Finance

César Ritz Colleges

Decision Making in Entrepreneurial Finance

Final

Submitted on Date by:

16 December 2021

Yan Qiao (Joya) - 737387

Wen,Hsin-Ling(Estela) - 745967

Nicholas Santoso - 746565

Word count :

4120

Submitted to: Yuriy Barabantsev

1

Executive Summary

The report aims to analyze two firms, which are Royal Caribbean Cruises Limited and

Carnival Corporation & Public Limited Company in four parts: firms' overview, stock

valuation, financing mixed and final argument provided to investors. According to two firms'

stock performances in the past 5 years, it's clear to see the trend that pandemic made 2 firms

break in finance; for the stock valuation part, the authors utilize 3 models to measure whether

two firms' fair value assets result is considerable with self-analysis and refer to history

situation, then come up with the result that CCL's share is long and RCL's is short sale or

wait; for the financing mixed and final arguments part, the authors also analyze 3 financial

statements with two horizontal, vertical, and trend analysis to analyze the performance of

stock and evaluation of the companies. The result is that it would be better to wait and see for

two companies owing to the harsh situation (COVID-19).

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Table of content

Executive Summary ...................................................................................................................2

Table of content ..........................................................................................................................3

Overview ....................................................................................................................................5

Common stock valuation ............................................................................................................9

Valuation Model ...........................................................................................................9

Analysis suggestion ....................................................................................................11

The suggestion from analyzing ..................................................................................11

Discussion ..................................................................................................................12

Financing Mix ..........................................................................................................................17

Final Argument .........................................................................................................................20

Group Reflection ......................................................................................................................23

References List .........................................................................................................................24

Appendix ..................................................................................................................................27

1. Revenue Multiple ................................................................................................27

2. DDM ....................................................................................................................27

3. RCL DDM ..............................................................................................................28

4. RCL’s Income statement ........................................................................................30

5. RCL’s Vertical Analysis ..........................................................................................31

6. RCL’s Horizontal Analysis .....................................................................................32

7. RCL’s Balance Sheet ..............................................................................................33

8. RCL’s Vertical analysis ..........................................................................................34

9. RCL’s Horizontal Analysis .....................................................................................35

10. RCL’s Cash Flow .................................................................................................36 3

11. RCL’s Trend Analysis ...........................................................................................36

12. RCL’s Horizontal Analysis ...................................................................................37

13.CCL’s Income Statement .......................................................................................38

14. CCL’s Vertical Analysis ........................................................................................38

15. CCL’s Horizontal Analysis ...................................................................................39

16. CCL’s Balance Sheet ............................................................................................40

17. CCL’s Vertical Analysis ........................................................................................41

18. Horizontal Analysis ..............................................................................................41

19. CCL’s Cash Flow .................................................................................................42

20. CCL’s Trend Analysis ...........................................................................................42

21. CCL’s Horizontal Analysis ...................................................................................42

4

Overview

Introduction

Royal Caribbean Cruises Limited (RCL) is a global cruise company, which was developed

into the current parent company in 1985, set their headquarters in Miami. It owns both four

main cruise brands (Royal Caribbean International, Celebrity Cruises, Azamara and Silversea

Cruises) and a half joint interest in TUI Cruises GmbH (“TUIC”), reaching out to almost

1000 destinations on 7 continents. Till the end of 2020, the global and partner brands of RCL

have managed 61 ships in cruise travel industry with a large quantity of roughly 137930

berths. RCL had a damage impact on both financial part and operations due to the pandemic,

they sell Azamara brand and the transaction desired to close in the first quarter of 2021.

(Royal Caribbean Group Annual Report, 2021)

Carnival Corporation & Public Limited Company (CCL), founded in 1974 in Panama, is one

of world’s largest leisure travel companies including 9 of leading cruise lines. Their

operations radiate 4 continents, having investment embody Carnival Cruise Line, Princess

Cruises, Holland America Line, P&O Cruises (Australia), Seabourn, Costa Cruises, AIDA

Cruises, P&O Cruises (UK) and Cunard. To overcome difficulties that they suffered during

Covid-19, they stopped the services of guest cruise operations and adjust their inner

administration crews, expanding debt maturities and guarantee financial covenant

amendments. Their gained approximately $9.5 billion in revenue till the end of 2020 and

desire to maintain the standard through 2021. （Carnival Corporation & PLC Annual Report,

2020）

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History and principal activities

Activities discussed will be based on the five recent years. For Carnival Corporation & Public

Limited Company (CCL), they’ve declared the expansion of its global Fleet Operations

Centers with the beginning of new facilities in Seattle, which was the second center they’ve

had before in 2017 (Carnival Corporation & PLC, no date). With sustained allowances

improvement and strong cash flow, they improved their quarterly dividend to $0.45 per share

(PRNewswire, nodate). In 2018, their portfolio features global brands, which includes nine of

the world’s leading cruise lines as the largest fleet of the world (Carnival Corporation & PLC,

no date). At the same time, they launched and renovated system of travel agent finder in

Carnival.com (carnivalcorp.com, no date), which made them gain positive demand trends

(Carnival Corporation & PLC Annual Report, 2018). In 2019, they found Asia cruises market

was booming in this case they ported 5% of their total capacity in China. This year their

quarterly dividend has doubled, which disturbed the total number of dividends to their

shareholders (Carnival Corporation & PLC Annual Report, 2019). In 2020, Diamond

Princess, which is affiliated to CCL, suffering from a wide range of COVID-19 infection,

which forced them to pause guest cruise operations in mid-March. (Carnival Corporation &

PLC Annual Report, 2020). To sum up, the operation part of CCL had performed well until

the COVID-19 broke the orders and let them suffer from pausing all the managements.

For Royal Caribbean Cruises Limited (RCL), they’ve completed their acquisition of Silversea

Cruises shares, which combined two leading characters in the cruise industry and filled in

RCL's portfolio of cruise brands across key market segments in 2018 (Royal Caribbean

Group Press Center, no date). Hurricane Dorian’s impacted the finance broke hard that almost

16 sailings were cancelled and made the financial department broke in 2019 (Royal

Caribbean Cruises Limited Annual Report, 2020). Then they executed a voluntary suspension

of its cruise operations as part pf the global containment due to COVID-19 (PRNewswire, no

date) in 2020 and since the COVID-19 conditions become even worse, they set a permanent

contract to sell the Azamara brand, including its three-ship fleet for $201 million (Royal

Caribbean Group Annual Report, 2021). RCL declared to shut down offering of about 16

billion shares of common stock due to general corporate purpose (PRNewswire, nodate). In

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brief, RCL has also suffered a lot from COVID-19 since 2020 and this trend will remain

impacting company's finance department for a long time.

