FINANCE & CAPITAL INVESTMENT ANALYSIS

FOR PROJECT MANAGERS & TECHNICAL PROFESSIONALS

FINANCE SERIES

02 - 04 APRIL 2012 RADISSON BLU DUBAI DEIRA CREEK UAE

Limited Seatsk Boo Available. Today! ats Your Se

WHY YOU CANNOT MISS THIS EVENT

Engineers & technical professionals are expected to make financially based decisions, often without a formal financial background or training on best practices in capital investment analysis. This in-depth and practical course (with the third day dedicated to hands-on analysis) will demystify finance and cover best practices in financial analysis. By the conclusion of the course, delegates will be able to communicate easily in financial terms. They will be able to comprehend the content of financial statements, analyze and interpret financial information, understand the importance of cashflow, match their budgets to realistic targets, and accurately analyze capital investments. Most importantly, delegates will learn best practices in all of these areas. This training will benefit your organization by giving delegates greater knowledge on best practices to make better decisions in finance. The expert trainer, through years of experience in finance and risk management, will help delegates reach new heights in their careers. This is a dynamic and resourceful training that you do not want to miss!

YOUR INT YOUR INTERNATIONAL COURSE FACILITATOR

Betty J. Simkins, Ph.D. Professor of Finance Oklahoma State University
Betty J. Simkins, Ph.D., is the Professor of Finance in the Department of Finance at Oklahoma State Universitys Spears School of Business where she teaches, corporate finance, energy finance and risk management, advanced financial management, corporate valuation, and case studies in finance. She frequently presents her research at leading academic conferences around the world. Prior to entering academia, she worked in the energy industry for ConocoPhillips, Williams, Inc., and Williams Pipeline Company, among others. Dr. Simkins has also worked as a consultant or advisor for Wells Fargo, ConocoPhillips, Deloitte Touche, Morgan Stanley, Conference Board of Canada, the National Association of Security Dealers (NASD), Southwest Airlines Company, Williams, Inc, and EKF (Eksport Kredit Fonden, Denmark). She is frequently interviewed and quoted in the press regarding her research and expertise on energy finance, including such publications as the Wall Street Journal, the Chicago Tribune, and the Houston Chronicle. Her research was recently used in testimony to the U.S. Senate Banking Committee. She has over 40 publications in academic and practitioner finance journals and has won awards for her research in risk management. She has a book published in 2010 titled Enterprise Risk Management: Insights and Analysis on Today's Leading Research and Best Practices. Her publications rank her in the top 5 percent of finance researchers. In addition, Dr. Simkins has won several teaching awards including the highest level teaching award at OSU, the Regents Distinguished Teaching Award. Her current research focuses on the oil and natural gas industries, bankruptcy risk, futures markets, and strategic risk management and hedging. an She S Sh currently serves on the Board of Directors for the Financial Management Association, as co-editor of the Fin Journal of Applied Finance, as Editor of FMA Online, as Jo o past president of the Eastern Finance Association, and pa on the editorial boards of several prestigious finance on journals. jo o

This course qualifies for continuing education credit for licensed Professional Engineers. 18 PDH (Professional Development Hours) Key reasons why your organization would benefit from this course: Understand the big picture of finance and capital investment analysis how this relates to daily business decisions Discover how to read and analyze a set of company accounts and confidently communicate with accounting and finance professionals. Effectively analyze the impact of financial decisions on your business Understand the power of discounted cash flow in management decision making Lead best practices used by companies around the world

Latest TESTIMONIALS
Good 1 year course compressed into 3 days. d
- Abd Hi h Hisham M h Mohammad, F ili i E i d Facilities Engineering Manager, Petronas Dagangan

Brilliant case representation, exceptional combination of academics & practice.

- Lionel Koh, Group Finance Director, Naga DDB

All project managers who handle big/risky projects should attend this course.
- Noor Atiqah binti Sharani, Executive, BERNAS

The trainers' hands-on background helped us a lot to better understand the concepts, and apply them to real-life cases.
- Nik Ahmad Kamal, Plant Manager, Global E-Technic

Most teachers are passionate about what they teach: however, Dr. Simkins has raised t the bar for her peers by bringing the real world into the classroom. - Ernst & Young, Inc.
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360 BSI (M) Sd Bhd (833835-X), Level 8 Pavilion KL, 168 J lan B kit Bi tang, 55100 Kuala Lumpur, Malaysia. BSI (M) Sdn Bhd (833835-X) Level Pavili KL, 168 Jal Bukit Bintang 55100 Kuala Lum (833835 X Leve Pavilion 3835 X) evel ilion Jalan Buki Bintan Bukit Bintang, Kual Lumpur Malaysia. Kuala Lumpur, alaysi l

COURSE CONTENT
ALL SESSIONS WILL BE THEORY AND PRACTICAL BASED
Participants should bring their calculators to all 3 days of the course. It is highly recommended that participants also bring laptops on Days 2 and 3 for the practical exercises.

