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Comparative Financial Analysis

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INTRODUCTION ..................................................................................................................... 3
RATIO ANALYSIS ............................................................................................................................... 3
Profitability Ratios ................................................................................................................... 3
Net Profit Margin ................................................................................................................. 3
Gross Profit Margin .............................................................................................................. 4
Return on Assets .................................................................................................................. 5
Operating Margins ............................................................................................................... 5
Asset Turnover Ratio............................................................................................................ 6
Return on Capital Employed ................................................................................................ 7
Return on Equity .................................................................................................................. 7
Liquidity Ratios ........................................................................................................................ 8
Current Ratio ........................................................................................................................ 8
Acid Test Ratio ..................................................................................................................... 9
Efficiency Ratios ..................................................................................................................... 10
Receivables Collection Days ............................................................................................... 10
Payables Payment Days ..................................................................................................... 10
Inventory Turnover ............................................................................................................ 11
VERTICAL ANALYSIS......................................................................................................................... 12
Income Statement items for Vertical Analysis ....................................................................... 12
Cost of Sales ....................................................................................................................... 12
Gross Profit ........................................................................................................................ 12
Operating Profit ................................................................................................................. 12
Balance Sheets items for Vertical Analysis ............................................................................ 12
Non-current Assets ............................................................................................................ 13
Current Assets .................................................................................................................... 13
Current Liabilities ............................................................................................................... 13
Non-current Liabilities ....................................................................................................... 13
HORIZONTAL ANALYSIS .................................................................................................................... 13
CONCLUSION ....................................................................................................................... 14
BIBLIOGRAPHY .................................................................................................................... 15
APPENDICES ........................................................................................................................ 16
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Introduction
In this report, detailed comparative financial statement analysis for the latest three years
(i.e.2011-2013) is conducted of Olam International Limited and Booker Group Company. Ratio
analysis, vertical trend analysis and horizontal trend analysis tools are used for doing financial
analysis. For conducting ratio analysis, lots of important ratios are being calculated. For
horizontal and trend purpose, income statement and balance sheet of both companies are
prepared by applying both horizontal and vertical analysis. Annual reports of both companies for
the three years (i.e.2011-2013) are used for making all the required calculations and for
comparison purpose. Ratio analysis, trend analysis and horizontal analysis numerical data and
workings are also attached at the end of this report in the appendices section. Moreover at the
end of this report, the conclusion is also drawn as which company requires major attention of the
management in which areas.

Ratio Analysis
Ratio analysis is the most commonly used tools for doing the financial analysis of any company
or for doing comparative financial analysis of more than one company.
Following areas are considered while calculating the different types of ratios of both companies.

 Profitability
 Liquidity
 Efficiency

Profitability Ratios
These ratios are calculated to analyze the capability of the company for generating incomes as
compared to different types of costs of the business. (investopedia, 2012)
Following ratios are calculated in this section in order to judge that which company is
performing better in terms of generating incomes.

 Net Profit Margin

 Gross Profit Margin
 Return on Assets
 Operating Margins
 Asset Turnover
 Debt to Equity
 Return on Capital Employed
 Return on Equity

Net Profit Margin

The net profit margin ratio is used to measure the efficiency of the company in terms of
generating net income by controlling the production and non-production expenses.
(investinganswers, 2011); (olamonline, 2013); (bookergroup, 2013)
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Net Profit Margin

Olam Company Booker Company

5.41%
5.12%
4.88%

2.67% 2.44% 2.25%

2013 2012 2011

The net profit margin of the Olam Company in the year 2011, 2012 and 2013 was 5.41%, 5.12%
and 4.88% respectively while the net profit margin of the Booker Company was 2.25%, 2.44%
and 2.67% in year 2011, 2012 and 2013 respectively. By analyzing all these figures, it is clearly
showing that the net profit margin of the Olam Company is decreasing year by year and the net
profit margin of the Booker Company is increasing year by year which is a good sign for Booker
Company. Despite of decreasing net profit margin of the Olam Company, it is still higher than
the Booker Company in all three years. For example in year 2013, the net profit margin of the
Olam Company was 2.21% (i.e. 4.88-2.67) higher than the Booker Company.

Gross Profit Margin

Gross Profit Margin

Olam Company Booker Company
18.88%
18.02%
16.94%

3.99% 3.78% 3.58%

2013 2012 2011

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The gross profit margin of the Olam Company was 16.94%, 18.88% and 18.02% in year 2011,
2012 and 2013 respectively. That shows that gross profit margin of the company is slightly
increasing year by year which is a good sign for the company. The gross profit margin of the
Booker Company was 2.25%, 2.44% and 2.67% in year 2011, 2012 and 2013 respectively. By
analyzing the figures of both companies, it is evident that the Booker Company pricing strategy
is better than the Olam Company and Booker Company is more efficient in terms of controlling
production expenses that’s why this company has a far better gross profit margin than the Olam
Company in all the three years.

Return on Assets

Return on Assets
Olam Company Booker Company

10.25%
9.61% 9.36%

6.60% 6.33% 6.79%

2013 2012 2011

Return on assets of the Olam Company was 6.79%, 6.33% and 6.60% in year 2011, 2012 and
2013 respectively while the return on assets of the Booker Company was 9.36%, 10.25% and
9.61% in year 2011, 2012 and 2013 respectively. By doing the analysis of these figures, it is
showing that Booker Company is using its assets more effectively and efficiently than the Olam
Company that’s why return on assets of Booker Company in year 2013 is 3.01% (i.e. 9.61-6.60)
higher than the Olam Company which is a very good sign for Booker Company. The
management of Olam Company should try hard to utilize the company’ assets more effectively
(for the purpose of generating incomes) in order to compete the Booker Company.

