The document provides an analysis of Brevini Power Transmission, including:
1. An overview of the company's history, strategic business units, and industry analysis using Porter's five forces model and SWOT analysis.
2. Expectations for return on invested capital (ROIC) based on assumptions and results from analyzing Brevini and its four main competitors.
3. A discounted cash flow (DCF) valuation of Brevini including estimates of the weighted average cost of capital (WACC), free cash flows, and terminal value to determine the company's current value.
This document provides an overview of a Cummins Power Generation investor conference in September 2006. It introduces the conference speakers and agenda. The agenda includes discussing Cummins' market position in standby, mobile, and distributed power generation, its financial performance and outlook. It also covers Cummins' strategy to achieve 8-10% annual revenue growth through market expansion, gaining market share in segments where it has leadership, and pursuing adjacencies.
This document provides an overview of Cummins Power Generation's investor conference in September 2006. It introduces the company's leadership team and other important people. It then discusses Cummins' strategic principles, disclosure of forward-looking statements, and the agenda for the conference, which includes discussing the power generation market, Cummins' financial performance, and sustainability of its performance through growth opportunities and building blocks.
V-Guard is an electrical equipment company that has experienced strong 48% annual growth over the past few years, significantly outpacing its industry. It has expanded its product portfolio and market presence, positioning it for continued 30% annual profit growth. The company focuses on quality, after-sales service, and investment in technology, manufacturing, branding and distribution. It has a transparent governance model and trades at a reasonable valuation given its growth, with upside potential if margins increase further. Its main risks are from commodity price fluctuations, seasonal sales, macroeconomic changes and potential new large competitors.
This document provides an overview of the global energy industry and Royal Dutch Shell's position within it. It analyzes industry trends, Shell's operations and competitors, scenarios for future energy demand, and Shell's strategies. The document compares a "Scramble" scenario of uncoordinated development to Shell's preferred "Blueprints" scenario of coordinated investment and policy to transition to a lower carbon future.
VISTEON - Benefícios do molde protótipo no desenvolvimento de novos produtos ...Robtec
This document outlines Visteon's product development strategy for new exterior auto parts. It involves 8 phases: 1) CAD design and analysis, 2) SLA prototype construction, 3) prototype injection tooling, 4) dimensional verification, 5) product shipment, 6) performance validation, 7) production tooling, and 8) product launch. It then discusses Visteon's partnership with Robtec to outsource the SLA prototype, tooling, and shipping phases.
1) Terex Materials Processing & Mining (MP&M) is a $2.4 billion provider of surface mining and aggregate equipment solutions worldwide.
2) MP&M has a solid foundation of products, geographic presence, and talent, and is pursuing profitable growth through its machinery and aftermarket businesses.
3) The mining equipment market is experiencing trends toward larger-size machines, higher production rates, and lower costs per ton to help overcome challenges in skilled labor shortages.
This document provides an overview of a Cummins Power Generation investor conference in September 2006. It introduces the conference speakers and agenda. The agenda includes discussing Cummins' market position in standby, mobile, and distributed power generation, its financial performance and outlook. It also covers Cummins' strategy to achieve 8-10% annual revenue growth through market expansion, gaining market share in segments where it has leadership, and pursuing adjacencies.
This document provides an overview of Cummins Power Generation's investor conference in September 2006. It introduces the company's leadership team and other important people. It then discusses Cummins' strategic principles, disclosure of forward-looking statements, and the agenda for the conference, which includes discussing the power generation market, Cummins' financial performance, and sustainability of its performance through growth opportunities and building blocks.
V-Guard is an electrical equipment company that has experienced strong 48% annual growth over the past few years, significantly outpacing its industry. It has expanded its product portfolio and market presence, positioning it for continued 30% annual profit growth. The company focuses on quality, after-sales service, and investment in technology, manufacturing, branding and distribution. It has a transparent governance model and trades at a reasonable valuation given its growth, with upside potential if margins increase further. Its main risks are from commodity price fluctuations, seasonal sales, macroeconomic changes and potential new large competitors.
This document provides an overview of the global energy industry and Royal Dutch Shell's position within it. It analyzes industry trends, Shell's operations and competitors, scenarios for future energy demand, and Shell's strategies. The document compares a "Scramble" scenario of uncoordinated development to Shell's preferred "Blueprints" scenario of coordinated investment and policy to transition to a lower carbon future.
VISTEON - Benefícios do molde protótipo no desenvolvimento de novos produtos ...Robtec
This document outlines Visteon's product development strategy for new exterior auto parts. It involves 8 phases: 1) CAD design and analysis, 2) SLA prototype construction, 3) prototype injection tooling, 4) dimensional verification, 5) product shipment, 6) performance validation, 7) production tooling, and 8) product launch. It then discusses Visteon's partnership with Robtec to outsource the SLA prototype, tooling, and shipping phases.
1) Terex Materials Processing & Mining (MP&M) is a $2.4 billion provider of surface mining and aggregate equipment solutions worldwide.
2) MP&M has a solid foundation of products, geographic presence, and talent, and is pursuing profitable growth through its machinery and aftermarket businesses.
3) The mining equipment market is experiencing trends toward larger-size machines, higher production rates, and lower costs per ton to help overcome challenges in skilled labor shortages.
Tonbridge Power Inc. is developing a 345 km, 300 MW transmission line (MATL) in the Western United States to transport electricity. MATL has obtained all necessary permits and financing, and transmission line capacity has been fully sold. The project is on schedule, with major equipment ordering and construction starting in Q2 2010 and the entire system commissioning targeted for Q2 2011. MATL has formed a public private partnership with Western Area Power Administration, with MATL taking on most construction and commercial risks and Western agreeing to purchase capacity and ensure the project meets investment grade compliance standards. The MATL project represents a new model for allocating risk between private and public partners to facilitate infrastructure development.
The document is an investor presentation by AMG Advanced Metallurgical Group N.V. It provides an overview of AMG, including that it is listed on the NYSE Euronext Amsterdam, has over $1 billion in annual revenues and provides specialty metal alloys and engineering systems. It then summarizes AMG's business units, products, end markets and growth strategy, highlighting its focus on critical raw materials and growth through operational efficiency, vertical integration and EPS growth.
Bill Stankeiwicz Copy Scope 2010 Pentair CompanyBillStankiewicz
The document discusses lean material flow in production operations. It provides an overview of Pentair, a global manufacturer, and their lean management system called PIMS. PIMS focuses on reducing waste through seven lean transformation disciplines including material flow. Effective material flow management can improve on-time delivery, costs, productivity and more. The document outlines Pentair's approach to material flow including developing a plan for every part, creating a single purchased parts supermarket, and designing a 3-year plant flow plan to eliminate forklifts except at docks.
