BPM Financial Modelling

Financial Statements Modelling Exercise

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Primary Model Developer: BPM Financial Modelling Cover Notes: Provides a practical example of the modelling of live, three-way financial statements.

Table of Contents
Financial Statements Modelling Exercise
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Section & Sheet Titles 1. Assumptions

a. Time Series Assumptions b. Opening Balance Sheet Assumptions c. Projected Assumptions

Page 3
4 6 7

2. Financial Statements
a. Income Statement b. Balance Sheet c. Cash Flow Statement

8
9 10 11

3. Appendices
3.1. Lookup Tables
a. Time Series Lookup Tables

12
13
14

3.2. Checks
a. Checks - Error Checks - Sensitivity Checks - Alert Checks

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18 20

Total Pages:

Assumptions
Section 1.
Financial Statements Modelling Exercise
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Section Cover Notes: This section contains assumptions relating to the forecasting of financial statement items. Assumptions are contained within the Time Series worksheet, Opening Balance Sheet worksheet and the Project Assumptions worksheet.

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Time Series Assumptions

Financial Statements Modelling Exercise
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x h O Time Series Assumptions

Core Time Series Assumptions
Title Periodicity Financial Year End Start Date Periods Denomination 31 1-Jan-12 5 2 Primary Annual 12

Historical & Forecast Period Titles

Include in Period Titles? Actual Periods Budget Periods TRUE 3 -

Data & Projections - Timing Assumptions

Data Term Basis Data - Active Periods Projections - Start Date 1 3 1-Jan-13

Notes: - A Financial Year End assumption of 28th of February is assumed to be a month end financial year end, even in a leap year. - The "Model Denomination" assumption will not necessarily automatically change the denomination of the outputs of this model. - A "Budget Period" refers to either a period in the current financial year or periods containing combined actual and forecast data. - "Data & Projections - Timing Assumptions" are used as the basis for related data and projections time series sheets. - Use the bpmToolbox "Update Time Series Columns" tool to hide inactive data and projections time series periods.

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Opening Balance Sheet Assumptions

Financial Statements Modelling Exercise
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Opening Balance Sheet ($Millions)

Current Assets
Cash Accounts Receivable Other Current Assets Total Current Assets 1-Jan-12 -

Non-Current Assets
PP&E Intangibles Deferred Tax Assets Other Non-Current Assets Total Non-Current Assets -

Total Assets Current Liabilities

Accounts Payable Interest Payable Dividends Payable Income Tax Payable Other Current Liabilities Total Current Liabilities

Non-Current Liabilities
Debt Deferred Tax Liabilities Other Non-Current Liabilities Total Non-Current Liabilities -

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Projected Assumptions
Financial Statements Modelling Exercise
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Year Ending 31 December 2012 (A) 2013 (A) 2014 (A) 2015 (F) 2016 (F)

Revenues & Expenses

Sales Cost of Goods Sold $Millions % of Sales Base Period Periodic Growth Rates (% per Year) 120.0 5.0% 3.0% 2.5% 45.0% 45.0% 45.0% 45.0% 2.5% 45.0%

Operating Expenditure Capital Expenditure - PP&E Capital Expenditure - Intangibles

$Millions $Millions $Millions

Base Period Periodic Growth Rates (% per Year) 27.0 2.5% 2.5% 2.5% 7.0 1.0 7.5 1.3 8.0 1.5 8.5 1.8

2.5% 9.0 2.0

Debtors & Creditors

Accounts Receivable Accounts Payable Debtor Days Creditor Days 30 60 30 60 30 60 30 60 30 60

Assets
Depreciation & Amortisation Assumptions
Depreciation - PP&E Depreciation - Intangibles % of Capex % of Capex 90.0% 95.0% 90.0% 95.0% 90.0% 95.0% 90.0% 95.0% 90.0% 95.0%

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Financial Statements
Section 2.
Financial Statements Modelling Exercise
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Section Cover Notes: Contains live, linked three-way financial statements (Income Statement, Balance Sheet & Cash Flow Statement).

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Income Statement
Financial Statements Modelling Exercise
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Year Ending 31 December 2012 (A) 2013 (A) 2014 (A) 2015 (F) 2016 (F)

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Balance Sheet
Financial Statements Modelling Exercise
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x h O
Year Ending 31 December 2012 (A) 2013 (A) 2014 (A) 2015 (F) 2016 (F)

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Cash Flow Statement

Financial Statements Modelling Exercise
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x h O
Year Ending 31 December 2012 (A) 2013 (A) 2014 (A) 2015 (F) 2016 (F)

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Appendices
Section 3.
Financial Statements Modelling Exercise
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Section Cover Notes: This section contains Appendices

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Lookup Tables
Sub-Section 3.1.
Financial Statements Modelling Exercise
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Sub-Section Cover Notes: This sub-section contains Lookup Tables

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Time Series Lookup Tables

Financial Statements Modelling Exercise
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Time Series Lookup Tables

Month Days
Month Days 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31

Names
LU_Mth_Days

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Time Series Lookup Tables

Financial Statements Modelling Exercise
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Month Names
Month Names January February March April May June July August September October November December

Names
LU_Mth_Names

Denomination
Denomination $Billions $Millions $'000 $

Names
LU_Denom Billions Millions Thousands Currency

Data Term Basis

Data Term Basis Active Data Periods Projections Start

Names
LU_Data_Term_Basis

Periodicity
Periodicity Annual Semi-Annual Quarterly Monthly

Names
LU_Periodicity Annual Semi_Annual Qtrly Mthly

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Time Series Lookup Tables

Financial Statements Modelling Exercise
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Period Type Names

Period Type Names Year Half Year Quarter Month

Names
LU_Period_Type_Names Yr_Name Half_Yr_Name Qtr_Name Mth_Name

Periods In Year
Periods In Year 1 2 4 12

Names
LU_Pers_In_Yr Yrs_In_Yr Halves_In_Yr Qtrs_In_Yr Mths_In_Yr

Conversion Factors
Conversion Factors 10 100 1,000 1,000,000 1,000,000,000

Names
Ten Hundred Thousand Million Billion

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Checks
Sub-Section 3.2.
Financial Statements Modelling Exercise
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Sub-Section Cover Notes: This sub-section contains Checks

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Checks
Financial Statements Modelling Exercise
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Error Checks
##

Include summary in model name?

Errors Detected - Summary

Total Errors: Error Message (Empty if None): -

Error Checks
Error Checks Balance Sheet Total Errors: Check Include? Yes Flag -

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Checks
Financial Statements Modelling Exercise
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Sensitivity Checks
##

Include summary in model name?

Sensitivities Detected - Summary

Total Sensitivities: Sensitivity Message (Empty if None): -

Sensitivity Checks
Sensitivity Checks Total Sensitivities: Check Include? Flag -

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Checks
Financial Statements Modelling Exercise
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Alert Checks
##

Include summary in model name?

Alerts Detected - Summary

Total Alerts: Alert Message (Empty if None): -

Alert Checks
Alert Checks Opening Balance Sheet Assumptions Total Alerts: Check Include? Yes Flag -

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