Project Finance Modelling Master Class

The purpose of this Master Class is for participants to learn how to build a project finance model over 3 intensive days using best practice principles.

This will include developing working sheets and financial statements to demonstrate the viability or otherwise of a specimen project.

Participants will learn how to handle common modelling issues and build a model which is flexible and comprehensive.

Key Points

Many project models can be difficult to use and amend and this Master Class offers the opportunity to build a comprehensive project financial model using tried and tested methods.  The Master Class commences with a discussion of objectives and common mistakes and then develops the case model in stages.  On completion, participants will have developed a complete project model which will act as electronic notes and a basis for future projects.

Methodology

The Master Class is taught using initial demonstrations combined with a practical and interactive case study.  Starting with an initial template, each session builds up the case model to enable attendees to gain real practical experience.

Comprehensive product notes and modelling software are provided for future reference.

Day One

Module 1

Introduction

  • Overview of the course
  • Common modelling errors
  • Systematic Design Method
  • Model design and structure – key steps
  • Case study outline
  • Model sections
  • Practical: reviewing model examples

Module 2    

Model Template

  • Starting position
  • Model layout and design
  • Required sheets
  • Input sheets
  • Key Excel features and techniques
  • Practical: producing a model framework using best practice

Module 3

Production Forecast

  • Production sales and volume
  • Input prices and gross costs
  • Impact of inflation and foreign exchange fluctuations
  • Practical: completing operating statements

Module 4

Fixed Assets

  • Depreciation of fixed assets
  • Schedules and workings
  • Practical: CAPEX and depreciation schedules

Day 2

Project Financing and Cash

Module 5

Financing and loans

  • Loan drawdown
  • Rate, terms and repayment
  • Debt amortisation schedules
  • Multiple debts and debt sizing
  • Practical: Loans schedule with balance sheet and income statement inputs

Module 6

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

Module 7

           

Cash flow

  • International cash flow
  • Cash flow to equity and debt providers
  • Error checking
  • Practical: cash flow and returns

Module 8

Ratios

  • Loan life / project life ratio
  • Residual cover
  • Annual debt service ratio
  • Principal and debt cover
  • Interest cover
  • Accounting ratios – profitability, liquidity, efficiency, structure
  • Practical: ratios sheet

Day 3

DCF and Sensitivity

Module 9       

Cost of Capital

  • Capital Asset Pricing Model constituents
  • Discussion and agreement on WACC inputs
  • Asset and equity betas and risk
  • Mathematical derivation
  • Practical: adding WACC to case

Module 10     

Discounted Cash Flow

  • Methods of adding terminal value
  • Producing an equity valuation
  • Practical: adding equity valuation to the template

Module 11     

Risk and Sensitivity

  • Adding risk techniques
  • What-if analysis
  • Dynamic changes
  • Dashboards and multiple scenarios
  • Practical: Adding sensitivity and scenarios

Module 12     

Management Summary

  • Producing management summary
  • Returns analysis
  • Required model documentation
  • Tracking changes

End of Course / Questions and answers

  • Investment Analysts
  • Investment Bankers
  • Investment Managers
  • Portfolio Managers
  • Financial Advisors
  • Project Advisors
  • Financial Analysts
  • Project Finance Lawyers
  • Project Managers
  • Project Financiers
  • Capital Spend Analysts
  • Financial Controllers
  • Treasury Department Staff
  • CFO’s  & Accountants
  • Project Risk Managers
  • In-House  Legal  Personnel
  • Export-credit agencies
  • Taxation Advisors

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Mr. A. Day

Mr. Day is a finance professional with extensive experience of financial modelling, finance and leasing.  Alastair was previously a director of a start-up structured finance company, which grew rapidly and was subsequently sold to a public company.

Later, he established an independent consultancy to concentrate on assignments in structured finance, leasing and financial model development.

Past projects have included investment analysis, debt restructuring, valuation, aircraft leasing, power and project finance models prepared for a variety of clients. In addition, Alastair designs and delivers courses covering financial modelling, credit analysis and equipment leasing.

Mr. Day has a degree in German and Economics from London University and an MBA.  He has held positions as an associate lecturer at the OUBS and the ifs University College (Chartered Institute of Bankers).

Books Authored By Mr. Day

He is the author of standard modelling textbooks such as Mastering Financial Modelling, Mastering Risk Modelling, Mastering Cash Flow and Valuation Modelling and Mastering Financial Mathematics in Excel, together with a number of leasing and credit books.

Note:  His full professional Biography is available on request.

Venue:

Holiday Inn Hotel, Sandton – Johannesburg

Dates: 11th – 13th September 2017

Course Prices and Discounts can be viewed after registration.

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