This document is Cummins Inc.'s 2002 Annual Report. It provides an overview of Cummins' businesses, financial performance, and key highlights from 2002. Specifically, it notes that Cummins' net sales in 2002 were $5.9 billion, up 3% from 2001. It also reported net earnings of $82 million in 2002 compared to a net loss of $103 million in 2001. Additionally, it summarizes Cummins' four main business units and provides an update on strategic partnerships and new business initiatives in 2002.
This document is Cummins Inc.'s 2002 Annual Report. It provides an overview of Cummins' businesses, financial performance, and key highlights from 2002. Specifically, it notes that Cummins' net sales in 2002 were $5.9 billion, up 3% from 2001. It also reported net earnings of $82 million in 2002 compared to a net loss of $103 million in 2001. Additionally, it summarizes Cummins' four main business units and provides an update on strategic partnerships and new business initiatives in 2002.
This document provides an overview and agenda for Lear Corporation's presentation at the 2006 Morgan Stanley Global Automotive Conference. The presentation will cover Lear's company overview, product strategies and operating priorities, and financial update. Lear aims to focus its product lines and improve global competitiveness. It seeks to strengthen its leadership in seating and grow its electrical and electronic products while exploring strategic options for its interior business. Lear works to improve quality, diversify its customer base, and lower costs through restructuring and expanding its global low-cost footprint.
This investor presentation provides an overview of AMG Advanced Metallurgical Group N.V.:
- AMG operates businesses in advanced materials, engineering systems, graphite mining and processing, and mining. It has facilities worldwide and 3,100 employees.
- In the first half of 2012, advanced materials contributed 67% of revenue and 62% of EBITDA, while engineering systems contributed 21% of revenue and 15% of EBITDA.
- AMG focuses on providing specialty metals and materials for growing end markets like energy, aerospace, and infrastructure. It mines or processes 13 critical raw materials identified as strategic priorities.
- Recent developments include extending its credit facility by $62 million and approving
The document is an investor presentation for AMG Advanced Metallurgical Group from July 2012. It provides an overview of AMG, including that it is listed on the NYSE Euronext Amsterdam exchange, had 2011 revenues of $1.351 billion and EBITDA of $110.1 million. It also summarizes AMG's business units, products, end markets, strategy to increase shareholder value through revenue growth, productivity gains, and acquisitions.
This document discusses Videocon Industries Ltd., an Indian consumer durable company. It provides details on the consumer durable industry in India and Videocon's products, sales organization structure, and approach to sales forecasting. The key points are:
1) Videocon operates in a highly competitive industry that is growing rapidly due to increasing disposable incomes in India.
2) Videocon's main products include washing machines, color TVs, air conditioners, and refrigerators. It focuses on R&D and technology partnerships.
3) Videocon uses a bottom-up sales forecasting approach considering various economic factors to estimate sales and set targets.
Christopher M. Connor, Chairman and CEO of The Sherwin-Williams Company, presented forward-looking statements about sales, earnings, and other matters. The presentation discussed Sherwin-Williams' financial highlights in 2007 including $8.01 billion in net sales and $616 million in income. It also reviewed the company's diversified customer base, global market share as one of the top coatings manufacturers worldwide, and competitive strengths including controlled distribution, leading technology, and growth from acquisitions.
The document is an investor presentation for ING Benelux Conference in September 2012. It provides an overview of AMG Advanced Metallurgical Group including key metrics like revenues, EBITDA, employees and facilities. It then summarizes the company's business units, products, end markets and provides highlights on recent financial performance. The presentation aims to provide investors an update on AMG's operations and growth opportunities.
Terex will acquire Fantuzzi Industries, a global leader in port equipment, for €215 million. Fantuzzi has 2007 revenues of €447 million and provides a range of port equipment including straddle carriers, rail/rubber tired gantry cranes, reach stackers, and mobile harbor cranes. The acquisition will expand Terex's crane portfolio, provide exposure to new attractive end markets in infrastructure, and is expected to be accretive to EPS by the end of 2009. Fantuzzi has factories and sales offices globally and market leading positions in straddle carriers and reach stackers.
Terex will acquire Fantuzzi Industries, a global leader in port equipment, for €215 million. Fantuzzi has 2007 revenues of €447 million and facilities in Italy, Germany, and China. The acquisition provides growth in the infrastructure sector, diversifies Terex's crane portfolio, and leverages Fantuzzi's market leading positions in straddle carriers and reach stackers. Terex expects the deal to be accretive to EPS by the end of 2009 through sourcing and manufacturing synergies.
air products & chemicals 2008 Feb11 Lehmanfinance26
This document provides an overview of Air Products, including its business segments, financial performance, growth opportunities, and outlook. Some key points:
- Air Products has a diverse portfolio across gases, equipment, and technologies with long-term contracts providing stability.
- The company has delivered strong sales and earnings growth in recent years and aims to continue expanding margins and improving returns.
- Major growth opportunities exist in hydrogen, oxygen for gasification, and other energy and environmental applications.
- Air Products expects to sustain double-digit earnings growth through focus on productivity and margins while maintaining its leadership in industrial gases.
This document provides an overview of Curtiss-Wright Corporation and why it is a good investment opportunity. It states that Curtiss-Wright is positioned for solid organic and acquisition-driven growth, supplies innovative critical technologies, and has long-standing customer relationships and a reputation as a trusted supplier. The presentation also provides financial projections showing sales growth from acquisitions and strong earnings growth through 2017.
The document discusses the need for marketers to become more professional and accountable. It argues that without excellent marketing, companies do not have a sustainable future. Currently, many CFOs do not see marketing as crucial in determining strategy due to marketers' reluctance to be accountable for financial metrics. The document advocates for marketers to focus on financial metrics like profits, costs, and return on assets/sales in order to gain influence over corporate strategy and improve their relationship with other executives.
This document discusses advanced tools for risk management and asset pricing. It contains an assignment analyzing credit default swap (CDS) term structures for three companies - Danone, Carrefour and Tesco. The assignment involves:
1) Deriving hazard rate term structures from CDS data assuming piecewise constant and constant default intensities. Constant intensities overestimate short-term but underestimate long-term default probabilities.
