Exhibit 2 - Income Statements for the Wm. Wrigley Jr.

Company

Year Ended Decemb

(in thousands, except per-share amounts)
Earnings
Net Sales

2001
$

Cost of Sales
Gross Profit

2,429,646
997,054
1,432,592

Selling, general & administrative expenses

Operating Income
Investment Income

919,236
513,356
18,553

Other Expense
Earnings before income taxes

(4,543)
527,366

Income taxes
Net Earnings

164,380
362,986

Per share amounts

Net Earnings per share of common stock
Dividends paid per share of common stock

$
$

1.61
0.745

Earnings Growth
Sales Growth
CAGR of Earnings

10.3%
13.2%
8.5%

Operating Income/sales

14.9%

Year Ended December 31

2000
$

2,145,706

1999
2,061,602

904,266
1,241,440

904,183
1,157,419

778,197
463,243
19,185

721,813
435,606
17,636

(3,116)
479,312

(8,812)
444,430

150,370
328,942

136,247
308,183

0.70

$
$

1.33
0.66

6.7%
4.1%

15.3%

14.9%

Exhibit 3 - Consolidated Balance Sheets for the Wm. Wrigley Jr. Company
(in thousands of dollars)
ASSETS
Current assets
Cash and equivalents
Short-term investments, at amortized cost
Accounts receivable
Inventories
- Finished Goods
- Raw materials and supplies
Other Current assets
Deferred income taxes - current
Total Current Assets

2001

75,693
203,288

46,896
14,846
913,843

Marketable equity securities, at fair value

Deferred charges and other assets
Deferred income taxes - noncurrent
Property, plant, and equipment (at cost)

25,300
115,745
26,381

Land
Buildings and building equipment
Machinery and equipment
Less accumulated depreciation

39,933
359,109
857,044
571,717

Net property, plant and equipment

TOTAL ASSETS
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable
Accrued expenses
Dividends payable
Income and other taxes payable
Deferred Income taxes - current
Total Current Liabilities
Deferred income taxes - noncurrent
Other non-current liabilities
Common stock
Class B convertible stock
Additional paid-in-capital
Retained earnings
Treasury stock
Accumulated other comprehensive income

307,785
25,450
239,885
278,981

684,379
1,765,648

91,225
128,406
42,711
68,437
1,455
332,234
43,206
113,921
12,646
2,850
1,153
1,684,337
(289,799)
(134,900)

Total stockholders' equity

LIABILITIES AND STOCKHOLDERS' EQUITY

1,276,287
1,765,648

Company
2000

300,599
29,301
191,570
253,291
64,676
188,615

39,728
14,226
828,715
28,535
83,713
26,743
39,125
344,457
756,050
532,598

607,034
1,574,740

73,129
113,779
39,467
60,976
856
288,207
40,144
113,489
12,558
2,938
346
1,492,547
(256,478)
(119,014)

1,132,897
1,574,737

Exhibit 5 - Financial Characteristics of Major Confectionary Firms

Company Names
Cadbury Scheppes plc
Hershey Foods Corp
Kraft Foods
Tootise Roll Industries Inc.
Wm. Wrigley Jr. CO.
S&P 500 Composite
Wm. Wrigley Jr. CO. (after)

Company Names
Cadbury Scheppes plc
Hershey Foods Corp
Kraft Foods
Tootise Roll Industries Inc.
Wm. Wrigley Jr. CO.
S&P 500 Composite

Recent Price
26.66
65.45
38.82
31.17
56.37
1,148.08
61.53

Beta

Common
Shares
Outstanding
(millions)
502.5
136.63
1735
51.66
232.44
232.44

EPS
0.60
0.60
nmf
0.65
0.75
1.00

1.39
2.74
1.17
1.30
1.61
18.78

Market Value
of Equity
(millions)

Book Value of
Equity
(millions)

Total LT Debt
(millions)

13397
8942
67353
1610
13103

5264
2785
39920
509
1276

2264
869
8548
8
0

11303

1276

3000

Price/Earnings Cash Dividend

15.2
20.4
18.7
24
29.3
40.55

0.67
1.16
0.26
0.28
0.75

Dividend
Payout
44.00%
41.00%
12.00%
22.00%
46.00%

LT Debt/(LT
Debt + Book
Value of
Equity)
30.07%
23.78%
17.64%
1.55%
0.00%
18.23%
70.16%

Dividend Yield
2.50%
2.00%
1.50%
0.90%
1.50%

LT Debt/(LT
Debt + Mkt
Value of
Equity)
14.46%
8.86%
11.26%
0.49%
0.00%
8.76%
20.97%
Interest
Coverage
Before Tax
4,6x
11,1x
3,4x
nmf
nmf

LT Debt/Book
LT Debt/Mkt
Value of Equity Value of Equity
43.01%
31.20%
21.41%
1.57%
0.00%
24.27%
235.11%
Compound
Growth of EPS
Past 5 Yrs
6.50%
6.50%
nmf
12.50%
9%
-49.57%

16.90%
9.72%
12.69%
0.50%
0.00%
9.94%
26.54%
Firm
Value/EBITDA
10.3
11.4
10.1
14.6
22.6

79.03%

Exhibit 6 - Key Industrial Financial Ratios by Credit Rating

AAA
EBIT Interest Coverage (x)
Funds from operations/total debt (%)
Free operating cash flow/total debt (%)
Return on capital (%)
Operating income/sales (%)
Long-term debt/capital (%)
Total debt/capital, incl. Short-term debt (%)

23.4
214.2
156.6
35.0
23.4
-1.1
5.0

Investment Grade
AA
13.3
65.7
33.6
26.6
24.0
21.1
35.9

nvestment Grade
A
6.3
42.2
22.3
18.1
18.1
33.8
42.6

BBB
3.9
30.6
12.8
13.1
15.5
40.3
47.0

Non Investment Grade

BB
B
2.2
1.0
19.7
10.4
7.3
1.5
11.5
8.0
15.4
14.7
53.6
72.6
57.7
75.1

Wrigley
after

21.1%
63%

Exhibit 7 - Capital Market Conditions as of June 7, 2002

US Treasury Obligations

Yield

3 mos
6 mos
1 yr
2 yr
3 yr
5 yr
7 yr
10 yr
20 yr

1.670%
1.710%
2.310%
3.160%
3.660%
4.090%
4.520%
4.860%
5.650%

Corporate Debt Obligations (10 year)

AAA
AA
A
BBB
BB
B

Yield

Other Instrumens
U.S. Federal Reserve Bank discount rate
LIBOR (1 month)
Certificate of deposit (6 month)
Prime Interest rates

Yield

9.307%
9.786%
10.083%
10.894%
12.753%
14.663%

1.730%
1.840%
1.980%
4.750%

Exhibit 7 - EPS versus EBIT Analysis

Assumptions
Interest rate on debt
Pre-recap debt
Tax Rate
Before recapitalization
Interest expense
Taxable income
Taxes
Net income
Shares outstanding
Earnings per share

Before recapitalization

Worst case

Most likely

Best case

Assumptions
Interest rate on debt
Pre-recap debt
Tax Rate
Before recapitalization
Operating income (EBIT)
Interest expense
Taxable income
Taxes
Net income
Shares outstanding
Earnings per share

After recapitalization

Worst case

Most likely

Best case

1.Impact on Share Value

Tax Rate
Debt
Shares
APV
Recent Price

2. Impact on Debt Rating

40%
3000 mio
232.44 mio
1,200
5.16 per share
$
56.37
$
61.53