BEAM Inc.

- Quarterly Operating Model

($ in Millions Except Per Share and Per Unit Data)

x Assumptions:

Target Name: BEAM Inc. Company Valuation @ Current Share Price:

Target Ticker: BEAM
Last Fiscal Year: 2013-12-31 Diluted Shares (Millions) @ Current Price: 167.402

Current Share Price: $ 66.97 Options - Treasury Stock Method @ Current Share Price:
Share Price Date: 2014-01-10
Offer Price per Share: $ 83.50 Number Exercise
Tax Rate: 28.0% Name: (Millions): Price: Dilution:
Options A 5.395 $ 51.64 1.235
Basic Shares Outstanding (Millions): 165.336 Total: 5.395 1.235

Restricted Stock and Other Sources @ Current Share Price:

Number Exercise
Name: (Millions): Price: Dilution:
Restricted Stock: - N/A -
Performance Shares 0.320 N/A 0.320
RSUs: 0.511 N/A 0.511
Total: 0.831 0.831

Equity Value: $ 11,210.9

Less: Cash & Cash-Equivalents: (277.2)
Less: Equity Investments: (57.3)
Less: Other Non-Core Assets, Net: -
Less: Net Operating Losses: (86.3)
Plus: Total Debt: 2,037.3
Plus: Preferred Stock: -
Plus: Noncontrolling Interests: -
Plus: Unfunded Pension Obligations: 92.9
Plus: Capital Leases: -
Plus: Restructuring & Other Liabilities: 13.4
Enterprise Value: $ 12,933.7
 Historical
x Revenue and Expense Assumptions: Units 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13

Net Sales by Region:

North America: $M $ 309.3 $ 370.8 $ 379.8 $ 387.6 $ 364.0 $ 410.4 $ 374.5 $ 410.2
Europe, Middle East & Africa (EMEA): $M 107.3 112.1 116.2 175.5 105.6 116.9 124.5 197.5
Asia-Pacific and South America (APSA): $M 117.2 114.1 130.7 139.1 108.1 110.3 99.7 125.6
Consolidated Net Sales: $M 533.8 597.0 626.7 702.2 577.7 637.6 598.7 733.3
YoY Growth Rate: % 1.9% 4.7% 8.2% 10.1% 8.2% 6.8% (4.5%) 4.4%

North America - YoY Change in Volume: % 4.0% 4.0% 4.0% 4.0% (1.0%) 2.0% (7.0%) 1.0%
North America - YoY Change in Pricing: % 3.0% 3.0% 3.0% 3.0% 6.0% 4.0% 6.0% 5.0%

EMEA - YoY Change in Volume: % 2.0% 2.0% 2.0% 2.0% (4.0%) 4.0% 1.0% 4.0%
EMEA - YoY Change in Pricing: % 3.0% 3.0% 3.0% 3.0% 5.0% 3.0% 2.0% 6.0%

APSA - YoY Change in Volume: % 4.0% 4.0% 4.0% 4.0% (1.0%) 9.0% (28.0%) (1.0%)
APSA - YoY Change in Pricing: % 1.0% 1.0% 1.0% 1.0% (6.0%) (12.0%) 7.0% (8.0%)

Operating Income by Region:

North America: $M 98.6 105.7 105.5 82.5 123.4 121.3 99.9 104.1
Europe, Middle East & Africa (EMEA): $M 17.4 23.6 27.8 54.2 24.6 23.1 27.5 57.3
Asia-Pacific and South America (APSA): $M 22.0 23.0 31.2 38.0 21.0 18.1 20.6 26.7
Segment Operating Income: $M 138.0 152.3 164.5 174.7 169.0 162.5 148.0 188.1
Segment Operating Margin %: % 25.9% 25.5% 26.2% 24.9% 29.3% 25.5% 24.7% 25.7%

Operating Margin by Region:

North America: % 31.9% 28.5% 27.8% 21.3% 33.9% 29.6% 26.7% 25.4%
Europe, Middle East & Africa (EMEA): % 16.2% 21.1% 23.9% 30.9% 23.3% 19.8% 22.1% 29.0%
Asia-Pacific and South America (APSA): % 18.8% 20.2% 23.9% 27.3% 19.4% 16.4% 20.7% 21.3%

Segment Operating Income: $M 138.0 152.3 164.5 174.7 169.0 162.5 148.0 188.1
Less: Restructuring & Other Expenses: $M (6.9) (25.9) (2.6) (20.6) 10.0 (2.4) (3.1) (55.0)
Consolidated Operating Income: $M 131.1 126.4 161.9 154.1 179.0 160.1 144.9 133.1

Cost of Goods Sold (COGS): $M 219.1 248.6 256.0 300.0 228.6 263.5 255.3 320.5
Cost of Goods Sold % Revenue: % 41.0% 41.6% 40.8% 42.7% 39.6% 41.3% 42.6% 43.7%

Other Expense / (Income): $M (5.9) (22.5) (1.9) (4.8) (1.4) 42.3 13.5 (6.3)
Goodwill Impairment: $M - - - - - - - -
Income / (Loss) From Discontinued Ops.: $M 0.7 (0.8) (2.2) (15.9) (1.3) (0.3) (0.1) (1.3)
 Historical
x Balance Sheet and Cash Flow Statement Drivers: Units 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13

Days in Year: Days 366 366 366 366 365 365 365 365
Days in Period: Days 91 92 92 91 90 92 92 91
% of Year: % 24.9% 25.1% 25.1% 24.9% 24.7% 25.2% 25.2% 24.9%

Accounts Receivables % Annualized Revenue: % 17.7% 17.8% 18.1% 16.0% 20.1% 19.3% 19.6% 14.5%
Days Sales Outstanding (DSO): Days 64.8 65.2 66.3 58.7 73.3 70.6 71.5 53.0

Inventories % Annualized COGS: % 191.0% 170.7% 170.2% 146.1% 190.3% 174.0% 184.8% 143.4%
Inventory Turnover Days: Days 699.1 624.8 623.0 534.8 694.6 635.1 674.3 523.4

Other Current Assets % Annualized Revenue: % 11.7% 11.1% 11.8% 11.4% 11.1% 11.6% 11.8% 11.6%
Other Non-Current Assets % Annualized Revenue: % 4.3% 3.7% 3.4% 1.9% 2.6% 1.7% 2.0% 1.3%

Accounts Payable % Annualized COGS: % 18.5% 13.9% 17.1% 21.9% 21.5% 19.2% 19.9% 18.8%
Days Payable Outstanding (DPO): Days 67.5 50.8 62.5 80.1 78.6 70.0 72.7 68.6

Other Current Liabilities % Annualized OpEx: % 63.9% 54.6% 53.6% 50.8% 56.0% 47.3% 54.8% 40.3%

Accrued Pensions % Annualized OpEx: % 16.3% 13.3% 14.0% 14.3% 20.5% 16.4% 17.7% 8.2%
Other Non-Current Liabilities % Annualized OpEx: % 29.3% 24.1% 26.1% 19.6% 29.0% 22.3% 23.4% 14.3%

Debt Principal Repayments: $ 8.5 14.2 15.3 - 294.8 276.2 265.9 180.4
Debt Issuances: $ - 592.9 12.9 0.1 2.3 501.1 - 1.3
Interest Expense Paid on Debt: $ 24.5 26.9 28.5 29.1 26.4 25.7 20.9 18.6

Total Depreciation: $ 24.6 24.8 25.6 26.9 28.3 26.5 28.0 28.1
Depreciation % Revenue: % 4.6% 4.2% 4.1% 3.8% 4.9% 4.2% 4.7% 3.8%

Amortization of Intangible Assets: $ 1.3 2.3 2.5 2.5 2.6 2.4 2.2 2.9

Stock-Based Compensation: $ 4.4 5.4 5.0 5.5 6.3 6.9 2.2 4.6
SBC % Revenue: % 0.8% 0.9% 0.8% 0.8% 1.1% 1.1% 0.4% 0.6%

Deferred Income Taxes: $M 2.8 10.7 41.4 14.1 (2.7) (3.6) 4.8 48.7
Deferred Income Taxes % Taxes: % 8.2% 53.2% 112.2% 276.5% (7.1%) (20.6%) 18.7% 159.2%

Other Non-Cash Charges: $M - 15.1 (15.1) 15.6 (12.0) 43.8 8.4 43.3
Other Non-Cash Charges % Revenue: % – 2.5% (2.4%) 2.2% (2.1%) 6.9% 1.4% 5.9%

Capital Expenditures: $ 23.4 35.3 37.2 40.6 26.0 35.4 30.9 36.2
CapEx % Revenue: % 4.4% 5.9% 5.9% 5.8% 4.5% 5.6% 5.2% 4.9%

Other Investing Activities: $M (63.4) (602.3) (0.3) 0.4 65.6 5.9 6.0 8.7
Other Investing Activities % Revenue: % (11.9%) (100.9%) (0.0%) 0.1% 11.4% 0.9% 1.0% 1.2%

Dividends Paid: $M (32.3) (32.4) (32.6) (32.8) (36.1) (36.3) (36.5) (36.8)
Dividends Paid % Net Income: % 40.8% 32.0% 33.9% 30.1% 31.5% 48.9% 43.0% 41.4%

Stock Repurchases: $ - - - - - - - -
Stock Issuances and Other Financing Activities: $ 48.3 34.7 18.2 25.2 34.0 60.2 60.6 34.7

Effect of FX Rate Changes on Cash: $M 1.1 0.6 5.1 0.3 13.9 (2.4) (17.7) 5.0
Effect of FX Rate Changes % Revenue: % 0.2% 0.1% 0.8% 0.0% 2.4% (0.4%) (3.0%) 0.7%
 Historical
x Income Statement: Units 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13

Net Sales: $M $ 533.8 $ 597.0 $ 626.7 $ 702.2 $ 577.7 $ 637.6 $ 598.7 $ 733.3
Cost of Goods Sold: $M 219.1 248.6 256.0 300.0 228.6 263.5 255.3 320.5
Gross Profit: $M 314.7 348.4 370.7 402.2 349.1 374.1 343.4 412.8
Gross Margin %: % 59.0% 58.4% 59.2% 57.3% 60.4% 58.7% 57.4% 56.3%

Operating Expenses: $M 183.6 222.0 208.8 248.1 170.1 214.0 198.5 279.7

Operating Income: $M 131.1 126.4 161.9 154.1 179.0 160.1 144.9 133.1
Operating (EBIT) Margin: % 24.6% 21.2% 25.8% 21.9% 31.0% 25.1% 24.2% 18.2%

Other Expense / (Income):

Interest Expense: $M 24.5 26.9 28.5 29.1 26.4 25.7 20.9 18.6
Other Expense / (Income): $M (5.9) (22.5) (1.9) (4.8) (1.4) 42.3 13.5 (6.3)
Goodwill Impairment: $M - - - - - - - -
Total Other Expense / (Income): $M 18.6 4.4 26.6 24.3 25.0 68.0 34.4 12.3

Pre-Tax Income: $M 112.5 122.0 135.3 129.8 154.0 92.1 110.5 120.8
Income Taxes: $M 34.1 20.1 36.9 5.1 38.2 17.5 25.6 30.6
Income From Continuing Operations: $M 78.4 101.9 98.4 124.7 115.8 74.6 84.9 90.2

Income / (Loss) From Discontinued Ops.: $M 0.7 (0.8) (2.2) (15.9) (1.3) (0.3) (0.1) (1.3)

Net Income: $M $ 79.1 $ 101.1 $ 96.2 $ 108.8 $ 114.5 $ 74.3 $ 84.8 $ 88.9
Net Margin: % 14.8% 16.9% 15.4% 15.5% 19.8% 11.7% 14.2% 12.1%

Diluted Earnings Per Share (EPS): $ / Share $ 0.50 $ 0.63 $ 0.60 $ 0.68 $ 0.71 $ 0.46 $ 0.52 $ 0.54

Weighted Average Diluted Shares Outstanding: M Shares 159.600 160.800 161.400 160.800 161.800 163.100 163.800 163.400
 Historical
x Balance Sheet: Units 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13
ASSETS:
Current Assets:
Cash & Cash-Equivalents: $M $ 88.5 $ 109.3 $ 147.5 $ 365.7 $ 65.1 $ 313.1 $ 171.2 $ 277.2
Accounts Receivable: $M 380.0 422.8 451.7 453.0 470.2 489.4 465.2 427.0
Inventories: $M 1,683.1 1,688.3 1,733.7 1,763.0 1,764.3 1,819.1 1,871.3 1,843.3
Other Current Assets: $M 251.0 264.3 295.0 320.9 258.9 294.1 279.1 342.6
Total Current Assets: $M 2,402.6 2,484.7 2,627.9 2,902.6 2,558.5 2,915.7 2,786.8 2,890.1

Non-Current Assets:
Property, Plant and Equipment (PP&E): $M 754.4 758.1 769.7 787.9 781.4 790.6 808.3 815.7
Goodwill: $M 2,160.0 2,544.7 2,561.3 2,571.0 2,539.2 2,524.7 2,549.8 2,557.8
Other Intangible Assets: $M 2,184.2 2,279.2 2,313.5 2,308.1 2,268.2 2,237.9 2,263.9 2,224.4
Investments In Affiliates: $M 45.8 45.8 48.6 51.5 53.0 50.6 53.2 57.3
Other Non-Current Assets: $M 92.3 87.9 83.7 55.0 60.9 44.2 48.0 39.4
Total Non-Current Assets: $M 5,236.7 5,715.7 5,776.8 5,773.5 5,702.7 5,648.0 5,723.2 5,694.6

Total Assets: $M $ 7,639.3 $ 8,200.4 $ 8,404.7 $ 8,676.1 $ 8,261.2 $ 8,563.7 $ 8,510.0 $ 8,584.7

LIABILITIES AND EQUITY:

Current Liabilities, Excluding Debt:
Accounts Payable: $M $ 162.6 $ 137.2 $ 173.8 $ 264.0 $ 199.7 $ 200.4 $ 201.8 $ 241.7
Other Current Liabilities: $M 471.7 482.0 445.5 506.6 386.5 401.6 431.7 452.1
Total Current Liabilities, Excluding Debt: $M 634.3 619.2 619.3 770.6 586.2 602.0 633.5 693.8

Non-Current Liabilities, Including All Debt:

Total Debt: $M 1,944.6 2,513.2 2,514.4 2,505.0 2,214.8 2,476.3 2,225.1 2,037.3
Deferred Income Taxes: $M 408.5 409.4 462.7 453.0 440.7 441.9 452.3 526.7
Accrued Pension and Postretirement Benefits: $M 120.6 117.1 116.3 142.8 141.4 139.5 139.5 92.1
Other Non-Current Liabilities: $M 216.7 213.2 216.6 195.5 199.9 189.0 184.2 160.7
Total Non-Current Liabilities, Incl. All Debt: $M 2,690.4 3,252.9 3,310.0 3,296.3 2,996.8 3,246.7 3,001.1 2,816.8

Total Liabilities: $M $ 3,324.7 $ 3,872.1 $ 3,929.3 $ 4,066.9 $ 3,583.0 $ 3,848.7 $ 3,634.6 $ 3,510.6

