Financial Modelling

Financial Modelling exemplified by a project financed transaction

Accurate integrated budgeting requires a systematic approach in order to avoid costly decision-making errors.

Our two or three-day training courses in financial modelling are interactive.

In the theoretical part we will give you a brief overview of project financing and the theoretical foundations of financial modelling (best practice). Besides, you will learn all you need to know about the various worksheets (input sheet, spreadsheets, result sheets, ratios), specific risks of project financing, definition and analysis of performance indicators and receive information on advanced excel applications (e.g. choose or index function).

In the practical part you will prepare your own model on the basis of a case study. You will become acquainted with the sensitivity analysis, with which you can identify the value driver of the model, use the break-even analysis and add additional scenarios to the model to analyse the interdependency of certain inputs.

We will show you specific tools that improve the quality, safety and transparency of a model. Besides, you will become acquainted with the use of macros to avoid circular references.

Financial modelling exemplified by a project financed transaction (2/3 days)
Structured creation of a financing model of your own in Excel on the basis of a case study taking into account theoretical principles to avoid common modelling errors.

"Financial Modeling" is a trainings course offered by Euler Hermes Aktiengesellschaft.

Objectives

  • Preparing a financing model of your own in Excel – from the input sheet to the risk analysis – taking into account various methods to avoid modelling errors
  • Structured design of models pursuant to current international standards
  • Efficient structuring of budgets and business plans using the tools presented in the training course
  • Applying rules and methods that reduce the modelling effort
  • Overview of all standard risk analyse tools
  • Using macros to avoid circular references

Programme content

1st day

Best practice for model design
Quality standards
The four modelling phases
Model design: structure and design
"Golden rules"
Case study
Modelling of a specific project with Excel
Input sheet

  • Structuring and layout
  • Creating options
  • Automatic input control
  • Use of control elements
  • Escalation of values

Flags, numerators, indices
Investments, depreciations
Financing

  • Uses and sources
  • Drawing of capital
  • Disbursement/repayment schedule
  • Annuities
  • Interest during construction and bank charges
  • Reserve for debt service
  • Avoiding circular references

2nd/3rd day

Continuation of the case study
Operation
Working capital
Tax (including loss carried forward)
Calculation of dividends
Cash flow waterfall
Profit and loss account
Summary of relevant data
Relevance and analysis of performance indicators
User-friendly design
Identifying risks associated with projects
Integration of risk analyses in the model,
Among other things:

  • What-if analysis
  • Sensitivity analysis
  • Graphical representation
  • Scenarios
  • Monte Carlo simulation
  • Use of macros

 

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