Project Financial Modelling Masterclass
This course runs over 5 days, from 12-5pm with 5 live interactive, instructor led training sessions.
This hands-on practical course is designed for delegates wishing to enhance their capacity to build comprehensive
and complex project financial models.
It combines an Excel’s modelling functionality with the requirements and intricacies involved in the preparation and
structure of more complex financial models.
All Excel functions and techniques essential for successful model building are fully demonstrated and supported by
Delegates, under the supervision and with the help of the instructor, are required, in a sequential process, to:
- build a 20-year annual toll road concession project model, (creating the input sheet and overall model design)
- build a 5-year monthly mining project model.
Thereafter delegates will choose between the following two options:
- a 20-year annual solar energy model, and
- a 10-year real estate project model
These exercises form the core modelling activity and require an understanding of the business case and the creation
of a comprehensive model specification, as the first step in the model design.
Delegates are then led, in a sequential manner, through the model construction process commencing with the creation
of the input sheet, necessary support schedules for both the income statement and balance sheet, the three financial
statements, a detailed analysis of the model results and culminating with the protection of the completed model.
Pertinent issues central to modelling such as the design and layout of the financial statements, financial and returns
ratios and breakeven analysis are also covered in detail.
Analysis of the model output includes sensitivity, scenarios and data tables.
Finally, and time permitting, other important project modelling issues, such as levelised costing, choosing between
alternative loan structures and a comprehensive look at various loan issues will be discussed and reinforced by
- Distilling the key elements of the business case as the building blocks of the model
- Best practice methodology regarding model specifications, structure and sequence
- The importance of and interaction between the input sheet, the support schedules, the Income Statement, Cash Flow Statement and Balance Sheet
- Calculating model output e.g. Free Cash flows, CFADS, Cash Flow waterfalls, DSCR and project ratios
- Excel techniques useful in the analysis of model output (e.g. sensitivity analysis, scenarios, data tables, etc.)
- Calculating returns by incorporating Weighted Average Cost of Capital (WACC), Free Cash Flows, Net Present Values (NPVs) and Internal Rates of Return (IRR)
- Analysing the model results, calculating returns, sensitivities, scenarios, data tables and protecting the model
- Levelised Costing
- Reviewing alternative loan structures
- Uses of the Control keys
Who should attend?
- Persons responsible for building project feasibility models or evaluating of models pertaining to projects
- Financial officers, planners, middle and senior management
- Project financial advisors