Senior Executive Finance

S E R I E S

S U M M E R

I I R

New and improved course format!

Senior Executive Finance

Value Creation Through Expert Financial Management 9 – 13 August 2009 • JW Marriott Hotel, Dubai, UAE Part I Executive Finance And Valuation 9 – 11 August 2009

Part II Advanced Risk And Investment Strategy

• D  evelop strategic decision models for improved financial management • Implement the concepts of shareholder value, investment analysis, company valuation, capital raising and project performance • Experience how financial concepts affect capital markets and corporate finance transactions • Improve your techniques in corporate finance analysis and identify key value drivers

12 – 13 August 2009

• Learn how to raise capital in the equity and debt markets • Understand how to successfully structure M&A, MBO and Public-Private Partnership (PPP) deals • Understand the complete range of risks facing corporate organisations • Explore risk management techniques which can be used to minimise and manage risks

By Attending The Course, You Will: • O  btain an appreciation of the concept of shareholder value and its contemporary application to corporate performance • Understand the different methods of project appraisal in contemporary use and how they have evolved over recent years • Analyse cutting edge techniques for estimating the cost of capital and capital budgeting • Develop a sound knowledge of modern methods of valuing companies, how to select appropriate techniques in different situations and the primary value drivers • Understand the methods and best practice in raising debt and equity for a range of firms • Study in detail the structure and finance of mergers and acquisitions

Who Should Attend? • • • • •

CEOs, COOs, CFOs Finance Directors and Managers Financial Controllers and Analysts Vice Presidents and Senior Vice Presidents Accounting Managers

Official Regional Recruitment Partner

• • • •

Chief Accountants Area and Regional Managers Heads of Corporate Planning Heads of Business Development

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www.iirme.com/sef

Senior Executive Finance

9 – 13 August 2009 • JW Marriott Hotel, Dubai, UAE

Dear Finance Professional,

Meet Your Eminent Course Leader

By the end of our Senior Executive Finance course, you will have developed a strong ability to design management control systems that forecast future financial performance, provide tools for business valuation, seize new opportunities, minimise risk and drive strategic change.

Nabil W. Zaki has been in the investment and banking industry for more than 30 years. During that period, he assumed senior positions in both Corporate Finance and Treasury with major Wall Street firms and international financial institutions in New York, Canada and the Middle East. He has held high profile management positions with Chase Manhattan Bank, Merrill Lynch, Prudential Securities and Tradition.

Looming above the heads of CFOs and COOs in the Middle East are countless opportunities to be taken advantage of and mistakes to be made. We have developed this course, lauded as one of the most influential courses of its kind in the region, to ensure that you are able to seize the opportunities and dodge the mistakes. You will explore the top issues you face every day in a dynamic, fluid course structure which includes case studies and exercises that will help you fully absorb the material being covered. This will enable you to carry this knowledge with confidence so that you may leverage your organisation’s financial position to maximise your corporate achievements. In other words, this course is well worth your time. Moreover, by attending, you will update your understanding of current trends in financial decision making while maintaining an up-to-date knowledge of the latest investment appraisal, risk management and control techniques. This year, we introduce a new two-part format due to popular demand. First, you’ll explore Executive Finance And Valuation followed by Advanced Risk And Investment Strategy. You can register for either segment of this course on its own or register for both to gain a complete Senior Executive Finance skill set! Finally, you will discover that your expert course leader, Nabil Zaki, has an internationally recognised base of expertise combined with regional experience that will keep you at the very top of your game. Open the door to a new realm of opportunities by registering today for IIR’s Senior Executive Finance. Nabil and I look forward to seeing you there. Best Regards,

Currently, Nabil Zaki is an adjunct Professor of Corporate Finance and Derivatives at New York University. He taught at New York Institute of Finance (currently known as FT Knowledge) from 1995 until 2004. He lectures extensively on portfolio management, risk management, derivatives, and international capital markets for major Wall Street firms and financial institutions. Also, Nabil W. Zaki is consulting a number of banks and financial institutions in the U.S.A, Asia, and Japan in the areas of asset/liability management, credit derivatives and restructuring as well as risk management. Currently, he is the Group Adviser for the Board of Directors of a major Asian bank; EON Bank and an Independent Board Professional Director at the Board of Directors of Signature Asset Management Company Limited - a Cayman Island incorporated company. Nabil taught previously at the American University in Cairo, George Brown College, and University of Toronto. He is a regular commentator on CNN, CNBC and Al-Jazeera. He holds a Masters degree in Economics and Finance from Syracuse University, New York (1981).

