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Finance Management Group Assignment Title: 5 –year Business Plan for a company Group Members: Chian Chee Yong Wong Yee Yung Fu Yih Shyang Lim Yee Ching Hong Kok Hang Tan Rou Jin Vincent Kah Wee Sen
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Page 1: Focus point holdings berhad

Finance Management Group Assignment

Title: 5 –year Business Plan for a company

Group Members:

Chian Chee Yong Wong Yee Yung

Fu Yih ShyangLim Yee Ching

Hong Kok Hang Tan Rou Jin

Vincent Kah Wee Sen

Page 2: Focus point holdings berhad

FOCUS POINT HOLDINGS BERHAD

5-YEAR BUSINESS PLAN

Page 3: Focus point holdings berhad

Executive Summary

Focus Point Holdings Berhad (Focus Point) is a Malaysia-based investment holding company.

Focus Point has 3 direct subsidiaries:

Focus Point Vision Care Group Sdn Bhd, which is engagedin the operation of professional eye care centers andinvestment holding;

Focus Point Management Sdn Bhd, which is engaged in themanagement of franchised professional eye care centers

Excelview Laser Eye Centre Sdn Bhd, which is engaged inthe provision of medical eye care services.

Page 4: Focus point holdings berhad

As of December 2013, Focus Point operated itsprofessional eye care centers under the brand names of:

Focus Point

Focus Point Optical City

Opulence

Zania

Eyefont

ExcelView and Solariz

Focus Point has a total of 175 franchised professional eyecare outlets located in Malaysia operating under the allthe brand names.

Executive Summary (Cont’)

Page 5: Focus point holdings berhad

COMPANY MILESTONES >>>>>>>

The Franchise of the Year Award in year 2009.

“Ethical Business Excellence Award 2010/2011”

“Fair Price Award 2010”, recognitions bestowed by TheMinistry of Domestic Trade, Cooperatives AndConsumerism.

“Master Class Awards in Lifestyle” under McMillan WoodsGlobal Awards 2012. The McMillan Woods Global Awards2012 is recognition of the leadership of our managementteam and the achievements of the Focus Point Group.

Year 2013, Focus Point Vision Care Group Sdn Bhd, asubsidiary of Focus Point Holdings Berhad, was awardedthe “Golden Eagle Award” (“GEA”) under the prestigious“Eminent” category, organized by Nanyang Siang Pau.

Page 6: Focus point holdings berhad

Overview on Business Operation

Board of Focus Point regards corporate governance asimportant principles and best practices to be confirm, andwill continuously implement and carry out good governancepractices throughout the Company and branches with theultimate objectives to enhance the branch`s businessprosperity and corporate accountability and to protect andenhance shareholders’ value.

The purpose of the Board Charter is to clearly outline thestructure of the Board and to define the role of the Board asa whole through the identification of a schedule of powersreserved solely for the Board of Directors.

Page 7: Focus point holdings berhad

Overview on Business Operation

The objectives of this Board Charter are to ensure that allBoard members are fully aware of their roles andresponsibilities as Board members and the variousregulations that may have an impact on the discharge ofthe Board’s responsibilities.

Hence, the company member must aware of their own roleand responsibility as one member of the company which isstated in the board.

Page 8: Focus point holdings berhad

Mission and Vision

Page 9: Focus point holdings berhad

The Team

• Dato' Hamzah bin Mohd Salleh

Independent Non-Executive Chairman

• Dato' Liaw Choon LiangPresedent/ Chief Executive Officer

• Datin Goh Pei EongExecutive Director

• Leow Ming FongIndependent Non-Executive Director

• Datuk Idris bin HashimNon Independent Non-Executive

Director

Board of

Directors of

Focus Point

Page 10: Focus point holdings berhad

The Team (Cont’)

Leow Ming Fong

(Chairman)

Dato' Hamzah bin MohdSalleh

(Member)

Datuk Idris bin Hashim

(Member)

Nomination

Committee

Page 11: Focus point holdings berhad

The Team (Cont’)

Leow Ming Fong

(Chairman)

Dato' Hamzah bin Mohd Salleh

(Member)

Dato' Liaw Choon Liang

(Member)

Remuneration

Committee

Page 12: Focus point holdings berhad

The Team (Cont’)

Leow Ming Fong

(Chairman)

Dato' Hamzah bin MohdSalleh

(Member)

Datuk Idris bin Hashim

(Member)

Audit

Committee

Page 13: Focus point holdings berhad

Core Business

Page 14: Focus point holdings berhad

Eyewear is inclusive of:

Glasses

Sunglasses

Contact lenses

Coloured lenses

Eyewear

Page 15: Focus point holdings berhad

Collect BonusLink Points

The main system of this program is that

customers can utilize the BonusLink Points to

redeem cash vouchers to make a purchase at all

Focus Point outlets instead of using cash.

