FINANCIAL ANALYSIS DELIVERED WITH EXCEL EXAMPLES

JOIN OUR 2-DAY INTENSIVE TRAINING AND FIND OUT HOW MUCH YOU COULD ADD YOUR

UNDERSTANDING ON HOW TO ANALYZE THE FINANCIALS OF A BUSINESS EVEN IF YOU DO

NOT HAVE A FINANCE BACKGROUND COZ’ FINANCE SENSE IS ABOUT LOGIC…..

WE WILL NOT BRING YOU TOO MUCH ON UNDERSTANDING STANDARD FINANCIAL

STATEMENTS ANALYSIS RATIOS….PROBABLY TOO BORING FOR YOU….

Feel a Different Kind of Training With Us

We will not bore you by just

talking in front of class for two

days full

This training will be delivered approx. 50% by

illustrative examples using MS Excel (2010/2013)

AND involving you with

many discussions and

Qs-&-As

Burberry 2014 (in million euro)

Shareholders Equity 1,195

Net Debt 385

Short Term Financial Investment Yield 0.1%

Tax Rate 26%

Operating Profit 463

ROCE 42%

ROE 28.5%

ROCE = 463 × (1−26%)/ (1195−385) = 42%

ROE = (463+ 0.1% × 385) × (1 − 26% ) / 1195

= 42% − (42% − 0.1%) × −385 / 1195 = 28.5%

Accounting View

Financial Statement

Analysis

Financial Ratio Analysis

Planning/Forecast

There is NO FINANCE in Financial

Planning Models

ROCE > WACC

Residual Income

Economic Profit

EVA

SVA

Just ONE

Period

NO :

Time Value of Money

Size of Cash flow

Risk/Cost of Capital

Is NOT Operational

Value Based

Management

• Break The Value

Drivers

• NPV (+)

DCF

VALUATION

ROCE

ROE

No Value

FIRST we want to warn you that this training is not about financial

ratio analysis! (as we are not Accountants)

BUT how to identify whether your company creates value, even

from the company’s borrowing….

The Changing

Emphasis in

Corporate

Performance

Measures….yet

still how to

identify value-

creating

decisions in

your business

Four BIG Topics You Will Get

From This Training

1. Value Maximization and

Corporate Objectives

2. Financial Statements

Analysis:

Where are the Problems?

3. Financial Analysis:

A Bridge for Measuring

Value

4. Illustrative Examples:

Value-Creating Analysis

1. Value Maximization and

Corporate Objectives

WHY focus on Value ?

BECAUSE

All decisions in

business should lead

to value creation in a

cash flow context

2. Financial Statements Analysis:

Where are the Problems?

Analysis to answer if earnings = value added?

A quick look on standardized financial statements :

common size and ratio analysis. Everybody can do

this…..

Why financial statements analysis IS NOT

FINANCIAL ANALYSIS? Because there is NO

identification, timing, and risk of cash flows in the

financial statements analysis.

Everybody says that TIME IS MONEY but where is

“time value of money” in the financial statements

analysis?

THE BIG TOPICS

• Role of accounting to measure value

• Is doing financial statement analysis enough to get value?

• Shortcomings with financial statements analysis

3. Financial Analysis:

A Bridge for Measuring Value

THE BIG TOPICS

• Margin Analysis : Structure Analysis & Risk

• Working Capital and Capital Expenditures Analysis

• Financing Analysis

• Profitability Analysis

Watch out “Scissors’ Effects” in your margin analysis!

Do you know that there are 3 types of break-even point (BEP) analysis? (i) operating BEP, (ii) financial BEP, and (iii) total BEP

Trust working capital ratio: Why Not?

Capex analysis : it takes money to make money!

Help your banker’s job : A quick look on assessing the company’s ability to service its debts, and is the company running illiquidity risk?

Decompose the company’s ROCE and ROE to analyze the financial leverage effect in your company. We see more later

4. Illustrative Examples:

Value-Creating Analysis

What is the logic of NPV? Having positive NPV is like having positive CASH VALUE today? Why?

Why you should NOT USE Return on Investment (ROI) in your project analysis? ROI shows uptrend but the firm value does not change?

If not ROI, then what alternative of investment return measure that we could use?

The company’s sales growth might not create value for the company. How to identify this?

The company’s sales growth is not sustainable, how do you know this?

How to have a quick analysis that the company’s business is ready for getting debt?

Why debt is good and not good for the company’s shareholders? How to analyze the increase in the company’s risk with debt borrowing?

All about Value Analysis

Introduction to Shareholder Value Added (SVA)

Analysis in (i) valuing alternative business

opportunities and (ii) in valuing interdivisional

strategies

Introduction to Market Value Added (MVA)

Analysis in comparing two alternatives, which

are creating higher value to the company?

Introduction to Economic Value Added (EVA)

and CFROI Analysis in evaluating a firm’s

existing projects

Training Desktop

Date : please check it at “FUTURUM CORFINAN” website

Venue : Hotel at Jakarta Pusat

Notes :

Presentation slides will be distributed in .pdf file

Bring your laptop to the class with MS Office standard applications

Post-training discussions with the trainers via website about the training materials

Contact email : futurumcorfinan@gmail.com

Visit our website and training testimonials : google “Futurum Corfinan Training Testimonials”

Train Your Employees!

By now, we’ve probably all heard the

classic HR executives’ exchange —

Colleague #1: “What if we pay to

train our people and they leave?”

Colleague #2: “Right, but what if we

DON’T train them and they NEVER

leave?!?”

We can all agree that the latter

scenario is worse.