Overview of Stock performance

Figure 1: CCL, RCL, Stock Performance Chart Compare with DJI

The stock performance of Royal Carnibbean Cruises Limited (RCL), Carnival Corporation &

Public Limited Company (CCL) of the past five years (Figure 1) see a similar trend but quite

different from Dow Jones Industrial Average (DJI).

Looking on the stock performance chart with the industry average (figure 1), RCL saw a

steep increase from 2017 to 2018 (from USD 84.03 per share to USD 127.53 per share) since

they achieved beating their Double-Double EPS targets (PRNewswire, no date) and stuck on

top in the first quarter of 2018 which the stock performance increased by 60.63% . CCL also

saw a upward trend during first quarter of 2017 due to adjusting delayed from fuel and

currency (Carnival Corporation&PLC Annual Report, 2017) and they maintained this trend

to the end of 2017 and the performance had increased by 28.87%. And their stock

performances are both higher than average, comparing with DJI during the period of 2017 to

2018.

From 2018 to 2020, CCL had a distinct decrease (from USD 65.88 per share to USD 45.93

per share) owing to big effect on COVID-19. During this sensitive period, they had to pause

their guest cruise performances in mid-March 2020 (Carnival Corporation&PLC Annual

Report,2020). Since this period, CCL had been largely below the average compared with DJI.

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RCL fluctuated unsteadily but met the average from 2018 to the end of 2019 (from USD

128.97 per share to USD 133.33 per share) And both of the companies had dramatically

dropped to the bottom since 2020 in that they've suspended for a long time.

After first quarter of 2020, RCL saw a smooth increase in trend but still under DJI which

increased by 4%. This had something to do with the agreement which they sell the Azamara

brand in January 2021. (Royal Caribbean Group Annual Report, 2021) But CCL still left to

the bottom and decreased much by 65.15%.

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Common stock valuation

The common stock valuation portion will through the multiple dimensions, fair value, and

analysts suggestions to assess the CCL and RCL’s common stock. Then authors will give the

suggestion for the two companies common stock at the end of the portion will discuss the

conclusion of the common stock valuation.

Market price (Yahoo! Finance, 2021)

CCL’s market price: 19.24

RCL’s market price: 74.70

Valuation Model

In this part, the authors will use to valuation model to get the fair values, then compare them

with the market price to find what is the situation of the stock for now.

1. Market Cap to Revenue Multiple

The revenue multiple is a tool to find the number of times it is valuation, and it allows to

through calculation to find the fair value. In the approach of the authors use for this

evaluation, the industry price to sales ratio is applied. From the result of revenue multiple, the

fair value of CCL is 31.13, hence it is undervalued. While RCL’s fair value from revenue

multiple is 12.72, hence it is overvalued.

2. CAPM & DDM

In the mid-1960s the CAPM by Sharpe, Lintner and Treynor (Brealey, Myers and Allien,

2018) is still widely used until today. In the process of this evaluation, the authors will use

CAPM to find the rate to discount the future dividends of CCL and RCL, then use DDM to

calculate the fair value. DDM (Dividend Discount Model) is an approach through the sum of

further dividends to discount for finding the present value (Berk, DeMarzo and Harford). The

authors went back through the past 13 years’ dividend, to find the next 5 years of predicted

dividend through linear progression model, and find the average growth rate for the next 5

years and use it for g in the calculation. Through DDM, the authors found the CCL’s fair

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value is 9.22, and RCL’s fair value is 14.33, which suggests that the two stocks are

overvalued.

Below is the linear progression chart to show the goodness-of-fit for the model.

Figure2- Linear char of the CCL’s dividend of past of 13 years. (Qiao, Santoso and Wen, 2021 )

Figure3- Linear char of the RCL’s dividend of past of 13 years. (Qiao, Santoso and Hsin-Ling, 2021 )

R-square’s value is anywhere between 0 to 1, with higher value usually means more data fit

in the regression model. Judging from the two charts, the R-square’s numbers for both

companies are quite low, even particularly low for CCL, which makes the data not

statistically fit. Hence, this is the weakness of the DDM used for the two companies.

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Analysis suggestion

Figure4 of left -Yahoo finance’s recommendation of CCL. (Yahoo Finance, 2021) Figure5 of right -Yahoo finance’s recommendation of RCL. (Yahoo Finance, 2021)

Most analysts rate the stock as a strong buy and hold for CCL’s stock, and for RCL, most

analysts rate the stock as a strong buy. Also, according to Nasdaq’ CCL analyst research, the

consensus of seven analysts is to buy, and for the RCL, there are seven analysts also

suggested to buy (Nasdaq, n.d.). The analyst from the Nasdaq stated that based on twelve-

month price targets for the two firms in the last three months, ‘The average price target of

CCL is $30 with a high estimate of $41 and a low estimate of $20 (Nasdaq, n.d.), and The

average price target of RCL is $85.4 with a high estimate of $111 and a low estimate of

$75’(Nasdaq, n.d.).

The suggestion from analyzing

Due to the valuation models having limitations, the common stock assessment can not only

use one approach. The authors will sum up all results above, to give the suggestion for CCL

and RCL’s common stock. And the authors made a table to show the table clearly.

Figure6 - Result compare table. (Qiao, Santoso and Wen, 2021 )

Valuation approaches CCL’s result RCL’s result

Revenue multiple Undervalue Overvalue

DDM Overvalue Overvalue

Analysts suggestion Buy Buy

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Judging from the result table shows, the CCL has two results stating a long position

(undervalued), and RCL only has one recommendation for long position from the analysts

suggestion. This stated that CCL is worth be invested in a long position, while the situation

RCL’s stock is not optimistic. In the DDM side, CCL’s result is overvaluing, but the revenue

multiple and analyst suggestion shows it is undervalued. Due to the particularity of each

model, the final assessment result needs to follow the most of result, so the CCL’s stock is

undervalued as well. According to the analyzes above that, the suggestion for CCL is to take

a long position buy and hold. The recommendation for RCL common stock is to take a short

position, or although the authors consider to wait for the situation to get better, then to invest

RCL’s common stock.

Discussion

The stock valuation is a complicated and comprehensive’s process, one model’s result does

not have any reference value. Such as the revenue multiple, the problem of the revenue

multiple is not easily cover the reality of the firm that has lost profit (Damodaran, 2011).

Moreover, the global crisis allows to impact the stock of each firm strongly, through financial

crisis (Amado, 2021 and Ashworth, 2020 ) and COIVD-19, CCL and RCL both have their

dividend paused in financial crisis and COIVD-19 periods. The investors also could follow

the crisis the choose how to invest the stock.

