Introduction to the Framework of Financial Modeling Date : see at the website “futurum corfinan” (2-day training) Venue : Hotel at Jakarta Pusat Note : Participants should bring a laptop with a running Excel 2010 Presentation slides will be distributed in softcopy Minimum participants = 10 persons After the training, participants are allowed to discuss about the training materials via email in the website Contact : Muhammad Putrawal email : futurumcorfinan@gmail.com Visit Website and Training Testimonials : google “futurum corfinan”

1. HOW to Do Business
Analysis using Excel
INTRODUCTION TO THE FRAMEWORK OF FINANCIAL MODELING

2. Introduction

3. Some answers were overly complicated and highly technical:
 “Representation of behavior/real-world observations through mathematical approach designed to
anticipate range of outcomes.”
Some philosophical:
 “A numerical story.”
Some incorrect:
 “Forecasting wealth by putting money away now/investing.”
Some ridiculous:
 “Something to do with money and fashion?”
Some honest:
 “I really have no idea.”
And some downright profound:
 “A complex spreadsheet.”
Introduction

4.  Whilst there are many other (often very complicated and long-winded) definitions available from different
sources, the last answer might be more accurate, very broad, but accurate description: “a complex
spreadsheet.”
 But DON’T BE AFRAID BECAUSE THIS TRAINING WILL SHOW TO CONSTRUCT THAT COMPLEX SPREAD SHEET.
 In the end is just about input and output
Is Just About Inputs and Outputs!

5. What will you get?
 Overview and technical knowledge about financial modelling in general, such as principal of
financial modeling, tool selection, model design, and best practice.
 An extremely practical and hands-on excel utilization. Here we have outlined all of the tools,
techniques, and functions in Excel (about 30 functions!) that are commonly used in financial
modelling. Of course it does not cover everything Excel can do, but it covers the “must-know”
tools.
 Common uses of financial model, such as modeling depreciation method, understanding
nominal and effective (real) rates, how to calculate WACC, several different methods of
performing scenarios and sensitivity analysis. Lastly, it covers the often-neglected task of
presenting model output.

6. Training Agenda
1. What is Financial Modeling?
•What’s the Difference between a
Spreadsheet and a Financial
Model?
•Types and Purposes of Financial
Models
•Tool Selection
•What Skills Do You Need to Be a
Good Financial Modeler?
•The Ideal Financial Modeler
2. Financial Statements and Cash
Flows
•The Balance Sheet
•Liquidity
•Debt versus Equity
•Value versus Cost
•The Income Statement
•Generally Accepted Accounting
Principles
•Noncash Items
•Time and Costs
•Net Working Capital
•Financial Cash Flow
•The Accounting Statement of
Cash Flows
•Cash Flow from Operating Activities
•Cash Flow from Investing Activities
•Cash Flow from Financing Activities
3. Building a Model
•Model Design
•The Golden Rules for Model Design
•Design Issues
•The Workbook Anatomy of a Model
•Steps to Building a Model
•Information Requests

7. Training Agenda
4. Best Practices Principal of
Modeling
• Document Your Assumptions
• Linking, Not Hard Coding
• Only Enter Data Once
• Avoid Bad Habits
• Use Consistent Formulas
• Format and Label Clearly
• Methods and Tools of
Assumptions Documentation
• Linked Dynamic Text
Assumptions Documentation
• What Makes a Good Model?
5. Financial Modeling
Techniques
• The Problem with Excel
• Error Avoidance Strategies
• How Long Should a Formula
Be?
• Building Error Checks
• Avoid Error Displays in Formulas
• Circular References
6. Using Excel In Financial
Modeling
• Formulas and Functions in
Excel
• Handy Excel Shortcuts
• Basic Excel Functions (MAX,
MIN, SUM, COUNT, AVERAGE)
• Logical Functions (IF, AND, OR)
• Nesting: Combining Simple
Functions to Create Complex
Formulas
• Cell Referencing Best Practices
• Named Ranges

8. Training Agenda
7. Functions for Financial
Modeling
• Aggregation Functions
(COUNTIF, SUMIF, COUNTIFS,
SUMIFS)
• LOOKUP Formulas (VLOOKUP,
HLOOKUP)
• Other Useful Functions (OFFSET,
INDEX, MATCH, CHOOSE)
• Working with Dates
(TODAY,NOW, EOMONTH,
EDATE)
• Financial Project Evaluation
Functions(NPV,IRR, XNPV, XIRR)
• Loan Calculations (PMT, PPMT,
IPMT)
8. Tools for Model Display
• Basic Formatting
• Custom Formatting
• Conditional Formatting
• Spark lines
• Bulletproofing Your Model
• Customizing the Display
Settings
• Form Controls
9. Tools for Financial Modeling
• Hiding Sections of a Model
• Grouping
• Array Formulas
• Goal Seeking
• Pivot Tables

9. Training Agenda
10. Balancing the Model
• Escalation Methods for
Modelling
• Understanding Nominal and
Effective (Real) Rates
• Calculating Cumulative Totals
• How to Calculate a Payback
Period
• Weighted Average Cost of
Capital (WACC)
• Building a Tiering Table
• Modelling Depreciation
Methods
• Break-Even Analysis
11. Model Review
• Rebuilding an Inherited Model
• Auditing a Financial Model
12. Stress-Testing, Scenarios,
and Sensitivity Analysis in
Financial Modeling
• What’s the Difference
between Scenario, Sensitivity,
and What-If Analysis?
• Overview of Scenario Analysis
Tools and Methods
• Advanced Conditional
Formatting
• Comparing Scenario Methods

10. Training Agenda
13. Presenting Model
Output
• Handy Charting Hints
• Dynamic Range Names
• Charting with Two
Different Axes and Chart
Types
• Creating Dynamic Chart
(Scroll Bar, Spin Button)
• Bubble Charts
• Waterfall Charts
Adjustor
3%
-
200
400
600
800
1,000
1,200
1,400
Jul Aug Sep Oct Nov Dec
Six MonthFinancial Summary
Sales COGS Gross Profit G&A Others Expense Net Profit

11. Training Desktop
 Date : see at the website “futurum corfinan” (2-day training)
 Venue : Hotel at Jakarta Pusat
 Note :
 Participants should bring a laptop with a running Excel 2010
 Presentation slides will be distributed in softcopy
 Minimum participants = 10 persons
 After the training, participants are allowed to discuss about the training materials
via email in the website
 Contact email : futurumcorfinan@gmail.com
 Visit Website and Training Testimonials : google “futurum corfinan”