2. How to Demo AO
In 30 minutes

4. 4

5. A few simple rules Add value Suppliers Customers Purchase Sell
“Harvest”

6. End of year 1 Close the books at the end of the year 4x2 2x3 + 2x4 5x412 12
6x4 20 20 5 18 14 20 4 6 2

7. 4x2 12 20 14
6x4
2x3 + 2x4
5x4 6 5 18 4 2

8. Financial Statements Year 124 36 27 9 4 5 18 6 3 1 2 60 61 37 39
100 14 20 8 76 12

9. Business Review Year 1
How well have the assets been used? Industry benchmark: 15 %
How much has the owners value grown? Expectations: %
_____
Return On Equity
Total equity M %
Net profit
Operating profit
Return On Assets
Total assets 9
100 2 5 39
What can be done to improve profitability?

10. Year 1 revised
Working capital - The capital required to run the day-to-day operations.
WORKING CAPITAL
Accounts
receivable
Inventory
payable
+ Inventory 42
+ Accounts receivable 20
– Accounts payable
= Working capital 62
How do you release some of this to cash and what do you do with it?

11. The Good News Reduce inventory Borrow less Better credit control
Loans: – 40M
Interest: – 4M
Simplify
How much cash do you have now and what can you do with it?

12. Financial Statements Year 1 after changes24 36 15 6 4 25 11 2 9 3 8 10 12 42 66 20 23 43 60

13. 13

14. Thank You