International Finance is a project related to comparing Haier with various brands like Dell, Samsung & Sony. Haier being competitor of these brands explicitly takes the lead and therefore, after solid conclusion, Haier is ready to be poudly presented and to get launched in the Low Yat Plaza. Nonetheless, the very best always takes the triumph and holds the victory by showing positive and dynamic results.

1. INTERNATIONAL FINANCE

2. Submitted By:
Ayesha Khalil S2f14mcom0027
Asfa Basharat S2f14mcom0011
Khadija Jamil S2f14mcom0009

3. Submitted to:
Prof. Alamdar

5. Haier Group is a Chinese multinational consumer electronics and home
appliances company headquartered in Qingdao, Shandong province, China. It designs,
develops, manufactures and sells products including air conditioners, mobile
phones, computers, microwave ovens, washing machines, refrigerators, and televisions.
Haier the world leader in home appliances is celebrating 30th years of outstanding success
on a global scale. According to data released by Euro monitor, in 2014 the Haier brand had
the world's largest market share in white goods, with 10.2 per cent retail volume market
share. This was the 6th consecutive year in which Haier had been the market share leader
for major appliances.

6. Low Yat Plaza is a shopping mall specializing in
electronics and IT products in Kuala Lumpur, Malaysia.
In 2009, Plaza Low Yat was named “Malaysia’s Largest
IT Lifestyle Mall” by the Malaysia Book of Records.
Plaza Low Yat falls under the Low Yat Group, alongside
other properties in the city center such as Federal
Hotel, Capitol Hotel, Federal Arcade and BB Park.
Toshiba, Nokia, Celcom, Sony, Digi, Microsoft, Dell,
Maxis, FotoKem, HTC, Samsung, Nikon, Acer and
Lenovo are just a few stores that occupy retail space
here.

7. We start up our business by launching the
brand name Haier in Low Yat
Plaza (a shopping mall specializing in
electronics and IT products) in Kuala
Lumpur, Malaysia.
There are already so many competitors of
Haier in this plaza, therefore we choose
some of these competitors and calculate
their “Net Present Value” to check the
feasibility of Haier in this plaza.
Launching
Haier
in Low Yat Plaza

8. 3 Important Competitors of Electronics in
Low-Yat Plaza
SamsungSonyDell

9. Dell Inc. is an American privately owned multinational computer technology company based
in Round Rock, Texas, United States, that develops, sells, repairs, and supports computers and
related products and services.
Dell sells personal computers (PCs), servers, data storage devices, network switches, software,
computer peripherals, HDTVs, cameras, printers, MP3 players, and electronics built by other
manufacturers. The company is well known for its innovations in supply chain
management and electronic commerce, particularly its direct-sales model and its "build-to-
order" or "configure to order" approach to manufacturing—delivering individual PCs
configured to customer specifications.

10. • Dell was listed at number 51 in
the Fortune 500 list, until 2014.
After going private in 2013, the
newly confidential nature of its
financial information prevents the
company from being ranked by
Fortune. In 2014 it was the third
largest PC vendor in the world
after Lenovo and HP. Dell is
currently the #1 shipper of PC
monitors in the world. Dell is the
sixth largest company in Texas by
total revenue, according
to Fortune magazine.
Performance of DELL

11. Sale Projection of Dell
Year 2010 2011 2012 2013 2014
Sales 43623 53999 53341 52708 55870
Annual
growth
rate
53999-43623
X 100
43623
53341-53999
X 100
53999
52708-53341
X 100
53341
55870-52708
X 100
52708
23.28 % - 1.21 % - 1.186 % 5.99 %

12. AVERAGE GROWTH RATE
23.28 - 1.21 - 1.186 + 5.99
4
= 6.845 %

13. Forecast Sale Projection of Dell
for Next 5 year
Year 2014 2015 2016 2017 2018 2019
Projection
in Sale
55870
55870+55870 59694.30 + 59694.30 63780.37 + 63780.37 68146.13+68146.13 72810.73 + 72810.73
59694.30 63780.37 68146.13 72810.73 77794.67
6.845
X
100
6.845
X
100
6.845
X
100
6.845
X
100
6.845
X
100

14. Year 2010 2011 2012 2013 2014
Cost of
Sales
15132 20242 20190 21187 20261
Annual
growth
rate
20242-15132
X 100
15132
20190-20242
X 100
20242
21187-20190
X 100
20190
20261-21187
X 100
21187
33.76% -0.25% 4.93% -4.37%
Cost of Sales

