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analysis - one User Manual

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1. 100000 90000 80000 70000 60000 50000 40000 30000 20000 10000 1 0 Aug 04 Oct 04 Dec 04 Lag Indicator Revenue Feb 05 Apr 05 Jun 05 Aug 05 Lead Indicator Products per Client The lag indicator Revenue is tested for correlation using data from prior periods for the lead indicator Products per Client This analysis allows for the identification and assessment of the relationship between the indicators across time Period Shift Lag 0 period s Lag 1 period s Lag 2 period s Lag 3 period s Lag 4 period s Lag 5 period s Lag 6 period s Correlation 0 31 0 01 0 7 0 45 0 01 0 52 0 79 Impact insignificant insignificant medium impact low impact insignificant low negative impact medium negative impact By selecting Lag vs Lead users can correlate financial and non financial measures as in the example above By selecting Lead vs Lead users can correlate different non financial measures ie number of sales with number of Staff Training days eis one Page 26 analysis one user manual Marginal Cash Flow Analysis Select Marginal Cash Analysis either by using the Quicklaunch menu under What if Analysis tools or by selecting Marginal Cash Flow from the toolkit menu Tool Overview Evaluate the marg
2. 1500 450 1350 450 135 585 120 36 54 144 12 366 100 130 Mar 05 31 1800 320 2120 540 96 636 133 40 60 160 13 406 100 140 example import format The spreadsheet can have headings and other supporting schedules in it Only rows with Column A populated with valid analysis one Account Numbers are imported fa period does not exist in the timeline the period will be created as specified in the import file A uU N 10 12 13 14 15 16 17 18 46 19 20 21 23 24 26 27 28 29 30 31 32 Profit amp Loss Accounts Revenue COS Goods COS Other variable COS Fixed COS Non cash Expenses Variable Expenses Fixed Expenses Non cash Other income Interest Interest on Other Loans Interest received on Deposits Tax Adjustments Abnormals Minorities Dividends Adjustments to Retained Income Choose either alternative detailed line import codes Detailed Lines gt 1A 1H gt 4A 4H gt 7A 7H 1 1 1 8 4 1 4 8 7 1 7 8 Revenue Detailed line 1 Revenue Detailed line 8 COS Fixed Detailed line 1 COS Fixed Detailed line 8 EXP Fixed Detailed line 1 EXP Fixed Detailed line 8 Other Import Codes YR DY NS SP ui CF cp Period Description Period Length days Avg No Shares Avg Share Price Cash Flow Adjustment Capex Adjustment For use in the cr
3. 2 4 Conversion rate fa u ho e 2 5 Value Daily Sales ES s000 Value i eis one Page 18 analysis one user manual Once the targets and weighting have been established and results entered into the Loading KPI results tool will the KPI scorecard be ready for review Click on the Scorecard tab Areas marked with a green tick are satisfactory performance indicators Areas marked with a red cross are performing poorly and therefore require management attention The overall net result for each group of measures is indicated by the colour of pentagon segment Red indicates that the weighted results achieved are below target green indicates that weighted results have been better than target and orange indicates a borderline result If you wish to print the Scorecard click on Print Scorecard Report Customer Intimacy Coverting the Sale 1 1 2 1 Sales Returned per FTE Items r Pd HoRo 15 M Catelog 2 2 Aw rating X 2 54 Value per Group i Value Daily Group m unit 1 B Sales i 9 5 8 Q 2 95 T Sore Cancelled en un rate spend Management amp external Staff Satisfaction 2 1 Store 3 a of au absunt Qus MA C MES o9 LH Assessmentj fa J 5 5 Sal ento MEET ee 3 2 Staff i ale Lis 1 turnover Events WY H 3 5 On Group l J x Group 5 j 3 i k 2 4 1 3 4 Staff DE 3 Trainin 2 4 DEE entre Presentati elec staff X lt Hours 2
4. 9 67 For each ratio a definition calculation and basic interpretation of the result is provided Navigate through each ratio by selecting the ratio from the drop down list on the right The actual result in this example is higher than the target for the selected period as indicated by a green tick If this result was below target a red cross will appear If a negative result appears an analysis will appear at the top right of the page It will contain information on how to improve the ratio in subsequent periods Note all figures in this flowchart are drawn from the source financial statements eis one Page 15 analysis one user manual Non Financials KPls Select Setup KPls using the Quicklaunch Menu under Loading and Setup or select Setup KPls from the toolkit menu Tool Overview Specify the non financial performance metrics that will be used in the KPI Scorecard then manually load or import multiple periods of non financial results in preparation for analysis Loading Non financials Results Customer Intimacy Returned Items 155 WOR Catelog b NCR Cancelled 1 Complaints ra ra ra ca ra e SM rating 7 Import Export Coverting the Sale k Sales per FTE Av Value per unit Av Value spend Conversion rate Value Daily Sales For each KPI Scorecard users may specify up to 25 custom non financial metrics By default a new model unless created fr
5. Orientation Page Range ir Portrait 9 All C Pages Landscape bu From Ta Is Help Mate To install assignmen Page Breaks Smart page breaks widow orphan control Mumber of capies Page break after each major grouping Fit report to pages wide Print in colour colour printers only B Importing into analysis one Step 1 Consolidate the Profit amp Loss and Balance Sheet Reports Copy and Paste both reports into a single soreadsheet worksheet Before conversion into analysis one import format aaa re er ee Eau E 1 Jan Ll4 Feb 04 wiar 04 Apr 04 2 Frofit amp Loss 3 Income 4 Service Income 2195 2405 6075 1025 5 Total Income 2195 2905 6075 1025 b Expense Gifts and Donations 10 0 0 B Licenses and Permits 25 4 Miscellaneous 0 ZH 0 10 Bank Service Charges 3l 11 Equipment Rental 24 U 3t U 12 Depreciation Expense 0 i nie 0 13 Insurance 14 Sickness and accident Insurar bl 4 15 Tatal Insurance 0 bl 42 0 16 Total Expense 24 fu 207 Su 17 Met Ordinary Income 2171 2055 Solo 995 15 Met Income 217 20 39 S60 gas 1s 20 Balance Sheet 21 ASSETS 22 Current Assets 23 Current Savings 24 ANS 4211 O16 12362 14182 25 Total Current Savings 1211 F Tb 12362 14102 26 Accounts Receivable 27 Accounts Receivable 204 594 15838 ad 20 Total Accounts Recerable 204 54 1588 ob 24 Other Current Assets SU Undeposited Funds U U gg
6. er CASH IN Revenue 102666 Other Income 3187 Change in Inventories 508 CASH FLOW 1080 Change in Receivables 1235 Change in HCAs Interest Change in Payables Variable Expenses Cash Tas Paid Fined Expenses Cast of Services CASH OUT TOTAL CASHIN WNETCASHFLOW TOTAL CASH OUT 106 341 25 954 80 387 Click on the Free Cash Flow tab to view the Free Cash Flow calculation Revenue to Cash Analysis Maos Ly Cash Flow Free Cash Flow Split Free cash flaw represents the cash that is returned to or provided by the providers of capital Change in FREE C45H FLOW NOPAT Total Finance Operations FCF less equals 31 511 enne ee 6T pee HMM 25 894 854 Accounts Receivable 126 790 129 870 A 1 080 Inventory 39 806 39 300 508 e Other Current Assets 0 0 0 Accounts Payable 22 345 19 300 Y 3 045 Tax Liability 10 050 10 050 0 Accruals 28 454 26 454 0 Other Current Liabilities 0 0 0 Fixed Assets 34 587 34 687 0 Other non current assets 300 000 300 000 0 Investments 0 0 0 Total Operations 942438 O peos O AO aero eis one analysis one user manual Page 25 Lead and Lag Analysis Select Lead Lag Analysis either by using the Quicklaunch menu under What if Analysis or select the link from the toolkits menu Tool Overview The lag financial indicator is tested for correlation with the lead non financial in
7. Accounting Fees 313 54 0 00 0 00 28 Advertising 3 973 96 3 973 88 0 00 29 Bank Charges 33 54 0 00 0 00 Depreciation 50 00 50 00 50 00 Office Supplies 50 00 0 00 25 00 Operating Expenses u Car Evnancac gaindi n nun T1455 P amp L Report from MYOB Step 2 Adjust spreadsheet to conform with the analysis one import format This step requires the insertion of additional columns amp deletion of blank columns to conform with the format described below Column A Codes Column B Account Description Column C Unused Column D Opening Balance Sheet Amounts No P amp L Data required Column E Period 1 P amp L and Balance Sheet Data 2 Column F Period 2 subsequent period data P amp L amp Balance Sheet Step 3 Specify period names amp period length data Place a YR in column A in the row with the Period Names Description Place a DY in column A in a row with the Period Length days Step 4 Map MYOB accounts to the analysis one accounts Note if importing with a supporting mapping file this step may not be necessary Insert the analysis one import codes see import instructions into Column A After conversion into analysis one import format Clearwater Pty Lid 223 apring airedt Blackburn PIG 3150 Profit amp Loss and Balance Sheet R January February March DY 31 20 31 Income Sales Income 1 Sales Water Cooler 0 00 3 413 78 17 545 85 Service Income 1 Service Other Income 0 00 0
8. FCF Valuation FMP Valuation Gap Analysis Gap Analysis enables the visualisation of the gap between the cash invested in the business the strategic market value of equity and the market capitalisation view FCF Valuation Gap Analysis View FMP Valuation Gap Analysis FMP Equity Value FMP Value gt 459 048 Business Valuation AME 260 871 e to e Book Equity Yalue d Bank Value Equity Employed 245 473 to Market Equity Value M Market Value euer Price 1 48 x Mo of Hae 299764 FMP to Market to Gap 15 397 MOPAT gt Market eis one analysis one user manual Page 35 Credit Risk Scorecard Select Credit Risk Scorecard using the Quicklaunch menu under credit risk tools or the select Credit Risk Scorecard from the toolkit menu Tool Overview The Credit Risk Scorecard tool assists with the visualisation of a lenders assessment of the business s credit risk Users are able to set various requirements through the target module as well as weight these respective targets Assumptions pertaining to these targets can also be edited through the advanced options thus providing a more accurate scorecard for the model Model Selector eis one Toolkit gt Credit Risk Scorecard Qantas Help Credit Risk Scorecard 065 Tg Targets Scorecard Scorecard Trend E Thresholds Target Risk i i Actual i Wweightin Primary Exit Low High Tvpe Result g g Debt Payback yrs 7 26 y
9. Select Economic Profitability either by using the Quicklaunch Menu under Value Creation analysis or select Economic Profitability from the toolkit menu Tool Overview Evaluate the Economic Profit of the business by assessing the extent to which the returns on cash inputs which have been committed to the creation of outputs exceed the cost of those inputs Using the below profitability analysis as an example Profitability Analysis Profitability Revenue ouTPUTS Gross Profit ol Period OST OF SEFYIDES MOPAT Capital Charge 5 PES Dmm Expenses Tax Annualised T EcROCE t Period Economic Profit 392236 16 815 Man Current Assets 334 697 N Zurrent Assets Total Net Assets W ACC Add 169 170 H ifs 946 053 15 29 Working Capital Less TELIIE 111 366 TEE Current Liabilities 57 804 INPUTS View op cl amp Avg EP i Closing Net Assets An investor has 946 053 invested in a company input From these assets a NOPAT of 31 511 was available to be returned to the investor output A positive NOPAT is not bad but the investor expects a return on the capital employed of 18 29 to compensate for the risk that they are exposed to The period capital charge is the return that should have been generated As the NOPAT output is greater than the period charge return on inputs the period economic profit is positive and theref
10. 00 125 82 Total Income 0 00 3 413 78 17 572 78 Cost Of Sales Purchases 2 Equipment 0 00 4 364 26 15 128 53 Total Cast Of Sales 0 00 3 364 26 15 128 53 Gross Profit 0 00 43 52 1 544 15 Expenses General amp Admin Expenses 6 Accounting Fees 313 54 0 00 0 00 6 Advertising 3 373 85 3 873 86 0 00 6 Bank Charges 33 54 0 00 0 00 8 Depreciation 0 00 0 00 0 00 Office Supplies 0 00 0 00 25 00 MYOB reports converted to analysis one import format Step 5 Save the file in either a xls or csv format Excel file menu gt Save Step 6 Import file via the analysis one Import Export function Examples of exporting importing from accounting systems Quicken Export from Quicken gt Import into analysis one A Exporting from Quicken Step 1 View Profit amp Loss amp Balance Sheet Reports from Quicken From the Quicken Report Finder menu select Profit amp Loss non detail report and Balance Sheet non detail report Modify reports for the desired period range MiProfit amp Loss Dates Jal From H To El Columns Month 3 18 AM OF 06 05 Jan 3 2004 Ordinary Income Expense Income Service income d Total Income Expense Bank Service Charges Depreciation Expense Equipment Rental Gifts and Donations Insurance Sickness and accident Insurance Total Insurance Licenses and Permits Miscellaneous Total Expense Het Ordinary Income Het Income My