Shareholders' Equity:
Common Stock & APIC and Conv. Pref. Stock: $M $ 1,610.4 $ 1,623.5 $ 1,621.9 $ 1,607.7 $ 1,619.5 $ 1,646.1 $ 1,666.8 $ 1,680.2
Accumulated Other Comprehensive Loss: $M (184.4) (281.2) (196.9) (186.0) (239.1) (289.4) (206.3) (146.8)
Treasury Stock: $M (3,047.0) (3,016.9) (2,995.8) (2,949.3) (2,920.0) (2,879.4) (2,834.2) (2,811.9)
Retained Earnings: $M 5,935.6 6,002.9 6,046.2 6,136.8 6,217.8 6,237.7 6,249.1 6,352.6
Total Shareholders' Equity: $M $ 4,314.6 $ 4,328.3 $ 4,475.4 $ 4,609.2 $ 4,678.2 $ 4,715.0 $ 4,875.4 $ 5,074.1

Total Liabilities and Equity: $M $ 7,639.3 $ 8,200.4 $ 8,404.7 $ 8,676.1 $ 8,261.2 $ 8,563.7 $ 8,510.0 $ 8,584.7

Balance Sheet Check: OK! OK! OK! OK! OK! OK! OK! OK!
 Historical
x Cash Flow Statement: Units 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13

CASH FLOWS FROM OPERATING ACTIVITIES:

Net Income: $M $ 79.1 $ 101.1 $ 96.2 $ 108.8 $ 114.5 $ 74.3 $ 84.8 $ 88.9
Adjustments for Non-Cash Items:
Depreciation: $M 24.6 24.8 25.6 26.9 28.3 26.5 28.0 28.1
Amortization: $M 1.3 2.3 2.5 2.5 2.6 2.4 2.2 2.9
Stock-Based Compensation: $M 4.4 5.4 5.0 5.5 6.3 6.9 2.2 4.6
Deferred Income Taxes: $M 2.8 10.7 41.4 14.1 (2.7) (3.6) 4.8 48.7
Goodwill Impairment: $M - - - - - - - -
Other Non-Cash Charges: $M - 15.1 (15.1) 15.6 (12.0) 43.8 8.4 43.3
Changes in Operating Assets and Liabilities:
Change in Accounts Receivable: $M 16.5 (28.4) (23.7) 2.0 (20.5) (28.7) 36.8 24.0
Change in Inventories: $M (61.8) (27.1) (21.4) 9.0 (65.7) (39.5) (19.1) 36.9
Change in Accounts Payable: $M (18.1) (23.3) (5.9) 80.9 (50.3) 4.0 (4.5) 35.4
Change in Other Assets: $M 21.8 (2.6) (35.0) 7.2 46.3 (13.3) 13.3 (24.5)
Change in Accrued Expenses & Other Liabilities: $M (122.2) 0.9 17.8 (9.0) (106.3) (40.3) (14.4) 20.0
Net Cash from Operating Activities: $M $ (51.6) $ 78.9 $ 87.4 $ 263.5 $ (59.5) $ 32.5 $ 142.5 $ 308.3

CASH FLOWS FROM INVESTING ACTIVITIES:

Capital Expenditures: $M $ (23.4) $ (35.3) $ (37.2) $ (40.6) $ (26.0) $ (35.4) $ (30.9) $ (36.2)
Other Investing Activities: $M (63.4) (602.3) (0.3) 0.4 65.6 5.9 6.0 8.7
Net Cash from Investing Activities: $M $ (86.8) $ (637.6) $ (37.5) $ (40.2) $ 39.6 $ (29.5) $ (24.9) $ (27.5)

CASH FLOWS FROM FINANCING ACTIVITIES:

Debt Repayment: $M $ (8.5) $ (14.2) $ (15.3) $ - $ (294.8) $ (276.2) $ (265.9) $ (180.4)
Issuances of Debt: $M - 592.9 12.9 0.1 2.3 501.1 - 1.3
Dividends Paid: $M (32.3) (32.4) (32.6) (32.8) (36.1) (36.3) (36.5) (36.8)
Stock Repurchases: $M - - - - - - - -
Stock Issuances and Other Financing Activities: $M 48.3 34.7 18.2 25.2 34.0 60.2 60.6 34.7
Net Cash from Financing Activities: $M $ 7.5 $ 581.0 $ (16.8) $ (7.5) $ (294.6) $ 248.8 $ (241.8) $ (181.2)

Effect of FX Rate Changes on Cash: $M 1.1 0.6 5.1 0.3 13.9 (2.4) (17.7) 5.0

Change in Cash and Cash Equivalents: $M (129.8) 22.9 38.2 216.1 (300.6) 249.4 (141.9) 104.6
Beginning Cash: $M 218.3 88.5 111.4 149.6 365.7 65.1 314.5 172.6
Ending Cash: $M $ 88.5 $ 111.4 $ 149.6 $ 365.7 $ 65.1 $ 314.5 $ 172.6 $ 277.2
 Historical
x Key Metrics and Ratios: Units 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13

EBITDA Calculation:
Operating Income: $M $ 131.1 $ 126.4 $ 161.9 $ 154.1 $ 179.0 $ 160.1 $ 144.9 $ 133.1
Depreciation: $M 24.6 24.8 25.6 26.9 28.3 26.5 28.0 28.1
Amortization: $M 1.3 2.3 2.5 2.5 2.6 2.4 2.2 2.9
Goodwill Impairment Charge: $M - - - - - - - -
EBITDA: $M $ 157.0 $ 153.5 $ 190.0 $ 183.5 $ 209.9 $ 189.0 $ 175.1 $ 164.1

Shareholders' Equity: $M 4,314.6 4,328.3 4,475.4 4,609.2 4,678.2 4,715.0 4,875.4 5,074.1
Total Debt: $M 1,944.6 2,513.2 2,514.4 2,505.0 2,214.8 2,476.3 2,225.1 2,037.3
Net Debt: $M 1,856.1 2,403.9 2,366.9 2,139.3 2,149.7 2,163.2 2,053.9 1,760.1
Net Capital: $M 6,170.7 6,732.2 6,842.3 6,748.5 6,827.9 6,878.2 6,929.3 6,834.2

Revenue Growth: % 1.9% 4.7% 8.2% 10.1% 8.2% 6.8% (4.5%) 4.4%
Gross Margin: % 59.0% 58.4% 59.2% 57.3% 60.4% 58.7% 57.4% 56.3%
Operating Margin: % 24.6% 21.2% 25.8% 21.9% 31.0% 25.1% 24.2% 18.2%
EBITDA Margin: % 29.4% 25.7% 30.3% 26.1% 36.3% 29.6% 29.2% 22.4%
Net Margin: % 14.8% 16.9% 15.4% 15.5% 19.8% 11.7% 14.2% 12.1%

Effective Tax Rate: % 30.3% 16.5% 27.3% 3.9% 24.8% 19.0% 23.2% 25.3%

D&A % Revenue: % 4.9% 4.5% 4.5% 4.2% 5.3% 4.5% 5.0% 4.2%
CapEx % Revenue: % 4.4% 5.9% 5.9% 5.8% 4.5% 5.6% 5.2% 4.9%

Total Debt / Annualized EBITDA: x 3.1 x 4.1 x 3.3 x 3.4 x 2.6 x 3.3 x 3.2 x 3.1 x
Net Debt / Annualized EBITDA: x 2.9 x 3.9 x 3.1 x 2.9 x 2.5 x 2.9 x 3.0 x 2.7 x
EBITDA / Net Interest Expense: x 8.4 x 34.9 x 7.1 x 7.6 x 8.4 x 2.8 x 5.1 x 13.3 x

Total Debt / Equity: x 0.5 x 0.6 x 0.6 x 0.5 x 0.5 x 0.5 x 0.5 x 0.4 x
Total Debt / Capital: % 31.1% 36.7% 36.0% 35.2% 32.1% 34.4% 31.3% 28.6%
Net Debt / Equity: x 0.4 x 0.6 x 0.5 x 0.5 x 0.5 x 0.5 x 0.4 x 0.3 x
Net Debt / Net Capital: % 30.1% 35.7% 34.6% 31.7% 31.5% 31.5% 29.6% 25.8%
 Lesson Outline:

Company Valuation @ Offer Price: 1) Historical Data - Largely already filled in. Don't have time to go over it here - assuming you
work, and how to retrieve information from filings. Quarterly Numbers -
Diluted Shares (Millions) @ Offer Price: 168.226
Check out the highlighted quarterly and annual reports if you want to get this information yours
Options - Treasury Stock Method @ Offer Price: exactly… cash at bottom of CFS does not quite match BS numbers in all years. Sorry, couldn'

Number Exercise 2) Forward Numbers - Largely trying to match the financial projections disclosed in the Beam
Name: (Millions): Price: Dilution: …and factor in quarterly trends and seasonality, where applicable.
Options A 5.395 $ 51.64 2.058
Total: 5.395 2.058 3) BS and CFS Drivers - Pretty standard. Inventory Turnover here is
produce). If there's no clear trend, we tend to use AVERAGES (based on the 2 previous quart
Restricted Stock and Other Sources @ Offer Price:
A lot of the information - debt repayments, interest, amortization, etc. is taken straight from the
Number Exercise
Name: (Millions): Price: Dilution: Deferred Income Taxes, Other Non-Cash Charges, etc. should be relatively small and/or $0 in
Restricted Stock: - N/A -
Performance Shares 0.320 N/A 0.320 4) Link Everything - Your practice exercise! Should know how to do this quite well by now. Li
RSUs: 0.511 N/A 0.511 back to the IS and BS and fill out any items that you weren't able to complete at first.
Total: 0.831 0.831
Annual Roll-Ups already done - used INDEX/MATCH and SUMIF functions here to save some
Purchase Equity Value: $ 14,046.8
Less: Cash & Cash-Equivalents: (277.2) 5) Credit Stats and Ratios - Just carry across the formulas already in place.
Less: Equity Investments: (57.3) amount over the next 2 years, but doesn't have all that much debt to begin with anyway.
Less: Other Non-Core Assets, Net: -
Less: Net Operating Losses: (86.3) 6) Check Your Work - Compare everything to the figures in the merger proxy that Beam discl
Plus: Total Debt: 2,037.3
Plus: Preferred Stock: - Overall, we're pretty close on the FY14 and FY15 annual metrics, so this is "good enough".
Plus: Noncontrolling Interests: -
Plus: Unfunded Pension Obligations: 92.9 7) Recap and Summary.
Plus: Capital Leases: -
Plus: Restructuring & Other Liabilities: 13.4
Purchase Enterprise Value: $ 15,769.6
 Projected Historical Projected
1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 FY12 FY13 FY14 FY15

$ 376.7 $ 429.0 $ 389.4 $ 430.9 $ 395.7 $ 448.5 $ 402.9 $ 450.4 $ 1,447.5 $ 1,559.1 $ 1,625.9 $ 1,697.5
110.4 123.4 130.8 210.5 114.8 129.7 136.8 222.3 511.1 544.5 575.2 603.5
109.2 111.9 102.2 130.0 109.7 113.1 104.3 134.0 501.1 443.7 453.4 461.0
596.2 664.4 622.4 771.4 620.2 691.2 644.0 806.7 2,459.7 2,547.3 2,654.5 2,762.0
3.2% 4.2% 4.0% 5.2% 4.0% 4.0% 3.5% 4.6% 7.0% 3.6% 4.2% 4.1%

(0.5%) 1.0% (0.5%) 1.0% 1.0% 1.0% (0.5%) 1.0%

4.0% 3.5% 4.5% 4.0% 4.0% 3.5% 4.0% 3.5%

1.0% 3.0% 2.0% 3.0% 1.0% 3.0% 2.0% 3.0%

3.5% 2.5% 3.0% 3.5% 3.0% 2.0% 2.5% 2.5%

1.5% 2.0% 1.5% 2.5% 1.0% 1.5% 1.0% 2.0%

(0.5%) (0.5%) 1.0% 1.0% (0.5%) (0.5%) 1.0% 1.0%

129.2 128.5 105.4 111.1 137.5 136.4 110.9 118.1 392.3 448.7 474.2 502.9
26.0 24.8 29.3 61.7 27.5 26.5 31.1 65.9 123.0 132.5 141.8 151.0
21.5 18.6 21.4 28.0 21.9 19.2 22.1 29.2 114.2 86.4 89.5 92.4
176.7 171.9 156.1 200.8 186.9 182.0 164.1 213.3 629.5 667.6 705.5 746.3
29.6% 25.9% 25.1% 26.0% 30.1% 26.3% 25.5% 26.4% 25.6% 26.2% 26.6% 27.0%

34.3% 30.0% 27.1% 25.8% 34.8% 30.4% 27.5% 26.2% 27.1% 28.8% 29.2% 29.6%
23.6% 20.1% 22.4% 29.3% 23.9% 20.4% 22.7% 29.7% 24.1% 24.3% 24.7% 25.0%
19.7% 16.7% 20.9% 21.5% 20.0% 17.0% 21.2% 21.8% 22.8% 19.5% 19.7% 20.0%

176.7 171.9 156.1 200.8 186.9 182.0 164.1 213.3 629.5 667.6 705.5 746.3
- - - - - - - - (56.0) (50.5) - -
176.7 171.9 156.1 200.8 186.9 182.0 164.1 213.3 573.5 617.1 705.5 746.3

240.3 275.6 259.8 333.4 250.0 286.7 268.8 348.6 1,023.7 1,067.9 1,109.1 1,154.1
40.3% 41.5% 41.7% 43.2% 40.3% 41.5% 41.7% 43.2% 41.6% 41.9% 41.8% 41.8%

(3.7) 9.9 5.8 (5.6) (3.7) 9.9 5.8 (5.6) (35.1) 48.1 6.5 6.5
- - - - - - - - - - - -
- - - - - - - - (18.2) (3.0) - -
 Projected Historical Projected
1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 FY12 FY13 FY14 FY15

365 365 365 365 365 365 365 365 366 365 365 365
90 92 92 91 90 92 92 91 366 365 365 365
24.7% 25.2% 25.2% 24.9% 24.7% 25.2% 25.2% 24.9% 100.0% 100.0% 100.0% 100.0%

20.5% 20.5% 20.8% 13.7% 21.9% 21.9% 22.2% 15.1% 18.4% 16.8% 16.0% 17.7%
75.0 75.0 76.0 50.0 80.0 80.0 81.0 55.0 67.4 61.2 58.3 64.4

190.9% 172.6% 177.7% 145.0% 190.9% 172.6% 177.7% 145.0% 172.2% 172.6% 174.8% 175.6%
696.8 630.0 648.7 529.1 696.8 630.0 648.7 529.1 630.3 630.0 637.8 641.0

11.4% 11.4% 11.8% 11.5% 11.4% 11.4% 11.8% 11.5% 13.0% 13.4% 13.4% 13.5%
3.4% 2.7% 2.7% 1.6% 3.4% 2.7% 2.7% 1.6% 2.2% 1.5% 1.9% 1.9%

20.0% 16.5% 18.5% 20.4% 20.0% 16.5% 18.5% 20.4% 25.8% 22.6% 24.6% 24.7%
73.1 60.4 67.6 74.4 73.1 60.4 67.6 74.4 94.4 82.6 89.6 90.1