LOYALTYPROGRAMS

Page 16: Focus point holdings berhad

Is a method for customers to pay their purchases by installment.

This serves great saving with a 0% instalment

plan for all the branded eyewear and customers

are only need to pay from RM5 per day..

EASY PAYMENT

Page 17: Focus point holdings berhad

Focus Point also frequently introduces promotions and sales for the benefits of their customers

Discounts for the purchases made for the

customers holding “1 Malaysia Privilege Card” or

“Kad Diskaun Mahasiswa”.

Clearance Sale / Warehouse Sale

PROMOTION AND SALE

Page 18: Focus point holdings berhad

MARKETING OBJECTIVESEnd-consumers Marketing Target

Dispensing of prescription eyewear Walk in customers

Adult

Children

Senior Citizen

E-commerce

Retailing Walk in customers

Adult

Children

Senior Citizen

Eye care and refraction services Walk in customers

Adult

Children

Senior Citizen

Ophthalmic laboratory services Walk in customers

Adult

Children

Senior Citizen

E-commerce

Page 19: Focus point holdings berhad

MARKETING OBJECTIVES (Cont’)

26%

34%

18%

22%

Market Share

Prescription Frames

Prescription Lenses

Contact Lenses

Sunglasses

Page 20: Focus point holdings berhad

FINANCIAL OBJECTIVE

In the 5 years Business plan of Focus Point HoldingBerhad, the financial objectives that lead to maximizeshareholders’ stake are listed as below:

• To increase Sales Revenue growth annually in thenext 3 years.

• To increase Gross Margin/Gross Profit growthannually in the next 3 years.

• To increase Net Profit attributable to the owners ofthe parent in the next 3 years.

• To increase the total assets of the company in thenext 3 years.

Page 21: Focus point holdings berhad

FINANCIAL OBJECTIVE (Cont’)

2012 20132014

(forecast)2015

(forecast)2016

(forecast)

Revenue 130,578 147,451 163,325 180,910 200,387

Gross Margin 75,749 82,616 94,199 104,340 115,574

Net profit attributable to the owners ofparent

1,440 -257 2,292 2,482 2,660

-10,000

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

90,000

100,000

110,000

120,000

130,000

140,000

150,000

160,000

170,000

180,000

190,000

200,000

210,000A

mo

un

t in

RM

'00

0

Financial Objectives

Page 22: Focus point holdings berhad

FINANCIAL HIGHLIGHTS2012 2013 2014 2015 2016

RM RM RM RM RM

Revenue 130,578.00 147,451.00 163,325.74 180,909.58 200,386.51

Cost of sales (54,829.00) (64,835.00) (69,126.91) (76,569.19) (84,812.72)

Gross Profit 75,749.00 82,616.00 94,198.83 104,340.39 115,573.79

Selling General, Administrative Expenses

(69,770.00) (77,711.00) (87,360.40) (96,765.72) (107,183.62)

Results from operating activities

5,979.00 4,905.00 6,838.44 7,574.67 8,390.17

Interest Expenses (1,081.00) (1,503.00) (1,819.29) (2,202.15) (2,665.58)

Profit before tax 4,898.00 3,402.00 5,019.14 5,372.52 5,724.59

Tax expense (3,458.00) (3,659.00) (2,727.26) (2,890.90) (3,064.35)

Profit for the year 1,440.00 (257.00) 2,291.88 2,481.62 2,660.24

Page 23: Focus point holdings berhad

CONCLUSION

In the 5-year Business Plan showed that:

The sales revenue of year 2013 is higher than year 2012.

But the net profit for year 2013 is less than year 2012.

This is due to the higher interest expenses and tax expenses

incurred.

Therefore, in the forecast plan of year 2014, we

forecast the interest expense and taxation by taking the

average of increasing percentage from year 2011 to 2012 and

2012 to 2013. This is to indirectly increase the net profit for

the year. Same goes for year 2015 and 2016.

Page 24: Focus point holdings berhad

RECOMMENDATIONS

1. Should better control on the amount of

borrowings.

Because it will manipulate resulting in high

interest rates and it might indirectly

decrease the long term interest of

shareholders and owner.

2. Increase the Revenue of Contact Lens.

Due to Contact Lenses Trend nowadays.