11. 1145 1933 569 1085 175 1549 687 1630 1343 0 58 2005 EIS One Pty Ltd all rights reserved 1 1 1 1 1 1 1 1 1 1 M1 M2 M3 M4 MS M6 M7 MS Mg M10 M1 Caltex M2 ARC Energy Limited M3 Australian Worldwide Exploration Limited M4 Origin Energy Limited MS Hardman Resources Ltd M6 Paladin Rasources LTD M Santos LTd M8 Tap Oil MS VVoolside Patroleum Group M10 Roc Oil Company Limited 5 43 4 87 45 95 41 15 76 51 15 32 1 75 0 00 0 00 15 49 33 49 30 66 6 87 64 20 62 44 16 90 Profitability EcROCE 82 56 6 69 8 97 10 95 selecting this all charts become semi transparent and the user is able to view the results for all companies easily regardless of where they lie on the main chart This is useful for Radar Charts Switch Axis To switch axis in a chart Useful for Radar Charts Secondary axis for financials and Secondary axis for non financials If comparing non financial data to financial data it is suggested that each data type be on its own axis Thus users can decide which axis is relevant to either financials or non financials Chart Type for Secondary axis allows a different chart type to be selected for the secondary data This is useful for differentiating between financial and non financial data on the resulting chart Step 3
12. 617 446 1 617 446 746 701 74 701 0 0 EBIT 615 189 665 745 FEST FEST 30 795 30 23 Bi ae 62 63 days 70 24 78 24 days 10 76 10 76 days Base Forecast B b5z9 12 19 A 7 19 B db A 0 68 times 0 68 times 121 934 212 427 A Page 22 analysis one user manual Trend Analysis Select Trend Analysis either by using the Quicklaunch menu or the link from the toolkit menu Tool Overview Evaluate performance across multiple periods using charts and graphs to identify patterns and trends which may threaten the health of the business To generate a chart Step 1 Select the desired period range Step 2 Select the chart type Note if charting different data types ie financial ratios with financial values S then two vertical axes with different scales will be used Step 3 Select metrics to include in the chart Select any number of financial ratios non financial metrics KPIs profit amp loss items or balance sheet items for comparison Avoid selecting too many items as this will produce a chart that is too cluttered and therefore difficult to interpret effectively Step 4 Tag metrics from the selected metrics list to include the associated target and or average in the chart Targets for financial ratios and targets for KPIs are sourced from the Financial Scorecard amp KPI Scorecard respectively Step 5 Click on Generate Chart The requested chart is generated Given the diversity of
13. The recipient will be able to view the model but not be able to change edit the model Read only access will be denoted with a padlock symbol on the model selector Share or Copy Model Origin Energy Limited Please enter the email address of the user with whom you wish to share or copy this model How do you wish to share copy this model Share with Read Only Access O Share with Read and Write Access Copy to the specified user note copy vs share If you choose to copy the model to a user then you are giving them a full copy of the selected model This function creates a duplicate of the selected model which is transferred to another user The other user may then make modifications to this model without affecting the original model A copy cannot be revoked If you choose to share this model with a user then both users are entitled to work collaboratively on the same model Model ownership remains with the original user A share may be revoked at any time Origin Energy Limited is currently shared with No Shares currently exist You may create a new share Share with Read and Write Access The model will appear in the recipient s collaborative models section The recipient will be able to freely edit the model It should be noted that any alterations to the collaborative model by the recipient will alter the original shared model as well Copy Model to the Specified user A duplicate of th
14. business entities and graphing options available it is difficult to recommend a formula to use In order to produce a meaningful graph it is advisable that the user understands how the ratios are calculated and what trends or patterns are of interest prior to graphing Combine Periods Jul 00 Jun 02 300 3a nu 36 00 280 34 00 260 32 00 pem 30 00 220 z 20 00 ae LLLLLLLILLILILL LLLILLLj is iE iE iE IE E E E LLLI LLL E E E E E E E E E E E A E E E E E E E E E E E E E E E E E E H LEI PEELE DIESES PEE PE CE SEIDEL EEEE 26 00 200 24 00 db 22 00 150 20 00 15 00 140 lf 16 00 120 14 00 e C15 gt ONC analysis one user manual Page 23 Breakeven Analysis Select Breakeven Analysis either by using the Quick Launch menu under Business analysis tools or select the link from the toolkit menu Tool Overview Use this tool to assess the business s sales volume breakeven levels Review Safety Margins and the level of sales volume required to achieve breakeven for each period Breakeven Analysis Graph Calculations amp What if What if What if of Variable Costs Fixed Costs o Sales Changed by Changed by Changed by VC Total Variable Costs 1698053 6696 0 0 eg Materials Salaries amp Wages No Change No Change Variable Selling Costs FC Total Fixed Costs 594221 23 0 9 0 eg Rent Utilities No Change No Change Fixed Non Cash Expenses R Total Revenue 25
15. calculate the average result rather than the aggregate for the selected period range eis one Page 9 analysis one user manual Loading Source Data Financial Statements Select Loading Financials using the Quick Launch menu under loading and setup or select Loading Financials from the toolkit menu Tool Overview Multiple periods of financial data may be loaded in preparation for analysis The financial statements loaded within this tool are used to underpin other tools within the analysis one toolkit There are two ways that source financial data may be loaded into anlaysis one e Manual input of data into the financial loading tool or e Importing financial statements from a spreadsheet application refer to Appendix A Importing Data Loading Financials m E iem m Loading Financials Profit amp Loss Balance Sheet Import Export c Profit amp Loss Balance Sheet Import Export Revenue Interest Equity Working Capital Sales 1655375 Interest 33976 Share Capital 178457 gt Accounts Receivable 429805 Cost of Sales ariable Other Loan Interest 0 Accumulated Ret Income 999223 Inventory 39680 COS Goods 1064379 Received Excess C
16. can grow its sales revenue at an annual rate of no more than 7 5 without changing the way it does business or changing its financial structure Growth at a greater rate than 7 5 will require a combination of the following the raising of more equity an increase in profitability the retention of more dividends additional debt Using the above result as an example this business can grow its revenue by no more than 7 5 in the period without impacting its financing structure However additional debt of 2493 will be required to help fund the growth eis one Page 28 analysis one user manual Goalseek Select Goalseek by either using the Quicklaunch menu or the link from the toolkit menu Tool Overview The Goalseek tool enables users to perform what if analysis Simply specify a desired target and then view the changes to key business drivers required to reach the desired target Select a metric for Goalseek Gr PROFIT HOPAT ROLE ACTIVITY EP HET CASH u il TT Ee EcROCE 43 0396 5 04 4 128596 16 47 2 73 10115 424768 Actual 11 41 times Target 14 00 Goalseek Mutually Exclusive Strategic Changes to Price 1 56 Achieve an EcROCE of 14 00 i volume i 3 07 I 3 64 iz Poe eoads i 23 7 III COS Other I 9 98 I COS Fixed I 12 76 4 Variable Expenses l 5 28 iz Fixed Expenses other Income NA 79 5 Current Assets l For ex
17. outside the tramlines This form of exception reporting identifies models which are either outstanding or poor performing models A list of models which fall outside the normal expected range are highlighted below the scatter chart Tip To highlight a specific model in the scatter chart click on the respective flag icon from the list of models below the chart Benchmark Analysis Profitability 2005 110 00 u v 100 00 90 00 v 80 00 70 00 60 00 50 00 v 40 00 v Y uper wg cR ARMAR NM RM RM oe e o e o 21 199 e e 20 00 y o oO ee o e Oo ee 10 00 9 o6 e e e e o Oo OQ e eo Q e ao e e ooo 9 2e 7 is o s dd CRTC eee S ENIM A 10 A 10 00 A 20 00 A A 30 00 els one analysis one user manual Page 41 Comparative Charting This is a charting module that allows a user to compare financial amp non financial data in up to ten 10 models Step 1 For each model select a period for comparative analysis Step 2 Select a suitable primary chart Chart Types Model Selector gt Choose Models gt Choose Metrics Choose Metrics Choose one 1 period from each model Santos LTd 2003 Tap Oil 2003 1 Chart Type Curve Caltex 2003 YP Curve w 3 3D Chart ARC Energy Limited 2003 5 E i idwid Transparent ustralian Worldwide j s Exploration Limited 2003 vi Switch Axes useful for radar charts Origin Energy Limited 2003 Hardman Resources Ltd v Use secondary axis for financials Pal
18. range of expected performance 2005 EIS One Pty Ltd all rights reserved support eis one com 61 7 3367 2623 models select the tickbox adjacent to each relevant model The selected models will appear in the Benchmark Comparative Pool The Clear button removes ALL models from the comparative pool Alternatively to remove individual models untick them from the Folder List Analysis Select either Benchmark Analysis or Comparative Charting and then select proceed Note Comparative Charting is limited to a maximum of 10 models eis one Page 40 analysis one user manual Benchmark Analysis This is a statistical analysis amp charting tool that allows users to compare data from any number of models The Benchmark Analysis calculates the mean standard deviation variance and range for selected metrics Step 1 Select the period for benchmark diagnostics Step 2 Select metrics and ratios for the diagnostics Step 3 Select Generate Diagnostics Note Users may elect to drill down by excluding models which fall outside the range of 1 2 or 3 standard deviations Tip Place the mouse cursor over a specific point on the scatter plot to identify individual models amp results The resultant analysis examines the mean standard deviation and range for the population of each metric selected Users are able to easily identify models with results which fall outside the range of 1 standard deviation
19. scorecard An example of when Above target favourable is used is for a measure like number of customer referrals In this instance it would be a favourable result to have more referrals than targeted An example of when Below target favourable is used is for number of staff sick days per month If less sick days are taken than what was set as a goal than this is a positive result Click on Update when all the fields have been completed for that measure Please be aware that it is necessary to press Save prior to exiting the tool Any changes to either Group Titles or Measure can be made via the Edit button eis one analysis one user manual Page 17 Once this is completed the Load Results tool will be populated with group specific data and will be ready for input of result for every period As indicated above the results can either be manually entered or imported When deleting a measure is it important to realise that all results associated with the measure will also be deleted It is imperative that the KPIs be defined amp KPI results loaded before the use of the KPI scorecard tool KPI Scorecard Select KPI Scorecard either by using the Quicklaunch menu or select KP Scorecard from the toolkit menu Tool Overview Rate the overall management of non financial objectives Specify performance targets and monitor the business s ability to achieve those targets The set up process requ
