FAM

MID TERM REVIEW

BUSINESS : A GROUP OF ASSETS USED BY SPECIFIC PERSONS TO GENERATE INCOM PEOPLE + MONEY + ASSETS = BUSINESS ASSET =

ANYTHING CAPABLE OF OWNERSHIP THAT CAN BE MEASURED WIT

CURRENT ASSETS = CASH & CASH EQUIVALENTS PLUS ALL OTHER ASSETS THAT WOULD CONVERTED INTO CASH WITHIN ONE YEAR

NON CURRENT ASSETS = FIXED ASSETS TANGIBLE, PURCHASED FOR OWN USE AND EXPECTED TO LAST MO INTANGIBLE ASSETS LEGAL RIGHTS WITH COMMERCIAL VALUE LIABILITIES = FINANCING FROM NON SHAREHOLDER SOURCES EQUITY = FINANCING FROM SHAREHOLDERS = OWNERS' CAPITAL = SHAREHOLDER FUNDS = OWNERS' EQUITY = NET ASSETS = NET CAPITAL EMPLOYED

STATEMENT OF FINANCIAL POSITION = BALANCE SHEET IN A BALANCE SHEET : TOTAL ASSETS = TOTAL FINANCING TOTAL ASSETS = FIXED ASSETS + CURRENT ASSETS = TOTAL FINAN FIXED ASSETS + CURRENT ASSETS = EQUITY + LIABILITIES FIXED ASSETS + CURRENT ASSETS - LIABILITIES = EQUITY

STATEMENT OF INCOME (COMPREHENSIVE INCOME) = PROFIT & LOSS A/C SHOWS PROFIT OR LOSS DURING AN ACCOUNTING PERIOD PROFIT = REVENUE - COSTS = SURPLUS REVENUE

REVENUE - COST OF SALES = GROSS PROFIT GROSS PROFIT - OPERATING COSTS = OPERATING PROFIT OPERATING PROFIT - ALL COSTS EXCEPT INTEREST, TAX, DEPRECIATION & EBITDA (EARNINGS BEFORE EBITDA - DEPRECIATION & AMORTISATION = EBIT (EARNINGS BEFORE I EBIT - NET FINANCE CHARGES (EG INTEREST ) = NPBT = NET PROFIT BEFOR NPBT - TAX = NPAT = NET PROFIT AFTER = PROFIT FOR THE YEAR = BOTTOM LINE = PROFIT ATTRIBUTABLE = PROFIT AVAILABLE FOR

FINANCIAL ANALYSIS IS CONDUCTED TO UNDERSTAND THE FINANCIAL HEALTH O FIVE AREAS OF ANALYSIS 1 RATE OF PROFITABILITY 2 LIQUIDITY 3 WORKING CAPITAL 4 DEBT MANAGEMENT 5 SHAREHOLDER RETURNS COLLECTING DATA FOR RATIOS FROM INCOME STATEMENT: 1 REVENUE 2010 5,406

MARGINS & RETURNS FROM ABILITY TO PAY CURRENT LI SUFFICIENCY OF LONG TER SAFE BORROWING RETURN ON SHAREHOLDER

2 3 4 5 6 7

OPERATING PROFIT PROFIT AFTER TAX NET INTEREST COST DIVIDENDS EPS (RM PER SHARE) CURRENT PRICE PER SHARE

1,628 1,178 31 1,353 1.515 2.50

FROM THE BALANCE SHEET 1 TOTAL ASSETS 2 CURRENT ASSETS 3 ALL INVENTORIES 4 ALL DEBTORS = ACCS RECBLE 5 CASH & CASH EQUIVALENTS 6 7 8 9 CURRENT LIABILITIES TOTAL LIABILITIES EQUITY BALANCING CHECK

5,137 1,331 43 437 851 2,272 3,790 1,347 1,077

10 TOTAL BORROWING

THE PROFITABILTY RATIOS % 1 OPERATING PROFIT MARGIN = OP / R % 2 NET PROFIT MARGIN = NPAT / R RM % % 3 ASSET UTILISATION = R / TA 4 OPERATING PROFIT RETURNS = OP / TA 5 NET PROFIT RETURNS = NPAT / TA

THE LIQUIDITY RATIOS % 1 CASH RATIO = CCE / CL MUST BE > 30% % 2 ACCOUNTS RECEIVABLE RATIO = AR / CL % 3 ACID TEST RATIO = (CA - INVENTORIES) / CL WORKING CAPITAL RATIO RM 1 CURRENT RATIO = CA / CL

IF > 1 , THERE IS SUFFICIEN IF < 1, WORKING CAPITAL I INSUFFICIENT L TERM FINAN

DEBT MANAGEMENT % 1 GEARING OR FINANCIAL LEVERAGE = TOTAL BORROWINGS / EQUI % 2 ASSET FINANCING = TOTAL BORROWING / TA TIMES 3 INTEREST COVER = OP / INTEREST COST

SHAREHOLDER RETURNS % 1 RETURN ON EQUITY (ROE) = NPAT / EQUITY % 2 DIVIDEND PAYOUT RATIO = DIVIDENDS / NPAT TIMES 3 PRICE EARNINGS RATIO = PRICE PER SHARE / EPS COMPARE WITH A SIMILAR COMPANY OR SECTOR P/E RATIO IF AV

NS TO GENERATE INCOME.

T CAN BE MEASURED WITH MONEY

HER ASSETS THAT WOULD NORMALLY BE

D EXPECTED TO LAST MORE THAN ONE YEAR

ERS' CAPITAL

T ASSETS = TOTAL FINANCING TY + LIABILITIES ITIES = EQUITY

PROFIT & LOSS A/C TING PERIOD

ROSS PROFIT PERATING PROFIT ST, TAX, DEPRECIATION & AMORTISATION ITDA (EARNINGS BEFORE ITDA)

IT (EARNINGS BEFORE I & T )

PBT = NET PROFIT BEFORE TAX PAT = NET PROFIT AFTER TAX = PROFIT FOR THE YEAR = BOTTOM LINE = PROFIT ATTRIBUTABLE TO SHREHOLDERS = PROFIT AVAILABLE FOR DISTRIBUTION TO SHAREHOLDERS

THE FINANCIAL HEALTH OF A BUSINESS

ARGINS & RETURNS FROM THE BUSINESS BILITY TO PAY CURRENT LIABILITIES ON TIME FFICIENCY OF LONG TERM FINANCE IN THE BUSINESS FE BORROWING TURN ON SHAREHOLDER INVESTMENT

2009 4,910

1,392 1,000 27 1,376 1.287 2.20

4,732 874 13 420 441 2,026 3,211 1,521 922

UST BE > 30% CASH RATIO + AR RATIO > 1 SHOULD BE > 1

> 1 , THERE IS SUFFICIENT LONG TERM FINANCE < 1, WORKING CAPITAL IS NEGATIVE INDICATING SUFFICIENT L TERM FINANCE

AL BORROWINGS / EQUITY 100% - 200% IS NORMAL 35% TO 65% IS CONSIDERED NORMAL MUST BE > 10 TIMES

HIGHER IS BETTER = HIGHER RETURNS TO SHAREHOLDERS USUALLY SHOULD BE AROUN 50% OR LESS RE / EPS HIGHER IS BETTER = HIGHER INVESTOR CONFIDENCE SECTOR P/E RATIO IF AVAILABLE