BAT¶S CORPORATE PROFILE

` `

90 years of combined history since 1912 In November 3, 1999, the merger, Rothmans of Pall Mall (M) Berhad & Malaysian Tobacco Company Berhad Market leader of the Malaysian cigarette industry Rank amongst the top 15 companies on Bursa Malaysia Securities Berhad Manufactures and market high quality tobacco products Portfolio includes Dunhill, Kent, Pall Mall, Peter Stuyvesant, Benson & Hedges and Peritty¶s

` ` ` `

NESTLE MALAYSIA

NESTLE¶S CORPORATE PROFILE

‡ ‡ ‡ ‡ ‡ ‡

Established in Malaysia since 1912 Leading halal food manufacturer with over 300 halal products Employs over 4,000 people RM3.1 billion turnover in 2005 Public-listed on Bursa Malaysia 7 factories and 6 sales office

YEE LEE CORPORATION BERHAD / YLC

YEE LEE¶S CORPORATE PROFILE

‡ ‡ ‡ ‡ ‡

Began its core business as an edible oil repacker in Malaysia in 1968 Involved in various sector such as manufacturing, marketing & distribution of fast moving consumer products, plantation & eco-tourism. Products include food, bottled water, oral care, household cleaners and industrial products, several brands YLC listed on Bursa Malaysia in 1993 2280 shareholders

Spritzer Di tilled Drin ing W ter

ed E gle Coo ing Oil

ung E

u

i In t nt

oodle Sunglow Detergent Powder

It¶s all about MONEY!

FINANCIAL HIGHLIGTHS & ANALYSIS

Can I earn money? Profitability

PROFITABILITY

` `

2006 vs. 2005 ± Overview of BAT operating income 20% growth in profit before taxation compared to 2005

PROFITABILITY

`

Gross profit rate indicates profitability

50%

42%
40% 30%

41%

2006 20% 10% 0% Gross proft rate 2005

Can BAT paying its debts as they come due? Liquidity

SHORT-TERM LIQUIDITY

` ` `

Short-term investment with original maturities of 3 months Sufficient cash in hand and balances with licensed financial institutions Inventories - low cost and net realisable value

2.5

2.1
2 1.5 1 0.5 0 Current R ti

0.9

2006

2005

Will my money be ³safe´ in BAT? Credit Risk

LON -TERM CREDIT RISK (Debt Rat )

` `

The lower the debt ratio the better Percentage of assets financed by debt has decreased tremendously 27% as compared to 2005

100%

80%
80% 60% 40% 20% 0% Debt R ti

53%
2006

2005

Is BAT worth to invest?

INVESTIN

`

Earning per share up to 21% over 2005

Is BAT stable & reliable? Stability

STABILITY

` ` `

Revenue ± Modest growth trend Net Profit ± 20% of satisfied recovery in 2006 COGS ± Gradually growth from 2002 to 2006

Tr

d A alysis

R v N t Profit OGS
7

Y ar
Not : Usi g as as p riod

STABILITY

` ` `

Revenue ± Modest growth trend Net Profit ± 20% of satisfied recovery in 2006 COGS ± Gradually growth from 2002 to 2006

Prof t after tax up 21

(excluding non recurring item up to 8%)

OTHERS

` ` `

Sales of goods has accelerated growth of 34% as compared to 2005 Purchase of goods has significant decreased of 15% as compared to 2005 Launched productivity improvement programme ± ³Breakthrough´ Cost efficiency improvement by RM40m Manpower productivity improvement up to 26% On-time deliveries of 100% Indirect spend savings 15% World class product quality

BRAND ACTIVITIES & PERFORMANCE

PALL MALL CONTINUES TO GLOW

2006 RA Share: 7.7% 2005 RA Share: 7.5%

Note: RA figures are on month by month basis

DUNHILL SHOWING MARKET SHARE GROWTH

2006 RA Share: 39.5%, up to 0.5% from 2005 Q4 RA Share: 40.4%

Note: RA figures are on month by month basis

KENT STABLE MARKET SHARE

Stable market share at 0.9% despite market downtrading

Note: RA figures are on month by month basis

NON-DRIVE BRAND STABILISING

Market share stablilised

Note: RA figures are on month by month basis

FINANCIAL HIGHLIGTHS & ANALYSIS

Important points

Type of share: Common Stock Sales: 80.70 % Profit:7.54 Market value: 142.65

Important points Price$ :108.6 P/E Ratio: 21.59 EPS :5.03 Dividend :1.374 Yield :1.265 Shares Out: 1.603. Symbol :