20. that the business s beta factor is known select Option B 11 Barrier to Entry y Q Specify the known Leveraged Beta 12 Market Share E 7 1000 0 Factor In the event that the business s beta factor is already known specify the 13 Specialised Asset E o Option B leveraged beta in the input field to the Leveraged Beta 8 MER right Save this beta factor and proceed to 14 Technology E Un 0 the Cost of Funding tool 15 Foreign Exchange impacts 5p 0 16 Marketability of Equity E 0 5 17 Marketability of Ownership E 0 5 p Y 18 Other User defined Risk E 0 Net Adjustment 1 7 Average market leveraging 95 Market Asset Beta 0 7 2 4 Leveraged Beta for the market is equal to 1 Asset Beta Option A Instructions When a user is unsure of the appropriate beta factor select Option A and use the Business Risk Assessment tool to estimate an appropriate risk factor Itis important that the user completing this task has an intimate knowledge of the business as a judgement call on the extent to which the business risk criteria being considered affects the business relative to the affect that the criteria has on the market as a whole is required The Beta Factor is then increased or decreased in order to reflect these judgements The adjustment for each parameter is made by clicking on the pointer w
21. toolkit menu Tool Overview Use financial ratio analysis to accurately assess a business s financial health Identify areas of strength and identify opportunities for improvement Financial Ratio Analysis Profitability v 2005 iv Current Ratio profitability profitability ratios ARa E Print Report d EM m SasawassGuanumeateunvunasuenss al Accounts Payable Days MM Profitability is a measurement of operational performance It represents the Inventory Days ters of profitability operating performance of a business expressed as a return on sales after all costs hay EG eu t of sales and been covered except interest and tax The drivers of profitability are price volume yopaT e examined with cost of sales and expenses Return on Equity rofitability Return on Total Assets Return on Cap Employed EcROCE Activity Ratio Asset Turnover Ratio GM Return on Inventors ratio flowchart Working Cap Absorption Interest Coverage Ratio 22 9695 Debt To Equity Ratio Sustainable Growth Marginal Cash Earnings Per Share vy e Sales 12 648 800 f Less Cost of Sales Services Gross Profit 4 367 500 WJ 8 281 300 BJ Less Expenses 7 161 400 Add Other Income EBIT 1 800 IPM gt 1 121 700 eecccccccceces Profitability 3 37 Sales 4 12 648 800 ccccccccccccccccccccccccccccsccs SY Unfavourable Trend Downwards Prior Period
22. you wish to modify a se on i benchmark model use the transfer function to copy the model to the current folder of my models 2005 EIS One Pty Ltd all rights reserved support eis one com eis one analysis one user manual Page 3 Folders Models within My Models may be assigned to a folder Folders are designed to make it easier to work with a large group of models In the event that users have a limited number of models it is unlikely that users will need to assign models into folders Accordingly models may be left in the Unassigned folder by default Users may assign models to a folder through the Edit Model Defaults link An entire folder can be shared read or read write with other analysis one users An entire folder can be copied to another analysis one user Delete a folder or move all the models in a folder via Edit Model Defaults The Manage Folder Shares facility allows users to view and revoke current folder shares Only the owner of models amp folders is entitled to establish a share In other words for data security reasons only the model owner of a specific model folder is permitted to share a model folder with another analysis one user There are a number of rules that apply when sharing and copying folders Please read below for more detail There are 2 default system folders All which display all models within all folders Unassigned displays any mode
23. 65047 100 jij Safety Margin Change to 31 5 Current Revenue to achieve breakeven 2005 SALES YOLUME BREAKEYEN 1 758 033 Change variable or fixed costs to see the impact on the breakeven point View the break even graph by clicking on the Chart tab Breakeven Analysis mayos wi Data Chart Interactive Breakeven Chart Total Revenue Line volume 85 308 27 937 Total Cost Line Break Even Point 50 452 B p Variable Costs 0 198 for every 1 of Sales Fixed Costs 40 439 Graph not drawn to scale Move the mouse over the graph to see a what if profit for different sales levels The assumption underpinning the calculation in this graph is that the dollar value of fixed costs and the variable cost ratio per dollar of sales remains constant for any increase or decrease in sales Move the mouse cursor to test a new scenario eis one Page 24 analysis one user manual Cash Flow Analysis Select Cash Flow Analysis either by using the Quicklaunch menu under business analysis tools or select the link from the toolkit main menu Tool Overview Assess how the business has performed in managing inflows and outflows of cash Examine operating and net cash flows Also examine the Free Cash Flow generated by the business Click on the Split tab to view the cash inflows and outflows pictorially Revenue to Cash Analysis Maos wi Cash Flow Free Cash Flow Split
24. First Business Profit amp Loss All Transactions 2185 00 4 2195 00 0 00 0 00 24 00 0 00 0 00 0 00 0 00 24 00 2 1771 00 2 171 00 Feb 29 2004 2 305 00 2 905 00 0 00 0 00 0 00 10 00 60 00 60 00 0 00 0 00 0 00 2 5 35 00 2 035 00 Mar 31 2004 5 075 00 6 075 00 0 00 a g 30 00 0 00 41 65 41 65 25 00 5 65 207 04 5 067 96 5 057 95 Step 2 To export the report select Print_ Print Reports Ask a help question Ask Print tg C Printer Microsoft Office Document Image Writer or Y Options res Rn ascu text File Help Mate To install additional printers or to change port l assignments use the Windows Control Panel Preview Orientation Page Range ir Portrait 9 Al C Pages Landscape xa io Fram To fa Page Breaks Smart page breaks widow arphan control Mumber of capies Page break after each major grouping Fit report Ea pagets wide Print in colour colour printers only Step 3 Select the print to file option Select Comma delimited file as the output format Repeat this process for the Balance Sheet or Profit amp Loss report Print Reports Ask a help question Ask How Do I Print ko gun C Printer Microsoft Office Document Image Writer or Y Options spl File Comma delimited File ASCII text File Comma delimited File Preview Tab delimited File
25. Loss or Balance Sheet items Note By default non cash expenses adjustments abnormal items interest received and dividends are set to zero and the balance sheet retains its base period values Accept Assumptions to proceed eis one analysis one user manual Page 21 Step 5 Press the Generate Forecast button to complete the forecast Users will then be redirected to the newly created financial statements Users may then proceed to perform an analysis of this forecast period Forecast Setup Forecast Drivers forecast drivers Revenue Drivers gt Price gt Volume Cost of Sale Drivers COS Goods COS other Fixed COS Expense Drivers Fixed Variable Rate Drivers gt Effect Int STD LTD Effective Tax Rate Balance Sheet Drivers Days Receivable gt Days Payable Days Inventory gt View Edit other forecast assumptions Sensitivity Analysis Impact on Ratios Base Forecast GP Margin 33 2855 33 2855 gt Prafitability 9 12 66 17 07 r gt NOPAT 10 5595 12 4195 Ah FOF 4 593 382 603 422 F1 To delete a forecast period enter Timeline Setup eis one change in percentage 25 change in rate 4 25 96 change in days f 25 days Impact on Ratios 2 gt gt ROCE EckROCE Activity EF zs Base Period Forecast 365 days 365 days 4 860 570 4 860 570 3 243 124 3 243 124 0 0 0 0 1
26. NGC one analysis one User Manual Advanced Reference Guide eis one analysis one user manual Pagei ei eis one Website address www eis one com Product Support Email Support support eis one com Phone Support 1300 882 035 Advanced Manual Version 1 7 03 04 07 eis one Page ii analysis one user manual Table of Contents eis one Overview Accessing eis one 1 Login 2 Account Management 2 Password Administration 2 Model Management Folders A Create aNew Model 5 Duplicate a Model gt Sharing a Model 5 Share Types 6 Transfer a Benchmark Model 6 analysis one Toolkit Creating a New Period 7 Timeline Conventions 8 Modifying Periods 8 Combine Periods 9 Loading Source Data Manual Data Input 10 Detailed Lines 1 analysis one Tools Financial Scorecard 12 Financial Ratios 15 KPI Setup 16 KPI Scorecard 18 Forecasting Financials 2 Trend Analysis 23 Breakeven Analysis 24 Cash Flow Analysis 25 Lead and Lag Analysis 26 Marginal Cash Flow Analysis 27 Sustainable Growth 28 Goalseek 29 Risk Assessment Beta 30 Cost of Capital WACC 27 Economic Profitability Analysis EP 33 Business Valuation 34 Credit Risk Scorecard 36 Credit Risk Ratio Analysis 39 Compare Models 40 Benchmark Analysis 41 Comparative Charting 42 C1S gt one analysis one user manual Page iii analysis one Overview analysis one is a web enabled application which enables users to access sophisticated performance management and a
27. Promotiona traffic on Activit ae G 4 5 SKU s g Security Group 4 29 NE 3 Entrants Engagemer Store experience eis one analysis one user manual Page 19 To view Trends for multiple periods select Scorecard Trend For every period a corresponding financial and non financial scorecard result is shown Strategy Scorecard mayos v E Targets Scorecard Scorecard Trend Jul 04 Aug 4 Sep 4 Oct 04 Nov 04 LEAD Strategy E E E E E Scorecard LAG Financial D E E E E a D Scorecard Dec 4 Jan 05 Feb 05 Mar 05 Apr 05 LEAD Strategy E E E A E D Scorecard LAG Financial E E E E D B B Scorecard May 05 Jun 05 jul 05 Aug 05 LEAD Strategy E D E E E Scorecard LAG Financial A As A A Scorecard eis one Page 20 analysis one user manual Forecasting Financials Select Forecast using the Quicklaunch menu under loading and setup or select Forecast Financials from the toolkit menu Tool Overview The forecast tool allows for the forecasting of future financial performance based on past financial performance Step 1 Select Base Period Select the based period from which to commence the forecast Forecast 2005 w Generate Forecast Setup forecast setup Step 1 Select Base Period at which to commence the Forecast Selected Bas
28. Revenue Revenue O Revenue General 4860570 Sales 4560570 a Sales Revenue Cost of Sales Variable Revenue 2 t COS Goods 32435124 e Revenue 3 COS Other 0 Revenue 4 Cost of Sales Fixed ost of Sales Fixed C NE oae Fixed COS t Revenue 6 Man Cash Revenus 7 Gross Profit 1 617 446 Revenue a Expenses C Total Revenue 4860570 Fixed 748701 i Variable D Update Cancel ALLE eis one analysis one user manual Page 11 Financial Scorecard Select Financial Scorecard by using the Quicklaunch Menu under business analysis tools or select Financial Scorecard from the toolkit menu Tool Overview The Financial Scorecard enables users to assess a business using performance targets and monitor the business s ability to achieve those targets When a new model is created default targets and weightings are applied If a template is specified during create a new model then default targets amp weightings are inherited from the template model In order to produce accurate scorecards targets relevant to the business should be applied To change the target for a ratio highlight the corresponding field under the Edit Target heading and type in the new target Note targets apply to all periods within the model To change the weighting for a ratio left click on the weighting icon that is appropriate The weighting selected is colour highlighted If you wish to underst
29. Selecting ratios and metrics Users can select financial non financial profit and loss balance sheet and detailed line ratios The detailed lines are taken from the first selected model eis one analysis one user manual Page 43 Step 4 Select Generate Chart Step 5 To perform another comparison select Choose Metrics from the breadcrumb trail Example Choose a period for each model selected It is recommended that this period be the same for each model to produce a worthwhile comparison Tip A useful comparison may be to compare an actual model budget model and forecast model for the same period and company This enables the user to see how results are tracking compared to budget and whether forecast assumptions are reasonable eis one financial ratios Current Ratio NOPAT Quick Ratio Return on Equity A C s Receivable Days Return on Total Assets A C s Payable Days Return on Capital Employed Inventory Days wv EcROCE Gross Profit Margin Activity Ratio Profitability 95 Asset Turnover Ratio non financial metrics D profit amp loss Sales Total Expenses COS Goods Operating Income COS Other Other Income Fixed COS EBIT Fixed COS Non Cash Interest Short amp Long Term Gross Profit Other Loan Interest Fixed Expenses Received Excess Cash Variable Expenses Net Interest Non Cash Tax B balance sheet Share Capital Long Term Debt Retained Income Other Loans Reserves Excess Cas
