 DOR 600 0005139 3697 20.341 OSS SOO 000192 3751 2835 SR 636 100 D 10 25 11 5 600 090517 3751 2815 G O 02 4 4 2 1 1 701 2762 139 533 000 0317 15 17 252166 205 200 DORIS 456 25.43 165.925 300 34.77 25.59 166 851.100 0720 35.0 25.79 137 545.000 DOSSES 366 43 19440100 000170 35 20 25 55 141 542.000 3409 1653 2652100 126 RDD 1000 3359 2407192 0 200 056661 35.60 25 51 177261,200 0062687 3350 24.00 165,562,700 DO 32.79 21.17 10 411 400 0062119 1497 2471159.175 000 159.175.8000 034511 36.22 25.59 149.482,900 3434 23,92 128 OR 300 - 024432 35 20 2452 144 879 100 Date Fled: Feb 19,2020 Period End: Dec 31, 2019 EL LILLY AND COMPANY AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (Dollars in millions, shes in thousands) in the yellow shaded cells below, enter a zero if the item is Operating and enter the appropriate amount the item is Non Operating, Cash is already completed December 31, 2019 December 31, 2018 2019 Operating Non-Oper. 2013 Operating Non-Oper 7,320. 7 5 2 3375 $ 1010 45473 4,5939 1010 45673 4,5939 11829 9942 3.190.7 25389 3.190.7 25389 20367 00 Asum i ng Assets Current Assets Cash and cash equivalents (Note 77 Short-term investments (Note 7) Accounts receivable, net of allowances of $22.4 (2019) and $24.1 (2018) Other receivables Inventores ( Note 6) Prepaid expenses and other Ourrent assets of discontinued operations (Note 19) Tot current assets Investments (Note 7) Goodall (Note Other intangibles, net (Note 8) Deferred tax assets (Note 14) Property and equipment, net (Note 9) Operating lease assets (Note 10) Other noncurrent assets Noncurrent assets of discontinued operations (Note 19) Total Assets 1 182.9 3.0981 2,036.7 2.2291 20,5496 2.005.4 137095 19624 113721 1.9624 13,2289 2,005 4 6.6180 2.5725 78729 5321 2.3391 1080 2.513.7 7,996.1 6.6180 2.5726 7.8729 5321 2.339.1 106RO 2.613.7 701 00 1,824.9 5.4841 43.808.4 1.8249 6. 21 35 58775 39.286.1 S S 36 948 6 5 2337.5 73207 1.4993 $ 1.1022 S 14993 1.102.2 14053 9155 2011 0556 14053 9155 1.2073 9556 Liabilities and Equity Current Liabilines Short-term borrowings and current maturities of long-terms dett Note 11) counts payable Emplovee compensation Sales rebates and discounts Dividends payable Income taxes payable (Note 14) Other current abilities Current liabilities of discontinued operations (Note 19) Total current abilities 1506 2 1894 2,036.7 2,0367 00 Ampang 11.7752 11,8881 138179 9,196.4 13.8179 9.1954 3GB 2 2.0022 1,3576 Other Liabilities Long-term debt (Note 11) Noncurrent operating le b ites (Note 10) Accrued retirement benefits Note 15 Long-term income taxes payable (Note 14) Other noncurrent liabilities Deferred tax liabilities (Note 14) Noncurrent abilities of discontinued operations (Note 19) Total other lisbilities Commitments and Contingencies (Note 16) Eli Lilly and Company Shareholders' Equity (Notes 12 and 13) Common stock no par value Authorized Shares: 3,200.000 10143 2 1875 1,357.6 1,312.7 21875 24 811 21.1112 248118 21.1112 598 Period End: Dec 31, 2019 Date Filed: Feb 19, 2020 ELI LILLY AND COMPANY AND SUBSIDIARIES CONSOLIDATE STATEMENTS OF OPERATIONS (Dollars in millons, shares in thousands except per-share dara) Year Ended December 31, December 31, December 31, 2019 in the yellow-shaded ons below, enter a zero if the tem is Operating and enter the appropriate amount if the item is Non-Operating. Revenue is already completed. Calculate the Tax Shield in cell H24 make sure the sign is correct) 2017 Year Ended Dec 31, 2019 Operating Non-Oper. 22.319.5 500 Revenge 22 3195 $ 21,493 3 $ 19.9738 4,6817 5.051 2 4.7212 5.5950 6.2138 2396 575.6 5,975 1 1,9839 266.9 4.447.7 5,096.2 5.9824 1.1126 1331.6 4,7212 5,595.0 6.2138 239.6 575.6 173452 17,95BB 17.970.5 17.345.2 Operating costs and expenses Cost of sales Research and development Marketing, selling, and administrative Acquired in process research and development (Note 3) Asset impairment restructuring, and other special charges (Note 5) Total operating expenses: Other income) and expenses (Note 18) Interest expense Interest income Other (income) expense, nel Total other income) and expenses: Income before income taxes Income taxes (Note 14) Net income (loss) from continuing operations Net income loss) from discontinued operations (Note 19) Net income (loss) 4006 (804) (6118 2915 52659 8280 46379 3.680 5 8.3184 S 2425 (159.3) (228) (145.6 3,680.1 529.5 3,150 6 814 3,2320$ 225.0 (1664) (360.1) (301.5 2.3048 2,391.2 864) (1177) (204.1) 400.6 (80.4) (611.8) (291.6) 5.265 9 62.0 4,6379 3,6805 8,318.45 Tax Shield $ = Net Operating Profit After Tax