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Short to Medium Term Prospects

Financial Perspective

Figure7 - (Qiao, Santoso, and Wen, 2021 )

According to the vertical analysis, RCL gross profit was increasing steadily until 2019. Then

due to the pause in operations it is declining, and still declining until Q3 2021. However, the

authors may argue that despite the obvious decline in net income in 2021, the gap is not as

big as it is for cost of revenue, showing a good cost management for RCL.

Figure 8 - (Qiao, Santoso, and Wen, 2021 )

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The similar condition can be seen for CCL income statement, however the change of

net income is not as bad as RCL. This is due to their booked position for the Q2 2021 is at

new historical high, along with the strong booking volume for the future trips, and they even

have an unprecedented early demand for 2023 trips (Q3 CCL Report, 2021).

Figure9 - (Qiao, Santoso, and Wen, 2021 )

From the horizontal analysis, we can see that the total revenue of RCL was growing at the

average of 11.5% from 2017 - 2019, showing a good sign of the company. Although the

percentage in horizontal analysis shows a positive change from 2019 to 2020, please be

advised that the number is growing in minus especially for gross profit. There is a slight

reduce of cost of revenue from 2020 – TTM, this is due to RCL has been shown to have

drastically reduce their operational cost to minimize the impact of operational pause since

early 2019.

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Figure10 - (Qiao, Santoso, and Wen, 2021 )

As for CCL, the growth of total revenue from 2017 - 2019 was around 9%. The gross profit

and net income for CCL is almost similar to RCL. However, we can see the difference in cost

of revenue. There is quite a gap from 2019 – 2020, and 2020 – Q3 2021. This is because the

cost of revenue for CCL is still quite big in 2020 due to they put ship and other impairments

to the cost of revenue (CCL annual report, 2020), while RCL does not.

Managerial Perspectives

According to RCL Annual Report 10-K (2020), one of the major factors that could

affect the business is still the effect of Covid-19. The suspension of operations due to travel

bans and cruising advisories, RCL determines that it is necessary to voluntarily extend the

global operation suspension until at least April 30,2021. This results in the agreement of not

paying cash dividends until the end of Q3 2022. Aside from that, their operating costs

including fuel, food, payroll and benefits, air taxes, insurance, and security costs are all

subject to the geopolitical conditions. Being a globally operated business also provide a

certain risk for RCL as they are subject to more volatile regulations from different countries

across the globe. However, the company has worked relentlessly in restarting their

operations, seeing over 500 thousands guests sailed across five brands since the restart of

operations, and over 1 million expected by the end of the year (RCL 8K report Q3, 2021).

CCL also face the same risk from Covid-19 with a significant impact on the financial

conditions and operations. According to CCL Annual report 10-K (2020), in addition of the

direct cost of covid-19 such as providing air transport for crews and passengers and

repatriated shipboard crews, they have also been a subject to negative publicity as the result

of illness and loss of life in certain cases which may affect the company in a longer,

unpredictable term. Aside from all the similar reason with RCL, CCL shipbuilding contracts

are typically denominated in Euros, hence movements in foreign currency exchange will also

affect their financial activity. However, according to CCL business update Q3 (2021), the

company has sufficient liquidity of $7.8 billion to return to full cruise operations.

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Market Perspective

According to Statista (2021), the global cruise industry revenue grew to over 27

billion USD in recent years, before the hard impact of Covid-19. The USA is the leading

market with a margin of 4 times compared to Germany, the 2nd position. For cruise industry,

it is observed that offline sales channel is still dominating the industry, despite online booking

has been dominating other aspects of travel industry. Demographically speaking, most of the

ocean cruise passengers come from North America, which doubles the number of passengers

hailing from Western Europe. It is also seen that the islands of Carribean, the Bahamas, and

Bermuda have remained the top destinations.

Looking back further on the Covid-19 effects when the passengers on Diamond

Princess and Grand Princess got infected and forced to quarantine onboard, shaped the

perspectives of public of how terrifying lockdown onboard, and made it hard to imagine the

continuation of cruise industry. Even with the vaccination momentum in the USA in April

2021 and the loosening of travel restrictions, cruise ships remained suspending their

operation. However, if cruise lines can change this perspective of public, it would turn to be

beneficial, since the demand is still there, proven by about half of cancelled passengers would

prefer to keep their money as a travel credit rather than cash back. This is also in accordance

with the policies of each cruise lines, where usually they offer higher value for the credits as

incentive (Yeginsu and Chokshi, 2021).

Looking for the future, Deloitte (2021), says that cruise lines need to be ready to

welcome a new passenger demographics, the Millennials. With the rising of Millennials first-

timer onboard, a competition of heightened personalization and customization should become

the cruise lines focus. According to Deloitte’s Passenger-First Framework, the two elements

of “empower me” and “delight me” have larger influence than the others. This means that

cruise lines who wish to turn this market into their loyal customers, need to pay attention to

how they provide opportunities and access to drive customer’s experience on their own way,

and give moments that surprise and exceed their expectations.

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Financing Mix

Figure11 - (Qiao, Santoso, and Wen, 2021 )

From the vertical analysis of RCL balance sheet, it can be seen that fixed and other assets

usually make up to more than 95% of the total asset. However, due to the pause of operation

in 2020, the company raised approximately $9 billion (roughly 27% increase of non-current

liabilities) of new capital through a combination of bond issuance, common stock public

offerings and other loan facilities (R.C. Group, 2021). As can be seen there is almost 10%

raise of the current assets, this is also to prepare its liquidity so it may be well positioned for

recovery.

.

17

Figure12 - (Qiao, Santoso, and Wen, 2021 )

Similar effort can be seen in CCL balance sheet’s vertical analysis, although with a slightly

higher volume. As can be seen in the chart, there is an increase of roughly 15% of the current

assets, and 20% raise of long-term debt in 2020. The authors may find the slight difference

does not affect much of the valuation for both company, hence stay indifferent.

Figure13 - (Qiao, Santoso, and Wen, 2021 )

Looking at the horizontal analysis of RCL balance statement, we can see a declining trend for

the total assets. Despite this, the total assets still grow up to Q3 2021 at a positive rate 0.62%,

showing a the company is still growing. Furthermore, there is an obvious increase in current

assets on 2020. However, investors may be advised that the spike in current assets is due to

the company’s effort in staying liquid during the pandemic as can be seen from the spike in

total non-current liabilities. The downtrend in 2021 shows that they are capable of surviving

with the accumulated current assets in 2020.

18

Figure14 - (Qiao, Santoso, and Wen, 2021 )

Unlike RCL, CCL total assets growth is counted as -0.15% in Q3 2021, showing a lack of

growth compared to RCL. However, the same indications can be seen in horizontal analysis

of CCL Balance sheet, although with a much higher volume, up to 413% increase of current

assets in 2020. This may due to the fact that up to the end of 2020, CCL is still bigger in size

compared to RCL, hence the need of bigger cash to keep the company afloat.