Operating Margins
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Operating Margins
Olam Company Booker Company

5.23%
4.78% 4.90%

2.48% 2.28% 2.13%

2013 2012 2011

Operating margin of the Olam Company was 5.23%, 4.90% and 4.78% in year 2011, 2012 and
2013 while the operating margins of the Booker Company was 2.13%, 2.28% and 2.48% in year
2011, 2012 and 2013 respectively. All these figures again showing that the Olam Company is
better in this section because in the year 2013 the operating margins of the Olam Company was
2.3% (i.e. 4.78-2.48) higher than the Booker Company. It means that Olam Company more
effectively converts its revenue into operating income than the Booker Company.

Asset Turnover Ratio

That ratio shows that how much the company is generating income for every dollar’s worth of
assets. A higher ratio is the healthy sign for any company.

Asset Turnover (in times)

Olam Company Booker Company
4.20 4.16
3.60

1.35 1.24 1.26

2013 2012 2011

Asset turnover ratio of the Olam Company was 1.26, 1.24 and 1.35 in year 2011, 2012 and 2013
respectively while the same ratio of Booker Company in the year 2011, 2012 and 2013 was 4.16,
4.20 and 3.60 respectively. In year 2013, assets turnover ratio of the Booker Company was
7|Page

decreased by 0.6 (i.e. 4.20-3.60) as compared to the year 2012. By comparing all these figures of
both companies, it is clearly evident that Booker Company is very efficient in this segment
because the asset turnover ratio was 2.25 (i.e. 3.60-1.35) higher than the Olam Company in the
year 2013 which is a very good sign for the Booker Company.

Return on Capital Employed

That ratio is used to measure that how efficiently and effectively the company is using its capital.
A higher ratio is a very good sign for the company. (investopedia, 2012)

Return on Capital Employed

Olam Company Booker Company

21.36%
19.12%
17.72%
15.68%

10.20% 10.86%

2013 2012 2011

Return on capital employed of the Olam Company was 15.68%, 10.86% and 10.20% in year
2011, 2012 and 2013 respectively while the same ratio for the Booker Company was 19.21%,
21.36% and 17.72% respectively. By analyzing all these figures in three years for both
companies, Booker Company is much stronger in this section because return on capital employed
of the Booker Company is 7.52% (i.e. 10.20-17.72) higher than the Olam Company in the year
2013. That is because of the reason that the management of this company is using the company’s
capital far more effectively than the Olam Company.

Return on Equity
That ratio is used to measure that how much net profit a company is generating with the invested
money of the shareholders therefore higher ratio is beneficial for any company. (investopedia,
2011)
8|Page

Return on Equity
Olam Company Booker Company

20.28%
19.31%
17.70%
16.00%

11.45%
10.24%

2013 2012 2011

Return on equity ratio of the Olam Company was 19.31%, 11.45% and 10.24% in year 2011,
2012 and 2013 respectively while the same ratio for the Booker Company was 17.70%, 20.28%
and 16% in year 2011, 2012 and 2013 respectively. It means that in the year 2013, return on
equity of the Booker Company was 5.76% (i.e. 16-10.24) higher than the Olam Company despite
of the reason that Booker Company’s return on equity was decreased by 4.28% (i.e. 20.28-16) in
year 2013 as compared to the year 2012. By analyzing all these figures, it is concluded that
Booker Company is stronger in terms of generating profits with the shareholder’s funds.

Liquidity Ratios
Liquidity ratios are very useful because these are calculated to measure the liquidity condition
and to check that whether the company has enough short-term resources in order to meet the
current obligations.
Following ratios are calculated under this segment.

 Current Ratio
 Acid Test Ratio (readyratios, 2012)

Current Ratio
Current ratio is used to measure that how much current assets a company has in order to meet the
current obligations. Current ratio 2 is considered to be the very healthy ratio for any company
because it means that the company has double current resources in order to meet short-term
liabilities. (Jan, 2011)
9|Page

Current Ratio (in times)

Olam Company Booker Company

1.82
1.63
1.35

0.87 0.85 0.80

2013 2012 2011

The current ratio of the Olam Company was 1.35, 1.63 and 1.82 in year 2011, 2012 and 2013
respectively while the same ratio of the Booker Company was 0.80, 0.85 and 0.87 in year 2011,
2012 and 2013 respectively. By analyzing all the figures, it is clearly evident that Olam
Company has far more short-term resources that the Booker Company throughout in the three
years. For example, a current ratio of the Olam Company is 0.95 (i.e.1.82-0.87) higher than the
Booker Company in the year 2013 and it is a very healthy sign for the Olam Company.

Acid Test Ratio

That ratio is calculated to measure that how much liquid assets a company has in order to meet
the current obligations. While calculating that ratio, inventories and advance payments are
deducted from current assets. Acid test ratio 1 is considered very good for any company.
(readyratios, 2012)

Acid Test Ratio (in times)

Olam Company Booker Company

1.82
1.63
1.35

0.87 0.85 0.80

2013 2012 2011

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Acid test ratio of the Olam Company was 0.81, 0.81 and 0.94 in year 2011, 2012 and 2013
respectively while the acid test ratio of the Booker Company was 0.30, 0.30 and 0.34 in year
2011, 2012 and 2013 respectively. These figures show that again the Olam Company has far
more liquid assets in order to meet the short-term liabilities.

Efficiency Ratios
Efficiency ratios are used to check that how well a company its assets and liabilities internally.
Following ratios are calculated under this section to evaluate the efficiency of the Olam
Company and Booker Company in comparison.

 Receivables Collection Days

 Payables Payment Days
 Inventory Turnover

Receivables Collection Days

Receivables Collection Days

Olam Company Booker Company

1.82
1.63
1.35

0.87 0.85 0.80

2013 2012 2011

Receivables collection days of the Olam Company in the year 2011, 2012 and 2013 was 37, 34
and 42 respectively while the receivables collection days of the Booker Company was 72, 61 and
69 in year 2011, 2012 and 2013 respectively. By analyzing these figures, it is clearly evident that
the debtor management staff of the Olam Company was very efficient than the Booker Company
in terms of collecting the amounts from the debtors. For example, the receivables collection of
the Olam Company was 27 days (i.e.69-42) faster than the Booker Company in the year 2013
which is a very good sign for the Olam Company.

