Unlevered Free Cash Flow (mm)

Fiscal Year 2017

Revenue Rp206,057,000,000,000
COGS Rp156,839,000,000,000
Gross Profit 49,218,000,000,000
Operating Expenses
Selling, General, Administrative Rp 21,026,000,000,000
Total Operating Expenses 21,026,000,000,000
EBITDA 28,192,000,000,000
Depreciation & Amortization Rp 7,866,000,000,000
Operating Profit (EBIT) 20,326,000,000,000
Operating Taxes 5,081,500,000,000
NOPAT (Net Operating Profit After Taxes) 15,244,500,000,000
(+) Depreciation & Amortization 7,866,000,000,000
(-) Capital Expenditures
(-) Change in NWC --
NWC 22,806,000,000,000
Current Assets Rp121,528,000,000,000
Current Liabilitites Rp 98,722,000,000,000
Unlevered Free Cash Flow 23,110,500,000,000

Assumptions
Fiscal Year 2017
Revenue Growth

COGS % of Revenue 76.1%

SG&A % of Revenue 10.2%
Tax % of EBIT 25.0%
NWC % of Sales 11%
 2018 2019 2020 2021
Rp239,205,000,000,000 Rp237,166,000,000,000 Rp175,046,000,000,000 Rp233,485,000,000,000
Rp180,108,000,000,000 Rp174,734,000,000,000 Rp123,071,000,000,000 Rp170,044,000,000,000
59,097,000,000,000 62,432,000,000,000 51,975,000,000,000 63,441,000,000,000

Rp 22,807,000,000,000 Rp 22,796,000,000,000 Rp 24,048,000,000,000 Rp 23,760,000,000,000

22,807,000,000,000 22,796,000,000,000 24,048,000,000,000 23,760,000,000,000
36,290,000,000,000 39,636,000,000,000 27,927,000,000,000 39,681,000,000,000
Rp 9,422,000,000,000 Rp 13,452,000,000,000 Rp 15,057,000,000,000 Rp 14,148,000,000,000
26,868,000,000,000 26,184,000,000,000 12,870,000,000,000 25,533,000,000,000
6,717,000,000,000 6,546,000,000,000 3,217,500,000,000 6,383,250,000,000
20,151,000,000,000 19,638,000,000,000 9,652,500,000,000 19,149,750,000,000
9,422,000,000,000 13,452,000,000,000 15,057,000,000,000 14,148,000,000,000
4,472,000,000,000 (1,088,000,000,000) (8,104,000,000,000) 514,000,000,000
(5,664,000,000,000) 11,954,000,000,000 17,476,000,000,000 9,912,000,000,000
17,142,000,000,000 29,096,000,000,000 46,572,000,000,000 56,484,000,000,000
Rp133,609,000,000,000 Rp129,058,000,000,000 Rp132,308,000,000,000 Rp160,262,000,000,000
Rp116,467,000,000,000 Rp 99,962,000,000,000 Rp 85,736,000,000,000 Rp103,778,000,000,000
30,765,000,000,000 22,224,000,000,000 15,337,500,000,000 22,871,750,000,000

2018 2019 2020 2021

16.1% -0.9% -26.2% 33.4%

75.3% 73.7% 70.3% 72.8%

9.5% 9.6% 13.7% 10.2%
25.0% 25.0% 25.0% 25.0%
7% 12% 27% 24%
 2022A 2023A 2024A 2025A
246,575,755,770,989 260,400,468,270,058 275,000,288,099,060 290,418,673,042,231
181,588,780,721,541 191,769,881,773,760 202,521,804,537,671 213,876,553,157,508
64,986,975,049,448 68,630,586,496,297 72,478,483,561,388 76,542,119,884,723