2) Performing sensitivity analysis on how hazard rates change with default frequency, recovery rates, and maturity. Higher frequencies and recovery rates increase hazard rates.
3) Calculating cumulative default probabilities from hazard rates.
4) Deriving portfolio loss distributions under a Gaussian copula model for different correlation parameters.
Tonbridge Power Inc. is developing a 345 km, 300 MW transmission line (MATL) in the Western United States to transport electricity. MATL has obtained all necessary permits and financing, and transmission line capacity has been fully sold. The project is on schedule, with major equipment ordering and construction starting in Q2 2010 and the entire system commissioning targeted for Q2 2011. MATL has formed a public private partnership with Western Area Power Administration, with MATL taking on most construction and commercial risks and Western agreeing to purchase capacity and ensure the project meets investment grade compliance standards. The MATL project represents a new model for allocating risk between private and public partners to facilitate infrastructure development.
The document is an investor presentation by AMG Advanced Metallurgical Group N.V. It provides an overview of AMG, including that it is listed on the NYSE Euronext Amsterdam, has over $1 billion in annual revenues and provides specialty metal alloys and engineering systems. It then summarizes AMG's business units, products, end markets and growth strategy, highlighting its focus on critical raw materials and growth through operational efficiency, vertical integration and EPS growth.
Bill Stankeiwicz Copy Scope 2010 Pentair CompanyBillStankiewicz
The document discusses lean material flow in production operations. It provides an overview of Pentair, a global manufacturer, and their lean management system called PIMS. PIMS focuses on reducing waste through seven lean transformation disciplines including material flow. Effective material flow management can improve on-time delivery, costs, productivity and more. The document outlines Pentair's approach to material flow including developing a plan for every part, creating a single purchased parts supermarket, and designing a 3-year plant flow plan to eliminate forklifts except at docks.
This document is Cummins Inc.'s 2002 Annual Report. It provides an overview of Cummins' businesses, financial performance, and key highlights from 2002. Specifically, it notes that Cummins' net sales in 2002 were $5.9 billion, up 3% from 2001. It also reported net earnings of $82 million in 2002 compared to a net loss of $103 million in 2001. Additionally, it summarizes Cummins' four main business units and provides an update on strategic partnerships and new business initiatives in 2002.
This document is Cummins Inc.'s 2002 Annual Report. It provides an overview of Cummins' businesses, financial performance, and key highlights from 2002. Specifically, it notes that Cummins' net sales in 2002 were $5.9 billion, up 3% from 2001. It also reported net earnings of $82 million in 2002 compared to a net loss of $103 million in 2001. Additionally, it summarizes Cummins' four main business units and provides an update on strategic partnerships and new business initiatives in 2002.
This document provides an overview and agenda for Lear Corporation's presentation at the 2006 Morgan Stanley Global Automotive Conference. The presentation will cover Lear's company overview, product strategies and operating priorities, and financial update. Lear aims to focus its product lines and improve global competitiveness. It seeks to strengthen its leadership in seating and grow its electrical and electronic products while exploring strategic options for its interior business. Lear works to improve quality, diversify its customer base, and lower costs through restructuring and expanding its global low-cost footprint.
This investor presentation provides an overview of AMG Advanced Metallurgical Group N.V.:
- AMG operates businesses in advanced materials, engineering systems, graphite mining and processing, and mining. It has facilities worldwide and 3,100 employees.
- In the first half of 2012, advanced materials contributed 67% of revenue and 62% of EBITDA, while engineering systems contributed 21% of revenue and 15% of EBITDA.
- AMG focuses on providing specialty metals and materials for growing end markets like energy, aerospace, and infrastructure. It mines or processes 13 critical raw materials identified as strategic priorities.
- Recent developments include extending its credit facility by $62 million and approving
The document is an investor presentation for AMG Advanced Metallurgical Group from July 2012. It provides an overview of AMG, including that it is listed on the NYSE Euronext Amsterdam exchange, had 2011 revenues of $1.351 billion and EBITDA of $110.1 million. It also summarizes AMG's business units, products, end markets, strategy to increase shareholder value through revenue growth, productivity gains, and acquisitions.
This document discusses Videocon Industries Ltd., an Indian consumer durable company. It provides details on the consumer durable industry in India and Videocon's products, sales organization structure, and approach to sales forecasting. The key points are:
1) Videocon operates in a highly competitive industry that is growing rapidly due to increasing disposable incomes in India.
2) Videocon's main products include washing machines, color TVs, air conditioners, and refrigerators. It focuses on R&D and technology partnerships.
3) Videocon uses a bottom-up sales forecasting approach considering various economic factors to estimate sales and set targets.
Christopher M. Connor, Chairman and CEO of The Sherwin-Williams Company, presented forward-looking statements about sales, earnings, and other matters. The presentation discussed Sherwin-Williams' financial highlights in 2007 including $8.01 billion in net sales and $616 million in income. It also reviewed the company's diversified customer base, global market share as one of the top coatings manufacturers worldwide, and competitive strengths including controlled distribution, leading technology, and growth from acquisitions.
The document is an investor presentation for ING Benelux Conference in September 2012. It provides an overview of AMG Advanced Metallurgical Group including key metrics like revenues, EBITDA, employees and facilities. It then summarizes the company's business units, products, end markets and provides highlights on recent financial performance. The presentation aims to provide investors an update on AMG's operations and growth opportunities.
Terex will acquire Fantuzzi Industries, a global leader in port equipment, for €215 million. Fantuzzi has 2007 revenues of €447 million and provides a range of port equipment including straddle carriers, rail/rubber tired gantry cranes, reach stackers, and mobile harbor cranes. The acquisition will expand Terex's crane portfolio, provide exposure to new attractive end markets in infrastructure, and is expected to be accretive to EPS by the end of 2009. Fantuzzi has factories and sales offices globally and market leading positions in straddle carriers and reach stackers.
Terex will acquire Fantuzzi Industries, a global leader in port equipment, for €215 million. Fantuzzi has 2007 revenues of €447 million and facilities in Italy, Germany, and China. The acquisition provides growth in the infrastructure sector, diversifies Terex's crane portfolio, and leverages Fantuzzi's market leading positions in straddle carriers and reach stackers. Terex expects the deal to be accretive to EPS by the end of 2009 through sourcing and manufacturing synergies.
air products & chemicals 2008 Feb11 Lehmanfinance26
This document provides an overview of Air Products, including its business segments, financial performance, growth opportunities, and outlook. Some key points:
- Air Products has a diverse portfolio across gases, equipment, and technologies with long-term contracts providing stability.