30. adin Rasources LTD 2003 hd Use secondary axis for non financials Roc Oil Company Limited 2003 Chart type for secondary axis Curve w Woolside Patroleum Group 2003 Charting Options 3D Chart Selecting this will make standard linear charts 3D Transparent If this is unselected the larger data items generally over shadow the smaller data items By AREA CHART Model Selector gt Choose Models gt Choose Metrics gt Comparative Charting CURVE CHART Model Selector gt Choose Models gt Choose Metrics gt Comparative Charting 1 1 1 1 1 1 1 1 1 M1 M2 M3 M4 MS M6 M7 MS Mg M10 M1 Caltex M2 ARC Energy Limited M3 Australian Worldwide Exploration Limited M4 Origin Energy Limited M5 Hardman Resources Ltd M6 Paladin Rasources LTD M Santos LTd M8 Tap Oil MS Yoolside Patroleum Group M10 Roc Oil Company Limited 3 Gross Profit Margin 100 00 E Profitability 487 sas 8256 897 1532 o oo 3066 6244 43 71 24 92 3 EcROCE 4445 1933 amp 69 1085 175 1549 687 1680 1343 0 58 2005 EIS One Pty Ltd all rights reserved T M1 M2 M3 M4 MS MG M7 MS MS M10 M1 Caltex M2 ARC Energy Limited M3 Australian Worldwide Exploration Limited M4 Origin Ene
31. ample to achieve a 3 improvement in Return on Capital Employed what changes are required to either of the following drivers price volume cost of sales variable expenses fixed expenses receivable days inventory days payable days The goalseek tool helps answer the How do we get there question The tool assists decision makers to formulate strategies to achieve business targets and avoid the default hit amp miss approach In addition the tool also assists management to understand amp visualise the impact of key drivers on business performance Goalseek changes for 8 key ratios Gross Profit 96 Profitability 96 NOPAT 96 ROCE ECROCE Activity Ratio Economic Profit and Netcash Tool Instructions Select a period from the period selector menu gt Select a ratio for Goalseek gt Specify a desired result for the selected ratio the default goalseek target is inherited from the financial scorecard gt Press the Goalseek button Note The change associated with each driver represents the mutually exclusive action required to achieve the desired target I NA is displayed rather than a change value then no change to the respective driver will achieve the desired target eis one analysis one user manual Page 29 Business Risk Assessment Beta Factor Assessment Select Business Risk Assessment either by using the Quicklaunch menu under Value Creation analysis or by selecting Risk Assessm
32. and the mathematical weighting given to each weighting selection i e H M L and N A click on the explanation icon E located next to the weighting header Financial Scorecard Targets Scorecard Scorecard Trend Liquidity Ratios Actual Edit Target Target Type Result weighting E Current Ratio lese 1 4 above target favorable x M Quick Ratio s nist 1 above target favorable Vo G Working Capital EcROCE 7 19 5 5 above target favorable Asset Usage t Activity Ratio 0 68 times 0 41 above target favorable Accounts Receivable Days 62 63 days 90 below target favorable o 8 Accounts Payable Days 78 24 days 78 below target favorable x H Inventory Days 10 76 days 11 below target favorable H Profitability Ratios Gross Profit Margin 33 2895 33 above target favorable m G Profitability acc 18 above target favarable G NOPAT 10 55 13 5 above target favorable X Efficiency Ratios Return on Equity 13 71 6 above target favorable T G Return on Total Assets pet re above target favorable V G Return on Cap Employed 3 52 5 9 above target favorable Ww G 2 Asset Turnover Ratio 0 61 times 0 38 above target favorable GM return an Inventory Jens 200 above target favorable ua Working Capital Absorption 4 02 35 below target favorable u Gearing Interest Coverage Ratio 4 55 times 5 65 above target favorable H Debt to Equity Ratio 0 71 1 0 09 below target favorable x D O
33. ase period for the valuation was 2006 and you wish to include 3 additional forecast periods 2007 2008 and 2009 the tick box above each period name will include the forecast data in the valuation calculation If forecast data is not specified the tick box unchecked then a custom growth rate for NOPAT may be specified for the period Step 3 Specify growth rates for NOPAT as necessary NB the growth rate specified for NOPAT is used to calculate the NOPAT for the first year of the beyond period and the constant growth rate to perpetuity Step 4 Review the valuation Note the cost of capital WACC used in the valuation tool is sourced from the Cost of Capital tool NB the NOPAT valuation will generally not match the FCF valuation The reason for this is that the NOPAT method aiming at simplicity assumes that NOPAT is a close approximation of Free Cash Flow The forecasts included in the FCF valuation may show that this is not a valid assumption for the model Gap Analysis Gap Analysis compares the FCF FMP Value the Book Value and Market Value which in the case of an unlisted company may be an estimated or desired value perceptions and visually highlights the differences between each perception Gap Analysis can determine if a company is over or under valued If a company s FCF FMP value exceeds its market value the company is said to be under valued The FCF FMP Value is derived from the business valuation tool
34. ash 0 Reserves 115269 Other Current Assets 151500 COS Other 0 Net Interest 33 976 gt Other Equity 0 Total Current Assets 620 985 Cost of Sales Fixed gt Minorities 35423 Fixed COS 0 Tax 37961 Total Equity 1 328 372 gt Accounts Payable 375738 Non Cash 0 NPAT 97 045 mM me Other Funding E 9x Ranan Gross Profit 590 996 gt Deferred Tax 21138 gt Accruals 70672 Exsensas gt Adjustments 0 p gt Dividends 22922 Other Current Liabilities 2804 Fixed 312092 gt Abnormals 6584 Other 88712 Total Current Liabilities 462 727 gt Variable 0 Minorities 5593 Total Other Funding 132 772 Working Capital 158 258 Non cash 131925 Net Income 98 036 Debt Total Expenses 444 017 ye Dividends 22965 gt Short term debt 223049 Non C rrent Assets Operating Income 146 979 p Retained Income 75 071 gt Long term debt 520034 Fixed Assets 1009452 Other Income 22003 Adjustments to RI 2409 Other Loans Other Non current Assets 859772 gt Excess Cash 0 Investments 176745 EBIT 168 982 L etaila ne Detailed Lines do not Exist Total Debt 743 083 Total Non Current Assets 2 045 969 Detailed Lines Exist Total Finance 2 204 227 Total Operations 2 204 227 When a model is created the Opening Balance and the First period are created by default To construct additional periods within a model see Creating a New Period instructions As previously specified o
35. ate krd 63 B ml s Marginal corporate tax rate t 30 E Cost of barrawing funds Cost of Equity tke Risk free rate of return Rf E s Market Risk Premium MRP E Beta dmm 2 4 E Leveraged Beta BD ke Rf B MRP o Market Value of Debt 50 IE 4 08 E 50 28 Market Value of Total Capital wid E for this organisation Cost of equity funds Weighted Average Cost of Capital k k 1 t k wd x kd 1 wd x ke Before Tax WACC 26 13 El After Tax WACC E To enter in a number simply highlight the text in the field that needs changing and type the appropriate number It is possible to tab between each field Click on the E icon for an explanation of what is required in each field To save the data for the one period only ensure Copy to all Periods is unselected and press Save To apply the WACC across all periods in the model please ensure that the Copy to All Periods box is ticked and then press Save Please note that if the beta factor is not copied to all periods or created in all periods than the WACC will not be the same in all periods Note The cost of capital tool is used to underpin the calculations in the economic profitability tool To calculate an accurate economic profit care needs to be taken when calculating the beta factor and when completing the cost of capital tool eis one Page 32 analysis one user manual Economic Profitability Analysis EP
36. ble Yalue 606 073 Less Preferential Payments 95 40 121 214 Estimated Recoverable Value after Debt Repayment 484 858 Update Cancel eis one analysis one user manual Page 37 Scorecard To view the resultant Credit Risk Scorecard select the Scorecard tab Model Selector eiz ane Toolkit gt Credit Risk Scorecard Qantas Credit Risk Scorecard Targets Scorecard Scorecard Trend Debt Payback Debt to Equity 1 Li 3 High Risk Results 1 Acceptable Risk Results Times Q Primary 5 Law Risk Results Secondary Debt to Cover Exit Exit Total Assets a a z Tu LI a at Estimated Recoverable Value m E E Notional Debt Service 3 Debt Debt Service X a Debt Facilities Cover Servicing EBITDA a 4 LI a 1 a an Available Cash Flow Scorecard Trend To view the resultant scorecard trend select the Scorecard Trend tab Model Selector eis one Toolkit Credit Risk Scorecard Qantas Credit Risk Scorecard Targets Scorecard Scorecard Trend 2001 2002 003 2004 2005 Credit Risk R Rating eis one Page 38 analysis one user manual Credit Risk Ratio Analysis Select Credit Risk Analysis using the Quicklaunch menu under credit risk tools or the link from the toolkit menu Tool Overview Credit Risk Ratio Analysis allows users to understand and monitor performance measures which af
37. csv file The import function enables the efficient loading of multiple periods of source data both financial amp non financial results into the analysis one toolkit Access the Import Export screen from the Import Export tab on the Financials Loading Tool or Non financials Loading Tool Import Methods Please note It is not a requirement that the import template be used rather this file merely serves as a guide to the required import format Method A Use the import template Instructions 1 Download the import template xls 2 Populate the template according to the import file specification 3 Savethe excel file in either a xls or csv file format 4 Upload the import file Method B Export data from source accounting system adjust exported reports to conform to analysis one import format Instructions 1 Export from Profit amp Loss and Balance Sheet from accounting package 2 Modify excel spreadsheet to conform with analysis one import file specification 3 Savethe excel file in either a xls or csv file format 4 Upload the import file Method C Export data from an analysis one model update exported file then re import Instructions 1 Export from analysis one into a csv file note the exported file conforms to the import specification Edit the exported file Add periods or Delete periods 3 Save the excel file in either a xls or csv file format Upload the import file Metho
38. d D Import using an import file amp a supporting mapping file Instructions See Mapped Import Instructions Import File Specification 1 Complete financials import lt Column A Column B Column C Column D Column E Column F Account Description Unused Opening Balance Sheet Amounts No P amp L Data required Period 1 P amp L and Balance Sheet Data Period 2 subsequent period data P amp L amp Balance Sheet 2 Additional financials import Column A Column B Column C Column D Column E analysis one Account Number see analysis one Import Codes Account Description Unused Period 1 P amp L and Balance Sheet Data Period 2 subsequent period data P amp L amp Balance Sheet n a row above the source data insert YR in column A Period Description in each column beginning with column D n a row above the source data insert DY in column A Number of days for each period in the corresponding column To import additional period data eg Avg Number of Shares use import code NS o import additional period data eg Avg Share Price use import code SP cO mel Opening Bal Jan O5 31 31 Profit amp Loss Sales Australia 900 Sales NZ 400 Total Sales 1300 COS Australia 270 COS NZ 120 Total COS 390 Wages 100 Insurance 30 Rates 45 Rent 120 postages 10 Total EXP Fixed 305 Other Income 100 Balance Sheet Share Capital 100 120 Feb 05 28
39. dicator using data from prior periods This analysis allows for the identification and assessment of the relationship between indicators across time Lead Lag Analysis LagvsLead LeadysLead Measure Lag Revenue Staff Meetings Lead Products per Client vi Alliances Formed Appointments Other lead indicators with a d relationship to the selected Prospecting Contacts lag indicator Interviews New Interviews Total Time Client New of Sales Sales Marketing Activities Products per Client Clients per AR Clients Staff Member New Clients Client Exit SLAs per Client Staff Perf Reviews Staff Satisfaction Staff Training Days Principal Training New Time Interview New Appointments New Prosp Contacts yl Bus Plan Review Correlation 0 31 Impact insignificant insignificant insignificant insignificant insignificant insignificant insignificant insignificant insignificant insignificant insignificant insignificant insignificant insignificant insignificant insignificant insignificant insignificant insignificant insignificant insignificant insignificant insignificant insignificant Omitted indicators have no impact on the selected lag indicator The lead indicator Products per Client has insignificant impact 0 31 on the lag indicator Revenue Lag refers to Financial Data ead refers to Non Financial Data 120000 110000