Would You Like To Run This Course Exclusively Within Your Organisation?

IIR’s Customised Training Solutions is the in-house training division of IIR Middle East.

FLEXIBILITY Have the flexibility to modify the course content, length of training and where and when it will take place CUSTOMISED PROGRAMMES Programmes tailored to meet your departmental objectives that reflect your organisation’s vision SAVINGS Reduced expenditure – no staff hotel or travel costs and a saving on valuable employee time

Keith Parker Conference Manager P.S. Participate in many practical exercises and case study analyses

EXPERIENCE Benefit from expert opinion and advice from our professional team regarded as the industry leaders within the Middle East

P.P.S. Take advantage of our Early Bird Discounts! See back page for details – Remember to bring your calculators!

ACHIEVEMENT IIR certificates awarded to attendees. Access to exclusive certified courses in the region

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Tel: 971-4-3352437

Fax: 971-4-3352438

Our Customised Training Solutions team are veterans of in-house training with a portfolio of specialists unrivalled anywhere in the Middle East! To design your training projects with significant business impact, please contact Leigh Kendall on: +971-4-335 2439 or email our team at [email protected]

www.iirme.com/cts Methodology The course will consist of a combination of classroom training, case studies and group exercises. You will be expected to bring a calculator.

Email: [email protected]

Web: www.iirme.com/sef

Senior Executive Finance

9 – 13 August 2009 • JW Marriott Hotel, Dubai, UAE

Part I: Executive Finance And Valuation

9 – 11 August 2009

Course Timings: Registration and morning coffee will start at 8:00 on Day One. Each day will commence at 8:30 and conclude at 14:30 with lunch. There will be two refreshment breaks at appropriate intervals.

Day One – Sunday, 9 August 2009 Corporate Finance Maximising Shareholder Value: Risk And Return Revisited • Objectives of corporate finance • What is value? Why value shares? • The implications of maximising shareholder value • Business operations, strategic transactions and other risks faced by organisations • Identifying strategies which create shareholder value: Return on capital vs. cost of capital • Principal agent problem – getting management to act in the best interest of shareholders Risk And Uncertainty • Risk vs. uncertainty vs. exposure vs. return • What risk cannot be eliminated? • Comparing arithmetic vs. geometric risk premiums • A brief history of risk assessment • Upside vs. downside risk • Risk psychology – which is it? Loss aversion vs. risk aversion

 Case Study: Dimensions of risk – what are they and how do they affect your bottom line?

Project Appraisal • The capital investment process • Accounting, earnings and market rates of return • Measuring profitability and returns • Present value, profitability indices, Discounted Cash Flows (DCFs) and timing of cashflows • Net Present Value (NPV) and value-creating investment decisions • Internal Rate of Return (IRR) and Modified IRR (MIRR)

• Adjusted Present Value (APV) method – assessing the impact of risk on cashflow analysis • Modified NPV – the real (or managerial or strategic) options approach to project appraisal • Mutually exclusive projects vs. independent projects • Capital budgeting/rationing using linear programming and Monte Carlo simulation

 Exercise: Project appraisal – comparing cashflow analysis rules and real options in investment analysis. You will use an Excel model to choose from three projects based on their payback, discounted payback, IRR, NPV, APV, and MPV. Cost Of Capital And Capital Structure • Components of capital: Short and long term debt, preference shares, ordinary shares, hybrids • Calculating beta for variations in business risk and variations in leverage • Capital Asset Pricing Model (CAPM), Arbitrage Pricing Theory (APT) and multifactor models • Cost of debt: Coupon vs. yield, market value vs. book value, tax problems and default risk • Cost of equity: Dividend models, CAPM and its competitors – APT, APV and so on • Weighted Average Cost of Capital (WACC) • Modigliani – Miller (M&M) propositions I and II and subsequent developments • Factors affecting the capital structure decision • The effect of capital structure on cost of capital

 Exercise: The capital structure conundrum – how much leverage is too much?

