SlideShare a Scribd company logo
1 of 28
 
Market Share Expansion Financing (MSEF ® ) An NFC/ Northern Finance Corporation Product To maximize Your Financial Performance and Profit
100% 80% USED CAPACITY 20% IDLE CAPACITY BREAK-EVEN LOSS PRODUCTION CAPACITY FIXED COSTS VARIABLE COSTS Profit Turnover
Graphic ,[object Object],[object Object],[object Object],[object Object],[object Object]
Idle Capacity Potential Strong Financial Ratio Impact (= 14% on total sales and 50% on incremental turnover!) (= 5% on sales) 175 million 50 million Profit Before Tax 625 million 500 million Variable Costs 450 million 450 million Fixed Costs 1250 million 1000 million Turnover At 100% Capacity At 80% Capacity
Profitability Measurements ,[object Object],[object Object],[object Object],Net Income Sales Net Income Total Assets Net Income Total Equity = Major improvements
Market Value Measurements ,[object Object],[object Object],Net Income Shares Outstanding Price per share Earnings per share MSEF ®  Main Benefit: Improved Profitability =  Major Improvement
Usual « Sales Push » Approach XYZ Idle Capacity Target Customers Price Concession (-X%) ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Obstacles in using « Sales Push » Approach ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Problems with « Sales Push » Approach ,[object Object],[object Object],[object Object]
The « Sales Push » Approach is  A DEAD END! What is the REAL solution?
The MSEF® Method ,[object Object],[object Object],[object Object]
MSEF® Method: « Sales Pull  » XYZ Idle Capacity ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Target Customers Overstock/ Overcapacity NFC Buys NFC  Buys  Idle Stocks/ Capacities from target customers
Target  Motivations with  MSEF ® ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
The recurring problem ,[object Object],[object Object],[object Object],Balance Sheet Market Value Balance Sheet Cash 400 Loss 1600 400 2000
MSEF ®  « Sales Pull » Idle Capacity XYZ Overvalued Asset Target Target Buys Sale of free capacity MEF Sale of asset at balance sheet value Balance Sheet Stock 2000 MEF 2000 NFC Buys
MSEF ®  « Sales Pull » ,[object Object],[object Object]
The MSEF® Concept XYZ Asset Target Market Price Refinancing of NFC Fund MEF Idle Capacity MEF pays a portion of target’s purchases
Implementing the MSEF® System XYZ Variable Costs 50% Incremental CASH Contribution 50% 250 Million Incremental Business 125 Million 125 Million 60 Million (Refinancing Capacity) 5 Million (NFC Fee) = 60 Million net contribution = 24% of Incremental Turnover
Implementing the MSEF® System ,[object Object],[object Object],[object Object],[object Object],MSEF ®  brings long term, stable, supply contracts with significant, above average, profit
MSEF® Advantages over the old way ,[object Object],[object Object],[object Object],[object Object],[object Object]
MSEF® Benefits for supplier ,[object Object],[object Object],[object Object],[object Object],[object Object]
MSEF® Benefits for target ,[object Object],[object Object],[object Object],[object Object],[object Object],Cash Current Liabilities Current Assets – Inventory Current Liabilities
Case Study Integrated Pulp & Paper Manufacturer Income Statement (Millions) 3 396,80 +96% 1 736,90 -40% 1 033,00 Net Profit 1 283,00 1 692,30 804,70 Taxes and other provisions 4 679,80 +36,4% 3 429,20 -46% 1 837,70 Profit before reserves and taxes 560,00     20% Refinancing Capacity 1 041,20 1 409,80 1 041,20 Financial expenses 6 281,00 +27,3% 4 932,60 -40% 2 705,70 Operating profit 1 810,40 1 807,70 1 810,40 Depreciation 1 459,30 1 465,00 1 459,30 other * 290,30 273,70 290,30 rent * 4 343,80 4 242,40 4 343,80 17% personnel * 5 202,20 4 954,50 4 823,60 17% outside services * 12 331,20 11 240,30 10 489,30 40% materials * Costs & expenses 31 718,20 28 916,70 25 922,40 890,20 890,20 262,20 Other income + own use 30 828,00 +10% 28 026,50 -8,00% 25 660,20 Sales MSEF-96 1995 1996
Balance Sheet 41068.9 39098.7 38705.4 TOTAL 41068.9 39098.7 38705.4 TOTAL 10073.2 7440.4 10073.2 Current 12353.7 16355.7 12353.7 Long Liabilities 6381.0 5798.6 6381.0 Reserves 2975.6 759.7 612.1 Cash & Bank 386.7 1079.9 386.7 Investments 5458.4 2701.4 3094.9 4833.1 4256.8 4833.1 Receivables 2061.6 964.5 2061.6 Retained Earnings 4088.8 4426.4 4088.8 Inventory 3396.8 1736.9 1033.3 Profit for the period Distributable Current Assets 6802.6 6802.6 6802.6 Non-distributable Shareholders Equity 28787.7 28575.9 28787.7 Fixed Assets MSEF-96 1995 1996 MSEF-96 1995 1996 Liabilities Assets
Ratio’s RC is Only Applied When Profit is Realised Refinancing Capacity of 560 Yields Extra Net Profit of 2.364 =>96% increase 311 311 311 311.000.000 shares =10.92 3397 = 5,58 1736 = 3,32 1033 Earnings / share => 69% increase 18232 15303 16277 (ROE) = 18,6% 3397 = 11% 1736 = 6% 1033 Return on Equity =>89% increase 41069 39098 38705 (ROA) =8,3% 3397 = 4,4% 1736 = 2,8% 1033 Return on Assets =>83 % increase 30828 28026 25660 = 11% 3397 =6% 1736 = 4% 1033 Net Profit => 25% increase 30828 28026 25660 = 15% 4679 =12% 3429 = 7% 1838 Profit before Taxes MSEF-96 1995 1996
How & When you win with MSEF® ,[object Object],[object Object],[object Object],[object Object],[object Object]
MSEF ® ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

