9th GPF EW on Financing Port and Terminal Proj, 13-15 Oct 26, Singapore

9th GPF Executive Workshop on Feasibility, Valuation and Financing Port and Terminal Projects, 13-15 Oct 26, Singapore 9th GPF Executive Workshop on Feasibility, Valuation and Financing Port and Terminal Projects, 13-15 Oct 26, Singapore. Improved and upgraded content. Small Group. Intensive. Global Ports Forum presents – 9th GPF Executive Workshop on Feasibility, Valuation and Financing Port and Terminal Projects, 13-15 Oct 26, Singapore. Improved and upgraded . Intensive. Dear industry colleagues Objectives of the Course Intense, participative learning about all aspects of Ports related corporate finance in six modules with defined learning objectives, subject content, simulation among participants and deliverables by participants over a 3 days’ period. The end of the course each participant will go away with a clear view of (1) How to conduct feasibility of port / terminal projects in green/brown field (2) Assess valuation of the project from the promoters, investors and operators perspective (3) Evaluation and selection of Financing methods and options by understanding how each component of Ports Corporate Finance works and how it links with every other part of the business (4) How to achieve Financial Closure and select optimum combination of financing options. Current trends in the global supply chains clearly suggest a paradigm shift in pattern of customers’ value proposition. In line with value migration investments in the global supply chains and logistics sector and in particular in ports and terminals – whether though greenfield activity or M&A (brown field projects) - have been steadily moving towards creating a better and more integrated infrastructure, both to facilitate supply chain integration and to lower transport costs, thus contributing to regional, national and global economic growth. Live case studies of DP World, CMA-CGM, Maersk – AP Moller, PSA and a number of other leading port and terminal operators demonstrate these trends. These case studies will be used during the three days deliberations encouraging participants to utilize applicable concepts in their own working environment. The course makes use of case studies, which will follow the logical steps in the project identification to actual execution and implementation process: from feasibility to PPP Implementation and bank-ability. Course Format Pre Course Reading Materials Select Ports’ business – last annual report, investor presentation & call transcript; every participant will be sent a reading pack to be read. During the course Overview of corporate finance concepts linked to ports Corporate Finance extensive use of tools. While this is not a modelling course, we will use excel to the extent possible, participants with limited exposure to excel will be helped by the trainers during the course. After course Trainers available for follow up emails, questions on phone. Distribution of discussion materials. Form a participant only online group. Course Introduction Introduction to financial statements, financial analysis, corporate finance and how the 3 link up. Introduction to the port business – economic rationale, technical, market, operations – Participants to participate with elaboration of their roles Port Business Corporate Finance Overview of recent Ports transaction global activity Participants to participate with comments on the assets they are familiar with Program Details (Daily 9.00am to 5.00pm) Day 1 • Introduction to World Maritime Trade and development of international ports. • Understanding Role of Ports as vital gateways for national trade and economic development. • Changing role of Ports as most essential link in the international logistics and supply chain. • Types of Ports and classification of ports and terminals based on nature of business and customers to be served – passengers and different types / categories of cargo. • General or multi-purpose ports v/s specialized ports – Advantages and disadvantages. • Classification of Ports and terminals based on ownership / operation structure. Day 2 • Financial Analysis – using PSA/ APM Terminals/ DP World as Case Studies • Accounting overview • The Three Core Financial Statements and what they tell you – Income Statement, Balance Sheet and Cash Flow Statements. • Financial statement integration • Core accounting principles • Ratios for financial analysis and performance measurement • Cash Flow Statement Overview • Analysing a cash flow statement • Working capital management • Cash conversion Port Sector Analysis • Sales growth, operating profit margin and working capital requirements • Capital expenditure and asset requirements • Competitive forces and critical success factors to sustain a competitive advantage • Tools to analyze Comparative advantage vis a vis competing ports in the vicinity Management and Shareholders • Review the strengths and weaknesses of management and the influence of company ownership: • Management performance • Corporate aims and goals and their effect on the company’s future • Shareholder structure, support and influence. Business strategy • A company’s markets, products, services and competitive position • Corporate actions underpinning its growth strategy. Earnings dynamics • Quality and stability of revenue and cash flow from core operations • Cost base analysis, profitability and cash flow measures • Peer and ratio analysis to evaluate performance • Different accounting conventions and misleading accounting practices Asset management • Asset conversion cycle, asset efficiency and investment needs • General and industry specific ratio and cash flow tools to analyse and compare asset efficiency Cash flow drivers • Forecast operating performance and asset investment requirements. • Financial Risk • Evaluate the appropriateness of a company’s funding structure given all factors identified Liquidity • Financial flexibility: measuring liquidity or payment readiness • Funding instruments used by companies that can increase the refinancing risk and overall financial risk Solvency • Funding structure including off balance sheet obligations • Debt servicing ability using cash flow analysis • Rating medians to evaluate a company’s financial standing • Future cash available for debt service using a simple debt capacity cash-flow model • Refinancing risk: debt capacity vs. borrowing capacity • Structure • Review the appropriateness of existing or new debt instruments • Debt profiles in view of repayment sources Day 3 Port Valuation and Financial Modelling • Port / terminal Market potential and traffic projections for the like of concession • Hinterland Mapping and competition analysis • Dynamic value addition and Unique Selling Proposition • Pricing strategy and business volume sensitivity • Master / spatial planning and determination of infrastructure / superstructure required • Capital Expenditure (CAPEX) required in a phase wise manner • Business volumes, revenue and operating expenses calculations • Preparation of periodic cash flow and balance sheet • Financing options – debt and equity • Ratio analysis and debt serviceability • Determination of IRR – for the project and equity • Arriving at project valuation and achieving financial closure • Building in sensitivity (fluctuation in revenue or costs) in the Financial Model. About the Course Director (subject to final confirmation) Thomas Ng Thomas Ng has over 31 years of consulting experience in the ports and shipping industry. Thomas is known for developing innovative solutions for players within the ports & shipping industry, — in areas of investments advisory, port strategy, development, marketing, planning & redesign, customer services and port operations; and delivering superior results. He is the Executive Chairman of The Global Ports Forum (GPF) since 2008.