Herce Case
Lesia
Spreadsheet_Hershey_Foods_F1409X3.xlsxExhibit 5
| Boards of Directors for Hershey Trust and Hershey Foods Corporation (1990) | |||||
| 1990 Hershey Trust Board of Directors | 1990 Hershey Foods Board of Directors | ||||
| Kenneth V. Hatt | Chairman of the Board of Hershey Trust Co. & Milton Hershey School Board of Managers | Richard. A. Zimmerman | Chairman and CEO Hershey Foods Corporation | ||
| Richard. A. Zimmerman | Chairman and CEO of Hershey Foods Corporation | Kenneth V. Hatt | Chairman of the Board Hershey Trust Company | ||
| Kenneth L Wolfe | President and Chief Operating Oficer Hershey Foods Corporation | Kenneth L. Wolfe | President and Chief Operating Officer Hershey Foods Corporation | ||
| William R. Fisher | President of the Milton Hershey School and board of directors of The Hershey Bank | Howard O. Beaver, Jr. | Retired Chairman of the Board Carpenter Technology Corporation Reading, PA | ||
| Rod J Pera | Managing partner in the Harrisburg law firm of McNees, Wallace & Nurick, counsel to all Hershey entities. | John F. Burlingame | Retired Vice Chairman of the Board and Executive Officer GE Company Stamford, Connecticut | ||
| John F. Rineman | Executive vice president of the Pennsylvania Medical Society | Thomas C. Graham | President USS a division of USX Corporation Pittsburgh, PA | ||
| J. Bruce McKinney | President, CEO and chairman of the board of Hershey Entertainment & Resort Co. (HERCO) | John. C. Jamison | Dean of the Graduate School of Business Administration College of William and Mary, Williamsburg, VA | ||
| William H Alexander | Chairman of H. B. Alexander Construction Company. Director of family business programs at Snider Entrepreneurial Center, Wharton School, University of Pennsylvania. | Dr. Sybil C. Mobley | Dean of the School of Business and Industry Florida Agricultural and Mechanical University Tallahassee, Florida | ||
| Ronald D. Glosser | President of Hershey Trust Co | Francine I. Neff | Vice President and Director NETS Inc. privately held investment management company Albuquerque, NM | ||
| C. McCollister Evarts | Dean, Penn State Milton S. Hershey Medical College | John. M. Pietruski | Retired Chairman of the Board and CEO Sterling Drug Inc. New York, NY | ||
| Juliet C Rowland | President and CEO, Ohio United Way | H. Robert Sharbaugh | Retired Chairman and CEO Sun Company, Radnor, PA | ||
| Joseph P. Viviano | President Hershey Chocolate USA |
Exhibit 6
| Boards of Directors for Hershey Trust and Hershey Foods Corporation (2001) | |||||
| 2001 Hershey Trust Board of Directors | 2001 Hershey Foods Board of Directors | ||||
| Robert C. Vowler | President and CEO, Hershey Trust Company | Richard H. Lenny | Chairman, President and CEO, Hershey Foods Corporation | ||