60.0% 50.9% 54.2% 45.5% 60.0% 50.9% 54.2% 45.5% 58.7% 52.4% 51.6% 51.9%

18.4% 14.8% 15.9% 11.3% 18.4% 14.8% 15.9% 11.3% 16.6% 10.7% 12.8% 12.8%
29.2% 23.2% 24.7% 17.0% 29.2% 23.2% 24.7% 17.0% 22.7% 18.6% 19.2% 19.3%

3.2 3.2 3.2 3.2 34.5 34.5 34.5 34.5 38.0 1,017.3 12.8 137.9
- - - - - - - - 605.9 504.7 - -
21.3 21.3 21.3 21.3 13.3 13.3 13.3 13.3 109.0 91.6 85.1 53.0

101.9 110.9 – –
4.8% 4.2% 4.4% 3.8% 4.8% 4.2% 4.4% 3.8% 4.1% 4.4% – –

4.9 4.9 4.9 4.9 5.0 5.0 5.0 5.0 8.6 10.1 19.6 19.9

5.7 20.3 20.0 5.7 –

1.0% 1.0% 0.6% 0.7% 1.0% 1.0% 0.6% 0.7% 0.8% 0.8% 0.2% –

5.0% 10.0% 15.0% 20.0% 5.0% 10.0% 15.0% 20.0% 71.7% 42.2% 12.8% 12.8%

15.6 83.5 – –
– – – – – – – – 0.6% 3.3% – –

136.5 128.5 – –
4.4% 5.7% 5.5% 5.4% 4.4% 5.7% 5.5% 5.4% 5.5% 5.0% – –

(665.6) 86.2 – –
– – – – – – – – (27.1%) 3.4% – –

(130.1) (145.7) – –
36.2% 40.5% 38.5% 35.8% 36.2% 40.5% 38.5% 35.8% 33.8% 40.2% 37.5% 37.5%

(20.0) (20.0) (20.0) (20.0) (20.0) (20.0) (20.0) (20.0) – – (80.0) (80.0)
41.2 47.5 39.4 29.9 41.2 47.5 39.4 29.9 126.4 189.5 158.0 158.0

7.1 (1.2) – –
1.3% (0.1%) (1.1%) 0.4% 1.3% (0.1%) (1.1%) 0.4% 0.3% (0.0%) 0.1% 0.1%
 Projected Historical Projected
1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 FY12 FY13 FY14 FY15

$ 596.2 $ 664.4 $ 622.4 $ 771.4 $ 620.2 $ 691.2 $ 644.0 $ 806.7 $ 2,459.7 $ 2,547.3 $ 2,654.5 $ 2,762.0
240.3 275.6 259.8 333.4 250.0 286.7 268.8 348.6 1,023.7 1,067.9 1,109.1 1,154.1
355.9 388.8 362.6 438.1 370.2 404.5 375.1 458.1 1,436.0 1,479.4 1,545.3 1,607.9
59.7% 58.5% 58.3% 56.8% 59.7% 58.5% 58.3% 56.8% 58.4% 58.1% 58.2% 58.2%

179.2 216.8 206.5 237.3 183.3 222.5 211.0 244.8 862.5 862.3 839.8 861.5

176.7 171.9 156.1 200.8 186.9 182.0 164.1 213.3 573.5 617.1 705.5 746.3
29.6% 25.9% 25.1% 26.0% 30.1% 26.3% 25.5% 26.4% 23.3% 24.2% 26.6% 27.0%

21.3 21.3 21.3 21.3 13.3 13.3 13.3 13.3 109.0 91.6 85.1 53.0
(3.7) 9.9 5.8 (5.6) (3.7) 9.9 5.8 (5.6) (35.1) 48.1 6.5 6.5
- - - - - - - - - - - -
17.6 31.2 27.1 15.7 9.6 23.2 19.1 7.7 73.9 139.7 91.6 59.5

159.1 140.7 129.0 185.0 177.3 158.9 145.1 205.6 499.6 477.4 613.9 686.8
44.5 39.4 36.1 51.8 49.6 44.5 40.6 57.6 96.2 111.9 171.9 192.3
114.6 101.3 92.9 133.2 127.7 114.4 104.5 148.0 403.4 365.5 442.0 494.5

- - - - - - - - (18.2) (3.0) - -

$ 114.6 $ 101.3 $ 92.9 $ 133.2 $ 127.7 $ 114.4 $ 104.5 $ 148.0 $ 385.2 $ 362.5 $ 442.0 $ 494.5
19.2% 15.3% 14.9% 17.3% 20.6% 16.5% 16.2% 18.3% 15.7% 14.2% 16.7% 17.9%

$ 0.70 $ 0.62 $ 0.56 $ 0.81 $ 0.77 $ 0.69 $ 0.63 $ 0.89 $ 2.40 $ 2.22 $ 2.69 $ 2.99

163.716 164.126 164.415 164.564 164.880 165.290 165.579 165.728 160.650 163.025 164.205 165.369
 Projected Historical Projected
1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 FY12 FY13 FY14 FY15

$ 357.0 $ 330.9 $ 522.3 $ 567.9 $ 596.8 $ 541.9 $ 728.0 $ 721.7 $ 365.7 $ 277.2 $ 567.9 $ 721.7
496.9 541.6 514.2 423.9 551.3 601.0 567.0 487.5 453.0 427.0 423.9 487.5
1,860.8 1,887.2 1,832.0 1,938.3 1,935.6 1,963.4 1,895.5 2,026.7 1,763.0 1,843.3 1,938.3 2,026.7
274.9 299.9 291.2 356.0 286.0 312.0 301.2 372.2 320.9 342.6 356.0 372.2
2,989.5 3,059.6 3,159.7 3,286.0 3,369.6 3,418.3 3,491.7 3,608.2 2,902.6 2,890.1 3,286.0 3,608.2

813.8 824.3 831.6 843.4 841.4 852.3 859.9 872.2 787.9 815.7 843.4 872.2
2,557.8 2,557.8 2,557.8 2,557.8 2,557.8 2,557.8 2,557.8 2,557.8 2,571.0 2,557.8 2,557.8 2,557.8
2,219.5 2,214.6 2,209.7 2,204.8 2,199.8 2,194.9 2,189.9 2,184.9 2,308.1 2,224.4 2,204.8 2,184.9
57.3 57.3 57.3 57.3 57.3 57.3 57.3 57.3 51.5 57.3 57.3 57.3
83.4 71.8 66.4 50.9 86.8 74.7 68.7 53.2 55.0 39.4 50.9 53.2
5,731.8 5,725.8 5,722.8 5,714.1 5,743.1 5,737.0 5,733.5 5,725.4 5,773.5 5,694.6 5,714.1 5,725.4

$ 8,721.4 $ 8,785.5 $ 8,882.5 $ 9,000.2 $ 9,112.8 $ 9,155.3 $ 9,225.2 $ 9,333.6 $ 8,676.1 $ 8,584.7 $ 9,000.2 $ 9,333.6

$ 195.1 $ 180.9 $ 190.9 $ 272.4 $ 203.0 $ 188.2 $ 197.5 $ 284.8 $ 264.0 $ 241.7 $ 272.4 $ 284.8
435.6 438.2 444.2 433.4 445.7 449.6 453.9 447.1 506.6 452.1 433.4 447.1
630.8 619.1 635.1 705.8 648.7 637.7 651.4 731.9 770.6 693.8 705.8 731.9

2,034.1 2,030.9 2,027.7 2,024.5 1,990.0 1,955.5 1,921.0 1,886.6 2,505.0 2,037.3 2,024.5 1,886.6
528.9 532.9 538.3 548.6 551.1 555.6 561.7 573.2 453.0 526.7 548.6 573.2
133.8 127.7 129.9 107.2 136.9 131.0 132.8 110.6 142.8 92.1 107.2 110.6
211.9 199.6 202.6 161.4 216.8 204.8 207.1 166.5 195.5 160.7 161.4 166.5
2,908.7 2,891.1 2,898.5 2,841.7 2,894.8 2,846.9 2,822.5 2,736.8 3,296.3 2,816.8 2,841.7 2,736.8

$ 3,539.5 $ 3,510.1 $ 3,533.6 $ 3,547.6 $ 3,543.5 $ 3,484.6 $ 3,474.0 $ 3,468.7 $ 4,066.9 $ 3,510.6 $ 3,547.6 $ 3,468.7

1,727.1 1,781.1 1,824.1 1,859.5 1,906.6 1,960.9 2,004.1 2,039.7 1,607.7 1,680.2 1,859.5 2,039.7
(139.0) (139.9) (146.6) (143.8) (135.7) (136.7) (143.6) (140.6) (186.0) (146.8) (143.8) (140.6)
(2,831.9) (2,851.9) (2,871.9) (2,891.9) (2,911.9) (2,931.9) (2,951.9) (2,971.9) (2,949.3) (2,811.9) (2,891.9) (2,971.9)
6,425.7 6,486.1 6,543.2 6,628.8 6,710.3 6,778.4 6,842.6 6,937.7 6,136.8 6,352.6 6,628.8 6,937.7
$ 5,181.9 $ 5,275.3 $ 5,348.9 $ 5,452.6 $ 5,569.3 $ 5,670.7 $ 5,751.3 $ 5,864.9 $ 4,609.2 $ 5,074.1 $ 5,452.6 $ 5,864.9

$ 8,721.4 $ 8,785.5 $ 8,882.5 $ 9,000.2 $ 9,112.8 $ 9,155.3 $ 9,225.2 $ 9,333.6 $ 8,676.1 $ 8,584.7 $ 9,000.2 $ 9,333.6

OK! OK! OK! OK! OK! OK! OK! OK! OK! OK! OK! OK!
 Projected Historical Projected
1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 FY12 FY13 FY14 FY15

$ 114.6 $ 101.3 $ 92.9 $ 133.2 $ 127.7 $ 114.4 $ 104.5 $ 148.0 $ 385.2 $ 362.5 $ 442.0 $ 494.5

28.3 27.6 27.3 29.6 29.5 28.7 28.2 30.9 101.9 110.9 112.8 117.3
4.9 4.9 4.9 4.9 5.0 5.0 5.0 5.0 8.6 10.1 19.6 19.9
5.7 6.6 3.6 5.4 5.9 6.9 3.8 5.7 20.3 20.0 21.4 22.2
2.2 3.9 5.4 10.4 2.5 4.4 6.1 11.5 69.0 47.2 21.9 24.5
- - - - - - - - - - - -
- - - - - - - - 15.6 83.5 - -

(69.9) (44.8) 27.4 90.3 (127.4) (49.7) 34.1 79.4 (33.6) 11.6 3.1 (63.7)
(17.5) (26.5) 55.2 (106.2) 2.7 (27.8) 67.9 (131.2) (101.3) (87.4) (95.0) (88.5)
(46.6) (14.3) 10.0 81.5 (69.4) (14.8) 9.3 87.3 33.6 (15.4) 30.7 12.4
23.6 (13.3) 14.1 (49.3) 34.1 (13.9) 16.7 (55.5) (8.6) 21.8 (24.9) (18.6)
76.4 (15.8) 11.2 (74.7) 97.3 (14.0) 8.4 (69.7) (112.5) (141.0) (2.9) 22.1
$ 122.0 $ 29.7 $ 252.1 $ 125.0 $ 107.8 $ 39.0 $ 283.9 $ 111.5 $ 378.2 $ 423.8 $ 528.8 $ 542.3

$ (26.5) $ (38.1) $ (34.5) $ (41.3) $ (27.6) $ (39.6) $ (35.7) $ (43.2) $ (136.5) $ (128.5) $ (140.4) $ (146.1)
- - - - - - - - (665.6) 86.2 – –
$ (26.5) $ (38.1) $ (34.5) $ (41.3) $ (27.6) $ (39.6) $ (35.7) $ (43.2) $ (802.1) $ (42.3) $ (140.4) $ (146.1)

$ (3.2) $ (3.2) $ (3.2) $ (3.2) $ (34.5) $ (34.5) $ (34.5) $ (34.5) $ (38.0) $ (1,017.3) $ (12.8) $ (137.9)
- - - - - - - - 605.9 504.7 - -
(41.4) (41.0) (35.7) (47.7) (46.2) (46.3) (40.2) (52.9) (130.1) (145.7) (165.8) (185.6)
(20.0) (20.0) (20.0) (20.0) (20.0) (20.0) (20.0) (20.0) – – (80.0) (80.0)
41.2 47.5 39.4 29.9 41.2 47.5 39.4 29.9 126.4 189.5 158.0 158.0
$ (23.5) $ (16.7) $ (19.5) $ (40.9) $ (59.5) $ (53.3) $ (55.3) $ (77.5) $ 564.2 $ (468.8) $ (100.7) $ (245.6)

7.8 (0.9) (6.7) 2.8 8.1 (1.0) (6.9) 2.9 7.1 (1.2) 3.0 3.2

79.8 (26.0) 191.4 45.6 28.9 (54.8) 186.0 (6.3) 147.4 (88.5) 290.7 153.8
277.2 357.0 330.9 522.3 567.9 596.8 541.9 728.0 218.3 365.7 277.2 567.9
$ 357.0 $ 330.9 $ 522.3 $ 567.9 $ 596.8 $ 541.9 $ 728.0 $ 721.7 $ 365.7 $ 277.2 $ 567.9 $ 721.7
 Projected Historical Projected
1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 FY12 FY13 FY14 FY15

$ 176.7 $ 171.9 $ 156.1 $ 200.8 $ 186.9 $ 182.0 $ 164.1 $ 213.3 $ 573.5 $ 617.1 $ 705.5 $ 746.3
28.3 27.6 27.3 29.6 29.5 28.7 28.2 30.9 101.9 110.9 112.8 117.3
4.9 4.9 4.9 4.9 5.0 5.0 5.0 5.0 8.6 10.1 19.6 19.9
- - - - - - - - - - - -
$ 210.0 $ 204.4 $ 188.3 $ 235.2 $ 221.4 $ 215.7 $ 197.3 $ 249.2 $ 684.0 $ 738.1 $ 837.9 $ 883.5

5,181.9 5,275.3 5,348.9 5,452.6 5,569.3 5,670.7 5,751.3 5,864.9 4,609.2 5,074.1 5,452.6 5,864.9
2,034.1 2,030.9 2,027.7 2,024.5 1,990.0 1,955.5 1,921.0 1,886.6 2,505.0 2,037.3 2,024.5 1,886.6
1,677.1 1,700.0 1,505.4 1,456.6 1,393.2 1,413.6 1,193.1 1,164.9 2,139.3 1,760.1 1,456.6 1,164.9
6,859.0 6,975.3 6,854.2 6,909.2 6,962.5 7,084.3 6,944.3 7,029.8 6,748.5 6,834.2 6,909.2 7,029.8

3.2% 4.2% 4.0% 5.2% 4.0% 4.0% 3.5% 4.6% 7.0% 3.6% 4.2% 4.1%
59.7% 58.5% 58.3% 56.8% 59.7% 58.5% 58.3% 56.8% 58.4% 58.1% 58.2% 58.2%
29.6% 25.9% 25.1% 26.0% 30.1% 26.3% 25.5% 26.4% 23.3% 24.2% 26.6% 27.0%
35.2% 30.8% 30.2% 30.5% 35.7% 31.2% 30.6% 30.9% 27.8% 29.0% 31.6% 32.0%
19.2% 15.3% 14.9% 17.3% 20.6% 16.5% 16.2% 18.3% 15.7% 14.2% 16.7% 17.9%

