CASHFLOW 2020-2024 in LOCAL CURRENCY- LKR

2020 2021 2022 2023

Operating Activities LKR Mn LKR Mn LKR Mn LKR Mn
Trading Result excl RDI/OTI 9,012 7,893 9,200 10,179
Restructuring 405 167 165 165
Add back Dep 1,196 1,522 1,470 1,588
Add back Business Group (Retails,Tea & UFS) 2,219 2,264 2,264
Add back SC Provision /Impairment 334 641 231 249
Royalty (FCCR) (2,980) (187) -
ICC cost (230) (278) (278) (300)
Tax (1,470) (1,410) (4,976) (3,276)
Gratuity Paid (255) (246) (313) (338)
FA write off (non BCP) 7 27 11 12
Interest Income 160 180 187 195

Total 8,397 10,574 7,793 7,459

Working Capital Movement
Movement in Stocks (716) (3,872) (1,518) (1,609)
Movement in debtors (377) (297) (541) (584)
Movement in creditors 341 2,452 450
Movement in WC (751) (1,717) (2,059) (1,743)

URB Addback 60 60 61 61
Financial Debtors 18 4 3 3
Concern debtors 3,291 2,819 3,045 3,288
Cost on Firm of Future (585)
Net cash from OA 11,015 11,740 8,843 9,068

Investing Activities
Normal Capex (Consider with BCP capex) (591) (1,063) (2,820) (1,185)
OTI (49) (57) (13) (13)
Net cash from IA (640) (1,120) (2,833) (1,198)

Financing Activities
Dividends (4,697) - -
Loan Repayment
Loan Received 11,120 11,120
Interest Cost- UFI (168) (1,014)
Net cash from FA (4,697) - 11,120 11,120

Increase/Decrease 6,318 11,740 19,963 20,188

Movement in cash and cash equivalent
At start of the year 1,510 7,828 19,568 36,751
Increase/Decrease 6,318 11,740 19,963 20,188
At the end of the year 7,828 19,568 36,751 57,244
19,568 36,751 57,244
 Reporting rate
CASHFLOW 2020-2024 in USD 300 300 300 350
2020 2021 2022 2023
Operating Activities EUR Mn EUR Mn EUR Mn EUR Mn
Trading Result excl RDI/OTI 30 26 31 29
Restructuring 1 1 1 0
Add back Dep 4 5 5 5
Add back Business Group (Retails & UFS) 7 8 8 -
Add back SC Provision /Impairment 1 2 1 1
Royalty (FCCR) (10) (1) - -
ICC cost (1) (1) (1) (1)
Tax (5) (5) (17) (9)
Gratuity Paid (1) (1) (1) (1)
FA write off (non BCP) 0 0 0 0
Interest Income 1 1 1 1
Total 27.99 35.25 26.54 24.21
Working Capital Movement - - - -
Movement in Stocks (2) (13) (5) (5)
Movement in debtors (1) (1) (2) (2)
Movement in creditors 1 8 - 1
Movement in WC (3) (6) (7) (5)
- - - -
URB Addback 0 0 0 0
Financial Debtors 0 0 0 0
Concern debtors 11 12 10 9
Cost on Firm of Future - (2) - -
Net cash from OA 37 42 30 29
- - - -
Investing Activities - - - -
Normal Capex (Consider with BCP capex) (2) (4) (9) (3)
OTI (0) (0) (0) (0)
Net cash from IA (2) (4) (9) (3)
- - - -
- - - -
Financing Activities - - - -
Dividends (16) - - -
Loan Repayment - - - -
Loan Received 37 32
Interest cost (UFI) - - (1) (3)
Net cash from FA (16) - 37 29
- - - -
Increase/Decrease 21 42 67 58
Movement in cash and cash equivalent - - - -
At start of the year 5 26 68 134
Increase/Decrease 21 42 67 58
At the end of the year 26 68 134 192
This would be remianing in LKR in $Mn 26 68 134 192
USD - -
Working Capital Days

Exit 2020 2021 2022 2023

Debtor 24 23 24 24
Creditor 78 77 78 78
Stock 56 64 68 65
Average woking Capital days 2 10 14 11

SIMULATION OF WORKING CAPITAL INJECTION-USD 80 Mn

Scenario 1 Working Capital Movement - Business As Usual

Movement in Stocks (3) (17) (7) (7)

Movement in debtors (2) (1) (2) (3)
Movement in creditors 1 11 3 3
Movement in WC (3) (7) (6) (6)
Cash Trapped 26 68 134 192

Scenario 2- Working Capital Movement - Capital Injection

Capital Injection - 80 -
Movement in Stocks (3) (17) (7) (7)
Movement in debtors (2) (1) (2) (3)

Movement in creditors 1 11 - 3
Movement in WC (3) (7) (9) (6)

Cash Trapped 26 68 214 272

Retained Earnings PNl FCCR liability for 2022

LKR
2021 2022 2023
TO 49,705 57,161 61,734
USG 15.0% 8.0%
UOP 8,089 9,445 10,355
COP 7,922 9,195 10,355
Retained Earnings 1,871 8,860 7,079

