CONTENTS:

INTRODUCTION

FINANCIAL STATEMENT ANALYSIS

SHARE PRICE INDEX INFORMATION

DU PONT ANALYSIS

WACC/BEP/ROIC CALCULATION

RECOMMENDATIONS

CONCLUSION

• Travel & Leisure Industry

• Publicly owned (LSE: FGP)

• FirstGroup Plc. is the leading transport operator in the UK and North America.

• Annualised revenues of over £6 billion a year.

• Employs some 136,000 staff and serves more than 2.5 billion passengers a year.

• Approximately 50% of group revenues are supported by medium or long term contracts. (providing stability against an uncertain economic background)

INTRODUCTION

INCOME STATEMENT & BALANCE SHEET HIGHLIGHTS

• Sales increased by 31.43%.

• Operating Profit increased by 38.73%.

• Net Profit After Tax increased by 17.78%.

• Total and Net Assets increased by 22.33% and 14.12% respectively.

• Net Current liabilities tripled in size.

• Company issued both ordinary shares and premium shares.

CASH FLOW STATEMENT

CASH FLOW STATEMENT HIGHLIGHTS

• Cash generated from Operation activities has increase by 129 million.

• Net Cash from Investing activity was high in 2008 because of acquisition.

• Cash from Financing activities decreased significantly. (insurance captive assets)

• However, overall Cash increase was 89 million.

COMMON SIZE ANALYSIS : INCOME STATEMENT

COMMON SIZE ANALYSIS : BALANCE SHEET

RATIO ANALYSIS : LIQUIDITY

RATIO ANALYSIS : ASSET MANAGEMENT

RATIO ANALYSIS : DEBT MANAGEMENT

RATIO ANALYSIS : PROFITABILITY

RATIO ANALYSIS : MARKET VALUE

ANALYSIS : DU PONT SYSTEMS

A 18.2% return on equity is good in this industry.

For fiscal year 2009, 2.4% of the return on equity was due to profit margins and sales.

15.8% was due to returns earned on the debt at work in the business.

To improve its performance the company can increase its Operating efficiency and Asset use efficiency.

SHARE PRICE PERFORMANCE-5 YRS

ANALYSIS : WACC

RECOMMENDATIONS• SHAREHOLDERS•  Ameriprise Financial:8.01%• Lloyds TSB Group plc:6.87%• AXA:5.84% • JP Morgan Chase & Co:4.89% • Standard Life Investments Ltd:4.06% • LEGAL & GENERAL:3.98% • Resolution Investment

Services:3.14%

• For short term investment, we would recommend not to invest in First Group PLC.

• For long term investment, we would recommend to invest in First Group PLC.

THANK YOU!