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					Best Buy Company, Inc.
NYSE: BBY Consumer Discretionary: Services: Retail (Technology) 1,000 Shares | Current Price: $30.18 | Impact: $30,180 Bond Rating: BBB-

BUY Recommendation

April 14th, 2003

Best Buy is a good buy for us!
• Well Positioned:

In the hopes of a recovering economy and potential post -war economic boost, Best Buy is positioned to capitalize on expected prosperity far better than any of it’s competitors. It’s real-estate exposure, solid reputation, and evolving product line have placed it in a position to outperform the closest competition.
•

Analysts:

Shifting Product Sales Mix:

Recognizing the change in their retail environment from low-margin CD’s and movies to higher-margin digital products, Best Buy is ahead of the pack in redesigning it’s stores and sales focus. With the inevitable growth and built in obsolescence of products like HDTV, computer hardware and software, digital camcorders, and cellular technology, Best Buy is a company that is set to prosper in the near future. • People will buy TV’s again: Best Buy’s product mix includes relatively inexpensive discretionary products. When the market does begin to recover, whether it be soon or in a year, these are the first products that people will resume buying. Best Buy’s beta of 2.19 indicates that when times do improve this company will benefit two -fold. COMPANY SNAPSHOT:
Best Buy Company, Inc. is a specialty retailer of consumer electronics, personal computers, entertainment software and appliances. The Company operates retail stores and commercial Websites under the brand names Best Buy, Media Play, On Cue, Sam Goody, Suncoast, Magnolia Hi-Fi and Future Shop. The Company operates three segments: Best Buy, Musicland and International. Best Buy is primarily a specialty retailer of consumer electronics, home office equipment, entertainment software and appliances. Also included in the Best Buy segment is Seattle-based Magnolia Hi-Fi, a high-end retailer of audio and video products. The Musicland segment is primarily a mall-based retailer of movies, prerecorded music, video games and other entertainmentrelated products. The International segment consists of Future Shop, a specialty retailer of consumer electronics, home office equipment, entertainment software and appliances with operations in Canada. Source: WSJ.com

Brian Busby: 469.951.9231 bbusby@mail.smu.edu Scott Krouse: 214.563.7045 skrouse@mail.smu.edu

Share Price ( 04/10/03) 52 week range Key Numbers & Ratios: Shares Outstanding Market Cap. (mill) Beta Earnings: EPS (FY 2002) EPS (FY 2003 est.) 1yr growth rate (%) 5yr growth rate (%) Valuation: Price/Book Price/Sales P/E Ratio PEG Operations: ROA (TTM) ROE (TTM) ROI (TTM) Inventory Turnover Financial Strength: Current Ratio Debt/Equity

$30.18 $16.99 - $53.15

BBY 321.73 9,709.66 2.19 $1.83 $2.12 15.00 17.60 3.92 0.44 16.49 0.94 8.13 24.34 16.83 5.92 1.30 0.30

Industry 1.86

4.60 15.00 3.53 0.54 16.08 1.07 8.14 24.07 15.20 4.90 1.56 0.40

Sources: WSJ.com, Multex

Corporate Profile
· Best Buy/BestBuy.com/Best Buy Canada. The largest volume specialty retailer of consumer electronics, personal computers, entertainment software and appliances, Best Buy Co., Inc. is headquartered in Eden Prairie, Minnesota. Best Buy currently operates retail stores in almost every state and is on track to have more than 550 stores nationwide by 2004. Its online services are supported by over 350 distribution centers throughout the U.S. Best Buy stores in Canada are a division of Best Buy Canada Ltd., a wholly owned subsidiary of Best Buy Co., Inc. · Magnolia Hi-Fi. Magnolia Hi-Fi is a high-end electronic entertainment retailer. Currently there are 16 stores and the subsidiary has just entered the California market. Its focus is on distributed audio and/or video, custom-designed and installed home theaters and corporate boardroom/presentation facilities. · Future Shop. Future Shop had become Canada's largest electronics retailer. It is similar in nature to the American Best Buys in its product lines and services. With more than 100 stores, Future Shop can be found throughout the country and in fiscal 2001 annual sales surpassed $2 billion. · Musicland. Musicland Group is a wholly owned subsidiary of Best Buy Co., Inc. Musicland is a specialty retailer of home entertainment software products. The company currently operates more than 1,300 stores under three names - Sam Goody, Suncoast Motion Picture Company , and Media Play - in 49 states, Puerto Rico and the Virgin Islands.
Sources: BestBuy.com, Magnolia Hi-Fi, Future Shop, Musicland

