Certification in Financial Modeling and Company Valuation From Investment Banking Institute Basic and Advance Excel Specialist from MICROSOFT (USA)

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1 TM Investment Banking Institute Providing Financial Training Solution to Capital Market Aspirants Certification in Financial Modeling and Company Valuation From Investment Banking Institute Basic and Advance Excel Specialist from MICROSOFT (USA) IBInstitute Investment Banking Institute Tel: /16, Rajendra Park Marg, Opp. Rajendra Place Metro Station, New Delhi

2 Investment Banking Institute (IB Institute) is an "independent and autonomous training institute which offers advanced level practical training on Advance Excel, Fundamental Analysis, Equity Research, Financial Modeling, Project appraisal, Company Valuation, Mergers and Acquisition and Advance Macro (VBA) to Working professionals and students. IB Institute was founded in 2009 by the ex-consultants and investment bankers having experience from top notch Investment Banking and consulting firms in the World. IB Institute provides instructor-led (Live) training and e-learning (Online) courses which develops the competitive profiles of the students for the interview and the working professionals on the job. After two years of successful completion, IB Institute is proud of training over 600 students in over 40 batches. The reason for success is the passion for teaching as well as exceptional experience of our trainers who are imparting their best and sharing their live experience. We ensure to make the session more live, provide more exposure with real issues to make a great learning experience for everyone. Our teaching methods ensure maximum comprehension in the shortest possible time. We provide a dynamic learning environment with lots of practical hands on exercises and real world examples. In general, all high-paying finance jobs will require knowledge and skills found in our syllabus for the interview and on the job. Reading the annual report, Financial Statement analysis, Forecasting, Valuation and financial modeling are an integral part of the day-to-day responsibilities of any professional working in the main stream Finance. We offer our training program in the workshop format. All these workshop are interactive based on real life situation. Beside, we make full use of, Participatory Exercises, Case Studies, and Practice Sessions. The Participant are given Comprehensive Reference Material & workbook witch is used by them during the workshop. The material also serves as a useful guide in future. Note: Candidate well be designing these models from scratch. Course Highlights:1.Basic and Adv. Excel 2.Financial Accounting and Financial Statement Analysis 3.Navigating the Annual Report 4.Financial Modeling using Adv. Excel 5.Valuation Techniques (DCF, Relative Valuation, Transaction) 6.Mergers and Acquisition 7.Visual Basic of Application (Macro in Excel) Industries where Financial Modeling is Used:1. Investment Banking 6. Corporate Finance 2. Project Appraisal 7. Knowledge Process Outsourcing 3. Private Equity 8. Asset Management 4. Hedge Funds 9. Rating Agencies 5. Equity Research 10. Consultancy Companies:1. Copal Partners 2. Evalueserve 3. Adventity 4. Ernst & Young 5.Amba Research 6. Aranca 7. SBI Capital 8. Barclays Capital 9. Cians Anlytics 10. Crisil 11. D E Shaw 12. ICRA 13. Analec Research 14. pipal Research 15. Smart Cube 16. Transparent Value 17. Morning Star 18. McKinesy 19. JP Morgan 20. Gridstone Research

3 Day 1 & 2 Basic and Advanced Excel Here at IB Institute, we are specialists in offering expert level training courses for you to learn Advanced Excel and other great features of Excel. As part of our Advanced Excel training you will gain the necessary knowledge required for the efficient use of the tools and other exciting features which this outstanding software has to offer. Program is not about the basic of Adv Excel. However, it covers an Astonishing level of depth and width. On successful completion the participant will be able to perform complex calculations, build multifaceted models, and perform complex data analysis and present outputs with very powerful user interfaces. A brief of Functions covered Financial Function:Date & Time:Math & Trig:- SLN,SYD, DB,DDB, VBD, PPMT,IPMT,IRR,NPV,RATE, XIRR,MIRR, FV,PV Date, Day, Year, Days360, EDATE, EOMONTH, TODAY, YEARFRAC ABS, EVEN, RAND, RANDBETWEEN, ROUND, ROUNDUP, ROUNDDOWN, SUM, SUMIF, SUMIFS, TRUNC. Statistical Functions:Average, Averageifs, Count, Counta, Countif, Countifs, Max, Min, Median, Mod, Rank, Large Lookup & Reference Functions:- Address, Choose, Hlookup, Index, Indirect, Vlookup, lookup, Hyperlink, Match, Offset, Transpose. Database Functions:Dcount, Dcounta, Dmax, Dmin, Dsum Text Functions:Right, Left, Mid, Find, Search, Cell, Len, Lower, Upper, Proper, Replace, Rept, substitute, trim etc. Logical:IF, If within if (Nesting IF), If with and & or, Information:cell, isblank, iferror, iserror, isnumber, iseven, isna Not only this but much more:- There is lot more to go. Day 3 Navigating the Annual Reports Reading and Navigating the Financial Statements: Financial reports such as the AR, 10-K, 10-Q, 8-K and various others are the communication tools of business for spreading the information to the share holders and other analysts. Having proper knowledge of navigating the reports is a fundamental facet of efficient financial analysis. It is very crucial to be an expert in indentifying the important and right information in the latest reports available. The Financial reports may be quite different from each other but they do follow a standard format and presentation with some differences. IB Institute's Reading and navigating financial reports course is designed to accelerate the finance professional's comfort level with the most important financial reports, and serves as an important tool for finance professionals and students to gain more insight to the Financial Statements and gain knowledge about various types of report and press releases. Objective of the Course: To increase the efficiency, accuracy and speed to find the right information in the reports. Learn to interpret the various schedule and find various hidden information Learn various types and layout and composition of financial reports like 10-K, 10-Q, AR, 8-K,20-F etc. Gain insight into the financial statements Learn to recognize the structure of the various financial reports to improve efficiency and accuracy on the job. Taught using clear, easy-to-follow materials that bridge academic concepts with how they are presented in financial reports.

