Wind farm Investment 3 Statement Financial Projection Model

Description
PURPOSE OF TOOL

Highly versatile and user-friendly Excel model for the preparation of a 3-statement (Income Statement, Balance Sheet and Cash flow Statement) financial projection with a yearly timeline for a new or existing windfarm investment generating revenue through the production of electricity.

The model allows the user to model up to 5 windfarm projects with separate timeline, revenue and cost assumptions. It allows the user to model the full lifecycle of the windfarm projects including the planning and construction phase with possibility to expense or capitalise costs.

The model follows good practice financial modelling principles and includes instructions, line item explanations, checks and input validations. It includes a 50-year rolling timeline (mix of actual and forecast years), discounted cash flow valuation using the projected cash flows and a dashboard with output tables and charts.


KEY OUTPUTS

The key outputs include:
- Projected full financial statements (Income Statement, Balance Sheet and Cash flow Statement) presented on a yearly basis up to 50 years.
- Dashboard with:
o Summarised projected Income Statement and Balance Sheet;
o Compounded Annual Growth Rate (CAGR) for each summarised income statement and balance sheet line item;
o List of key ratios including average revenue growth, average profit margins, average return on assets and equity and average Debt to Equity ratio;
o Bar charts summarising income statement and balance sheet projections;
o Tables and charts showing revenue and cost splits by windfarm project
- Discounted cash flow valuation using the projected cash flow output.- IRR per windfarm project


KEY INPUTS

Inputs are split into income statement and balance sheet Inputs. Most inputs include user-friendly line item explanations and input validations to help users understand what the input is for and populate correctly.

Setup Inputs:
- Name of business;
- Currency;
- First projection year;
- Naming for windfarm projects, tariff rates, construction costs, operating costs, administrative costs, and borrowing facilities;
- Sales tax applicability for the revenue and cost categories.

Projection Inputs:
- Windfarm project timeline including construction and operating periods;
- Cost and revenue inflation assumptions;
- Power generation assumptions per project including number of turbines, capacity per turbine, power availability days, efficiency factors, degradation percentage and other energy loss percentages per annum;
- Revenue assumptions including real tariff rate, tariff rate mix, and average credit terms offered;
- Construction cost inputs including construction cost per turbine, whether expensed or capitalised and if capitalised their useful life;
- Operating cost inputs including amount per turbine and average credit terms received
- Administrative costs inputs;
- Sales and corporate tax inputs including rate and payment periods;
- Dividend inputs including amount (percentage of retained earnings) and frequency;
- Borrowings including addition/repayments amounts, interest rates and maturity dates;
- Share capital additions;
- Discount rate inputs (for valuation calculation).


MODEL STRUCTURE

The model comprises of 9 tabs split into input ('i_'), calculation ('c_'), output ('o_’) and system tabs. The tabs to be populated by the user are the input tabs ('i_Setup' and 'i_Assumptions'). The calculation tab uses the user-defined inputs to calculate and produce the projection outputs which are presented in 'o_Fin Stats', ‘o_Dashboard’ and ‘o_DCF’.

System tabs include:
- A 'Front Sheet' containing a disclaimer, instructions and contents;
- A checks dashboard containing a summary of checks by tab.


KEY FEATURES

Other key features of this model include the following:
- The model follows good practice financial modelling guidelines and includes instructions, line item explanations, checks and input validations;
- The model contains a flexible 50-year timeline with mix of actual and forecast periods which be easily rolled forward from one projection period to the next;
- The model allows the user to model up to 5 windfarm projects with separate timeline, revenue and cost assumptions;
- The model is not password protected and can be modified as required following download;
- The model is reviewed using specialised model audit software to help reduce risk of formula inconsistencies;
- The model allows for the following number of underlying categories for each line item (these can be easily expanded if required):
o Windfarm projects – 5 projects;
o Tariff rates – 3 rate types;
o Construction costs – 10 categories;
o Operating costs – 8 categories;
o Administrative costs – 15 categories;
o Borrowings – 3 facilities
- Apart from projecting revenue and costs the tool includes the possibility to model receivables and payables, fixed assets, borrowings, dividends and corporate tax;
- Business name, currency, starting projection period are fully customisable;
- Revenue, cost, fixed asset and borrowing descriptions are fully customisable;
- The model included an integrated discounted cash flow valuation using the projected cash flow outputs;
- The model includes instructions, line item explanations, checks and input validations to help ensure input fields are populated accurately;
- The model includes a checks dashboard which summarises all the checks included in the various tabs making it easier to identify any errors.


MODIFICATIONS

If you require any be-spoke modifications to the tool, we are more than happy to assist with this. Please send us a message through the Eloquens site or contact us on: [email protected]


ABOUT PROJECTIFY

We are a small team of financial modelling professionals with experience working in big 4 business modelling teams and strong experience supporting businesses with their financial planning and decision support needs. Our aim is to provide robust and easy-to-use tools that follow good practice financial modelling guidelines and assist individuals and businesses with common financial planning and analysis processes.

We are keen to make sure our customers are satisfied with the tools / models they purchase and will be more than happy to assist with any questions or support required following or in advance of purchase.

We are also always keen to receive feedback so please do let us know what you think of our models by sending us a message or submitting a review.