Source: Best Buy 2002 Annual Report

Richard Schulze along with his business partner founded Sound of Music in 1966. In 1971, Schulze bought out his partner and began to expand the chain. The 80’s changed his focus from a young, male client to a more affluent clientele. The year 1983 brought about a change in the name of the company to the current name, “Best Buy”. Furthermore, the company changed that year into a retail chain focused around wide selection and low prices. Best Buy went public in 1985 and the company continued to expand in the 80’s to more than 40 stores. Schulze then changed the concept of the store to more of warehouse store format that helped to drive many of Best Buy’s competition out of business. The early to mid-90’s proved difficult for the company as the store format was expanded and the company found itself in trouble. 1997 was the year the company realized it had overextended itself with expansions, super-sized stores, and financing promotions. As the 90’s ended, Best Buy formed a separate subsidiary for its online services. The company also began to focus more on digital products and feature stations for computer software. Magnolia Hi-Fi was acquired in 2000 for $87 million and in 2001 Best Buy acquired the Musicland Group for about $377 million. The last acquisitio n Best Buy made was Future Shop, the leading electronics retailer in Canada. In June 2002 Schulze turned over his responsibilities as CEO to vice chairman Brad Anderson; Schulze remains as chairman of the board. In January 2003 Best Buy closed down nearly 110 Musicland stores (90 Sam Goody music stores and 20 Suncoast video stores) and laid off about 700 employees.
Sources: Hoovers, Best Buy

Strategies for a new Marketplace: Best Buy used to be known for competitive pricing on their CD’s. Times have changed and so has the market for this type of product. CD’s are no longer a way to make little or any profit. Nowadays the largest gainers in the sales mix are phones, cameras, gaming, printers and laptops. The decliners in sales have been computers, CD’s, appliances, and network software. This is why the strategy of Best Buy has changed in the past year. The company now plans to focus more of its sales efforts on high-end, state of the art electronics products - which provide a higher margin and are growing at a steady clip .

Despite it’s rapid expansion over the past decade, there remains extensive growth potential for the corporation. Best Buy plans to open 40 new domestic retail stores in 2003, 20 new stores in Canada within the next four years, and 80+ new Best Buy stores in 2004. Furthermore, many of their older stores are under renovation to reflect the new company focus on digital products. The vision of the company is to have 1,000+ superstores in North America. More growth is predicted as the company keeps its highly -loyal customers and continues to create innovative store environments. With the growth in digital products still increasing, Best Buy intends to stay as the market leader in this field. The Sell-Off: With same store comparables down 13% from last year, the Musicland division of Best Buy is faced with a problematic dilemma in the future. Ever since Best Buy purchased the company in 2001, sales have slumped. Although the comparables are better than expected, the numbers are still not healthy. CD comparables declined by double digits in 2002. With Sam Goody’s focus on such a poor concept, the company has decided to sell the Musicland division of Best Buy. Best Buy can then re-focus its efforts on its successful core business. Strategic Priorities for the Future : · Customer drive. Best Buy plans to leverage customer information more efficiently. Since today’s shopper is a more demanding customer than in the past, the company will offer more in-store experiences that the customer wants. It also looks to differentiate and coordinate brands more effectively. · Efficient Enterprise. With the focus back on its core business, the company plans to re-deploy a portion of its savings to support customer centricity efforts. It plans to cut some of the back-of-house expenses in hopes of lowering its SG&A rates. · Win the Home with Service. Like many customer-oriented corporations nowadays, the trend is shifting back to service. Best Buy plans to lead the market for home lifestyle-based solutions by creating a service “brand.” · Win Entertainment. Through its new and expanded partnerships with AOL and Earthlink ISP, Best Buy plans to become the market maker for entertainment through its partnerships. It also wants to create new services relating to this high growing field. Additionally, optimizing the role of entertainment will help drive customer traffic.
Source: Best Buy