Payables Payment Days

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Payables Payment Days

Olam Company Booker Company

1.82
1.63
1.35

0.87 0.85 0.80

2013 2012 2011

Payables payment days of the Olam Company was 30, 30 and 37 in year 2011, 2012 and 2013
respectively while the payables payment days of the Booker Company was 45, 46 and 46 in year
2011, 2012 and 2013 respectively. By doing the analysis of the figures for both companies in
three years, it shows that the Olam Company is very efficient in terms of paying the amounts to
the suppliers which is a good sign for the company because prompt payment to the suppliers
always creates a good reputation of the company in the market.

Inventory Turnover

Inventory Turnover (in times)

Olam Company Booker Company

1.82
1.63
1.35

0.87 0.85 0.80

2013 2012 2011

Inventory turnover of the Olam Company was o.27, 0.32 and 0.24 in year 2011, 2012 and 2013
respectively while the inventory turnover days of the Booker Company was 0.06, 0.07 and 0.07
in year 2011, 2012 and 2013 respectively. By analyzing these figures, it is evident that both
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companies facing very low inventory turnover ratio but even though Olam Company is better
than the Booker company in this area because inventory turnover of the Olam Company was
0.17 times (i.e. 0.24-0.07) higher than the Booker Company in the year 2013.

Vertical Analysis
This technique is also very useful in term of doing comparative financial analysis. Vertical
analysis is also known as “common size analysis”. It is applied to income statement and balance
sheet of both the Olam and Booker Company during the three year period of time (i.e. 2011-
2013). (olamonline, 2013); (bookergroup, 2013)

Income Statement items for Vertical Analysis

Following important income statement items are identified for doing the vertical analysis.

 Cost of Sales
 Gross Profit
 Operating Profit

Cost of Sales
Cost of sales of the Olam Company was 83.06%, 81.12% and 81.98% of the sales in year 2011,
2012 and 2013 respectively while the cost of sales of the Booker Company was 96.42%, 96.22%
and 96.01% in the year 2011, 2012 and 2013 respectively. All these figures show that, the direct
expenses of the Booker Company in relation to the sales are higher than the Olam Company
throughout the three years. It means that the Olam Company is doing the best job in terms of
controlling the direct expenses (i.e. cost of goods sold) that is the only reason that the Cost of
sales of the Olam Company was 14.03% (i.e. 96.01-81.98) lower than the Booker Company in
relation to the sales in year 2013.

Gross Profit
The gross profit of the Olam Company was 16.94%, 18.88% and 18.02% in relation to sales in
the year 2011, 2012 and 2013 respectively while the gross profit of the Booker Company was
3.58%, 3.78% and 3.99% in year 2011, 2012 and 2013 respectively. By conducting the analysis,
it is again showing the gross profit percentages of the Olam Company in relation to sales in
better than the Booker Company and it is because of the reason that the cost of sales percentages
of the Booker Company (i.e. as identified in above cost of sales segment) was higher which
makes the gross profit percentages lower.

Operating Profit
The operating profit of the Olam Company was 5.23%, 4.90% and 4.78% in relation to sales in
year 2011, 2012 and 2013 respectively while the operating profit of the Booker Company was
2.13%, 2.28% and 2.48% in year 2011, 2012 and 2013 respectively. Again these figures show
that the Olam Company’s operating profit percentages in relation to sales are greater than the
Booker Company and that is because of decreasing cost of goods sold and indirect expenses of
the Olam Company.

Balance Sheets items for Vertical Analysis

Following major items from the balance sheets of both companies are selected for the purpose of
applying the vertical analysis.
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 Non-current Assets
 Current Assets
 Current Liabilities
 Non-current Liabilities

Non-current Assets
Non-current assets of the Olam Company were 23.69%, 32.13% and 35.81% in relation to total
assets in the year 2011, 2012 and 2013 respectively while the non-current assets of the Booker
Company were 59.12%, 55.82% and 60.23% in year 2011, 2012 and 2012 respectively. By
analyzing these figures logically, it is evident the non-current asset portion of the Booker
Company is a major part of the total assets in all the three years while the non-current asset
portion of the Olam Company is not very significant part of the total assets and it is increasing
year by year.

Current Assets
Current assets of the Olam Company were 76.31%, 67.87% and 64.19% in relation to total assets
in the year 2011, 2012 and 2013 respectively while the current assets of the Booker Company
were 40.88%, 44.18% and 39.77% in year 2011, 2012 and 2012 respectively. By analyzing these
figures, it is quite clear that Olam Company is more aggressive towards short-term resources
which is a good sign for this company because that will ultimately boost the liquidity condition
of the company.

Current Liabilities
Current liabilities of the Olam Company were 56.68%, 41.69% and 35.34% in relation to total
equity and liabilities in year 2011, 2012 and 2013 respectively while the current liabilities of the
Booker Company were 51.04%, 52.01% and 45.79% in year 2011, 2012 and 2012 respectively.
By analyzing these figures, it is clearly showing that in recent year (i.e.2013), Olam Company’s
current liabilities in relation to total equity and liabilities reduced by 6.35% (i.e. 41.69-35.34) as
compared to the year 2012 which is a good sign for the company. Finally, the current liability
portion of the Olam Company is lower than the Booker Company which is a healthy sign for
Olam Company.

Non-current Liabilities
Non-current liabilities of the Olam Company were 25.02%, 32.80% and 39.80% in relation to
total equity and liabilities in year 2011, 2012 and 2013 respectively while the non-current
liabilities of the Booker Company were 10.37%, 8.54% and 5.67% in year 2011, 2012 and 2012
respectively. All these figures clearly showing that the Booker Company’s non-current liabilities
are not a major part of the total equity and liabilities and these percentages are far below than the
percentages of the Olam Company. Booker Company should try to reduce current liabilities by
increasing non-current liabilities so that the liquidity condition of the Booker Company may
become slightly better.