- The company has delivered strong sales and earnings growth in recent years and aims to continue expanding margins and improving returns.
- Major growth opportunities exist in hydrogen, oxygen for gasification, and other energy and environmental applications.
- Air Products expects to sustain double-digit earnings growth through focus on productivity and margins while maintaining its leadership in industrial gases.
This document provides an overview of Curtiss-Wright Corporation and why it is a good investment opportunity. It states that Curtiss-Wright is positioned for solid organic and acquisition-driven growth, supplies innovative critical technologies, and has long-standing customer relationships and a reputation as a trusted supplier. The presentation also provides financial projections showing sales growth from acquisitions and strong earnings growth through 2017.
The document discusses the need for marketers to become more professional and accountable. It argues that without excellent marketing, companies do not have a sustainable future. Currently, many CFOs do not see marketing as crucial in determining strategy due to marketers' reluctance to be accountable for financial metrics. The document advocates for marketers to focus on financial metrics like profits, costs, and return on assets/sales in order to gain influence over corporate strategy and improve their relationship with other executives.
This document discusses advanced tools for risk management and asset pricing. It contains an assignment analyzing credit default swap (CDS) term structures for three companies - Danone, Carrefour and Tesco. The assignment involves:
1) Deriving hazard rate term structures from CDS data assuming piecewise constant and constant default intensities. Constant intensities overestimate short-term but underestimate long-term default probabilities.
2) Performing sensitivity analysis on how hazard rates change with default frequency, recovery rates, and maturity. Higher frequencies and recovery rates increase hazard rates.
3) Calculating cumulative default probabilities from hazard rates.
4) Deriving portfolio loss distributions under a Gaussian copula model for different correlation parameters.
This document defines accounting and financial reporting. It discusses:
1) Accounting measures and reports on business activities to provide useful information for managing and evaluating businesses. Financial accounting provides regulated external reporting, while management accounting provides internal reporting.
2) Financial statements like the balance sheet, income statement, and statement of cash flows are the key products of financial accounting. They show a business's financial performance and position.
3) Financial statement analysis examines these statements through methods like common size analysis, trend analysis, and reclassifying statement line items to calculate key metrics and ratios. This provides insights into a company's profitability, liquidity, and financial health.
This document provides an overview of private equity and initial public offerings (IPOs).
It discusses the characteristics of private equity including venture capital financing for startups and leveraged buyouts (LBOs) for mature companies. It also covers legal structures, compensation models, restrictions to align investor and manager interests, and methods for valuing private companies.
The document then discusses IPO procedures including the rationale for going public, determining an offering price, and differences in approaches between countries.
Market abuse directive and market manipulationBank Industry
The document provides an overview of the European Market Abuse Directive (MAD) of 2003. It discusses the key goals of the MAD, including harmonizing regulations across EU member states to create an integrated financial market and ensure market integrity. It outlines different types of market manipulation according to the MAD, including transaction-based and information-based manipulation. It also discusses exceptions to market manipulation like accepted market practices and safe harbors. The document uses examples and case studies to illustrate different provisions and concepts related to the MAD.
The document discusses pricing the Margrabe option using Monte Carlo simulation and an explicit closed-form solution. It begins by defining the Margrabe option and explaining its use. It then presents Margrabe's closed-form solution, which prices the option as a European call using a change of numeraire approach. Next, it analyzes the option's sensitivity to various parameters. Finally, it outlines different option pricing methods and focuses on Monte Carlo simulation and the change of numeraire approach.
The Black-Litterman model estimates expected market returns while avoiding issues with Markowitz optimization. It uses weights from a well-diversified index and adjusts them based on the investor's views, applying Bayesian statistics. The methodology involves estimating variables, making assumptions about the market proxy and covariance matrix, specifying an investor's views, and combining all the information in an optimization equation to minimize distance from the market portfolio and views. OLS regression estimates parameters by minimizing the sum of squared errors to make the model's predictions as close to the actual values as possible on average. It has an analytic solution and is superior under certain assumptions proved by the Gauss-Markov theorem.
The document summarizes key concepts from an econometrics course, including:
1) Models for describing stock market returns including separating permanent and temporary components and implications for predictability and volatility.
2) ARMA models for modeling time series and selecting appropriate lag lengths using information criteria.
3) Volatility models including GARCH for capturing time-varying conditional variance and leverage effects.
4) Improving volatility estimates using intraday data through realized volatility or range-based approaches.
This document discusses risk management techniques for interest rate risk, credit risk, and market risk. It provides details on methods to calculate interest rate risk such as using interest rate gaps and duration gaps. It also discusses the Basel Committee framework for interest rate risk management. For credit risk, the document outlines estimating expected loss and unexpected loss. It discusses tools for estimating market risk and different applications of market risk models. The document also covers measuring volatility, limitations of the value-at-risk approach, the Basel Accords, insurance solvency regulations, and changes to risk management after the financial crisis.
1) Value is best expressed by long-term cash flow trends and represents the interests of all stakeholders. There is a direct link between future cash flows and competitive advantage - the higher the competitive advantage, the higher future cash flows and value will be.
2) To value a firm, its positioning in the market must be understood by analyzing strengths/weaknesses versus peers using models like Porter's Five Forces. Porter's model outlines internal and external factors that determine profitability, like industry rivalry and barriers to entry.
3) Strategies to boost value creation include M&A transactions, capital structure optimization, and disinvesting from weak businesses. Governance and compensation schemes should incentivize management to recognize and implement
Economic Risk Factor Update: June 2024 [SlideShare]Commonwealth
May’s reports showed signs of continued economic growth, said Sam Millette, director, fixed income, in his latest Economic Risk Factor Update.
For more market updates, subscribe to The Independent Market Observer at https://blog.commonwealth.com/independent-market-observer.
OJP data from firms like Vicinity Jobs have emerged as a complement to traditional sources of labour demand data, such as the Job Vacancy and Wages Survey (JVWS). Ibrahim Abuallail, PhD Candidate, University of Ottawa, presented research relating to bias in OJPs and a proposed approach to effectively adjust OJP data to complement existing official data (such as from the JVWS) and improve the measurement of labour demand.
2. Elemental Economics - Mineral demand.pdfNeal Brewster
After this second you should be able to: Explain the main determinants of demand for any mineral product, and their relative importance; recognise and explain how demand for any product is likely to change with economic activity; recognise and explain the roles of technology and relative prices in influencing demand; be able to explain the differences between the rates of growth of demand for different products.