Industry Evaluation & Sector Outlook
The electronics retail industry is a large and varied sector in the marketplace. Before looking at the more specific market of electronics, the consumer sector must be examined as a whole. Consumers have a limited amount of disposable income and must decide over a wide array of choices as to how they are going to spend it. Consumer spending accounts for more than two thirds of the U.S. Economy. With this in mind, how consumers react will have a large affect on the market and vice versa. According to the National Retail Federation, GAFS (general merchandise, apparel, furniture, electronics/appliance, sporting goods, hobby, book and music stores) sales will rise 5.3% in 2003, .2% higher than last year. Although recessional issues have played on the minds of consumers, they are still willing to spend because of low inflation, decreasing mortgage rates and prospects for tax breaks. Right now consumers are more focused on higher utility goods, but the outlook looks even brighter in the second half of the year. With the end of the Iraqi conflict predicted by the end of the first half of the year, consumer confidence will be on the rise. When consumers are more confident they are more willing to buy more luxurious goods, such as higher-end electronics and appliances. The electronics retail sector of the market is well positioned to take full advantage of the increase in consumer confidence. Even in a time of economic flux, consumer electronics have fared better than most. As a result of fast technological advances and changes to product lines, this sector has kept itself from becoming saturated. There has been a digital craze as consumer electronics sales have achieved all time records. This trend has been lead by DVD player sales. For other divisions within the electronics retail sector, the key to success is innovation. This innovation can be seen in new and technologically advanced appliances. Appliance manufacturers have to look forward and compete with new and better technology. This has led to stiff pricing competition. For consumers this has been a great opportunity, but for retailers this has led to shrinking profits.
Source: Hoovers, National Retail Federation, MoneyCentral@CNN.com

Company News & Highlights
No longer the land of opportunity. After purchasing Musicland Group (under Sam Goody, Suncoas t, Media Play, and On Cue names) in January 2001for nearly $700 million, Best Buy has decided to part ways. Reasoning for placing the group for sale includes declines in CD sales, underperformance in consumer electronics, and declines in same store sales of Sam Goody. Hearing an “Echo” through the industry. In an ever-changing music market, Best Buy is combing with five music retailers (Tower Records, Virgin Entertainment Group, Wherehouse Entertainment, Hasting Entertainment, and Trans World Entertainment) to sell music that can be downloaded on the web. The collaboration will operate under the name “Echo.” Regroup, Refocus, Revive. Chairman Richard Schulze is restructuring the organization after a period of ungainly growth. The new refocused emphasis will be on higher margin items such as digital products instead of emphasizing on cheap CDs. Still growing strong. In 2003 Best Buy expects to open 40 new stores in the U.S. Best Buy also plans to expand internationally in Canada with 65 stores expect ed to open over the next three to four years.
Sources: Hoovers, Yahoo! Finance, Best Buy, Multex Investor, CNBC.com