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Final Argument

Cash Flow Analysis

Figure15 - (Qiao, Santoso, and Wen, 2021 )

Based on the trend analysis of CCL cash flow, its net cash flow was already fluctuating

before the pandemic. But it was amplified by great magnitude during 2020, with 38 times

downtrend. However, please be informed that the change in amount was from (241) $ million

in 2017 to a positive 9.161 $ billion in 2020. It was the result of financing activities as

mentioned before.

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Figure16 - (Qiao, Santoso, and Wen, 2021 )

The horizontal analysis tells pretty much the same pattern, with a different range of

percentage. Here we can see clearly how the net cash flow financing in 2020 (2947%) affect

the total net cash flow change (2070%). The net cash flow operating also shows a good sign

of growing percentage on Q3 2021, a good indication that the company is starting to make

money from its daily operations, albeit still on the red.

Figure17 - (Qiao, Santoso, and Wen, 2021 )

In the trend analysis of RCL cash flow, again we can see a similar pattern. The net cash flow

shows a growth of more than 7 times compared to 2017, however please note that the cash

flow in 2017 for RCL is negative. Therefore, any positive change shown in the trend analysis

shows a more negative figure for their net cash flow.

In the horizontal analysis of RCL cash flow, we can clearly see a different progression for the

3 components of cash flow statement. The growth of net cash flow and financing cash flow

means they are relying less on the financing cash flow. And the growth of operating cash flow

shows they are starting to make money in Q3 2021 albeit still in the red.

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Figure18 - (Qiao, Santoso, and Wen, 2021 )

Investment Recommendation

After analyzing the performance of stock and the evaluation of the companies by using

different sources, the authors believe it would be better to wait and see for the two

companies. The main reason being the cruise industry is heavily impacted by the whole

Covid-19 pandemic, and up until now it is still unknown when it will really go back to its

previous state, or at least finding the status quo. For example, with the new virus Omicron

variation found, it would affect the regulations on sailing again, despite the two companies

best effort in performing health and safety protocol.

However, when compared side by side, the authors believe that RCL would be better for the

short to medium term, due to a slightly better performance on income statement, balance

sheet, and the cash flow statement. In addition, the DDM model shows a wide margin, where

the market price currently is trading 5 times higher than its fair price, creating better

opportunities for short-selling, compared to CCL that is roughly only twice higher than its

fair price. For longer term however, investors may consider CCL as a better option due to it is

currently considered undervalued by the analysts suggestion and the revenue to market cap

model.

22

Group Reflection

The authors argue that in order for the above analysis stay relevant in the next 6-12 months, is

that there is no sudden negative impact. For example, right now the two companies are

already resuming their activities although at a slower rate, but if there is an outbreak onboard

like what happened in the Diamond Princess ship, it would affect the stock price drastically.

In conclusion, the two companies are extremely vulnerable to the dynamic regulations

regarding Covid-19.

First of all, the work division should be mentioned: the overview of two firms and stock

performances for the last 5 years are measured by Estela; common stock valuation is made by

Joya and financing mix and final argument are analyzed by Nicholas.

According to this report, we all enhanced a lot abilities, especially can confidently grasp

skills in stock market by knowing the trend performances on it, and also measure firms' stock

by using various of models. Although we struggled for this assignments for several days, we

had a discussion for several times as long as someone had difficulties or confusion in any

part, sorting out together and got along well with each other in harmony. It's worthy that we

spent time together and were able to hold and accomplish the report smoothly.

23

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presscenter.rclcorporate.com/press-release/42/royal-caribbean-reports-record-third-

quarter-earnings-and-updates-full-year-guidance/ (09 December 2021)

Royal Caribbean Group Press Center. (No date)Royal Caribbean Cruises Named One Of The

2019 World's Most Ethical Companies® By Ethisphere For the Fourth Consecutive

Year. Available at: https://presscenter.rclcorporate.com/press-release/26/royal-

caribbean-cruises-named-one-of-the-2019-worlds-most-ethical-companiesreg-by-

ethisphere-for-the-fourth-consecutive-year/ (09 December 2021)

Statista. 2021. Topic: Cruise industry worldwide. [online] Available at: <https://

www.statista.com/topics/1004/cruise-industry/#dossierKeyfigures> [Accessed 10

December 2021].

Yahoo Finance. (2021) Yahoo Finance CCL. [online] Available at: <https://

finance.yahoo.com/quote/RCL/profile?p=RCL> (29 November 2021).

Yahoo Finance. (2021) Yahoo Finance RCL. [online] Available at: <https://

finance.yahoo.com/quote/RCL/profile?p=RCL> (29 November 2021).

Yeginsu, C. and Chokshi, N., 2021. The Cruise Industry Stages a Comeback. [online]

Nytimes.com. Available at: <https://www.nytimes.com/2021/07/28/travel/cruise-

industry-comeback.html>.

26

Appendix

1. Revenue Multiple

1.1 CCL

1.2 RCL

2. DDM

2.1 CCL DDM

Maket cap 2240600000 Marker price 19.25 Outsranding share= 116394805.2 total revenue 654,000,000.00 price of sales 3.425993884 industry price to sales 5.54 market cap = 3623160000 Fair value = 31.12819334

maket cap 19004000000 marker price 74.73 Outstanding share= 254302154.4 total revenue 584,024,000 price of sales 32.53975864 industry price to sales 5.54 market cap = 3235492960 fair value = 12.72302615

CCL CAPM CAPM (Capital Asset Pricing Model) R = Rrf+Beta (Rm-Rrf) Rrf = 1.43% (Source )

Rm = 9.80% (Source )

CCL's beta = 2.14 (Source )

R = 1.43%+2.14*(9.8%-1.43%) = 19.34%

year Dividend of each year

2007 1.375 2008 1.6 2009 0 2010 0.4 2011 1 2012 1.5 2013 1

27

3. RCL DDM

2014 1 2015 1.1 2016 1.35 2017 1.6 2018 1.95 2019 2 2020 0.5

Slope = 0.04291209 intercept= -85.233846 For get the fair value: P0= D1/(r-g) fro 2022 1.5343956 (D1)

for 2023 1.57730769 2.80% for 2024 1.62021978 2.72% for 2025 1.66313187 2.65% for 2026 1.70604396 2.58% R= 19.34% g= 2.69% Fair velue 9.21558922

RCL CAPM CAPM (Capital Asset Pricing Model) R = Rrf+Beta (Rm-Rrf) Rrf = 1.43% Source

