Many business models fail due to poor planning, haphazard development, inherent errors and lack the ability to provide clear financial analysis.
This course shows delegates how to build a power model from a skeleton model incorporating a range of Excel and applied financial techniques.
Featuring:
- Develop a power station case during the workshop
- Build an energy model from a blank template
- Financial analysis of case company
- Adding financial statements
- Valuation elements
- How to audit and check models
- Risk and sensitivity analysis
- Structuring and optimising techniques
- Clear presentation and analysis
Course Structure
The course starts with a discussion of modelling techniques and 'best practice' and presents a case study for completion during the course. Each session focuses on a particular aspect of modelling and applies it to the case model. The course is practical to allow for maximum participation and questions during the sessions.
Delegates will leave this intensive four-day course with the ability to effectively apply advanced modelling techniques in Excel and be able to build a comprehensive energy model.
Course Outcomes
- Principles of best practice modelling
- Understanding of a broad range of techniques
- Knowledge of financial functions and other function types
- Ability to design and build future models for own use, incorporating elements from the course
Day 1 - Introduction and overview
Introduction
Model template
Production forecast
-
Production sales and volume
-
Input prices and gross costs
-
Practical: completing operating statements
Fixed assets
-
Depreciation of fixed assets
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Setting out schedules and workings
-
Practical: CAPEX and depreciation schedules
Day 2 - Project financing and cash
Financing and loans
-
Loan drawdown
-
Rate, terms and repayment
-
Debt amortisation schedules
-
Key financial functions
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Practical: loans schedule with balance sheet and income statement inputs
Income statement and balance sheet
-
Adding income and balance sheet
-
Model checks on consistency
-
Dealing with any circular references
-
Practical: completing and checking the initial statements
Tax and dividends
Cash flow
Day 3 - Ratios and DCF
Ratios
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Loan life / project life ratio
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Residual cover
-
Annual debt service ratio
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Principal and debt cover
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Accounting ratios - profitability, liquidity, efficiency, structure
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Practical: ratios sheet
Cost of capital
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Outline of cost of capital theory
-
Capital Asset Pricing Model constituents
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Discussion and agreement on WACC inputs
-
Asset and equity betas and risk
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Mathematical derivation
-
Practical: deriving beta from data and adding WACC to case
Discounted cash flow
-
Methods of adding terminal value
-
Producing a project and equity NPV
-
Practical: adding NPV to the template
Auditing techniques
Day 4 - Risk, sensitivity and optimisation
Macros and automation
Risk and sensitivity
Optimum structure and targeting
-
Achieving a target valuation
-
Goal seek method
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Testing valuation with leverage and structure
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Practical: targeting the case to improve structure and result
Management summary
Questions and answers
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Alastair Day
Alastair is a finance professional with extensive experience of business analysis systems, accounting, funding and treasury activities. As a Director of Technology Group Limited, he was responsible for establishing the treasury function and modelled large transactions for evaluation and lease portfolio acquisition.
As an alternative to flotation, the directors subsequently sold the company to a public financial services group. Alastair established an independent lessor and consultancy. He has conducted a range of modelling and consulting assignments producing models for financial analysis, valuation, mergers, buyouts, projects and data analysis.
In addition, Alastair works as a consultant with Euromoney Training in Europe, Asia, Middle East, Africa and America, designing and delivering courses covering financial modelling from general modelling to specific valuation, leasing and other courses.
Alastair has a degree in German and Economics from London University and an MBA from the Open University Business School. He is an associate lecturer at the Open University Business School and has written a number of books and publications.
Courses run by this instructor
Interested in holding this course in-house? Please fill out your details and a member of our team will be in touch with more information.
10-13 Jul 2012 (London, UK)
This intensive four-day course will shows delegates how to build a power model from a skeleton model incorporating a range of Excel and applied financial techniques.
Each session focuses on a particular aspect of modelling and applies it to the case model.
11-14 Sep 2012 (Singapore, Singapore)
This intensive four-day Financial Modelling in Excel for the Power Sector course will shows delegates how to build a power model from a skeleton model incorporating a range of Excel and applied financial techniques. Each session focuses on a particular aspect of modelling and applies it to the case model.