Zacks Issues Buy Recommendation: 4/10/2003 - 6:00:00 AM Best Buy Company, Inc. (NYSE:BBY) is a leading 1 2 3 Recommendations Current Month Months Months appliance and electronics retailer. For the fiscal fourth Ago Ago Ago quarter ended March 1, 2003, BBY reported earnings from Strong Buy 8 7 6 6 continuing operations of $1.16 per diluted share, which Moderate Buy 3 5 5 5 surpassed what a consensus of analysts were expecting and the year-ago result of $1.04. Furthermore, revenue in the Hold 12 10 11 11 quarter, excluding discontinued operations, advanced by Moderate Sell 0 0 0 0 +11% to $7 billion. Same-store sales from continuing Strong Sell 0 0 0 0 operations rose by +1.2%. In the same statement BBY Mean Rec. 2.17 2.12 2.21 2.21 warned that the first quarter would be challenging due to the Source: CNBC war and a soft retail market. However, BBY still says that it expects earnings from continuing operations to rise about +15% in fiscal 2004, assuming a quick end to the war and a rise in consumer confidence. This positive statement sent a positive message to analysts and fiscal year estimates have been on the rise since. Investors shopping for companies with good long-term potential should check out BBY.

Competition & Comparables
Circuit City Stores, Inc. is national retailer of brand-name consumer electronics, personal computers and entertainment software. It sells video equipment, including televisions, digital satellite systems, DVD players, video cassette recorders, camcorders and cameras; audio equipment, including home and portable audio systems and compact disc players; mobile electronics, including car audio, video and security systems; home office products, including personal computers, printers, peripherals, software and facsimile machines; entertainment software, including video games, DVD movies and music, and other consumer electronics products, including wireless phones, corded and cordless phones and accessories. Merchandise varies by location based on store size and market characteristics. Circuit City operates over 600 superstores throughout the United States. Circuit city is the #2 electronics retailer in the U.S. behind Best Buy. Circuit City’s sales revenue for 2002 was about $10 billion, which was a little less than half of Best Buy’s sales revenue. Circuit City actually has more stores than Best Buy but has lower sales per store. Circuit City underwent some major changes in 2002. CarMax, the auto superstore was spun off becoming an independent company and will no longer contribute to Circuit City’s bottom line. Circuit City also spent about $48 million remodeling its stores which is quite a lot of money when net earnings from continuing operations was only $41.5 million. The biggest change in 2002 was its elimination of commission based pay for its sales employees. They will now be paid a flat hourly wage. This change cost the company the top 20% of its sales force as they left in reaction to this change in pay which basically reduces their income. The company claims that this change will reduce costs while not having a major impact on sales. Whether on not this is true will play out in 2003.

RadioShack Corporation primarily engages in the retail sale of consumer electronics through the RadioShack store chain. As of December 31, 2001, the Company operated 5,289 Company -owned stores located throughout the United States, as well as Puerto Rico and the Virgin Islands. These locations carry a broad assortment of both private-label and third-party branded products. The Company's product lines include electronic parts and accessories, cellular, personal communications system (PCS) and conventional telephones, audio and video equipment, direct -to-home (DTH) satellite systems and personal computers and related products, as well as specialized products, such as scanners and weather radios, among others. The Company also provides consumers access to third-party services such as cellular telephone and PCS activation, DTH satellite programming, long distance telephone service, Internet access, prepaid wireless airtime and extended warranties.

Sales have remained fairly flat over the past three years. In 2002 sales revenue was $4.5 billion down about $200 million from 2001 and 2000. The only segment that was up in 2002 was wireless communication, which made up $1.4 billion of total sales up from $1.2 billion in 2001. Otherwise, all other segments including home entertainment, and computers were down. Sales of satellite T.V. dishes were also down which is discouraging since they were once a high growth segment of the company. In fact, the home entertainment segment, which satellite dishes are part of, was down about $300 million to $850 million in total sales. Nothing that the company has tried to increase sales has really worked. In 2002, RadioShack discontinued all its “127 Cool Things,” test stores inside Blockbuster movie rental stores. This was their major marketing initiative for 2002 and apparently none of these test stores were a success. RadioShack does not seem to have any plans to give them another try in the future. Without any improvement in the weak U.S. economy RadioShack will probably see sales remain flat in 2003.