Horizontal Analysis
For doing horizontal analysis, year 2011 is taken as a base year and all the changes during the
next two years for both income statement and balance sheets are measured and analyzed as
follows.
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 Sales of the Olam Company was 108.17% and 131.63% in year 2012 and 2013
respectively while the sales of the Booker Company were 109.37% and 111.02% in year
2012 and 2013 respectively. These trends show the favorable trend for the Olam
Company because the sales of this company increased by 31.63% (i.e. 131.63-100) in
year 2013 from the year 2011 which is higher than the increase of the Booker Company
which is only 11.02% (i.e.111.02-100)
 Cost of sales trend shows the unfavorable result for the Olam Company because in the
year 2013, that is increased by 29.92% (i.e.129.92-100) in the year 2013 from the year
2011 while the cost of sales of Booker Company is only increased by 10.55% (i.e.110.55-
100) in year 2013 from the year 2011
 By analyzing gross profit trends, it is a favorable trend for the Olam Company as
compared to the Booker Company. That is because in the year 2013, gross profit of the
Olam Company was increased by the 40.03% (i.e.140.03-100) from the year 2011 while
the gross profit of the Booker Company was only increased by 23.66% (i.e. 123.66-100)
 Trend shows that current assets of the Olam Company were increased by just 2.87% (i.e.
102.87-100) in the year 2013 from the year 2011 while the current assets of Booker
Company were increased by 24.65% (i.e. 124.65-100) in the year 2013 from the year
2011. All these trends show the favorable result for Booker Company because it implies
that the management of the Booker Company is focusing on increasing current assets
 Current liabilities of the Olam Company were decreased by 23.75% (i.e. 100-76.25) in
the year 2013 from the year 2011 while the current liabilities of the Booker Company
were increased by 14.97% (i.e. 114.97-100) in the year 2013 from the year 2011. All
these figures show the unfavorable trend for the Booker Company because of increasing
the current liabilities from the year 2011 while on the other hand, these trends show the
favorable result for the Olam Company because of decreasing the current liabilities from
the year 2011

Conclusion
After conducting detailed analysis of both companies and after judging each segment of the
financial statements, it is concluded that Olam Company is much stronger than the Booker
Company in almost all the areas.
The management of the Booker Company needs higher level attention in the following identified
areas in order to avoid from the corporate failure and also to compete with the Olam Company.

 Production and non-production expenses (i.e. in order to decrease these expenses)

 Working Capital (i.e. in order to improve the liquidity condition)
 Debtor management (i.e. in order to fast up the payment recovery process from the
debtors)
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Bibliography
bookergroup, 2013. BOOKER. [Online]
Available at: http://www.bookergroup.com/~/media/Files/B/Booker-Group/pdf/investor-
centre/reposts-presentations/rp2013/Booker-Annual-Report-2013.pdf?
[Accessed 14 12 2013].

investinganswers, 2011. Net Profit Margin. [Online]

Available at: http://www.investinganswers.com/financial-dictionary/financial-statement-analysis/net-
profit-margin-2233
[Accessed 14 12 2013].

investopedia, 2011. Return On Equity - ROE. [Online]

Available at: http://www.investopedia.com/terms/r/returnonequity.asp
[Accessed 14 12 2013].

investopedia, 2012. Profitability Ratios. [Online]

Available at: http://www.investopedia.com/terms/p/profitabilityratios.asp
[Accessed 14 12 2013].

investopedia, 2012. Return On Capital Employed (ROCE). [Online]

Available at: http://www.investopedia.com/terms/r/roce.asp
[Accessed 14 12 2013].

Jan, I., 2011. Current Ratio. [Online]

Available at: http://accountingexplained.com/financial/ratios/current-ratio
[Accessed 14 12 2013].

olamonline, 2013. Olam International Limited and Subsidiary Companies. [Online]

Available at: http://olamonline.com/wp-content/files_mf/1381315468FinancialReports.pdf
[Accessed 14 12 2013].

readyratios, 2012. Acid-Test Ratio. [Online]

Available at: http://www.readyratios.com/reference/liquidity/acid_test_ratio.html
[Accessed 14 12 2013].

readyratios, 2012. Liquidity ratios. [Online]

Available at: http://www.readyratios.com/reference/liquidity/
[Accessed 14 12 2013].
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Appendices

Appendix 1

FINANCIAL RATIOS Olam International Limited and Subsidiary Companies Booker Group

Profitability Ratios 2013 2012 2011 2013 2012 2011

Net Profit before Interest & Tax

Net Profit Margin 1,015,004 4.88% 875,460 5.12% 854,623 5.41% 107 2.67% 96 2.44% 81 2.25%
Net Sales 20,801,798 17,093,751 15,803,387 3,992 3,933 3,596
Gross Profit
Gross Profit Margin 3,747,961 18.02% 3,227,173 18.88% 2,676,530 16.94% 159 3.99% 149 3.78% 129 3.58%
Net Sales 20,801,798 17,093,751 15,803,387 3,992 3,933 3,596
Net Profit before Interest & Tax
1,015,004 875,460 854,623 107 96 81
Return on Assets 6.60% 6.33% 6.79% 9.61% 10.25% 9.36%
Total Assets
15,384,184 13,827,982 12,580,136 1,109 937 865
Operating Income
Operating Margins 994,520 4.78% 837,994 4.90% 826,455 5.23% 99 2.48% 90 2.28% 77 2.13%
Net Sales 20,801,798 17,093,751 15,803,387 3,992 3,933 3,596
Net Sales 20,801,798 17,093,751 15,803,387 3,992 3,933 3,596
Asset Turnover 1.35 1.24 1.26 3.60 4.20 4.16
Total Assets
15,384,184 13,827,982 12,580,136 1,109 937 865
Net Profit before Interest & Tax
1,015,004 875,460 854,623 107 96 81
Return on Capital Employed 10.20% 10.86% 15.68% 17.72% 21.36% 19.12%
Capital Employed
9,947,284 8,062,884 5,450,172 601 449 424
Net Profit
391,517 403,825 444,568 86 75 59
Return on Equity 10.24% 11.45% 19.31% 16.00% 20.28% 17.70%
Shareholder's Equity
3,823,728 3,527,762 2,302,362 538 369 334
LIQUIDITY RATIOS
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Current Assets
9,875,370 9,385,729 9,599,439 441 414 354
Current Ratio 1.82 1.63 1.35 0.87 0.85 0.80
Current Liabilities
5,436,900 5,765,098 7,129,964 508 487 442

