Herbalife Ltd. (HLF) $59.55 U.S

Herbalife Ltd. (HLF) $59.55 U.S. Dollar | Bmrk/Ind: FactSet Country / Distribution Services SEC As of: 22 Jul '14

Profile Key Items

Sector Industry Mkt Cap (M) EV (M) Sales (M) Trading Information Valuation 5Y Trend Current vs. Ind vs. Bmrk Distribution Services Food Distributors $5,847 $6,434 $4,964 Current Price $59.60 P/E (LTM) 13.1 0.6 0.7 52 Wk Range $49.35 83.51 P/E (NTM) 8.7 0.5 0.5 Herbalife Ltd. is a global nutrition company. It offers a range of sciencebased weight management products, Avg Daily Vol (3m) 1.59 (M) P/Sales 1.2 3.5 0.8 nutritional supplements and personal care products intended to support a healthy lifestyle. The company's product development is focused on four principal categories: weight management; targeted nutrition, including Short Int (% of P/Bk 143.4 40.4 103.4 28.2% everyday wellness and healthy aging; energy, sports and fitness and outer nutrition that capitalize on the mega Float) P/CF 7.3 0.5 0.7 trends of obesity and antiaging. Herbalife was founded by Mark Reynolds Hughes in 1980 and is Key Statistics EV/EBITDA 8.3 0.7 0.8 headquartered in George Town, Cayman Islands. Mkt Value (M) $5,847 EV/Sales 1.3 3.2 0.5 Ent Value (M) $6,434 Shares Out (000) 98,107 Profitability (%) 10Y Trend LTM Ind Bmrk Dividend (Ann) $0.00 Gross Margin 78.9 9.8 30.4 Div Yld 0.0% EBITDA Margin 15.6 3.4 17.2 EBIT Margin 13.9 2.8 12.0 Net Margin 9.7 1.6 8.2 $59.60 Estimates EPS (FY0) $5.37 ROE 251.0 16.1 13.5 YTD 24.3% EPS (FY1) $6.29 3M 4.0% EPS (FY2) $7.24 Growth (%) 10Y Trend LTM Ind Bmrk 1Y 6.8% Beta 2.51 Coverage 4 Analysts Sales 17.3 7.6 3.3 FY1 PE 8.6x Target Price $85.50 EBITDA 1.8 5.2 4.3 LT Growth Rate 19.0% EBIT 0.8 3.5 5.8 Avg Rating Buy (1.20) EPS (Dil) 6.1 5.2 5.2

Price & Volume StreetAccount News

22 JUL '14 9:20 A.M. (ET) Herbalife releases research and analysis regarding Herbalife’s U.S. business operations

22 JUL '14 7:57 A.M. (ET) Clarification: Herbalife Pershing Square presentation of investigation into Herbalife Nutrition Clubs

21 JUL '14 8:44 P.M. (ET)

Pershing Square presentation of investigation into Herbalife Nutrition Clubs to begin at 09:15 ET

21 JUL '14 12:58 P.M. (ET) Herbalife traded lower following cautious comments from Pershing Squares' Ackman in CNBC interview

