Financial-Building-blocks-2017-2

We make owners and management visualize the
potential with our approach
FINANCE
Copyright © 2017 Beide Forvaltning A/S
EQUITY/VALUATION
BUSINESS/ STRATEGICPLANS
KPI ANDMILESTONES
CapitalStructure OPEX andCAPEXBudget CapitalizationPlans FinancialPro-formas

STRATEGY FINANCE COMMUNICATION
Financial building blocks
EQUITY/ VALUATION
KPI ANDMILESTONES
Capital Structure OPEX andCAPEX Budget Capitalization Plans Financial Pro-formas
 Our financial building block
structure focuses on making sure
that key financial components of
the strategic plan are in place.
 We designe the financial tools for your
organization.
 We enable what if scenarios
 We identify value potential and milestones.
 We lower cost and increase return on equity.
Financial building blocks are the core component of the foundation of the financial planning process. With the right models and assessments,
guiding and monitoring initiatives and investments become a natural part of creating a recurring and sustainable business model.

The more CFOs contribute to strategy, the more relevant their perceptions of growth may become.
The results from a global McKinsey C-level study about emerging challenges indicates that, in the coming years, CFOs will need to
up their game in a wide range of growth-related activities
Executives are extremely or very satisfied with their companies’
effectiveness, CFOs’ resource-allocation role—in processes related to
portfolio management, including capital allocation, capital-
expenditure approval, and profit-and-loss management.
Importance of the CFO role
Nearly half of non-CFO executives report less satisfaction with their
companies’ effectiveness at processes that drive M&A, as well as expansion
into new markets and organic growth (such as new-product development
and expansion to adjacent products and services). Not surprisingly, these
are the same areas where non-CFO respondents think CFOs could more
effectively spend their time.
FINANCE Copyright © 2017 Beide Forvaltning A/S

Financial building blocks – accretive value
BUILDING BLOCKS DESCRIPTION ACCRETIVEVALUE
Capital Structure
Evaluation of the absolute mix between equity and debt to absorb return and risk. Type of debt agreements
and working capital that will help the solidity and liquidity of the company.
Higherreturn on equity
OPEX
Identification of operating and capital expenditure items, values and dependencies. Overall composition
and inflationary expectations of fixed and variable expenses.
Lowerexpenses
Capitalization Plans
Determination of financing requirements for working capital and liquidity requirements. What is the overall
plan and sources for funding the company (equity and debt) for the planning period.
Increasedprobability of
funding
Financial Pro-forma
Detailed income statement, balance sheet and cash flow statement for the strategic planning period.
Dynamic tool to evaluate financial impact of changes and new strategic assessments.
Identify highest return for
risk
KPI’s & Milestones
Core deliverables, reasoning and methods for meeting important milestones.
Are the KPI definitions and measurements in alignment with the progression and growth of the company.
Define accretivegoals
Valuations
Point in time calculations of overall value of company and plans using various valuation methodologies.
Structured assessment of what input, capitalization and resource utilization will produce accretive valuations.
Progressive milestoneplan
T
Financial building block are designed to address their individual and combined
potential to provide accretive value.
FINANCE
EQUITY/VALUATION
KPI ANDMILESTONES

Why finance is Important
Finance impacts choices of what
products, markets and strategic initiatives
to pursue.
By combining finance, strategy and
communicative disciplines in analysis and
plans we aim for better decisions,
improved coordination and accretive
performance.
Our financial program consist of core
building blocks tailored to design
and/or improve the overall solidity and
resources available to grow the
financials of the company in accordance
with expectations.
Finance and strategy walk hand
in hand.
Imagine the importance of proper
financial analysis when;
• Entering new markets.
• Designing your business plan.
• Performing due diligence.
• Assessing cost savings through outsourcing.
• Evaluating an investor portfolio.
• Making big strategic and financial decisions.
• Assessing the value of your company.
• Ongoing business optimization.
Our generic financial building blocks can be
used individually or put together. They can also
be used to evaluate financials of strategic
initiatives.
FINANCE
EQUITY/VALUATION
KPI ANDMILESTONES