More Related Content

What's hot

Sas forum portugal
Sas forum portugalSas forum portugal
Sas forum portugal
Rui Baptista
 

What's hot (8)

Incentive compensation in fusion CRM
Incentive compensation in fusion CRMIncentive compensation in fusion CRM
Incentive compensation in fusion CRM
 
Show Me the Money: Incentive Comp for SaaS
Show Me the Money: Incentive Comp for SaaSShow Me the Money: Incentive Comp for SaaS
Show Me the Money: Incentive Comp for SaaS
 
Analytics that Work - Tools for Creating Value and Focusing Performance
Analytics that Work - Tools for Creating Value and Focusing PerformanceAnalytics that Work - Tools for Creating Value and Focusing Performance
Analytics that Work - Tools for Creating Value and Focusing Performance
 
Leverage
Leverage Leverage
Leverage
 
Why Performance Matters
Why Performance MattersWhy Performance Matters
Why Performance Matters
 
Show me the money! Sales compensation plans that won't fail
Show me the money! Sales compensation plans that won't failShow me the money! Sales compensation plans that won't fail
Show me the money! Sales compensation plans that won't fail
 
Meeting 3 - Profitability Ratios (Financial Reporting and Analysis)
Meeting 3 - Profitability Ratios (Financial Reporting and Analysis)Meeting 3 - Profitability Ratios (Financial Reporting and Analysis)
Meeting 3 - Profitability Ratios (Financial Reporting and Analysis)
 
Sas forum portugal
Sas forum portugalSas forum portugal
Sas forum portugal
 

Similar to Market Share Expansion Financing (Msef)Diaporama

Transport Management & Theory Practices (4)
Transport Management & Theory Practices (4)Transport Management & Theory Practices (4)
Transport Management & Theory Practices (4)
Tengku Faisal Tg Arifin
 