(Current Assets-Inventories-Advance Payments) 5,122,629 4,655,159 5,793,088 174 145 133

Acid Test Ratio 0.94 0.81 0.81 0.34 0.30 0.30
Current Liabilities
5,436,900 5,765,098 7,129,964 508 487 442
Efficiency Ratios

Trade Receivables
2,372,900 1,596,796 1,595,446 97 82 87
Receivables Collection Days 42 34 37 69 61 72
Net Sales
20,801,798 17,093,751 15,803,387 508 487 442
Trade Payables
1,747,963 1,133,893 1,095,603 487 472 424
Payables Payment Days 37 30 30 46 46 45
Cost of Sales
17,053,837 13,866,578 13,126,857 3,833 3,784 3,467
Closing Inventory
4,154,271 4,410,014 3,584,144 267 269 220
Inventory Turnover (in times) 0.24 0.32 0.27 0.07 0.07 0.06
Cost of Sales
17,053,837 13,866,578 13,126,857 3,833 3,784 3,467
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Appendix 2

Olam International Limited and Subsidiary Companies

Profit and Loss Accounts- Vertical Trend Analysis
For the year ended 30th June

Values in $"000" Vertical Trend Analysis

2013 2012 2011 2013 2012 2011

Sale of goods and services 20,801,798 17,093,751 15,803,387 100.00% 100.00% 100.00%
Cost of sales 17,053,837 13,866,578 13,126,857 81.98% 81.12% 83.06%
Gross profit 3,747,961 3,227,173 2,676,530 18.02% 18.88% 16.94%
Shipping and logistics 1,689,818 1,439,984 1,230,110 8.12% 8.42% 7.78%
Commission and claims 163,710 127,287 135,361 0.79% 0.74% 0.86%
Net gain from changes in fair value of biological assets 96,286 110,874 80,365 0.46% 0.65% 0.51%
Employee benefits expenses 466,181 426,170 341,106 2.24% 2.49% 2.16%
Depreciation 175,878 128,691 91,471 0.85% 0.75% 0.58%
Net measurement of derivative instrument (5,699) 21,163 28,117 -0.03% 0.12% 0.18%
Other operating expenses 455,294 450,557 285,260 2.19% 2.64% 1.81%
Other income 106,853 51,473 124,751 0.51% 0.30% 0.79%
Operating profit 994,520 837,994 826,455 4.78% 4.90% 5.23%
Finance cost (518,353) (437,550) (344,358) -2.49% -2.56% -2.18%
Share of results from jointly controlled entities &
20,484 37,466 28,168 0.10% 0.22% 0.18%
associates
Profit before tax 496,651 437,910 510,265 2.39% 2.56% 3.23%
Income tax expense 105,134 34,085 65,697 0.51% 0.20% 0.42%
Profit for the period 391,517 403,825 444,568 1.88% 2.36% 2.81%
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Appendix 3

Booker Group Plc.

Consolidated Income Statement- Vertical Trend Analysis
For the period ended 31st March

Values in Millions British Pound Vertical Trend Analysis

2013 2012 2011 2013 2012 2011
Revenue 3,992 3,933 3,596 100.00% 100.00% 100.00%
Cost of sales 3832.8 3784.1 3466.9 96.01% 96.22% 96.42%
Gross profit $159 $149 $129 3.99% 3.78% 3.58%
Administrative expenses 60.3 59.1 52.4 1.51% 1.50% 1.46%
Operating profit $99 $90 $77 2.48% 2.28% 2.13%
Finance income 7.5 6 4 0.19% 0.16% 0.11%
Finance expense (2.20) (5.10) (9.10) -0.06% -0.13% -0.25%
Net financing income/(costs) 5.30 1.20 (5.10) 0.13% 0.03% -0.14%
Profit before tax $104 $91 $71 2.62% 2.31% 1.99%
Tax 18.3 16 12.3 0.46% 0.40% 0.34%
Profit for the period 86 75 59 2.16% 1.90% 1.64%
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Appendix 4

Olam International Limited and Subsidiary Companies

Balance Sheets- Vertical Trend Analysis
For the year ended 30th June

Values in $"000" Vertical Trend Analysis

2013 2012 2011 2013 2012 2011
Assets
Non-current assets
Property, plant and equipment 3,427,775 2,620,995 1,576,715 22.28% 18.95% 12.53%
Intangible assets 686,516 660,157 485,938 4.46% 4.77% 3.86%
Biological assets 781,742 631,339 453,168 5.08% 4.57% 3.60%
Deferred tax asset 34,832 37,735 43,053 0.23% 0.27% 0.34%
Investment in jointly controlled entities &
557,693 482,864 411,819 3.63% 3.49% 3.27%
associates
Other non-current assets 20,256 9,163 10,004 0.13% 0.07% 0.08%
Total non-current assets 5,508,814 4,442,253 2,980,697 35.81% 32.13% 23.69%
Current assets
Trade receivables 2,372,900 1,596,796 1,595,446 15.42% 11.55% 12.68%
Margin accounts with brokers 0 0 457,133 0.00% 0.00% 3.63%
Inventories 4,154,271 4,410,014 3,584,144 27.00% 31.89% 28.49%
Advance payments to suppliers 598,470 320,556 222,207 3.89% 2.32% 1.77%
Cash and short-term fixed deposits 1,591,009 1,110,856 872,247 10.34% 8.03% 6.93%
Derivative financial instruments 606,062 1,302,200 2,310,144 3.94% 9.42% 18.36%
Other current assets 552,658 645,307 558,118 3.59% 4.67% 4.44%
Total current assets 9,875,370 9,385,729 9,599,439 64.19% 67.87% 76.31%
Total assets 15,384,184 13,827,982 12,580,136 100.00% 100.00% 100.00%
Current liabilities
 21 | P a g e