Ultimate Electronics Inc. is a specialty retailer of consumer electronics and home entertainment products in the Rocky Mountain, Midwest and Southwest regions of the United States. The Company focuses on mid- to high-end audio, video, television and mobile electronics products. It offers over 4,000 stock-keeping units (SKUs) at a wide range of price points representing approximately 150 brands, including a large selection of limited-distribution, upscale brands and lines. As of December 31. 2001, the Company operated 46 stores in Colorado, Arizona, Idaho, Iowa, Missouri, Nevada, New Mexico, Oklahoma, South Dakota, Utah and Minnesota. Ultimate Electronics is more a niche player and does not directly compete with Best Buy. Sales were up in 21% in 2002 to $704 million from $580 million in 2001. Net income fell 44% from $12 million in 2001 to $6.7 million in 2002. Due to the weaker market for electronic goods Ultimate Electronic has reduced its expansion plans for 2003 to only 8 stores. The company currently has 58 stores in 13 states across the U.S. As 2002 showed, the company is expanding and increasing costs faster than revenues and until the economy improves net income will continue to remain low .
Sources: Yahoo! Finance, Circuit City 2002 10-K, RadioShack 2002 10 -K, Ultimate Electronic 2002 10-K

On the following page you will find a chart containing relevant ratios and selected financial data comparing Best Buy to three of its top competitors (as listed above): Circuit City, Radio Shack, and Ultimate Electronics. This information provides some insight into Best Buys advantageous position in the current marketplace. To begin, on a more general note of value, Best Buy is currently trading near the bottom end of it’s five year Price to Earnings multiple range. This indicates that the stock is trading at an ‘affordable’ market price, when taking into consideration the earnings the company is generating. Furthermore, over the trailing twelve months sales are up nearly 7% versus a year ago, while the industry and competition trail with slower sales growth. The company’s five year historical growth rate in EPS is nearly 4 times that of it’s closest competitor, 44.55% versus 16.75% for ULTE. As far as efficiency of the organization goes, Best Buy is outperforming its rivals. Inventory Turnover, which is an important number when analyzing retail operations, is at a rate of 5.92 times a year, versus 4.9 for the industry and 4.81 for ULTE. Best Buy also surpasses the competition in other areas of vital retail performance; Asset Turnover and Receivables Turnover. Finally, the company is providing first-rate returns. Return on Assets, Return on Investment, and Return on Equity are all in line with the industry – and far better than the returns posted by CC and RSH. Only Ultimate Electronics posts better returns than BBY, but this is due to the nature of the higher-margin items they sell, the fast growth of the firm in recent years, and the smaller scale on which they operate. More financial data is available for your review on the following page and in the financial statements attached at the end of the report.