Earnings (less) per share: Earnings (loss) from continuing operations basic Earings (loss) from discontinued operations - basic Eamings (los) per share basic Eamnings (loss) from continuing operations -diluted Earings (loss) from discontinued operations-diluted Eamings (loss) per share-diluted 4.98 3.95 8.93 3.07 0.07 3.14 $ (0.08) 10.11 (0.19) 100) (0.11) (0.19) 4.96 305 3.93 8.895 0.0B 3.13 $ Shares used in calculation of earnings (loss) per share Basic Diluted 931,059 935 684 1,027,721 1.033,667 1,052,023 1.052.023 2019 Reported period 2022 Forecast 2023 Forecast 2024 Forecast 2025 Forecast Where Forecast 2020 Forecast 1 7.00% 2021 Forecast 2 2.00% 5.00% 6.00% 5.00% 5.00% 2.00% 22,320 10.900W 10.900% 131791.3179 10.900 13179 10.900W 10.900% 1317913179 10 900 13179 10.500% 131791 10.900% 13179 1.920% 0.1700 20-Year Treasury Note Interest Rate on 12/31/2019 5-yr monthly per Yahoo Finance assumption based on 50-year stock market average Discounted Cash Flow Valuation Model all amounts are in Smillions Parsimonious Forecast Sales Growth Forecast Sales Revenue Net Operating Profit After Tax (NOPAT) Net Operating Assets (NOA) Net Operating Profit Margin INOPM) Net Operating Asset Turnover (NOAT) Weighted Average Cost of Capital Calculation Risk Free Return ) Market Beta (LLY Overall Market Premium Cost of Equity Capital Market Capitalization (LLY) = IV Interest Expense Average Interest-Bearing Debt IV Marginal Tax Rate Cost of Debt Capital Intrinsic Value of Firm - IV, Weighted Avg Cost of Capital (WACC) Discounted Cash Flow Valuation Model Increase in Net Operating Assets (NOA) FCFF (NOPAT Increase in NOA) Discount factor Present Value of horizon FCFF Cumulative PV of horizon FCFF Present Value of terminal FCFF Total Firm Value less: NNO INO Liabilities. NO Assets) less: Noncontrolling Interests Firm Equity Value 125,923 401 4,350 24.000% $131.43/shr x 958.1 million shares outstanding on 12/31/2019 from El Lilly 2019 annual report assumed to also be the market value of interest bearing debt assumed 21% federal rate average 3% state rote 2,309 2019 Balance Sheet O O from your calculation of NNO O EL from El Lilly 2019 income Statement Acet5401 Twitter Financial Forecast Worksheet 950.056 from Lilly 2019 annual report Shares Outstanding (millions) Stock Value per Share Price Sensitivity to WACC and Growth WACC 4.000% 3.000% 3.500% 4.500 Terminal Growth Rate $0.00 1.00% 1 SOK 2.00% 2 50% 100% Price Sensitivity to NOPM and NOAT NOAT 0.71791.01791.31791.617919175 $0.00 8.900% 9.900% 10.90% NOPM Twitter Financial Forecast Worksheet Reported Forecl ore 22 320 10 SON 13179 30 SOON 13179 30 SOON 13179 30 SOON 10 900 10 90 13179 13119 13179 10.90 13179 10.900 13179 1.520% 0.1700 6.000 10-Year T mo sury Note interest Rate on 12/31/2019 h oo Finance bodo so war stock market overge Residual Operating income Valuation Model Olomounts or ons Parimnious forecast Sales Growth Forecast Sales Revenue Net Operating Profit Ater Tax INOPAT) Net Operating Assets (NOA) Net Operating profit Margin INOPE Net Operating Asset Turnover (NOAT) Weighted Average Cost of Capital Calculation Risk Free Return ) Marbet Beta ILLY Overall Market Premium Cost of Equity Capital Market Capitation (LLYN Interest Expense Average interest-Bearing Debt IV Marginal Tax Rate Cost of Debt Capital intrinsic Value of Firm IV Weighted Avg Cost of Capital (WACC) ROPI Valuation Model ROPI (NOPATINOA, Discount factor Present value of horizon ROPI Cumulative PV of horizon ROPI Present Value of terminal ROPI TotalFirm Value less: NNO (NO Liabilities. NO Assets) less: Noncontrolling Interests Firm Equity Value Shares Outstanding millions) 125.923 401 4,350 24.000% $131. 981 ilin shores outstanding on 12/31/2019 2019 u port assumed to also be the market value of interest-bearing-debt med 215 federal rote average store rote 0 from your colors of NNO O E lly's 2019 Balance Sheet fror 2019 Income Statement 958.056 from Lilly 2019 annual report Twitter Financial Forecast Worksheet Stock Value per Share Price Sensitivity to WACC and Growth WACC 4.000K SO100 SOON Terminal Growth Rate 2.00 Price Sensitivity to NOPM and NOAT Price-to-Book Valuation Analysis LLY T ABT 2,699.10 3333333333 Equity assumed value Book value of equity weight for LLY market multiple --> Book value market multiple Equity intrinsic value Common shares outstanding millions) Equity intrinsic value per share Price-to-Equity Valuation Analysis Xin millions LLY ABT 463790 3333333333343 Income from Continuing Operations weight for LLY market multiple Income market multiple Equity intrinsic value Common shares outstanding millions) Equity intrinsic value per share 958 056 Price to Book Multiple MShares FYE 2019 Outstanding Stock Price come from Cont Ops (M) Market Cap Book City Total De M M M Income Multiple Ticker Company Total Debt to-fouity PC PE/Growth Trading Pt Forward SY R OP from the Finance 5831 AN 1314 123,917 2 5910 15.803 90 56 86153413415310880018439.00 1520 11 6 6200 191.176 2.894.93 58.173.60 22,649.00 Above Inc Alergan PLC AGN 160 11.95 329.00 11.40 1045.265.10 15 242,842.00 445. 