Understanding how timely GST payments influence a lender's decision to approve loans, this topic explores the correlation between GST compliance and creditworthiness. It highlights how consistent GST payments can enhance a business's financial credibility, potentially leading to higher chances of loan approval.
Falcon stands out as a top-tier P2P Invoice Discounting platform in India, bridging esteemed blue-chip companies and eager investors. Our goal is to transform the investment landscape in India by establishing a comprehensive destination for borrowers and investors with diverse profiles and needs, all while minimizing risk. What sets Falcon apart is the elimination of intermediaries such as commercial banks and depository institutions, allowing investors to enjoy higher yields.
BONKMILLON Unleashes Its Bonkers Potential on Solana.pdfcoingabbar
Introducing BONKMILLON - The Most Bonkers Meme Coin Yet
Let's be real for a second – the world of meme coins can feel like a bit of a circus at times. Every other day, there's a new token promising to take you "to the moon" or offering some groundbreaking utility that'll change the game forever. But how many of them actually deliver on that hype?
How Does CRISIL Evaluate Lenders in India for Credit RatingsShaheen Kumar
CRISIL evaluates lenders in India by analyzing financial performance, loan portfolio quality, risk management practices, capital adequacy, market position, and adherence to regulatory requirements. This comprehensive assessment ensures a thorough evaluation of creditworthiness and financial strength. Each criterion is meticulously examined to provide credible and reliable ratings.
Independent Study - College of Wooster Research (2023-2024) FDI, Culture, Glo...AntoniaOwensDetwiler
"Does Foreign Direct Investment Negatively Affect Preservation of Culture in the Global South? Case Studies in Thailand and Cambodia."
Do elements of globalization, such as Foreign Direct Investment (FDI), negatively affect the ability of countries in the Global South to preserve their culture? This research aims to answer this question by employing a cross-sectional comparative case study analysis utilizing methods of difference. Thailand and Cambodia are compared as they are in the same region and have a similar culture. The metric of difference between Thailand and Cambodia is their ability to preserve their culture. This ability is operationalized by their respective attitudes towards FDI; Thailand imposes stringent regulations and limitations on FDI while Cambodia does not hesitate to accept most FDI and imposes fewer limitations. The evidence from this study suggests that FDI from globally influential countries with high gross domestic products (GDPs) (e.g. China, U.S.) challenges the ability of countries with lower GDPs (e.g. Cambodia) to protect their culture. Furthermore, the ability, or lack thereof, of the receiving countries to protect their culture is amplified by the existence and implementation of restrictive FDI policies imposed by their governments.
My study abroad in Bali, Indonesia, inspired this research topic as I noticed how globalization is changing the culture of its people. I learned their language and way of life which helped me understand the beauty and importance of cultural preservation. I believe we could all benefit from learning new perspectives as they could help us ideate solutions to contemporary issues and empathize with others.
Falcon stands out as a top-tier P2P Invoice Discounting platform in India, bridging esteemed blue-chip companies and eager investors. Our goal is to transform the investment landscape in India by establishing a comprehensive destination for borrowers and investors with diverse profiles and needs, all while minimizing risk. What sets Falcon apart is the elimination of intermediaries such as commercial banks and depository institutions, allowing investors to enjoy higher yields.
Abhay Bhutada, the Managing Director of Poonawalla Fincorp Limited, is an accomplished leader with over 15 years of experience in commercial and retail lending. A Qualified Chartered Accountant, he has been pivotal in leveraging technology to enhance financial services. Starting his career at Bank of India, he later founded TAB Capital Limited and co-founded Poonawalla Finance Private Limited, emphasizing digital lending. Under his leadership, Poonawalla Fincorp achieved a 'AAA' credit rating, integrating acquisitions and emphasizing corporate governance. Actively involved in industry forums and CSR initiatives, Abhay has been recognized with awards like "Young Entrepreneur of India 2017" and "40 under 40 Most Influential Leader for 2020-21." Personally, he values mindfulness, enjoys gardening, yoga, and sees every day as an opportunity for growth and improvement.
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Vicinity Jobs’ data includes more than three million 2023 OJPs and thousands of skills. Most skills appear in less than 0.02% of job postings, so most postings rely on a small subset of commonly used terms, like teamwork.
Laura Adkins-Hackett, Economist, LMIC, and Sukriti Trehan, Data Scientist, LMIC, presented their research exploring trends in the skills listed in OJPs to develop a deeper understanding of in-demand skills. This research project uses pointwise mutual information and other methods to extract more information about common skills from the relationships between skills, occupations and regions.
Does teamwork really matter? Looking beyond the job posting to understand lab...
Bailout.consulting.brevini
1. Silvia Baiocco
Andrea Granelli
Alessandro Grassano
Gian Marco Lago
Giulio Laudani
Bailout Consulting
2. 1. Analysis of the company:
I. Group of reference
II. History
III. Strategic Business Units
2. Analysis of the industry:
I. Porter’s five forces model
II. SWOT analysis
3. ROIC expectations:
I. Assumptions
II. Results
3.
4. Brevini India and Brevini Finland Brevini South Africa
Brothers Renato, Luciano, and Type Approval Certificate
Corrado Brevini establish FRATELLI
BREVINI in Reggio Emilia.
Brevini Power Transmission
Brevini UK, Brevini Svenska,
division
Brevini Espana, and Brevini
Canada
1960 1970 1980 1990 2000 2009
New production plant in
Brevini China, Korea, South- China
east Asia (Singapore), Brevini
Brevini France, Australia, and New Zealand.