Rm = 9.80% Source

RCL's beta = 2.62 Source

R = 1.43%+2.14*(9.8%-1.43%) = 23.36%

year Dividend for each year

2007 0.6 2008 0.45 2009 0 2010 0 2011 0.2 2012 0.44 2013 0.72 2014 1.1 2015 1.35

28

2016 1.71 2017 2.16 2018 2.6 2019 2.96 2020 0.5

Slope = 0.16591209 intercept= -333.00756 For find the fair value: P0= D1/(r-g) For 2022 2.46668132 (D1) For 2023 2.63259341 6.73% For 2024 2.79850549 6.30% For 2025 2.96441758 5.93% For 2026 3.13032967 5.60% R= 23.36%

g=(5ys of future) 6.14%

Fair velue 14.3250132

29

4. RCL’s Income statement

12/30/2017 12/30/2018 12/30/2019 12/30/2020 TTM

Total Revenue 8,777,845 9,493,849 10,950,661 2,208,805 584,024

Cost of Revenue 4,896,579 5,262,207 6,062,765 2,765,108 1,787,268

Gross Profit 3,881,266 4,231,642 4,887,896 -556,303 -1,203,244

Operating Expense 2,137,210 2,336,841 2,805,195 2,478,874 2,400,094

Operating Income 1,744,056 1,894,801 2,082,701 -3,035,177 -3,603,338

Net Non Operating Interest Income

-269,881 -300,872 -381,568 -823,202 -1,262,479

Other Income Expense 150,958 221,863 206,467 -1,916,751 -404,649

Pretax Income 1,625,133 1,815,792 1,907,600 -5,775,130 -5,270,466

Net Income Common Stockholder

1,625,133 1,811,042 1,878,887 -5,797,462 -5,270,466

Diluted NI Available to Common Stockholder

1,625,133 1,811,042 1,878,887 -5,797,462 -5,270,466

Basic EPS 7.57 8.60 8.97 -27.05 0

Diluted EPS 7.53 8.56 8.95 -27.05 0

Basic Average Shares 214,617 210,570 209,405 214,335 0

Diluted Average Shares 215,694 211,554 209,930 214,335 0

Total Operating Income as Reported

1,744,056 1,894,801 2,082,701 -4,601,557 -3,855,138

Total Expenses 7,033,789 7,599,048 8,867,960 5,243,982 4,187,362

Interest Income 30,101 32,800 26,945 21,036 18,596

Interest Expense 299,982 333,672 408,513 844,238 1,281,075

Net Interest Income -269,881 -300,872 -381,568 -823,202 -1,262,479

Net Income from Continuing & Distributing

1,625,133 1,811,042 1,878,887 -5,797,462 -5,270,466

Normalized Income 1,531,385 1,657,190 1,710,272 -4,017,796 -4,808,594

EBIT 1,925,115 2,149,464 2,316,113 -4,930,892 -3,989,391

EBITDA 0 0 0 0 -2,711,851

Reconciled Cost of Revenue 4,896,579 5,262,207 6,062,765 2,765,108 1,787,268

Reconciled Depreciation 951,194 1,033,697 1,245,945 1,279,254 1,277,540

Net Income from Continuing Operations

1,625,133 1,811,042 1,878,887 -5,797,462 -5,270,466

30

5. RCL’s Vertical Analysis

Total Unusual Items Excluding Goods

156,247 210,756 230,980 -1,779,666 -461,872

Total Unusual Items 156,247 210,756 230,980 -1,779,666 -461,872

Normalized EBITDA 2,720,062 2,972,405 3,331,075 -1,871,972 -2,249,979

Tax Rate for Calcs 0 0 0 0 0

Tax Effect of Unusual Items 62,499 56,904 62,365 0 0

12/30/2017 12/30/2018 12/30/2019 12/30/2020 TTM

Total Revenue 100.00% 100.00% 100.00% 100.00% 100.00%

Cost of Revenue 55.78% 55.43% 55.36% 125.19% 306.03%

Gross Profit 44.22% 44.57% 44.64% -25.19% -206.03%

Operating Expense 24.35% 24.61% 25.62% 112.23% 410.96%

Operating Income 19.87% 19.96% 19.02% -137.41% -616.98%

Net Non Operating Interest Income

-3.07% -3.17% -3.48% -37.27% -216.17%

Other Income Expense 1.72% 2.34% 1.89% -86.78% -69.29%

Pretax Income 18.51% 19.13% 17.42% -261.46% -902.44%

Net Income Common Stockholder

18.51% 19.08% 17.16% -262.47% -902.44%

Diluted NI Available to Common Stockholder

18.51% 19.08% 17.16% -262.47% -902.44%

Basic EPS 0.00% 0.00% 0.00% 0.00% 0.00%

Diluted EPS 0.00% 0.00% 0.00% 0.00% 0.00%

Basic Average Shares 2.44% 2.22% 1.91% 9.70% 0.00%

Diluted Average Shares 2.46% 2.23% 1.92% 9.70% 0.00%

Total Operating Income as Reported

19.87% 19.96% 19.02% -208.33% -660.10%

Total Expenses 80.13% 80.04% 80.98% 237.41% 716.98%

Interest Income 0.34% 0.35% 0.25% 0.95% 3.18%

Interest Expense 3.42% 3.51% 3.73% 38.22% 219.35%

Net Interest Income -3.07% -3.17% -3.48% -37.27% -216.17%

31

6. RCL’s Horizontal Analysis

Net Income from Continuing & Distributing

18.51% 19.08% 17.16% -262.47% -902.44%

Normalized Income 17.45% 17.46% 15.62% -181.90% -823.36%

EBIT 21.93% 22.64% 21.15% -223.24% -683.09%

EBITDA 0.00% 0.00% 0.00% 0.00% -464.34%

Reconciled Cost of Revenue

55.78% 55.43% 55.36% 125.19% 306.03%

Reconciled Depreciation 10.84% 10.89% 11.38% 57.92% 218.75%

Net Income from Continuing Operations

18.51% 19.08% 17.16% -262.47% -902.44%

Total Unusual Items Excluding Goods

1.78% 2.22% 2.11% -80.57% -79.08%

Total Unusual Items 1.78% 2.22% 2.11% -80.57% -79.08%

Normalized EBITDA 30.99% 31.31% 30.42% -84.75% -385.25%

Tax Rate for Calcs 0.00% 0.00% 0.00% 0.00% 0.00%

Tax Effect of Unusual Items 0.71% 0.60% 0.57% 0.00% 0.00%

HORIZONTAL ANALYSIS

12/30/2017 12/30/2018 12/30/2019 12/30/2020 TTM

Total Revenue 8% 15% -80% -74%

Cost of Revenue 7% 15% -54% -35%

Gross Profit 9% 16% -111% 116%

Operating Expense 9% 20% -12% -3%

Operating Income 9% 10% -246% 19%

Net Non Operating Interest Income