303.31 BIB 1100 4 296.73 $5,488.5 13,343.20 6415 109893.28 $1,5580 5.954.80 46,733.00 333 SEBELSBEEREEE 15.119.00 MRK 653 964 Merck & Co Inc REGN 264.00 2.500.00 5,675.00 115.00 26100 482.00 100 145 87391515.08 59.47100 90 95 234.65100 25.907 DO 39.18 222 346.50 63,143.00 375.48 43.180.20 11.089.70 218 95 57.145.956 ,0852 132.3563,792.70 2,708.00 100 100 100 27.696.00 26.146.00 52,150 00 0 .00 0 .00 6.447.00 100 3842,115.50 931.17581 46.51 10161 82.53 0.00 0.09 238.01 100.00 Vertex Pharmaceuticals Zocesine 1.500.00 100 100 100 Date Fled: Feb 19,2020 Period End: Dec 31, 2019 EL LILLY AND COMPANY AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (Dollars in millions, shes in thousands) in the yellow shaded cells below, enter a zero if the item is Operating and enter the appropriate amount the item is Non Operating, Cash is already completed December 31, 2019 December 31, 2018 2019 Operating Non-Oper. 2013 Operating Non-Oper 7,320. 7 5 2 3375 $ 1010 45473 4,5939 1010 45673 4,5939 11829 9942 3.190.7 25389 3.190.7 25389 20367 00 Asum i ng Assets Current Assets Cash and cash equivalents (Note 77 Short-term investments (Note 7) Accounts receivable, net of allowances of $22.4 (2019) and $24.1 (2018) Other receivables Inventores ( Note 6) Prepaid expenses and other Ourrent assets of discontinued operations (Note 19) Tot current assets Investments (Note 7) Goodall (Note Other intangibles, net (Note 8) Deferred tax assets (Note 14) Property and equipment, net (Note 9) Operating lease assets (Note 10) Other noncurrent assets Noncurrent assets of discontinued operations (Note 19) Total Assets 1 182.9 3.0981 2,036.7 2.2291 20,5496 2.005.4 137095 19624 113721 1.9624 13,2289 2,005 4 6.6180 2.5725 78729 5321 2.3391 1080 2.513.7 7,996.1 6.6180 2.5726 7.8729 5321 2.339.1 106RO 2.613.7 701 00 1,824.9 5.4841 43.808.4 1.8249 6. 21 35 58775 39.286.1 S S 36 948 6 5 2337.5 73207 1.4993 $ 1.1022 S 14993 1.102.2 14053 9155 2011 0556 14053 9155 1.2073 9556 Liabilities and Equity Current Liabilines Short-term borrowings and current maturities of long-terms dett Note 11) counts payable Emplovee compensation Sales rebates and discounts Dividends payable Income taxes payable (Note 14) Other current abilities Current liabilities of discontinued operations (Note 19) Total current abilities 1506 2 1894 2,036.7 2,0367 00 Ampang 11.7752 11,8881 138179 9,196.4 13.8179 9.1954 3GB 2 2.0022 1,3576 Other Liabilities Long-term debt (Note 11) Noncurrent operating le b ites (Note 10) Accrued retirement benefits Note 15 Long-term income taxes payable (Note 14) Other noncurrent liabilities Deferred tax liabilities (Note 14) Noncurrent abilities of discontinued operations (Note 19) Total other lisbilities Commitments and Contingencies (Note 16) Eli Lilly and Company Shareholders' Equity (Notes 12 and 13) Common stock no par value Authorized Shares: 3,200.000 10143 2 1875 1,357.6 1,312.7 21875 24 811 21.1112 248118 21.1112 598 Period End: Dec 31, 2019 Date Filed: Feb 19, 2020 ELI LILLY AND COMPANY AND SUBSIDIARIES CONSOLIDATE STATEMENTS OF OPERATIONS (Dollars in millons, shares in thousands except per-share dara) Year Ended December 31, December 31, December 31, 2019 in the yellow-shaded ons below, enter a zero if the tem is Operating and enter the appropriate amount if the item is Non-Operating. Revenue is already completed. Calculate the Tax Shield in cell H24 make sure the sign is correct) 2017 Year Ended Dec 31, 2019 Operating Non-Oper. 22.319.5 500 Revenge 22 3195 $ 21,493 3 $ 19.9738 4,6817 5.051 2 4.7212 5.5950 6.2138 2396 575.6 5,975 1 1,9839 266.9 4.447.7 5,096.2 5.9824 1.1126 1331.6 4,7212 5,595.0 6.2138 239.6 575.6 173452 17,95BB 17.970.5 17.345.2 Operating costs and expenses Cost of sales Research and development Marketing, selling, and administrative Acquired in process research and development (Note 3) Asset impairment restructuring, and other special charges (Note 5) Total operating expenses: Other income) and expenses (Note 18) Interest expense Interest income Other (income) expense, nel