40. e Period 2005 Base Period Balance Sheet Balance Yes Last Period in Model Yes Step 2 Specify a Period Name for the Forecast Period Period Name Period Length description days 2006 365 GO Proceed to Forecast Note Recommended Period Naming Conventions In order to utilise the Full benchmarking amp comparative analysis capabilities of the eis one application it is strongly advised that users adhere to the recommended period naming convention gt Monthly Models Annual Models 01 05 01 05 2005 Jan 05 Jan 05 Jan 2005 January 05 January 2005 Models with period names which do not comply with the recommended naming convention will be unavailable for analysis in the comparative or benchmark diagnostic tools Step 2 Specify Period Name for forecast Enter a period name and length then select proceed to forecast Note period naming conventions for periods still apply For information on period naming conventions view the Timeline section Step 3 Forecast Drivers Users can alter a forecast by manipulating the forecast drivers Select and drag the driver slider to increase or decrease the change effect for each forecast driver Forecast drivers include Revenue Cost of Sales Expenses Rates and Balance sheet drivers Step 4 Other forecast assumptions optional Select View or Edit other forecast assumptions to alter the specific forecast values for some individual Profit and
41. e original model is copied to the recipient and will appear in their My Models section The original user will have no control over the duplicate of the original model Any modifications made by the duplicate model will be independent of the original model It should be noted that the receiving user is able to share the duplicate model with other users Revoking a Share By clicking on Revoke from the share model screen an existing model share may be terminated Delete a Model To delete a model simply click on Delete from the Model Selector Note once the model has been deleted it cannot be restored Transfer a Model from the Benchmark Database All benchmark models are provided on a read only basis The Transfer function enables users to create a duplicate copy of any Benchmark model and move that model into the user s My Models section This duplicate model may then be freely modified When a benchmark model is transferred the model is copied into the My Models section and gains full read amp write capabilities Similar to Copy the transferred model will be independent of the original model from which it was transferred Itisimportant to note that the benchmark model will be transferred by default into the currently opened folder within My Models when the Transfer is actioned eis one Page 6 analysis one user manual analysis one Toolkit Select a model from the Model Selector screen to ente
42. edit risk analysis tools Balance Sheet Accounts Equity Share capital Opening Retained Income Reserves Other equity Minorities Other Funding Other funding Provision for Deferred Tax Other funding Provision for Dividends Other funding Other Provisions Debt Short term debt Long term debt Other debt Excess Cash 33 34 38 39 40 41 42 Current Assets Accounts receivables Inventory Other Current assets Current Liabilities Accounts payable Income tax liability Accruals Other Current liabilities Non current Assets Fixed Assets Non current assets includes Intangibles Investments analysis one Import Codes Non Financials 25 User defined Non Financial Metrics 51 Non Financial Metric 1 1 52 Non Financial Metric 1 2 53 Non Financial Metric 1 3 54 Non Financial Metric 1 4 55 Non Financial Metric 1 5 61 Non Financial Metric 2 1 62 Non Financial Metric 2 2 63 Non Financial Metric 2 3 64 Non Financial Metric 2 4 65 Non Financial Metric 2 5 71 Non Financial Metric 3 1 72 Non Financial Metric 3 2 73 Non Financial Metric 3 3 74 Non Financial Metric 3 4 75 Non Financial Metric 3 5 81 Non Financial Metric 4 1 82 Non Financial Metric 4 2 83 Non Financial Metric 4 3 84 Non Financial Metric 4 4 85 Non Financial Metric 4 5 91 Non Financial Metric 5 1 92 Non Financial Metric 5 2 93 Non Financial Metric 5 3 94 Non Financial Metric 5 4 95 Non Financial Metric 5 5 NB no
43. ent from the Toolkit menu Tool Overview There are two options available within the software to set the business s beta factor e use the assessment tool to evaluate the business s beta factor Option A e input the known leveraged beta factor for the business Option B Business Risk Assessment Business Risk Assessment v Copy To All Periods Mavo5 w Ey Setup Beta Factor Assessment Setup Beta Factor Assessment amp 5 4 3 2 1 0 1 2 3 4 5 Future Impacts E LULL 02 m El lt lt 1 o H Select one of the two options below gt Option A 2 Interest Rates In the event that the business s beta factor is unknown select Option A and proceed to the business risk 3 Type of Business E 0 2 assessment tool 4 Location E 7 0 1 Use the Beta Factor Assessment Tool to 5 Mgmt skills performance record 4 perform a practical assessment of eighteen d Option A A business risk criteria to assess the business s MS Ero AUCE KNS 5 Y 083 Unleveraged Beta factor The business risk 22 j i 7 Competition E _ La excluding all financing risk e 8 PastPerformance Sustainability E ____ 0 9 Inflation E n O 9 Option B 10 Intellectual Property E 7 7 In the event
44. er workflow Model Defaults b import export timeline setup edit model defaults b user workflow bulk import eis one analysis one user manual Page 7 Timeline Setup Creating a New Period New periods may be created in either two ways A user either creates the new period in the Timeline Setup or when importing source data The import sheet will be discussed in Appendix A Timeline Conventions Select Timeline Setup from the toolkit menu In the Period Name field specify the name of the new period to be created Also specify the Period Length in days Note In order to utilise the full benchmarking amp comparative analysis capabilities of the analysis one application it is strongly advised that users adhere to the recommended period naming convention Click Create to save new period details To view the naming conventions click Show Period Naming Conventions Users may also enter the number of shares and average share price for each period Modifying Periods Once a period has been created users can edit the model period using the edit icon in the Modify existing period s section This allows all properties of existing periods to be modified To delete a period click the delete period icon Once a period is deleted all the data from that period is also deleted eis one Page 8 analysis one user manual Combine Periods Select Combine Periods from the toolkit menu O
45. fect the business s credit risk Model Selector gt eis ane Toolkit Credit Risk Ratio Analysis Mew Corner Store Monthly Help Credit Risk Ratio Analysis Interest Times Cover fw Jun05 v interest times cover primary exit ratio analysis Print Report amp The Interest Cover ratio provides an indication of the ability of the business to meet ongoing interest bills and therefore service debt ratio flowchart 2 62 times 1 5 3 times A Q N Sales Income 161 754 Messen Less Cost of Sales Services Gross Profit mm arc Less Expenses Other Income EBIT 51 661 ee TET 7 027 heee Interest Times Cover Met Interest SJ Unfavourable Trend Downwards Prior Period 5 26 times ratio calculation EBIT 7027 Net Interest 2683 2 62 times The drop down menus at the top right of the screen allow a user to select a credit risk ratio and period respectively Each ratio includes a definition flowchart and detailed calculation The ratio analysis section at the top right hand corner provides a colour coded summary analysis of each ratios performance during the period Red denotes an unacceptable risk yellow an acceptable risk and white a low risk eis one analysis one user manual Page 39 Compare Models Overview The benchmark amp comparative analysis tools enable the analysis of models against other models within the analysis one application Choosing Models All models available for c
46. gg 31 Tatal Other Current Assets gg gg consolidated P amp L and Balance Sheet from Quicken Step 2 Adjust spreadsheet to conform to the analysis one import format This step requires the insertion of additional columns amp deletion of blank columns to conform with the format described below Column A Codes Column B Account Description Column C Unused Column D Opening Balance Sheet Amounts No P amp L Data required Column E Period 1 P amp L and Balance Sheet Data Column F Period 2 subsequent period data P amp L amp Balance Sheet Step 3 Specify period names amp period length data Place a YR in column A in the row with the Period Names Description Place a DY in column A in a row with the Period Length days Step 4 Map Quicken accounts to the analysis one accounts Insert the analysis one import codes see import instructions into Column A After conversion into analysis one import format YR Jan O4 Feb 04 Marl Apr O4 DY 31 28 31 30 Profit amp Loss EN Income 1 Service income 2905 6075 1025 E Total Income 2905 BUS 1025 Expense 8 6 Gifts and Donations 10 0 0 9 6 Licenses and Permits 25 6 Miscellaneous 2h 0 6 Bank Semice Charges U 0 Su 6 Equipment Rental Su 0 8 Depreciation Expense B Insurance T Sickness and accident Insurance BU 4 Tatal Insurance BU 12 Total Expense z0 207 30 Met Ordinary Income 2035 Sobo IS Net Income 2035 Sobo J95 Balance S
47. h Other Equity Total Debt Minorities Total Finance Total Equity Accounts Receivable DeferredTax Inventory Dividends Other Current Assets Other Funding Total Current Assets Total Other Funding Accounts Payable Short term debt detailed lines Revenue General Fixed COS General Revenue 1 Fixed COS 1 Revenue 2 Fixed COS 2 Revenue 3 Fixed COS 3 Revenue 4 Fixed COS 5 Revenue 5 Fixed COS 4 Revenue 6 Fixed COS 6 Revenue 7 Fixed COS 7 Revenue 8 Fixed COS 8 Interest Coverage Ratio Debt To Equity Ratio Sustainable Growth Rate GMROI Ratio Working Capital Absorption Earnings Per Share MPAT Adjustments Abnormals Minorities Net Income Dividends Retained Income NOPAT Economic Profit Tax Liability Accruals Other Current Liabilities Total Current Liabilities Working Capital Fixed Assets Other Non current Assets Investments Total Non Current Assets Total Operations Fixed Exp General Fixed Expense 1 Fixed Expense 2 Fixed Expense 3 Fixed Expense 4 Fixed Expense 5 Fixed Expense 6 Fixed Expense 7 Fixed Expense 8 Page 44 analysis one user manual NOTES eis one analysis one user manual Page 45 en cis one appendix A Importing Instructions eis one analysis one user manual Pagei analysis one Import Instructions Overview As an alternative to manual data entry users may elect to import data from either a Microsoft Excel xls file or a Comma Separate Value
48. heet ASSETS Current Assets Current Savings 38 ANZ 4211 016 12362 14182 Total Current Savings 1211 U16 12362 14182 Accounts Recaerivable 33 Accounts Recewable U4 594 1583 Bh Total Accounts Recemable 204 594 1583 Bh Other Current Assets 38 Undeposited Funds 0 ag ag ala Tatal h ame Peet A mam ede ri ri OC OC analysis one import format note only rows with a value in column A are imported Step 5 Save the file in either a csv or xls format Excel file menu gt Save As gt File type csv Step 6 Import the file via the analysis one Import Export function
49. hich is set to a default position of zero and dragging it left or right to the desired adjustment position Alternatively just click at the desired adjustment position and the pointer will move to position Consider each of the eighteen risk criteria carefully and make an assessment for each For a detailed explanation of each criterion simply click the E explanation Icon located next to each criteria The net effect of the eighteen parameters is calculated to estimate the net adjustment to be made to the Beta Factor for the market as a whole Because all the parameters relate to business risk the adjustment must be made to the unleveraged asset Beta Factor for the market as a whole In order to determine the unleveraged Beta Factor for the market as a whole the user must enter the average leveraging for the market Our research indicates that a standard average leveraging is 4096 To specify a different Beta Factor for each eis one Page 30 analysis one user manual period leave Copy to All Periods unticked Ensure that Save is pressed before exiting the screen If you want the Beta to be applied to all periods within the model tick Copy to All Periods prior to pressing Save Option B Instructions Option B will be more commonly used when dealing with listed companies where the leverage beta of the business is known or publicly available It is also more practical and time efficient to use this option for models
