LOGO Financial Management Siam Makro Siam university Instructor By Dr. Sahanon Tungbenchasirikul.
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Transcript of LOGO Financial Management Siam Makro Siam university Instructor By Dr. Sahanon Tungbenchasirikul.
LOGO
Financial Management Financial Management
Siam Makro
Second Presentation
Siam university
Instructor By
Dr. Sahanon Tungbenchasirikul
SIAM MAKRO PCL
Company Makro
BySocheat Soeun
Company Makro
Contents
Financial Statement Projection Assumption 2012 - 2014
Proposed the company future investment Plan 2013-2014
11
99
33
77
88
44 Profit/loses Statement projections 2012 - 2013
Balance Sheet Projections 2012- 2013
Balance Sheet Projections 2012 - 2013
Future Capital Statement 2013– 2014 (i.e LEP)
Repayment/Remuneration
55
66
Summaries the Company Investment Plan 2010--2012
1212
22
1010
1111
Future Capital Statement ( DSC)
Debt instrument sources of funds
Equity instrument sources of funds
Cash Flow Statement Projections 2012 - 2013
Summaries the company invest-ment plan 2010 - 20122010 20122011
Investment in Logistics innovatin systems Key project Investments Three financial Statements Technology information development Business Support Requirements Financial Analysis Sale/demand forecasts ( revenue increased
10 per year).R&D Logistics support system investments
Investment in Logistics innovatin systems Key project Investments Three financial Statements Technology information development Business Support Requirements Financial Analysis Sale/demand forecasts ( revenue increased
10 per year).R&D Logistics support system investments
Siam Makro Company
InvestmentInvestmentInvestmentInvestment InvestmentInvestment
Original Style Store
Original Style Store
Medium-Sized Horeca Store
Small-Sized Horeca Store
Small-Sized Horeca Store
Gov
ernm
ent
Gov
ernm
ent
Summaries the Company Investment Plan 2010--2012
InvestmentInvestment InvestmentInvestment InvestmentInvestment Operates the membership
based Cash & Carry wholesaler (trade centres).
Operates the membership based Cash & Carry wholesaler (trade centres).
Operates the membership based Cash & Carry wholesaler (trade centres).
20102010 2011 2012
The Company is well aware that obstacles and uncontrollable factors are major challenges
Siam Food Services Limited 99.99%
and Vina Siam Food Services 100%
To determine the Company's strategy and business plans of each business including investment, human resources, performance appraisals and remuneration.
To prepare budgets and investment projects of each business and submit to the Board of Directors for approval.
To follow and monitor the operating performance and the progress of investment projects in each business together with performance report, problems and obstacles encountered and possible solutions to the Board of Directors.
To follow and monitor developments in management and risk management system of each business.
To follow and monitor human resource development, management promotion and rotation in each business according to the Company's plans.
Proposed the company future in-vestment Plan 2013-2014
20142013 Investment Investment
The management believes that Makro’s brand, IP, IT system and management’s expertise can be leveraged throughout neighbouring countries such as Myanmar, Vietnam, Laos, and Cambodia to reach a total of 19 international branches by 2023 5% per year in 2013
The management believes that the ASEAN Economic Community (“AEC”) will play an important role in promoting and liberalizing trading among the ASEAN countries.
Revenue per Store 7% per year in 2014
Why do companies invest?Importance of remembering investment as the purchase of productive capacity NOT buying stocks and shares or investing in a bank!
Buy equipment/machinery or build new plant to: Increase capacity (amount that can be produced) which means: Demand can be met and this generates sales revenue Increased efficiency and productivity
Company Logo
Financial Statement Projection Assumption 2012 - 2013
Lecture Assumptions given: Investment Projects in 2013-2014 (NPV>0 and good IRR) Common-Size Analysis assumption 10% constant revenue growth for year 2013-
2014. In Balance Sheet, inventory, and account receivable increase 10%.
Our additional Assumptions: Profit & Loss Statement• Selling and services increased by 10%.• Share of losses (profits) of investments increased by 10%.• Retained Earning increased by 10%• Common Stock increased by 10%
Balance Sheet Statement• Account receivable, Inventory, Account Payable are increased by 10 %• Long-term Investment in Fixed Assets increased by 10%
Cash Flow Statement• Cash flow from operation increased by 10 %• Investing Cash Flow increased by 10%• Financial Cash Flow increase by 10%
Investment Projects in 2013 -2014
Company siam makro
Expected After –tax Net Cash Flow
Our Group is interested in two investment projects in 2 years (2013-2014). We hire a financial advisor to reckon net cash flow (CF) (i.e. total cash inflow–total cost) and NPV and good IRR of both investment projects. Assumed that discounted rate or cost of capital of project 1 and project 2 equals 10%.