| J. Robert Hillier, FAIA | Chairman and Founder of Hillier Group (architects) | J. Robert Hillier, FAIA | Chairman and Founder, The Hillier Group (architects) | ||
| A. John Gabig, Esq. | Chairman of MHS Board of Managers | Jon A. Bosia | Chairman and CEO, Lincoln National Corporation | ||
| William L. Lepley | President and CEO of Milton Hershey School | Robert H. Campbell | Chairman and CEO (ret.), Sunoco Inc. | ||
| William H. Alexander | Chairman of H. B. Alexander Construction Company. Director of family business programs at Snider Entrepreneurial Center, Wharton School, University of Pennsylvania. | Gary P. Coughlan | Sr. VP Finance and CFO (ret.), Abbott Laboratories Inc. | ||
| Lucy D. Hackney, Esq. | Former Policy adviser, General Services Admin | Bonnie Hill | President and CEO, The Times Mirror Foundation | ||
| Wendy D. Puriefoy | Public Education Network | John C. Jamison | Chairman, Mallardee Associates | ||
| W. Don Cornwell | Granite Broadcasting Co. | Mackey J. McDonald | Chairman, President and CEO, VF Corporation | ||
| A. Morris Williams, Jr. | President, Williams & Company | John M. Pietruski | Chairman, Texas Biotechnology Corporation | ||
| Michael W. Matier | Institutional Research & Planning, Cornell U. | ||||
| Rev. John S. McDowell, Jr. | St. James the Less Episcopal Church | ||||
| Anthony J. Colistra | Superintendent, Cumberland Valley School Dist. | ||||
| Robert F. Cavanaugh | Managing director, DLJ Real Estate Partners | ||||
| Joan S. Lipsitz, Ph.D. | Independent education consultant | ||||
| Hilary C. Pennington | Co-founder, Jobs for the Future | ||||
| Juliet C. Rowland | President and CEO, Ohio United Way |
Exhibit 8
| Bidding Companies’ Financial Data | |||||
| Hershey | Wrigley | Nestle | Cadbury Schwepes | ||
| Beta | 0.55 | 0.70 | 0.70 | 0.60 | |
| Credit rating | A+ | N/A | AAA | BBB | |
| Stock price 9/17/2002 | 73.8 | 49.5 | 51.9 | 28.5 | |
| Shares outstanding (millions) | 134.2 | 225.0 | 1550.6 | 502.5 | |
| Book value of debt ($ millions) | 884.9 | 0.0 | 19500.0 | 3543.0 | |
| US Treasuries | |||||
| Historical Yield Curve | |||||
| 8/19/02 | 9/17/02 | ||||
| 5 year | 3.38% | 2.90% | |||
| 10 year | 4.28% | 3.82% | |||
| 30 year | 5.05% | 4.73% | |||
| Corporate Bonds1 | |||||
| Hershey | |||||
| Maturity | Price | Yield | |||
| 8/15/12 | 117.71 | 4.691 | |||
| 2/15/21 | 137.07 | 5.557 | |||
| 2/15/27 | 119.37 | 5.730 | |||
| Wrigley | |||||
| No debt | |||||
| Nestle | |||||
| Maturity | Price | Yield | |||
| 6/15/25 | 125.39 | 5.835 | |||
| Cadbury Scweppes* | |||||
| Maturity | Price | Yield | |||
| 12/15/05 | 100.569 | 4.306 | |||
| 1Cadbury Schweppes bonds in British Sterling. All other bonds denominated in US dollars. |
Exhibit 9
| Hershey Foods Corp. Historical Financial Statements | ||||||
| Income Statement | ||||||
| ($ millions) | ||||||