4 Day 4 Financial Statements Analysis and Accounting Financial and Valuation Modeling requires a solid understanding of accounting and financial statement interaction. Accordingly, IB Institute has developed Crash Course in Accounting & Financial Statement Analysis, which is very important for students with a limited knowledge of accounting or who wants to refresh their accounting concepts in a fast track mode without leaving the important concepts behind. If you are looking for a Debit / Credit discussion, then this is not the right place for you. We shall focus more on inter linkages between the Financial statements and analytical perspective. Our in-depth course in Financial Statements helps you learn and master the subject which is actually very critical to the start of your finance career. This course will make you a Future Finance Professional not an accountant as the focus is on analysis, proper interpretation and check manipulation of accounting numbers to get closer to the real No's required for analysis and valuation. 1. Introduction to Income Statements: - Understand various heads of IS like:- (Revenue, COGS, Gross Profit, SG&A, Operating Income (EBIT) & EBITDA, Interest Expense and Income, Pre-Tax Income, Taxes (Current & Deferred, Permanent and Temporary) - EPS using Treasury method and incorporate the effects of Dilutive Securities: Shares Outstanding (Basic and Diluted), Earnings per Share, Dividend per share, Various forms of Dividend - Effects of Various dilutive securities, simple and complex capital structure. (Also understand various accounting methods used and their implication to the Financial Statements) 2. Introduction to Balance Sheet: - Learn the various heads and formats of Balance Sheet: Current Assets (Cash, Marketable securities (Trading Securities, Hold to maturity, Available), Inventories, Accounts Receivables, Pre-paid Expenses) - Valuation issues of Fixed Assets (PPE), Long-Term Assets (Equity Investments) - Method to calculate Goodwill and Intangibles and the calculation of good and capitalization and expensing issues - Current Liabilities (Accounts Payable and Deferred Revenue, unearned income, Other accrued exp) - Long-Term Liabilities (Debt and Capital Leases) - What is Minority Interest ( Why does this item come in Balance sheet, and income statement (Methods of Inter-corporate investments) - Equity components: Equity (Common Stock, Additional Paid in Capital, Retained Earnings, Treasury Stock and Other Comprehensive Income) 3. Introduction to Cash Flow Statements - Learn about various Heads of Cash Flow Statements with Numerical examples. Review of Cash Flow Statement including definition, importance and application of: - CFO: Cash Flow from Operations How changes in Working capital effects the Cash FLow - CFI: Cash Flow from Investing (Capital Expenditures, Acquisitions, Divestitures) - CFF: Cash Flow from Financing (Dividends, Stock Issuances, Repurchases, Debt Borrowings & Paydown) - Understand why the Cash Flow Statement is the "ultimate balancer and equalizer" 4. Methods of Consolidation 1. Equity Method, Consolidation method, Proportionate method, Market or Cost method 2. Methods of consolidation after merger, good will calculation, treasury method for dilution calculation, purchase method vs pooling of interest method 5. Financial Reporting vs Tax reporting Reasons for Deferred tax, items which are treated differently in Financial Reporting and tax reporting.