 Exercise: Valuing companies based on cash-flow based techniques (spreadsheets will be provided)

Day Two – Monday, 10 August 2009 Company Valuation Business Valuation Approaches And Methods – Discounted Cash Flow • Value from revenue generating assets and future growth opportunities • Shareholder value and discounted cash flow analysis • Compounding and discount rates • Comparing enterprise value and equity value

 Exercise: Variations of IRR in Excel – MIRR and XIRR (All Excel spreadsheets used in the programme will be given to you at the end of the course) Economic Value Added (EVA™) • EVA™ – when is value added? • EVA™ and its relation to DCF model • Calculation of NOPAT and capital • Typical adjustments for EVA™ calculation • MVA as a discounted EVA™ concept

Financial Ratio Analysis • Price/earnings multiples • Earnings related multiples: EV to EBIT, EBITDA, cash flow, etc. • Other multiples: sales, book value, PEG ratio, EEG • Relative multiples • Comparable deal analysis • Traditional measures of liquidity • Non-financial ratio analysis

  Case Study:

Exercise: Limitations of ratio analysis Dupont Valuation Model – the drivers of return on equity

Dividend Valuation • Dividend Discount Model (DDM) • Applications and examples in practice



Exercise: Spreadsheet modelling of the DDM

“The course content itself and the techniques used to explain concepts by the course leader was excellent” Nair Vijaykumer, Manager Financial Accounting, Oman Oil Marketing Co., Oman

Tel: 971-4-3352437

Fax: 971-4-3352438

Email: [email protected]

Web: www.iirme.com/sef

Senior Executive Finance

9 – 13 August 2009 • JW Marriott Hotel, Dubai, UAE

Day Three – Tuesday, 11 August 2009 Financing Strategies – Raising Debt And Equity Debt Finance • Nature and obligations of bank debt • Reasons for financing through debt • Funding hierarchies • Bank lending criteria and credit assessment

 Exercise: Calculating available bank debt for a range of enterprises Fixed Income Markets, Factors And Risks • Money market and bond instruments • Government, municipal and corporate bonds • Repurchase agreements (REPOs) • Credit and credit ratings • Sources of returns from bonds • Bond and other fixed interest instrument pricing methods • Spot rates and zero-coupon bonds • Term structure of interest rates and yield spreads • Clean and dirty bond pricing • Fixed income risk and return measures – yield, duration, Present Value of a Basis Point (PV01) and convexity • Mark-to-market vs. accrual assessment of bond trading positions • Interest rate risks and sensitivities

 Exercise: Pricing zero coupon and coupon-paying bonds in Excel for floating and fixed-rate scenarios

Fixed Income Investment Management • Characteristics of fixed income investment • Advantages and disadvantages of fixed income investment • Risks associated with fixed income markets • Duration, PV01, convexity and other fixed income risk factors

 Exercise: Calculating key ratios and pricing for bonds • Government bond markets • Syndicating and pricing new issues • Stability of bond ratings and bond ratings migration matrices

 Case Study: The bond floatation process Foreign Exchange (FOREX) • Foreign exchange rates – markets, conventions and regimes • Implications of FOREX trading around the world and around the clock • Inflation and currency stability using indexing • FOREX parity relationships in international markets • The art and science of country risk analysis • FOREX risks – translation and transaction exposures

 Exercise: Do foreign exchange policies matter? The implications,

benefits and consequences of foreign exchange rate policies and regimes

 Case Study: Managing systemic risk and the anatomy of some recent international financial crises