28.0% 28.0% 28.0% 28.0% 28.0% 28.0% 28.0% 28.0% 19.3% 23.4% 28.0% 28.0%

0.8% 0.7% 0.8% 0.6% 0.8% 0.7% 0.8% 0.6% 4.5% 4.8% 0.7% 0.7%
4.4% 5.7% 5.5% 5.4% 4.4% 5.7% 5.5% 5.4% 5.5% 5.0% – –

2.4 x 2.5 x 2.7 x 2.1 x 2.2 x 2.3 x 2.5 x 1.9 x 3.7 x 2.8 x 2.4 x 2.1 x
2.0 x 2.1 x 2.0 x 1.5 x 1.6 x 1.7 x 1.5 x 1.2 x 3.1 x 2.4 x 1.7 x 1.3 x
11.9 x 6.6 x 7.0 x 15.0 x 23.1 x 9.3 x 10.4 x 32.4 x 9.3 x 5.3 x 9.1 x 14.8 x

0.4 x 0.4 x 0.4 x 0.4 x 0.4 x 0.3 x 0.3 x 0.3 x 0.5 x 0.4 x 0.4 x 0.3 x
28.2% 27.8% 27.5% 27.1% 26.3% 25.6% 25.0% 24.3% 35.2% 28.6% 27.1% 24.3%
0.3 x 0.3 x 0.3 x 0.3 x 0.3 x 0.2 x 0.2 x 0.2 x 0.5 x 0.3 x 0.3 x 0.2 x
24.5% 24.4% 22.0% 21.1% 20.0% 20.0% 17.2% 16.6% 31.7% 25.8% 21.1% 16.6%
Suntory Holdings Limited - Quarterly Operating Model
(¥ JPY in Billions, Except Per Share and Per Unit Data)

Assumptions:

Acquirer Name: Suntory Holdings Limited

Last Fiscal Year: 2013-12-31
Units (for Conversions): 1,000

Minimum Cash Balance (¥B): ¥ 100.0

Effective Tax Rate 38.0%

Basic Shares Outstanding (Millions): 309.000

 Historical
Revenue and Expense Assumptions: Units 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13

Net Sales by Reportable Business Segment:

Beverage & Food: ¥B ¥ 204.5 ¥ 262.3 ¥ 279.7 ¥ 244.5 ¥ 220.1 ¥ 298.0 ¥ 319.1 ¥ 284.1
Beer & Spirits: ¥B 118.5 138.8 144.6 153.0 117.7 145.5 151.1 160.2
Others: ¥B 71.8 85.0 83.2 86.9 75.0 93.7 100.1 97.6
Intersegment Eliminations: ¥B (4.9) (5.8) (5.1) (5.3) (4.6) (5.6) (5.9) (6.0)
Consolidated Net Sales: ¥B 389.8 480.2 502.4 479.1 408.2 531.6 564.4 536.0
YoY Growth Rate: % N/A N/A N/A N/A 4.7% 10.7% 12.3% 11.9%

YoY Sales Growth by Business Segment:

Beverage & Food: % N/A N/A N/A N/A 7.6% 13.6% 14.1% 16.2%
Beer & Spirits: % N/A N/A N/A N/A (0.7%) 4.8% 4.5% 4.7%
Others: % N/A N/A N/A N/A 4.5% 10.3% 20.3% 12.3%

Operating Income by Business Segment:

Beverage & Food: ¥B 8.1 21.7 26.8 19.4 12.9 23.6 29.8 25.0
Beer & Spirits: ¥B 1.5 8.1 10.9 11.5 2.9 10.5 10.2 13.8
Others: ¥B 3.8 8.6 8.2 8.1 5.4 8.4 9.2 6.7
Intersegment Eliminations: ¥B (5.2) (8.6) (7.7) (7.5) (7.0) (7.9) (8.5) (8.4)
Consolidated Operating Income: ¥B 8.2 29.8 38.2 31.5 14.1 34.6 40.7 37.1
Consolidated Operating Margin %: % 2.1% 6.2% 7.6% 6.6% 3.5% 6.5% 7.2% 6.9%

Operating Margin by Business Segment:

Beverage & Food: % 4.0% 8.3% 9.6% 7.9% 5.9% 7.9% 9.3% 8.8%
Beer & Spirits: % 1.3% 5.8% 7.5% 7.5% 2.4% 7.2% 6.7% 8.6%
Others: % 5.3% 10.2% 9.9% 9.3% 7.1% 8.9% 9.2% 6.9%

Cost of Goods Sold (COGS): ¥B 195.9 236.7 246.2 244.4 202.0 261.9 277.2 274.3
Cost of Goods Sold % Revenue: % 50.3% 49.3% 49.0% 51.0% 49.5% 49.3% 49.1% 51.2%

Interest Expense: ¥B 2.6 2.3 2.8 2.2 2.4 3.1 3.1 3.4
Effective Interest Rate: % 0.4% 0.5% 0.5% 0.6%

Interest Income: ¥B (0.6) (2.6) (0.0) (1.4) (0.7) (2.2) (1.0) (1.9)
Yield on Cash: % 0.2% 0.6% 0.2% 0.4%

Other Expense / (Income): ¥B 1.7 1.6 4.2 1.9 1.5 (0.1) (174.4) 7.8

Equity in Earnings of Affiliates: ¥B 0.2 - - 0.4 0.1 - - -

Net Income Attributable to Noncontrolling Interests: ¥B 1.0 2.0 2.2 2.0 0.9 3.1 7.7 5.1
% Beverage & Food Operating Income: % 13.3% 25.8% 20.2%
 Historical
Balance Sheet and Cash Flow Statement Drivers: Units 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13

Days in Year: Days 366 366 366 366 365 365 365 365
Days in Period: Days 91 92 92 91 90 92 92 91
% of Year: % 24.9% 25.1% 25.1% 24.9% 24.7% 25.2% 25.2% 24.9%

Accounts Receivables % Annualized Revenue: % 13.7% 13.7% 17.3% 14.0% 11.9% 13.3%
Days Sales Outstanding (DSO): Days 50.0 50.3 63.1 51.0 43.5 48.6

Inventories % Annualized COGS: % 20.7% 18.7% 27.4% 21.0% 20.0% 20.4%

Inventory Turnover Days: Days 75.8 68.4 99.9 76.6 73.0 74.4

Other Current Assets % Annualized Revenue: % 4.2% 4.0% 4.8% 5.1% 3.5% 3.7%
Other Non-Current Assets % Annualized Revenue: % 4.0% 4.0% 4.4% 3.7% 3.5% 3.4%

Accounts Payable % Annualized COGS: % 9.5% 9.2% 11.4% 10.2% 8.6% 8.5%
Days Payable Outstanding (DPO): Days 34.7 33.8 41.8 37.3 31.5 31.1

Other Current Liabilities % Annualized OpEx: % 45.4% 46.0% 60.9% 45.4% 44.4% 52.7%

Accrued Pensions % Annualized OpEx: % 1.3% 1.4% 1.5% 1.2% 1.2% 1.3%
Other Non-Current Liabilities % Annualized OpEx: % 11.6% 14.6% 20.4% 15.5% 15.4% 17.6%

Depreciation & Amortization: ¥B 13.0 13.0 14.2 14.2 15.3 15.3 16.4 16.4
D&A % Revenue: % 3.3% 2.7% 2.8% 3.0% 3.8% 2.9% 2.9% 3.1%

Amortization of Goodwill: ¥B 5.2 5.2 5.0 5.0 5.9 5.9 6.1 6.1
Amortization of Other Intangibles: ¥B - - - - - - - -

Change in Operating Assets and Liabilities: ¥B (8.9) (8.9) 10.3 10.3

% Change in Revenue: % (48.5%) (17.3%) 16.6% 18.1%

Capital Expenditures: ¥B 16.7 16.7 19.0 19.0 20.8 20.8 24.2 24.2
CapEx % Revenue: % 4.3% 3.5% 3.8% 4.0% 5.1% 3.9% 4.3% 4.5%

Dividends Paid: ¥B 5.6 5.6 1.3 1.3 5.1 5.1 1.7 1.7
Dividends % Net Income: % 661.4% 46.8% 9.7% 12.1% 107.0% 20.8% 1.1% 14.2%

Debt Principal Repayments: ¥B 27.4 27.4 26.7 26.7 3.1 3.1 22.7 22.7
Repayment of Finance Lease Obligations: ¥B 0.6 0.6 1.1 1.1 0.8 0.8 0.8 0.8
Issuances of Debt: ¥B

Stock Repurchases: ¥B - - - - - - - -
Stock Issuances: ¥B - - - - - - 275.5 -

Effect of FX Rate Changes on Cash: ¥B 0.3 0.3 1.5 1.5 1.8 1.8 1.9 1.9
FX Rate Effects % Revenue: % 0.1% 0.1% 0.3% 0.3% 0.4% 0.3% 0.3% 0.4%
 Historical
Income Statement: Units 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13

Net Sales: ¥B ¥ 389.8 ¥ 480.2 ¥ 502.4 ¥ 479.1 ¥ 408.2 ¥ 531.6 ¥ 564.4 ¥ 536.0
Cost of Goods Sold: ¥B 195.9 236.7 246.2 244.4 202.0 261.9 277.2 274.3
Gross Profit: ¥B 193.9 243.5 256.2 234.7 206.2 269.7 287.2 261.7
Gross Profit Margin %: % 49.7% 50.7% 51.0% 49.0% 50.5% 50.7% 50.9% 48.8%

Operating Expenses: ¥B 185.7 213.7 218.0 203.2 192.1 235.0 246.5 224.6

Operating Income: ¥B 8.2 29.8 38.2 31.5 14.1 34.6 40.7 37.1
Operating (EBIT) Margin: % 2.1% 6.2% 7.6% 6.6% 3.5% 6.5% 7.2% 6.9%

Other Expense / (Income):

Interest Expense: ¥B 2.6 2.3 2.8 2.2 2.4 3.1 3.1 3.4
Interest Income: ¥B (0.6) (2.6) (0.0) (1.4) (0.7) (2.2) (1.0) (1.9)
Other Expense / (Income): ¥B 1.7 1.6 4.2 1.9 1.5 (0.1) (174.4) 7.8
Total Other Expense / (Income): ¥B 3.7 1.3 7.0 2.6 3.2 0.8 (172.3) 9.2

Equity in Earnings of Affiliates: ¥B 0.2 - - 0.4 0.1 - - -

Earnings Before Income Taxes: ¥B 4.7 28.5 31.2 29.2 11.1 33.8 213.0 27.9
Income Taxes: ¥B 2.8 14.7 15.8 16.6 5.4 5.9 51.2 10.9
Net Income: ¥B 1.9 13.9 15.5 12.7 5.7 27.9 161.8 17.0

Net Income Attributable to Noncontrolling Interests: ¥B 1.0 2.0 2.2 2.0 0.9 3.1 7.7 5.1

Net Income Attributable to Parent: ¥B ¥ 0.8 ¥ 11.9 ¥ 13.3 ¥ 10.6 ¥ 4.8 ¥ 24.8 ¥ 154.1 ¥ 11.9

Diluted Earnings Per Share (EPS): ¥ / Share ¥ 1.23 ¥ 17.56 ¥ 19.43 ¥ 15.58 ¥ 7.04 ¥ 36.27 ¥ 225.83 ¥ 17.51

EPS Excluding Goodwill Amortization: ¥ / Share ¥ 4.33 ¥ 21.31 ¥ 23.07 ¥ 18.76 ¥ 11.54 ¥ 43.45 ¥ 232.62 ¥ 22.96

Weighted Average Diluted Shares Outstanding: M Shares 684.000 679.000 682.000 681.667 682.000 682.500 682.250 682.200
 Historical
Balance Sheet: Units 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13
ASSETS:
Current Assets:
Cash & Cash-Equivalents: ¥B ¥ 225.0 ¥ 228.1 ¥ 418.7 ¥ 294.9 ¥ 642.9 ¥ 418.7
Notes & Accounts Receivable: ¥B 261.1 264.7 286.4 294.5 267.0 286.4
Inventories: ¥B 195.1 183.7 224.1 218.1 220.0 224.1
Other Current Assets: ¥B 79.8 76.7 78.7 108.4 77.7 78.7
Total Current Assets: ¥B 760.9 753.3 1,007.8 915.8 1,207.7 1,007.8

Non-Current Assets:
Property, Plant & Equipment (PP&E): ¥B 399.1 420.2 527.3 476.4 479.2 527.3
Goodwill: ¥B 329.4 354.6 409.3 378.8 375.9 409.3
Other Intangible Assets: ¥B 23.9 25.9 241.1 39.6 47.8 241.1
Investments in Affiliates: ¥B 93.7 97.1 116.3 108.4 112.6 116.3
Other Non-Current Assets: ¥B 76.0 76.8 72.3 78.5 77.3 72.3
Total Non-Current Assets: ¥B 922.1 974.7 1,366.2 1,081.7 1,092.7 1,366.2

Total Assets: ¥B ¥ 1,683.0 ¥ 1,728.0 ¥ 2,374.1 ¥ 1,997.6 ¥ 2,300.4 ¥ 2,374.1

LIABILITIES AND EQUITY:

Current Liabilities, Excluding Debt:
Accounts Payable: ¥B ¥ 89.2 ¥ 90.9 ¥ 93.7 ¥ 106.3 ¥ 95.0 ¥ 93.7
Other Current Liabilities: ¥B 385.5 375.6 474.3 423.1 433.9 474.3
Total Current Liabilities, Excluding Debt: ¥B 474.7 466.5 568.0 529.3 528.9 568.0

Non-Current Liabilities, Including All Debt:

Total Debt: ¥B 610.4 596.8 579.1 685.0 614.9 579.1
Accrued Pension And Postretirement Benefits: ¥B 11.2 11.5 11.3 11.2 11.4 11.3
Other Non-Current Liabilities: ¥B 98.4 119.4 158.9 144.2 150.7 158.9
Total Non-Current Liabilities, Incl. All Debt: ¥B 720.0 727.8 749.3 840.3 776.9 749.3

Total Liabilities: ¥B ¥ 1,194.7 ¥ 1,194.3 ¥ 1,317.3 ¥ 1,369.7 ¥ 1,305.8 ¥ 1,317.3

Equity:
Common Stock & APIC: ¥B ¥ 70.0 ¥ 49.4 ¥ 48.9 ¥ 49.4 ¥ 49.4 ¥ 48.9
Accumulated Other Comprehensive Income: ¥B (59.2) (16.1) 56.4 26.9 27.0 56.4
Treasury Stock: ¥B (4.0) (3.3) (3.3) (3.3) (3.3) (3.3)
Retained Earnings: ¥B 453.9 477.8 666.1 500.1 654.1 666.1
Total Shareholders' Equity: ¥B 460.8 507.8 768.0 573.1 727.2 768.0
Noncontrolling Interests: ¥B 27.6 25.9 288.7 54.8 267.4 288.7
Total Equity: ¥B ¥ 488.3 ¥ 533.7 ¥ 1,056.7 ¥ 627.9 ¥ 994.6 ¥ 1,056.7

Total Liabilities and Equity: ¥B ¥ 1,683.0 ¥ 1,728.0 ¥ 2,374.1 ¥ 1,997.6 ¥ 2,300.4 ¥ 2,374.1