Important Points

Sales ank: 46 Profits ank: 40 ankin :51 . Market Value: 30

NSRGF.PK

Su

estin point : Investing in nestle for long term 4707.KL NESTLE (M) BHD

Company Logo

www.themegallery.com

1.3 1.2 1.1

Liquidity Ratio 1.3 1.2

6 4 2 0 Current Ratio 2005 2.4

Investment ratios
4.4 EPS 2006

2005

2006

Gearing Ratio
20% 19% 18% 2005 2006

4.00% 3.80%
4.00% 3.50%

20% 19%
long term debtto Shareholder

3.60% 3.40%
3.20%

dividend yeild 2005 2006

Increasing In Current Ratio : company able to pay short term debts Decreasing in Gearing Ratio: company able to pay long term debts

Profitability Ratios
68% 68% 67% 66% 2005 2006 8 ROE 7.5 8.5

Efficiency ratio

7.8
2005

8.1
AR Turnover Rate 2006

35%

32%
30% 2005

34%

gross profit margin 2006

Increasing in Gprofit Margin :company able to pay its product costs Increasing in AR Turnover Rate :Well policy for collecting cash

Liquidity & profitability : stability

Dividend Yield Dividend Yield 4.2 4 3.8 3.6 3.4 3.2 2005 2006 3.6 3.5 3.4 3.3 3.2

3.5 3.3
2005 2006

Turnover(million) 3500 3000 2500 2000 1500 1000 500 0 2002 2003 2004 2005 2006 Turnover(million)

Food & drinking Metal industry

Nestle is good for long term investing although It is not reasonable invest whole money in 1 type of basket(here stock) Nestle: But for Nestle LOW Risk : Less than 1 beta: low related to market change/no strike no bonds in stock basket Also external effects Economic Stability in Malaysia Government policy to control Interest Rate :3.7 no sanctions against country No conflict/war no country risk

Good Stable situation :Able to pay So Debts, reasonable cash on hand

Quite safe

PROFITABILITY

‡ ‡

Steady net income for both 2006 & 2005 Indicates growth trend in return on equity

2%

4%

4% 3%

1%
1%

1%

2%

0% 2005 2006

0% 2005 2006
Return on equity

Net income as percentage of net sales

2005

2006

LONG-TERM CREDIT RISK

‡

Demonstrate same steady debt ratio for both year 2006 & 2005

70%

60%
60%

60%

50%

2005 2006
Debt Ratio

2005

2006

SHORT-TERM LIQUIDITY

‡

Modest growth of enterprise liquidity in 2006 in paying its debt

1 0.95 0.9 0.85 0.8 2005 2006
Current Ratio

0.86

0.9

2005

2006

INVESTMENT

‡

Increased of dividend yield as positive indication for investment

5.0% 3.0% 1.0%

3.5%

4%

2005 2006
Dividend Yield

2005

2006

TREND ANALYSIS

160% 160% 140% 120% 100% 100% Dividend Paid 80% 60% 40% 20% 0% 2002 2003 2004 2005 2006 Revenue Net Profit 106% 137% 140%

YEE LEE

BRITISH AMERICAN TOBACCO

RECOMMENDATIONS:

NESTLE

300 250 232 200 150 100 78 50 0 3 2002 3 2003 6 2004 7 2005 5 2006 7 2007 7.5 2008 69 114 94 113 125 132 208 NESTLE BAT YEELEE 265 274 252 262 271

12 10 8 6 4 2 0 2002 2003 2004 2005 2006 NESTLE BAT YEELEE

60 50 40 30 20 10 0 2002 2003 2004 2005 2006 NESTLE BAT YEELEE

Company Logo

www.themegallery.com

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