Capital Structure
Assessing the strategic
plan and financials, we
focus on the following;
• Return expectations.
• Capital expenses and impact.
• Methods of raising capital.
• Ability to absorb risks.
• Strategic control and ownership.
• Howto create strategic flexibility.
We provide recommendations for
combinations of debt and equity.
• .
We build on experiences, industry
characteristics andinvestor
expectations within:
• CapitalManagement.
• Energyand clean technology.
• Mediacompanies.
• Luxury products and services.
• Retail products and services.
• Innovation and seed companies.projects.
Why choose us among other
consultants:
We apply senior finance and strategy
expertise and experience.
We focus attention on investor, partner,
and client dialog unparalled to other
companies.
We build on international trends and
applyit to local practices.
EQUITY/VALUATION
KPI ANDMILESTONES
Like companies have organizational structures; capital structure matters

Position your company
for the highest return on
equity given your
situation.
The ratio between equity and debt
addresses who absorbs risk and
returns while the opening balance
will be important in assessing how
and what the structure will be in the
distribution among owners.
IAS36 and other accounting
principles determines how the
value will be set for the opening
balance and ownership ratio
betweenowners.
Other types of issues will be what type of
debt agreements, lean on assets and lending
terms will help the solidity, liquidity and
working capital of the company.
Our aim is to optimize financial flexibility, the
ability to refinance, control debt, handle
interest rates and prepare for a variety of
financial situations.
The overall assessment of what capital
structure a company should seek is in
essence an assessment of the
appropriate mix between equity and
debt.
Our task is to determine what the mix
should look like given the expected
risks and the cost effectiveness of
possible ratios between debt and
equity.
Capital Structure - continued
EQUITY/VALUATION
KPI ANDMILESTONES

Operating and Capital expenditure
EQUITY/VALUATION
KPI ANDMILESTONES
We identify and structure
categories of operating
and capital expenditures.
The overview will be based on:
• Identification of costcomponents
anduncertainties.
• Inflation expectationsand cost
contingencies/ dependencies /
rules.
• How will items be scaled dependent
on growth, evolvement ofbusiness.
Assessing the business model and plans
we focus on expensecategories;
• Administrative.
• Plantandequipement.
• Personell.
• PR &Marketing.
• M&Aandinvestments.
• Capital and fund raising.
• Other.
The operating and capital expenditure
overview is formulated in an OPEX model.
We build the opex model based on our
cost identification process, experiences and
industry benchmarks within;
• Research
• Capital management
• Energy and clean technology
• Luxory products and services.
• Retail products and services.
• Innovation andseed projects.
Analysis of expenses that seeks a realistic structure tailored to the operating model.

Operating and Capital expenditure - continued
EQUITY/VALUATION
KPI ANDMILESTONES
Competitive business
models often build on
realistic and effective cost
structures.
The overall composition between
variable and fixed components in
the overall budget addresses the
overall financial risk to outcomes.
Identifying all cost components
and addressing a realistic outlook
for expenditures and revenues
The incorporation of probability measures
important in addressing what the variation
in Opex and Capex looks like.
Realistic expectation and structures
pertaining to type and size of
expenditures, inflationary expectations
important for the overall cost/return
estimation.
The overalll Opex and Capex
composition will enable the user to
evaluate the overall composition of
expenditures to be used in comparable
benchmark studies.

Capitalization Plans
EQUITY/VALUATION
KPI ANDMILESTONES
Capitalization plans addresses why, how, where and when capital will be raised.
To attract investors we
analyze the business model
and strategic plans.
We give a brief and deep evaluations
depending on ambition levels.
• How will the equity portion (cash and
non cash) be raised.
• What financing sources will be
contemplated (grants, loans and
other).
• How will raising efforts for debt,
convertible debt be structured.
• What other short term, credit vehicles
will exist.
In determining the overall efforts for
raising capital we
focuson;
• How much is needed and when.
• Possible sources of capital.
• Criteria for qualifying for capital
by source.
• Probability of raising efforts.
• Structured milestones identifying.
whattasks should be included.
The capitalization plans will resultin a
detailed outline of efforts. We build on
strength of the investment case, prior
experiences, company and industry
specifics.
We focuson:
• Level and growth of returns.
• Financial risk to outcomes.
• Annual directyield (dividends).
• Type ofindustry.
• Proven concepts and technology.
• Recentvaluations,transactions.

Capitalization Plans - continued
EQUITY/VALUATION
KPI ANDMILESTONES
Probability of getting
funded increases with a
structured evaluation and
plan.
Capital requirements should be
scaled to address liquidity and
sudden working capital
requirements when addressing the
overall capital structure.
Plan for financing the company with
cash for working capital
requirements require a structured
overview for funding resources and
the description of an overall plan for
funding.
Financing types, expenses,pros and
cons can provide value in deciding focus
and what to pursue. An overview of
non structured financing resources,
supplier discounts and programs should
be included in the
identification of other credit resources
The plan and it’s components will be
part of an overall milestone schedule
along with other important tasks.