UOM 16.3% 16.5% 16.8%

COM 15.9% 16.1% 16.8%
Net Margin 3.8% 15.5% 11.5%

UOM bps 25 25
COM bps 15 69
Net Margin bps 1,174 -403

Tax -1,410 -4,976 -3,276

Royalty -4641 4641

EURO

2021 2022 2023

TO 166 191 206
USG 15.0% 8.0%
UOP 27 31 35
COP 26 31 35
Retained Earnings 6 30 20

UOM 16.3% 16.5% 16.8%

COM 15.9% 16.5% 16.8%
Net Margin 3.8% 15.5% 9.8%

UOM bps 25 25
COM bps 59 25
Net Margin bps 1,174 -567

Tax -5 -2 -9
Royalty (15.47) 15.47
2024
LKR Mn
11,350
165
1,715
-
269

(324)
(3,538)
(365)
13
203

8,227

(1,706)
(631)
486
(1,851)

61
3
3,551

9,992

(1,280)
(13)
(1,293)

(925)
11,120
(1,260)
10,195

20,187

57,244
20,187
77,750
77,750
 300
2024
EUR Mn
38
1
6
-
1
-
(1)
(12)
(1)
0
1
31.62
-
(6)
(2)
2
(6)
-
0
0
12
-
38
-
-
(4)
(0)
(4)
-
-
-
-
(3)
37
(4)
30
-
67
-
192
67
 259
259
-

2024
23
78
60
5

(7)
(3)
3
(7)
259

-
(7)
(3)

3
(7)

339

2024
66,672
8.0%
11,350
11,350
7,812

17.0%
17.0%
11.7%

25
25
25

-3,538

2024
222
8.0%
38
38
26

17.0%
17.0%
11.7%

25
25
189

-12
 ###
Comments

Growth at 9% 2023 & 10% 2024; assumes L5Y Growth of 8% and 25 bps UOM improvement per year post 2022
Restructuring - Remains same
More localization hence 8% increase
UFS( Integrated above) and Tea- Sale
Average of 5 Yrs + 8% Increase
Assumption FCCR Holiday 2022-2024 ( 4,641- to be written off
8% Increase
Surcharge added-FC by Tax team ( Same maintained next year)
Average considered 3 years
Average 3 years
4% income
(141Mn+27

6% inventory movement y/y; stock days at c.60-65 days

5 % movement considered y/y; maintaining debtor days at c.24 days
8 % creditor movement inline with 9% Growth y/y; maintaining creditor days at c.78 days
Maintained at -2.5% of turnover

Inline with 8% Revenue Growth

Remains the same ; €12m capex here for localisation in 2022

No dividend declared for 2021.

Loan repayemnt of LKR 925 Mn in 2024- Debt restructuring
2022- 40 Loan at 278 , 2023 - 40 Loan at 278 , 2024- 40 Loan at 278
2022( 2.31%+6.05+9)
###

EUR Mn

Dividends
Assumptions

Growth at 9% 2023 & 10% 2024; assumes L5Y Growth of 8% and 25 bps UOM improvement per year post 2022
Restructuring - Remains same
More localization hence 8% increase
UFS( Integrated above) and Tea- Sale
Average of 5 Yrs + 8% Increase
Assumption FCCR Holiday 2022-2024
8% Increase
Surcharge added-FC by Tax team ( Same maintained next year)
Average considered 3 years
Average 3 years
4% income

6% inventory movement y/y; stock days at c.60-65 days

5 % movement considered y/y; maintaining debtor days at c.24 days
8 % creditor movement inline with 9% Growth y/y; maintaining creditor days at c.78 days
Maintained at -2.5% of turnover

Inline with 8% Revenue Growth

Remains the same ; €12m capex here for localisation in 2022

No dividend declared for 2021.

Loan will not be repaid due to liquidity issue , 2020 MLA will be extended to 2024
(45- 2022, 40 - 2023, 40 - 2024)- Depreciation Impact
Loan interest is paid annually
Vendor Payments will be fully utilise the loan receipt and the export proceeds too will be fully utilized , hence ther will be no U

If Early settlements are made from 2022 this days ought to reduce
Positive correlation between creditors and stock days

Receipt of Funds from Unilever PLC with share Issuance

2022- Early Settlement of trade creditors and clearing total payable amounts to zero tarde creditor outstanding
balance at the end of the year

2022 year end balance would further increase by the Eur 80 Mn Working Capital Addition ( Opening 72 + 2022
Closing Balance 89 + Capital injection 80)
Royalty reveresal of 2021 (4.64 Bn). 2022 , invoice not yet raised -hence no impact
 5 2% 0.1155
10 6% 0.6025
40 9% 3.6
4.318 1014.73
3,600,000.00 4.2025 1260.75

528
 2.5 12
0.7 12
5 4

2820
hence ther will be no USD balance

30.25
 Total
Net Invoice- LKR
2020 Outstanding 2,017,788,382
ETS 321,100,969
Logo 285,157,537
Service fee 141,828,328
Technology 332,223,044
Trademark 937,478,505
2021 Outstanding 2,623,636,915
ETS 587,796,206
Service fee 255,596,667
Technology 684,753,465
Trademark 1,095,490,577
Set-off against Eketarra proceeds 1,290,034,636
ETS 98,286,567
Logo 151,775,320
Service fee 359,345,360
Technology 330,720,835
Trademark 349,906,554
Grand Total 5,931,459,933
Grand Total ( - ) Eketara proceeds 4,641,425,297