Brevini USA Brevini Latino Americana in Acquisition of the German
Brevini in Germany Brazil. company “P.I.V. Antrieb
Werner Reimers”
5. SBU MAIN CUSTOMER DISTRIBUTION GEOGRAPHIC PRODUCT LINES/ SERVICES
TYPE CHANNEL AREAS
Planetary gear units for
Brevini Riduttori Energy Direct-distribution Worldwide industrial applications and
mobile machines
Parallel and right-angle shaft
Material Handling
PIV Drives Direct-distribution Worldwide gear units and speed
Transport
variators
Hoisting and
Brevini Winches Construction Direct-distribution Worldwide
recovery systems
New compact gear units for
Waste Water /
Piv Posiplan Direct-distribution Worldwide shaft-mounted
Recycling
industrial applications
6. Revenue by family in 2009
Agricolture
Brevini Power Transmission
7% 5% Industrial Equipment
8%
operates in the Industrial
Material Transport
19%
9% Construction
Machinery sector (NACE 2811) Marine/Port Infrastruture
Mining
11%
15%
Energy
Plastic/rubber
12%
14% Recycling
Sourced by Brevini Power Transmission website
7. Geographic distribution in 2009
12%
23%
Italia
18% UE (ex-Italy)
Asia-Pacifico
America
47%
Sourced by Brevini Power Transmission website
8. Buyer Power: Moderate Supplier Power: Moderate
•Brand reputation is of negligible value in this market •Suppliers operate in the Commodity sector, so they have
•Buyer power is weakened by the substantial number very low power due to low differentiation of products
of buyers in this market, but a big part of the revenues •Raw materials purchasing carries prices volatility and
Competitive aggressiveness: Moderate
comes from a small number of big commissions exchange rate risk
•There is the possibility to easily switch due to the high •In the last 20 years there has been an increasing level of
goods standardization, except for the engine sub-sector prices due to the continuous global economic
•The market is mature and it shows a global slow growth rate growth, sustained by high demand from China and
other emerging economies
(1,6%), but there are differences between the different geographic area
and sub-sector. Competitive aggressiveness:
•The concentration in the market is low, the top 5 player account for
the 12% of the overall market
Threat of new entry: Low
•There is an high cost to convert theThreats of substitution: Moderate the
production, this increase
•High level of fixed costs and capital to stay in the market as long as exist but used-products sold
competitors attitude investment •Substitutes as such do not possible
•Economies of scale privately may be considered as an alternative. This would
•Government regulations and high level of intellectual be cheaper than buying brand new products; however, the
property machinery is unlikely to be under any kind of warranty if
sold privately which may pose a high risk to buyers as the
•Recent poor growth in the market
machines are expected to work in difficult heavy-duty
environments
9. Revenue by geographic area
Market segmentation
2%
16%
36%
28% 38% 23%
25%
Engine, Turbine and Related
32%
Wood and Plastic Process
Americas Asia-Pacific
Metalworking
Europe Rest of the world Other Purpose
Sourced by DataMonitor
10. Strengths: Weaknesses:
•Capability to exploit economies of scale •The firm is auto-financing,: exploiting its operating
•A flexible structure cash flows
•The main good is highly appreciated by the market •It is a family-owned business are they good
because of lower prices with respect to traditional manger on the long run?
technologies possibility of configuration according to
the costumer’s needs and high versatility
•Innovating technologies and strong investment in
R&S
Opportunities: Threats:
•The recent investment in USA and China could allow •The recent crisis could lead to a new phase of
the company to capture the higher expected growth aggregation between companies
of those markets
•The EU environmentally friendly legislation can boost
Brevini’s growth
11. After analysing the market and our
company, we identified 4 competitors which
operate in the same market and whose
businesses are tightly connected to
Brevini’s
Using the historical data available for our
competitors, we built a statistical periodic
fit with the least squares method
and, hence, we were able to determine the
future ROICs for those companies
14. ◦ We applied the ROIC trend deduced from our
competitors to Brevini, keeping in mind that:
• We have expected a constant growth rate for the IC, which is explained
by Brevini’s will to bust its production and geographical expansion
The parameters of this function respond to the qualitative sentiments
that have been presented in our SWOT analysis
We have assumed an higher “pro-cyclical” movement than most of the
other competitors and a more flexible capital structure, which has
allowed Brevini to reduce the negative effect of the revenue contraction
this has lead to an upward asymmetrical behavior
15.
16. 1. Enterprise DCF
I) WACC estimate
a) Capital structure : target structure, D (book value), E (iteration
method)
b) Ke Capital Asset Pricing Model
c) Kd Spread approach
II) Free Cash Flow estimate
a) Time frames : scenarios
b) Main assumptions
III) Results
IV) Sensitivity analyses
2. Economic profit
17. ◦ The key element of DCF and how we have estimated
them:
Ke: we have used a Market model, based on the CAPM
WACC
Kd: we have used the Debt ratio to find the
appropriate rating and the cost of debt.
We have analyzed the historical path of the main
financial items to find out the relationship between
them and any existing trend.
FCF
We have estimated the revenues growth rate through a
three period model that describes our qualitative
judgment on the company.
18. Capital structure :
◦ Our target has been the characteristic median Debt-to-Equity
ratio in the industrial machinery market, which is about 14%
(source: McKinsey)
◦ This goal is too far from the present structure, so we have
developed a correction in the DCF model, to better fit our
hypothesis with those of the model
◦ The company is not financially distressed, therefore the book
value of the net debt can be a good proxy of its market value
◦ The market equity value has been calculated through an iteration
◦ Our solution has been to develop a changing structure
from 2010 to 2014, which has lead to a variable
WACC, due to changes in Ke, Kd and weights
19. o Ke has been calculated using the formula:
Risk free + Beta*Mkt premium
o The risk free chosen is an equally weighted blend
between the most recent German and Italian 10y zero
coupon bonds rate, because the company is mainly
exposed in those two countries
o The market risk premium has been taken from the
paper by Fernandez. It is an average between the
German and Italian ones for the same reason as before
o The marginal tax rate chosen is 30%
20. We have chosen our comparables
◦ The criteria used have been: similar Business and
MRO LN
Man se Kawasaki Okuma Mitsubishi
Geographic Area
We have built a table to find out the sector
unlevered beta (Hamada formula)
◦ The weights used have beenUNLEVERED WEIGTH
COMPARABLES BETA LEVERED NET DEBT EQUITY (MKT CAP) (tot.Mkt cap/MktNORMAL
BETA
WEIGHT i)
Man SE
and then normalized. These weights allow us to
1,557 € 2.634,00 € 5.538,87 1,17 322% 4,01%
give more importance to the smallest companies
Okuma 1,434 - € 32,17 € 617,95 1,49
in our portfolio
2889% 35,98%
Mitsubishi 0,958 € 9.657,82 € 8.302,72 0,53 215% 2,68%
◦ The Betas for the comparables have been
Kawasaki 0,729 € 3.117,09 € 2.949,44 0,42
calculated using the 2004-2009 interval, monthly
605% 7,54%
frequency, and the MSCI World Index
MRO LN 1,598 € 362,49 € 446,49 1,02 3999% 49,79%
Weighted Average 1,14 8031% 100,00%
21. We have re-levered the beta of the sector:
◦ We have estimated a debt/equity structure trend
converging to a target structure in 2025
◦ The target structure has been decided using the average of
the steadiest comparables
◦ Assuming a slow approach to the target value, we have
developed a variation to the DCF model. Mainly, we re-
levered the beta using different target D/E between 2010
and 2014
23. Kd: we have estimated a change in the rating of
our company, following our expectations:
◦ We have assumed a variable interest expense linked to
the German and Italian 5y bonds + the premium
corresponding to its rating (Spread Approach, though
Interest Coverage Ratio calculation)
◦ We have taken into account the possible future
monetary policy, which is going to cause the increase
of the risk free rate, but at the same time our rating
will improve and, so, the spread reduce. In
conclusion, we hypnotised a stable level of Kd of
5.5%, considering the result of the two opposite effects
24. 2010(E) 2011 (E) 2012 (E) 2013 (E) 2014 (E) 2015(E)
10,58% 10,58% 10,60% 10,59% 10,61% 10,50%
Betas
Mkt p. 1,15 1,35 1,55
5,25% 9,12% 9,12% 9,95%
5,85% 9,67% 9,67% 10,58%
6,45% 10,21% 10,21% 11,22%
The chart above is a sensitivity analysis on the WACC. The row
represents a standard deviation range from the beta value used, the
column is a range of possible market premiums.