16 JUL '14 10:20 A.M. (ET) Pershing Square to release evidence of Herbalife perpetuating fraud NY Post

24 JUN '14 12:43 P.M. (ET) Business dean of College of New Jersey urges SEC to increase scrutiny of Herbalife NY Post

03 JUN '14 8:42 A.M. (ET) Pershing Square responds to recent ruling in FTC V. BurnLounge, Inc.

Key Estimates Corporate Information

Earnings FY 13 FY 14E FY 15E Q1 14 Q2 14E Q3 14E Q4 14E Management Board Michael O. Johnson, 59 Michael O. Johnson, 59 EPS GAAP 4.91 5.45 7.06 0.74 1.55 1.61 1.63 Chairman & Chief Executive Officer Chairman & Chief Executive Officer Growth (%) 21.2 11.1 29.4 32.7 15.7 21.6 41.3 Desmond J. Walsh, 57 Leroy T. Barnes, 62 EPS Non GAAP 5.37 6.29 7.24 1.50 1.57 1.62 1.63 President Independent Director Growth (%) 32.6 17.1 15.1 18.1 11.0 14.5 27.7 Richard P. Goudis, 52 Richard P. Bermingham, 74 Income Statement (M) FY 13 FY 14E FY 15E Q1 14 Q2 14E Q3 14E Q4 14E Chief Operating Officer Lead Independent Director Sales 4,825 5,378 5,879 1,263 1,359 1,343 1,383 John G. DeSimone, 47 Jeffrey T. Dunn, 56 Growth (%) 18.5 11.5 9.3 12.4 11.5 10.7 9.0 Chief Financial Officer Independent Director EBITDA 876 955 1,053 205 249 247 246 Steve Yair Henig, 70 Richard H. Carmona, 64 Growth (%) 19.1 8.9 10.3 4.4 10.4 11.7 16.2 Chief Scientific Officer Independent Director Patrick R. Dailey María Otero Operating Income 761 792 933 128 222 224 223 Chief Administrative Officer Independent Director Growth (%) 15.1 4.0 17.8 34.1 9.0 16.8 22.8 Net Income 528 517 615 75 149 147 146 Growth (%) 10.5 1.9 18.8 37.2 3.8 3.5 18.1 South Church Street, Ugland House James Paul Berklas Fiscal Year December Per Share FY 13 FY 14E FY 15E Q1 14 Q2 14E Q3 14E Q4 14E George Town, Investor Relations Contact Exchange NYSE Dividends per Share 1.20 0.30 0.00 KY11106 herbalife.com ISIN KYG4412G1010 Cash Flow per Share Cayman Islands Employees (2013) 7,000 CUSIP G4412G101 Free Cash Flow per Share SEDOL B0539H3 Book Value per Share 5.14

Ownership Summary Top Holders Institutions and Insiders

FLOAT 90.4% Institutions Position (000) % O/S % Port 3M Chg (000) Mkt Value (USD) Shares Out 98,107,000 Icahn Associates Corp. 17,000 17.3 2.8 34 918,339,968 Short Interest 25,015,412 Fidelity Management & Research Co. 11,356 11.6 0.1 452 613,433,792 Capital Research & Management Co. (Wo... 7,498 7.6 0.1 553 405,042,944 Soros Fund Management LLC 4,901 5.0 2.4 1,696 264,770,224 Perry Corp. (New York) 4,800 4.9 10.5 1,800 259,296,000 INSIDER 9.6% Inst. Ownership 108.0% The Vanguard Group, Inc. 4,796 4.9 0.0 88 259,092,128 North American 57.7% East Side Capital Corp. 3,184 3.2 5.1 165 172,005,088 NonNorth American 7.8% BlackRock Fund Advisors 3,004 3.1 0.0 323 162,291,472 Inst Ownership as % of Float 119.4% AJO LP 1,940 2.0 0.4 620 104,779,896 Top 10 Inst. Holders 61.6% Jennison Associates LLC 1,929 2.0 0.1 902 104,196,696 Morgan Stanley & Co. LLC 1,909 1.9 0.2 1,845 103,107,704 Credit Suisse Securities (USA) LLC (B... 1,859 1.9 0.1 1,684 100,426,368

Insiders Position (000) % O/S % Port 3M Chg (000) Mkt Value (USD) NET POSITION CHANGE 4,114,011 STIRITZ WILLIAM P 7,485 7.6 91.6 1,021 404,329,120 Total (414) 105,952,776 JOHNSON MICHAEL O 1,091 1.1 100.0 7 58,951,000 New (76) 5,163,055 Increase (128) 18,481,804 TARTOL JOHN M 238 0.2 100.0 50 12,833,693 Decrease (159) 9,652,267 LEVY ROBERT MUSSER 169 0.2 100.0 0 9,155,364 Soldout (77) 9,878,580 GOUDIS RICHARD P 150 0.2 100.0 0 8,121,799

Segments Snapshot Targets & Ratings

There is no data available for this identifier.