Total other income) and expenses: Income before income taxes Income taxes (Note 14) Net income (loss) from continuing operations Net income loss) from discontinued operations (Note 19) Net income (loss) 4006 (804) (6118 2915 52659 8280 46379 3.680 5 8.3184 S 2425 (159.3) (228) (145.6 3,680.1 529.5 3,150 6 814 3,2320$ 225.0 (1664) (360.1) (301.5 2.3048 2,391.2 864) (1177) (204.1) 400.6 (80.4) (611.8) (291.6) 5.265 9 62.0 4,6379 3,6805 8,318.45 Tax Shield $ = Net Operating Profit After Tax Earnings (less) per share: Earnings (loss) from continuing operations basic Earings (loss) from discontinued operations - basic Eamings (los) per share basic Eamnings (loss) from continuing operations -diluted Earings (loss) from discontinued operations-diluted Eamings (loss) per share-diluted 4.98 3.95 8.93 3.07 0.07 3.14 $ (0.08) 10.11 (0.19) 100) (0.11) (0.19) 4.96 305 3.93 8.895 0.0B 3.13 $ Shares used in calculation of earnings (loss) per share Basic Diluted 931,059 935 684 1,027,721 1.033,667 1,052,023 1.052.023 2019 Reported period 2022 Forecast 2023 Forecast 2024 Forecast 2025 Forecast Where Forecast 2020 Forecast 1 7.00% 2021 Forecast 2 2.00% 5.00% 6.00% 5.00% 5.00% 2.00% 22,320 10.900W 10.900% 131791.3179 10.900 13179 10.900W 10.900% 1317913179 10 900 13179 10.500% 131791 10.900% 13179 1.920% 0.1700 20-Year Treasury Note Interest Rate on 12/31/2019 5-yr monthly per Yahoo Finance assumption based on 50-year stock market average Discounted Cash Flow Valuation Model all amounts are in Smillions Parsimonious Forecast Sales Growth Forecast Sales Revenue Net Operating Profit After Tax (NOPAT) Net Operating Assets (NOA) Net Operating Profit Margin INOPM) Net Operating Asset Turnover (NOAT) Weighted Average Cost of Capital Calculation Risk Free Return ) Market Beta (LLY Overall Market Premium Cost of Equity Capital Market Capitalization (LLY) = IV Interest Expense Average Interest-Bearing Debt IV Marginal Tax Rate Cost of Debt Capital Intrinsic Value of Firm - IV, Weighted Avg Cost of Capital (WACC) Discounted Cash Flow Valuation Model Increase in Net Operating Assets (NOA) FCFF (NOPAT Increase in NOA) Discount factor Present Value of horizon FCFF Cumulative PV of horizon FCFF Present Value of terminal FCFF Total Firm Value less: NNO INO Liabilities. NO Assets) less: Noncontrolling Interests Firm Equity Value 125,923 401 4,350 24.000% $131.43/shr x 958.1 million shares outstanding on 12/31/2019 from El Lilly 2019 annual report assumed to also be the market value of interest bearing debt assumed 21% federal rate average 3% state rote 2,309 2019 Balance Sheet O O from your calculation of NNO O EL from El Lilly 2019 income Statement Acet5401 Twitter Financial Forecast Worksheet 950.056 from Lilly 2019 annual report Shares Outstanding (millions) Stock Value per Share Price Sensitivity to WACC and Growth WACC 4.000% 3.000% 3.500% 4.500 Terminal Growth Rate $0.00 1.00% 1 SOK 2.00% 2 50% 100% Price Sensitivity to NOPM and NOAT NOAT 0.71791.01791.31791.617919175 $0.00 8.900% 9.900% 10.90% NOPM Twitter Financial Forecast Worksheet Reported Forecl ore 22 320 10 SON 13179 30 SOON 13179 30 SOON 13179 30 SOON 10 900 10 90 13179 13119 13179 10.90 13179 10.900 13179 1.520% 0.1700 6.000 10-Year T mo sury Note interest Rate on 12/31/2019 h oo Finance bodo so war stock market overge Residual Operating income Valuation Model Olomounts or ons Parimnious forecast Sales Growth Forecast Sales Revenue Net Operating Profit Ater Tax INOPAT) Net Operating Assets (NOA) Net Operating profit Margin INOPE Net Operating Asset Turnover (NOAT) Weighted Average Cost of Capital Calculation Risk Free Return ) Marbet Beta ILLY Overall Market Premium Cost of Equity Capital Market Capitation (LLYN Interest Expense Average interest-Bearing Debt IV Marginal Tax Rate Cost of Debt Capital intrinsic Value of Firm IV Weighted Avg Cost of Capital (WACC) ROPI Valuation Model ROPI (NOPATINOA, Discount factor Present value of horizon ROPI Cumulative PV of horizon ROPI Present Value of terminal ROPI TotalFirm Value less: NNO (NO Liabilities. NO Assets) less: Noncontrolling Interests Firm Equity Value Shares Outstanding millions) 125.923 401 4,350 24.000% $131. 