P&g presentation
P&g presentationP&g presentation
P&g presentation
Elisa Reyes
 

Similar to Market Share Expansion Financing (Msef)Diaporama (20)

It staffing, inc.- LBO Analysis
It staffing, inc.- LBO AnalysisIt staffing, inc.- LBO Analysis
It staffing, inc.- LBO Analysis
 
What Motivates A Sales Force
What Motivates A Sales ForceWhat Motivates A Sales Force
What Motivates A Sales Force
 
590 8
590 8590 8
590 8
 
introduction-to-financial-management-lRuD.ppt
introduction-to-financial-management-lRuD.pptintroduction-to-financial-management-lRuD.ppt
introduction-to-financial-management-lRuD.ppt
 
First financial management 23566432245556
First financial management 23566432245556First financial management 23566432245556
First financial management 23566432245556
 
BackLive Pitch Deck
BackLive Pitch DeckBackLive Pitch Deck
BackLive Pitch Deck
 
Capital Structure Decisions-B.V.Raghunandan
Capital Structure Decisions-B.V.RaghunandanCapital Structure Decisions-B.V.Raghunandan
Capital Structure Decisions-B.V.Raghunandan
 
Veterinary Practice Valuation
Veterinary Practice ValuationVeterinary Practice Valuation
Veterinary Practice Valuation
 
Saas bootcamp sales and marketing processes 2016
Saas bootcamp sales and marketing processes 2016Saas bootcamp sales and marketing processes 2016
Saas bootcamp sales and marketing processes 2016
 
Building Business Value
Building Business ValueBuilding Business Value
Building Business Value
 
Measuring the Performance of Your Subscription Business: The Three Metrics Th...
Measuring the Performance of Your Subscription Business: The Three Metrics Th...Measuring the Performance of Your Subscription Business: The Three Metrics Th...
Measuring the Performance of Your Subscription Business: The Three Metrics Th...
 
Transport Management & Theory Practices (4)
Transport Management & Theory Practices (4)Transport Management & Theory Practices (4)
Transport Management & Theory Practices (4)
 
DCF Final
DCF FinalDCF Final
DCF Final
 
SEVEN STEPS TO CUSTOMER SUCCESS AT SCALE
SEVEN STEPS TO CUSTOMER SUCCESS AT SCALESEVEN STEPS TO CUSTOMER SUCCESS AT SCALE
SEVEN STEPS TO CUSTOMER SUCCESS AT SCALE
 
Capital structure
Capital structureCapital structure
Capital structure
 
Investment Crowdfunding PowerPoint Presentation Slides
Investment Crowdfunding PowerPoint Presentation SlidesInvestment Crowdfunding PowerPoint Presentation Slides
Investment Crowdfunding PowerPoint Presentation Slides
 
2014 year-end results presentation slides
2014 year-end results presentation slides2014 year-end results presentation slides
2014 year-end results presentation slides
 
P&g presentation
P&g presentationP&g presentation
P&g presentation
 
Module 5.2 - Financial sustainability
Module 5.2 - Financial sustainabilityModule 5.2 - Financial sustainability
Module 5.2 - Financial sustainability
 
Accounting Made Easy for Right-Brain Business Owners
Accounting Made Easy for Right-Brain Business OwnersAccounting Made Easy for Right-Brain Business Owners
Accounting Made Easy for Right-Brain Business Owners
 