Trade payables and accruals 1,747,963 1,133,893 1,095,603 11.36% 8.20% 8.71%
Borrowings 2,965,559 3,148,333 3,610,043 19.28% 22.77% 28.70%
Provision for taxation 49,728 33,493 24,762 0.32% 0.24% 0.20%
Derivative financial instruments 395,295 1,115,711 2,287,250 2.57% 8.07% 18.18%
Other current liabilities 269,241 193,101 112,306 1.75% 1.40% 0.89%
Margin accounts with brokers 9,114 140,567 0 0.06% 1.02% 0.00%
Total current liabilities 5,436,900 5,765,098 7,129,964 35.34% 41.69% 56.68%
Non-current liabilities
Deferred tax liabilities 240,877 194,071 177,283 1.57% 1.40% 1.41%
Borrowings 5,882,679 4,341,051 2,970,527 38.24% 31.39% 23.61%
Total non-current liabilities 6,123,556 4,535,122 3,147,810 39.80% 32.80% 25.02%
Total liabilities 11,560,456 10,300,220 10,277,774 75.15% 74.49% 81.70%
Equity
Share capital 2,077,038 2,077,038 1,577,110 13.50% 15.02% 12.54%
Treasury shares -96,081 -96,081 0 -0.62% -0.69% 0.00%
Perpetual capital securities 276,939 276,886 0 1.80% 2.00% 0.00%
Reserves 1,433,964 1,147,767 668,232 9.32% 8.30% 5.31%
Non-controlling interests 131,868 122,152 57,020 0.86% 0.88% 0.45%
Total equity 3,823,728 3,527,762 2,302,362 24.85% 25.51% 18.30%
Total liabilities and equity 15,384,184 13,827,982 12,580,136 100.00% 100.00% 100.00%
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Appendix 5

Booker Group Plc.

Consolidated Balance Sheet-Vertical Trend Analysis
As at 31st March

Values in Millions British Pound Vertical Trend Analysis

2013 2012 2011 2013 2012 2011
Assets
Non-current assets
Property, plant and equipment 71.90 71.90 60.50 6.49% 7.68% 6.99%
Intangible assets 436.90 437.10 437.30 39.41% 46.67% 50.54%
Investments in joint venture 0.60 0.50 0.00 0.05% 0.05% 0.00%
Other investment 144.90 0.00 0.00 13.07% 0.00% 0.00%
Deferred tax asset 13.50 13.30 13.70 1.22% 1.42% 1.58%
Total Non-current Assets 667.80 522.80 511.50 60.23% 55.82% 59.12%
Current assets
Inventories 267.10 268.50 220.40 24.09% 28.67% 25.47%
Trade and other receivables 96.60 81.70 87.10 8.71% 8.72% 10.07%
Cash and cash equivalents 77.20 63.50 46.20 6.96% 6.78% 5.34%
Total Current Assets 440.90 413.70 353.70 39.77% 44.18% 40.88%
Total Assets 1,108.70 936.50 865.20 100.00% 100.00% 100.00%
Liabilities
Current liabilities
Interest bearing loans and
0.00 0.10 0.30 0.00% 0.01% 0.03%
borrowings
Trade and other payables 486.50 471.80 424.20 43.88% 50.38% 49.03%
Current tax 21.20 15.20 17.10 1.91% 1.62% 1.98%
23 | P a g e

Total current liabilities 507.70 487.10 441.60 45.79% 52.01% 51.04%

Non-current liabilities
Interest bearing loans and
0.00 0.00 18.80 0.00% 0.00% 2.17%
borrowings
Other payables 28.00 28.20 28.30 2.53% 3.01% 3.27%
Retirement benefit liabilities 6.80 19.00 8.00 0.61% 2.03% 0.92%
Provisions 28.10 32.80 34.60 2.53% 3.50% 4.00%
Total non-current liabilities 62.90 80.00 89.70 5.67% 8.54% 10.37%
Total liabilities 570.60 567.10 531.30 51.47% 60.56% 61.41%
Equity
Share capital 17.30 15.70 15.30 1.56% 1.68% 1.77%
Share premium 34.90 49.10 45.30 3.15% 5.24% 5.24%
Merger reserve 260.80 260.80 260.80 23.52% 27.85% 30.14%
Other reserve 136.80 0.00 0.00 12.34% 0.00% 0.00%
Share option reserve 6.60 3.80 4.10 0.60% 0.41% 0.47%
Retained earnings 81.70 40.00 8.40 7.37% 4.27% 0.97%
Total equity 538.10 369.40 333.90 48.53% 39.44% 38.59%
Total equity & liabilities 1,108.70 936.50 865.20 100.00% 100.00% 100.00%
24 | P a g e

