Z-Model Compute Z-scores for 2 yrs X-1 Working Capital / Total Assets Z score > WGHT 1.2 2020 2019 X-1 > 1.4 X-2 Retained Earns / Total Assets Ret. Earns Tot Assets X-2 > 3.3 X-3 EBIT / Total Assets EBIT Tot Assets X-3 > 107 0.6 COMPUTE THE Z-MODEL SCORE using data below millions of US Dollars INCOME STATEMENT 2020 2019 2018 Sales / Revenue (Net) 4,113 3,543 3,509 Cost of Goods Sold 3,012 2,605 2,574 Gross Profit (Loss) 1,100 938 935 Selling, General and Administrative Exp 847 768 767 Operating Inc Before Depreciation 253 170 168 Depreciation &Amortization - Total 90 85 84 Operating Income, EBIT 163 85 84 Interest (Exps or credit) - Net 1 4 -2 Pret-Tax Income & Other 164 89 82 Income Taxes Expense (Credit) 45 21 19 Income Before Extraordinary Items 119 68 63 NET INCOME (LOSS) 119 68 63 millions of US Dollars Current Assets 2020 2019 2019 Cash and Short-Term Investments - To 271 149 Receivables - Total 57 56 57 Inventories - Total 269 280 281 Current Assets - Other - Total 29 23 24 Current Assets Total 626 508 469 Property Plant & Equipment - Total (N 1,124 1,097 Intangible Assets - Total 70 70 75 Non-Current Assets Total 1,194 1,167 963 ASSETS TOTAL 1,820 1,676 1,432 millions of US Dollars Current Liabilities 2020 2019 2019 Debt in Current Liabilities 39 39 0 Account Payable/Creditors - Trade 222 181 191 Current Liabilities - Other 85 72 76 Current Liabilities Total 346 292 267 Long-Term Debt Total 169 180 0 Deferred Taxes and Investment Tax Cre 103 97 91 Liabilities (Other) 56 48 51 Long-Term Liabilities Total 328 325 142 Liabilities Total 674 617 409 Common Stock issued 516 477 460 Retained Earnings 630 582 563 Shareholders' Equity TOTAL 1,146 1,059 1,023 LIABILITIES & SHAREHOLDER EQUITY 1 1,820 1,676 1,432 X-4 Market Val. Stock /Tot Liabilities Stock Price Stk Shares mill. Market Capitalization Tot. Liabilities $ 50.00 $ 38.00 29.5 29.0 888 X-4 > 1.0 X-5 Net Sales / Total Assets Revenue Tot Assets X-5 > 2020 2019 Calculate Free Cash Flow for 2 Yrs USE 25% INC.TAX RATE EBIT EBITX (1 - 25 tax rate) Free Cash Flow 4 101 millions of US Dollars NEW DATA PROVIDED --> CASH FLOW STATEMENT (# in millions) INCOME STATEMENT 2020 2019 2018 OPERATING ACTIVITY 2020 2019 2018 Sales/Turnover (Net) 4,113 3,543 3,509 Income Before Extraord 119 68 63 Cost of Goods Sold 3,012 2,605 2,574 Depreciation+Amortizat 90 85 84 Gross Profit (Loss) 1,100 938 935 Adjustments to Net Inco 9 8 Selling, General and Administrative Exp 847 768 767 Inventory - Decrease (tr 11 1 -1 Operating Inc Before Depreciation 253 170 168 Other Changes in Opera 49 14 -5 Depreciation&Amortization - Total 90 85 84 OPERATING ACTIVITIES 278 172 148 Operating Income EBIT 163 85 84 Interest - Net 1 4 -2 INVESTING ACTIVITY 2020 2019 2018 Pret-Tax Income & Other 164 89 82 Capital Expenditures 131 96 Income Taxes Expense (Credit) 45 21 19 Other Cash Flow from In -44 -8 5 Income Before Extraordinary Items 119 68 63 INVESTING ACTIVITIES - 175 - 109 -91 NET INCOME (LOSS) 119 68 63 FINANCING ACTIVITY 2020 2019 2018 Current Assets 2020 2019 2018 Cash Dividends 33 33 33 Cash and Short-Term Investments - To 149 107 FINANCING ACTIVITIES -33 -68 Receivables - Total 57 56 57 Inventories - Total 269 280 281 Current Assets - Other - Total 29 23 24 12pts ea.Calculate Free Cash Flow for 2 yrs Current Assets Total 626 508 469 USE 25% INC.TAX RATE 2020 2019 Non-Current Assets EBIT Property Plant and Equipment - Total 1,124 1,097 888 EBIT X(1 - 25 tax rate) Intangible Assets - Total 70 70 75 Non-Current Assets Total 1,194 1,167 963 ASSETS TOTAL 1,820 1,676 1,432 271 -33 Free Cash Flow Current Liabilities Debt in Current Liabilities Account Payable/Creditors - Trade Current Liabilities - Other Current Liabilities Total Long-Term Debt Total Deferred Taxes and Investment Tax Cre Liabilities (Other) Long-Term Liabilities Total Liabilities Total Shareholders' Equity Total LIABILITIES & SHAREHOLDER EQUITYT 2020 2019 2018 39 39 0 222 181 191 85 72 76 346 292 267 169 180 0 103 97 91 56 48 51 328 325 674 617 409 1,146 1,059 1,023 1,820 1,676 1,432 142 