50. inal cash flow effects of additional sales Assess how each additional dollar of sales will either generate a cash shortfall or cash surplus Step 1 Specify the additional sales associated with the transaction Step 2 Specify the change in fixed operating expenses required to fund this transaction Step 3 Specify any changes in non current assets required to fund this transaction Step 4 View and evaluate the marginal cash flow effect of additional sales using the Marginal Cash tab Marginal Cash Flow Analysis Mass lw Setup Marginal Gash Next 100 Marginal Cash Analysis Setup 1 Specify the additional sales associated with the transactian Additional Sales 2 specify the change in fixed operating expenses Change in Fixed Casts n required to fund this transaction Change in NCAs o 3 Specify any changes in non current assets required to fund this transaction 4 Activate the Model Activate Model e All the fields are interactive so they can be changed to reflect the current conditions of the additional sale For example the GM 96 drawn from the financial statements for that period may not be reflective of the GM for the additional sale To change any field highlight the existing number and then type the new number Marginal Cash Flow Analysis May 05 v Setup Marginal Cash Next 100 4 R Days Additional Revenue Er kesas working Capital Bienen oa ee Es GM 95 Wotk in ProgresDays A P Days E
51. ired for the KPI scorecard is identical to that required for the Financial Scorecard Please review the section titled Financial Scorecard for detailed instructions When a new model is created there are no targets or groups Only after measures have been defined in the Setup KPIs tool will the framework for the KPI Scorecard appear complete One area of differentiation in presentation is the inclusion of the Type column This simply informs the user of whether achieving above or below target is a favourable result A represents measures for which an above target result is favourable whilst B represents measures for which a below target result is favourable To change the weighting for a measure select a H M L or N A icons If you wish to understand the mathematical weighting given to each weighting selection i e H M L and N A click on the explanation icon E located next to the weighting header Strategy Scorecard Targets Scorecard Scorecard Trend Customer Intimacy Actual Edit Target UM Type Result Weighting E 1 1 Returned Items 185 120 Units B x H 1 2 NCR Catelog 57 48 No of Customer B x 9 1 3 NCR Cancelled ie 12 No Customers B V H 1 4 Complaints 228 50 Number e 0 9 1 5 SM rating ne an Score n1 x L Coverting the Sale 2 1 Sales per FTE 127455 156000 value 4 00 2 2 Av Value per unit So 45 Value A m uw 2 3 Av Value spend a 55 Value A V M
52. j i Fixed Cost Variable Cost lee 44 7 eres Q Loss re o Interest EBIT Change in NCA en Tax Interest 0 o o Additional mE Tau 0 Dividends Retained Income Debt Equity 95 Debt DNE L VETE mz Bue Divs 0 j4 Marginal Operating Cash Flow Marginal Cash Investment Note modifications within this tool will not affect the source financials statements The Next 100 module examines the cash flow effects of the next 100 of Sales Volume eis one analysis one user manual Page 27 Sustainable Growth Select Sustainable Growth either by using the Quicklaunch menu under What if Analysis tools or by selecting Sustainable Growth from the toolkit menu Tool Overview The Sustainable Growth toolkit determines the amount of future growth a business can generate without changing the way it does business and without changing its debt to equity ratio Sustainable Growth Model Mar05 v Sustainable Growth amp DEBT EQUITY D OPENING EQUITY OPENING DEBT ital ara cua H Additional Debt oO Oo Retained name Sales Income O Annual o Sustainable 3 Dividends ordinar Growth Rate Cost of Sales Opening Equity 7 5 Tax Interest Other Inc Variable Costs 3806 Fixed Costs IT 40262 The sustainable growth model identifies how much a business can grow without changing the way it does business and without changing the debt equity ratio This business
53. ls not assigned to a specific folder e When copying a model to another user via the share button the copied model will appear in the unassigned folder in the other user s account e When copying a folder to a user that folder is recreated in the users account and all models will appear in the correct folder e Models that appear in the collaborative models section are only able to be allocated or re assigned to a folder by the original model owner e Sharing a folder actually creates the share for every individual model in that folder amp every subsequent model added to that folder Model owners may revoke an individual model share within the folder As a result that specific model will not be accessible by the recipient of the folder share eis one Page 4 analysis one user manual Create aNew Model The link to Create a New Model is located below the list of My Models In the Model Setup the following information must be specified Model Name Select a meaningful name for your model Model template This contains a list of predefined industry templates Eg Manufacturers Accounting Firms Legal Firms Selecting an appropriate template will save time Initial Timeline Setup Specify a period name for the Opening Period and First period Also specify the number of days for each period Terminology This contains default financial terminologies for specific industry groups Model Defaults Includes detai
54. ls pertaining to Tax Rate Interest Rates Scale and Currency These can be edited later via Edit model Defaults on the My Models page Folders Where to store the model It can be placed in an existing folder or in a new folder Duplicate a Model When a model is duplicated all data and model defaults used in the original model are copied to the new model To create a new model please complete the following Model Setup Model Name eg Company Name Pty Ltd Annual Model Owner Creation Date 6 12 2005 2 01 16 PM Model Template Use a predefined model template None standard industry templates Initial Timeline Setup This period reflects the opening balance sheet period Opening Period Name Opening Balance It is recommended to keep the default of Opening Balance This is the first period with a full profit and loss First Period Name Period Length days Additional periods can be added later via Timeline Setup Terminology Select the desired financial terminology Default iv Model Defaults Default Tax Rate 30 00 Default Interest Rate 10 00 Default Scale 0 s v Default Currency Australian Dollars v Defaults may be edited later via Edit Model Defaults Folders Specify where this model is to be stored Select an existing folder Unassigned v or specify a new folder name To d
55. n assumes that HOPAT is a close approximation af Free Cash Flow FOR For a Discounted Free Cash Flow Valuation Step 1 Use the period selector to select the base year at which to value the business Step 2 Select which periods of forecast financial data to include in the valuation For example if the base period for the valuation was 2006 and you wish to include 3 additional forecast periods 2007 2008 and 2009 the tick box above each period name will include the forecast data in the valuation calculation If forecast data is not specified the tick box unchecked then a custom growth rate for NOPAT and Total Capital may be specified for the period Step 3 Specify growth rates for NOPAT and Total Capital as necessary NB the growth rate specified for Total Capital for the beyond period is used to adjust the capital for the first year of the beyond period The growth rate specified for NOPAT is used to calculate the NOPAT for the first year of the beyond period and the constant growth rate to perpetuity Step 4 Review the valuation Note the cost of capital WACC used in the valuation tool is sourced from the Cost of Capital tool For a Capitalisation of Future Maintainable Profits Valuation eis one Page 34 analysis one user manual Step 1 Use the period selector to select the base year at which to value the business Step 2 Select which periods of forecast financial data to include in the valuation For example if the b
56. n financial metrics must be defined amp created through the Non financials Loading Tool prior to importing Note Placing a sign in front of any import codes will change the sign positive negative for every import value in that row For example if 14 was placed in Column A an original value in Column E of 1000 would be interpreted as 1000 during the import process Mapped Import Instructions A mapped import requires the uploading of two files a a source import file which conforms to the import file specification and b a supporting mapping file which conforms to the mapping file specification The purpose of a mapping file is to improve the maintainability of data within analysis one Users can map or in other words establish a relationship between every account code in a Chart of Accounts and an applicable analysis one import code When this process is complete users may import future periods of source data without having to reclassify each account code in the source import file 1 Import File Specification for a Mapped Import 2 Column A Account Number from Source Accounting System Column B Account Description Column C Unused Column D Opening Balance Sheet Amounts No P amp L Data required ColumnE Period 1 P amp L and Balance Sheet Data Column F Period 2 subsequent period data P amp L amp Balance Sheet When importing with a supporting mapping file defa
57. nded that users specify a more secure amp private password to replace the initial account password supplied by the software vendor To change your password please complete the following form Change Password Please enter your existing password E Please enter your new password Password must contain at least eight characters Lo E Please confirm new password LDLo sant JE omen 2004 EIS One Pty Ltd all rights reserved support eis one com 61 7 3367 2623 eis one Page 2 analysis one user manual Model Management Model Selector Overview The basic functionality to create edit delete amp share analysis one models can be accessed from within the Model Selector screen Each analysis one model may include multi period financial amp non financial source data actual amp forecast data financial amp non financial scorecard data and all other data used to support the tools in the analysis one toolkit The model selector contains three model types 1 My Models a Models created or owned by the current user b Create a new model Allows users to create new models C Share this folder Allows users to share this folder with other users Discussed in detail in the folder section d Manage Folder Shares To modify an existing folder share Discussed in detail in Folder Section 2 Collaborative Models a Models owned by another user and shared on a read only o
58. ndicated by flags in the top right hand corner of the expense and Revenue lines Different colouring is used to notify the user whether detailed lines exist in that model An orange flag denotes that a detailed line exists If no detailed lines are specified during an import all items coded to Revenue import code 1 or Fixed COS import code 4 or Fixed Expenses import code 7 will be allocated to the default first line of General and the colour of the flag will indicate that no detailed lines exist Although the import function will input the financial data into the correct corresponding detailed lines the description for each line still needs to be manually set within each analysis one model This is only required to be completed in one period as the specified descriptions will automatically be applied across all periods within the model To manually add financial data to the detailed lines and or add an informative line description click on the flag and an additional pop up screen will appear To commit modifications to the detail lines data select Update and then save To discard modification to the detailed line data click Cancel Please refer to the analysis one Import Instructions Appendix A that can be accessed from the link at the top of the Import Financials page for specific instructions on the coding required to allocate items to a detailed line Profit amp Loss Balance Sheet Detailed Lines