LOW MEAN HIGH 73.00 35.14% 85.50 58.27% 94.00 74.01%

Estimate Growth Quarterly Surprise History Quarterly EPS Q2 '13 Q2 '14E Growth (YoY%) 1.41 1.57 11.0%

Period After Event Mean Surp Amt Surp (%) Period After Event Mean Surp Amt Surp (%) Sales (M) Q2 '13 Q2 '14E Growth (YoY%) Q2 '14 E 1.57 Q2 '14 E 1,359 1,219 1,359 11.5% Q1 '14 1.50 1.30 0.20 15.4 Q1 '14 1,263 1,236 26 2.1 Q4 '13 1.28 1.25 0.03 2.4 Q4 '13 1,269 1,253 16 1.3 Q3 '13 1.41 1.14 0.27 23.5 Q3 '13 1,214 1,195 19 1.6 Q2 '13 1.41 1.18 0.23 19.2 Q2 '13 1,219 1,160 59 5.1 Q1 '13 1.27 1.07 0.20 19.2 Q1 '13 1,124 1,114 10 0.9 Q4 '12 1.05 1.03 0.02 1.9 Q4 '12 1,059 1,051 8 0.8 Q3 '12 1.04 1.01 0.03 3.1 Q3 '12 1,017 997 20 2.0 Q2 '12 1.10 0.96 0.14 14.3 Q2 '12 1,032 974 58 5.9

Estimate Table Sales Consensus Trend Annual (M) Sales (M)

FY Ending Dec '07 Dec '08 Dec '09 Dec '10 Dec '11 Dec '12 Dec '13 Dec '14E Dec '15E Q1 (Mar) 508 604 522 619 795 964 1,124 1,263 Q2 (Jun) 530 640 572 689 880 1,032 1,219 1,359 Q3 (Sep) 530 602 600 688 895 1,017 1,214 1,343 Q4 (Dec) 578 513 631 738 885 1,059 1,269 1,383 Fiscal Year 2,146 2,359 2,325 2,734 3,455 4,072 4,825 5,378 5,879 EV/Sales (x) 1.4 0.7 1.1 1.5 1.8 0.9 1.7 1.1 1.0 CY Ending Dec '07 Dec '08 Dec '09 Dec '10 Dec '11 Dec '12 Dec '13 Dec '14E Dec '15E Cal. Year 2,146 2,359 2,325 2,734 3,455 4,072 4,825 5,378 5,879 EV/Sales (x) 1.4 0.7 1.1 1.5 1.8 0.9 1.7 1.1 1.0

Growth (YoY%)

FY Ending Dec '07 Dec '08 Dec '09 Dec '10 Dec '11 Dec '12 Dec '13 Dec '14E Dec '15E Q1 (Mar) 11.5 19.0 13.7 18.6 28.5 21.3 16.5 12.4 Q2 (Jun) 13.8 20.7 10.6 20.5 27.7 17.3 18.1 11.5 Q3 (Sep) 11.2 13.7 0.3 14.7 30.0 13.6 19.3 10.7 Q4 (Dec) 18.6 11.3 23.0 17.0 19.8 19.8 19.8 9.0 Fiscal Year 13.8 9.9 1.5 17.6 26.3 17.9 18.5 11.5 9.3 CY Ending Dec '07 Dec '08 Dec '09 Dec '10 Dec '11 Dec '12 Dec '13 Dec '14E Dec '15E Cal. Year 13.8 9.9 1.5 17.6 26.3 17.9 18.5 11.5 9.3

Sales Broker Detail Q2 '14E (M) Sales Broker Revisions Q2 '14E (M)

Consensus Guidance # of Brokers Consensus Guidance 1M Revision 1W Revision 1,359 1,341 1,366 4 1,359 1,341 1,366 0.0% 0.0%

Broker Analyst Research Estimate Previous Chg (%) Restricted 1 Restricted 29 Apr '14 1,375 1,375 0.00 Wedbush Securities Rommel Dionisio 16 Jul '14 1,365 1,365 0.00 SunTrust Robinson H... Michael A. Swartz 29 Apr '14 1,352 1,352 0.00 Canaccord Genuity Scott Van Winkle 29 Apr '14 1,345 1,345 0.00

Estimate Table EPS Consensus Trend Annual EPS

FY Ending Dec '07 Dec '08 Dec '09 Dec '10 Dec '11 Dec '12 Dec '13 Dec '14E Dec '15E Q1 (Mar) 0.31 0.47 0.34 0.49 0.71 0.88 1.27 1.50 Q2 (Jun) 0.32 0.51 0.39 0.66 0.88 1.10 1.41 1.57 Q3 (Sep) 0.34 0.44 0.43 1.17 0.87 1.04 1.41 1.62 Q4 (Dec) 0.40 0.34 0.49 1.31 0.86 1.05 1.28 1.63 Fiscal Year 1.36 1.76 1.64 4.77 3.31 4.05 5.37 6.29 7.24 P/E (x) 14.9 6.1 12.4 7.2 15.6 8.1 14.7 8.6 7.5 CY Ending Dec '07 Dec '08 Dec '09 Dec '10 Dec '11 Dec '12 Dec '13 Dec '14E Dec '15E Cal. Year 1.36 1.76 1.64 4.77 3.31 4.05 5.37 6.29 7.24 P/E (x) 14.9 6.1 12.4 7.2 15.6 8.1 14.7 8.6 7.5