981 ilin shores outstanding on 12/31/2019 2019 u port assumed to also be the market value of interest-bearing-debt med 215 federal rote average store rote 0 from your colors of NNO O E lly's 2019 Balance Sheet fror 2019 Income Statement 958.056 from Lilly 2019 annual report Twitter Financial Forecast Worksheet Stock Value per Share Price Sensitivity to WACC and Growth WACC 4.000K SO100 SOON Terminal Growth Rate 2.00 Price Sensitivity to NOPM and NOAT Price-to-Book Valuation Analysis LLY T ABT 2,699.10 3333333333 Equity assumed value Book value of equity weight for LLY market multiple --> Book value market multiple Equity intrinsic value Common shares outstanding millions) Equity intrinsic value per share Price-to-Equity Valuation Analysis Xin millions LLY ABT 463790 3333333333343 Income from Continuing Operations weight for LLY market multiple Income market multiple Equity intrinsic value Common shares outstanding millions) Equity intrinsic value per share 958 056 Price to Book Multiple MShares FYE 2019 Outstanding Stock Price come from Cont Ops (M) Market Cap Book City Total De M M M Income Multiple Ticker Company Total Debt to-fouity PC PE/Growth Trading Pt Forward SY R OP from the Finance 5831 AN 1314 123,917 2 5910 15.803 90 56 86153413415310880018439.00 1520 11 6 6200 191.176 2.894.93 58.173.60 22,649.00 Above Inc Alergan PLC AGN 160 11.95 329.00 11.40 1045.265.10 15 242,842.00 445. 303.31 BIB 1100 4 296.73 $5,488.5 13,343.20 6415 109893.28 $1,5580 5.954.80 46,733.00 333 SEBELSBEEREEE 15.119.00 MRK 653 964 Merck & Co Inc REGN 264.00 2.500.00 5,675.00 115.00 26100 482.00 100 145 87391515.08 59.47100 90 95 234.65100 25.907 DO 39.18 222 346.50 63,143.00 375.48 43.180.20 11.089.70 218 95 57.145.956 ,0852 132.3563,792.70 2,708.00 100 100 100 27.696.00 26.146.00 52,150 00 0 .00 0 .00 6.447.00 100 3842,115.50 931.17581 46.51 10161 82.53 0.00 0.09 238.01 100.00 Vertex Pharmaceuticals Zocesine 1.500.00 100 100 100 ELILILLY AND COMPANY AND SUBSIDIARIES Come and share Equity ULLY AND COMPANY AND SUBSIDIARIES Code 12 ELI LILLY & Co 10-K 02/19/2020 Consolidated Statements of Cash Flows Years Ended December 31 2019 2018 2017 $8,318.4 $3,2320 (52041) (3.680.5) (309.81 1.2326 1.609.0 326.8 279 5 1.983.9 3124 2396 348.7 1,567.3 (787.9 2813 1.1126 4415 4720 ELI LILLY AND COMPANY AND SUBSIDIARIES Dollars in millions) Cash Flows from Operating Activities Not income (loss) Adjustments to Reconcile Net Income (Loss) to Cash Flows from Operating Activities: Gain related to disposition of Elanco (Note 19 Gain on sale of antibiotic business in China (Note 3) Depreciation and amortization Change in deferred income taxes Stock-based compensation expense Acquired in process research and development (Note 3) Other non-cash operating activities, net Other changes in operating assets and liabilities, nel of acquisitions and divestitures: Receivables increase) decrease Inventories (increase) decrease Other assets (increase) decrease Income taxes payable increase (decrease) Accounts payable and other liabilities increase (decrease) Net Cash Provided by Operating Activities Cash Flows from Investing Activities Purchases of property and equipment Proceeds from sales and maturities of short-term investments Purchases of short-term investments Proceeds from sales of noncurrent investments Purchases of noncurrent investments Purchases of in-process research and development Cash paid for acquisitions, net of cash acquired (Note 3 and 19) Cash distributed to Elance upon disposition Cash received for sale of antibiotic business in China Other investing activities, net (996.7) 78 (1272) (2587) (6023) (2213) (4777) $4,836.6 (9800) (125.3) (2845) 55,524,5 (357.0) (253,9) (590.1) 3,4896 9163 $5,615,6 (1.033.91 136.6 (12.7) 609 B (247.5) (319.5) (6,917.) (374 ) 354.8 (247) (1.210.6) 2.5525 (1122) 3.509.5 (837.9) 1 8076) (1 0768) 4,8525 (3 389.7) 2.585.0 (4.6116) (1.086.8) (882.1) (1877) (175.1) ($8,082.9) $1,9060 (3.7836) (2.409.8) 995.4 6,5564 (2.866.4 (4,400.0) 12.192.1) 1.397.5 2.2320 (630.6) (2998) Net Cash Provided by (Used for) Investing Activities Cash Flows from Financing Activities Dividends paid Net change in short-term borrowings Proceeds from issuance of long-term debt Repayments of long-term debt Purchases of common stock Net proceeds from Elanco initial public offering (Note 19) Other financing activities, net Net Cash Provided by (Used for) Financing Activities Effect of exchange rate changes on cash and cash equivalents Net increase (decrease) in cash and cash equivalents Cash and cash equivalents al beginning of year includes $5775 (2019), 33244 (2018) and 32588 (2017) of discontinued operations) Cash and Cash Equivalents at End of Year (includes $6775 (2018) and 53244 (2017) of discontinued operations) 12.311.8) (2.197.9) 2.477.7 11.009.1) (4.150, 1,659.7 (372.8) (55.904.9) (53.5) $1,462.0 6,536.2 (2001) (52,324.5) 189.9) (55.660.71 7,998.2 (364.4) $142.6 120.5) $1.954.1 4,5821 $2,337,5 $7,998.2 $6,536.2 un 0 10 12/1/2019 11/1/2019 10/1/2019 open high close cose Volume en 11752 137.00 1152131435 71.290 01 11407 118.46 111 114.67 1016 11195 112.717106100 . 