RATIO COMPARISON
Valuation Ratios P/E Ratio (TTM) P/E High - Last 5 Yrs. P/E Low - Last 5 Yrs. Beta Price to Sales (TTM) Price to Book (MRQ) Price to Tangible Book (MRQ) Price to Cash Flow (TTM) % Owned Institutions Growth Rates(%) Sales (MRQ) vs Qtr. 1 Yr. Ago Sales (TTM) vs TTM 1 Yr. Ago Sales - 5 Yr. Growth Rate EPS (MRQ) vs Qtr. 1 Yr. Ago EPS (TTM) vs TTM 1 Yr. Ago EPS - 5 Yr. Growth Rate Capital Spending - 5 Yr. Growth Rate Financial Strength Quick Ratio (MRQ) Current Ratio (MRQ) LT Debt to Equity (MRQ) Total Debt to Equity (MRQ) Profitability Ratios (%) Gross Margin (TTM) Gross Margin - 5 Yr. Avg. EBITD Margin (TTM) EBITD - 5 Yr. Avg. Operating Margin (TTM) Operating Margin - 5 Yr. Avg. Pre-Tax Margin (TTM) Pre-Tax Margin - 5 Yr. Avg. Net Profit Margin (TTM) Net Profit Margin - 5 Yr. Avg. Mgmt. Effectiveness (%) Return On Assets (TTM) Return On Assets - 5 Yr. Avg. Return On Investment (TTM) Return On Investment - 5 Yr. Avg. Return On Equity (TTM) Return On Equity - 5 Yr. Avg. Efficiency Receivable Turnover (TTM) Inventory Turnover (TTM) Asset Turnover (TTM) BBY 16.49 77.72 11.41 2.19 0.46 3.48 4.19 15.44 67.18 BBY -16.23 6.88 20.23 15.97 9.09 44.55 -100 BBY 0.57 1.3 0.3 0.3 BBY 25 20.69 4.82 5.22 4.82 4.34 4.84 4.45 2.97 2.74 BBY 8.13 9.92 16.83 21.94 24.34 27.36 BBY 56.4 5.92 2.74 CC 26.47* NM 7.26 2 0.11* 0.49 0.49 4.25 70.75 CC -6.55* 3.97* 6.04 -50.69* -70.36* 5.82 -17.5 CC 0.35 1.91 0.01 0.03 CC 23.73 24.41 3.19 4.77 1.7 3.24 1.7 3.24 0.42* 2.01 CC 0.97* 5.86 1.53* 8.4 1.63* 10.52 CC 56.09* 4.44 2.32* ULTE 15.1 NM 9.67 2.46 0.15 0.5 0.5 15.29 87.88 ULTE 12.94 21.41 18.76 -71.38 -52.84 16.75 -100 ULTE 0.55 2.15 0.04 0.04 ULTE 30.7 30.44 1.57 4.68 1.54 2.86 1.54 2.86 0.96 1.79 ULTE 2.43 5.01 3.3 7.62 3.81 9.47 ULTE 19.2 4.81 2.54 RSH 15.77 141.36 13.47 1.03 0.9 5.42 5.42 11.66 85 RSH -1.19 -4.16 -3.15 238.38 71.13 12.2 -2.04 RSH 0.79 2.06 0.81 0.86 RSH 48.9 47.76 12.3 11.85 9.28 8.3 9.28 8.3 5.76 5.08 RSH 11.99 10.31 18.79 18.01 36.85 29.49 RSH 21.66 2.49 2.08 Industry 16.08 77.35 11.58 1.86 0.54 3.53 4.06 13.29 60.83 Industry -10.08 5.27 15.79 13.11 22.37 31.17 -67.72 Industry 0.6 1.56 0.38 0.4 Industry 30.77 27.99 6.44 6.72 5.46 5.07 5.48 5.07 3.32 3.11 Industry 8.14 9.47 15.2 19.44 24.07 25.94 Industry 46.96 4.9 2.51 Sector 23.18 49.79 16.65 0.99 2.4 3.35 5.87 15.42 46.77 Sector 12.71 11.19 18.34 15.15 29.11 17.51 6.13 Sector 0.85 1.43 0.78 0.89 Sector 41.37 41.2 22.82 22.28 13.62 11.65 10.86 11.68 7.78 8.37 Sector 5.92 5.77 7.98 8.48 13.18 15.12 Sector 16.24 16.24 1.18 S&P 500 22.98 49.94 16.54 1 3 4.34 7.3 16.14 62 S&P 500 7.79 4.06 9.84 24.86 23.07 10.69 4.6 S&P 500 1.17 1.68 0.71 0.94 S&P 500 47.44 47.89 20.68 22.12 18.51 18.32 16.58 17.47 11.85 11.5 S&P 500 6.37 7.6 10.29 12.22 18.4 20.91 S&P 500 9.3 11.01 0.95

Industry: Retail (Technology) , Sector: Services Source: MultexInvestor

Valuation | Method of Comparables
Method of Comparables Valuation:

Best Buy ‘Revenue/Share’ x Industry ‘Price/Sales’ Ratio: $68.63 x 0.54 = $37.06

Best Buy ‘Book Value/Share’ x Industry ‘Price/Book’ Ratio: $8.49 x 3.53 = $29.97

Best Buy EPS x Industry P/E Ratio: $1.83 x 16.08 = $29.43

Best Buy Company, Inc. | Financial Statements
Annual Balance Sheet (Values in Millions)
Fiscal Year 2002 Quarterly Numbers 11/2002 08/2002 05/2002 02/2002 02/2001 02/2000

