PROTON From Saga To Exora

PROTON From Saga To Exora1983 2009

INTRODUCTIONIncorporated on 7 May 1983.Malaysias first car, the Proton SAGA which was commercially launched on July 9, 1985 by Malaysian Prime Minister, Dato Seri Dr. Mahathir Mohamad.Publicly listed on the Kuala Lumpur Stock Exchange (KLSE) in 1992 and its shareholders include Khazanah Nasional Berhad, Petroliam Nasional Berhad, Mitsubishi Corporation, Mitsubishi Motors Corporation, Employee Provident Fund Board and other local and foreign investors.12In 2008, PROTONs focus would be in the core areas of product, quality, cost efficiency and distribution network. PROTON aims to have a strong product portfolio by introducing the right car, for the right market, at the right price and at the right time. This was reflected in the organisations newly introduced Exora, Persona and Saga Models2SWOT ANALYSISStrengthCompetitively priced productsExtensive nationwide distribution networkGood corporate governanceInfluence of patriotism as Proton is national car-makerGovernment support 3SWOT ANALYSISWeaknessesReputation of poor product performance and functionalityHigh cost to expand their operation by advanced technologyShort history in automotive industryVulnerable to increasing material cost (steel, etc)

4SWOT ANALYSISOpportunityHigh demand on the products Opportunity to grow their business globallyR&D Development Government supportAfter-sales servicesCollaborations within automotive industry5SWOT ANALYSISThreatsCompetitors - local & international brands A lot of substitute products in marketFast changing and advanced engineering technologyEconomic downturn decrease of car sales

6FINANCIAL ANALYSIS PERSPECTIVELIQUIDITY RATIO

20052006200720082009Current ratio (current asset/current liabilities)5026.5/2210= 2.274431/2341.1= 1.893165.5/1533.8= 2.063446.1/1639.2= 2.103404.6/1883.6= 1.81Quick ratio[(current asset inventories)/current liabilities]4059.4/2210= 1.843042/2341.1= 1.301891.9/1533.8= 1.232345.8/1639.2= 1.432009.5/1883.6= 1.077Profitability Ratio20052006200720082009Net Profit Margin [Profit after tax/revenue]442.4/8483.3= 5.22%46.7/7796.9= 0.6%(589.5)/4687.3= (12.58)%184.6/5621.6= 3.28%(301.8)/6486.6= (4.65)%Return On Equity [profit after tax/total equity]442.4/5860.2= 7.55%46.7/5870.60.8%(589.5)/5230.6= (11.27)%184.6/5421.2= 3.41%(301.8)/5101.6= (5.92)%Return On Assets [profit after tax/total asset]442.4/8830.9= 5.01%46.7/8312.8= 0.56%(589.5)/6946.8= (8.49)%184.6/7293.3= 2.53%(301.8)/7089.9= (4.25)%8Activity Ratio

20052006200720082009Average Time Collection [receiveables/sales x 365 days

1403.2/8483.3 x 365 days= 60.371244/7796.9 x 365 days= 58.241192/4687.3 x 365 days= 92.821099/5621.6 x 365 days= 71.361080.3/6486.6 x 365 days= 60.79Inventories Turnover [sales/inventories]8483.3/967.1= 8.777796.9/1389= 5.614687.3/1273.6= 3.685621.6/1100.3= 5.116486.6/1395.1= 4.65Total Asset Turnover [sales/total asset]8483.3/8830.9= 0.967796.9/8312.8= 0.944687.3/6946.8= 0.675621.6/7293.3= 0.776486.6/7098.9= 0.91Fixed Asset Turnover[sales/fixed asset]8483.3/3288.9= 2.587796.9/3302.9= 2.364687.3/3169.5= 1.485621.6/3150.4= 1.786486.6/2827.1= 2.299Financial Leverage Ratio

20052006200720082009Debt to Equity Ratio[total liabilities/total equity & liabilities]2970.7/8830.9= 0.3362442.2/8312.8= 0.2941716.2/6946.8= 0.2471872.1/7293.3= 0.2571997.3/7098.9= 0.281Leverage Ratio[total liabilities/total equity/2970.7/5860.2= 0.5072442.2/5870.6= 0.4161716.2/5230.6= 0,3281872.1/5421.2= 0.3451997.3/5101.6= 0.39210CONCLUSIONTherefore, it is recommended to full merger with PROTON since the benefits is higher than takeover the company. In term of:PriceCompetitiveness in the automotive industryGovernment incentives

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