12019 2/1/2018 216.14 113 115.47 107. 105 15 132. 97 305 307.17 .7.100 WV/2019 4/1/2019 1170511953 1307113135 113.87 113.65 11704 1144 117,712.500 2219 0212777 116.5 125 29 17236 WU/2018 119 120 14 11110 115 116.61 10110 12/28 1854 19 34 305.57 11/1/2018 104 110110495 18.54 1484 1005200 / 301.57 185.510417 2012 VURDER 105311000 610031109 1995 D . 9.30 W1/2018 06 89.35 53000 12/1/2017 11/1/2017 10/1/2017 72.28 30,700 300 /1/2017 2/1/2017 83 15 S. 53 DIES 0.004314 41 76 89812975874,937 490 80.77 2.66 77.46 72,197.500 2 7 12 .28.400 76.35 11/2017 9.09 311 4/1/2017 413 62 79 206 1.414 000 000 2 M 1177121251200002251 2N12724552590 71.24 97.538.800 12/1/2016 229 11/1/2016 73.81 /2016 02 0 781 1/2016 VUOS 2/1/2016 36 12/05 19/2015 34 50 6/1/2015 11/2015 735 00051 1/1/2015 2/1/2015 1/1/2015 1/1/2014 11/1/2014 10/1/2014 9/1/2014 /1/2014 0 17 77 45 B27200 9. 73.47 79 15.10 65 66 588 6743 2 16 6101 63.59 631 7 265 63.77 1 70 171 1676.781 900 68.45 72.00 62.75 98.8 100 .CO 66036812 894 69,396.600 60.58 66335740 107,867.600 14 ABS 1187290 60.14 356 5 4.56 64,115,700 0.04094 7/1/2014 62 63 65.70 6/1/2014 59.75 63.38 51/2014 59 18 6 0.49 4/1/2014 59 13 61.15 11/2014 58.95 0.10 2/1/2014 5411 6 0.12 1/1/2014 50.97 55.79 12/1/2013 5030 538 11/1/2013 19 91 51 62 10/1/2013 50 4151 14 9/1/2013 51 77 5425 2/1/2013 841 56.50 7/1/2013 1935 53.98 6/9/2013 53.00 53.42 51/2013 5510 57 10 4/1/2013 96.62 8.40 113 2/1/2013 53 55 54 2013 1994 1 12/1/2012 49 21 50.76 11/1/2012 489 49.59 30/1/2012 47 49 51.99 9/1/2012 44.97 47 84 8/1/2012 44 12 45.45 7/1/2012 43.06 44.57 6/1/2012 40 67 42.91 5/1/2012 413241.82 4/1/2012 40.30 41.52 V1/2012 39.17 40 45 2/1/2012 39.82 40.11 1/1/2012 41.95 42.03 12/1/2011 3771 41.92 11/1/2011 36 78 39.04 60.94 58.50 57,81 5 7.35 56.81 2.29 50.52 48.88 49.27 47.53 5007 51.00 49.27 48.68 58.15 55.02 W 53 18 1 61.06 52.41 80,409,400 -0.01754 62.17 52.37 81.9 100 0047226 59 86 90 96 101.920 800 0012 59.10 0.31 111 837 100 0004078 .86 0.11 95.419.000 59 61 0 29 114 640 900 101684 54.01 45.57 135 541,200 DOS90 5 1.00 43.03 364 300 0.025570 5022 4195 169415 SOO O OO 49 82 416215432.000 01011 01 20 1 0 ODS 51.40 45 120100 0 97 53.11 3.97 100,532 200 19.12 40.56 106.250.300 216 3.62 130.223.500 DDRE 5.18 5.45 5 3200 t 2 - 9 m DOLEST 5 4.56 445 131.206.400 DONG 1 4 18 19 20 DO 2012 19.04 39.47 363,059,700 .63 29.14 220 200 300 0.02571 4741 38 15 116440900 0056 4491 35.7439216900 DDI 99 4.03 35 04 135 507,300 DOS 4291 14.15 112.670,100 40.95 32 21131 024 800 4139 32.55 148 507 500 40 27 31 67 10R 729.000 0039203 39.24 0.48 147 007 500 0012582 39.74 3037174411.200 0043292 41.56 32.28 168 685 000 0112420 37.85 2902185012100 DOIS B 47.46 471 2.10 41.59 39.93 40.34 3 9.16 38.56 38.10 38.93 37.30 35.46 3702 3752 391 3748 18 30 3 10/1/2011 9/1/2011 2/1/2011 7/1/2011 61/2011 2011 4/1/2011 V1/2011 2/1/2011 11/2011 12/1/2010 11/1/2010 10/1/2010 9/1/2010 8/1/2010 7/1/2010 6/1/2010 5/1/2010 4/1/2010 V1/2010 2/1/2010 1/1/2010 3521 456 343 35 17 33.97 35 26 36 68 14 11 35.84 33.43 3263 35 27 36 45 34 50 35 36 35.77 3398 35.69 3836 35.44 891 33.75 19.787 15 48 36 60 v 4 3 3 3745 35.42 3.46 35923356 35.61 3447 35.40 3 381 35.93 352 3808 3468 36 90 33.8) 37.92 3.56 36 20 32.52 4.98 32.27 35.80 32.02 36.9 34.57 36 82 34.23 35.75 3 3.63 37.92 34.34 37.16 28.49 162 DOR 600 0005139 3697 20.341 OSS SOO 000192 3751 2835 SR 636 100 D 10 25 11 5 600 090517 3751 2815 G O 02 4 4 2 1 1 701 2762 139 533 000 0317 15 17 252166 205 200 DORIS 456 25.43 165.925 300 34.77 25.59 166 851.100 0720 35.0 25.79 137 545.000 DOSSES 366 43 19440100 000170 35 20 25 55 141 542.000 3409 1653 2652100 126 RDD 1000 3359 2407192 0 200 056661 35.60 25 51 177261,200 0062687 3350 24.00 165,562,700 DO 32.79 21.17 10 411 400 0062119 1497 2471159.175 000 159.175.8000 034511 36.22 25.59 149.482,900 3434 23,92 128 OR 300 - 024432 35 20 2452 144 879 100 Date Fled: Feb 19,2020 Period End: Dec 31, 2019 EL LILLY AND COMPANY AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (Dollars in millions, shes in thousands) in the yellow shaded cells below, enter a zero if the item is Operating and enter the appropriate amount the item is Non Operating, Cash is already completed December 31, 2019 December 31, 2018 2019 Operating Non-Oper. 2013 Operating Non-Oper 7,320. 