Z-Model Compute Z-scores for 2 yrs X-1 Working Capital / Total Assets Z score > WGHT 1.2 2020 2019 X-1 > 1.4 X-2 Retained Earns / Total Assets Ret. Earns Tot Assets X-2 > 3.3 X-3 EBIT / Total Assets EBIT Tot Assets X-3 > 107 0.6 COMPUTE THE Z-MODEL SCORE using data below millions of US Dollars INCOME STATEMENT 2020 2019 2018 Sales / Revenue (Net) 4,113 3,543 3,509 Cost of Goods Sold 3,012 2,605 2,574 Gross Profit (Loss) 1,100 938 935 Selling, General and Administrative Exp 847 768 767 Operating Inc Before Depreciation 253 170 168 Depreciation &Amortization - Total 90 85 84 Operating Income, EBIT 163 85 84 Interest (Exps or credit) - Net 1 4 -2 Pret-Tax Income & Other 164 89 82 Income Taxes Expense (Credit) 45 21 19 Income Before Extraordinary Items 119 68 63 NET INCOME (LOSS) 119 68 63 millions of US Dollars Current Assets 2020 2019 2019 Cash and Short-Term Investments - To 271 149 Receivables - Total 57 56 57 Inventories - Total 269 280 281 Current Assets - Other - Total 29 23 24 Current Assets Total 626 508 469 Property Plant & Equipment - Total (N 1,124 1,097 Intangible Assets - Total 70 70 75 Non-Current Assets Total 1,194 1,167 963 ASSETS TOTAL 1,820 1,676 1,432 millions of US Dollars Current Liabilities 2020 2019 2019 Debt in Current Liabilities 39 39 0 Account Payable/Creditors - Trade 222 181 191 Current Liabilities - Other 85 72 76 Current Liabilities Total 346 292 267 Long-Term Debt Total 169 180 0 Deferred Taxes and Investment Tax Cre 103 97 91 Liabilities (Other) 56 48 51 Long-Term Liabilities Total 328 325 142 Liabilities Total 674 617 409 Common Stock issued 516 477 460 Retained Earnings 630 582 563 Shareholders' Equity TOTAL 1,146 1,059 1,023 LIABILITIES & SHAREHOLDER EQUITY 1 1,820 1,676 1,432 X-4 Market Val. Stock /Tot Liabilities Stock Price Stk Shares mill. Market Capitalization Tot. Liabilities $ 50.00 $ 38.00 29.5 29.0 888 X-4 > 1.0 X-5 Net Sales / Total Assets Revenue Tot Assets X-5 > 2020 2019 Calculate Free Cash Flow for 2 Yrs USE 25% INC.TAX RATE EBIT EBITX (1 - 25 tax rate) Free Cash Flow 4 101 millions of US Dollars NEW DATA PROVIDED --> CASH FLOW STATEMENT (# in millions) INCOME STATEMENT 2020 2019 2018 OPERATING ACTIVITY 2020 2019 2018 Sales/Turnover (Net) 4,113 3,543 3,509 Income Before Extraord 119 68 63 Cost of Goods Sold 3,012 2,605 2,574 Depreciation+Amortizat 90 85 84 Gross Profit (Loss) 1,100 938 935 Adjustments to Net Inco 9 8 Selling, General and Administrative Exp 847 768 767 Inventory - Decrease (tr 11 1 -1 Operating Inc Before Depreciation 253 170 168 Other Changes in Opera 49 14 -5 Depreciation&Amortization - Total 90 85 84 OPERATING ACTIVITIES 278 172 148 Operating Income EBIT 163 85 84 Interest - Net 1 4 -2 INVESTING ACTIVITY 2020 2019 2018 Pret-Tax Income & Other 164 89 82 Capital Expenditures 131 96 Income Taxes Expense (Credit) 45 21 19 Other Cash Flow from In -44 -8 5 Income Before Extraordinary Items 119 68 63 INVESTING ACTIVITIES - 175 - 109 -91 NET INCOME (LOSS) 119 68 63 FINANCING ACTIVITY 2020 2019 2018 Current Assets 2020 2019 2018 Cash Dividends 33 33 33 Cash and Short-Term Investments - To 149 107 FINANCING ACTIVITIES -33 -68 Receivables - Total 57 56 57 Inventories - Total 269 280 281 Current Assets - Other - Total 29 23 24 12pts ea.Calculate Free Cash Flow for 2 yrs Current Assets Total 626 508 469 USE 25% INC.TAX RATE 2020 2019 Non-Current Assets EBIT Property Plant and Equipment - Total 1,124 1,097 888 EBIT X(1 - 25 tax rate) Intangible Assets - Total 70 70 75 Non-Current Assets Total 1,194 1,167 963 ASSETS TOTAL 1,820 1,676 1,432 271 -33 Free Cash Flow Current Liabilities Debt in Current Liabilities Account Payable/Creditors - Trade Current Liabilities - Other Current Liabilities Total Long-Term Debt Total Deferred Taxes and Investment Tax Cre Liabilities (Other) Long-Term Liabilities Total Liabilities Total Shareholders' Equity Total LIABILITIES & SHAREHOLDER EQUITYT 2020 2019 2018 39 39 0 222 181 191 85 72 76 346 292 267 169 180 0 103 97 91 56 48 51 328 325 674 617 409 1,146 1,059 1,023 1,820 1,676 1,432 142