Appendix 6

Olam International Limited and Subsidiary Companies

Profit and Loss Accounts- Horizontal Trend Analysis
For the year ended 30th June

Values in $" 000" Horizontal Trend Analysis

2013 2012 2011 Change in absolute values change in %
2013 2012 2011 2013 2012 2011
Sale of goods and services 20,801,798 17,093,751 15,803,387 4,998,411 1,290,364 0 131.63% 108.17% 100.00%
Cost of sales 17,053,837 13,866,578 13,126,857 3,926,980 739,721 0 129.92% 105.64% 100.00%
Gross profit 3,747,961 3,227,173 2,676,530 1,071,431 550,643 0 140.03% 120.57% 100.00%
Shipping and logistics 1,689,818 1,439,984 1,230,110 459,708 209,874 0 137.37% 117.06% 100.00%
Commission and claims 163,710 127,287 135,361 28,349 -8,074 0 120.94% 94.04% 100.00%
Net gain from changes in fair value of biological assets 96,286 110,874 80,365 15,921 30,509 0 119.81% 137.96% 100.00%
Employee benefits expenses 466,181 426,170 341,106 125,075 85,064 0 136.67% 124.94% 100.00%
Depreciation 175,878 128,691 91,471 84,407 37,220 0 192.28% 140.69% 100.00%
Net measurement of derivative instrument (5,699) 21,163 28,117 -33,816 -6,954 0 -20.27% 75.27% 100.00%
Other operating expenses 455,294 450,557 285,260 170,034 165,297 0 159.61% 157.95% 100.00%
Other income 106,853 51,473 124,751 -17,898 -73,278 0 85.65% 41.26% 100.00%
Operating profit 994,520 837,994 826,455 168,065 11,539 0 120.34% 101.40% 100.00%
Finance cost (518,353) (437,550) (344,358) -173,995 -93,192 0 150.53% 127.06% 100.00%
Share of results from jointly controlled entities &
20,484 37,466 28,168 -7,684 9,298 0 72.72% 133.01% 100.00%
associates
Profit before tax 496,651 437,910 510,265 -13,614 -72,355 0 97.33% 85.82% 100.00%
Income tax expense 105,134 34,085 65,697 39,437 -31,612 0 160.03% 51.88% 100.00%
Profit for the period 391,517 403,825 444,568 -53,051 -40,743 0 88.07% 90.84% 100.00%
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Appendix 7

Booker Group Plc.

Consolidated Income Statement-Horizontal Trend Analysis
For the period ended 31st March

Horizontal Trend Analysis

Values in Millions British Pound Change in absolute values Change in %
2013 2012 2011 2013 2012 2011 2013 2012 2011
Revenue 3,992 3,933 3,596 396.40 337.00 0.00 111.02% 109.37% 100.00%
Cost of sales 3832.8 3784.1 3466.9 365.90 365.90 0.00 110.55% 109.15% 100.00%
Gross profit $159 $149 $129 30.50 19.80 0.00 123.66% 115.36% 100.00%
Administrative expenses 60.3 59.1 52.4 7.90 6.70 0.00 115.08% 112.79% 100.00%
Operating profit $99 $90 $77 22.60 13.10 0.00 129.54% 117.12% 100.00%
Finance income 7.5 6 4 3.50 2.30 0.00 187.50% 157.50% 100.00%
Finance expense (2.20) (5.10) (9.10) (6.90) (4.00) 0.00 24.18% 56.04% 100.00%
Net financing income/(costs) -
5.30 1.20 (5.10) 0.20 (3.90) 0.00 -23.53% 100.00%
103.92%
Profit before tax $104 $91 $71 33.00 19.40 0.00 146.22% 127.17% 100.00%
Tax 18.3 16 12.3 6.00 3.60 0.00 148.78% 129.27% 100.00%
Profit for the period 86 75 59 27.00 15.80 0.00 145.69% 126.73% 100.00%
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Appendix 8

Olam International Limited and Subsidiary Companies

Balance Sheets- Horizontal Trend Analysis
For the year ended 30th June

Horizontal Trend Analysis

Values in $" 000" Change in absolute values Change in %
2013 2012 2011 2013 2012 2011 2013 2012 2011
Assets
Non-current assets
Property, plant and equipment 3,427,775 2,620,995 1,576,715 1,851,060 1,044,280 0 217.40% 166.23% 100.00%
Intangible assets 686,516 660,157 485,938 200,578 174,219 0 141.28% 135.85% 100.00%
Biological assets 781,742 631,339 453,168 328,574 178,171 0 172.51% 139.32% 100.00%
Deferred tax asset 34,832 37,735 43,053 -8,221 -5,318 0 80.90% 87.65% 100.00%
Investment in jointly controlled entities & associates 557,693 482,864 411,819 145,874 71,045 0 135.42% 117.25% 100.00%
Other non-current assets 20,256 9,163 10,004 10,252 -841 0 202.48% 91.59% 100.00%
Total non-current assets 5,508,814 4,442,253 2,980,697 2,528,117 1,461,556 0 184.82% 149.03% 100.00%
Current assets
Trade receivables 2,372,900 1,596,796 1,595,446 777,454 1,350 0 148.73% 100.08% 100.00%
Margin accounts with brokers 0 0 457,133 -457,133 -457,133 0 0.00% 0.00% 100.00%
Inventories 4,154,271 4,410,014 3,584,144 570,127 825,870 0 115.91% 123.04% 100.00%
Advance payments to suppliers 598,470 320,556 222,207 376,263 98,349 0 269.33% 144.26% 100.00%
Cash and short-term fixed deposits 1,591,009 1,110,856 872,247 718,762 238,609 0 182.40% 127.36% 100.00%
Derivative financial instruments 606,062 1,302,200 2,310,144 -1,704,082 -1,007,944 0 26.23% 56.37% 100.00%
Other current assets 552,658 645,307 558,118 -5,460 87,189 0 99.02% 115.62% 100.00%
Total current assets 9,875,370 9,385,729 9,599,439 275,931 -213,710 0 102.87% 97.77% 100.00%
Total assets 15,384,184 13,827,982 12,580,136 2,804,048 1,247,846 0 122.29% 109.92% 100.00%
27 | P a g e