11% 27% 116% 53%

Other Income Expense 47% -7% -1028% -79%

Pretax Income 12% 5% -403% -9%

Net Income Common Stockholder

11% 4% -409% -9%

Diluted NI Available to Common Stockholder

11% 4% -409% -9%

Basic EPS 14% 4% -402% N/A

32

7. RCL’s Balance Sheet

Diluted EPS 14% 5% -402% N/A

Basic Average Shares -2% -1% 2% N/A

Diluted Average Shares -2% -1% 2% N/A

Total Operating Income as Reported

9% 10% -321% -16%

Total Expenses 8% 17% -41% -20%

Interest Income 9% -18% -22% -12%

Interest Expense 11% 22% 107% 52%

Net Interest Income 11% 27% 116% 53%

Net Income from Continuing & Distributing

11% 4% -409% -9%

Normalized Income 8% 3% -335% 20%

EBIT 12% 8% -313% -19%

EBITDA N/A N/A N/A N/A

Reconciled Cost of Revenue

7% 15% -54% -35%

Reconciled Depreciation 9% 21% 3% 0%

Net Income from Continuing Operations

11% 4% -409% -9%

Total Unusual Items Excluding Goods

35% 10% -870% -74%

Total Unusual Items 35% 10% -870% -74%

Normalized EBITDA 9% 12% -156% 20%

Tax Rate for Calcs N/A N/A N/A N/A

Tax Effect of Unusual Items -9% 10% N/A N/A

BALANCE SHEET

12/30/2017 12/30/2018 12/30/2019 12/30/2020 9/29/2021 (Q3 2021)

Total Assets 22,296,317 27,698,270 30,320,284 32,465,187 32,665,566

Current Assets 843,028 1,242,044 1,162,628 4,311,747 4,167,381

Non-current Assets 21,453,289 26,456,226 29,157,656 28,153,440 28,498,185

Total Liabilities Net Minority Interest

11,594,014 16,592,809 18,156,438 23,704,518 26,198,068

33

8. RCL’s Vertical analysis

Current Liabilities 4,790,264 7,112,165 7,952,896 4,537,121 5,242,920

Total Non- Current Liabilities

6,803,750 9,480,644 10,203,542 19,167,397 20,955,148

Total Equity Gross Minority Interest

10,702,303 11,105,461 12,163,846 8,760,669 6,467,498

Total Capitalization 17,053,240 19,460,831 20,577,956 26,718,625 26,350,258

Common Stock Equity 10,702,303 11,105,461 12,163,846 8,760,669 6,467,498

Capital Lease Obligations - - 698,617 666,553 620,440

Net Tangible Assets 10,413,791 9,727,108 10,289,627 7,506,335 5,658,125

Working Capital -3,947,236 -5,870,121 -6,790,268 -225,374 -1,075,539

Invested Capital 18,241,754 21,883,160 23,198,722 28,089,712 27,307,001

Tangible Book Value 10,413,791 9,727,108 10,289,627 7,506,335 5,658,125

Total Debt 7,539,451 10,777,699 11,733,493 19,995,596 21,459,943

Net Debt 7,419,339 10,489,847 10,791,138 15,644,569 17,550,177

Share Issued 235,199 235,848 236,548 265,198 282,672

Ordinary Shares Number 213,338 209,017 208,801 237,399 254,789

Treasury Shares Number 21,861 26,831 27,747 27,800 27,883

VERTICAL ANALYSIS

12/30/2017 12/30/2018 12/30/2019 12/30/2020 9/29/2021 (Q3 2021)

Total Assets 100.00% 100.00% 100.00% 100.00% 100.00%

Current Assets 3.78% 4.48% 3.83% 13.28% 12.76%

Non-current Assets 96.22% 95.52% 96.17% 86.72% 87.24%

Total Liabilities Net Minority Interest

52.00% 59.91% 59.88% 73.02% 80.20%

Current Liabilities 21.48% 25.68% 26.23% 13.98% 16.05%

Total Non- Current Liabilities

30.52% 34.23% 33.65% 59.04% 64.15%

Total Equity Gross Minority Interest

48.00% 40.09% 40.12% 26.98% 19.80%

Total Capitalization 76.48% 70.26% 67.87% 82.30% 80.67%

Common Stock Equity 48.00% 40.09% 40.12% 26.98% 19.80%

34

9. RCL’s Horizontal Analysis

Capital Lease Obligations N/A N/A 2.30% 2.05% 1.90%

Net Tangible Assets 46.71% 35.12% 33.94% 23.12% 17.32%

Working Capital -17.70% -21.19% -22.40% -0.69% -3.29%

Invested Capital 81.82% 79.01% 76.51% 86.52% 83.60%

Tangible Book Value 46.71% 35.12% 33.94% 23.12% 17.32%

Total Debt 33.81% 38.91% 38.70% 61.59% 65.70%

Net Debt 33.28% 37.87% 35.59% 48.19% 53.73%

Share Issued 1.05% 0.85% 0.78% 0.82% 0.87%

Ordinary Shares Number 0.96% 0.75% 0.69% 0.73% 0.78%

Treasury Shares Number 0.10% 0.10% 0.09% 0.09% 0.09%

HORIZONTAL ANALYSIS

12/30/2017 12/30/2018 12/30/2019 12/30/2020 9/29/2021 (Q3 2021)

Total Assets 24.23% 9.47% 7.07% 0.62%

Current Assets 47.33% -6.39% 270.86% -3.35%

Non-current Assets 23.32% 10.21% -3.44% 1.22%

Total Liabilities Net Minority Interest

43.12% 9.42% 30.56% 10.52%

Current Liabilities 48.47% 11.82% -42.95% 15.56%

Total Non- Current Liabilities

39.34% 7.62% 87.85% 9.33%

Total Equity Gross Minority Interest

3.77% 9.53% -27.98% -26.18%

Total Capitalization 14.12% 5.74% 29.84% -1.38%

Common Stock Equity 3.77% 9.53% -27.98% -26.18%

Capital Lease Obligations N/A N/A -4.59% -6.92%

Net Tangible Assets -6.59% 5.78% -27.05% -24.62%

Working Capital 48.71% 15.68% -96.68% 377.22%

Invested Capital 19.96% 6.01% 21.08% -2.79%

Tangible Book Value -6.59% 5.78% -27.05% -24.62%

Total Debt 42.95% 8.87% 70.41% 7.32%

35

10. RCL’s Cash Flow

11. RCL’s Trend Analysis

Net Debt 41.39% 2.87% 44.98% 12.18%

Share Issued 0.28% 0.30% 12.11% 6.59%

Ordinary Shares Number -2.03% -0.10% 13.70% 7.33%

Treasury Shares Number 22.73% 3.41% 0.19% 0.30%

CASH FLOW

12/30/2017 12/30/2018 12/30/2019 12/30/2020 9/29/2021 (Q3 2021)

