Developing the knowledge and skills to create and analyse financial models on a consistent and focused basis.
Dates and Location
- 13-16 March 2017, Johannesburg
Today, Financial Modelling is uniquely challenging. Even the most carefully structured deals can face difficulties in attracting sufficient funding from international and local investors. More than ever, project developers, equipment suppliers, bankers and other credit agencies and investors must be properly equipped to analyse and explain the risks and prospects for a project’s future performance.
Therefore, this course is designed to help delegates build a financial model to best practice standards for project finance. The general logic and overall approach will be demonstrated; then you will step through developing a model: handling inputs, building detailed calculations and creating final outputs. You will then learn how to sensitise the model to understand how changes in assumptions affect the business results and viability.
Over 4 intensive days, you will learn modeling techniques from a highly experienced expert in the field, and you will develop a framework for recognising and analysing qualitative and quantitative risks. You will also understand how Excel models are used to assess debt capacity, cover ratios, NPV, investment returns and other metrics common to attractive deals.
This intensive 4 days programme will enable you to create, use and analyse a financial model. These skills can be used to support credit approvals and reviews by lenders and to support organisations which run or sponsor projects. This will be done by reviewing best practice in model structures and logic, developing a fully-integrated model in stages, and using tools to assess the model outputs, particularly in sensitivity analysis.
- Best practice in energy financial modelling
- Essential model lay-outs and rules
- Build integrated models that link cash flow, income statement and balance sheet seamlessly
- Build cash flow cascades to forecast debt capacity and investor returns
- Easy ways to model tax and inflation
- Mitigate project risks
Benefits of Attending
- EXAMINE structuring and best practice in financial modelling
- LEARN how to build models to accommodate change
- EVALUATE funding structures and cash flow waterfalls that fit your commercial model
- DEVELOP an integrated modelling approach with balance sheets and P&L statements
- ANALYSE using the outputs of the model – ratios, sensitivity analysis, scenarios to make effective decisions
- UNDERSTAND key risks and learn the mechanisms for risk mitigation
- APPLY knowledge in interactive and realistic case study to highlight what leads to success, and what leads to failure!
Practical Computer-Based Exercises
The trainer will lead you in building an entire, generic model from scratch. Each portion will be approached with a short presentation and examples. You will then use this new information to build another portion of the model. Thus, the outline of a cash flow model will be created and populated with the required factors, including basic assumptions, input data and calculations to calculate results; you will then build on the model to add sensitivities, inflation factors, financial structures, balances sheet, P&L, equity returns, ratios and cover factors, and risk assessments.
All participants should bring a laptop with Excel 2003 or later. USB flash drives containing example files will be provided.
Unique Case Study
The continuous learning in this programme is built around a unique case study based on the development of a project on a greenfield site running throughout the programme. Each section will be covered briefly as a module in a traditional class style, but the real learning experience will be found in the practical computer based exercises within each module. Suggested solutions to each exercise will be provided. The course is very practical, as practice of newly-learned techniques enables a deeper and more effective building of skills.
Who Should Attend
The course is designed to support analysts within an organisation’s Finance, Investment or Treasury divisions to create and analyse financial models on a consistent and focused basis:
- Project financial analysts
- Capital spend analyst and controllers
- Financial analysts in the power, oil, gas and renewable sectors
- Budgeting and forecasting managers
- Financial accountants & planners
- Investment & treasury managers
- Project managers & financiers
- Government officials dealing with energy sector financial issues
- Financial & project advisors
- Commercial attorneys, in-house legal & project finance lawyers
Upon the successful completion of this course, you will receive a Certificate of Completion bearing the signatures from both the Course Director and the Course Organizer. This Certificate will testify your endeavor and serve towards your professional advancement.