Current liabilities
Trade payables and accruals 1,747,963 1,133,893 1,095,603 652,360 38,290 0 159.54% 103.49% 100.00%
Borrowings 2,965,559 3,148,333 3,610,043 -644,484 -461,710 0 82.15% 87.21% 100.00%
Provision for taxation 49,728 33,493 24,762 24,966 8,731 0 200.82% 135.26% 100.00%
Derivative financial instruments 395,295 1,115,711 2,287,250 -1,891,955 -1,171,539 0 17.28% 48.78% 100.00%
Other current liabilities 269,241 193,101 112,306 156,935 80,795 0 239.74% 171.94% 100.00%
Margin accounts with brokers full
9,114 140,567 0 9,114 140,567 0 full increase 0.00%
increase
Total current liabilities 5,436,900 5,765,098 7,129,964 -1,693,064 -1,364,866 0 76.25% 80.86% 100.00%
Non-current liabilities
Deferred tax liabilities 240,877 194,071 177,283 63,594 16,788 0 135.87% 109.47% 100.00%
Borrowings 5,882,679 4,341,051 2,970,527 2,912,152 1,370,524 0 198.03% 146.14% 100.00%
Total non-current liabilities 6,123,556 4,535,122 3,147,810 2,975,746 1,387,312 0 194.53% 144.07% 100.00%
Total liabilities 11,560,456 10,300,220 10,277,774 1,282,682 22,446 0 112.48% 100.22% 100.00%
Equity
Share capital 2,077,038 2,077,038 1,577,110 499,928 499,928 0 131.70% 131.70% 100.00%
Treasury shares full
-96,081 -96,081 0 -96,081 -96,081 0 full decrease 0.00%
decrease
Perpetual capital securities full
276,939 276,886 0 276,939 276,886 0 full increase 0.00%
increase
Reserves 1,433,964 1,147,767 668,232 765,732 479,535 0 214.59% 171.76% 100.00%
Non-controlling interests 131,868 122,152 57,020 74,848 65,132 0 231.27% 214.23% 100.00%
Total equity 3,823,728 3,527,762 2,302,362 1,521,366 1,225,400 0 166.08% 153.22% 100.00%
Total liabilities and equity 15,384,184 13,827,982 12,580,136 2,804,048 1,247,846 0 122.29% 109.92% 100.00%
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Appendix 9

Booker Group Plc.

Consolidated Balance Sheet- Horizontal Trend Analysis
As at 31st March

Horizontal Trend Analysis

Values in Millions British Pound Change in absolute values Change in %
2013 2012 2011 2013 2012 2011 2013 2012 2011
Assets
Non-current assets
Property, plant and equipment 71.90 71.90 60.50 11.40 11.40 0.00 118.84% 118.84% 100.00%
Intangible assets 436.90 437.10 437.30 -0.40 -0.20 0.00 99.91% 99.95% 100.00%
Investments in joint venture 0.60 0.50 0.00 0.60 0.50 0.00 Full increase Full increase 0.00%
Other investment 144.90 0.00 0.00 144.90 0.00 0.00 Full increase Full increase 0.00%
Deferred tax asset 13.50 13.30 13.70 -0.20 -0.40 0.00 98.54% 97.08% 100.00%
Total Non Current Assets 667.80 522.80 511.50 156.30 11.30 0.00 130.56% 102.21% 100.00%
Current assets
Inventories 267.10 268.50 220.40 46.70 48.10 0.00 121.19% 121.82% 100.00%
Trade and other receivables 96.60 81.70 87.10 9.50 -5.40 0.00 110.91% 93.80% 100.00%
Cash and cash equivalents 77.20 63.50 46.20 31.00 17.30 0.00 167.10% 137.45% 100.00%
Total Current Assets 440.90 413.70 353.70 87.20 60.00 0.00 124.65% 116.96% 100.00%
Total Assets 1,108.70 936.50 865.20 243.50 71.30 0.00 128.14% 108.24% 100.00%
Liabilities
Current liabilities
Interest bearing loans and
0.00 0.10 0.30 -0.30 -0.20 0.00 0.00% 33.33% 100.00%
borrowings
Trade and other payables 486.50 471.80 424.20 62.30 47.60 0.00 114.69% 111.22% 100.00%
Current tax 21.20 15.20 17.10 4.10 -1.90 0.00 123.98% 88.89% 100.00%
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Total current liabilities 507.70 487.10 441.60 66.10 45.50 0.00 114.97% 110.30% 100.00%
Non-current liabilities
Interest bearing loans and
0.00 0.00 18.80 -18.80 -18.80 0.00 0.00% 0.00% 100.00%
borrowings
Other payables 28.00 28.20 28.30 -0.30 -0.10 0.00 98.94% 99.65% 100.00%
Retirement benefit liabilities 6.80 19.00 8.00 -1.20 11.00 0.00 85.00% 237.50% 100.00%
Provisions 28.10 32.80 34.60 -6.50 -1.80 0.00 81.21% 94.80% 100.00%
Total non-current liabilities 62.90 80.00 89.70 -26.80 -9.70 0.00 70.12% 89.19% 100.00%
Total liabilities 570.60 567.10 531.30 39.30 35.80 0.00 107.40% 106.74% 100.00%
Equity
Share capital 17.30 15.70 15.30 2.00 0.40 0.00 113.07% 102.61% 100.00%
Share premium 34.90 49.10 45.30 -10.40 3.80 0.00 77.04% 108.39% 100.00%
Merger reserve 260.80 260.80 260.80 0.00 0.00 0.00 100.00% 100.00% 100.00%
Other reserve 136.80 0.00 0.00 136.80 0.00 0.00 Full increase Full increase 0.00%
Share option reserve 6.60 3.80 4.10 2.50 -0.30 0.00 160.98% 92.68% 100.00%
Retained earnings 81.70 40.00 8.40 73.30 31.60 0.00 972.62% 476.19% 100.00%
Total equity 538.10 369.40 333.90 204.20 35.50 0.00 161.16% 110.63% 100.00%
Total equity and liabilities 1,108.70 936.50 865.20 243.50 71.30 0.00 128.14% 108.24% 100.00%