Assets
Current Assets Cash and Equivalents Receivables Inventories Other Current Assets Total Current Assets Non-Current Assets Property, Plant & Equipment, Gross Accum. Depreciation & Depletion Property, Plant & Equipment, Net Intangibles Other Non-Current Assets Total Non- Current Assets Total Assets 1,156.00 1,119.00 579 239 4,090.00 2,616.00 228 243 6,053.00 4,217.00 1,245.00 243 2,635.00 261 4,384.00 1,855.00 746.9 247 209 2,258.00 1,766.90 251 205.8 4,611.00 2,928.70 750.7 189.3 1,183.70 114.8 2,238.50

3,333.00 3,143.00 1,065.00 982 2,268.00 2,161.00 439 410 101 98 2,808.00 8,861.00 2,669.00 6,886.00

2,892.00 904 1,988.00 791 92 2,871.00 7,255.00

2,720.00 1,987.40 823 543.2 1,897.00 1,444.20 773 385.4 94 81.4 2,764.00 7,375.00 1,911.00 4,839.60

1,093.50 395.4 698.1 0 58.8 756.9 2,995.30

Liabilities & Shareholder's Equity
Current Liabilities Accounts Payable Short Term Debt Other Current Liabilities Total Current Liabilities Non-Current liabilites Long Term Debt Deferred Income Taxes Other Non-Current Liabilities Minority Interest Total Non- Current Liabilities Total Liabilities Shareholder's Equity Preferred Stock Equity Common Stock Equity Total Equity Total Liabilities & Stock Equity 4,094.00 2,361.00 7 11 1,184.00 1,026.00 5,285.00 3,398.00 2,424.00 12 1,013.00 3,449.00 2,449.00 1,772.70 7 114.9 1,274.00 827 3,730.00 2,714.70 1,313.90 15.8 455.3 1,785.00

822 0 284 0 1,106.00 6,391.00

821 0 286 0 1,107.00 4,505.00

812 0 321 0 1,133.00 4,582.00

813 0 311 0 1,124.00 4,854.00

181 0 122 0 303 3,017.60

14.9 0 99.4 0 114.3 1,899.30

0 0 2,470.00 2,381.00 2,470.00 8,861.00 321.7 Mil 0 0 2,381.00 6,886.00 321.6 Mil 0 0

0 2,673.00 2,673.00 7,255.00 321.4 Mil 0 0

0 0 2,521.00 1,821.90 2,521.00 7,375.00 319.1 Mil 0 0 1,821.90 4,839.50 312.1 Mil 0 0

0 1,096.00 1,096.00 2,995.30 300.4 Mil 0 0

Total Common Shares Outstanding Preferred Shares Treasury Shares

Annual Income Statement (Values in Millions) Sales Cost of Sales Gross Operating Profit Selling, General & Admin. Expense Other Taxes EBITDA Depreciation & Amortization EBIT Other Income, Net Total Income Avail for Interest Exp. Interest Expense Minority Interest Pre-tax Income Income Taxes Special Income/Charges Net Income from Cont. Operations Net Income from Discont. Opers. Net Income from Total Operations Normalized Income Extraordinary Income Income from Cum. Eff. of Acct. Chg. Income from Tax Loss Carryforward Other Gains (Losses) Total Net Income Dividends Paid per Share Preferred Dividends Basic EPS from Cont. Operations Basic EPS from Discont. Operations Basic EPS from Total Operations Diluted EPS from Cont. Operations Diluted EPS from Discont. Operations Diluted EPS from Total Operations

Fiscal Year 2002 Quarter ly Numbers 11/2002 08/2002 05/2002

02/2002

02/2001

02/2000

5,505.00 4,224.00 1,281.00 1,048.00 0 233 94 139 0 139 1 0 138 53 0 85 0 85 85 0 0 0 0 85 0 0 0.26 0 0.26 0.26 0 0.26