Market Share Expansion Financing (Msef)Diaporama

  • 1.  
  • 2. Market Share Expansion Financing (MSEF ® ) An NFC/ Northern Finance Corporation Product To maximize Your Financial Performance and Profit
  • 3. 100% 80% USED CAPACITY 20% IDLE CAPACITY BREAK-EVEN LOSS PRODUCTION CAPACITY FIXED COSTS VARIABLE COSTS Profit Turnover
  • 4.
  • 5. Idle Capacity Potential Strong Financial Ratio Impact (= 14% on total sales and 50% on incremental turnover!) (= 5% on sales) 175 million 50 million Profit Before Tax 625 million 500 million Variable Costs 450 million 450 million Fixed Costs 1250 million 1000 million Turnover At 100% Capacity At 80% Capacity
  • 6.
  • 7.
  • 8.
  • 9.
  • 10.
  • 11. The « Sales Push » Approach is A DEAD END! What is the REAL solution?
  • 12.
  • 13.
  • 14.
  • 15.
  • 16. MSEF ® « Sales Pull » Idle Capacity XYZ Overvalued Asset Target Target Buys Sale of free capacity MEF Sale of asset at balance sheet value Balance Sheet Stock 2000 MEF 2000 NFC Buys
  • 17.
  • 18. The MSEF® Concept XYZ Asset Target Market Price Refinancing of NFC Fund MEF Idle Capacity MEF pays a portion of target’s purchases
  • 19. Implementing the MSEF® System XYZ Variable Costs 50% Incremental CASH Contribution 50% 250 Million Incremental Business 125 Million 125 Million 60 Million (Refinancing Capacity) 5 Million (NFC Fee) = 60 Million net contribution = 24% of Incremental Turnover
  • 20.
  • 21.
  • 22.
  • 23.
  • 24. Case Study Integrated Pulp & Paper Manufacturer Income Statement (Millions) 3 396,80 +96% 1 736,90 -40% 1 033,00 Net Profit 1 283,00 1 692,30 804,70 Taxes and other provisions 4 679,80 +36,4% 3 429,20 -46% 1 837,70 Profit before reserves and taxes 560,00     20% Refinancing Capacity 1 041,20 1 409,80 1 041,20 Financial expenses 6 281,00 +27,3% 4 932,60 -40% 2 705,70 Operating profit 1 810,40 1 807,70 1 810,40 Depreciation 1 459,30 1 465,00 1 459,30 other * 290,30 273,70 290,30 rent * 4 343,80 4 242,40 4 343,80 17% personnel * 5 202,20 4 954,50 4 823,60 17% outside services * 12 331,20 11 240,30 10 489,30 40% materials * Costs & expenses 31 718,20 28 916,70 25 922,40 890,20 890,20 262,20 Other income + own use 30 828,00 +10% 28 026,50 -8,00% 25 660,20 Sales MSEF-96 1995 1996
  • 25. Balance Sheet 41068.9 39098.7 38705.4 TOTAL 41068.9 39098.7 38705.4 TOTAL 10073.2 7440.4 10073.2 Current 12353.7 16355.7 12353.7 Long Liabilities 6381.0 5798.6 6381.0 Reserves 2975.6 759.7 612.1 Cash & Bank 386.7 1079.9 386.7 Investments 5458.4 2701.4 3094.9 4833.1 4256.8 4833.1 Receivables 2061.6 964.5 2061.6 Retained Earnings 4088.8 4426.4 4088.8 Inventory 3396.8 1736.9 1033.3 Profit for the period Distributable Current Assets 6802.6 6802.6 6802.6 Non-distributable Shareholders Equity 28787.7 28575.9 28787.7 Fixed Assets MSEF-96 1995 1996 MSEF-96 1995 1996 Liabilities Assets
  • 26. Ratio’s RC is Only Applied When Profit is Realised Refinancing Capacity of 560 Yields Extra Net Profit of 2.364 =>96% increase 311 311 311 311.000.000 shares =10.92 3397 = 5,58 1736 = 3,32 1033 Earnings / share => 69% increase 18232 15303 16277 (ROE) = 18,6% 3397 = 11% 1736 = 6% 1033 Return on Equity =>89% increase 41069 39098 38705 (ROA) =8,3% 3397 = 4,4% 1736 = 2,8% 1033 Return on Assets =>83 % increase 30828 28026 25660 = 11% 3397 =6% 1736 = 4% 1033 Net Profit => 25% increase 30828 28026 25660 = 15% 4679 =12% 3429 = 7% 1838 Profit before Taxes MSEF-96 1995 1996
  • 27.
  • 28.