Fundamental Analysis Workshop Series Session Two – Art of Reading Annual Reports

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SYLLABUS Where to find? Basic Decrypting Applying the Information Q & A Introduction SEMESTER 2 WK 2 Introduction to Stock Investing WK 3 Art of Reading Annual Reports WK 4 Picking the Right Stocks(Part I) – Top Down Analysis WK 5 Picking the Right Stocks (Part II) – Bottom Up Analysis WK 6 Picking the Right Stocks (Part III) – Dividend Investing RECESS WEEK WK 7 Portfolio Management for the Retail Investor WK 8 Case Study 1 WK 9 Case Study 2 WK 10 Case Study 2 WK 11 Traders Interview

Common Issues Where to source out the important and relevant information? What do certain terms mean? Where to find? Basic Decrypting Applying the Information Q & A Introduction

Agenda Where to find Annual Reports? Understanding an Annual Report – Income Statement – Balanced Sheet – Cash Flow Statement – Statement of Retained Earnings Applying the information Where to find? Basic Decrypting Applying the Information Q & A Introduction

INTRODUCTION Where to find? Basic Decrypting Applying the Information Q & A Introduction

PROFILE NUS Invest Research Analyst Year 1 BBA 2 years experience Pure Fundamental Analysis Where to find? Basic Decrypting Applying the Information Q & A Introduction

Where can I find Annual Reports? Where to find? TECHNICAL ANALYSIS DOW THEORY Q & A Introduction

Where to find? Basic Decrypting Applying the Information Q & A Introduction Where can I find Annual Reports?

Where to find? Basic Decrypting Applying the Information Q & A Introduction

Decrypting the Annual Report Where to find? Basic Decrypting DOW THEORY Q & A Introduction

Where to find? Basic Decrypting Applying the Information Q & A Introduction Annual Report Released annually Snapshot of the business No two are the exactly same

Where to find? Basic Decrypting Applying the Information Q & A Introduction

Where to find? Basic Decrypting Applying the Information Q & A Introduction

Main Components Chairman’s Statement Business Review Income Statement Balanced Sheet Statement of Cash flow Statement of Retained Earnings Where to find? Basic Decrypting Applying the Information Q & A Introduction

Chairman’s Statement Where to find? Basic Decrypting Applying the Information Q & A Introduction

Business Review Where to find? Basic Decrypting Applying the Information Q & A Introduction

Business Review

Income Statement Where to find? Basic Decrypting Applying the Information Q & A Introduction

Balanced Sheet Where to find? Basic Decrypting Applying the Information Q & A Introduction

Where to find? Basic Decrypting Applying the Information Q & A Introduction

Where to find? Basic Decrypting Applying the Information Q & A Introduction

Statement of Cash Flow Where to find? Basic Decrypting Applying the Information Q & A Introduction

Statement of Retained Earnings Where to find? Basic Decrypting Applying the Information Q & A Introduction

Applying the Information Where to find? Basic Decryption Applying the Information Q & A Introduction

Where to find? Basic Decryption Applying the Information Q & A Introduction Ratios NTA EPS PE ROE Current Ratio Debt/Equity

Where to find? Basic Decryption Applying the Information Q & A Introduction Mentality Be curious, inquisitive Take nothing for granted Don’t be swayed by neither optimism nor pessimism Make your own judgements Stand by them

Liquidating Value Asset Class Coefficient (%) Cash and cash equivalents100 Trade and other receivables80 Inventories66 Financial assets, available for sale15 Property, plant and equipment15

Q & A Where to find? Basic Decrypting Applying the Information Q & A Introduction

Summary Curiosity Patience Hardwork Where to find? Basic Decrypting Applying the Information Q & A Introduction

THANK YOU! Where to find? Basic Decrypting Applying the Information Q & A Introduction