Certificate In Cash Flow And Forecasting Management

Attend This Course And Take Away Sample Forecasting Models For Three Different Industry Sectors And A Free Copy Of “Using Excel Business Analysis”

Certificate In Cash Flow And Forecasting Management 8 – 11 December 2013 • The Address Hotel Dubai Marina, Dubai, UAE

Helping Senior Finance Professionals Develop Sound Cash Flow Forecasting Tools To Aid Decision Making

5 Key Business Benefits 1. Learn how cash flow statements are calculated and presented 2. Interpret cash flow statements and ratios, and identify positive and negative corporate performance 3. Appreciate why cash flow analysis is more important than balance sheet and income statement analysis 4. Evaluate free cash flow and the ability of companies to meet their financial commitments 5. Utilise the latest computer spreadsheet formats in projecting cash flow

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Please bring your laptop loaded with MS Excel to the course

The George Washington University School of Business, IIR Middle East’s Academic Partner, is dedicated to excellence: in its teaching and research about management, in the public and private sectors, within the United States and internationally.

The school has a 75 year history of preparing men and women for leadership in both the public and private sectors. Known internationally for its dedication to academic excellence, the school draws students from all parts of the United States and around the world.

Beyond first class teaching and scholarship, the school’s faculty offers practical experience in the issues and challenges confronting business and government. Its research centres link faculty and students with US and international business and government organisations. Recent distance learning initiatives have expanded the school’s global reach.

Course Requirements And Certificates Delegates must meet two criteria to be eligible for an IIRME/GW University Certificate of Completion for a course: 1) Satisfactory attendance – delegates must attend all sessions of the course. Delegates who miss more than 2 hours of the course sessions will be ineligible to sit the course assessment 2) Successful completion of the course assessment

Course Assessment At the end of the course, there will be a multiple-choice exam of straight-forward questions based on the content covered during the course. A pass mark of 50%, in addition to a perfect attendance record and active participation during the course sessions is required to be awarded the Certificate of Completion from The George Washington University/IIR ME. Should you wish not to take up the test, you will receive a Certificate of Attendance from IIR ME based on your full attendance of the course. If delegates have not attended all sessions, the Certificate will clearly state the number of hours attended.

Who Should Attend?

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Financial Controllers Managing Directors Working Capital Managers Auditors Financial Analysts Business Development Managers Financial Managers Management Accountants Business Analysts Treasury Professionals Capital Planning Professionals Portfolio Managers

T: +971 4 335 2437 F: +971 4 335 2438

About Your Expert Course Director Andre Lanser Andre Lanser is a consulting trainer as well as a corporate finance practitioner. He has delivered courses for banks around the world in the areas of Credit, Corporate Finance, Valuation and Financial Modelling.

Andre qualified as a Chartered Accountant, completing articles with PricewaterhouseCoopers. He started his career with a subsidiary of Commercial Union, involved in the steel manufacturing industry. His experience ranged from systems implementation, credit assessment of the highly risky construction industry customers, heading up the finance functions to successfully turning the business around and then selling the company through a trade sale. He later joined Commercial Union in the investment back-office function, reengineering the investment back office and later headed-up a team who implemented a new investment management system for both the back office and the front office.

His career then spanned over 12 years in the Venture Capital and Private Equity arena, where he gained a vast amount of experience in the corporate analysis and valuation field.

He is a specialist in developing and training finance related courses, including corporate credit related topics, credit analysis and cash flow analysis with a special focus on the banking sector, derivatives, and financial modeling courses. His training experience spans a period of more than 15 years.

Course Overview This course will encompass a thorough walkthrough of cash flow from the cash drivers of different businesses to the cash from operations and free cash flow. The importance of understanding the accounting cash flow statement prepared for financial statements will be covered in detail.

Delegates will be taken through the derivation of free cash flow and how it can be used in both corporates and banks. Cash flow ratios will be developed and used in order to verify and check cash flow calculations.

