Alcon & MSC

Alcon

Alcon

• Receiving• Storage• Shipping • Automation• Systems• Workforce

MSC

MSC

• Call center• Receiving• Shipping• Mezzanine• Consolidation• Check/pack• Systems• Workforce

MSC Hourly Pay

• $11.22 per hour to start• Shift differential

Source: MSC Industrial Direct 2012 Annual Report

Source: MSC Industrial Direct 2012 Annual Report

28.3%17.5%

11.0%

Source: MSC Industrial Direct 2012 Annual Report

Things Companies REALLY Don’t Want You to Know!

• Customers• Item sale prices by customer• Item purchase price (volume discounts)• Manufacturers rebates• Freight discounts

Alcon MSC

Net Sales $10,281 $2,356

COGS $4,618 $1,278

Gross Profit $5,663 $1,078

Gross Profit % 55.1% 45.8%

Operating Expense $4,251 $666

Operating Expense % 41.3% 28.3%

Operating Income $1,465 $412

Operating Income % 14.2% 17.5%

Net Income After Taxes $259

Net Income % 11.0%

(In Millions, except percentages)

Operating Expense

Marketing & Sales -$2,462 23.9%

R & D -$975 9.5%

General & Admin -$510 5.0%

Other Income $49 -0.5%

Other Expense -$353 3.4%

Source: 2012 Annual Reports

Alcon MSC Walmart

Net Sales $10,281 $2,356 $446,950

COGS $4,618 $1,278 $335,127

Gross Profit $5,663 $1,078 $111,823

Gross Profit % 55.1% 45.8% 25.0%

Operating Expense $4,251 $666 $85,265

Operating Expense % 41.3% 28.3% 19.1%

Operating Income $1,465 $412 $26,558

Operating Income % 14.2% 17.5% 5.9%

Net Income After Taxes $259 $15,699

Net Income % 11.0% 3.5%

(In Millions, except percentages)

MSC

Source: 2012 Annual Report

Walmart

Novartis

Operating Income - 19.8%Net Income - 17.0%