5 Day 5 Case study for Financial Projections and Various schedule and Assumptions: This part deals with the excel application of what has been covered on day 1,2 and 3: ü Project Income Statement, Balance sheet and cash flow statement with help of assumption and schedules: ü Learn to prepare waterfall schedule of Depreciation ü Learn to Prepare Sales projection, schedules of working capital, capital expenditures schedule ü Project Deferred Tax, Intangible assets, Debt (Short term and Long term) ü Learn to create scenarios and do sensitivity analysis Objective of this session is to learn multiple ways of forecasting Financial Statements under different situations and assumptions and how it is done in real life by Practitioners. Day 6 Advance Financial Modeling Using Excel Overview of the Program Financial Modeling refers to the process of building a structure that integrates the Balance Sheet, Income Statement, Cash Flow Statement and supporting schedules to enable decision making in areas like, Business Planning and Forecasting, Equity Valuation, Credit Analysis/Appraisal, Merger/acquisition analysis, Project Appraisal etc. Trainees learn how to build full, dynamic Financial Statement Projection models in Excel from scratch, using real case studies and sensitivity analyses. Participants develop a model completely from scratch, inputting historical data and assumptions to project financial statements using step-by-step instruction on selecting and developing appropriate projection drivers. At completion, participants will have developed a complete and comprehensive three-statement model using various supporting schedules. Interactive, Step-by-Step Learning Approach: Participants are given step by step instructions to build comprehensive models from scratch, the way it is done on the job by the Investment Banker. They are directed to external documents and resources (like Annual Report, Press Release, Quarter filings etc) needed for more information to make the model more accurate. Key Learning Outcomes Ÿ Building comprehensive financial models from scratch for a Listed Company and Generic company. Ÿ Learn to define assumptions and make forecast for Income statement, Balance sheet and Cash Flow statements with robust and highly complicated schedules. Ÿ Learn to integrate assumptions and drivers into financial models based on the information available in the Annual report. Ÿ Design various supporting schedules of: Working Capital, Deferred Taxes, Property, plant and equipments / Depreciation, Intangible Assets, Retained Earnings, and Debt & Interest Ÿ Financial Ratios Output Sheet Ÿ Perform sensitivity analysis using data tables, Spinners, Scroll bars Ÿ Perform scenario analysis using data validation, offset and choose Ÿ Excel techniques and shortcuts for financial modeling Note: Candidate well be designing these models from scratch.

6 Day 7 & 8 Discounted Cash Flow model (DCF) Modeling Overview of the Program Once the Financial Model is designed and Projections are made for the Company. Now we learn the use of Financial Models in Valuations. Valuation represents the heart of the investment banking and corporate finance skill set. A solid foundation of Valuation tools is laid before building valuation models. Participants are required to have the deep knowledge of Valuation issues. Following are the various conceptual issues of the valuation framework Ÿ Enterprise valuation vs. market valuation Ÿ Intrinsic valuation vs. relative valuation Ÿ Participants identify and analyze the important issues to the value of an enterprise. Ÿ Understand and identify the treatment of Dilutive Securities (Options, preferred stock, Warrants, Convertible Debt) to Enterprise value. Ÿ Understand the impact of minority interests, debt, cash and marketable securities Ÿ Comparable Company analysis Vs Comparable Transaction analysis. Key Learning Outcomes When the theoretical frame work is laid down, the participants start learning to build a robust Discounted Cash Flow (DCF) model which includes the calculations of FCFF, WACC, Terminal Value, Levered and un-levered Beta and Intrinsic Value. Ÿ Participants learn how to build a professional, robust discounted cash flow (DCF) model in Excel from scratch, using real case studies and sensitivity analyses. Ÿ Learn the difference between un-levered and levered free cash flows, and the implication on Enterprise value and implied share price. Ÿ Learn to Project levered & unlevered Free cash flows in Excel of a given listed company by normalizing operating profits. Ÿ Project working capital items (Accounts payables, Inventory, account payables etc), deferred taxes, capital expenditures, and short term and long-term debt. Ÿ Calculate the projected terminal value using both the exit multiple and the growth in perpetuity approach and implication to share price. Ÿ Use of CAPM to calculate the discount rate by deriving the cost of debt of equity. Ÿ Understand the role of capital structure in determining beta, the cost of equity, and ultimately WACC. Ÿ Understand use of beta and how to de-lever and re-lever beta and implication on WACC. Ÿ Calculate shares outstanding using the treasury stock method when Dilutive securities are ITM (In-the-Money) Ÿ Utilize the enterprise value to determine implied share prices. Ÿ Calculating net debt and treatment of debt equivalents such as preferred stock, convertible securities, capital leases, and minority interest Ÿ Calculating options and convertible securities using both the standard and treasury stock methods

