FINANCIAL MANAGEMENT (PFN) | PRESENTATION

1. Risk & Return Relationship Prepared for: Madam Fairuz Ahamad Ariff Hazim Bin Azhar BGJ230211268 Muhammad Ridzuan Bin Mohamed Salleh BGJ230211283 Syafiq Zuhairi Bin Dahalan BGJ230210226 Muhammad Harris Danniel Bin Mohd Puji BGJ230210246 Ameer Farhan Hafizi Bin Ramlan BGJ230210197 GROUP MEMBERS:

2. PRESENTATION INTRODUCTION The purpose of this project is to analyze the relationship between risk and return for three major Malaysian companies: Berjaya Corporation, Sime Darby, and Hong Leong Industries. Each company operates in different industries, offering varying levels of risk and return. The study explores how these companies balance risk and return and their impact on Malaysia’s economy.

3. Berjaya Corporation Background: Established in 1967, Berjaya Corporation has expanded from bicycle manufacturing to various industries like hospitality and property. Financial Performance (2019-2023): Opening Price: RM 0.263 (2019) to RM 0.269 (2024) Dividends: RM 0.04 (2020) and RM 0.06 (2023) HPR (Holding Period Return): Highest HPR: 29.44% (2019) Lowest HPR: -11.31% (2020) Average Return: 8.26%

4. YEAR OPENING PRICE (RM) CLOSING PRICE (RM) CURRENT INCOME (DIVIDEND)(RM) 2019 0.263 0.227 - 2020 0.227 0.179 0.04 2021 0.179 0.236 - 2022 0.236 0.283 - 2023 0.283 0.269 0.06 2024 0.269 - - OPENING, CLOSING & DIVIDEND:

5. YEARS CALCULATION HPR   2019 HPR 2019: 0.52 + (9.90 – 8.05) × 100% 8.05 = 29.44%     2020 HPR 2020: 0.42 + (8.36 – 9.90 × 100%) 9.90 = -11.31%       2021 HPR 2021: 0.52 + (8.80 – 8.36 × 100%) 8.36 = 11.48%     2022 HPR 2022: 0.5 + (8.82 – 8.80) × 100% 8.80 = 5.91%     2023 HPR 2023: 0.57 + (8.76 – 8.82) × 100% 8.82 = 5.78%   HPR CALCULATION 2019 - 2023

6.       AVERAGE RETURN   Average Return (AR) = ∑ HPR ---------- N AR: 29.44 + (-11.31) + 11.48 + 5.91 + 5.78 5 =8.26%       VARIANCE   Variance = O2 = ∑ (R – AR) 2 (n – 1)   (29.44 – 8.26) 2 + (-11.31 – 8.26) 2 + (11.48 – 8.26) 2 + (5.91 – 8.26) 2 + (5.78 – 8.26) 2 (5 - 1) =213.40     STANDARD DEVIATION   : = 14.61       COEFFICIENT (CV)   Coefficient (CV) = O / AR : = 1.77         AVERAGE RETURN   Average Return (AR) = ∑ HPR ---------- N AR: 29.44 + (-11.31) + 11.48 + 5.91 + 5.78 5 =8.26%       VARIANCE   Variance = O2 = ∑ (R – AR) 2 (n – 1)   (29.44 – 8.26) 2 + (-11.31 – 8.26) 2 + (11.48 – 8.26) 2 + (5.91 – 8.26) 2 + (5.78 – 8.26) 2 (5 - 1) =213.40     STANDARD DEVIATION     COEFFICIENT (CV) AVERAGE, VARIANCE, SD, COEFFECIENT CALCULATION

7. SIME DARBY Background: Established in 1910, Sime Darby is a leader in the plantation and automotive sectors.. Financial Performance (2019-2024): Opening Price: RM 2.38 (2019) to RM 2.34 (2024) Dividends: RM 0.10 (2019), RM 0.13 (2023) HPR (Holding Period Return): Highest HPR: 10.76% (2023) Lowest HPR: -2.52% (2019) Average Return: 4.2%

8. YEAR OPENING PRICE (RM) CLOSING PRICE (RM) CURRENT INCOME (DIVIDEND)(RM) 2019 2.380 2.220 0.10 2020 2.220 2.281 0.10 2021 2.281 2.320 0.15 2022 2.320 2.230 0.115 2023 2.230 2.340 0.13 2024 2.340 - - OPENING, CLOSING & DIVIDEND:

9. YEARS CALCULATION HPR   2019 HPR 2019: 0.1 + (2.22 – 2.38) × 100% 2.83 = -2.52%     2020 HPR 2020: 0.1 + (2.281 – 2.22 × 100%) 2.22 = 7.25%     2021 HPR 2021: 0.15 + (2.23 – 2.281 × 100%) 2.281 = 4.34%     2022 HPR 2022: 0.115 + (2.23 – 2.32) × 100% 2.32 = 1.08%     2023 HPR 2023: 0.13 + (2.34 – 2.23) × 100% 2.23 = 10.76%   HPR CALCULATION 2019 - 2023

10.         AVERAGE RETURN   Average Return (AR) = ∑ HPR ---------- N AR: -2.52% + 7.25% + 4.34% + 1.08% + 10.76% 5 =4.2%         VARIANCE   Variance = O2 = ∑ (R – AR) 2 (n – 1)   (-2.52 – 4.2) 2 + (7.25 – 4.2) 2 + (4.34 – 4.2) 2 + (1.08 – 4.2) 2 + (10.76 – 4.2) 2 (5 - 1) = 26.81%     STANDARD DEVIATION   : = 5.18%         COEFFICIENT (CV)   Coefficient (CV) = O / AR : = 1.23           AVERAGE RETURN   Average Return (AR) = ∑ HPR ---------- N AR: -2.52% + 7.25% + 4.34% + 1.08% + 10.76% 5 =4.2%         VARIANCE   Variance = O2 = ∑ (R – AR) 2 (n – 1)   (-2.52 – 4.2) 2 + (7.25 – 4.2) 2 + (4.34 – 4.2) 2 + (1.08 – 4.2) 2 + (10.76 – 4.2) 2 (5 - 1) = 26.81%     STANDARD DEVIATION       COEFFICIENT (CV) AVERAGE, VARIANCE, SD, COEFFECIENT CALCULATION