5,008.00 4,586.00 3,793.00 3,436.00 1,215.00 1,150.00 1,026.00 950 0 0 189 200 86 85 103 115 0 0 103 115 3 0 0 0 100 115 38 45 0 62 0 62 62 0 0 0 0 62 0 0 0.19 0 0.19 0.19 0 0.19 0 70 0 70 70 0 0 0 0 70 0 0 0.22 0 0.22 0.22 0 0.22

19,597.00 15,326.60 14,858.00 12,100.10 4,739.00 3,226.50 3,493.00 2,454.80 0 0 1,246.00 771.7 309 167.4 937 604.3 0 37.2 937 641.5 1 0 0 0 936 641.5 366 245.6 0 570 0 570 570 0 0 0 0 570 0 0 1.8 0 1.8 1.77 0 1.77 0 395.8 0 395.8 395.8 0 0 0 0 395.8 0 0 1.28 0 1.28 1.24 0 1.24

12,494.00 9,991.10 2,502.90 1,854.20 0 648.7 109.5 539.2 23.3 562.5 0 0 562.5 215.5 0 347.1 0 347.1 347.1 0 0 0 0 347.1 0 0 1.13 0 1.13 1.09 0 1.09

Annual Cash Flow (in Millions)

Fiscal Year 2002 Quarterly Numbers 11/2002 08/2002 05/2002

02/2002

02/2001

02/2000

Cash Flow from Operating Activities
Net Income (Loss) Depreciation and Amortization Deferred Income Taxes Operating (Gains) Losses Extraordinary (Gains) Losses Change in Working Capital (Increase) Decr. in Receivables (Increase) Decr. in Inventories (Increase) Decr. in Other Curr. Assets (Decrease) Incr. in Payables (Decrease) Incr. in Other Curr. Liabs. Other Non-Cash Items Net Cash from Cont. Operations Net Cash from Discont. Operations -131 265 -27 362 0 -348 1,829.00 -36 1,612.00 -1 0 -133 0 -216 171 0 350 0 -9 -354 -27 -122 -154 0 -361 0 70 85 0 0 0 6 -370 -17 -31 -220 9 -468 0 570 309 23 46 0 -18 -330 -39 529 488 0 1,578.00 0 395.8 167.4 42.8 20.6 0 -7.4 -144 -16 16.2 332.8 0 808.2 0 347.1 109.5 0 0 0 -56.9 -137.3 -11 302.2 206.6 0 760.2 0

Net Cash from Operating Activities

-133

-361

-468

1,578.00

808.2

760.2

Cash Flow from Investing Activities
Cash Flow Provided by: Sale of Property, Plant, Equipment Sale of Short Term Investments Cash Used by: Purchase of Property, Plant, Equipmt. Purchase of Short Term Investments Other Investing Changes Net 0 0 -652 0 44 0 0 -439 0 22 0 0 -175 0 -1 0 0 -995 0 30 0 0 -983.8 0 -46 0 0 -361 0 -39.1

Net Cash from Investing Activities

-608

-417

-176

-965 1,029.80

-400.1

Cash Flow from Financing Activities
Cash Flow Provided by: Issuance of Debt Issuance of Capital Stock Cash Used for: Repayment of Debt Repurchase of Capital Stock Payment of Cash Dividends Other Financing Charges, Net 15 39 -12 0 0 0 10 36 -4 0 0 0 0 36 -2 0 0 0 48 726 -279 0 0 0 0 235.4 -17.6 0 0 0 0 32.2 -29.9 -397.5 0 0

Net Cash from Financing Activities Effect of Exchange Rate Changes Net Change in Cash & Cash Equivalents Cash at Beginning of Period Free Cash Flow

42 0

42 0

34 0

495 0 1,108.00 747 583

217.8 0 -3.8 750.7 -175.6

-395.2 0 -35.1 785.8 399.2

-699 -736 -610 1,855.00 1,855.00 1,855.00 -785 -800 -643

All Financial Statement Information was taken from CNBC.com


				
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