DAY2
UNDERSTANDING FINANCIAL MANAGEMENT & CAPITAL INVESTMENT ANALYSIS
Session One: Fundamentals of finance and essential tools for effective business decisions The time value of money Estimation of cash Flows and concepts such as future value, present value, and valuing annuities Calculator and excel applications of time value of money concepts Sensitivity analysis and variance analysis Understand the essential tools for financial management including direct versus indirect costs and overheads Understanding the tradeoff between risk and return and how to apply these tools to optimize outcomes What drives asset values Activity based costing Break-even analysis and contribution analysis Understand the limitations behind valuation models Exercise: Determining accurate cost per unit for effective decision making Session Two: Project Appraisal and Capital Investment Analysis Estimating the Cost of Capital Best practices in estimating the cost of capital How to make a business case: The Three-Phase Investment Evaluation Process Fundamental tools of investment appraisal Estimating the cost of equity Estimating the cost of debt Systematic vs. non-systematic risk Estimating the Weighted Average Cost of Capital (WACC) Adjusting the cost of capital and hurdle rate for projects with different risk Exercise: Fundamental tools applied Session Three: Project Appraisal and Capital Investment Analysis Leading Capital Investment Analysis Techniques Best practices in capital budgeting Return on capital employed; why it is used, what it tells us and the limitations Discounted cash flow techniques - Payback period and discounted payback period - Net Present Value - Internal rate of return - Modified internal rate of return - Equivalent annual annuity - The problems of short-termism in investment appraisal Sensitivity analysis: how sensitive are key decisions to potential changes in circumstances? Scenario analysis Real options valuing managerial flexibility Exercise: Evaluating the investment decision Session Four: Project Appraisal and Capital Investment Analysis Excel Exercises on Investment Analysis Participants will have the opportunity to learn and apply Excel applications of the concepts learned today to case studies and exercises.

DAY1 UNDERSTANDING FINANCIAL ACCOUNTING

Session One: The Accounting Process & The Driving Forces Behind Financial Information Understanding the harmonization of global accounting standards and the role of IAS (International Accounting Standards) Understanding the language of accounting & the sources of financial information Gaining an insight into accounting systems, terminology and concepts Examining why the timing of a transaction is so important to the finance function Overview of the content of the annual report Knowing where to find useful information An introduction to the Balanced Scorecard Session Two: Analyzing and interpreting financial information Learning the jargon and recognizing what is revealed in the financial press Understanding the language of finance Learning what a set of accounts reveals about a companys current situation, profitability and future prospects Determining how to effectively use all the available information Understanding why and how figures can be manipulated Employing analytical review and ratio analysis - Liquidity: is the firm able to meet its current obligations - Asset Management: is the firm effectively managing its assets - Debt Management: does the firm have the right mix of debt and equity - Profitability: the comfined effects of liquidity, asset and debt management - Market Values: relates the firm's stock price to its earnings and the book value per share Session Three: Case Studies on Analyzing & Interpreting Financial Information The two case study exercises will allow participants to analyze and interpret an annual report and Financial Detective case study. The concepts will introduce participants to basic analysis of financial ratios to gain insights about strategy and financial performance. Participants will learn that the economics of individual industries accounts for significant variation in financial ratios because of different technologies, product characteristics or competitive structures. The exercises illustrate that financial performance results from managerial choices. Within industries, the wide variation in financial ratios is often a result of different in corporate strategy in marketing, operations and finance. Session Four: Planning and Budgetary Control Breaking down barriers between management accounting and operations departments Determining why budgets play a key role and are not simply an annual chore Purposes of budgets: the link between the strategic plan & the company culture - Budgets as motivators Setting realistic goals you can apply to your area of responsibility - How your role relates to the budget cycle - Key budgeting techniques - When, why and how you should use zero/priority based budgets - Understanding the difference between budgets and cash flows and how they relate to one another Reading: Corporate Strategy and the Capital Budgeting Decision Exercise: There will be an exercise related to corporate strategy and the capital budgeting decision. "Budgeting the big picture"; How you can make budgeting more efficient and improve on existing practices