Growth (YoY%)

FY Ending Dec '07 Dec '08 Dec '09 Dec '10 Dec '11 Dec '12 Dec '13 Dec '14E Dec '15E Q1 (Mar) 27.1 52.5 26.9 44.1 45.9 23.1 44.3 18.1 Q2 (Jun) 30.6 60.9 24.3 69.2 33.3 25.0 28.2 11.0 Q3 (Sep) 31.4 32.8 4.5 175.3 25.6 19.5 35.6 14.5 Q4 (Dec) 33.9 12.7 42.0 167.3 34.4 22.1 21.9 27.7 Fiscal Year 31.6 30.3 7.1 190.9 30.6 22.4 32.6 17.1 15.1 CY Ending Dec '07 Dec '08 Dec '09 Dec '10 Dec '11 Dec '12 Dec '13 Dec '14E Dec '15E Cal. Year 31.6 30.3 7.1 190.9 30.6 22.4 32.6 17.1 15.1

EPS Broker Detail Q2 '14E EPS Broker Revisions Q2 '14E

Consensus Guidance # of Brokers Consensus Guidance 1M Revision 1W Revision 1.57 1.51 1.55 4 1.57 1.51 1.55 0.0% 0.0%

Broker Analyst Research Estimate Previous Chg (%) Restricted 1 Restricted 29 Apr '14 1.59 1.59 0.00 Wedbush Securities Rommel Dionisio 16 Jul '14 1.57 1.57 0.00 Canaccord Genuity Scott Van Winkle 29 Apr '14 1.55 1.55 0.00 SunTrust Robinson H... Michael A. Swartz 29 Apr '14 1.55 1.55 0.00

Valuation Summary Valuation Peer Analysis

Valuation 5Y Trend Current 5Y High 5Y Low 5Y Avg vs. Ind vs. Bmrk ForeverGreen LifeQuest GNC Holdings, Worldwide World Mannatech, P/E 13.1 24.6 6.2 15.0 0.6 0.7 Herbalife Ltd. Inc. Class A Avon Products, Corpora... Corporation... Incorporated P/E NTM 8.7 19.3 5.3 12.3 0.5 0.5 (HLF) (GNC) Inc. (AVP) (FVRG) (LQWC) (MTEX) P/Sales 1.2 2.6 0.7 1.5 3.5 0.8 P/E LTM 13.1 12.5 34.7 11.5 P/Sales NTM 1.0 2.2 0.6 1.3 3.3 0.7 P/E NTM 8.7 10.4 15.4 P/Bk 143.4 160.7 5.7 15.3 40.8 103.6 PEG NTM 0.5 0.8 3.0 P/Bk NTM 20.3 3.2 8.1 P/Sales 1.2 1.2 0.6 0.8 0.2 P/CF 7.3 19.6 5.3 11.3 0.5 0.7 P/Bk 143.4 4.3 6.6 1.3 P/CF NTM 16.2 4.8 10.4 P/CF 7.3 12.1 11.1 5.2 EV/EBITDA 8.3 15.1 3.9 8.7 0.7 0.8 EV/EBITDA 8.3 8.2 12.2 1.5 EV/EBITDA NTM 6.5 11.8 3.5 7.3 0.7 0.7 EV/Sales 1.3 1.6 0.8 0.9 0.1 EV/Sales 1.3 2.5 0.7 1.5 3.2 0.5 Div Yld 0.0 1.9 1.7 0.0 0.0 0.0 EV/Sales NTM 1.1 2.1 0.6 1.3 3.2 0.5