25,092,147,063,489 26,498,983,344,097 27,984,696,426,895 29,553,708,681,429

25,092,147,063,489 26,498,983,344,097 27,984,696,426,895 29,553,708,681,429
39,894,827,985,959 42,131,603,152,200 44,493,787,134,493 46,988,411,203,294
9,617,003,180,766 10,156,197,732,400 10,725,623,194,749 11,326,974,518,107
30,277,824,805,193 31,975,405,419,800 33,768,163,939,744 35,661,436,685,187
7,569,456,201,298 7,993,851,354,950 8,442,040,984,936 8,915,359,171,297
22,708,368,603,895 23,981,554,064,850 25,326,122,954,808 26,746,077,513,890
9,617,003,180,766 10,156,197,732,400 10,725,623,194,749 11,326,974,518,107
365,499,440,525 385,991,822,950 407,633,147,591 430,487,831,957
(16,391,013,026,801) 2,247,885,305,675 2,373,917,031,644 2,507,014,952,632
40,092,986,973,199 42,340,872,278,875 44,714,789,310,519 47,221,804,263,151

48,350,885,370,936 31,503,874,668,625 33,270,195,970,322 35,135,549,247,408

2022A 2023A 2024A 2025A

5.6% 5.6% 5.6% 5.6%

73.6% 73.6% 73.6% 73.6%

10.2% 10.2% 10.2% 10.2%
25.0% 25.0% 25.0% 25.0%
16% 16% 16% 16%
 2026A 2027A 2028A 2029A
306,701,517,422,515 323,897,288,710,477 342,057,171,792,450 361,235,221,327,324
225,867,926,147,319 238,531,616,995,529 251,905,320,410,085 266,028,844,520,418
80,833,591,275,196 85,365,671,714,948 90,151,851,382,365 95,206,376,806,906

31,210,690,425,333 32,960,573,825,989 34,808,567,581,595 36,760,172,425,369

31,210,690,425,333 32,960,573,825,989 34,808,567,581,595 36,760,172,425,369
49,622,900,849,863 52,405,097,888,960 55,343,283,800,771 58,446,204,381,538
11,962,041,683,195 12,632,715,029,222 13,340,990,880,656 14,088,977,489,482
37,660,859,166,667 39,772,382,859,737 42,002,292,920,114 44,357,226,892,056
9,415,214,791,667 9,943,095,714,934 10,500,573,230,029 11,089,306,723,014
28,245,644,375,001 29,829,287,144,803 31,501,719,690,086 33,267,920,169,042
11,962,041,683,195 12,632,715,029,222 13,340,990,880,656 14,088,977,489,482
454,623,905,240 480,113,210,811 507,031,620,067 535,459,258,273
2,647,575,247,551 2,796,016,307,794 2,952,779,982,622 3,118,332,894,363
49,869,379,510,701 52,665,395,818,495 55,618,175,801,117 58,736,508,695,480

37,105,486,905,405 39,185,872,655,420 41,382,898,968,053 43,703,105,505,888

2026A 2027A 2028A 2029A

5.6% 5.6% 5.6% 5.6%

73.6% 73.6% 73.6% 73.6%

10.2% 10.2% 10.2% 10.2%
25.0% 25.0% 25.0% 25.0%
16% 16% 16% 16%
 2030A 2031A 2032A
381,488,522,645,504 402,877,361,668,943 425,465,404,358,060
280,944,229,370,216 296,695,872,053,704 313,330,658,867,914
100,544,293,275,288 106,181,489,615,239 112,134,745,490,147

38,821,197,499,014 40,997,777,644,192 43,296,391,663,479

38,821,197,499,014 40,997,777,644,192 43,296,391,663,479
61,723,095,776,274 65,183,711,971,047 68,838,353,826,667
14,878,901,310,617 15,713,113,629,173 16,594,097,559,281
46,844,194,465,657 49,470,598,341,874 52,244,256,267,386
11,711,048,616,414 12,367,649,585,469 13,061,064,066,847
35,133,145,849,243 37,102,948,756,406 39,183,192,200,540
14,878,901,310,617 15,713,113,629,173 16,594,097,559,281
565,480,743,059 597,185,436,297 630,667,710,090
3,293,167,827,368 3,477,805,194,826 3,672,794,587,826
62,029,676,522,848 65,507,481,717,675 69,180,276,305,501