15. AVERAGE GROWTH RATE OF COST
OF SALE
33.67+4.93-0.25-4.37
4
= 8.51 %

16. Forecast Cost of Sale Projection
Year 2014 2015 2016 2017 2018 2019
Projection
in Sale
20261
20261 + 20261 21985.21 + 21985.21 23856.15 + 23856.15 25886.30 + 25886.30 28089.22 + 28089.22
21985.21 23856.15 25886.30 28089.22 3047.61
8.21
X
100
8.21
X
100
8.21
X
100
8.21
X
100
8.21
X
100

17. 2014 2015 2016 2017 2018 2019
Initial investment (21781)
Cash flows 37709 39924 42260 44722 47315
Exchange Rates 1.56 1.56 1.56 1.56 1.56
Translate Amount 58826 62281 65926 69766 73811
Discount Rate 15% 15% 15% 15% 15%
Discount Factor (1.15)1
= 1.15
(1.15)2
= 1.3225
(1.15)3
= 1.5208
(1.15)4
= 1.7490
(1.15)5
= 2.0113
Present Value 51153 47093 43347 39888 36697

18. Net Present Value of DELL
• NPV = present Value – Initial Investment
= 218168 – 21781
= 196387

19. Sony Corporation commonly referred to as Sony is Japanese multinational
conglomerate corporation headquartered in Minato, Tokyo, Japan. Its diversified business
includes consumer and professional electronics, gaming, entertainment and financial services.
The company is one of the leading manufacturers of electronic products for the consumer and
professional markets. Sony is ranked 116th on the 2015 list of Fortune Global 500. Sony
Corporation is the electronics business unit and the parent company of the Sony Group, which
is engaged in business through its four operating segments – electronics (including video
games, network services and medical business), motion pictures, music and financial services.

20. • Sony Pictures Entertainment, Sony Computer Entertainment, Sony Music
Entertainment, Sony Mobile Communications (formerly Sony Ericsson) and Sony
Financial. Sony is among the Worldwide Top 20 Semiconductor Sales Leaders and as of
2013, the fourth-largest television manufacturer in the world, after Samsung
Electronics, LG Electronics and TCL.
• Sony develops consumer software for digital video (Sony Vegas Pro and Movie Studio),
audio (Sound Forge), music production (ACID Pro), DVD production and Blu-ray Disc
authoring (DVD Architect Pro). Sony Sound Series is a collection of royalty-free loops and
samples.
In 2014, Sony participated within NRG Energy eVgo Ready for Electric Vehicle (REV) program,
for EV charging parking lots.
Sony is in the business of electric vehicle lithium-ion batteries.
IT giants such as Google (driverless car) and Apple (iCar/Project Titan) are working on
electric vehicles and self driving cars, competing with Tesla; Sony is entering into this field by
investing $842,000 in the ZMP company.
Performance of SONY

21. Sale Projection of SONY
Year 2010 2011 2012 2013 2014
Sales 5902201 6304401 5526611 5691216 6800851
Annual
growth
rate
6304401 - 5902201
X 100
5902201
5526611 - 6304401
X 100
6304401
5691216-5526611
X 100
5526611
6800851 - 5691216
X 100
5691216
6.81% -12.33% 2.97% 19.49%

22. AVERAGE GROWTH RATE IN SALE
6.81-12.33+2.97+19.49
4
= 4.23 %

23. Forecast Sale Projection of SONY for
next 5 year
Year 2014 2015 2016 2017 2018 2019
Projection
in Sale 6800851
6800851 +6800851 7088527+7088527 7388372 + 7388372 7700900 + 7700900 8026648+8026648
7088527 7388372 7700900 8026645 8366175
4.23
X
100
4.23
X
100
4.23
X
100
4.23
X
100
4.23
X
100

24. Year 2010 2011 2012 2013 2014
Cost of
Sales
4432162
4831363 4386447 4485425 4593435
Annual
growth
rate
4831363-4432162
X 100
4432162
4386447 - 4831363
X 100
4831363
4485425 - 4386447
X 100
4386447
4593435 - 4485425
X 100
4485425
9.00% -9.20% 2.25% 2.40%
Cost of Sales

25. AVERAGE GROWTH RATE
9.00 – 9.20 + 2.25 + 2.40
4
= 1.11 %

26. Forecast Cost of Sale Projection
Year 2014 2015 2016 2017 2018 2019
Projection
in Sale 4593435
45934351 +45934351 4644422 + 4644422 4695975 + 4695975 4748100 + 4748100 4800803 + 4800803
4644422 4695975 4748100 4800803 4854091
1.11
X
100
1.11
X
100
1.11
X
100
1.11
X
100
1.11
X
100