Price to Earnings Price to Earnings NTM

Profitability Ratios Annual Profitability Peer Analysis LTM

Profitability (%) 10Y Trend Dec '08 Dec '09 Dec '10 Dec '11 Dec '12 Dec '13 Gross Margin 80.6 76.1 77.0 78.2 78.3 78.4 Operating Margin 14.6 13.8 14.5 16.6 16.4 16.1 Pretax Margin 13.5 12.5 13.9 16.2 16.0 14.9 Net Margin 9.4 8.7 10.6 11.9 11.7 10.9 ROA 20.2 17.9 24.4 30.8 30.3 25.3 ROE 104.3 67.7 68.6 78.8 97.3 108.5 ROTC 38.8 33.8 45.6 57.7 57.1 44.1 ForeverGreen LifeQuest ROIC 39.5 34.6 46.1 57.9 59.1 46.8 GNC Holdings, Worldwide World Mannatech, Efficiency 10Y Trend Dec '08 Dec '09 Dec '10 Dec '11 Dec '12 Dec '13 Herbalife Ltd. Inc. Class A Avon Products, Corpora... Corporation... Incorporated Revenue/Employee (000) 589.8 567.0 607.6 677.4 656.8 689.3 (HLF) (GNC) Inc. (AVP) (FVRG) (LQWC) (MTEX) Net Income/Employee (000) 55 50 65 81 77 75 Gross Margin (%) 78.9 25.2 61.9 75.0 57.5 Receivables Turnover (x) 36.7 31.6 33.6 39.4 39.6 44.6 Operating Margin (%) 13.9 17.8 4.5 16.9 141.6 3.2 Days of Sales Outstanding 10.0 11.5 10.9 9.3 9.2 8.2 Net Margin (%) 9.7 9.9 1.6 2.0 158.4 1.5 Inventory Turnover (x) 3.5 4.0 3.8 3.5 3.0 3.0 ROA (%) 19.5 9.9 2.3 14.3 34.6 5.4 Days of Inventory on Hand 104.7 92.0 95.3 104.4 121.3 121.1 ROE (%) 251.0 32.5 15.2 86.0 12.6 Payables Turnover (x) 12.1 14.5 16.4 16.2 14.7 13.3 Revenue/Employee (000) 709.2 166.2 263.8 371.0 256.5 603.8 Days of Payables Outstanding 30.1 25.2 22.2 22.5 24.8 27.4 Receivables Turnover (x) 43.0 18.3 12.2 30.5 42.9 282.6 Total Asset Turnover (x) 2.1 2.0 2.2 2.4 2.4 2.0 Inventory Turnover (x) 3.2 3.7 3.4 0.7 5.5 Working Capital Turnover (x) 28.5 27.8 21.9 15.7 16.5 6.7 Payables Turnover (x) 12.5 13.7 3.9 0.6 16.1

Credit Ratios Annual Credit Peer Analysis LTM

Liquidity Analysis 10Y Trend Dec '08 Dec '09 Dec '10 Dec '11 Dec '12 Dec '13 Current Ratio 1.21 1.19 1.27 1.40 1.34 1.78 Quick Ratio 0.87 0.85 0.88 0.95 0.87 1.40 Cash Ratio 0.38 0.35 0.40 0.47 0.47 1.06 Credit Analysis 10Y Trend Dec '08 Dec '09 Dec '10 Dec '11 Dec '12 Dec '13 Interest Coverage (EBITDA) 19.6 44.5 76.6 120.2 44.4 35.1 Interest Coverage (EBIT) 17.1 37.2 65.3 106.8 40.0 31.6 Fixed Chg Coverage 17.1 37.2 65.3 106.8 40.0 31.6 ForeverGreen LifeQuest CFO/Int Exp 13.6 33.1 62.7 95.0 33.9 31.5 GNC Holdings, Worldwide World Mannatech, Total Debt/EBITDA 0.9 0.7 0.4 0.3 0.7 1.1 Herbalife Ltd. Inc. Class A Avon Products, Corpora... Corporation... Incorporated Net Debt/EBITDA 0.5 0.3 0.0 0.1 0.2 0.0 (HLF) (GNC) Inc. (AVP) (FVRG) (LQWC) (MTEX) Net Debt/(EBITDACapEx) 0.7 0.3 0.0 0.1 0.2 0.1 Interest Coverage (EBIT) 19.0 9.8 3.6 10.0 8.4 LT Debt/EBITDA 0.9 0.6 0.4 0.3 0.6 1.0 Fixed Chg Coverage 19.0 9.8 3.6 10.0 8.4 Total Debt/Total Equity 145.5 69.7 36.6 36.3 115.9 168.9 CFO/Int Exp 22.7 5.6 4.6 0.0 1.9 Total Debt/Total Capital 59.3 41.1 26.8 26.7 53.7 62.8 Total Debt/EBITDA 2.4 2.6 4.2 0.2 Total Debt/Total Assets 31.4 21.8 14.5 14.1 28.6 37.6 Net Debt/EBITDA 0.8 2.2 2.9 0.1 1.3 2.7 Net Debt/FFO 0.7 0.4 0.0 0.1 0.3 0.1 LT Debt/EBITDA 2.3 2.6 3.9 0.5 0.0 0.0 LT Debt/FFO 1.2 0.9 0.5 0.4 0.8 1.3 Total Debt/Total Equity 4,389.6 185.7 295.6 81.0 6.5 FCF/Total Debt 0.5 0.9 1.8 2.1 0.9 0.7 Total Debt/Total Capital 97.8 65.0 74.7 334.2 44.8 6.1 CFO/Total Debt 0.8 1.1 2.1 2.5 1.2 0.8 Total Debt/Total Assets 64.7 49.9 44.5 37.1 31.9 2.7