25. 1. We have divided our model into three time periods:
◦ 2010-2014 We have built an IS & BS by estimating each item
◦ 2015-2024 By estimating Key drivers
◦ 2025-infinity We have computed a terminal steady growth rate using
macroeconomical inputs
2. We have chosen different tools to implement our
proxies for each period, the ratio for each of them is:
◦ In the first period, we have less uncertainty, so we have felt
confident enough to develop three scenarios with a
considerably low standard deviation
◦ In the second period, due to higher uncertainty, we have
developed three scenarios with a higher volatility
◦ In the last period, we have relied on the general accepted
belief that the firm will reach a certain stability and will
follow the global growth rate
26. We have set up three different scenarios:
◦ The Normal case will assume that the firm will follow its forecast growth
path, which has been estimated through a periodic function based on
historical data
◦ The Best scenario is going to assume that the firm’s revenues will have
the same growth rate as the market when the economy faces a
downturn, while it will keep its forecast growth in positive economic
conditions.
◦ The Worst scenario will assume that the firm will keep behaving as
forecast in negative conditions and will not be able to outperform the
market growth in positive circumstances and, therefore, as a proxy, we
have chosen the market growth rate itself as the path that it will follow.
27. The Revenue has been forecast by means of a statistical
periodic fit: we have found the periodic function that
approximates the data we had with the least squares method
The properties of the function we obtained confirmed the
qualitative analysis of the revenue’s growth:
◦ The minimum of the function is in 2011, it grows to reach the
pre crisis level until 2013 and it reaches the maximum in 2014
2010 (E) 2011(E) 2012 (E) 2013 (E) 2014 (E)
Revenue 202.280 185.532 239.336 315.325 361.362
% (t+1-t)/t -8,19% -8,28% 29% 31,75% 14,6%
28. 600000
400000
Normal
200000 Worst
Best
0
2008 2009 2010 2011 2012 2013 2014
The expected CAGR of the three scenarios is 0,042% with a
variance of 20%
CAGR Probabilities
Best case 6% 2/7
Worst case -11% 1/7
Normal case 1% 4/7
29. During this period, Brevini will experience a “transition”
phase which will lead to a steady growth level
We have set up three different scenarios:
◦ The Best scenario is going to assume an higher growth rate in
comparison to the market the company will be able to increase both
its production and geographical coverage
◦ The Normal case will assume a continuous growth path at a rate lower
than previously, but still higher than the market average
◦ The Worst one will assume the failure of the company to achieve a
satisfying competitive advantage it will reach a steady state level at
the beginning of the period
Our work has been lead both by qualitative and quantitative
analysis:
◦ The qualitative argument is based on the capability to retain extra-
earning thanks to competitive advantage
◦ The quantitative analysis is based on the shift of the geographical
exposure and global growth expectation
30. We have taken the expected value of the
compound annual growth rate of our three
scenarios
About 7,7% with a variance of 80,91%
It means that the company will double its size in 10 years
CAGR Probabilities
Scenario 1 (best) 15% 14%
Scenario 2 (normal) 7% 57%
Scenario 3 (worst) 4,5% 29%
31. “Brevini Group’s industrial plans include substantial
investments [...] because our growth depends on
our presence around the globe […]. We are looking
beyond the crisis and focusing on the recovery that
will arrive,” said Renato Brevini, President of Brevini
Power Transmission
From this we have deduced that the company will
increase its production and its investments starting
from 2012
32. We have assumed an “exotic” function for the COGS, whose parameters
have been set to capture a loss of efficiency due to a revenue
contraction in 2010-11 (less scale efficiency) and then a normalization
in the remaining years
We have linked SGA growth to the COGS for 2/3 and to an intrinsic
growth for 1/3, following the expected business plan
“Other Revenues” is composed of two parts: one correlated to sales for
2/3 and the other independent and pretty steady through time
33. Operating cash represents the minimum amount of cash necessary
for daily business it has been assumed as a fixed percentage of
revenues
Inventories are defined as a percentage of revenues We have
assumed a reduction in production and a disbanding of its inventories
for 2010-11, on the other hand in 2012 there will be an increase to
anticipate the higher revenue-growth expectation
A positive net change has been estimated for Receivables and
Payables. We have also considered a renewed investment in WC to mach
the increase in revenue in 2012-2014.
34. Net PPE is defined as a % of revenue, our estimate consistently matches our
hypothesis on the Invested capital trend
Our estimate on the Debt repayment converges to the target value, as
forecast through our assumptions on the Debt ratio
We have chosen to have a positive trend in PPE, independently from the
revenue growth, due to our strong confidence on the IC hypothesis.
To define the Debt position we have also tried to:
◦ Bound the excess cash into a coherent interval
◦ Ensure enough liquidity availability to sustain the CAPEX and new building
expense
2010 (E) 2011(E) 2012 (E) 2013 (E) 2014 (E)
%PPE 26% 28% 32% 30% 32%
Debt Rep. (5.000) (4.000) (6.000) 17.000 (6.000)
35. Present geographical Target geographical
distribution distribution
America America
12% 20%
23% 30%
18% Asia- Italy
Pacific 12%
47% UE ex UE ex
38%
Italy Italy
We forecast Brevini’s revenue growth also considering the kind of
geographical expansion that we expect the company to follow
and, therefore, making a weighted average of the GDP of each area.