The second part of the course will cover the forecasting of cash flows, using the knowledge gained in the first part of the course. The process of forecasting the cash flow will be based on using assumptions and historical figures, the forecast income statement and forecast balance sheet. The end result will be a fully balancing set of forecast financials with a cash flow forecast. The course will include numerous cash flow forecasts’ templates for different types of businesses.

W: www.iirme.com/cashforecasting

Certificate In Cash Flow And Forecasting Management

8 – 11 December 2013 The Address Hotel Dubai Marina, Dubai, UAE

Course Timings Registration will be at 07:30 on Day One. Course sessions will start promptly at 08:00 and end at 14:30. There will be two short breaks for refreshments and lunch will be served at the end of each day’s sessions.

Course Methodology To ensure that the course is highly practical and relevant, the Course Director Andre will use a blend of training techniques, including: • Leading edge, short, formal presentations on the theory and practice of cash flow statements • Review of topical articles and background information on cash flow analysis and related subjects to illustrate the practical issues • Group syndicate work and classroom discussion

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Funding decisions Different drivers in different businesses Relating cash flows to loan repayment Case Study: Review selected international companies’ cash flow

Day Two Cash Flow Ratios • Calculating and understanding cash flow ratios • Cash flow ratios as a predictive tool – success vs distress • The use of cash flow ratios as loan covenants

• Exercises and case studies • Using MS Excel as a tool to forecast cash flows

Course Outline

Day One How And Why Cash Flow Differs From Profits • Non-cash items • Differences between accruals and funding Exercise: Review figures of selected international companies and highlight the differences between profits and cash Accounting For Cash • Difference between cash and profit • Cash inflows • Cash outflows • The cash conversion period • Accruals and non-cash items

Case Study: Analyse cash flow ratios vs traditional financial ratios (selected corporates) In-Depth Analysis Of Understanding The Priority Of Cash Flows • Earnings Before Interest, Taxes, Depreciation, and Amortisation (EBITDA) • Operating cash flow and free cash flow • Lumpy and volatile cash flows • Allocating available cash to appropriate resources • Debt capacity and structure Case Study: Compare debt capacity and cash flow in a corporate Analysing Complex Cash Flows • Looking at cash flows in conglomerate companies • Understanding typical cash flows in different businesses • Spotting creative accounting situations • Cash flows in groups – inter-company trading Exercise: Analyse major companies’ cash flows

Case Study: Comparison of different cash flows The Cash Flow Statement • A tool for analysing sources and uses of cash • The published and the derived cash flow statement • Accounting standards Exercise: Prepare interpretation of numerous cash flow statements Constructing The Cash Flow Statement • From the books of accounts – The accountancy method • From the balance sheet and income statement – The banking method Case Study: Construct a cash flow statement Analysing Historic Cash Flow Statements – The Drivers Of Cash • Structure of cash flow statements • Profitability measures • Working investment management • Investment decisions – impact of capital expenditure, acquisitions and disposals

Identifying Cash Flow Problems • The benefits of up-to-date forecasting • Watching the market closely for changes • Signs that your customers are in difficulty • How to avoid cash flow problems Exercise: Review different companies’ cash flows and identify potential problems Cash Budgets • Cash inflows • Accounts receivable • Average collection period • Accounts receivable to sales ratio • Accounts receivable ageing • Cash outflows • Accounts payable ageing schedule Case Study: Prepare a detailed cash budget

T: +971 4 335 2437 F: +971 4 335 2438 E: register@iirme.com W: www.iirme.com/cashforecasting

Certificate In Cash Flow And Forecasting Management

8 – 11 December 2013 The Address Hotel Dubai Marina, Dubai, UAE

Day Three Key Concepts Of Financial Forecasting •

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Types of forecasts and their uses -

Simple statements of when funds are due

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Hard copy schedules provided

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Simple Excel based ‘direct’ cash forecasts

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Comprehensive Excel based ‘indirect’ methods

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Professionally developed multi-tab Excel models

Appropriate financial forecast models -

Understanding credit risk

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Mapping the type of forecast to the underlying industry

Sources of information Exercise: Evaluate the drivers of cash flow of numerous companies

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Business model Business risk -