DuPont Analysis Annual DuPont Peer Analysis LTM

ForeverGreen LifeQuest GNC Holdings, Worldwide World Mannatech, Herbalife Ltd. Inc. Class A Avon Products, Corpora... Corporation... Incorporated Dec '06 Dec '07 Dec '08 Dec '09 Dec '10 Dec '11 Dec '12 Dec '13 LTM (HLF) (GNC) Inc. (AVP) (FVRG) (LQWC) (MTEX) Asset Turnover 2.03 2.06 2.16 2.05 2.30 2.58 2.59 2.31 2.01 Asset Turnover 2.0 1.0 1.4 7.2 0.2 3.5 x Operating Margin 14.3 15.3 14.6 13.8 14.5 16.6 16.4 16.1 13.9 x Operating Margin 13.9 17.8 4.5 16.9 141.6 3.2 x Interest Burden 0.81 0.92 0.93 0.91 0.96 0.98 0.97 0.92 0.96 x Interest Burden 1.0 0.9 0.0 0.1 1.1 0.5 x Tax Burden 0.66 0.63 0.69 0.70 0.76 0.74 0.73 0.74 0.73 x Tax Burden 0.7 0.6 20.7 1.0 1.0 1.0 = ROA 15.4 18.4 20.2 17.9 24.4 30.8 30.3 25.3 19.5 = ROA 19.5 9.9 2.3 14.3 34.6 5.4 x Equity Leverage 3.55 3.89 5.16 3.77 2.81 2.56 3.21 4.30 12.84 x Equity Leverage 12.8 3.3 6.5 1.2 2.5 2.4 = ROE 54.8 71.4 104.3 67.7 68.6 78.8 97.3 108.5 251.0 = ROE 251.0 32.5 15.2 86.0 12.6 x Earnings Retention 100.0 77.2 76.2 75.2 80.7 78.0 70.4 75.6 73.6 x Earnings Retention 73.6 77.7 100.0 100.0 = Reinvestment Rate 54.8 55.9 80.4 51.5 55.9 62.5 69.7 83.2 187.4 = Reinvestment Rate 187.4 25.4 25.7 86.0 12.6

Income Statement Annual (M) Income Statement Growth Annual HLF Ind Dec '10 Dec '11 Dec '12 Dec '13 LTM 10Y Trend 5Y CAGR 10Y CAGR Sales/Revenues 2,734 3,455 4,072 4,825 4,964 15.4% 15.3% COGS incl. D&A 629 752 884 1,040 1,050 17.8% 16.0% Gross Inc 2,105 2,703 3,189 3,785 3,915 14.8% 15.1% SG&A 1,709 2,130 2,520 3,008 3,224 14.1% 22.6% Other Oper Expense 0 0 0 0 0 EBIT(Operating Income) 396 573 669 777 691 17.6% 21.9% Nonop Inc (Exp) Net 5 4 6 37 4 Interest Expense 6 5 17 25 36 4.1% 5.1% Unusual Exp (Inc) Net 5 4 7 1 5 Pretax Income 380 560 651 717 663 17.6% 27.0% Income Taxes 90 147 174 189 179 14.1% 20.7% Minority Interest 0 0 0 0 0 Net Income 291 413 477 528 483 19.0% 30.5%