26-28 Mar 2012 (Hong Kong, Hong Kong)
24-26 Sep 2012 (Hong Kong, Hong Kong)
This Fundamentals of Developing an Independent Power Project course will provide you with a greater understanding of: 1. The necessary conditions (legal, regulatory, market/commercial, technical, financial) for the successful development of IPPs including renewable energy projects; 2. The risk management tools and
techniques available to maximise value and to understand, calculate and manage risk in IPPs including
renewable energy projects; 3. The requirements of lenders necessary to be met to secure project financing for IPPs including renewable energy projects.
22-25 May 2012 (New York, United States)
This intensive four-day will shows delegates how to build a power model from a skeleton model incorporating a range of Excel and applied financial techniques. Each session focuses on a particular aspect of modelling and applies it to the case model.
29-31 May 2012 (Paris, France)
19-21 Nov 2012 (Paris, France)
This intensive three day hands-on course will provide a
comprehensive analysis of issues associated with independent electric power projects ranging from economic analysis of PPA contracts to financial modelling of projects. In working through analysis of projects, a mixture of case studies, lectures and analytical exercise will be used to evaluate electricity price forecasts, debt structuring, technology choice, cost of capital, and architecture of financial models.
20-21 Aug 2012 (Singapore, Singapore)
This Traded Electricity Markets course is a comprehensive and systematic introduction to traded electricity markets. The course will detail why and how electricity – the most challenging of all commodities – presents complexities more acute than in other traded market sectors, and how to understand, model and manage these demanding conditions. Case studies will illustrate how companies have resolved these issues, including Centrica, one of very few companies to have made a successful entry into this most difficult of markets.
25-26 Jun 2012 (London, UK)
10-11 Dec 2012 (London, UK)
This Traded Electricity Markets course is a comprehensive and systematic introduction to traded electricity markets. The course will detail why and how electricity – the most challenging of all commodities – presents complexities more acute than in other traded market sectors, and how to understand, model and manage these demanding conditions.
21-24 Aug 2012 (Lagos, Nigeria)
Many business models fail due to poor planning,
haphazard development, inherent errors and lack
the ability to provide clear financial analysis. This course shows delegates how to build a power model from a skeleton model incorporating a range of Excel and applied financial techniques.
8-11 May 2012 (Rio de Janeiro, Brazil)
Many business models fail due to poor planning, haphazard development, inherent errors and lack the ability to provide clear financial analysis. This course shows delegates how to build a power model from a skeleton model incorporating a range of Excel and applied financial techniques.
19-21 Mar 2012 (Singapore, Singapore)
This in-depth and practical three day course will demystify finance and cover best practices in financial analysis. By the conclusion of the course, delegates will be able to communicate easily in financial terms. They will
be able to comprehend and interpret financial information, understand the importance of cashflow, match their capital budgets to realistic targets, and accurately analyse capital investments. Most importantly, delegates will learn best practices in all of these areas.
14-18 May 2012 (Singapore, Singapore)
This five-day course will give participants expertise to
assist in achieving long-term success to enhance your
company’s competitive performance.
3-7 Sep 2012 (London, UK)
This five-day course will give participants expertise to
assist in achieving long-term success to enhance your
company’s competitive performance.
25-29 Jun 2012 (New York, United States)
This five-day course will give participants expertise to
assist in achieving long-term success to enhance your
company’s competitive performance.
16-18 Jul 2012 (Singapore, Singapore)
This intensive three day hands-on course will provide a
comprehensive analysis of issues associated with independent electric power projects ranging from economic analysis of PPA contracts to financial modelling of projects. In working through analysis of projects, a mixture of case studies, lectures and analytical exercise will be used to evaluate electricity price forecasts, debt structuring, technology choice, cost of capital, and architecture of financial models.
16-18 Jul 2012 (London, UK)
This in-depth and practical three day course will demystify finance and cover best practices in financial analysis. By the conclusion of the course, delegates will be able to communicate easily in financial terms. They will
be able to comprehend and interpret financial information, understand the importance of cashflow, match their capital budgets to realistic targets, and accurately analyse capital investments. Most importantly, delegates will learn best practices in all of these areas.
17-19 Dec 2012 (New York, United States)
This in-depth and practical three day course will demystify finance and cover best practices in financial analysis. By the conclusion of the course, delegates will be able to communicate easily in financial terms. They will
This course has now expired please email us to find out when the course will next be running.