27. 2014 2015 2016 2017 2018 2019
Initial investment (630923)
Cash flows 2444105 2692397 2952800 3225845 3512084
Exchange Rates 1.56 1.56 1.56 1.56 1.56
Translate Amount 15669298 1725895 1892820 2067855 2251335
Discount Rate 10% 10% 10% 10% 10%
Discount Factor (1.1)1
= 1.1
(1.11)2
= 1.21
(1.11)3
= 1.331
(1.11)4
= 1.4641
(1.11)5
= 1.6105
Present Value
(P.V)
14244816 1426359 1422103 1412372 139701

28. Net Present Value of SONY
• NPV = present Value – Initial Investment
= 18645351 – 630923
= 18014428

29. Samsung is a South Korean multinational conglomerate company] headquartered in Samsung
Town, Seoul. It comprises numerous subsidiaries and affiliated businesses, most of them united
under the Samsung brand, and is the largest South Korean chaebol (business conglomerate).
Samsung has a powerful influence on South Korea's economic development, politics, media and
culture and has been a major driving force behind the "Miracle on the Han River". Its affiliate
companies produce around a fifth of South Korea's total exports. Samsung's revenue was equal to
17% of South Korea's $1,082 billion GDP

30. Notable Samsung industrial
subsidiaries include Samsung
Electronics (the world's largest information
technology company measured by 2012
revenues, and 4th in market value),
Samsung Heavy Industries (the world's
2nd-largest shipbuilder measured by 2010
revenues),and Samsung
Engineering and Samsung
C&T (respectively the world's 13th and
36th-largest construction companies).
Other notable subsidiaries
include Samsung Life Insurance (the
world's 14th-largest life insurance
company), Samsung Everland (operator of
Everland Resort, the oldest theme park in
South Korea) and Cheil Worldwide (the
world's 15th-largest advertising agency
measured by 2012 revenues).

31. Sale Projection of SAMSUNG
Year 2010 2011 2012 2013 2014
Sales 134076414
154048895 817754283 217243913 195882955
Annual
growth
rate
154048895-134076414
X 100
134076414
817754283-154048895
X 100
154048895
217243913-81775283
X 100
817754283
195882955-217243913
X 100
217243913
14.89% 21.87% 15.70% -9.83%

32. AVERAGE GROWTH RATE
14.89+21.87+15.70-9.83
4
= 10.65 %

33. Forecast Sale Projection of SAMSUNG
for next 5 year
Year 2014 2015 2016 2017 2018 2019
Projection
Of Sale 195882955
195882955
+ 195882955
216744489
+216744489
239827777
+239827777
265369435
+265369435
293631279
+ 293632179
216744489 239827777 265369435 293631279 324903010
10.65
X
100
10.65
X
100
10.65
X
100
10.65
X
100
10.65
X
100

34. Year 2010 2011 2012 2013 2014
Cost of
Sales
9014590
0
104700887 118244730 130802991 121856939
Annual
growth
rate
104700887-90145900
X 100
90145900
118244730-104700887
X 100
104700887
130802991-118244730
X 100
118244730
121856939-130802991
X 100
130802991
16.14% 12.93% 10.62% -6.83%
Cost of Sales

35. AVERAGE GROWTH RATE
16.14+12.93+10.62-6.83
4
= 8.21 %

36. Forecast Cost of Sale Projection
Year 2014 2015 2016 2017 2018 2019
Projection
of cost
121856939
121856939
+121856939
131861393
+131861393
142687213
+142687213
154401833
+154401833
167078223
+167078233
131861393 142687213 154401833 167078223 180795345
8.21
X
100
8.21
X
100
8.21
X
100
8.21
X
100
8.21
X
100

37. 2014 2015 2016 2017 2018 2019
Initial investment (739097)
Cash flows 84883096 97140564 110967602 126553056 144107664
Exchange Rates 1.56 1.56 1.56 1.56 1.56
Translate Amount 132417629 151539279 173109459 197422767 224807955
Discount Rate 13% 13% 13% 13% 13%
Discount Factor (1.3)1
= 1.3
(1.13)2
= 1.2769
(1.13)3
= 1.4428
(1.13)4
= 1.6304
(1.13)5
= 1.8424
Present Value
(P.V)
117183742 118677483 119973538 121083080 122016751

38. Net Present Value of SAMSUNG
• NPV = present Value – Initial Investment
= 598934594 – 739097
= 598195497

39. Conclusion
Well after meticulous calculations, observations and analysis, we have
ultimately chosen Dell, Samsung & Sony the competitors of Haier
and calculated the net present value which exhibit the positive and
dynamic results .
Therefore, by keeping in view the positive result of NPV`s we are
ready to go ahead with our new project to launch Haier in Low Yat
Plaza

40.  Thank You 
ALLAH BLESS YOU
A L L A H H A F I Z