Business Planning and Corporate Finance Introduction

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Business Planning and Corporate Finance -
Introduction

• Who I am
• Can you answer some questions ?
• Goal of the course
• Five lessons and a Business Plan
• How will we work
• What I expect from the students
• Links with other courses
• Examination

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Who I am

• Michel Allé
• born in 1950
• civil engineer and economist
• My present job
• Chief Financial Officer of Brussels Airport
• My past experience
• Investment Banking
• Teaching activities
• Statistics and Finance at Solvay Business School
• Chairman of the School (1997-2001)

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Can you answer some questions ?

• What is the role of a Financial Director in a
  company ?
• How can you see that a company is in a good
  financial shape ?
• How can you improve the Return-on-equity for you
  shareholders ?
• What are the conditions to meet to get a new bank
  credit ?
• Why became Enron financially bankrupt ?
• Is it financially interesting to make some
  capital expenditures ?
• How much is the value of Vietnam Airlines ?

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Goals of the course

• To be able to participate
• to the business planning of a company
• To be able to analyze
• the financial situation of a company
• and to compare it with the competitors
• To be able to understand
• the financial decisions of a company
• To be able to estimate
• the value of a company

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Five lessons ...

• Business Plan The Basic Principles (Monday)
• Building the Business Plan The Techniques
  (Tuesday)
• Profitability Measure and Improvement
  (Wednesday)
• Investment Decisions and Present Value (Thursday)
• Valuation (Friday)

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and a Business Plan

• To apply the theory
• To improve team-working
• To experiment competition
• and to have some good time
• Final work for January 18, 2004
• Excel model and Powerpoint Presentation
• First Presentation Saturday
• Basic Excel Model and Powerpoint Presentation

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How will we work

• Lessons
• theory and examples
• Written material
• slides in English
• Book  The Definitive Business Plan  by
  Richard Stutely (Prentice Hall FT)
• A Red Line
• The Excel Model for the Business Plan

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What I expect from the students

• Please ask questions
• do not hesitate to interrupt me
• do not hesitate to let repeat if you dont
  understand
• Be involved
• go to Web sites to seek information
• banks, stock exchange, etc.
• Be fair and honest
• Values of Solvay Business School

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Links with other courses

• Strategy (Wanet)
• Goals (mission and vision) of the enterprise
• Accounting and Control (Loozen)
• balance sheet, profit loss, cash-flow
• Finance (Farber)
• risk, net present value, valuation
• Banking (De Keuleneer)
• role of the debt for financing a company

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Examination

• Final note
• Business Plan (25) group note
• Written examination (75)
• Written examination
• theory and examples
• emphasis on the true understanding of the
  concepts
• no use of any written material (book, slides,
  etc.)
• use of simple calculator