7 Day 9 & 10 Relative valuation modeling in Excel Comparable Company Trading Analysis ('Comps') is the most basic but effective valuation tool used by investment bankers and analyst. This technique used in all kinds of valuations. For example:- Private market valuation, IPO valuation, comparative analysis, identifying potential targets for M&A etc Establishes value of A Company and measures its performance vis-à-vis the operating and trading statistics of company's peer group Training Methodology: Leaning Outcomes: The participants are first explained how to select the Ÿ Participants learn to select appropriate comparable companies by evaluating operational, financial, size, and Peer Group (Comparables) before building the other similarities Models for Relative Valuation. In this part of the Program, we shall learn to design the real Template Ÿ Set evaluation benchmarks & select comparable for Trading Combs which is actually used various companies Research companies. Ÿ Gather appropriate financial history and projections Then we shall take 10 companies from world over for Ÿ Normalizing operating results and calculating LTM relative valuations. operating results Then participants are directed to build superb comps Ÿ Exclude nonrecurring charges, normalize for stock option models in Excel from scratch, using real case studies, expense industry best practices, and sensitivity analyses. This model includes Switches, Output sheet, Ÿ Standardize various expense classifications including FIFO to LIFO inventory accounting Valuations sheets, Currency Converter and forecasts. Ÿ Calculate shares outstanding using the treasury stock method Ÿ Input financial data & calculate and interpret financial and market ratios Ÿ Presenting trading comps by structuring output schedule Ÿ Selecting and Evaluating Appropriate Multiples (P/E Trailing and forward, EBIT Multiple, EBITDA Multiple, P/B Multiple, Revenue Multiple, PEG) Ÿ Calculate and interpret financial and market ratios Common analytical challenges including Calandarization, nonrecurring items, dilutive securities, and classification issues are addressed using industry best practices. Day 11 Transaction Valuation Techniques The Comparable Transaction Analysis or Comparable Acquisition Analysis is based on the premise that the value of a company or an asset can be estimated by analyzing the prices paid by purchasers of ownership interests in reported comparable acquisitions. The analysis provides a history of selected transactions either in one particular industry or in one area where acquired companies have relatively similar characteristics in terms of economic drivers such as business mix, customer base, distribution channels, industry dynamics, etc. Transaction multiples define the prices which acquirers are willing to pay for control of the target company in the context of an acquisition transaction. By applying transaction multiples to the financial results of the company being analyzed, it is possible to determine a range of value. Learning objective: 1. Company Description 2. Identification of Comparable companies 3. Computation of Equity Value Determination of Net Debt Assumed Calculation of Firm Value and share price Calculation of LTM Net Income, EBITDA and EBIT Computation of transaction multiples

8 Day 12 & 13 Mergers and Acquisition Analysis Overview of the Program: Ÿ The participant are first explained the concepts of Merger and acquisition. Ÿ Participant build a model of M&A to see the pro forma impact of various scenario post merger Ÿ Understand the allocation of purchase price with Purchase method of accounting post merger Ÿ Under the accretion-dilution in EPS after the merger in various scenario after adjustments Ÿ Various methods for the payments (Stock based or cash based) Prepare a comprehensive Merger Model Ÿ Design and Set up a control area for assumptions and drivers Ÿ Learn to deal with deal assumptions and various issues like (% cash vs. stock considerations, Purchase premium, Asset write-ups, Advisory fees, Financing fees, and severance fees) Ÿ Use of Treasury method to calculate shares outstanding Ÿ Appropriate treatment of convertible securities like Options, Warrants, Convertible debt and Preferred stock Ÿ Calculate Goodwill while allocating Purchase price to assets after re-evaluation of the assets of the target company Ÿ Adjust the Balance sheet and prepare the pro-forma Balance Sheet Ÿ Calculating Sources & Uses of funds with making the operating & synergy projections Ÿ Calculate the EPS post merger after making the adjustments to Income statement and prepare the pro-forma Income statements Ÿ Synergies required to break-even before and after tax if premium is paid Ÿ Sensitivity analysis: EPS accretion/dilution in stock vs. cash deal; interest rate assumptions, premium paid. Ÿ Analysis of contribution of Revenue, EBITDA, and Net Income post merger This model is designed with very practical approach to see the impact of acquisition of one company by another company after the real adjustments have been made to Financial Statements. M&A Accretion/Dilution Modeling Ÿ Superb exhaustive accretion-dilution analysis Ÿ Buy side and sell side processes Ÿ Project the Consolidated Financial statements post merger and do the various adjustments for goodwill calculation Ÿ Handle the Fair market value write ups, advisory fees and financing fees and debt refinancing Ÿ Learn the proper treatment of various items like deferred taxes created in M&A and convertible securities and options. Day 14 & 15 Basic and Advanced Macro (VBA) 1. Introduction to Macro 2. Recording Macro 3. Assigning Shortcuts to Macro Programs 4. Commands Do While, Do Until, Input Box, Msg Box, For Next, Looping 5. Worksheet Objects: Adding, Deleting, Renaming, Protection with Macro 6. Workbook Objects: Creating and Opening Workbooks, Saving and Closing Workbook 7. User Forms, User Defined Functions, Addins Note: Practice Various Power full Macro Program in the Class.