Expected After-Tax Net Cash Flow
Year Project 1 Project 2
0 -1000 -1000
1 500 600
2 600 500
Assumption of Investment Projects in 2013-2014
Project 1 Years0 1 2
Expected Net Cash Flow -1000 500 600Discount Factor (10%) 1.00 1.10 1.21Discount Net Cash Flow -1,000 454.5 495.9Net Present Value(NPV 49.6
Internal rate of return 6%
6.499.4955.4541000
)1.01(
200
)1.01(
1001000
0IRR)(1
CFNPV
(1)0IRR)(1
CF....
IRR)(1
CF
IRR)(1
CF
)(1
CFNPV
21
n
0tt
t
nn
22
11
00
NPV
NPV
IRR
Assumption of Investment Projects in 2013-2014
Project 2 Years0 1 2
Expected Net Cash Flow -1000 600 500Discount Factor (10%) 1.00 1.10 1.21Discount Net Cash Flow -1000 545 413Net Present Value(NPV 41.3
7%
3.414135.5451000
)1.01(
500
)1.01(
6001000
0IRR)(1
CFNPV
(1)0IRR)(1
CF....
IRR)(1
CF
IRR)(1
CF
)(1
CFNPV
21
n
0tt
t
nn
22
11
00
NPV
NPV
IRR
Profit/Loss Statement Projections 2012 - 2013
2011 2012 2013Total Revenue 97,154 112,140 126,171Cost of goods sold -89,402 -102,760 -115,081Gross Profit 7,751 9,380 11,090Selling & Admin Exp. -6,076 -7,419 -8,632Earning before interest tax(EBIT) 4,191 4,777 5,599Interest Expenses -63 -85 -82Other income/exp. 2,516 2,816 3,142Earning before tax (EBT) 4,128 4,692 5,517Corporate tax -1,332 -1,136 -1,196After-tax net profit (loss) 2,796 3,556 4,321Minority interest 0 0 0Equity earning from affiliates 0 0 0Extra items -192 0 0Net profit (loss) 2,604 3,556 4,321
Not
e: R
even
ue
and
Cog
s in
crea
se 1
0% i
n 2
012
& 2
013
c
omp
ared
to
2011
(MB) (MB) (MB)
Balance Sheet Projections 2012 -2013 (5)
2011 2012 2013
ASSETS
Current Assets
Cash and cash equivalents 4,060,060 4,099,110 6,055,829Trade accounts receivable, net 19,733 183,421 234,940Amounts due from related parties and
short-term loans to related parties 37,423 40 -Inventories, net 7,585,264 7,884,890 7,275,508
Purchase discounts receivable 459,317 459,317 652,563
Current portion of leasehold right 34,127 34,127 32,916Other current assets, net 529,407 537,322 435,787Total Current Assets 12,725,331 13,198,227 14,687,543
(MB) (MB) (MB)
Balance Sheet Projections 2012 -2013 (5)
2011 2012 2013Non-Current Assets
Investments in subsidiaries 10 299,771 - -Property, plant and equipment, net 10 17,487,145 17,502,005 16,499,150Investment property, net 112,866 112,866 112,866Leasehold right, net 551,082 551,082 529,432Goodwill, net - 167,384 167,384Other intangible assets, net 10 269,568 281,522 69,529Deferred tax assets 197,396 203,350 206,007Other non-current assets 13,938 16,693 18,658Total Non-Current Assets 18,931,766 18,834,902 17,603,026
Total Assets 31,657,097 32,033,129 32,290,569
Not
e: T
otal
Ass
ets
in 2
012
& 2
013
incr
ease
by
10%
com
par
ed t
o 20
11(MB) (MB) (MB)
Balance Sheet Projections 2012- 2013 (6)
2011 2012 2013
LIABILITIES AND SHAREHOLDERS’ EQUITYCurrent LiabilitiesShort-term loans from financial institutions 2,000,000 2,126,945 2,099,787Trade accounts payableThird parties 14,247,082 14,314,366 15,728,455Related parties 10 261,074 248,163 -Total trade accounts payable 14,508,156 14,562,529 15,728,455Amounts due to related parties 10 45,914 45,936 88,191Other current liabilitiesOther accounts payable 726,365 737,359 907,922Income tax payable 238,284 241,634 521,676Accrued expenses 1,378,009 1,394,411 1,339,631Current portion of liabilities under financial lease, net 10 29,742 29,742 23,989Others 261,409 262,430 291,584Total Current Liabilities 19,187,879 19,400,986 21,001,235
