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Pre Conference Masterclass, Monday, 9 November 2009
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| FINANCIAL MODELLING FOR PROJECT FINANCE |
This masterclass will provide in depth education and insight into the financial modelling process for Australian companies seeking to put together finance for large-scale projects. It is designed to inform executives and CFOs of the solutions that can be easily deployed to counteract common problems associated with project financing. There will be a focus on how best to meet lender’s strict requirements, analysis of the role of the model and why a good one makes so much difference, types of users and conflicting requirements and types of models.
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08.30 | Registration and welcome coffee
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09.00 | Welcome address
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| | Moderator: Mr Nick Crawley, Managing Director, Navigator Project Finance, Australia
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| AGENDA: A FOREWORD ON FINANCIAL MODELLING RISK AND BEST PRACTICE |
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09.10 | Financial Modelling – “why is it so hard to get right?!”
• Modelling – what is it and where does it fit in
• How financial modelling ‘gets done’
• Risks faced in the modelling process
• Why is Project Finance modelling so hard to get right?
• The role of a professional financial modelling team
• Trade-offs - where to draw the line with flexibility and precision
• The big picture - analysing scenarios
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10.10 | Understanding the Requirements of a Project Finance Lender
• When do lenders need to see the model?
• What do they need to see?
• What does debt sculpting and sizing really mean?
• Why is presentation and transparency so important?
• Reporting covenants in a way that keeps lenders happy
• What is a model audit and how to avoid it being very expensive!
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11.10 | Morning tea
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11.40 | Have and maintain confidence in your model
• Integrity checks
• Change control and maintaining confidence in a model
• Keeping track of what has changed and who made the change
• Demonstration of how to build 'actuals' into a model and retain flexibility
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12.00 | Things you can do with a good financial model
• Monte carlo simulation
• Instant scenario analysis
• Fantastic presentations
• Incorporation of ‘actual’ information whilst restoring forward looking flexibility
• Ace a Model Audit process
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12.15 | Question and answer session
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12.30 | Close of masterclass
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Main Conference Day, Tuesday 10th November 2009
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08.50 | Opening remarks by the Chair
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09.00 | Keynote Address:
Navigating the crisis ~ Positioning the company balance sheet for increased financial performance
• Corporate financing in the absence of functioning capital markets
• Determining the efficient allocation of capital
• Setting appropriate debt to equity levels
• Preparing for future growth opportunities in the down cycle
• Sensibility in de-leveraging corporate balance sheets
• Ongoing focus on cost management
• Maximising value of banking resources
• Liability management |
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09.30 | Keynote panel discussion:
Impact of the credit crunch on leading Australian corporates
• How do corporates refinance debt obligations in the absence of capital debt markets?
• Certainty of funding vs lending price: Striking the balance
• The demise of second tier lenders and impact for Australian companies
• Challenges in de-leveraging corporate balance sheets
• Impact of deteriorating growth and employment prospects on cash flow |
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10.00 | Keynote address:
Reconnecting corporate Australia with frozen credit markets through sound policy initiatives
• Leveraging on the strength of Australia’s financial system
• Countermeasures to reduce the costs of the present crisis
• The need for long term committed funding
• Impact of foreign bank exodus: filling the 30% gap of the local lending market
• Securing long term credit through the Government debt guarantee
• Competing with global guaranteed bank debt in global markets
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10.40 | Morning tea
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| AUSTRALIAN BANKING SECTOR OUTLOOK |
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10.50 | Keynote panel discussion:
Managing the dislocation of capital markets
• Analysing Australian bank dependency on wholesale markets
• Rationing capital in the current climate
• Maintaining long term relationships in multiple credit markets to capitalise on short term market openings
• Changing bank preferences for shorter loans to higher credit rated entities
• Preparing for loan defaults
• Risk pricing: How can we minimise the bias of rising credit spreads for business
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| | Lyn Cobley, Group Treasurer, Commonwealth Securities Ltd, Australia
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11.20 | Facilitating capital raising for corporate Australia: building on existing exemptions in corporate law
• Proposed removal of regulatory impediments to capital raisings
• Reducing documentation to facilitate debt raisings: Cleansing notices vs PDS
• Disclosure expectations in capital raising activities
• Expanding investment opportunities for retail investors
• Implementing Basel |
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| REFLECTIONS ON THE NEW CORPORATE FINANCE ENVIRONMENT |
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11.50 | The role of Treasury in enhancing stability
• The heightened role of the Treasury function within banks
• Lessons learned over the last two years for liquidity and market risk management
• The importance of stability in bank liability management
• What the future may hold – emerging issues and opportunities for bank funding and balance sheet management. |
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12.50 | Speed Networking
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13.00 | Networking Lunch
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13.40 | Economists panel:
Forecasting economic trends in the corporate finance arena
• To what extent will funding shortfalls impact business investment and ultimately, Australia’s economic recovery
• Flow on effects of government stimulus packages
• How has Basel 2 changed the lending criteria for Australian corporates and how will this affect their access to funding?