Balance Sheet Check: ($0) ($0) ($0) $0 $0 ($0)

 Historical
Cash Flow Statement: Units 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13

CASH FLOWS FROM OPERATING ACTIVITIES:

Net Income Attributable to Parent: ¥B
Less: Equity in Earnings of Affiliate: ¥B
Plus: Net Income Attributable to Noncontr. Int.: ¥B
Adjustments for Non-Cash Items:
Depreciation & Amortization: ¥B
Goodwill Amortization: ¥B
Amortization of Other Intangibles: ¥B
Changes in Operating Assets and Liabilities:
Change in Accounts Receivable: ¥B
Change in Inventories: ¥B
Change in Accounts Payable: ¥B
Change in Other Assets: ¥B
Change in Accrued Expenses & Other Liabilities: ¥B
Net Cash from Operating Activities: ¥B

CASH FLOWS FROM INVESTING ACTIVITIES:

Capital Expenditures: ¥B
Net Cash from Investing Activities: ¥B

CASH FLOWS FROM FINANCING ACTIVITIES:

Debt Repayment: ¥B
Finance Lease Repayment: ¥B
Issuances of Debt: ¥B
Dividends Paid: ¥B
Stock Repurchases: ¥B
Stock Issuances and Other Financing Activities: ¥B
Net Cash from Financing Activities: ¥B

Effect of FX Rate Changes on Cash: ¥B

Change in Cash and Cash Equivalents: ¥B

Beginning Cash: ¥B
Ending Cash: ¥B ¥ 418.7
 Historical
Key Metrics and Ratios: Units 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13

EBITDA Calculation:
Operating Income: ¥B ¥ 8.2 ¥ 29.8 ¥ 38.2 ¥ 31.5 ¥ 14.1 ¥ 34.6 ¥ 40.7 ¥ 37.1
Depreciation & Amortization: ¥B 13.0 13.0 14.2 14.2 15.3 15.3 16.4 16.4
Goodwill Amortization: ¥B 5.2 5.2 5.0 5.0 5.9 5.9 6.1 6.1
Amortization of Other Intangibles: ¥B - - - - - - - -
EBITDA: ¥B ¥ 26.5 ¥ 48.1 ¥ 57.4 ¥ 50.7 ¥ 35.4 ¥ 55.9 ¥ 63.2 ¥ 59.6

Shareholders' Equity: ¥B 460.8 507.8 768.0 573.1 727.2 768.0

Total Debt: ¥B 610.4 596.8 579.1 685.0 614.9 579.1
Net Debt: ¥B 385.4 368.7 160.4 390.1 (28.1) 160.4
Net Capital: ¥B 846.2 876.5 928.4 963.1 699.2 928.4

Revenue Growth: % N/A N/A 4.7% 10.7% 12.3% 11.9%

Gross Margin: % 50.7% 49.0% 50.5% 50.7% 50.9% 48.8%
Operating Margin: % 6.2% 6.6% 3.5% 6.5% 7.2% 6.9%
EBITDA Margin: % 10.0% 10.6% 8.7% 10.5% 11.2% 11.1%
Net Margin: % 2.5% 2.2% 1.2% 4.7% 27.3% 2.2%

Effective Tax Rate: % 51.3% 56.7% 48.3% 17.5% 24.0% 39.1%

D&A % Revenue: % 2.7% 3.0% 3.8% 2.9% 2.9% 3.1%

CapEx % Revenue: % 3.5% 4.0% 5.1% 3.9% 4.3% 4.5%

Total Debt / Annualized EBITDA: x 3.2 x 2.9 x 4.0 x 3.1 x 2.5 x 2.4 x
Net Debt / Annualized EBITDA: x 2.0 x 1.8 x 1.1 x 1.8 x -0.1 x 0.7 x
EBITDA / Net Interest Expense: x -140.7 x 66.7 x 21.5 x 58.5 x 29.9 x 41.4 x

Total Debt / Equity: x 1.3 x 1.2 x 0.8 x 1.2 x 0.8 x 0.8 x

Total Debt / Capital: % 57.0% 54.0% 43.0% 54.4% 45.8% 43.0%
Net Debt / Equity: x 0.8 x 0.7 x 0.2 x 0.7 x 0.0 x 0.2 x
Net Debt / Net Capital: % 45.5% 42.1% 17.3% 40.5% (4.0%) 17.3%
 Projected Historical Projected
1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 FY12 FY13 FY14 FY15

¥ 239.9 ¥ 324.8 ¥ 354.2 ¥ 318.2 ¥ 256.7 ¥ 347.5 ¥ 386.1 ¥ 350.1 ¥ 991.0 ¥ 1,121.3 ¥ 1,237.1 ¥ 1,340.4
¥ 120.0 ¥ 148.4 ¥ 157.1 ¥ 166.6 ¥ 121.8 ¥ 150.6 ¥ 162.6 ¥ 172.4 554.9 574.4 592.1 607.5
¥ 80.2 ¥ 100.3 ¥ 115.1 ¥ 107.4 ¥ 85.0 ¥ 106.3 ¥ 130.1 ¥ 116.0 326.8 366.5 403.1 437.5
(4.6) (5.6) (5.9) (6.0) (4.6) (5.6) (5.9) (6.0) (21.1) (22.0) (22.0) (22.0)
435.6 567.9 620.6 586.3 459.0 598.8 672.9 632.5 1,851.6 2,040.2 2,210.3 2,363.3
6.7% 6.8% 10.0% 9.4% 5.4% 5.5% 8.4% 7.9% N/A 10.2% 8.3% 6.9%

9.0% 9.0% 11.0% 12.0% 7.0% 7.0% 9.0% 10.0% N/A 13.2% 10.3% 8.3%
2.0% 2.0% 4.0% 4.0% 1.5% 1.5% 3.5% 3.5% N/A 3.5% 3.1% 2.6%
7.0% 7.0% 15.0% 10.0% 6.0% 6.0% 13.0% 8.0% N/A 12.1% 10.0% 8.5%

11.8 26.3 33.5 26.6 12.6 28.1 36.5 29.3 76.0 91.3 98.2 106.6
2.2 9.7 11.2 13.5 2.3 9.8 11.6 13.9 32.0 37.3 36.6 37.6
5.0 9.6 11.0 8.7 5.3 10.2 12.4 9.4 28.8 29.7 34.3 37.3
(7.0) (7.9) (8.5) (8.4) (7.0) (7.9) (8.5) (8.4) (29.0) (31.8) (31.8) (31.8)
12.0 37.7 47.2 40.4 13.2 40.2 52.0 44.2 107.7 126.6 137.3 149.7
2.8% 6.6% 7.6% 6.9% 2.9% 6.7% 7.7% 7.0% 5.8% 6.2% 6.2% 6.3%

4.9% 8.1% 9.5% 8.4% 4.9% 8.1% 9.5% 8.4% 7.7% 8.1% 7.9% 8.0%
1.9% 6.5% 7.1% 8.1% 1.9% 6.5% 7.1% 8.1% 5.8% 6.5% 6.2% 6.2%
6.2% 9.6% 9.6% 8.1% 6.2% 9.6% 9.6% 8.1% 8.8% 8.1% 8.5% 8.5%

217.2 279.9 304.5 299.6 228.9 295.1 330.1 323.2 923.3 1,015.4 1,101.1 1,177.3
49.9% 49.3% 49.1% 51.1% 49.9% 49.3% 49.1% 51.1% 49.9% 49.8% 49.8% 49.8%

3.3 3.2 3.1 2.7 2.3 2.3 2.3 2.2 9.9 11.9 12.3 9.1
0.6% 0.6% 0.6% 0.6% 0.6% 0.6% 0.6% 0.6% 1.7% 2.0% 2.5% 2.3%

(1.5) (1.5) (1.2) (1.3) (1.3) (1.2) (1.0) (1.3) (4.7) (5.8) (5.4) (4.9)
0.4% 0.4% 0.4% 0.4% 0.4% 0.4% 0.4% 0.4% 2.0% 1.8% 1.4% 1.2%

1.7 1.6 4.2 1.9 1.7 1.6 4.2 1.9 9.4 (165.3) 9.4 9.4

- - - - - - - - 0.6 0.1 - -

2.7 5.9 7.5 6.0 2.8 6.3 8.2 6.6 7.3 16.8 22.1 24.0
22.5% 22.5% 22.5% 22.5% 22.5% 22.5% 22.5% 22.5% 9.6% 18.4% 22.5% 22.5%
 Projected Historical Projected
1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 FY12 FY13 FY14 FY15

365 365 365 365 365 365 365 365 366 365 365 365
90 92 92 91 90 92 92 91 366 365 365 365
24.7% 25.2% 25.2% 24.9% 24.7% 25.2% 25.2% 24.9% 100.0% 100.0% 100.0% 100.0%

17.8% 13.7% 12.3% 13.7% 17.8% 13.7% 12.3% 13.7% 14.3% 14.0% 14.6% 14.7%
65.0 50.0 45.0 50.0 65.0 50.0 45.0 50.0 52.3 51.2 53.2 53.7

27.4% 20.5% 20.0% 20.0% 27.4% 20.5% 20.0% 20.0% 19.9% 22.1% 21.8% 22.0%
100.0 75.0 73.0 73.0 100.0 75.0 73.0 73.0 72.8 80.6 79.7 80.4

4.8% 5.1% 3.5% 3.7% 4.8% 5.1% 3.5% 3.7% 4.1% 3.9% 3.9% 3.9%
4.4% 3.7% 3.5% 3.4% 4.4% 3.7% 3.5% 3.4% 4.1% 3.5% 3.6% 3.6%

11.5% 9.9% 8.8% 8.8% 11.5% 9.9% 8.8% 8.8% 9.8% 9.2% 9.6% 9.7%
42.0 36.0 32.0 32.0 42.0 36.0 32.0 32.0 36.0 33.7 34.9 35.2

60.0% 45.0% 45.0% 55.0% 60.0% 45.0% 45.0% 55.0% 45.8% 52.8% 55.9% 56.4%

1.5% 1.2% 1.2% 1.2% 1.5% 1.2% 1.2% 1.2% 1.4% 1.3% 1.2% 1.2%
20.0% 15.0% 15.0% 17.0% 20.0% 15.0% 15.0% 17.0% 14.6% 17.7% 17.3% 17.4%

20.9 22.1 21.7 26.4 22.9 24.6 24.9 29.7 54.4 63.4 91.2 102.1
4.8% 3.9% 3.5% 4.5% 5.0% 4.1% 3.7% 4.7% 2.9% 3.1% 4.1% 4.3%

6.1 6.1 6.1 6.1 6.1 6.1 6.1 6.1 20.5 24.1 24.4 24.4
- - - - - - - - - - - -

- 2.8 - -
N/A 1.5% – –

23.1 23.3 27.9 27.6 25.2 25.8 31.6 31.0 71.4 90.0 101.9 113.6
5.3% 4.1% 4.5% 4.7% 5.5% 4.3% 4.7% 4.9% 3.9% 4.4% 4.6% 4.8%

2.7 3.8 1.8 1.7 3.7 4.2 2.1 1.9 13.7 13.7 10.0 11.9
100.0% 25.0% 10.0% 10.0% 100.0% 25.0% 10.0% 10.0% 37.5% 7.0% 18.9% 19.7%

16.4 16.4 65.8 65.8 3.4 3.4 13.5 13.5 108.2 51.6 164.5 33.7
0.8 0.8 0.8 0.8 0.8 0.8 0.8 0.8 3.5 3.1 3.2 3.2
- - - - - - - - - - - -

- - - - - - - - - - - -
- - - - - - - - - 275.5 - -

2.2 2.8 3.1 2.9 2.3 3.0 3.4 3.2 3.5 7.3 11.1 11.8
0.5% 0.5% 0.5% 0.5% 0.5% 0.5% 0.5% 0.5% 0.2% 0.4% 0.5% 0.5%
 Projected Historical Projected
1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 FY12 FY13 FY14 FY15

¥ 435.6 ¥ 567.9 ¥ 620.6 ¥ 586.3 ¥ 459.0 ¥ 598.8 ¥ 672.9 ¥ 632.5 ¥ 1,851.6 ¥ 2,040.2 ¥ 2,210.3 ¥ 2,363.3
217.2 279.9 304.5 299.6 228.9 295.1 330.1 323.2 923.3 1,015.4 1,101.1 1,177.3
218.4 288.0 316.1 286.7 230.1 303.7 342.8 309.4 928.3 1,024.8 1,109.2 1,186.0
50.1% 50.7% 50.9% 48.9% 50.1% 50.7% 50.9% 48.9% 50.1% 50.2% 50.2% 50.2%

206.4 250.3 268.9 246.3 217.0 263.5 290.8 265.1 820.6 898.3 972.0 1,036.3

12.0 37.7 47.2 40.4 13.2 40.2 52.0 44.2 107.7 126.6 137.3 149.7
2.8% 6.6% 7.6% 6.9% 2.9% 6.7% 7.7% 7.0% 5.8% 6.2% 6.2% 6.3%

3.3 3.2 3.1 2.7 2.3 2.3 2.3 2.2 9.9 11.9 12.3 9.1
(1.5) (1.5) (1.2) (1.3) (1.3) (1.2) (1.0) (1.3) (4.7) (5.8) (5.4) (4.9)
1.7 1.6 4.2 1.9 1.7 1.6 4.2 1.9 9.4 (165.3) 9.4 9.4
3.4 3.3 6.1 3.3 2.7 2.7 5.5 2.8 14.6 (159.1) 16.2 13.7

- - - - - - - - 0.6 0.1 - -

8.6 34.3 41.1 37.1 10.5 37.5 46.5 41.4 93.7 285.8 121.1 136.0
3.3 13.0 15.6 14.1 4.0 14.3 17.7 15.7 49.8 73.4 46.0 51.7
5.3 21.3 25.5 23.0 6.5 23.3 28.9 25.7 43.9 212.4 75.1 84.3

2.7 5.9 7.5 6.0 2.8 6.3 8.2 6.6 7.3 16.8 22.1 24.0

¥ 2.7 ¥ 15.4 ¥ 17.9 ¥ 17.0 ¥ 3.7 ¥ 16.9 ¥ 20.6 ¥ 19.1 ¥ 36.6 ¥ 195.6 ¥ 53.0 ¥ 60.3

¥ 3.89 ¥ 22.53 ¥ 26.30 ¥ 24.91 ¥ 5.36 ¥ 24.84 ¥ 30.25 ¥ 28.00 ¥ 53.74 ¥ 286.67 ¥ 77.63 ¥ 88.45

¥ 9.44 ¥ 28.08 ¥ 31.84 ¥ 30.46 ¥ 10.90 ¥ 30.39 ¥ 35.80 ¥ 33.54 ¥ 67.85 ¥ 312.91 ¥ 99.82 ¥ 110.63

682.200 682.200 682.200 682.200 682.200 682.200 682.200 682.200 681.667 682.238 682.200 682.200
 Projected Historical Projected
1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 FY12 FY13 FY14 FY15