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Sustainability of sales

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Predictability of sales

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Volatility

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Seasonality

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Cycles

Industry risk -

Competitiveness

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Benchmarking

Exercise: Prepare a simple forecast model to incorporate seasonality Forecasting Cash Flow •

The key cash drivers

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Looking at historical cash flows as a basis for future cash flow

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Using value drivers to make decisions on future business profiles

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Working with uncertainty – sensitising within a range of possibilities

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Use of sensitivity analysis and simulations

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General principles on the structure of cash flow projections

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Cash Flow Available for Debt Service (CADS)

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Debt capacity – debt service capacity as a key indicator of risk

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Projections – short, medium and long-term

Day Four Building The Forecast • Assumptions • Revenue forecast and growth – decompose sales • Cost of goods sold – decomposing • Inflation – real versus nominal • Revenues and costs; the level of fixed and variable costs Income Statement • Reviewing the income statement Balance Sheet • Balance sheet forecast - Assumptions - Non-current assets - Current assets - Equity - Liabilities – amortisation table - Leave cash line till last - Linkages to income statement and cash flow statement - Working capital budget - Capital expenditure budget Cash Flow Forecast • Cash flow forecast - Linking to the income statement and balance sheet • Balancing Using The Forecast • Sensitivity and scenarios • What ifs • Using ratios • Interpreting the results Summary And Close

“The trainer Mr. Andre was fantastic. He was able to share his vast knowledge and experience with us. His demonstration style was very good and included practical work and examples.The course will help me enhance my contribution to my work.”

Esam Mohammed Dukhan, Financial Controller, Dubai School of Government, UAE

Case Study: Build a forecast model and incorporate debt service capacity Cash Flow, Income Statement And Balance Sheet Forecasting With Personal Computers •

Would you like to run this course in-house?

A model will be loaded on your PC to enable you to use historical information as a basis for forecasting

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You will input assumptions about value drivers

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The resulting forecasts will then be used to answer a number of questions about the company’s borrowing and repayment capabilities and the need for extra security on any financing

The in-house training division of IIR Middle East Tel: +971 4 407 2624 • Email: CTS@iirme.com www.iirme.com/cts

T: +971 4 335 2437 F: +971 4 335 2438 E: register@iirme.com W: www.iirme.com/cashforecasting

Certificate In Cash Flow And Forecasting Management 8 – 11 December 2013 • The Address Hotel Dubai Marina, Dubai, UAE FIVE WAYS TO REGISTER IIR Holdings Ltd. P.O Box 9428 Dubai, UAE

+971 4 335 2437 +971 4 335 2438 register@iirme.com

www.iirme.com/cashforecasting

DISCOUNTS AVAILABLE FOR 2 OR MORE PEOPLE CALL – +971 4 335 2483 E-MAIL – a.watts@iirme.com WEB BC5163 Event

Course Fee Before 22 September 2013

Course Fee Before 13 October 2013

Final Fee

US$ 3,895

US$ 4,395

US$ 4,695

Certificate In Cash Flow And Forecasting Management 8 – 11 December 2013

WOULD YOU LIKE TO RUN THIS COURSE INͳHOUSE?

Course fees include documentation, luncheon and refreshments. Delegates who attend all sessions and successfully complete the course assessment will receive an IIRME/GW Certificate of Completion.

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If you are unable to attend, a substitute delegate will be welcome in your place. Registrations cancelled more than 7 days before the Event are subject to a $200 administration charge.

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Avoid Visa Delays - Book Now Delegates requiring visas should contact the hotel they wish to stay at directly, as soon as possible.

Visas for non-GCC nationals may take several weeks to process.

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Due to unforeseen circumstances, the programme may change and IIR reserves the right to alter the venue and/or speakers.

Event Venue: The Address Hotel Dubai Marina, Dubai, UAE Tel: +971 4 436 7777 Accommodation Details We highly recommend you secure your room reservation at the earliest to avoid last minute inconvenience. You can contact the IIR Hospitality Desk for assistance on: Tel: +971 4 407 2693 Fax: +971 4 407 2517 Email: hospitality@iirme.com © Copyright I.I.R. HOLDINGS B.V.

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