ECONOMIC PROFIT AND LOSS STATEMENT FOR THE 4TH QUARTER 2009

Economic profit or loss is an amount earned for a period by a business after deducting the operating expenses and a charge of opportunity cost of capital employed. The economic profit and loss statement set out in Table 1 is disclosed on a voluntary basis.

The assumptions used in computing the economic profit/loss are set out below:

(i) The cost of equity is calculated based on the following formula:

Cost of equity = (Beta x Market Risk Premium) + Risk Free Rate

(ii) The Beta used in the calculation is the 5 years adjusted Bloomberg Rate:

Quarterly Period Beta
4th Quarter 2009=1.417
2nd Quarter 2009=1.441
4th Quarter 2008=1.373

(iii)The risk free rate is the rate of return of a 10-year Malaysian Government Securities at the closing of the reporting period:

Risk Free Rate
At 31 December 2009=4.250%
At 30 June 2009=4.340%
At 31 December 2008=3.170%

(iv) The market risk premium is assumed at 5.2%, which represents the market return in excess of the return earned on risk free asset.

TABLE 1	31 December 2009 (Audited) RM’000
Group profit after taxation	57,203
Adjustments
- Deferred tax assets	16,000
Adjusted Group profit after taxation	73,203
Less: Cost of capital employed	(60,772)
Economic profit	12,431