7 5 2 3375 $ 1010 45473 4,5939 1010 45673 4,5939 11829 9942 3.190.7 25389 3.190.7 25389 20367 00 Asum i ng Assets Current Assets Cash and cash equivalents (Note 77 Short-term investments (Note 7) Accounts receivable, net of allowances of $22.4 (2019) and $24.1 (2018) Other receivables Inventores ( Note 6) Prepaid expenses and other Ourrent assets of discontinued operations (Note 19) Tot current assets Investments (Note 7) Goodall (Note Other intangibles, net (Note 8) Deferred tax assets (Note 14) Property and equipment, net (Note 9) Operating lease assets (Note 10) Other noncurrent assets Noncurrent assets of discontinued operations (Note 19) Total Assets 1 182.9 3.0981 2,036.7 2.2291 20,5496 2.005.4 137095 19624 113721 1.9624 13,2289 2,005 4 6.6180 2.5725 78729 5321 2.3391 1080 2.513.7 7,996.1 6.6180 2.5726 7.8729 5321 2.339.1 106RO 2.613.7 701 00 1,824.9 5.4841 43.808.4 1.8249 6. 21 35 58775 39.286.1 S S 36 948 6 5 2337.5 73207 1.4993 $ 1.1022 S 14993 1.102.2 14053 9155 2011 0556 14053 9155 1.2073 9556 Liabilities and Equity Current Liabilines Short-term borrowings and current maturities of long-terms dett Note 11) counts payable Emplovee compensation Sales rebates and discounts Dividends payable Income taxes payable (Note 14) Other current abilities Current liabilities of discontinued operations (Note 19) Total current abilities 1506 2 1894 2,036.7 2,0367 00 Ampang 11.7752 11,8881 138179 9,196.4 13.8179 9.1954 3GB 2 2.0022 1,3576 Other Liabilities Long-term debt (Note 11) Noncurrent operating le b ites (Note 10) Accrued retirement benefits Note 15 Long-term income taxes payable (Note 14) Other noncurrent liabilities Deferred tax liabilities (Note 14) Noncurrent abilities of discontinued operations (Note 19) Total other lisbilities Commitments and Contingencies (Note 16) Eli Lilly and Company Shareholders' Equity (Notes 12 and 13) Common stock no par value Authorized Shares: 3,200.000 10143 2 1875 1,357.6 1,312.7 21875 24 811 21.1112 248118 21.1112 598 Period End: Dec 31, 2019 Date Filed: Feb 19, 2020 ELI LILLY AND COMPANY AND SUBSIDIARIES CONSOLIDATE STATEMENTS OF OPERATIONS (Dollars in millons, shares in thousands except per-share dara) Year Ended December 31, December 31, December 31, 2019 in the yellow-shaded ons below, enter a zero if the tem is Operating and enter the appropriate amount if the item is Non-Operating. Revenue is already completed. Calculate the Tax Shield in cell H24 make sure the sign is correct) 2017 Year Ended Dec 31, 2019 Operating Non-Oper. 22.319.5 500 Revenge 22 3195 $ 21,493 3 $ 19.9738 4,6817 5.051 2 4.7212 5.5950 6.2138 2396 575.6 5,975 1 1,9839 266.9 4.447.7 5,096.2 5.9824 1.1126 1331.6 4,7212 5,595.0 6.2138 239.6 575.6 173452 17,95BB 17.970.5 17.345.2 Operating costs and expenses Cost of sales Research and development Marketing, selling, and administrative Acquired in process research and development (Note 3) Asset impairment restructuring, and other special charges (Note 5) Total operating expenses: Other income) and expenses (Note 18) Interest expense Interest income Other (income) expense, nel Total other income) and expenses: Income before income taxes Income taxes (Note 14) Net income (loss) from continuing operations Net income loss) from discontinued operations (Note 19) Net income (loss) 4006 (804) (6118 2915 52659 8280 46379 3.680 5 8.3184 S 2425 (159.3) (228) (145.6 3,680.1 529.5 3,150 6 814 3,2320$ 225.0 (1664) (360.1) (301.5 2.3048 2,391.2 864) (1177) (204.1) 400.6 (80.4) (611.8) (291.6) 5.265 9 62.0 4,6379 3,6805 8,318.45 Tax Shield $ = Net Operating Profit After Tax Earnings (less) per share: Earnings (loss) from continuing operations basic Earings (loss) from discontinued operations - basic Eamings (los) per share basic Eamnings (loss) from continuing operations -diluted Earings (loss) from discontinued operations-diluted Eamings (loss) per share-diluted 4.98 3.95 8.93 3.07 0.07 3.14 $ (0.08) 10.11 (0.19) 100) (0.11) (0.19) 4.96 305 3.93 8.895 0.0B 3.13 $ Shares used in calculation of earnings (loss) per share Basic Diluted 931,059 935 684 1,027,721 1.033,667 1,052,023 1.052.023 2019 Reported period 2022 Forecast 2023 Forecast 2024 Forecast 2025 Forecast Where Forecast 2020 Forecast 1 7.00% 2021 Forecast 2 2.00% 5.00% 6.00% 5.00% 5.00% 2.00% 22,320 10.900W 10.900% 131791.3179 10.900 13179 10.900W 10.900% 1317913179 10 900 13179 10.500% 131791 10.900% 13179 1.920% 0.1700 20-Year Treasury Note Interest Rate on 12/31/2019 5-yr monthly per Yahoo Finance assumption based on 50-year stock market average Discounted Cash Flow Valuation Model all amounts are in Smillions Parsimonious Forecast Sales Growth Forecast Sales