36. We have assumed a unique case, in which the
company reaches a steady growth of
3%, following the global economy
Our estimate has an upper limit to ensure a
terminal ROIC of about 15%, which is in line with
the sector average
The implicit multiple of the terminal value is 7,9
37. PV FCF
60 % of our Enterprise
2010 -14
€ 22.717,14
value depends on the
terminal value
2015-25
€127.587,03
Terminal value
€229.766,28 There isn’t any Non-
EV operating asset in our
€380.070,46
valuation, besides
Debt value
€ 87.771 excess cash
Equity value € 292.299,46
38. The WACC range comes from the sensitivity
analysis made previously
The column variable represents the terminal
growth rate
Wacc
9,58% 10,08% 10,58% 11,08% 11,58%
g
2,5% € 457.074,59 € 412.787,30 € 374.685,31 € 341.644,77 €312.792,54
3,0%
€ 466.979,37 €420.091,34 €380.070,46 € 345.600,54 €315.675,45
3,5%
€478.532,87 € 428.518,41 €386.224,91 € 350.084,01 €318.919,07
39. The WACC range comes from the sensitivity
analysis made previously
The column lines represent the revenue CAGR
of the 2015-24 estimate
Wacc
9,58% 10,08% 10,58% 11,08% 11,58%
CAGR
1,6% €356.297,02 €326.333,93 €300.016,00 €277.739,73 €257.788,76
7,67% €466.979,37 €420.091,34 €380.070,46 €345.600,54 €315.675,45
13,72% €641.169,10 €567.096,85 €504.528,45 €451.211,38 €405.427,37
40. PV of EP € 99.453 The relationship
between ROIC and
PV of Continuing
€104.908 WACC has been
value
negative only for
Invested capital
at start of € 175.709
the first 3 years of
forecast our valuation model
Enterprise value € 380.070
The IC contribution
has been constantly
Equity value € 292.299 increasing in value
41. 100%
Source of value of the Economic profit is mainly the Initial
80%
IC, while the terminal value accounts for 27,37%. Our
60%
assumptions on the IC are consistent with our qualitative
IC0
belief of an
40% increase over time even in the deepening of
the crisis the growth rate in the IC is higher than the
20% PV
revenue’s
0% Terminal value
The chart below shows that the economic profit model is
less dependent on the terminal value hypothesis than the
Economic Enterprise
enterprise DCF one
profit DCF
Economic profit Enterprise DCF
Terminal Value 27,37% 60%
PV 26,05% 40%
IC0 46,05% -
42. Our ROIC expectations trend calculated
through the period function approximation
has been confirmed by the results obtained
through the enterprise DCF method.
43. I. Identification of the right comparables
II. Identification of the value drivers
III. Time framework
IV. Results
44. WARNING: finding companies which have the same mix of
Brevini belongs to the classification NACE 2811, i.e. Manufacture of is
businesses, products and size and at the same time are listed,
engines impossible. Thereforeaircraft, vehicle and cycle engines.
almost and turbines, except the companies which have been picked
NACE 28 indicatesbelong to a very similar market –indicated by the
are those which manufacturers of machinery and equipment.
NACE classification-. Moreover, they either operate in the same
the company has areas or have a similar size.
geographical
been chosen as its
products are
complementary to
those of Brevini:
i.e. they tend to be
used together as a
unique component
the company
has been kept in
consideration since
the beginning of
the work as their
businesses are
tightly correlated
45. Direct multiple: EV/EBITDA Indirect multiple: EV/Sales
Less easily influenced by
different accounting and fiscal More commonly used in times
policies and, hence, more when the company is not achieving
difficult to manipulate or cause very positive margins or is facing a
misleading judgement turnaround moment
Source: Valuation Guide by
Borsa Italiana (2004)
46. When discussing about the time frame to consider, we had to keep in mind
that 2008 and 2009 were years afflicted by the financial crisis.
1. We started with the classical approach, which is using the last available
year, i.e. 2009. The values we obtained where excessively low. This can be
explained by the fact that this year has been considerably affected by the
financial crisis and the situation presented by most of the companies
worldwide, and in particular companies belonging to the industrial
machinery sector, does not do any justice to their real value.
2. We then tried to capture the value of the company by using forecast
data, which we found available only up to 2012. Unfortunately, the
economy is excessively negatively biased during this period, as we do not
expect any recovery before 2011, therefore the values we obtain are again
not doing any justice to the real value of the company.
3. It would have been more appropriate to use data from 2007, when the
company was able to show all its potential and external causes where not
affecting its activity, but unfortunately Brevini data were not available.
4. The ultimate chance we were left with was to consider data from 2008.
2008 financials are available, not too badly influenced by the financial
crisis and therefore sufficiently reliable.
47. Hamworthy Spirax-Sarco Okuma CVTech Comparables' average
Are these results consistent with the previous ones?
EV / EBITDA 08 7,26 8,41 5,02 4,79 6,37
EV / SALES 08 0,63 1,78 0,83 0,60 0,96
YES
Comparables' average Brevini
EV / EBITDA 08 6,37 48.152 EBITDA
EV / SALES 08 0,96 356.054 Sales
You have to take into account that the value we
calculated is slightly lower than the one we get
Brevini
through 1the discounted cash flow model and close
EV 306.732
to the value we obtain in our worst case scenario
EV2 341.693
Mean 324.212
because the unfortunate circumstances which hit
the economy cannot be completely avoided.
48. Orbis and Amadeus Balance sheet information
DataStream Risk free
Central bank of key country and IMF Growth
expectation on GDP
Bloomberg Betas, Mkt cap and Enterprise value
Capital iQ information about competitors
Data Monitor Information about the overall
market
“Market Risk Premium used in 2010 by Analysts
and Companies: a survey with 2.400 answers”, P.
Fernandez and J. del Campo
49. After a careful analysis, we have come to the conclusion that
Brevini is a company that operates in a highly competitive
business which requires a great amount of fixed investments.
On the other hand, it has high growth potential, as it is
planning to expand geographically. Moreover, its products are
very versatile and, hence, can serve different purposes. It also
presents a high efficiency of production, which might come
even handier whether new plants were to be opened by
developing economies of scale . The financial crisis has had a
very negative impact on the company, but we expect a prompt
recovery. We have used different approaches to measure the
value and each time we created a set of assumptions that
were both realistic and thought through. We even tried to
adapt such methods to every specific circumstance. The
results we obtained were consistent and sound; therefore we
are confident enough that the value we got is pretty fair.