59. nly the Balance Sheet is required to be completed for the Opening Balance period An alert notification will appear if the Balance Sheet does not balance If this occurs all tools within the toolkit will still be accessible however the calculated amounts will not be an accurate reflection of the business as the financial data is incomplete Manual Data Input Select the period to which the financial data relates through the Period Selector drop down menu On the left hand side of the page there are two tabs click on the respective tab to move between the Profit amp Loss and Balance Sheet To enter the data highlight the text field which needs to be changed and type in the figures It is possible to use the Tab key to enter into the next input field eis one Page 10 analysis one user manual Changes can be made to both the Profit amp Loss and the Balance Sheet within the same period without the need to save However prior to moving to another period the Save button must be pressed to prevent loss of data A warning will appear if data has been changed and the user has not saved those changes Detailed Lines This function enables the expense lines allocated to Fixed COS and Fixed Expenses as well as Revenue to be separately detailed in the Profit and Loss This capability enables the detailed analysis of these revenue and expense items in the trend analysis amp comparative tools Detailed lines are i
60. om an industry template will include no pre defined metrics Each KPI Scorecard may contain a maximum of 5 groups a maximum of 5 KPIs may be assigned to each group Group 1 to Group 5 each represent an arm of the KPI Scorecard Find below an example KPI Scorecard to assist your understanding Strategy Scorecard Targets Scorecard Scorecard Trend Customer Intimacy 1 1 Returned Items 1 2 NCR 1 5 SM s Catelog i ME 5 Value Daily Sales Group l AN E T Complaints Cancelled Management amp external 5 1 Store Visits 5 2360 Assessment erm 5 5 Sale Events x Coverting the Sale 2 2 Au Value per f unit Group 2 2 TA Conversion Value spend Staff Satisfaction r 3 2 Staff turnover 54 09 Promotiona s Activit e 4 5 SKU s Hin Engagemen 3 ts te Pa eU 4 1 s a Centre Presentati M traffic on Group 4 G9 Security 3 4 Staff SON gt 3 Training elec survey Hours Q 3 Entrants Store experience eis one Page 16 analysis one user manual Defining KPIs Setup KPIs A group is an area of strategy to which a number of non financial measures relate As can be seen there is scope for five groups within the KPI scorecard and each group can have a maximum of five related measures Loading Non financials Group 1 Group 2 Group 3 Group 4 Group 5 Import Export 5 Mon financial metrics have been defined fo
61. omparison appear in the Folder list view Clicking the sign adjacent to each folder allows the user to view individual models within that folder To include all models within a folder simply select the tickbox adjacent to the folder To include individual Model Selector gt Choose Models Choose Models Compare My Models Collaborative Models and Benchmark Models Perform comparative analysis using either a comparative charting or b statistical benchmark analysis Step 1 Select models to include in benchmark comparative pool Folder List Benchmark Comparative Pool Caltex ARC Energy Limited Australian Worldwide Exploration Limited Origin Energy Limited Hardman Resources Ltd Paladin Rasources LTD E E My Models a Training Models j H A Unassigned Ch Collaborative Models Eh Benchmark Models H ATO Broad Industry H ATO Industry Woolside Patroleum Group ao S01 Energy Caltex ARC Energy Limited Australian Worldwide Exploration Limited Origin Energy Limited Hardman Resources Ltd Paladin Rasources LTD Dan Ail Damnam I imkan ii Step 2 Select the type of analysis e Comparative Charting Visually compare up to 10 models using line curve bar and radar charts O Benchmark Analysis Calculate key performance statistics including mean standard deviation variance range min amp max Perform Exception Analysis identify models performing outside the
62. ore value has not been destroyed It is important to note that the WACC must be first defined within the model for this analysis to be meaningful eis one Page 33 analysis one user manual Business Valuation Select Business Valuation either by using the Quicklaunch menu under Value Creation analysis or select Business Valuation from the toolkit menu Tool Overview Assess the value of the business by calculating a Free Cash Flow Valuation FCF or a Future Maintainable Profits FMP Valuation FCF Valuation FMP Valuation Gap Analysis Select Source Financial Periods to include in the Yaluation Base Year 2006 Forecast Yr 1 Forecast Yr 2 Forecast Yr 3 Forecast Yr 4 Beyond Revenue 106 244 EBIT 49 631 Op Tax mE 16 410 ZEE MOPAT 33 220 35 545 35 034 40 696 43 545 46 595 gu ere EMEN d e Tan EMEN Tan er 7 Fh mu Future Maintainable Profits Valuation Cost of Capital 9 46 9 46 9 46 9 46 9 46 NPY of NOPAT 32 473 31 745 31 030 30 333 1 319 370 Cumulative MPW 32 173 64 217 95 248 125 581 1 444 952 Business Value at Base Year 1 444 952 Less Debt at Base Year 0 FMP Yaluation Equity Yalue at Base Year 1 444 952 Owner s Value per Share Aug Share Price 5 37 amp Ma of Shares 281751 5 13 The above valuations are based on a view of the future As views of the future differ these values will always be a matter af opinion and notfact The NOPAT Valuatio
63. r into the analysis one Toolkit To return to the model selector click on the Model Selector link breadcrumb trail located at the top left hand side of each screen within the toolkit The analysis one toolkit menu provides access to the analysis one tools Note the array of tools within the toolkit is fully customisable for each user Accordingly not all tools are accessible to all users In some circumstances limited access read only access is provided to some tools for certain users analysis one toolkit financial source data loading Financials Forecast Financials business analysis O financial scorecard financial ratio analysis breakeven analysis what if analysis marginal cash analysis sustainable growth analysis lead lag analysis qoalseek new toot credit risk analysis credit risk scorecard non financial source data links setup KPIs loading KPI results KPI scorecard trend analysis cash Flow analysis value creation analysis o risk assessment cost of Funding calculator profitability analysis business valuation credit risk ratio analysis The toolkit provides access to the following groups of tools loading financial source data loading non financial source data business analysis tools cash flow amp growth tools value creation tools credit risk analysis tools The toolkit screen also provides access to the following Timeline Setup Import Export Us
64. r read write basis with the current user Account Settings Support Logout Admin My Models Collaborative Benchmark Compare Models v UT m PFN ANYA IJ gt AAmMMalc CO RJO I T ITI IYW LIE Choose a folder A No models are currently shared with you Collaborative models are models created by another eis one user and shared on a read only basis modifications not permitted or read write basis modifications permitted Access to collaborative models is granted on a non concurrent basis eg one user is permitted to edit the model at a time 3 Benchmark Models a Benchmark Models are models provided from the analysis one benchmark database Benchmark data is sourced from public domain Eg Listed ASX company annual reports b Transfer Transfers a read write copy of a benchmark model to My Models Account Settings Support Logout Admin My Models Collaborative Benchmark Compare Models Benchmark Models Choose a folder S01 Energy vj Model Name Transfer to My Models Caltex Transfer ARC Energy Limited Transfer Australian Worldwide Exploration Limited Transfer Origin Energy Limited Transfer Hardman Resources Ltd Transfer Paladin Rasources LTD Transfer Roc Oil Company Limited Transfer Santos LTd Transfer Tap Oil Transfer Woolside Patroleum Group Transfer Worley Group Limited Transfer Benchmark models are models issued from the eis one benchmark databa a read only basis If
65. r this group Customer Intimacy El EDIT TITLE GROUP 1 DESCRIPTION UOM TARGET MEASURE TYPE Returned Items Units 120 B El EDIT uh DELETE EDITING METRIC 1 1 Short Description 20 chars Detailed Description 75 chars Returned Items Product returned due to dis satisfaction Measure Type C A Above Target Favorable B Below Target Favorable o Update Cancel From the toolkit menu select Setup KPls then select the tab which relates to the area of the scorecard that needs creating It is advisable to start with Group 1 The first step is to name the group Click on Edit Title type the appropriate name in the text box that appears to the right and then click on Update Title The next step is to create the non financial measures that belong to the group by clicking on Add New Metric This will bring to the foreground previously shaded information and text boxes Highlight the existing text which is to be replaced and then type in the relevant details There are a number of fields that must be defined for each metric 1 Short Description Limited to 20 characters this is the text that will appear as a description on the KPI scorecard 2 Detailed Description This field allows the user to provide more detailed information about the metric 3 Unit of Measure UOM For example days 96 times per qtr 4 Measure Type It is important that this field is completed correctly it will affect the logic used in the KPI
66. rgy Limited M5 Hardman Resources Ltd M amp Paladin Rasources LTD M7 Santos LTd M amp Tap Oil MS WWoolside Patroleum Group M10 Roc Oil Company Limited 45 95 41 15 19 33 6 91 82 56 6 69 32 49 8 97 10 95 76 51 15 32 175 61 16 43 71 13 43 Gross Profit Margin Profitability 0 00 0 00 15 49 33 49 30 66 6 87 100 00 24 92 0 55 2005 EIS One Pty Ltd all rights reserved eis one Page 42 analysis one user manual BAR CHART RADAR CHART M1 M2 M3 M4 MS M6 M7 Ms MS M10 del Sel r gt Ch M1 Caltex M2 ARC Energy Limited M3 Australian Worldwide Exploration Limited M4 Origin Energy Limited MS Hardman Resources Ltd M6 Paladin Rasources LTD M7 Santos LTd M amp Tap Oil MS Woolside Patroleum Group M10 Roc Oil Company Limited 61 16 100 00 4 87 41 15 82 15 32 0 00 30 56 43 71 24 92 11 45 19 33 B j 6 87 13 43 0 58 NC N M3 J JM M1 Caltex M2 ARC Energy Limited M3 Australian Worldwide Exploration Limited M4 Origin Energy Limited MS Hardman Resources Ltd M6 Paladin Rasources LTD M7 Santos LTd M8 Tap Oil MS YYoolside Patroleum Group M10 Roc Oil Company Limited Gross Profit Margin 76 51 Profitability 487 4115 8256 897 1532 oo0 30s6 6244 a371 24392 EcROCE
67. rs 5 10 B m H Interest Times Cover 11 57 times 1 5 3 A m H Secondary Exit Debt Equity 0 86 0 75 1 B o Debt Total Assets 30 696 50 75 B 0 Est Recoverable Value i 1 730 660 m m Debt Servicing Debt Facilities EBITDA 2 5 2 5 4 B 9 Debt Service Cover 0 61 times 1 1 1 65 o H amp Notional Debt Service yrs 6 66 yrs 7 g B x H e Available Cash Flow 3 1 080 214 A X n Credit Risk Score Score B B E ACCEPTABLE RISK Assumptions View Edit Detailed Assumptions View Edit ERY Assumptions ME Target Type A Above Target Favourable Target Type B Below Target Favourable MB Targets amp Weightings apply to all periods within this model Targets There are three sections in the credit risk scorecard Primary Exit Secondary Exit and Debt servicing Targets for the respective sections are referred to as thresholds within the Credit Risk Scorecard tool Users can set a low and high threshold Low and high thresholds depend on the Target Type above a Type A target is favourable and below a Type B target is favourable Weightings remain the same as other scorecards H denotes High importance and L denotes low importance while NA denotes a metric that is not applicable Risk Results High Risk x Acceptable 7H Li u Low Risk Q eis one Page 36 analysis one user manual Credit Risk Score A credit risk score based on the ra
68. ssessment tools Users are granted access to interactive tools together with industry benchmarks to produce reports and other decision making analytics which are critical for optimising performance and assessing an organisation s commercial health eis one SEM po wm o wwe CG AGA Gj 72lR 4 AA Sres smarter tools Access eis one simplifies the management amp measurement of business performance Analyse eis one an online tool for assessing commercial Act health and optimising business performance customer success MORE pkf employs the eis one value creation toolkit to PKF deliver value added consulting services to its client base Accessing analysis one Launch Microsoft Internet Explorer getting started CALL 1300882 035 E EMAIL Sales Support JI SEE Product Overview REQUEST An Evaluation 10 10 2005 Scorecard trends added to toolkit Visualise scorecard result trends via new functionality in the scorecard tools 08 09 2005 eis one Launches new website eis one has unveiled the redesign of its website Locate the following website address http www eis one com or http www analysis one com Select eis one Login at the top right hand corner to login Login At the login screen enter your username email address and private password into the input fields and then click Submit to enter into the application Welcome to the eis one application Regis