Shareholders’ Equity
(MB) (MB) (MB)
2011 2012 2013Shareholders’ EquityShare capitalAuthorised share capitalOrdinary shares, 240,000,000 shares of par Baht 10 each 2,400,000 2,400,000 2,400,000
Issued and paid-up share capitalOrdinary shares, 240,000,000 shares of paid-up Baht 10 each 2,400,000 2,400,000 2,400,000Premium on share capital 3,290,152 3,290,152 3,290,152Retained earningsAppropriatedLegal reserve 240,000 240,000 240,000Unappropriated 4,932,300 6,031,831 6,185,431Other components of equity 141 - 1,562Total Shareholders’ Equity 10,862,593 11,961,983 12,117,145
Total Liabilities and Shareholders’ Equity 10,862,593 11,961,983 12,117,145
Balance Sheet Projections 2012- 2013 (6)N
ote:
Tot
al l
iab
iliti
es a
nd
Tot
al E
qu
ity
in 2
012
& 2
013
incr
ease
10%
co
mp
ared
to
2011
(MB) (MB) (MB)
Cash Flow Statement Projections 2012 - 2013
2011 2012 2013Operating Cash Flow 186,200 2,090,956 2,140,539Investing Cash Flow (2,342,471) 12,305,846 (1,945,095)Financing Cash Flow (1,768,987) (1,741,829) (2,078,885)
Net decrease in cash and cash equivalents (1,970,919) (1,956,719) (3,837,780)Cash and cash equivalents, opening balance 6,030,979 6,055,829 6,288,326Cash and cash equivalents, closing balance 4,060,060 4,099,110 2,450,546
Not
e:
O
per
atin
g,
Inve
stin
g an
d
Fin
anci
ng
Cas
h F
low
in 2
012
& 2
013
of e
ach
in
crea
se 1
0%
com
par
ed t
o 20
11
Future Capital Statement 2013 – 2014(i.e LEP)
Text 2 Text 3 Text 4
2013 2014Liabilities Profile 173 173Equity Profile 180 180Total 100% 100%
Future Capital Structure 2012 -2013 (Debt Service Capital)
2013P 2014P
D/E RATIO 0.2 : 1 0.2 : 1
DSCR(Debt-Service Coverage Ratio)
0.67 : 1 0.67 : 1
= 0.2
(Current Portion of Long-Term Debt + Long-Term Debt) / Total Equity= .xx (2,156.70+169.1)/12,632.10 = 0.2
2013P (MB)
2014 P(MB)
Debt Short Term 2.13 2.16
Debt Long Term (loan from financial institutions ) 2,099,787 2,599,787
Note: Debt Long Term Loan for 2013 & 2014i increased by 10% compared to 2012
Debt Instruments Source of Fund 2013-2014
Note Long-Term Debt is the debt due more than 12 months in the future. The debt can be owed to banks or bondholders. Some companies issue bonds to investors and pay interest on the bonds.The interest paid on companies debt is reflected in the income statement as interest �expense. If a company has too much debt and it cannot serve the interest payment on the debt or repay the matured debt, the company risks bankruptcy. Peter Lynch famously said: A company that does not have debt cannot go bankrupt.� �A company's long term debt may have different dates of maturity and interest rates, depending on the terms.
Equity instrument sources of funds 2013- 2014
2013P(MB)
2014P(MB)
Equity 12,117.4 12,632.1
Common Stock 2400 4800 Preferred Stock
0.000 00.000
Retained Earning 6,425.4 7,525.5
Note: Common stock is listed on the Balance Sheet at the par value of the total shares outstanding of a company. The par value of common stocks is meaningless. It is usually set at an absurdly low number.
Repayments/Remunerations for 2013-2014
Detail 2013(MB)
2014(MB)
1. Debt Repayment -225 -202
2. Interest Payment -77 -85
3. Dividend Payment -2,838 -3,122
Note: Repayments for 2013 & 2014 increase by 10% compared to 2012
Group Makro