46,153,398,589,432 48,741,071,754,455 51,473,827,461,904

2030A 2031A 2032A

5.6% 5.6% 5.6%

73.6% 73.6% 73.6%

10.2% 10.2% 10.2%
25.0% 25.0% 25.0%
16% 16% 16%
Fixed Assets Schedule
Fiscal Year 2017 2018 2019 2020
Sales/ Revenue 206,057,000,000,000 239,205,000,000,000 237,166,000,000,000 175,046,000,000,000
D&A Rp 7,866,000,000,000 Rp 9,422,000,000,000 Rp 13,452,000,000,000 Rp 15,057,000,000,000
CapEx Rp 10,725,000,000,000 Rp 15,197,000,000,000 Rp 14,109,000,000,000 Rp 6,005,000,000,000

Assumptions
Fiscal Year 2017 2018 2019 2020
D&A as a % of CapEx 73.3% 62.0% 95.3% 250.7%
CapEx as a % Sales 5.2% 6.4% 5.9% 3.4%
 2021 2022A 2023A 2024A 2025A
233,485,000,000,000 246,575,755,770,989 260,400,468,270,058 275,000,288,099,060 290,418,673,042,231
Rp 14,148,000,000,000 9,617,003,180,766 10,156,197,732,400 10,725,623,194,749 11,326,974,518,107
Rp 6,519,000,000,000 6,884,499,440,525 7,270,491,263,475 7,678,124,411,066 8,108,612,243,023

2021 2022A 2023A 2024A 2025A

217.0% 139.7% 139.7% 139.7% 139.7%
2.8% 2.8% 2.8% 2.8% 2.8%
 2026A 2027A 2028A 2029A 2030A
306,701,517,422,515 323,897,288,710,477 342,057,171,792,450 361,235,221,327,324 381,488,522,645,504
11,962,041,683,195 12,632,715,029,222 13,340,990,880,656 14,088,977,489,482 14,878,901,310,617
8,563,236,148,264 9,043,349,359,075 9,550,380,979,142 10,085,840,237,415 10,651,320,980,474

2026A 2027A 2028A 2029A 2030A

139.7% 139.7% 139.7% 139.7% 139.7%
2.8% 2.8% 2.8% 2.8% 2.8%
 2031A 2032A
402,877,361,668,943 425,465,404,358,060
15,713,113,629,173 16,594,097,559,281
11,248,506,416,771 11,879,174,126,861

2031A 2032A
139.7% 139.7%
2.8% 2.8%
Net Working Capital
Fiscal Year 2017 2018 2019
Accounts Receivables
Merchandise Inventory
Other Current Assets
Current Assets 121,528,000,000,000 133,609,000,000,000 129,058,000,000,000
% of Sales
Accounts Payable
Accrued Salaries and Benefits
Accrued Member Rewards
Deferred Membership Fees
Other Current Liabilities
Current Liabilities 98,722,000,000,000 116,467,000,000,000 99,962,000,000,000
% of Sales
Assumptions
Fiscal Year 2017 2018 2019
Revenue 206,057,000,000,000 239,205,000,000,000 237,166,000,000,000
COGS 156,839,000,000,000 180,108,000,000,000 174,734,000,000,000

Days Sales Outstanding (DSO)

Days Inventory Outstanding (DIO)
Days Payable Outstanding (DPO)

Other Current Assets as a % of Revenue

Accrued Salaries as a % of Revenue
Accrued Member Rewards as a % of Revenue
Deferred Membership Fees as a % of Revenue
Other Current Liabilities as a % of Revenue
 2020 2021 2022A 2023A 2024A

132,308,000,000,000 160,262,000,000,000

85,736,000,000,000 103,778,000,000,000

2020 2021 2022A 2023A 2024A

175,046,000,000,000 233,485,000,000,000 246,575,755,770,989 260,400,468,270,058 275,000,288,099,060
123,071,000,000,000 170,044,000,000,000 181,588,780,721,541 191,769,881,773,760 202,521,804,537,671
 2025A 2026A 2027A 2028A 2029A

2025A 2026A 2027A 2028A 2029A

290,418,673,042,231 306,701,517,422,515 323,897,288,710,477 342,057,171,792,450 361,235,221,327,324
213,876,553,157,508 225,867,926,147,319 238,531,616,995,529 251,905,320,410,085 266,028,844,520,418
 2030A 2031A 2032A