COURSE CONTENT DAY3 BEST PRACTICES: INTENSIVE HANDS-ON

EXERCISES AND CASE STUDIES
In Day 3, delegates will have the opportunity to apply what they learned in Days 1 and 2 by working practical exercise and analyzing case studies in accounting, finance, and capital investment analysis. During this day, leading analytical skills and techniques will be discussed and illustrated using real case studies. Delegates are encouraged to bring their laptop computers this day to apply topics learned in Days 1 and 2 using Excel spreadsheets, Excel functions, Monte Carlo Simulation, and more. You do not want to miss this day! Session One: Best Practices in Making Optimal Capital Budgeting Decisions Excel applications of: - Payback period - Discounted payback period - Net present value - Internal rate of return - Modified internal rate of return Hands-On exercises Session Two: Role Playing and Case Study on Capital Resource Allocation within Corporations Explore the problem of resource allocation within corporations Illustrate and assess the impact of capital rationing on capital investment decisions Interpret the implications of classic tools of investment analysis Consider the impact of behavioral influences on financial decision making Session Three: Application of Best Practices in Capital Investment Analysis - Case Study of Energy Savings Project Investment Decision Illustrate making a capital investment decision versus a do-nothing case Analysis of energy savings, tax implications, payback period, and return on capital investments using Excel Estimating cash flows Effects of corporate culture on decision making Analysis of the cost of capital effects on decision making Hands-On exercises Session Four: Best Practices in Risk Analysis of Capital Investments Analytical skills, techniques, and challenges in risk analysis: Revenues and prices, cost of capital, construction costs, startup delays Risk analysis of projects in Excel: - Sensitivity analysis and sensitivity charts - Scenario analysis Advanced risk analysis in Excel using Monte Carlo simulation (Note: Monte Carlo simulation will also be used to model uncertainty for key value drivers. Monte Carlo simulation is a powerful tool that can help evaluate what can happen to an investments future cash flows and summarize the possibilities in a probability distribution. This is particularly helpful in risk analysis of capital intensive projects since the outcomes are often the result of the interaction of a number of interrelated factors (or value drivers) that are highly uncertain.) - Distribution fitting and correlation assumptions - 5 basic rules of thumb in choosing probability distributions - Three popular probability distributions for use in simulation models - Displaying and understanding output -- Tornado Charts, etc - Mean reverting processes incorporating Poisson jumps - Challenges in forecasting prices Case study applications

WHY THIS EVENT

This is probably the only workshop giving delegates greater knowledge on best practices to make better decisions in finance and helping their organization reach new heights. The expert trainer, through years of experience in finance and risk management, will conduct a dynamic and resourceful training that you dont want to miss! The combination of interactive presentations, hands-on exercises and open discussion groups along with real case studies, ensures you will obtain maximum value from attending. This is a unique training course and full of new information, ideas and latest techniques that will surpass you expectations. This course qualifies for continuing education credit for licensed Professional Engineers. 18 PDH (Professional Development Hours)

WHO SHOULD ATTEND

All Engineers & Technical Professionals All Project Managers Business Development Sales & Marketing HR Directors Procurement & Purchasing Others who wish to understand finance & capital investment analysis

COURSE SCHEDULE
8.00 8.30 10.30 - 11.00 12.30 - 13.30 15.00 - 15.30 16.30 Registration & Coffee/Tea Workshop commences Morning coffee/tea Lunch Afternoon coffee/tea End of day

FINANCE & CAPITAL INVESTMENT ANALYSIS

FOR PROJECT MANAGERS & TECHNICAL PROFESSIONALS
02 - 04 APRIL 2012 RADISSON BLU DUBAI DEIRA CREEK UAE

REGISTRATION FORM
Fax: +603 9205 7788 Tel: +603 9205 7770 Mobile: +6016 3326 360 Email: kris@360bsi.com
IN-HOUSE TRAINING
360 BSI is passionate about providing strategic technical programs and high potential training solutions across the region to build personal competencies and organizational capability. You will receive practical training from a professionally qualified educator with over twenty years of teaching and training experience. Please feel free to mix-and-match topics from the areas listed below to get the right training content for your staff. Other topics may be available upon request.

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For Room Reservation, contact for 360 BSI corporate rates. Telephone: 00971 4 2057105 Fax: 00971 4 2234698 E-mail: reservations.dxbza@radissonblu.com Radisson BLU Hotel, Dubai Deira Creek Baniyas Road, P.O. Box 476, Dubai, UAE

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Closing date for registration is 26th March 2012. The fees cover lunch, tea breaks, materials and certificate. Official confirmation will be sent, once registration has been received. Participants will need to arrange their own accommodation. Attire: Smart Casual

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Cancellations/Substitutions
Substitutions are welcome at any time. Please notify us at least 2 working days prior to the event. All cancellations will carry a 10% cancellation fee, once a registration form is received. All cancellations must be in writing by fax or email at least 2 weeks before the event date. Cancellations with less than 2 weeks prior to the event date carry a 100% liability. However, course materials will still be couriered to you.

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COURSE FEES

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PAYMENT DETAILS
Payment is required within 5 days upon receipt of the invoice.
Bank transfer: 360 INTERNATIONAL LIMITED Standard Chartered Bank P.O.Box 999 Al Fardan Building, Al Mankhool Area, Bur Dubai, Dubai, U.A.E Account No: 02-2077311-01 USD Swift No: SCBLAEADXXX IBAN No: AE920440000102207731101

USD 2,945 per delegate USD 2,745 per delegate -

register before 01-MARCH-2012

The fee does not include any taxes (withholding or otherwise). In case of any taxes applicable the client has to ensure that the taxes are paid on top of the investment fee paid for the course. Compliance with the local tax laws is the responsibility of the client.

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360 BSI (M) Sdn Bhd (833835-X), Level 8 Pavilion KL, 168 Jalan Bukit Bintang, 55100 Kuala Lumpur, Malaysia.