Operating Cash Flow 2,874,566 3,479,139 3,716,366 -3,731,653 -2,498,167

Investing Cash Flow -213,592 -4,489,158 -3,091,406 -2,178,566 -1,950,107

Financing Cash Flow -2,675,796 1,198,073 -670,371 9,349,788 4,718,585

End Cash Position 120,112 287,852 243,738 3,684,474 3,287,099

Interest Paid Supplemental Data

249,615 252,466 246,312 418,164 790,841

Capital Expenditure -564,138 -3,660,028 -3,024,663 -1,965,131 -2,046,161

Issuance of Capital Stock - - - 1,431,375 3,053,235

Issuance of Debt 5,866,966 13,321,026 29,766,104 20,313,005 5,019,077

Repayment of Debt -7,835,087 -10,928,961 -29,673,355 -11,682,768 -3,177,340

Repurchase of Capital Stock -224,998 -575,039 -99,582 0 -

Free Cash Flow 2,310,428 -180,889 691,703 -5,696,784 -4,544,328

Net Cash Flow (Nasdaq, 2021) -12,491 167,740 -44,114 3,440,736 -961,043

TREND ANALYSIS

11/29/2017 11/29/2018 11/29/2019 11/29/2020 TTM

Operating Cash Flow 100% 121% 129% -130% -87%

Investing Cash Flow 100% 2102% 1447% 1020% 913%

Financing Cash Flow 100% -45% 25% -349% -176%

End Cash Position 100% 240% 203% 3068% 2737%

Interest Paid Supplemental Data

100% 101% 99% 168% 317%

36

12. RCL’s Horizontal Analysis

Capital Expenditure 100% 649% 536% 348% 363%

Issuance of Capital Stock - - - - -

Issuance of Debt 100% 227% 507% 346% 86%

Repayment of Debt 100% 139% 379% 149% 41%

Repurchase of Capital Stock 100% 256% 44% 0% -

Free Cash Flow 100% -8% 30% -247% -197%

Net Cash Flow (Nasdaq, 2021) 100% -1343% 353% -27546% 7694%

HORIZONTAL ANALYSIS

11/29/2017 11/29/2018 11/29/2019 11/29/2020 TTM

Operating Cash Flow 21.03% 6.82% -200.41% -33.05%

Investing Cash Flow 2001.74% -31.14% -29.53% -10.49%

Financing Cash Flow -144.77% -155.95% -1494.72% -49.53%

End Cash Position 139.65% -15.33% 1411.65% -10.79%

Interest Paid Supplemental Data

1.14% -2.44% 69.77% 89.12%

Capital Expenditure 548.78% -17.36% -35.03% 4.12%

Issuance of Capital Stock N/A N/A N/A 113.31%

Issuance of Debt 127.05% 123.45% -31.76% -75.29%

Repayment of Debt 39.49% 171.51% -60.63% -72.80%

Repurchase of Capital Stock 155.58% -82.68% -100.00% N/A

Free Cash Flow -107.83% -482.39% -923.59% -20.23%

Net Cash Flow (Nasdaq, 2021) -1442.89% -126.30% -7899.65% -127.93%

37

13.CCL’s Income Statement

14. CCL’s Vertical Analysis

INCOME STATEMENT

(in thousand)

11/30/2017 11/30/2018 11/30/2019 11/30/2020 8/31/2021 (Q3)

Total Revenue 17,510,000 18,881,000 20,825,000 5,595,000 546,000

Cost of Revenue 10,501,000 11,089,000 12,909,000 8,245,000 1,616,000

Gross Profit 7,009,000 7,792,000 7,916,000 -2,650,000 -1,070,000

Operating Expenses

Sales, General, and Admin 2,265,000 2,450,000 2,480,000 1,878,000 426,000

Non-Recurring Items 89,000 0 0 2,096,000

Other Operating Items 1,846,000 2,017,000 2,160,000 2,241,000 562,000

Operating Income 2,809,000 3,325,000 3,276,000 -8,865,000 -2,057,000

Add'l income/ expense items 55,000 76,000 -9,000 -493,000 -385,000

EBIT 2,864,000 3,401,000 3,266,000 -9,358,000 -2,441,000

Interest Expense 198,000 194,000 206,000 895,000 418,000

Eearnings Before Tax 2,666,000 3,207,000 3,060,000 -10,253,000 -2,859,000

Income Tax 60,000 54,000 71,000 -17,000 -23,000

Minority Interest

Equity Earnings / Loss Unconsolidated Subsidiary

Net Income Continuous Operations

2,606,000 3,153,000 2,989,000 -10,236,000 -2,836,000

Net Income 2,606,000 3,152,000 2,990,000 -10,236,000 -2,836,000

Net Income Applicable to Common Shareholders

2,606,000 3,152,000 2,990,000 -10,236,000 -2,836,000

VERTICAL ANALYSIS

11/30/2017 11/30/2018 11/30/2019 11/30/2020 8/31/2021 (Q3)

Total Revenue 100.00% 100.00% 100.00% 100.00% 100.00%

38

15. CCL’s Horizontal Analysis

Cost of Revenue 59.97% 58.73% 61.99% 147.36% 295.97%

Gross Profit 40.03% 41.27% 38.01% -47.36% -195.97%

Operating Expenses Sales, General, and Admin 12.94% 12.98% 11.91% 33.57% 78.02%

Non-Recurring Items 0.51% 0.00% 0.00% 37.46% 0.00%

Other Operating Items 10.54% 10.68% 10.37% 40.05% 102.93%

Operating Income 16.04% 17.61% 15.73% -158.45% -376.74%

Add'l income/ expense items 0.31% 0.40% -0.04% -8.81% -70.51%

EBIT 16.36% 18.01% 15.68% -167.26% -447.07%

Interest Expense 1.13% 1.03% 0.99% 16.00% 76.56%

Eearnings Before Tax 15.23% 16.99% 14.69% -183.25% -523.63%

Income Tax 0.34% 0.29% 0.34% -0.30% -4.21%

Minority Interest - - - - -

Equity Earnings / Loss Unconsolidated Subsidiary

- - - - -

Net Income Continuous Operations

14.88% 16.70% 14.35% -182.95% -519.41%

Net Income 14.88% 16.69% 14.36% -182.95% -519.41%

Net Income Applicable to Common Shareholders

14.88% 16.69% 14.36% -182.95% -519.41%

HORIZONTAL ANALYSIS

11/30/2017 11/30/2018 11/30/2019 11/30/2020 8/31/2021 (Q3)