 Exercise: Applying country risk analysis in the Middle East Initial Public Offerings (IPOs) • Primary equity markets - Middle Eastern markets - Comparison with US and European markets • Rationale for an IPO • Domestic vs. international issues • ADRs, GDRs and EDRs • Underwriting vs. best efforts • Fixed price offers, tender offers and book building • The IPO process • Preparing for an IPO

 Case Study: IPOs, going public and recent global trends in IPO listings Alternative Procedures For Rasing Public Equity Capital • Rights issues • Seasoned equity offerings • Private placements

 Case Study: Recent developments in private equity Course Conclusions – Pros and cons of financing and valuation techniques

Four: 5 August 2009 Part II: Advanced Risk And Day Investment Strategy

12 – 13 August 2009

Course Timings: Registration and morning coffee will start at 8:00 on Day One. Each day will commence at 8:30 and conclude at 14:30 with lunch. There will be two refreshment breaks at appropriate intervals.

Day One – Wednesday, 12 August 2009 Investments And Portfolio Analysis Portfolio/Fund Management An Introduction To Asset Management • Major players in the market • Portfolio/fund management process • Examining different investment strategies – value, growth, technical, contrarian • Active vs. passive investment strategies



 Exercise: Trading anomalies and inefficient markets

Investment Performance Monitoring And Analysis Investment Performance Evaluation • Monitoring investment performance • Measuring investment returns • Risk-adjusted performance measures • Performance measurement of portfolios containing derivatives

Tel: 971-4-3352437

Fax: 971-4-3352438

 Case Study: Best practice in fund management performance Advanced Financial Techniques Structuring Securitisation And Asset Backed Securities (ABS) • Structuring and securitisation concepts • Motivation for securitising assets/cash flows • Types of ABSs • Commodity, currency, debt and equity structured products • Securitisation in developing markets



Exercise: Using MBS to meet investment objectives

 Case Study: Development in securitisation in the Middle East

Email: [email protected]

Web: www.iirme.com/sef

Senior Executive Finance Analysing Corporate Mergers And Acquisitions • Categories of corporate mergers • Analysing rationales for potential mergers • Roles of investment bankers, lawyers, underwriters and brokers • Selecting a target – synergies • Leverage buyouts • M&A due diligence

9 – 13 August 2009 • JW Marriott Hotel, Dubai, UAE Private Equity In The 21st Century • Nature of private equity in the Middle East • Comparison with USA, Europe and Asia • Which and what deals would attract private equity • Private equity returns – empirical analysis • Corporate takeovers and restructurings from a venture capitalist’s viewpoint

 Case Study: Analysing potential acquisition targets in the Middle East

 Exercise: Evaluating investments and exits

Day Two – Thursday, 13 August 2009 Risk Management: Derivatives And Value Maximisation An Introduction To Risk Management • Risk management framework • Different types of risk management procedures • Financial market’s regulation and the Basel accords • Corporate governance, institutions of information, screening and monitoring • Financial risk management and its importance on financial control • Comparing crisis management and risk management

 Exercise: Basel II – What is it? How good is it? How will it affect a business?  Exercise: Enterprise risk management – What is it? Does it add value?  Case Study:

Procter & Gamble and Gibson’s misuse of derivatives financing – lessons for senior management

Forward And Future Contracts Forward Contract Design And Structure • Understanding the structure of forward and future contracts • The difference between forwards and futures • Different types of forward and futures contracts including currency, interest rates, bonds and commodities

 Case Study: Designing a futures contract – designing a contract

combining user requirements with feasibility from the exchange standpoint

Mechanics And Uses Of Forward Contracts • Trading speculation, hedging and financial engineering • Measuring market risk • Measuring credit risk

 Case Study: Managing risk using forward contracts. You will use futures

contracts to manage a range of different financial risks facing corporates

Interest Rate Forward Contracts • Rates implicit in spot quotations • Arbitrage pricing methods • Importance of margining • Clearing and netting



Exercise: You will be provided with black-scholes and binomial option pricing models and instructed on their use

Financial Control And Option’s Greeks • Delta • Gamma • Vega • Theta • Rho

 Exercise: Should organisations use derivatives to manage risks? How they should do it