2030A 2031A 2032A

381,488,522,645,504 402,877,361,668,943 425,465,404,358,060
280,944,229,370,216 296,695,872,053,704 313,330,658,867,914
Unlevered Free Cash Flow (mm)
Fiscal Year 2022A
Unlevered Free Cash Flow Rp 48,350,885,370,936

Projection Year 0
Present Value of Free Cash Flow IDR48,350,885,370,935.60

Implied Share Price Calculation

Sum of PV of FCF Rp 266,369,696,913,614
Growth Rate 5%
WACC 12.1%
Terminal Value 761,178,337,852,707
PV of Terminal Value 242,890,575,689,889
Enterprise Value 509,260,272,603,503
(+) Cash
(-) Debt Rp 34,855,000,000,000
(-) Minority Interest
Equity Value 474,405,272,603,503
Diluted Shares Outstanding (mm) 40,480,000,000
Implied Share Price 11,719.50
 2023A 2024A 2025A
Rp 31,503,874,668,625 Rp 33,270,195,970,322 Rp 35,135,549,247,408

1 2 3
IDR28,103,240,206,156.00 IDR26,475,258,413,825.70 IDR24,941,583,352,559.80

Sensitivity Table

11,719.50 4.00%
11.10%
11.60%
WACC

12.10%
12.60%
13.10%
 2026A 2027A 2028A
Rp 37,105,486,905,405 Rp 39,185,872,655,420 Rp 41,382,898,968,053

4 5 6
IDR23,496,751,964,008.30 IDR22,135,617,657,227.30 IDR20,853,331,976,160.00

Sensitivity Table

Growth Rate
4.50% 5.00% 5.50%
 2029A 2030A 2031A
Rp 43,703,105,505,888 Rp 46,153,398,589,432 Rp 48,741,071,754,455

7 8 9
IDR19,645,327,329,095.40 IDR18,507,300,718,586.30 IDR17,435,198,413,869.20

6.00%
 2032A
Rp 51,473,827,461,904

10
IDR16,425,201,511,190.80
 Weighted Average Cost of Capital (WACC) Assumption
Equity (2021) Rp 215,615,000,000,000 Risk-free Rate
Debt (2021) Rp 151,696,000,000,000 Equity Risk Premium
βASII
Cost of Debt 8.8% Bond spread (rating)
Tax Rate 25.0% Tax
D/(D+E) 41.3%
After Tax Cost of Debt 6.6%

Risk Free Rate (IDN Gov 10-Yr Treasury Yield) 7.5%

Equity Risk Premium 6.1%
βASII 1.388
E/(D+E) 58.7%
Cost of Equity 16.0%
Adjusted ke

WACC 12.1%
mption
7.5%
6.1%
1.388
1.37%
25%
Consolidated Statements Of Income - USD ($) shares in Thousands, $ in Millions
Sep. 01, 2019 Aug. 30, 2020
REVENUE
Total revenue $152,703 $166,761
OPERATING EXPENSES
Merchandise costs 132,886 144,939
Selling, general and administrative 13,502 14,687
Depreciation & Amortization 1,492 1,645
Preopening expenses 86 55
Operating Income 4,737 5,435
OTHER INCOME (EXPENSE)
Interest expense -150 -160
Interest income and other, net 178 92
INCOME BEFORE INCOME TAXES 4,765 5,367
Income Tax Expense (Benefit) 1,061 1,308
Net Income 3,704 4,059