11. HONG LEONG Background: Hong Leong Industries focuses on automotive and building materials, part of the larger Hong Leong Group. Financial Performance (2019-2024): Opening Price: RM 8.44 (2019) to RM 8.76 (2024) Dividends: RM 0.42 (2020), RM 0.57 (2023) HPR (Holding Period Return): Highest HPR: 29.44% (2019) Lowest HPR: -11.31% (2020) Average Return: 8.26%

12. YEAR OPENING PRICE (RM) CLOSING PRICE (RM) CURRENT INCOME (DIVIDEND)(RM) 2019 8.44 9.90 0.52 2020 9.90 8.36 0.42 2021 8.36 8.80 0.52 2022 8.80 8.82 0.55 2023 8.82 8.76 0.57 2024 8.76 - - OPENING, CLOSING & DIVIDEND:

13. YEARS CALCULATION HPR   2019 HPR 2019: 0.52 + (9.90 – 8.05) × 100% 8.05 = 29.44%     2020 HPR 2020: 0.42 + (8.36 – 9.90 × 100%) 9.90 = -11.31%     2021 HPR 2021: 0.52 + (8.80 – 8.36 × 100%) 8.36 = 11.48%     2022 HPR 2022: 0.5 + (8.82 – 8.80) × 100% 8.80 = 5.91%     2023 HPR 2023: 0.57 + (8.76 – 8.82) × 100% 8.82 = 5.78%   HPR CALCULATION 2019 - 2023

14.         AVERAGE RETURN   Average Return (AR) = ∑ HPR ---------- N AR: -2.52% + 7.25% + 4.34% + 1.08% + 10.76% 5 =4.2%         VARIANCE   Variance = O2 = ∑ (R – AR) 2 (n – 1)   (-2.52 – 4.2) 2 + (7.25 – 4.2) 2 + (4.34 – 4.2) 2 + (1.08 – 4.2) 2 + (10.76 – 4.2) 2 (5 - 1) = 26.81%     STANDARD DEVIATION   : = 5.18%         COEFFICIENT (CV)   Coefficient (CV) = O / AR : = 1.23           AVERAGE RETURN   Average Return (AR) = ∑ HPR ---------- N AR: -2.52% + 7.25% + 4.34% + 1.08% + 10.76% 5 =4.2%         VARIANCE   Variance = O2 = ∑ (R – AR) 2 (n – 1)   (-2.52 – 4.2) 2 + (7.25 – 4.2) 2 + (4.34 – 4.2) 2 + (1.08 – 4.2) 2 + (10.76 – 4.2) 2 (5 - 1) = 26.81%     STANDARD DEVIATION       COEFFICIENT (CV)       AVERAGE RETURN   Average Return (AR) = ∑ HPR ---------- N AR: 29.44 + (-11.31) + 11.48 + 5.91 + 5.78 5 =8.26%         VARIANCE   Variance = O2 = ∑ (R – AR) 2 (n – 1)   (29.44 – 8.26) 2 + (-11.31 – 8.26) 2 + (11.48 – 8.26) 2 + (5.91 – 8.26) 2 + (5.78 – 8.26) 2 (5 - 1) =213.40     STANDARD DEVIATION   : = 14.61       COEFFICIENT (CV)   Coefficient (CV) = O / AR = 1.77         AVERAGE RETURN   Average Return (AR) = ∑ HPR ---------- N AR: 29.44 + (-11.31) + 11.48 + 5.91 + 5.78 5 =8.26%         VARIANCE   Variance = O2 = ∑ (R – AR) 2 (n – 1)   (29.44 – 8.26) 2 + (-11.31 – 8.26) 2 + (11.48 – 8.26) 2 + (5.91 – 8.26) 2 + (5.78 – 8.26) 2 (5 - 1) =213.40     STANDARD DEVIATION     COEFFICIENT (CV) AVERAGE, VARIANCE, SD, COEFFECIENT CALCULATION

15. RISK ANALYSIS Sime Darby Hong Leong Industries Berjaya Corporation Systematic Risks: Market risk, interest rate risk, purchasing power risk. Unsystematic Risks: Business risk, liquidity risk, default risk. Systematic Risks: Market risk, interest rate risk, purchasing power risk. Unsystematic Risks: Business risk, liquidity risk, default risk. Systematic Risks: Market risk, interest rate risk, purchasing power risk. Unsystematic Risks: Business risk, liquidity risk, default risk.

16. Conclusion Summary: Berjaya Corporation: High risk due to diversification into volatile sectors. Sime Darby: Balanced risk-return profile, safer investment due to diversification. Hong Leong Industries: Stable, but reliant on consumer demand. Investment Safety: Sime Darby is the safest investment, followed by Hong Leong Industries. Berjaya carries the highest risk.

17. Berjaya Corporation: High risk due to diversification into volatile sectors. Sime Darby: Balanced risk-return profile, safer investment due to diversification. Hong Leong Industries: Stable, but reliant on consumer demand. CONCLUSION & RECOMMANDATION Therefore, Sime Darby is the safest investment, followed by Hong Leong Industries . Berjaya carries the highest risk.

18. Thank You! For your attention