EPS (recurring) 2.359 3.327 4.092 4.902 4.762 23.3% 30.4% EPS (diluted) 2.335 3.300 4.050 4.910 4.550 23.9% 30.4%

EBITDA 464 645 743 862 776 17.0% 18.1%

Balance Sheet Annual (M) Use of Cash Annual (M)

Dec '09 Dec '10 Dec '11 Dec '12 Dec '13 10Y Trend 5Y CAGR 10Y CAGR Curr Assets 514 596 769 964 1,643 27.7% 19.5% Cash & ST Inv 151 191 259 334 973 45.2% 20.1% Accounts Receivable 77 86 90 116 100 7.5% 12.1% Inventories 146 182 248 339 351 21.2% 19.4% Other Current Assets 140 137 173 175 219 11.0% 22.0%

Curr Liabilities 430 471 549 717 922 18.1% 12.8% STD & Curr Port LT Debt 12 3 2 56 81 40.0% 1.2% Accounts Payable 37 44 57 75 83 15.0% 13.9% Income Tax Payable 40 15 31 16 44 3.3% 8.5% Other Current Liabilities 340 409 459 570 714 18.3% 16.0% Cash and Liabilities Dec '08 Dec '09 Dec '10 Dec '11 Dec '12 Dec '13 Cash and Short Term Investments 150.8 150.8 190.6 258.8 333.5 973.0 Total Debt 250 178 204 488 931 21.5% 11.1% Share Repurchase 138.9 74.6 160.0 321.6 556.7 306.4 Total Assets 1,146 1,232 1,446 1,704 2,474 17.1% 10.6% Dividends 50.7 48.7 53.7 85.5 135.1 123.1 Total Liabilities 787 745 886 1,283 1,922 16.9% 11.2% Debt Servicing 187.6 321.7 505.5 894.2 1,163.3 344.0 Shrhldrs Equity 359 487 560 421 551 17.9% 8.8% Net Change in Reporting Period Cash (FX adjusted) 36.6 0.0 39.7 68.2 74.8 639.4 BVPS 2.984 4.136 4.838 3.936 5.454 22.6% Cash Flow Increases/Decreases 222.7 225.6 333.7 450.1 489.2 662.2 Cash Received (Paid) from Debt Activity 69.7 109.7 78.5 14.3 262.8 419.1 Dividends Paid 50.7 48.7 53.7 85.5 135.1 123.1 Cash Received (Paid) from Change in Equity 119.4 66.8 144.7 299.4 545.4 305.5

Cash Flow Statement Annual (M) Industry Metrics

Dec '10 Dec '11 Dec '12 Dec '13 LTM 10Y Trend 5Y CAGR 10Y CAGR Net Income 290.5 412.6 477.2 527.5 483.3 19.0% 30.5% Deprec & Amort 68.6 71.9 74.4 84.7 85.1 11.7% 4.3% Other Funds 17.6 10.2 2.7 52.8 156.3 20.4% 13.0% Changes in Wk Cap 28.3 27.7 22.6 132.7 124.7 Operating Cash Flow 380.4 509.3 567.8 772.9 825.9 23.1% 23.4%

Cap Ex 68.1 90.4 121.5 147.0 180.6 Other Investing, Total 1.0 1.7 3.5 3.9 Investing Cash Flow 69.1 92.1 125.0 150.8 187.7 Free Cash Flow 312.3 418.9 446.3 625.9 645.3 27.7% 22.7% Industry Metrics data is only available for certain companies in the following FCF/Share 2.508 3.356 3.786 5.825 6.403 33.0% 22.6% industries: Airlines, Hotel and Gaming, Metals & Mining, Oil & Gas, FCF Yield (%) 7.3 6.5 11.5 7.4 10.6% Pharmaceuticals, and Retail. % of Net Income 107.5 101.5 93.5 118.7 133.5 7.3% 6.0%

Cash Divs Pd 53.7 85.5 135.1 123.1 122.6 Change in Capital Stock 144.7 299.4 545.4 305.5 836.5 Iss/Red Debt 72.5 19.6 279.5 443.7 1,058.4 Financing Cash Flow 254.5 337.8 371.2 30.7 2.1

Net Change in Cash 39.7 68.2 74.8 639.4 539.4 22.1%