Diluted (shares) 442,923 443,901

Merchandise Sales Revenue 149,351 163,220

Membership Fee Revenue 3,352 3,541
Aug. 29, 2021

$195,929

170,684
16,680
1,781
76
6,708

-171
143
6,680
1,601
5,079

444,346

192,052
3,877
Consolidated Balance Sheets - USD ($) $ in Millions
CURRENT ASSETS
Cash and cash equivalents
Short-term investments
Receivables, net
Merchandise inventories
Other current assets
Total current assets
OTHER ASSETS
Property and Equipment, net
Operating lease right-of-use assets
Other long-term assets
TOTAL ASSETS
CURRENT LIABILITIES
Accounts payable
Accrued salaries and benefits
Accrued member rewards
Deferred membership fees
Current portion of long-term debt
Other current liabilities
Total current liabilities
OTHER LIABILITIES
Long-term debt, excluding current portion
Long-term operating lease liabilities
Other long-term liabilities
Total liabilities
EQUITY
Preferred stock $.01 par value; 100,000,000 shares authorized; no shares issued and outstanding
Common Stock $.01 par value; 100,000,000 shares authorized; 441,825,000 and 441,255,000 shares issued and outstanding
Additional paid-in capital
Accumulated other comprehensive loss
Retained earnings
Total Costco stockholders' equity
Noncontrolling interests
Total equity
TOTAL LIABILITIES AND EQUITY
Sep. 02, 2018 Sep. 01, 2019 Aug. 30, 2020 Aug. 29, 2021

6,055 8,384 12,277 11,258

1,204 1,060 1,028 917
1,669 1,535 1,550 1,803
11,040 11,395 12,242 14,215
321 1,111 1,023 1,312
20,289 23,485 28,120 29,505

19,681 20,890 21,807 23,492

0 2,788 2,890
860 1,025 2,841 3,381
40,830 45,400 55,556 59,268

11,237 11,679 14,172 16,278

2,994 3,176 3,605 4,090
1,057 1,180 1,393 1,671
1,624 1,711 1,851 2,042
90 1,699 95 799
2,924 3,792 3,728 4,561
19,926 23,237 24,844 29,441

6,487 5,124 7,514 6,692

0 2,558 2,642
1,314 1,455 1,935 2,415
27,727 29,816 36,851 41,190

0 0 0 0
4 4 4 4
6,107 6,417 6,698 7,031
-1,199 -1,436 -1,297 -1,137
7,887 10,258 12,879 11,666
12,799 15,243 18,284 17,564
304 341 421 514
13,103 15,584 18,705 18,078
40,830 45,400 55,556 59,268
Consolidated Statements Of Cash Flows - USD ($) $ in Millions

CASH FLOWS FROM OPERATING ACTIVITIES

Net income including noncontrolling interests
Adjustments to reconcile net income including noncontrolling interests to net cash provided by operating activities:
Depreciation and amortization
Non-cash lease expense
Stock-based compensation
Other non-cash operating activities, net
Deferred income taxes
Changes in operating assets and liabilities:
Merchandise inventories
Accounts payable
Other operating assets and liabilities, net
Net Cash Provided by (Used in) Operating Activities
CASH FLOWS FROM INVESTING ACTIVITIES
Purchases of short-term investments
Maturities and sales of short-term investments
Additions to property and equipment
Acquisitions
Other investing activities, net
Net Cash Provided by (Used in) Investing Activities
CASH FLOWS FROM FINANCING ACTIVITIES
Change in bank payments outstanding
Proceeds from short-term borrowings
Proceeds from issuance of long-term debt
Repayments of long-term debt
Tax withholdings on stock-based awards
Repurchases of common stock
Cash dividend payments
Other financing activities, net
Net Cash Provided by (Used in) Financing Activities
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS
Net change in cash and cash equivalents
CASH AND CASH EQUIVALENTS BEGINNING OF YEAR
CASH AND CASH EQUIVALENTS END OF YEAR
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Interest paid
Income taxes paid, net
SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES:
Cash dividend declared, but not yet paid
Sep. 01, 2019 Aug. 30, 2020 Aug. 29, 2021

3704 4059 5079

1492 1645 1781

0 194 286
595 619 665
9 42 85
147 104 59

-536 -791 -1892

322 2261 1838
623 728 1057
6356 8861 8958

-1094 -1626 -1331

1231 1678 1446
-2998 -2810 -3588
0 -1163 0
-4 30 -62
-2865 -3891 -3535

210 137 188

0 0 41
298 3992 0
-89 -3200 -94
-272 -330 -312
-247 -196 -496
-1038 -1479 -5748
-9 -71 -67
-1147 -1147 -6488
-15 70 46
2329 3893 -1019
6055 8384 12277
8384 12277 11258

141 124 149

1187 1052 1527

286 0 0