Financial pro-forma
EQUITY/VALUATION
KPI ANDMILESTONES
Financial pro - forma is the strategic scenario planning tool of an organization
We design and create a flexible
tool where cost andrevenue
variables are portrayed in
forward looking financials.
• Description of expenses, revenues,
volumes and pricing and
uncertainties.
• Expenditures scaled in relationship
to growth in earnings.
• Ability to evaluate various
pricing strategies (EBITDA
based, fixed, variables etc).
• Confidence interval of after
tax earnings.
In designing the overall financial planning
tool we focuson;
• Structured outline of expense
and revenue items.
• Taxation,depriciationand rule
basedrepresentation.
• Summary financials(NPV,IRR
Etc).
• Ability to perform «what if
scenarios»and changes.
• Integration between income, balance
sheet and cash flow statement.
The design of the financial pro-form will
results in a excel-based tool.
We tailor the tool to specific situation,
industry specifics, organizational model
and taxation system.
• Typeof organizational setup and
margincreation.
• Pricingphilosophy.
• Depreciation schedules.
• Industry norms for contracts.
• Taxation principlesfor operating model
in question.

Financial pro-forma - continued
EQUITY/VALUATION
KPI ANDMILESTONES
What if scenarios utilizing a
forward looking tool provide
strategic information.
Outlining the key revenue drivers
and their relative impact will be
important in addressing overall key
successfactors.
Identifying the main assumptions
behind revenue driverswill create a
focus on providing a realistic
representation of expenditures.
Assessment of rate of growth in
earnings and confidence in earnings
volatility can be introduced as
important planning variables.
Strategic pricing strategies should be
explored for driving sales, break even
points and overall
expected EBITDA margin and for the
overall communication of earnings /
company valuation
and possible ways of influencing the
overall earnings band.
The financial pro-forma will be the
guiding financial tool for
communicating expectancy,
performing strategic assessments
and evaluating the financial capacity
of the organization

Key performance indicators – (KPI)
EQUITY/VALUATION
KPI ANDMILESTONES
KPI’s are identifiable and measurable non-financial and financial goals.
We identify, define and describe
key performance indicators for
your organization.
Listed below are some important questions;
 How will KPI’s be identified,
measured, monitored and managed.
 How well does the established KPI’s
secure overall stakeholder expectations.
 Is there a realistic an progressive
expectancy in KPI goals.
 Will the timetable for KPI’s be aligned
in relationship to financial capacity.
In identifying KPI’s we focus on;
• Stated vision and objectives.
• Stakeholderexpectations.
• How they can be measured.
• Industry norms and benchmarks.
• Alignmentwith other strategic
documents.
• Ability tomeasure.
Progressiveness.
The identification and definition will
result in a strategic document
We tailor the document to your specific
situation, industry specifics,
organizational model and stakeholder
expectations.
• Typeof organizational setup.
• Stakeholders inquestion.
• Desired mix between financial and
non-financial KPI’s.
• How you would like to be
measured assessing results.

Key performance indicators (KPI) - continued
EQUITY/VALUATION
KPI ANDMILESTONES
Defining key performance
indicators ensures
direction and
performance targets.
Key performance indicators should
be outlined in a concise and clear
document identifying core
deliverables, reasoning and
methods for computing key
indicators.
The formulation and establishment
of KPI’s should have basis
arguments and foundation
anchored to the overall stakeholder
expectations.
Are the KPI definition and measurements
in alignment with the progression,
growth of the company.
The established schedule / timetable
should be accompanied with a detailed
description of how the KPI’s will evolve
over time and with the overall plan.
KPI’s represents in essence an
identification, monitoring and
management of key success critiera
for an organization.
A continiously review and benchmark of
KPI’s and milestones should be
performed

Equity and valuations
EQUITY/VALUATION
KPI ANDMILESTONES
We make owners and management visualize the potential with our approach
Milestone plan that assures
progressive valuation
targets aligned with
stakeholder expectations.
• Valuation drivers given the nature,
size, industry of the company.
• Direct yield and multiple expectations
given successful completion of
milestones.
• Exit & divestiture plans for existing
equity interest.
In determining valuation potential we
look at;
• Valuation approach(dcf,assetor
fairvalue method).
• Realisticvaluation drivers.
• Timeline for when earnings drivers can
be realized.
• If earnings drivers can be
realizedthrough organic growth
or must be capitalized.
• Tenative evaluation of avenues that secure
progressiveness in valuations.
The assessment of valuation potential will
result in a recommended milestone plan.
We tailor the timeline to your specific
equity situation, working capital and
financingpossibilities and resource
situation focusingon;
• Organizational focus and resources.
• The most likely targets.
• Success criteria.
• Historic abilityto perform.
• Level of risk to identified targets.