Revenue Net Operating Profit After Tax (NOPAT) Net Operating Assets (NOA) Net Operating Profit Margin INOPM) Net Operating Asset Turnover (NOAT) Weighted Average Cost of Capital Calculation Risk Free Return ) Market Beta (LLY Overall Market Premium Cost of Equity Capital Market Capitalization (LLY) = IV Interest Expense Average Interest-Bearing Debt IV Marginal Tax Rate Cost of Debt Capital Intrinsic Value of Firm - IV, Weighted Avg Cost of Capital (WACC) Discounted Cash Flow Valuation Model Increase in Net Operating Assets (NOA) FCFF (NOPAT Increase in NOA) Discount factor Present Value of horizon FCFF Cumulative PV of horizon FCFF Present Value of terminal FCFF Total Firm Value less: NNO INO Liabilities. NO Assets) less: Noncontrolling Interests Firm Equity Value 125,923 401 4,350 24.000% $131.43/shr x 958.1 million shares outstanding on 12/31/2019 from El Lilly 2019 annual report assumed to also be the market value of interest bearing debt assumed 21% federal rate average 3% state rote 2,309 2019 Balance Sheet O O from your calculation of NNO O EL from El Lilly 2019 income Statement Acet5401 Twitter Financial Forecast Worksheet 950.056 from Lilly 2019 annual report Shares Outstanding (millions) Stock Value per Share Price Sensitivity to WACC and Growth WACC 4.000% 3.000% 3.500% 4.500 Terminal Growth Rate $0.00 1.00% 1 SOK 2.00% 2 50% 100% Price Sensitivity to NOPM and NOAT NOAT 0.71791.01791.31791.617919175 $0.00 8.900% 9.900% 10.90% NOPM Twitter Financial Forecast Worksheet Reported Forecl ore 22 320 10 SON 13179 30 SOON 13179 30 SOON 13179 30 SOON 10 900 10 90 13179 13119 13179 10.90 13179 10.900 13179 1.520% 0.1700 6.000 10-Year T mo sury Note interest Rate on 12/31/2019 h oo Finance bodo so war stock market overge Residual Operating income Valuation Model Olomounts or ons Parimnious forecast Sales Growth Forecast Sales Revenue Net Operating Profit Ater Tax INOPAT) Net Operating Assets (NOA) Net Operating profit Margin INOPE Net Operating Asset Turnover (NOAT) Weighted Average Cost of Capital Calculation Risk Free Return ) Marbet Beta ILLY Overall Market Premium Cost of Equity Capital Market Capitation (LLYN Interest Expense Average interest-Bearing Debt IV Marginal Tax Rate Cost of Debt Capital intrinsic Value of Firm IV Weighted Avg Cost of Capital (WACC) ROPI Valuation Model ROPI (NOPATINOA, Discount factor Present value of horizon ROPI Cumulative PV of horizon ROPI Present Value of terminal ROPI TotalFirm Value less: NNO (NO Liabilities. NO Assets) less: Noncontrolling Interests Firm Equity Value Shares Outstanding millions) 125.923 401 4,350 24.000% $131. 981 ilin shores outstanding on 12/31/2019 2019 u port assumed to also be the market value of interest-bearing-debt med 215 federal rote average store rote 0 from your colors of NNO O E lly's 2019 Balance Sheet fror 2019 Income Statement 958.056 from Lilly 2019 annual report Twitter Financial Forecast Worksheet Stock Value per Share Price Sensitivity to WACC and Growth WACC 4.000K SO100 SOON Terminal Growth Rate 2.00 Price Sensitivity to NOPM and NOAT Price-to-Book Valuation Analysis LLY T ABT 2,699.10 3333333333 Equity assumed value Book value of equity weight for LLY market multiple --> Book value market multiple Equity intrinsic value Common shares outstanding millions) Equity intrinsic value per share Price-to-Equity Valuation Analysis Xin millions LLY ABT 463790 3333333333343 Income from Continuing Operations weight for LLY market multiple Income market multiple Equity intrinsic value Common shares outstanding millions) Equity intrinsic value per share 958 056 Price to Book Multiple MShares FYE 2019 Outstanding Stock Price come from Cont Ops (M) Market Cap Book City Total De M M M Income Multiple Ticker Company Total Debt to-fouity PC PE/Growth Trading Pt Forward SY R OP from the Finance 5831 AN 1314 123,917 2 5910 15.803 90 56 86153413415310880018439.00 1520 11 6 6200 191.176 2.894.93 58.173.60 22,649.00 Above Inc Alergan PLC AGN 160 11.95 329.00 11.40 1045.265.10 15 242,842.00 445. 303.31 BIB 1100 4 296.73 $5,488.5 13,343.20 6415 109893.28 $1,5580 5.954.80 46,733.00 333 SEBELSBEEREEE 15.119.00 MRK 653 964 Merck & Co Inc REGN 264.00 2.500.00 5,675.00 115.00 26100 482.00 100 145 87391515.08 59.47100 90 95 234.65100 25.907 DO 39.18 222 346.50 63,143.00 375.48 43.180.20 11.089.70 218 95 57.145.956 ,0852 132.3563,792.70 2,708.00 100 100 100 27.696.00 26.146.00 52,150 00 0 .00 0 .00 6.447.00 100 3842,115.50 931.17581 46.51 10161 82.53 0.00 0.09 238.01 100.00 Vertex Pharmaceuticals Zocesine 1.500.00 100 100 100