• Analysing key metrics: Interest rates, unemployment, inflation and exchange rates
• How quickly can balance sheets be repaired and what impact will this have on investor confidence?
• When will global capital markets reemerge as a reliable source of capital? |
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| IDENTIFYING & ACCESSING SOURCES OF CORPORATE CREDIT |
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14.10 | Presentation:
The evolving role of the corporate CFO
• Sustaining shocks from volatile capital markets
• Protecting credit ratings
• Analysing solvency and balance sheet strength
• Expanding risk management and decision support responsibilities
• Supporting business strategy with appropriate funding and capital management
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14.40 | Keynote panel discussion:
AU$32 billion raised in 6 months: Why investors are backing “re-equitisation" in 2009
• Why Australia is leading the world in new equity raisings
• Impact on share price and ability to trade and function as a business
• The importance of first mover advantage: Ensuring access to a dwindling pool of liquidity
• Is it appropriate to sell shares at steep discounts?
• Managing shareholder dilution
• The increase of non-underwritten rights offers
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15.10 | Refinancing debt in the absence of functioning capital markets
• The heightened role of the Treasury function within banks
• Lessons learned over the last two years for liquidity and market risk management
• The importance of stability in bank liability management
• What the future may hold – emerging issues and opportunities for bank funding and balance sheet management.
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15.40 | Afternoon tea
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16.00 | Presentation:
Corporate finance risk management for the new financial world
• Lessons learnt from past misperception and mismanagement of risk
• Containing systemic risk within the financial system
• Risk identification, assessment, pricing and loss control
• Managing Interest rate and exchange rate fluctuations
• Increasing communication between CFO-CIO
• Default risk: methods to mitigate counterparty exposure
• How have current risk models fared in the past 18 months and where is innovation most needed?
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16.30 | Presentation:
Reversing the slippery slope to insolvency: Accessing funds in the multi billion dollar private equity market
• What are buyers looking for in a distressed/turnaround investment?
• What sectors and markets are most favoured by distressed investors?johnb
• Embracing a value enhancement restructuring approach
• Disclosure benefits of private equity partnership
• Structuring a beneficial PE partnership |
| | Mr Roy McKelvie, Chief Executive Officer and Managing Director, Gresham Partners Private Equity, Australia
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17.00 | Case study: Ralan Group
• Securing finance in uncertain times
• Mitigating the risk upfront
• Satisfying investor due diligence checklists
• Positioning the company for future growth opportunities
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17.30 | Closing remarks by the Chair & Close of main conference
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Post Conference Masterclass, Wednesday, 11 November 2009
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| DEVELOPING AND IMPLEMENTING A SUCCESSFUL CORPORATE TURNAROUND STRATEGY |
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08.30 | Registration and welcome coffee
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09.00 | Welcome address
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09.10 | How did we get here? Analysing the causes of corporate decline
• Common management traps and failures
• Financial mismanagement – Common debt and liquidity issues
• Evolution of layered leverage in capital structures
• Operational and organisational inefficiencies
• Legal and compliance restraints
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10.10 | Implementing processes for a successful corporate turnaround
• Conducting business reviews
• Designing an achievable corporate restructuring plan
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10.40 | Morning tea
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11.10 | Phases of a business rescue – finding an appropriate solution
• Understanding the symptoms of decline
• Recognising the key areas of underperformance
• Separating stress and distress: Implications for firm valuation
• Liquidation and corporate rehabilitation
• Determining achievable timeframes for a return to profitability
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11.55 | Overcoming challenges in actioning a corporate restructure
• Preparing for management and workforce resistance
• Overcoming resistance to change through effective corporate communication
• Monitoring and adjusting the restructuring plan
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12.40 | Close of masterclass
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