¥ 399.9 ¥ 322.2 ¥ 344.8 ¥ 365.0 ¥ 337.1 ¥ 270.1 ¥ 351.7 ¥ 431.4 ¥ 228.1 ¥ 418.7 ¥ 365.0 ¥ 431.4
314.6 308.6 303.5 322.1 331.5 325.5 329.2 347.5 264.7 286.4 322.1 347.5
241.3 228.2 241.6 240.3 254.3 240.6 262.0 259.3 183.7 224.1 240.3 259.3
84.0 115.8 85.5 86.1 88.5 122.1 92.7 92.8 76.7 78.7 86.1 92.8
1,039.8 974.8 975.4 1,013.5 1,011.4 958.3 1,035.4 1,131.0 753.3 1,007.8 1,013.5 1,131.0

529.4 530.6 536.8 538.0 540.3 541.5 548.2 549.4 420.2 527.3 538.0 549.4
403.2 397.1 391.0 384.9 378.8 372.7 366.6 360.5 354.6 409.3 384.9 360.5
241.1 241.1 241.1 241.1 241.1 241.1 241.1 241.1 25.9 241.1 241.1 241.1
116.3 116.3 116.3 116.3 116.3 116.3 116.3 116.3 97.1 116.3 116.3 116.3
77.1 83.8 85.0 79.0 81.2 88.4 92.1 85.3 76.8 72.3 79.0 85.3
1,367.2 1,368.9 1,370.2 1,359.3 1,357.7 1,359.9 1,364.3 1,352.6 974.7 1,366.2 1,359.3 1,352.6

¥ 2,406.9 ¥ 2,343.7 ¥ 2,345.5 ¥ 2,372.8 ¥ 2,369.1 ¥ 2,318.2 ¥ 2,399.8 ¥ 2,483.6 ¥ 1,728.0 ¥ 2,374.1 ¥ 2,372.8 ¥ 2,483.6

¥ 101.4 ¥ 109.5 ¥ 105.9 ¥ 105.3 ¥ 106.8 ¥ 115.5 ¥ 114.8 ¥ 113.6 ¥ 90.9 ¥ 93.7 ¥ 105.3 ¥ 113.6
502.2 446.9 480.2 543.4 527.9 470.3 519.1 584.9 375.6 474.3 543.4 584.9
603.6 556.4 586.1 648.8 634.8 585.8 634.0 698.5 466.5 568.0 648.8 698.5

561.8 544.6 478.0 411.4 407.2 403.1 388.8 374.5 596.8 579.1 411.4 374.5
12.6 11.9 12.8 11.9 13.2 12.5 13.8 12.8 11.5 11.3 11.9 12.8
167.4 149.0 160.1 168.0 176.0 156.8 173.0 180.8 119.4 158.9 168.0 180.8
741.8 705.5 650.8 591.2 596.4 572.4 575.6 568.0 727.8 749.3 591.2 568.0

¥ 1,345.4 ¥ 1,261.8 ¥ 1,236.9 ¥ 1,240.0 ¥ 1,231.2 ¥ 1,158.2 ¥ 1,209.6 ¥ 1,266.5 ¥ 1,194.3 ¥ 1,317.3 ¥ 1,240.0 ¥ 1,266.5

¥ 48.9 ¥ 48.9 ¥ 48.9 ¥ 48.9 ¥ 48.9 ¥ 48.9 ¥ 48.9 ¥ 48.9 ¥ 49.4 ¥ 48.9 ¥ 48.9 ¥ 48.9
58.6 61.4 64.5 67.4 69.7 72.7 76.1 79.3 (16.1) 56.4 67.4 79.3
(3.3) (3.3) (3.3) (3.3) (3.3) (3.3) (3.3) (3.3) (3.3) (3.3) (3.3) (3.3)
666.1 677.6 693.7 709.0 709.0 721.7 740.3 757.5 477.8 666.1 709.0 757.5
770.2 784.6 803.8 822.0 824.3 840.0 862.0 882.3 507.8 768.0 822.0 882.3
291.4 297.3 304.8 310.8 313.7 320.0 328.2 334.8 25.9 288.7 310.8 334.8
¥ 1,061.6 ¥ 1,081.8 ¥ 1,108.6 ¥ 1,132.8 ¥ 1,138.0 ¥ 1,160.0 ¥ 1,190.2 ¥ 1,217.1 ¥ 533.7 ¥ 1,056.7 ¥ 1,132.8 ¥ 1,217.1

¥ 2,406.9 ¥ 2,343.7 ¥ 2,345.5 ¥ 2,372.8 ¥ 2,369.1 ¥ 2,318.2 ¥ 2,399.8 ¥ 2,483.6 ¥ 1,728.0 ¥ 2,374.1 ¥ 2,372.8 ¥ 2,483.6

($0) ($0) ($0) ($0) ($0) ($0) ($0) ($0) ($0) ($0) ($0) ($0)
 Projected Historical Projected
1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 FY12 FY13 FY14 FY15

¥ 2.7 ¥ 15.4 ¥ 17.9 ¥ 17.0 ¥ 3.7 ¥ 16.9 ¥ 20.6 ¥ 19.1 ¥ 53.0 ¥ 60.3
- - - - - - - - - -
2.7 5.9 7.5 6.0 2.8 6.3 8.2 6.6 22.1 24.0

20.9 22.1 21.7 26.4 22.9 24.6 24.9 29.7 91.2 102.1
6.1 6.1 6.1 6.1 6.1 6.1 6.1 6.1 24.4 24.4
- - - - - - - - - -

(28.2) 6.0 5.1 (18.6) (9.4) 6.0 (3.7) (18.4) (35.8) (25.4)
(17.2) 13.2 (13.4) 1.3 (14.0) 13.7 (21.4) 2.7 (16.2) (19.0)
7.7 8.2 (3.6) (0.6) 1.5 8.7 (0.7) (1.2) 11.6 8.3
(10.1) (38.5) 29.2 5.4 (4.6) (40.8) 25.7 6.7 (14.2) (13.0)
37.6 (74.4) 45.3 70.2 (6.1) (77.4) 66.3 72.4 78.7 55.2
¥ 22.0 -¥ 36.1 ¥ 115.8 ¥ 113.2 ¥ 2.9 -¥ 35.9 ¥ 126.2 ¥ 123.7 ¥ 214.9 ¥ 216.9

-¥ 23.1 -¥ 23.3 -¥ 27.9 -¥ 27.6 -¥ 25.2 -¥ 25.8 -¥ 31.6 -¥ 31.0 -¥ 101.9 -¥ 113.6
-¥ 23.1 -¥ 23.3 -¥ 27.9 -¥ 27.6 -¥ 25.2 -¥ 25.8 -¥ 31.6 -¥ 31.0 -¥ 101.9 -¥ 113.6

-¥ 16.4 -¥ 16.4 -¥ 65.8 -¥ 65.8 -¥ 3.4 -¥ 3.4 -¥ 13.5 -¥ 13.5 -¥ 164.5 -¥ 33.7
(0.8) (0.8) (0.8) (0.8) (0.8) (0.8) (0.8) (0.8) (3.2) (3.2)
- -
(2.7) (3.8) (1.8) (1.7) (3.7) (4.2) (2.1) (1.9) (10.0) (11.9)
- - - - - - - - - -
- - - - - - - - - -
-¥ 19.9 -¥ 21.1 -¥ 68.4 -¥ 68.3 -¥ 7.8 -¥ 8.4 -¥ 16.4 -¥ 16.2 -¥ 177.7 -¥ 48.8

2.2 2.8 3.1 2.9 2.3 3.0 3.4 3.2

-¥ 18.8 -¥ 77.6 ¥ 22.6 ¥ 20.3 -¥ 27.9 -¥ 67.0 ¥ 81.6 ¥ 79.7 -¥ 64.7 ¥ 54.5
418.7 399.9 322.2 344.8 365.0 337.1 270.1 351.7 418.7 354.0
¥ 399.9 ¥ 322.2 ¥ 344.8 ¥ 365.0 ¥ 337.1 ¥ 270.1 ¥ 351.7 ¥ 431.4 ¥ 354.0 ¥ 408.5
 Projected Historical Projected
1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 FY12 FY13 FY14 FY15

¥ 12.0 ¥ 37.7 ¥ 47.2 ¥ 40.4 ¥ 13.2 ¥ 40.2 ¥ 52.0 ¥ 44.2 ¥ 107.7 ¥ 126.6 ¥ 137.3 ¥ 149.7
20.9 22.1 21.7 26.4 22.9 24.6 24.9 29.7 54.4 63.4 91.2 102.1
6.1 6.1 6.1 6.1 6.1 6.1 6.1 6.1 20.5 24.1 24.4 24.4
- - - - - - - - - - - -
¥ 39.0 ¥ 65.9 ¥ 75.0 ¥ 72.9 ¥ 42.2 ¥ 70.9 ¥ 83.0 ¥ 80.1 ¥ 182.7 ¥ 214.1 ¥ 252.8 ¥ 276.2

770.2 784.6 803.8 822.0 824.3 840.0 862.0 882.3 507.8 768.0 822.0 882.3
561.8 544.6 478.0 411.4 407.2 403.1 388.8 374.5 596.8 579.1 411.4 374.5
162.0 222.4 133.2 46.4 70.1 132.9 37.1 (56.9) 368.7 160.4 46.4 (56.9)
932.2 1,006.9 937.0 868.4 894.4 973.0 899.1 825.4 876.5 928.4 868.4 825.4

6.7% 6.8% 10.0% 9.4% 5.4% 5.5% 8.4% 7.9% N/A 10.2% 8.3% 6.9%
50.1% 50.7% 50.9% 48.9% 50.1% 50.7% 50.9% 48.9% 50.1% 50.2% 50.2% 50.2%
2.8% 6.6% 7.6% 6.9% 2.9% 6.7% 7.7% 7.0% 5.8% 6.2% 6.2% 6.3%
9.0% 11.6% 12.1% 12.4% 9.2% 11.8% 12.3% 12.7% 9.9% 10.5% 11.4% 11.7%
0.6% 2.7% 2.9% 2.9% 0.8% 2.8% 3.1% 3.0% 2.0% 9.6% 2.4% 2.6%

38.0% 38.0% 38.0% 38.0% 38.0% 38.0% 38.0% 38.0% 53.1% 25.7% 38.0% 38.0%

4.8% 3.9% 3.5% 4.5% 5.0% 4.1% 3.7% 4.7% 2.9% 3.1% 4.1% 4.3%
5.3% 4.1% 4.5% 4.7% 5.5% 4.3% 4.7% 4.9% 3.9% 4.4% 4.6% 4.8%

3.6 x 2.1 x 1.6 x 1.4 x 2.4 x 1.4 x 1.2 x 1.2 x 3.3 x 2.7 x 1.6 x 1.4 x
1.0 x 0.9 x 0.4 x 0.2 x 0.4 x 0.5 x 0.1 x -0.2 x 2.0 x 0.7 x 0.2 x -0.2 x
22.3 x 38.4 x 39.4 x 50.4 x 42.5 x 66.1 x 64.1 x 87.6 x 34.9 x 34.8 x 37.1 x 64.6 x

0.7 x 0.7 x 0.6 x 0.5 x 0.5 x 0.5 x 0.5 x 0.4 x 1.2 x 0.8 x 0.5 x 0.4 x
42.2% 41.0% 37.3% 33.4% 33.1% 32.4% 31.1% 29.8% 54.0% 43.0% 33.4% 29.8%
0.2 x 0.3 x 0.2 x 0.1 x 0.1 x 0.2 x 0.0 x -0.1 x 0.7 x 0.2 x 0.1 x -0.1 x
17.4% 22.1% 14.2% 5.3% 7.8% 13.7% 4.1% (6.9%) 42.1% 17.3% 5.3% (6.9%)
Merger Model - Cross-Border Transaction - Suntory Holdings Limited and BEAM Inc.
(¥ JPY in Billions and $ USD in Millions, Except Per Share and Per Unit Data)

Transaction Assumptions:

Acquirer Name: Suntory Holdings Limited Target Name: BEAM Inc.

Acquirer Type: Private Target - Current Share Price ($ in USD): $ 66.97
FX Rate - ¥ per $0.001 USD: 0.104860
Transaction Close Date: 2014-06-30 Target - "Undisturbed" Share Price: $ 66.97
# of Periods in Each Year of Model: 4 Premium Paid to Target's Share Price: 24.7%
Offer Price per Share: $ 83.50
Allow Circular References? Yes
Refinance Target Company's Debt? No Revenue Synergy Toggle: 0.0%
Debt Interest Rate Toggle: 0.0%

Valuation of Target: ¥ in Billions $ in Millions Valuation of Target at Purchase Price: ¥ in Billions $ in Millions
Current Equity Value (¥ in Billions): ¥ 1,175.6 $ 11,210.9 Purchase Equity Value: ¥ 1,473.0 $ 14,046.8
Current Enterprise Value (¥ in Billions): ¥ 1,356.2 12,933.7 Purchase Enterprise Value: ¥ 1,653.6 15,769.6

LTM EV / Revenue: 5.1 x Implied LTM EV / Revenue Multiple: 6.2 x

LTM EV / EBITDA: 17.5 x Implied LTM EV / EBITDA Multiple: 21.4 x
Forward EV / Revenue: 4.9 x Implied Forward EV / Revenue: 5.9 x
Forward EV / EBITDA: 15.4 x Implied Forward EV / EBITDA: 18.8 x

Fees and Other Assumptions: ¥ in Billions $ in Millions Amounts Used: Pre-Tax After-Tax
Advisory Fee %: 0.5% ¥ 7.4 Transaction Funding Source: % Used: ¥ in Billions $ in Millions Cost: Cost:
Debt Issuance Fee %: 1.5% 19.9 Cash Used: 10.0% ¥ 147.3 $ 1,404.7 1.4% 0.9%
Amortization Period (Years): 5 Debt Issued: 90.0% ¥ 1,325.7 $ 12,642.2 2.8% 1.7%
Legal and Other Fees: ¥ 1.5 14.3 Shares Issued: 0.0% - - N/A N/A
Combined Co. Minimum Cash Balance: ¥ 125.0 1,192.1 Weighted Average Acquisition Cost: 1.6%
Maximum Cash Available for Use in Deal: ¥ 231.9 Target's "Yield": 3.1%

Funds Required: ¥ in Billions $ in Millions

Equity Purchase Price: ¥ 1,473.0 $ 14,046.8
Plus: Debt Refinanced: - -
Less: Excess Cash Used to Fund Deal: ¥ - -
Total Funds Required (Excl. Fees): ¥ 1,473.0 $ 14,046.8
Sources & Uses of Funds:

Sources of Funds: ¥ in Billions $ in Millions Uses of Funds: ¥ in Billions $ in Millions

Acquirer's Cash: ¥ 147.3 $ 15.4 Equity Value of Company: ¥ 1,473.0 $ 14,046.8
Acquirer's Debt Issued: 1,325.7 139.0 Advisory & Legal Fees: 8.9 84.5
Target Debt Assumed: 213.0 2,030.9 Capitalized Financing Fees: 19.9 189.6
Additional Cash for Transaction Fees: 28.7 274.2 Target Debt Assumed: 213.0 2,030.9
Total Sources: ¥ 1,714.7 $ 2,459.5 Target Debt Refinanced: - -
Total Uses: ¥ 1,714.7 $ 16,351.9

Debt Assumptions:

Debt Amounts: % ¥ in Billions $ in Millions Other Debt Information: Interest: Toggled: Principal:
Total Amount of Debt Used: 1,325.7 12,642.2
% Senior Notes: 50.0% 662.8 6,321.1 Senior Notes: 2.00% 2.00% 1.00%
% Subordinated Notes: 37.5% 497.1 4,740.8 Subordinated Notes: 4.00% 4.00% 0.00%
% Dollar Bonds: 12.5% 165.7 1,580.3 Dollar Bonds: 2.00% 2.00% 0.00%

Purchase Price Allocation:

Goodwill Calculation: ¥ in Billions $ in Millions Fixed Asset Write-Up: ¥ in Billions $ in Millions

Equity Purchase Price: ¥ 1,473.0 $ 14,046.8 PP&E Write-Up: 5.0% ¥ 4.3 $ 41.2
Less: Seller Book Value: (553.2) (5,275.3) Depreciation Period (Years): 8
Plus: Write-Off of Existing Goodwill: 268.2 2,557.8 Yearly Depreciation Expense: 0.5
Total Allocable Purchase Premium: ¥ 1,188.0 $ 11,329.3
Intangible Asset Write-Up:
Less: Write-Up of PP&E: (4.3) (41.2) Excess Purchase Price to Allocate: ¥ 1,188.0 $ 11,329.3
Less: Write-Up of Intangibles: (1,033.6) (9,856.5) Indefinite-lived Intangibles 82.0% 974.2 9,290.0
Less: Write-Off of Existing DTL: (55.9) (532.9)
Plus: Write-Off of Existing DTA: - - Definite-lived Intangibles 5.0% 59.4 566.5
Plus: New Deferred Tax Liability: 693.9 6,617.2 Amortization Period (Years): 5
Total Goodwill Created: 788.1 7,515.9 Yearly Amortization Expense: 11.9 113.3

Goodwill Amortization Period (Years) 20 New Deferred Tax Liability: 693.9 6,617.2
Yearly Goodwill Amortization Expense: 39.4 375.8

Fiscal Year: 2014 2014 2014 2014 2014 2015 2015 2015 2015 2014 2015
 Acquirer - Standalone Period Transaction Adjustments Combined Company Period Annual Roll-Up
Combined Income Statement: Units: 1Q14 2Q14 Debit Credit 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 FY14 FY15

Acquirer - Revenue: ¥B ¥ 435.6 ¥ 567.9 ¥ 620.6 ¥ 586.3 ¥ 459.0 ¥ 598.8 ¥ 672.9 ¥ 632.5 ¥ 2,210.3 ¥ 2,363.3
Target - Revenue: ¥B 65.3 80.9 65.0 72.5 67.5 84.6
Revenue Synergies: ¥B 0.9 1.1 1.4 1.5 1.4 1.7
Total Revenue: ¥B 435.6 567.9 686.7 668.3 525.5 672.8 741.8 718.9

Acquirer - Cost of Goods Sold: ¥B 217.2 279.9 304.5 299.6 228.9 295.1 330.1 323.2
Target - Cost of Goods Sold: ¥B 27.2 35.0 26.2 30.1 28.2 36.6
COGS Associated w/ Rev. Synergies ¥B 0.4 0.5 0.6 0.6 0.6 0.7
Total COGS: ¥B 217.2 279.9 332.1 335.0 255.7 325.8 358.9 360.5

Gross Profit: ¥B 218.4 288.0 354.7 333.3 269.8 347.0 382.9 358.4

Acquirer - Operating Expenses: ¥B 206.4 250.3 268.9 246.3 217.0 263.5 290.8 265.1
Target - Operating Expenses: ¥B 21.7 24.9 19.2 23.3 22.1 25.7
OpEx Associated w/ Rev. Synergies ¥B 0.3 0.4 0.6 0.6 0.5 0.6
OpEx Synergies: ¥B (0.1) (0.2) (0.2) (0.3) (0.3) (0.4)
Amortization of New Intangibles: ¥B 3.0 3.0 3.0 3.0 3.0 3.0
Amortization of New Goodwill: ¥B 9.9 9.9 9.9 9.9 9.9 9.9
Depreciation from PP&E Write-Up: ¥B 0.1 0.1 0.1 0.1 0.1 0.1
Operating Income: ¥B 12.0 37.7 50.9 48.9 20.3 46.9 56.8 54.4

Acquirer - Net Interest Expense: ¥B 3.4 3.3 6.1 3.3 2.7 2.7 5.5 2.8
Target - Net Interest Expense: ¥B 2.8 1.6 1.0 2.4 2.0 0.8
Foregone Interest on Cash: ¥B 0.6 0.6 0.6 0.6 0.6 0.6
Interest Paid on New Debt Issued: ¥B 8.9 8.6 8.6 8.9 8.9 8.4
Interest Saved on Refinanced Debt: ¥B - - - - - -
Amortization of Financing Fees: ¥B 1.0 1.0 1.0 1.0 1.0 1.0
Net Interest Expense: ¥B 3.4 3.3 19.4 15.2 13.9 15.6 17.9 13.6

Equity in Earnings of Affiliates: ¥B - - - - - - - -

Earnings Before Income Taxes: ¥B 8.6 34.3 31.5 33.7 6.4 31.2 38.9 40.7
Income Tax Provision: ¥B 3.3 13.0 12.0 12.8 2.4 11.9 14.8 15.5
Net Income: ¥B 5.3 21.3 19.5 20.9 4.0 19.4 24.1 25.3

Net Income Attributable to NCI: ¥B 2.7 5.9 7.5 6.0 2.8 6.3 8.2 6.6

Net Income Attributable to Parent: ¥B 2.7 15.4 12.0 14.9 1.1 13.0 15.9 18.7

Acquirer - Avg. Diluted Shares: M Shares 682.200 682.200 682.200 682.200 682.200 682.200 682.200 682.200
Shares Issued in Transaction: M Shares - - - - - -
Total Diluted Shares: M Shares 682.200 682.200 682.200 682.200 682.200 682.200 682.200 682.200

Japanese GAAP - Accretion / (Dilution) Metrics:

Acquirer - Standalone EPS: ¥ / Share ¥ 3.89 ¥ 22.53 ¥ 26.30 ¥ 24.91 ¥ 5.36 ¥ 24.84 ¥ 30.25 ¥ 28.00

Earnings Per Share (EPS): ¥ / Share ¥ 17.56 ¥ 21.87 ¥ 1.65 ¥ 19.11 ¥ 23.28 ¥ 27.37
Accretion / (Dilution) - ¥: ¥ / Share -¥ 8.74 -¥ 3.04 -¥ 3.70 -¥ 5.73 -¥ 6.97 -¥ 0.63
Accretion / (Dilution) - %: % (33.2%) (12.2%) (69.1%) (23.1%) (23.1%) (2.2%)

Pre-Tax Breakeven Synergies: ¥B ¥ 9.61 3.3 4.1 6.3 7.7 0.7

Accretion / (Dilution) Metrics Excluding Goodwill Amortization:

Acquirer - Standalone EPS: ¥ / Share ¥ 9.44 ¥ 28.08 ¥ 31.84 ¥ 30.46 ¥ 10.90 ¥ 30.39 ¥ 35.80 ¥ 33.54

Earnings Excluding Goodwill Amortization ¥ 21.87 ¥ 24.81 ¥ 11.02 ¥ 22.93 ¥ 25.77 ¥ 28.56

Earnings Per Share (EPS): ¥ / Share ¥ 32.06 ¥ 36.37 ¥ 16.15 ¥ 33.61 ¥ 37.78 ¥ 41.87
Accretion / (Dilution) - ¥: ¥ / Share ¥ 0.22 ¥ 5.92 ¥ 5.25 ¥ 3.22 ¥ 1.98 ¥ 8.32
Accretion / (Dilution) - %: % 0.7% 19.4% 48.1% 10.6% 5.5% 24.8%

Pre-Tax Breakeven Synergies: ¥B

Accretion / (Dilution) Metrics Excluding Goodwill Amortization and Non-Cash Acquisition Effects:
Acquirer - Standalone EPS: ¥ / Share ¥ 9.44 ¥ 28.08 ¥ 31.84 ¥ 30.46 ¥ 10.90 ¥ 30.39 ¥ 35.80 ¥ 33.54

Earnings excluding Goodwill Amortization and Non-Cash Acquisition Effects ¥ 24.41 ¥ 27.36 ¥ 13.56 ¥ 25.47 ¥ 28.31 ¥ 31.10

Earnings Per Share (EPS): ¥ / Share ¥ 35.79 ¥ 40.10 ¥ 19.88 ¥ 37.34 ¥ 41.51 ¥ 45.59
Accretion / (Dilution) - ¥: ¥ / Share ¥ 3.94 ¥ 9.64 ¥ 8.98 ¥ 6.95 ¥ 5.70 ¥ 12.05
Accretion / (Dilution) - %: % 12.4% 31.7% 82.3% 22.9% 15.9% 35.9%
 Acquirer and Target - Balance Sheets as of 2014-06-30 Transaction Adjustments Combined Company Period Annual Roll-Up
Combined Balance Sheet: Units: Acquirer Target Debit Credit 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 FY14 FY15
ASSETS:
Current Assets:
Cash & Cash-Equivalents: ¥B ¥ 322.2 ¥ 34.7 ¥ - -¥ 176.0 ¥ 180.9 ¥ 125.0 ¥ 125.0 ¥ 125.0 ¥ 125.0 ¥ 125.0 ¥ 125.0 ¥ 787.8 ¥ 500.0
Notes & Accounts Receivable: ¥B 308.6 56.8 - - 365.4 357.5 366.6 389.3 388.5 388.6 398.7
Inventories: ¥B 228.2 197.9 - - 426.1 433.7 443.5 457.3 446.5 460.7 471.8
Other Current Assets: ¥B 115.8 31.4 - - 147.2 116.0 123.4 118.5 154.8 124.3 131.9
Total Current Assets: ¥B 974.8 320.8 - (176.0) 1,119.6 1,032.1 1,058.5 1,090.0 1,114.8 1,098.6 1,127.3

Non-Current Assets:
Property, Plant & Equipment (PP&E ¥B 530.6 86.4 4.3 - 621.3 628.2 630.4 632.4 634.6 642.0 644.4
Goodwill: ¥B 397.1 268.2 788.1 (268.2) 1,185.2 1,169.3 1,153.3 1,137.3 1,121.4 1,105.4 1,089.5
Other Intangible Assets: ¥B 241.1 232.2 1,033.6 - 1,506.9 1,503.4 1,499.9 1,496.4 1,492.9 1,489.5 1,486.0
Capitalized Financing Fees: ¥B - - 19.9 - 19.9 18.9 17.9 16.9 15.9 14.9 13.9
Investments in Affiliates: ¥B 116.3 6.0 - - 122.3 122.3 122.3 122.3 122.3 122.3 122.3
Other Non-Current Assets: ¥B 83.8 7.5 - - 91.4 91.9 84.4 90.3 96.2 99.4 90.8
Total Non-Current Assets: ¥B 1,368.9 600.4 1,845.9 (268.2) 3,547.0 3,534.0 3,508.2 3,495.7 3,483.4 3,473.5 3,446.9

Total Assets: ¥B ¥ 2,343.7 ¥ 921.2 ¥ 1,845.9 -¥ 444.3 ¥ 4,666.6 ¥ 4,566.1 ¥ 4,566.8 ¥ 4,585.8 ¥ 4,598.2 ¥ 4,572.0 ¥ 4,574.3

LIABILITIES AND EQUITY:

Current Liabilities, Excluding Debt:
Accounts Payable: ¥B ¥ 109.5 ¥ 19.0 ¥ - ¥ - ¥ 128.5 ¥ 125.9 ¥ 133.9 ¥ 128.1 ¥ 135.2 ¥ 135.5 ¥ 143.5
Other Current Liabilities: ¥B 446.9 46.0 - - 492.8 526.7 588.9 574.7 517.5 566.7 631.7
Total Current Liabilities: ¥B 556.4 64.9 - - 621.3 652.7 722.8 702.8 652.7 702.3 775.3

Non-Current Liabilities, Including All Debt:

Total Existing Debt: ¥B 544.6 213.0 - 757.5 690.6 623.7 615.9 608.1 590.2 572.3
New Transaction Debt: ¥B - - 1,325.7 1,325.7 1,233.2 1,212.4 1,243.3 1,322.9 1,228.2 1,153.4
Deferred Income Taxes: ¥B - 55.9 (55.9) 693.9 693.9 689.1 684.9 679.9 675.1 670.4 666.3
Accrued Pensions: ¥B 11.9 13.4 - - 25.3 26.4 23.1 27.6 26.3 27.8 24.4
Other Non-Current Liabilities: ¥B 149.0 20.9 - - 169.9 181.3 184.9 198.7 178.3 194.8 198.2
Total Non-Current Liabilities: ¥B 705.5 303.2 (55.9) 2,019.5 2,972.3 2,820.7 2,729.0 2,765.4 2,810.6 2,711.3 2,614.5

Total Liabilities: ¥B ¥ 1,261.8 ¥ 368.1 -¥ 55.9 ¥ 2,019.5 ¥ 3,593.6 ¥ 3,473.4 ¥ 3,451.7 ¥ 3,468.2 ¥ 3,463.3 ¥ 3,413.5 ¥ 3,389.8

Equity:
Common Stock & APIC: ¥B ¥ 48.9 ¥ 186.8 (186.8) ¥ - ¥ 48.9 ¥ 49.3 ¥ 49.8 ¥ 50.5 ¥ 51.2 ¥ 51.6 ¥ 52.2
Accumulated Other Compr. Income ¥B 61.4 (14.7) 14.7 - 61.4 63.8 67.0 70.2 73.1 75.7 79.2
Treasury Stock: ¥B (3.3) (299.1) 299.1 - (3.3) (3.3) (3.3) (3.3) (3.3) (3.3) (3.3)
Retained Earnings: ¥B 677.6 680.1 (689.0) - 668.7 678.2 690.7 686.7 694.0 706.3 721.6
Total Shareholders' Equity: ¥B 784.6 553.2 (562.0) - 775.7 787.9 804.2 804.0 814.9 830.3 849.7
Noncontrolling Interests: ¥B 297.3 - - - 297.3 304.8 310.8 313.7 320.0 328.2 334.8
Total Equity: ¥B ¥ 1,081.8 ¥ 553.2 -¥ 562.0 ¥ - ¥ 1,073.0 ¥ 1,092.7 ¥ 1,115.0 ¥ 1,117.6 ¥ 1,134.9 ¥ 1,158.5 ¥ 1,184.4

Total Liabilities and Equity: ¥B ¥ 2,343.7 ¥ 921.2 -¥ 617.9 ¥ 2,019.5 ¥ 4,666.6 ¥ 4,566.1 ¥ 4,566.8 ¥ 4,585.8 ¥ 4,598.2 ¥ 4,572.0 ¥ 4,574.3

Balance Sheet Check: ($0) OK! ($0) ($0) ($0) ($0) ($0) ($0) ($0)
 Acquirer - Standalone Period Transaction Adjustments Combined Company Period Annual Roll-Up
Combined Cash Flow Statement: Units: 1Q14 2Q14 Debit Credit 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 FY14 FY15

CASH FLOWS FROM OPERATING ACTIVITIES:

Net Income Attributable to Parent: ¥B ¥ 2.7 ¥ 15.4 ¥ 12.0 ¥ 14.9 ¥ 1.1 ¥ 13.0 ¥ 15.9 ¥ 18.7 ¥ 44.9 ¥ 48.7
Less: Equity in Earnings of Affiliate ¥B - - - - - - - -
Plus: Net Income to NCI: ¥B 2.7 5.9 7.5 6.0 2.8 6.3 8.2 6.6
Adjustments for Non-Cash Items:
Depreciation & Amortization: ¥B 20.9 22.1 24.6 29.5 26.0 27.6 27.9 33.0
Goodwill Amortization: ¥B 6.1 6.1 6.1 6.1 6.1 6.1 6.1 6.1
Amortization of Other Intangibles: ¥B - - 0.5 0.5 0.5 0.5 0.5 0.5
Amortization of New Intangibles: ¥B - - 3.0 3.0 3.0 3.0 3.0 3.0
Amortization of New Goodwill: ¥B - - 9.9 9.9 9.9 9.9 9.9 9.9
Depreciation of PP&E Write-Up: ¥B - - 0.1 0.1 0.1 0.1 0.1 0.1
Amortization of Financing Fees: ¥B - - 1.0 1.0 1.0 1.0 1.0 1.0
Stock-Based Compensation: ¥B - - 0.4 0.6 0.6 0.7 0.4 0.6
Deferred Income Taxes: ¥B - - (4.7) (4.2) (5.0) (4.8) (4.7) (4.1)
Goodwill Impairment: ¥B - - - - - - - -
Other Non-Cash Charges: ¥B - - - - - - - -
Changes in Operating Assets and Liabilities:
Change in Accounts Receivable: ¥B (28.2) 6.0 8.0 (9.1) (22.7) 0.8 (0.1) (10.1)
Change in Inventories: ¥B (17.2) 13.2 (7.6) (9.9) (13.7) 10.8 (14.2) (11.1)
Change in Accounts Payable: ¥B 7.7 8.2 (2.6) 8.0 (5.8) 7.1 0.3 8.0
Change in Other Assets: ¥B (10.1) (38.5) 30.7 0.2 (1.1) (42.2) 27.4 0.9
Change in Accrued Exp. & Other: ¥B 37.6 (74.4) 46.4 62.4 4.1 (78.9) 67.2 65.1
Net Cash from Operating Activitie ¥B ¥ 22.0 -¥ 36.1 ¥ 135.2 ¥ 118.9 ¥ 6.9 -¥ 39.0 ¥ 148.9 ¥ 128.1

CASH FLOWS FROM INVESTING ACTIVITIES:

Capital Expenditures: ¥B -¥ 23.1 -¥ 23.3 -¥ 31.5 -¥ 31.9 -¥ 28.1 -¥ 29.9 -¥ 35.4 -¥ 35.5
Other Investing Activities: ¥B - - - - - - - -
Net Cash from Investing Activities ¥B -¥ 23.1 -¥ 23.3 -¥ 31.5 -¥ 31.9 -¥ 28.1 -¥ 29.9 -¥ 35.4 -¥ 35.5

CASH FLOW FROM FINANCING ACTIVITIES:

Finance Lease Repayment: ¥B -¥ 0.8 -¥ 0.8 -¥ 0.8 -¥ 0.8 -¥ 0.8 -¥ 0.8 -¥ 0.8 -¥ 0.8
Dividends Paid: ¥B (2.7) (3.8) (1.8) (1.7) (3.7) (4.2) (2.1) (1.9)
Acquirer - Existing Debt Repaymen ¥B (16.4) (16.4) (65.8) (65.8) (3.4) (3.4) (13.5) (13.5)
Target - Existing Debt Repayment: ¥B - - (0.3) (0.3) (3.6) (3.6) (3.6) (3.6)
Integration Costs: ¥B - - (0.7) (0.7) (1.5) (1.5) (1.5) (1.5)
Stock Repurchases: ¥B - - - - - - - -
Stock Issuances and Other: ¥B - - - - - - - -
Net Cash from Financing Activitie ¥B -¥ 19.9 -¥ 21.1 -¥ 69.5 -¥ 69.4 -¥ 12.9 -¥ 13.5 -¥ 21.4 -¥ 21.3

Effect of FX Rate Changes on Cas ¥B 2.2 2.8 2.4 3.2 3.1 2.9 2.6 3.5

New Borrowing / (Repayment): ¥B - - (92.4) (20.9) 31.0 79.5 (94.7) (74.8)

Change in Cash & Cash-Equivalent ¥B -¥ 18.8 -¥ 77.6 -¥ 55.9 ¥ - ¥ - ¥ - ¥ - ¥ -

Beginning Cash: ¥B 418.7 399.9 180.9 125.0 125.0 125.0 125.0 125.0
Ending Cash: ¥B ¥ 399.9 ¥ 322.2 ¥ 125.0 ¥ 125.0 ¥ 125.0 ¥ 125.0 ¥ 125.0 ¥ 125.0
 Transaction Adjustments Combined Company Period Annual Roll-Up
Debt Schedule: Units: Debit Credit 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 FY14 FY15

Debt Balances:
Senior Notes: ¥B ¥ 662.8 ¥ 570.4 ¥ 549.5 ¥ 580.5 ¥ 660.0 ¥ 565.3 ¥ 490.5
Subordinated Notes: ¥B 497.1 497.1 497.1 497.1 497.1 497.1 497.1
Dollar Bonds: ¥B 165.7 165.7 165.7 165.7 165.7 165.7 165.7
Total New Transaction Debt: ¥B 1,325.7 1,233.2 1,212.4 1,243.3 1,322.9 1,228.2 1,153.4

Interest Expense Calculations:

Senior Notes: ¥B 3.1 2.8 2.8 3.1 3.1 2.6
Subordinated Notes: ¥B 5.0 5.0 5.0 5.0 5.0 5.0
Dollar Bonds: ¥B 0.8 0.8 0.8 0.8 0.8 0.8
Total Interest Expense: ¥B 8.9 8.6 8.6 8.9 8.9 8.4

Beginning Cash Balance: ¥B 180.9 125.0 125.0 125.0 125.0 125.0

Less: Minimum Cash Balance: ¥B (125.0) (125.0) (125.0) (125.0) (125.0) (125.0)
Plus: Cash Flow for Debt Repay: ¥B 36.6 20.9 (31.0) (79.5) 94.7 74.8
Subtotal Before Add'l Borrowing: ¥B 92.4 20.9 (31.0) (79.5) 94.7 74.8
Additional Senior Note Borrowing: ¥B - - 32.6 81.2 - -
Total Sources of Funds: ¥B 92.4 20.9 1.7 1.7 94.7 74.8

Uses of Funds:
Mandatory Debt Repayment:
Senior Notes: ¥B 1.7 1.7 1.7 1.7 1.7 1.7
Subordinated Notes: ¥B - - - - - -
Dollar Bonds: ¥B - - - - - -
Mandatory Repayment Total: ¥B 1.7 1.7 1.7 1.7 1.7 1.7

Optional Debt Repayment:

Senior Notes: ¥B 90.8 19.2 - - 93.1 73.1
Subordinated Notes: ¥B - - - - - -
Dollar Bonds: ¥B - - - - - -
Optional Repayment Total: ¥B 90.8 19.2 - - 93.1 73.1

Cash Generated on Balance Shee ¥B - - 0.0 0.0 - -

Total Uses of Funds: ¥B ¥ 92.4 ¥ 20.9 ¥ 1.7 ¥ 1.7 ¥ 94.7 ¥ 74.8
 Transaction Adjustments Combined Company Period Annual Roll-Up
Key Metrics and Ratios: Units: Debit Credit 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 FY14 FY15

EBITDA Calculation:
Operating Income: ¥B
Amortization of New Intangibles: ¥B
Amortization of New Goodwill: ¥B
Depreciation from PP&E Write-Up: ¥B
Depreciation & Amortization: ¥B
Goodwill Amortization: ¥B
Amortization of Other Intangibles: ¥B
EBITDA: ¥B

Shareholders' Equity: ¥B
Total Debt: ¥B
Net Debt: ¥B
Net Capital: ¥B

Revenue Growth: %
Gross Margin: %
Operating Margin: %
EBITDA Margin: %
Net Margin: %

Effective Tax Rate: %

D&A % Revenue: %
CapEx % Revenue: %

Total Debt / Annualized EBITDA: x

Net Debt / Annualized EBITDA: x
EBITDA / Net Interest Expense: x

Total Debt / Equity: x

Total Debt / Capital: %
Net Debt / Equity: x
Net Debt / Net Capital: %
Sensitivity - Year 1 EPS Accretion / (Dilution) Excluding Goodwill Amortization - Purchase Price per Share vs. % Cash Used (Remainder Funded with Debt):

Sensitivity - Year 2 EPS Accretion / (Dilution) Excluding Goodwill Amortization - Purchase Price per Share vs. % Cash Used (Remainder Funded with Debt):

Sensitivity - Year 1 EPS Accretion / (Dilution) Excluding Goodwill Amortization - Purchase Price per Share vs. JPY to USD Exchange Rate:

Sensitivity - Year 2 EPS Accretion / (Dilution) Excluding Goodwill Amortization - Purchase Price per Share vs. JPY to USD Exchange Rate:
Sensitivity - Year 1 EPS Accretion / (Dilution) Excluding Goodwill Amortization - Purchase Price per Share vs. Weighted Average Debt Interest Rate:

Sensitivity - Year 2 EPS Accretion / (Dilution) Excluding Goodwill Amortization - Purchase Price per Share vs. Weighted Average Debt Interest Rate:

Sensitivity - Year 1 EPS Accretion / (Dilution) Excluding Goodwill Amortization - Purchase Price per Share vs. Revenue Synergies:

Sensitivity - Year 2 EPS Accretion / (Dilution) Excluding Goodwill Amortization - Purchase Price per Share vs. Revenue Synergies:
Revenue & Expense Synergies - Suntory Holdings Limited and BEAM Inc.
($ in Millions, Except Case Numbers and Per Case Figures)

Historical
Revenue Synergies - BEAM Inc. Units 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13

Annual Cases Sold, FY13: M Cases 38.271

BEAM Inc. Revenue - Asia-Pacific and South America: $M 108.1 110.3 99.7 125.6
BEAM Inc. - Consolidated Net Sales: $M 577.7 637.6 598.7 733.3

Baseline Cases Sold - Asia-Pacific and South America M Cases 1.624 1.657 1.498 1.887
Baseline Average Price per Case: $ / Case $ 66.56 $ 66.56 $ 66.56 $ 66.56

Uplift in Cases Sold - APSA: %

Uplift in Average Price per Case: %

Cases Sold - Asia-Pacific and South America: M Cases

Average Price per Case: $ / Case

Total Revenue - APSA: $M

Incremental Revenue - APSA: $M

Post-Toggle Incremental Revenue - APSA: $M

BEAM Inc. - COGS % Revenue: %

COGS Associated with Revenue Synergies: $M

BEAM Inc. - OpEx % Revenue: %

OpEx Associated with Revenue Synergies: $M

Incremental Operating Income - APSA: $M

 Historical
Expense Synergies and Integration Costs - BEAM Inc. Units 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13

Total Integration Costs - % of Purchase Equity Value: % 0.5%

Total Integration Costs - Value in USD: $M $ 70.2

BEAM Inc. - Baseline APSA OpInc: $M $ 22.0 $ 23.0 $ 31.2 $ 38.0 $ 21.0 $ 18.1 $ 20.6 $ 26.7
Operating Margin: % 18.8% 20.2% 23.9% 27.3% 19.4% 16.4% 20.7% 21.3%

Uplift in APSA Operating Margin: %

APSA Operating Margin After Synergies: %

APSA Operating Income After Synergies: $M

BEAM Inc. - Baseline EMEA OpInc: $M 17.4 23.6 27.8 54.2 24.6 23.1 27.5 57.3
Operating Margin: % 16.2% 21.1% 23.9% 30.9% 23.3% 19.8% 22.1% 29.0%

Uplift in EMEA Operating Margin: %

EMEA Operating Margin After Synergies: %

EMEA Operating Income After Synergies: $M

Total OpEx Synergies: $M

Integration Cost Realization %: %

Integration Costs: $M
 Projected Historical Projected
1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 FY12 FY13 FY14 FY15

109.2 111.9 102.2 130.0 109.7 113.1 104.3 134.0

596.2 664.4 622.4 771.4 620.2 691.2 644.0 806.7

1.648 1.690 1.520 1.934 1.665 1.716 1.536 1.973

$ 66.23 $ 66.23 $ 67.23 $ 67.23 $ 65.90 $ 65.90 $ 67.90 $ 67.90

– – 5.0% 5.0% 7.0% 7.0% 7.0% 7.0%

– – 3.0% 3.0% 5.0% 5.0% 5.0% 5.0%

1.648 1.690 1.596 2.031 1.782 1.836 1.643 2.111

$ 66.23 $ 66.23 $ 69.24 $ 69.24 $ 69.19 $ 69.19 $ 71.29 $ 71.29

109.2 111.9 110.5 140.6 123.3 127.0 117.1 150.5

- - 8.3 10.6 13.5 14.0 12.9 16.5

$ - $ - $ 8.3 $ 10.6 $ 13.5 $ 14.0 $ 12.9 $ 16.5

40.3% 41.5% 41.7% 43.2% 40.3% 41.5% 41.7% 43.2%

- - 3.5 4.6 5.5 5.8 5.4 7.1

40.0% 41.9% 37.3% 35.3% 39.7% 41.6% 37.0% 35.0%

- - 3.1 3.7 5.4 5.8 4.8 5.8

$ - $ - $ 1.7 $ 2.3 $ 2.7 $ 2.4 $ 2.7 $ 3.6

 Projected Historical Projected
1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 FY12 FY13 FY14 FY15

$ 21.5 $ 18.6 $ 21.4 $ 28.0 $ 21.9 $ 19.2 $ 22.1 $ 29.2

19.7% 16.7% 20.9% 21.5% 20.0% 17.0% 21.2% 21.8%

– – 0.5% 0.5% 1.0% 1.0% 1.0% 1.0%

19.7% 16.7% 21.4% 22.0% 21.0% 18.0% 22.2% 22.8%

21.5 18.6 21.9 28.6 23.0 20.3 23.2 30.6

26.0 24.8 29.3 61.7 27.5 26.5 31.1 65.9

23.6% 20.1% 22.4% 29.3% 23.9% 20.4% 22.7% 29.7%

– – 0.5% 0.5% 1.0% 1.0% 1.0% 1.0%

23.6% 20.1% 22.9% 29.8% 24.9% 21.4% 23.7% 30.7%

26.0 24.8 29.9 62.8 28.6 27.8 32.5 68.2

$ - $ - $ 1.2 $ 1.7 $ 2.2 $ 2.4 $ 2.4 $ 3.6

– – 10.0% 10.0% 20.0% 20.0% 20.0% 20.0%

$ - $ - $ 7.0 $ 7.0 $ 14.0 $ 14.0 $ 14.0 $ 14.0
Unit 75000
Price 200
Revenue 15000000
COGS 7500000
GP 7500000
SG&A 1500000
EBIT 6000000

DR 8%
GR 1%
Year 1 Year 2 Year 3 Year 4 Year 5 TV
69 20 24 83 215 2000000

$1,260,646.67