Total Revenue 7.83% 10.30% -73.13% -90.24%

Cost of Revenue 5.60% 16.41% -36.13% -80.40%

Gross Profit 11.17% 1.59% -133.48% -59.62%

Operating Expenses Sales, General, and Admin 8.17% 1.22% -24.27% -77.32%

Non-Recurring Items -100.00% - - -100.00%

Other Operating Items 9.26% 7.09% 3.75% -74.92%

Operating Income 18.37% -1.47% -370.60% -76.80%

Add'l income/ expense items 38.18% -111.84% 5377.78% -21.91%

39

16. CCL’s Balance Sheet

EBIT 18.75% -3.97% -386.53% -73.92%

Interest Expense -2.02% 6.19% 334.47% -53.30%

Eearnings Before Tax 20.29% -4.58% -435.07% -72.12%

Income Tax -10.00% 31.48% -123.94% 35.29%

Minority Interest - - - -

Equity Earnings / Loss Unconsolidated Subsidiary

- - - -

Net Income Continuous Operations

20.99% -5.20% -442.46% -72.29%

Net Income 20.95% -5.14% -442.34% -72.29%

Net Income Applicable to Common Shareholders

20.95% -5.14% -442.34% -72.29%

BALANCE SHEET (in thousand)

11/30/2017 11/30/2018 11/30/2019 11/30/2020 8/31/2021 (Q3)

Total Assets 40,778,000 42,401,000 45,058,000 53,593,000 53,514,000

Total Liabilities 16,562,000 17,957,000 19,692,000 33,038,000 38,652,000

Total Equity 24,216,000 24,443,000 25,365,000 20,555,000 14,863,000

Total Current Asset 1,596,000 2,225,000 2,059,000 10,563,000 8,909,000

Fixed Assets 34,430,000 35,336,000 38,131,000 39,443,000 40,283,000

Goodwill, Intangible, & Other Assets

4,752,000 4,839,000 4,869,000 3,587,000 4,323,000

Total Current Liabilities 8,800,000 9,204,000 9,127,000 8,686,000 9,491,000

Long-Term Debt 6,993,000 7,897,000 9,675,000 22,130,000 26,831,000

Other Liabilities 769,000 856,000 890,000 2,222,000 2,330,000

Common Stocks 365,000 365,000 365,000 372,000 372,000

Capital Suplus 23,292,000 25,066,000 26,653,000 16,075,000 9,194,000

Retained Earnings -6,349,000 -7,795,000 -8,394,000 -8,404,000 -8,500,000

Treasury Stock 8,690,000 8,756,000 8,807,000 13,948,000 15,146,000

Other Equity -1,782,000 -1,949,000 -2,066,000 -1,436,000 -1,349,000

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17. CCL’s Vertical Analysis

18. Horizontal Analysis

VERTICAL ANALYSIS (in thousand)

11/30/2017 11/30/2018 11/30/2019 11/30/2020 8/31/2021 (Q3)

Total Assets 100.00% 100.00% 100.00% 100.00% 100.00%

Total Liabilities 40.62% 42.35% 43.70% 61.65% 72.23%

Total Equity 59.38% 57.65% 56.29% 38.35% 27.77%

Total Current Asset 3.91% 5.25% 4.57% 19.71% 16.65%

Fixed Assets 84.43% 83.34% 84.63% 73.60% 75.28%

Goodwill, Intangible, & Other Assets

11.65% 11.41% 10.81% 6.69% 8.08%

Total Current Liabilities 21.58% 21.71% 20.26% 16.21% 17.74%

Long-Term Debt 17.15% 18.62% 21.47% 41.29% 50.14%

Other Liabilities 1.89% 2.02% 1.98% 4.15% 4.35%

Common Stocks 0.90% 0.86% 0.81% 0.69% 0.70%

Capital Suplus 57.12% 59.12% 59.15% 29.99% 17.18%

Retained Earnings -15.57% -18.38% -18.63% -15.68% -15.88%

Treasury Stock 21.31% 20.65% 19.55% 26.03% 28.30%

Other Equity -4.37% -4.60% -4.59% -2.68% -2.52%

HORIZONTAL ANALYSIS (in thousand)

11/30/2017 11/30/2018 11/30/2019 11/30/2020 8/31/2021 (Q3)

Total Assets 3.98% 6.27% 18.94% -0.15%

Total Liabilities 8.42% 9.66% 67.77% 16.99%

Total Equity 0.94% 3.77% -18.96% -27.69%

Total Current Asset 39.41% -7.46% 413.02% -15.66%

Fixed Assets 2.63% 7.91% 3.44% 2.13%

Goodwill, Intangible, & Other Assets

1.83% 0.62% -26.33% 20.52%

Total Current Liabilities 4.59% -0.84% -4.83% 9.27%

Long-Term Debt 12.93% 22.51% 128.73% 21.24%

Other Liabilities 11.31% 3.97% 149.66% 4.86%

Common Stocks 0.00% 0.00% 1.92% 0.00%

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19. CCL’s Cash Flow

20. CCL’s Trend Analysis

21. CCL’s Horizontal Analysis

Capital Suplus 7.62% 6.33% -39.69% -42.81%

Retained Earnings 22.78% 7.68% 0.12% 1.14%

Treasury Stock 0.76% 0.58% 58.37% 8.59%

Other Equity 9.37% 6.00% -30.49% -6.06%

CASH FLOW (in thousand)

11/30/2017 11/30/2018 11/30/2019 11/30/2020 8/31/2021 (Q3)

Net Cash-Flow Operating 5,322,000 5,549,000 5,475,000 -6,301,000 -879,000

Net Cash Flows-Investing -3,122,000 -3,514,000 -5,277,000 -3,240,000 620,000

Net Cash Flows- Financing

-2,452,000 -1,460,000 -655,000 18,650,000 376,000

Net Cash Flow -241,000 574,000 -465,000 9,161,000 111,000

TREND ANALYSIS (in thousand)

11/30/2017 11/30/2018 11/30/2019 11/30/2020 8/31/2021 (Q3)

Net Cash-Flow Operating 100.00% 104.27% 102.87% -118.40% -16.52%

Net Cash Flows-Investing 100.00% 112.56% 169.03% 103.78% -19.86%

Net Cash Flows- Financing

100.00% 59.54% 26.71% -760.60% -15.33%

Net Cash Flow 100.00% -238.17% 192.95% -3801.24% -46.06%

HORIZONTAL ANALYSIS (in thousand)

11/30/2017 11/30/2018 11/30/2019 11/30/2020 8/31/2021 (Q3)

Net Cash-Flow Operating 4.27% -1.33% -215.09% -86.05%

Net Cash Flows-Investing 12.56% 50.17% -38.60% -119.14%

Net Cash Flows- Financing

-40.46% -55.14% -2947.33% -97.98%

Net Cash Flow -338.17% -181.01% -2070.11% -98.79%

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