| 1996 | 1997 | 1998 | 1999 | 2000 | 2001 | |
| Sales | $ 3,989.3 | $ 4,302.2 | $ 4,435.6 | $ 3,970.9 | $ 4,221.0 | $ 4,137.2 |
| Cost of sales | 2,302.1 | 2,488.9 | 2,625.1 | 2,354.7 | 2,471.2 | 2,668.5 |
| Gross profit | 1,687.2 | 1,813.3 | 1,810.6 | 1,616.2 | 1,749.8 | 1,468.7 |
| Gross margin | 42.29% | 42.15% | 40.82% | 40.70% | 41.46% | 35.50% |
| Selling, marketing, and administrative | 1,124.1 | 1,183.1 | 1,167.8 | 1,057.8 | 1,127.2 | 1,056.1 |
| Operating income | 563.1 | 630.2 | 642.8 | 558.4 | 622.6 | 412.6 |
| Operating margin | 14.12% | 14.65% | 14.49% | 14.06% | 14.75% | 9.97% |
| Gain (loss) on sale of business | (35.4) | - 0 | - 0 | 243.8 | - 0 | - 0 |
| Earnings before interest and tax | 527.8 | 630.2 | 642.8 | 802.1 | 622.6 | 412.6 |
| Interest expense | 48.0 | 76.3 | 85.7 | 74.3 | 76.0 | 69.1 |
| Pretax income | 479.7 | 554.0 | 557.1 | 727.9 | 546.6 | 343.5 |
| Income taxes | 206.6 | 217.7 | 216.1 | 267.6 | 212.1 | 136.4 |
| Net income | $ 273.2 | $ 336.3 | $ 341.0 | $ 460.3 | $ 334.5 | $ 207.1 |
| Balance Sheet | ||||||
| 1996 | 1997 | 1998 | 1999 | 2000 | 2001 | |
| Cash and cash equivalents | $ 61.4 | $ 54.2 | $ 39.0 | $ 118.1 | $ 32.0 | $ 134.1 |
| Accounts receivable trade | 294.6 | 360.8 | 451.3 | 352.8 | 379.7 | 361.7 |
| Inventories | 475.0 | 505.5 | 493.2 | 602.2 | 605.2 | 512.1 |
| Other current assets | 155.2 | 114.2 | 150.4 | 207.0 | 278.5 | 159.5 |
| Total current assets | 986.2 | 1,034.8 | 1,134.0 | 1,280.0 | 1,295.3 | 1,167.5 |
| Property, plant, and equipment, net | 1,601.9 | 1,648.2 | 1,648.1 | 1,510.5 | 1,585.4 | 1,534.9 |
| Goodwill | 566.0 | 551.8 | 530.5 | 450.2 | 474.4 | 388.7 |
| Other tangible assets | 30.7 | 56.3 | 91.6 | 106.0 | 92.6 | 156.3 |
| Total assets | $ 3,184.8 | $ 3,291.2 | $ 3,404.1 | $ 3,346.7 | $ 3,447.8 | $ 3,247.4 |
| Accounts payable | $ 134.2 | $ 146.9 | $ 156.9 | $ 136.6 | $ 149.2 | $ 133.0 |
| Accrued liabilities | 368.1 | 391.2 | 311.9 | 364.7 | 359.5 | 465.5 |
| Short-term debt | 315.0 | 257.5 | 346.0 | 211.6 | 258.1 | 7.9 |
| Total current liabilities | 817.3 | 795.7 | 814.8 | 712.8 | 766.9 | 606.4 |
| Long-term debt | 655.3 | 1,029.1 | 879.1 | 878.2 | 877.7 | 877.0 |
| Other long-term liabilities | 327.2 | 346.5 | 346.8 | 330.9 | 327.7 | 361.0 |
| Deferred income taxes | 224.0 | 267.1 | 321.1 | 326.0 | 300.5 | 255.8 |
| Total liabilities | 2,023.8 | 2,438.4 | 2,361.8 | 2,248.0 | 2,272.7 | 2,100.2 |
| Stockholders' equity | 1,161.0 | 852.8 | 1,042.3 | 1,098.6 | 1,175.0 | 1,147.2 |
| Total liabilities and equity | $ 3,184.8 | $ 3,291.2 | $ 3,404.1 | $ 3,346.7 | $ 3,447.8 | $ 3,247.4 |
Exhibit 10
| Hershey Foods Corp. Forecasted Financial Statements as a Standalone | |||||||||||||
| ($ millions) | |||||||||||||
| Income Statement | 2002 | 2003 | 2004 | 2005 | 2006 | 2007 | 2008 | 2009 | 2010 | 2011 | |||