 Exercise: Managing risk using option’s greeks Credit Risk Introduction To Credit Risk • Definition of credit risk • Three approaches to measuring credit exposure – individual transaction approach, market factor approach and portfolio approach • Extension from credit exposure to credit risk – credit risk management, economic capital and regulatory capital Credit Derivatives • Understanding the major uses of these products • Benefits and pitfalls for the user • Credit default options • Total return swaps • Credit spread transactions

 Case Study: Developments in credit derivatives in the Middle East Risk Assessment Techniques • Risk assessment from factor sensitivity to Value at Risk (VaR) to conditional VaR • Three approaches to measuring VaR: Variance/covariance, historical simulation, Monte Carlo methods • VaR at the transaction, portfolio and organisational levels • Marginal VaR contribution measures and conditional VaR • Cashflow at Risk (CfaR), Earnings at Risk (EaR), and Capital at Risk (CaR) approaches • Credit Value at Risk (CVaR) and Operational Value at Risk (OPVaR)

Swaps Types Of Swaps • Interest rate swaps • Cross currency swaps • Equity swaps • Asset swaps

 Case Study: Using interest rate swaps in project finance Options Options And Their Use In Corporate Finance • Understanding option jargon • Using options in practice • Trading and hedging • Arbitrage with convertible bonds

 Case Study:

Option Pricing For Corporate Finance • Black-scholes and binomial options pricing methods • Adoption of black-scholes method • Other option pricing models • Model risk – do the complex mathematical models associated with derivatives valuation have a place in the Middle East?

An option theoretic view of the organisation

 Exercise: VaR across the organisation and its business units including the decomposing of risk across an organisation using component VaR

Risk And Capital Allocation Techniques • Risk and capital allocation using Value at Risk (VaR) measures • Capital–based risk-adjusted return and performance measures • Comparing economic risk capital and regulatory capital • Relationship of RAROC capital to credit, market and operational risks

 Exercise: Calculating RAROC for a financial institution Course Conclusions – Pros and cons of risk management technique

Tel: 971-4-3352437

Fax: 971-4-3352438

Email: [email protected]

Web: www.iirme.com/sef

Senior Executive Finance

IIR Middle East certified by

9 – 13 August 2009 • JW Marriott Hotel, Dubai, UAE SIGNIFICANT SAVINGS!!! For further information on current promotions and Group Discounts please contact Raveena: +971-4-335 2483 [email protected]

FIVE WAYS TO REGISTER 971-4-3352437

[email protected]

971-4-3352438

GCS/IIR Holdings Ltd. P.O Box 13977 Muharraq, Kingdom of Bahrain

IIR Holdings Ltd. P.O Box 21743 Dubai, UAE

www.iirme.com/sef

Interested in running this course in-house?

Please call the Customised Training Solutions Team on 971-4-3352439 or [email protected]

BC3100

Early Bird Discounts Senior Executive Finance 

Book the entire event

 C  ourse I – Executive Finance And Valuation (3 Days) 

ourse II – Advanced Risk And Investment C Strategy (2 Days)

Dates

Price before 31 May 2009

Price between 31 May and 21 June 2009

Price after 21 June 2009

9 – 13 August 2009

US$ 4,250 (Save US$ 2,140)

US$ 4,550 (Save US$ 1,840)

US$ 4,750 (Save US$ 1,640)

9 – 11 August 2009

US$ 3,195 (Save US$ 300)

US$ 3,395 (Save US$ 100)

US$ 3,495

12 – 13 August 2009

US$ 2,695 (Save US$ 200)

US$ 2,795 (Save US$ 100)

US$ 2,895

Course fees include documentation, luncheon and refreshments. Delegates who attend all sessions will receive a Certificate of Attendance.

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Event Venue: JW Marriott Hotel, Dubai, UAE Tel: +971-4-2624444 Accommodation Details We highly recommend you secure your room reservation at the earliest to avoid last minute inconvenience. You can contact the IIR Hospitality Desk for assistance on: Tel: +971-4-4072693 Fax: +971-4-4072517 Email: [email protected]

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