69. t It is important to realise that the colour shown is based on both the results achieved compared to target and the relative weighting given to each ratio within the set For a detailed explanation of the ratios please refer to Financial Ratios from the toolkit menu or alternatively select Financial Ratio Analysis from the quick launch menu If you wish to print the Scorecard click on Print Scorecard Report as shown above eis one Page 13 analysis one user manual To view Trends for multiple periods select Scorecard Trend Targets LEAD Strategy Scorecard LAG Financial Scorecard LEAD Strategy Scorecard LAG Financial Scorecard LEAD Strategy Scorecard LAG Financial Scorecard Financial Scorecard Scorecard Scorecard Trend Jul 04 Aug 04 Sep 04 Oct O4 Mow 04 i Mm Tim m Tim Yit H F 7 Bg Dec O 4 Jan 5 Feb 05 Mar n5 Apr 5 D a i H u ra a A u i May 5 Jun 05 jul 5 Aug 5 HH ln In If Non financial data exists in the model a corresponding non financial scorecard result is shown for every period Non financial and Financial scorecard results are referred to as Lead and Lag results respectively eis one Page 14 analysis one user manual Financial Ratios Select Financial Ratio Analysis using the Quicklaunch menu under Business Analysis or select Financial Analysis from the
70. tered users please login using your email and password eis one Login Password Requirements IE 6 0 Internet Explorer Macromedia Flash Player v6 Adobe Acrobat Reader Javascript enabled 9 2005 EIS One Pty Ltd all rights reserved eis one analysis one user manual Page 1 Account Management The account settings link located at the top of the model selector screen allows users to alter their existing password Passwords must contain at least eight characters Select submit to save the new password and overwrite the existing password Account Settings Support Logout Compare Models Choose a folder My Models Collaborative Benchmark My Models ISP Company Training Fin Planner Mthly Training Forecaast ABC Training Brisbane ABC IMPORT CSV CAPRAL ALUMINIUM LIMITED Origin Energy Limited 15 07 2005 12 10 2005 4 10 2005 3 11 2005 3 11 2005 17 11 2005 14 10 2005 15 07 2005 30 08 2005 4 10 2005 3 11 2005 3 11 2005 17 11 2005 10 01 2005 GOGG6G6G6 Create a new model Share this folder Manage folder shares My Models are models created amp owned by the current user or models created by another user and copied to this user All owned models can be shared with other registered eis one users 2005 EIS One Pty Ltd all rights reserved support eis one com 61 7 3367 2623 Password Administration For security reasons it is recomme
71. the Profit amp Loss and Balance Sheet 2101 x Name Provides the balance sheet for multiple periods in Account Transactions Accrual spreadsheet format Account History OficeLink General Ledger Summary General Ledger Detail Trial Balance Balance Sheet Standard Balance Sheet Muli Penod Spreadsheet d Multi Periad Budget Spreadsheet Last Year Analysis Budget Analysis Profit amp Loss Profit amp Loss Accrual View Sample itd Customise Display Step 2 Report Customisation select the desired period range Report Customisation Multi Period Spreadsheet This Year F 2005 0 Step 3 Send To Excel Repeat this process for the Balance Sheet or Profit amp Loss report B Importing into analysis one Step 1 Consolidate the Profit amp Loss and Balance Sheet Reports Copy and Paste both reports into a single soreadsheet worksheet Before conversion into analysis one import format Clearwater Pty Lid 2a apring area Blackburn VIC 3130 Profit amp Loss Statement 5 LATE January Fehruary March Income Sales Incame Sales Water Cooler 50 00 3 413 79 17 545 96 Serice Income 15 Semice Other Income 0 00 0 00 126 92 Total Income 0 00 3 413 78 17 872 78 Cost Of Bales Furchases Equipment 0 00 3 364 26 16 128 63 Total Cost Of Sales 50 00 3 364 26 16 128 63 Ze Gross Profit 50 00 549 52 1 544 15 Expenses General amp Admin Expenses
72. ther Sustainable Growth Rate 7 56 3 above target favorable o G Marginal Cash 25 45 23 above target favorable o G Earnings per Share 0 46 above target favorable QA Economic Profit 121 934 o above target favorable Ww H eis one Page 12 analysis one user manual To view a graphical representation of the scorecard click on the Scorecard tab Areas marked with a green tick are satisfactory performance indicators Areas marked with a red cross are performing poorly and therefore require management attention The overall net result for a category of ratios is indicated by the colour of the wheel segment Red indicates Financial Scorecard Targets Scorecard Scorecard Trend Gross Profit Margin Current Ratio Profitability 13 Favourable iquidi gt ae G9 y Results Liquidity O Quick Ratio s E 6 Unfavourable zt DC Results aida qu ta j T AR Days Debt to Equity Profitability 3 NZA Measures j Working amp AP Gearing Capital _ Days Interest Coverage Inventory Days Marginal Cash Asset Turnover gt s a Return on Equit Asset Working EP Other EPS F iai SESA Usage Cap Absorption Sus Growth EcROCE Efficiency Return on Activity Rate E Total Assets Return on Cap Employed that the results achieved are below target green indicates that results have been better than target and orange indicates an average resul
73. tio results and the defined threshold targets for each ratio is calculated Assumptions A user has the ability to alter the assumptions relevant to the credit score calculations There are two assumption sections the Detailed Assumptions section and ERV Assumptions section The detailed assumptions tab allows a user to change the relevant payback period which is setto a default of 7 years the capex capital expenditure movement in non current assets as well as adjustments to net cash flow by entering the alterations in the spaces provided When all alterations are complete select update Detailed Assumptions Principle Payback Period yrs 7 Capex Movement Capex in NOCAS Adjustment Met Capex Capex 40 0 F l Operating CF Cash Flow including CF Adjustment Adjustment i Cash Flow 11 829 Adjustments y ty rrent perioi Update Cancel The ERV assumptions module allows users to alter the Estimated Recoverable amounts ERV of assets Users can enter the recoverable percentage of assets and percentage for preferential payments to determine the ERV after debt repayments Select update to save changes Estimated Recoverable value Assumptions Est Balance Sheet Recoverable ERY Assets Value a Accounts Receivable 331 325 au 265 060 Inventory 260 022 60 156 013 other Current Assets 0 0 0 Fixed Assets 370 000 So 185 000 Other Non Current Assets 10 000 Investments 0 40 0 Total Estimated Recovera
74. ult account numbers from the source accounting system remain in Column A 2 Specification for a Mapping File Column A Account Number from Source Accounting System Column B analysis one Account Number see analysis one Import Codes Column C Column C D E may contain supporting information if required A mapping file is created by listing every account in a Chart of Accounts column A and mapping each account number to a valid analysis one import code column B Consider the following example The account 4 1100 Sales of Other Equip appears in column A of the source import file In the mapping file the account 4 1100 is mapped to analysis one import code 1 Revenue When a mapped import is executed every instance of 4 1100 in the source import file will be allocated to Revenue 1 Examples of exporting importing from accounting systems MYOB Export from MYOB gt Import into analysis one A Exporting from MYOB Step 1 Export Profit amp Loss amp Balance Sheet Reports from MYOB From the MYOB Command Centre menu select Index to Reports Clearwater Pty Ltd Command Centre n x ACCOUNTS X X Card Fie MoneyController 3 Company Data Auditor 3 Transfer Money 3 M Powered Q eene nennen Transaction Journal services Centre To Do List w Find Transactions w Reports w Analysis w Select the Multi Period Spreadsheet for
75. uplicate a model click the Duplicate icon located next to the particular model that is to be copied Highlight the default text Insert name here and specify a new model name Click on Update to proceed The duplicate function copies all source financial amp non financial data and inherits all data used to support the tools within the toolkit eg model defaults beta factor cost of capital and scorecard targets etc from the parent model Sharing a Model Sharing models enables analysis one users to work collaboratively within the application Sharing a model grants other users access to the model For data integrity reasons access to each model is provided on a non concurrent basis eg only one user may edit a model at a time To share a model click on the Share icon which is located to the right of each model under the My Models section The Share model screen lists all existing model shares if any and the type of share associated with each model share eg read only access or read amp write access eis one analysis one user manual Page 5 To create a new share arrangement enter in the email address username of the analysis one user whom you wish to share the model with select the type of share and click share Share Types When sharing models three options are available Share with Read Only Access The model will appear in the recipient s Collaborative Models section
76. verview Combine an unlimited number of periods at any given interval For example combining monthly periods at 3 period intervals will create a model with quarterly periods ready for analysis Alternatively combine monthly periods without intervals to create an annual or year to date YTD period ready for analysis Start at this period Jul 00 End at this period Jun 02 M Choose intervals Combine every 12 periads Mame of new model Combine Periods YTD Combine into new model Existing timeline Period Period Name Length Days Opening Period 365 Jul 00 3l Aug 0 ul Sep O0 30 Oct 00 E The combine periods utility automatically creates a new model and the original model remains unchanged Periods outside the specified combine range are not included in the new model The combine function combines all associated financial amp non financial data This function seeks to aggregate all data within the selected period range The scorecard targets will also be adjusted to reflect the appropriate target for the new combined period range For example if a specific KPI within a monthly model had a target of 10 units and monthly periods were combined into a yearly model the new target for the selected metric would be 120 units However if the unit of measure uom is a 96 value then the target remains unchanged Accordingly for results where if the unit of measure uom is specified as a 96 then the combine function will
77. where the beta factor for the business under analysis has been determined As discussed above the default setting within the software for Business Risk Assessment is Option A Please click on the tickbox to the left of Option B to activate this option Then enter the leveraged beta into the input field Before exiting the screen press Save If you wish the leveraged beta factor to be applied across all periods in the model please tick Copy to All Periods prior to pressing Save Please be aware that the beta calculated in Option A is an unleveraged beta factor compared to a leveraged beta factor in Option B This difference is accounted for in the calculation of the weighted average cost of capital WACC which is set in the Cost of Capital tool eis one analysis one user manual Page 31 Cost of Capital WACC Select Cost of Capital either by using the Quicklaunch menu under Value Creation Analysis or by select Cost of Capital from the toolkit menu Tool Overview The Cost of Capital tool assists with the calculation of a business s Weighted Average Cost of Capital WACC The calculator uses the Capital Asset Pricing Model CAPM to estimate the cost of equity capital By default the Asset Beta and Leveraged Beta data is sourced from the Risk Assessment tool C OS of FU a ci N C wv Copy To All Periods May w Save Ww ACC c Cost of Debt ikd kd kind 1 t Marginal interest r

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