| Sales | 4137.2 | $4,343.9 | $4,561.0 | $4,789.1 | $5,028.5 | $5,280.0 | $5,544.0 | $5,821.2 | $6,112.2 | $6,417.8 | $6,738.7 | ||
| Cost of sales | $2,541.2 | $2,622.6 | $2,705.8 | $2,841.1 | $2,983.2 | $3,132.3 | $3,289.0 | $3,453.4 | $3,626.1 | $3,807.4 | |||
| Selling, general, & administrative | $1,164.2 | $1,222.4 | $1,283.5 | $1,347.7 | $1,415.0 | $1,485.8 | $1,560.1 | $1,638.1 | $1,720.0 | $1,806.0 | |||
| Operating income (EBIT) | $638.5 | $716.1 | $799.8 | $839.8 | $881.8 | $925.8 | $972.1 | $1,020.7 | $1,071.8 | $1,125.4 | |||
| Taxes | $252.2 | $282.9 | $315.9 | $331.7 | $348.3 | $365.7 | $384.0 | $403.2 | $423.4 | $444.5 | |||
| Net operating profit after tax (NOPAT) | $386.3 | $433.2 | $483.9 | $508.1 | $533.5 | $560.1 | $588.1 | $617.5 | $648.4 | $680.8 | |||
| Sales Growth | 5.0% | 5.0% | 5.0% | 5.0% | 5.0% | 5.0% | 5.0% | 5.0% | 5.0% | 5.0% | |||
| EBIT/Sales | 14.7% | 15.7% | 16.7% | 16.7% | 16.7% | 16.7% | 16.7% | 16.7% | 16.7% | 16.7% | |||
| Balance Sheet | |||||||||||||
| Total current assets | $1,194.6 | $1,254.3 | $1,317.0 | $1,382.9 | $1,452.0 | $1,524.6 | $1,600.8 | $1,680.9 | $1,764.9 | $1,853.2 | |||
| Goodwill | $388.7 | $388.7 | $388.7 | $388.7 | $388.7 | $388.7 | $388.7 | $388.7 | $388.7 | $388.7 | |||
| Net property, plant, equipment and other | $1,737.5 | $1,824.4 | $1,915.6 | $2,011.4 | $2,112.0 | $2,217.6 | $2,328.5 | $2,444.9 | $2,567.1 | $2,695.5 | |||
| Non-interest bearing current liabilities | $543.0 | $570.1 | $598.6 | $628.6 | $660.0 | $693.0 | $727.6 | $764.0 | $802.2 | $842.3 | |||
| Curr assets/Sales | 27.5% | 27.5% | 27.5% | 27.5% | 27.5% | 27.5% | 27.5% | 27.5% | 27.5% | 27.5% | |||
| NIBCL/Sales | 12.5% | 12.5% | 12.5% | 12.5% | 12.5% | 12.5% | 12.5% | 12.5% | 12.5% | 12.5% | |||
| NPPE, other/Sales | 40.0% | 40.0% | 40.0% | 40.0% | 40.0% | 40.0% | 40.0% | 40.0% | 40.0% | 40.0% | |||
Exhibit 11
| Hershey Foods Corp. Industry Comparables | ||||||||||
| Company Name | Ticker | Exchange | Book Value of debt ($million) | Common Shares Outstanding (millions) | Stock Price (9/17/02) | Market Cap ($million) | Debt/ Equity | EBIT ($million) | Enterprise Value/EBIT Multiple | |
| Cadbury Schweppes PLC -ADS | CSG | NYSE | 3,543 | 503 | 28.5 | 14,296 | 0.25 | 1,501 | 11.9 | |
| Hershey Foods Corp | HSY | NYSE | 885 | 134 | 73.8 | 9,905 | 0.09 | 413 | 26.1 | |
| Jm Smucker Co | SJM | NYSE | 150 | 50 | 37.6 | 1,862 | 0.08 | 59 | 33.9 | |
| Nestle S A -Spon ADR | NSRGY.PK | OTC | 19,500 | 1,551 | 51.9 | 80,399 | 0.24 | 3,007 | 33.2 | |
| Sanfilippo John B & Son | JBSS | NSDQ | 52 | 9 | 6.7 | 61 | 0.85 | 18 | 6.1 | |
| Sherwood Brands Inc | SHD | AMEX | 1 | 4 | 4.5 | 17 | 0.07 | 1 | 17.2 | |
| Tootsie Roll Industries Inc | TR | NYSE | 8 | 52 | 31.0 | 1,610 | 0.00 | 101 | 16.1 | |
| Wrigley (Wm) Jr Co | WWY | NYSE | 0 | 225 | 49.5 | 11,135 | 0.00 | 583 | 19.1 | |