Equity and valuations - continued
EQUITY/VALUATION
KPI ANDMILESTONES
Valuations should be
subject to point in time
calculations for accurate
reflection of revenue and
expenditure projections.
Growth projections and relative position,
stability of earnings within sector,
industry should be included as well as
direct yield and expected multiples.
Prevalent methods for confidence in
outcome and portrayal of earnings
drivers should be covered to provide
sensitivity around estimates.
Valuations should be performed along a
time axis dependent on critical
milestones, supported with valuation
methods and return on capital required to
produce equity multiples.
Methodology for valuations should be
fair value based in accordance with
lates IFRS accounting principles
assessing differences in an earnings,
market and asset based approach if
applicable.

Financial Tool kit – (Models)
EQUITY/VALUATION
KPI ANDMILESTONES
Extensive financial tool kit
We have an extensive financial tool kit consisting of many models to ensure that you have «the
building blocks available» to build a recurring business model and evaluate scenarios.
DCF Modeling
Comprehensive excel built tool with
income, balance sheet and cash flow
statement
Acquisition – Merger Model
Comprehensive excel built tool based on
detailed contribution analysis with embedded
uncertainties to evaluate bid value.
Point Scoring Model - Capabilities
Comprehensive excel built tool addressing
weights and point scoring qualitative
questions ( 1 – 10 ) to arrive at overall score.
Fair Value Modeling
Comprehensive tools and ability to
address FAS157 and FAS133 to valuation
of asset(s), derivatives and portfolios.
«All models are built in excel
and contains an extensive
fomula base that ‘can be
tailored to your organization»

Models - explained
EQUITY/VALUATION
KPI ANDMILESTONES
DCF Modeling
Comprehensive excel built tool
with income, balance sheet and
cash flow statement
Acquisition – Merger Model
Comprehensive excel built tool with income,
balance sheet and cash flow statement
Point scoring capabilities
Fair Value assessment
The DCF Model is built to capture many scenarios and represents an integrated income statement, balance
sheet and cash flow model for the next 60 months with the ability to tailor scenarios and financials to the
situation at hand. The model contains project financials to evaluate return to shareholders utilizing varioius
methods as well as based on multiples at the end of modeling period (exit value).
The model is built to value the acquisition price (fair value) for the procurement of a retail natural gas and
electricity portfolio, but can be tailored for many purposes. The model contain a detailed breakdown of
margin attribution, uncertaities as it pertains to prices and volume to assess possible fair value paths.
The model is built around giving weights (%) to defined categories scoring questions within each category
from 1 – 10. The model was orginally built to evaluate external portfolio managers (equity and fixed
income) within a set of categories (weighted) with a set of questions to give a total points score to preferred
bidders. The model can be used for a range of other purposes.
Range of fair value models incoporating quantitative
methodology utilizing linear and non – linear valuation
engines consiting with GAAP 157 and IFRS13 IAS36
methodology to establish valuation modes to periodically
assess earnings risk or/and balance risk to financial
statements.

Prices – Financial building blocks
T
All prices are exclusive of VaT, tentative accomodation and travel.
FINANCE
EQUITY/VALUATION
KPI ANDMILESTONES
Product Description Prices
1) Capital structure, Opex / Capex,
Capitalization plan
Financial section in overall strategic plan
integrated with other elements.
40,000 NOK for up to 40 hours of analysis to
develop overview and tables. 1,000 Nok for
each hour thereafter.
2) Investment memorandum (IM) Assessment, interview to design an
investment memorandum to be used for
capital raising efforts
50,000 NOK for up to 60 hours to develop IM
containing financial models + 3% transaction fee.
3) DCF Model – stand alone Assessment, interview to build a complete
financial model (Income statement, balance
sheet and cash flow statement) covering 3
defined scenarios.
50,000 NOK for up to 60 hours to develop
financial models containing 3 defined and
comparable scenarios. 1,000 Nok for each hour
thereafter.
4) Other models All other models in accordance with scope
and contractual agreements.
50,000 NOK for up to 60 hours to develop
financial models. 1,000 Nok for each hour
thereafter.

Financial-Building-blocks-2017-2

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