 Good morning everyone, you're welcome to our monthly financial modeling webinar happens every third Thursday of the month from 11 to 12 p.m. Today we're going to be talking about steps for building a financial model from scratch. And I'm your host, actually we're two here. My name is Temidaya Jakai. I have over five years experience building financial models and I'm also a BI consultant at D Brown Consulting. And various models for startups and existing companies. We also have David here. David is the founder of D Brown Consulting. He's also an international consultant to the World Bank on all revenue modeling in Microsoft MVP and a chartered fellow of the ICANN and the CITN. He's also a member of CFA. He's done financial institution models. Now financial institution models, for example banks, insurance, those are the different kinds of financial institution models. There are other various kinds of models you can build. There's real estate. There is FMCG, FMCG is fast-moving consumer goods. For example Nestle, PZED, those are FMCG companies. There's oil and gas. There are two types of oil and gas financial models you can build. One is the fiscal financial model where you take into cognize all the fiscal issues from the oil and gas royalty. What's the royalty? It's a royalty weight for oil, all those fiscal terms, JV concession and project finance. Now a project finance model is a model that you have a project and you want to determine how much how much can I derive from the cash flow of that project? Really how much what cash flows are due to equity contribution? What cash flows are due to debt contribution? Now you also have the M&A model where you have a company that wants to buy another company. So you are looking at what are the value of the consolidated company? Now those are the interest to various kind of models. Now today we're going to be talking about the corporate model and the corporate model I mean a three statement model for an FMCG. So today we're going to be looking at Nestle. Nestle is listed on the stock exchange in Nigeria. I don't know what their share price is currently and we're going to be looking at how to build Nestle from scratch. So we're going to take a look at step one. Now step one, you must create a model template structure from scratch. Now you have various types of models. Number four, a financial model. The output of the financial model is PNL, balance sheet, cash flow. And sometimes you do sensitivities, analysis, return on equity and you do valuation. Yeah, so those are the outputs of a financial model. So I'm just going to share my screen now. Now super. So the first step is to create a structure. And in the structure, what I mean is if I click on my is or then I have five years of projection. If I click on Calculation PNL, if I click on balance sheet, they are all following the same template. There's concept. You need to follow this sheet. Have the menu sheet. It helps your doc navigate, click on it and loss. So it makes navigation easier. And doc, you can see the name of the company that I want to focus on. And this is the style. For example, his blue, you see blue and moose, those steps that we're going to go to is we're going to download our financial statement. So in restructuring or normalizing your PNL, typically what happens is if you have a financial statement of a company now, you would see how that works. So in restructuring your PNL, really what companies do is they hide certain line items inside certain line items, like for example, depreciation. Depreciation was nowhere to be found on the financials. We had to pull it out from cost of sales. And really, you need to notice that there's something called above the line and below the line. Now, anything above gross profit is any line item above gross profit is called above the line. Any line item below gross profit is called below the line. Now, typically, companies below the lines are usually the same. They pay salaries, SG and A, they have some amortization, they have some impairment, whether or not they impair and they have interest income. Those are below the line items. So once you're done restructuring that, you need to make sure that the net profit is still the same. So you're pulling out figures and making sure that the net profit is still the same. Now, once you do that, the next thing you do is to restructuring. I don't know if you could show us the financials before the restructuring and after. Are these the financials before the restructuring? The one you're showing us right now? No, the one I'm showing you is after the restructuring. So the one before the restructuring is... You have the PDF financials, for example. Okay, you have it here. All right. So is there any... What do you do when you're restructuring? Why do you have to restructure? The reason why you restructure is to pull out certain line items from your line items that are not shown on the P&L, for example, depreciation. And you have to go to the notes of the financials, goes to someone in the notes to look for the depreciation figure for that year. Okay, interesting. Interesting. All right. So the next step after restructuring the P&L is to restructure the balance sheet. Now, in restructuring, the P&L is the most difficult to restructure. In restructuring the P&L, you need to identify certain critical line items. So if you have a pen there, let me give you the critical line items you must have in every three statements model. So most of the critical line items you must have is you must have, of course, your revenue. That's normal. Then you must have your cost of goods sold or your cost of service. If you are a service company, it's cost of service. What are those direct costs related to producing that sales or that revenue? Then you'll have your gross profit. Now, if you're a manufacturing company, one of the costs that you use directly to produce that service is your depreciation on your property, plant and equipment. Now that property, plant and equipment depreciation is directly related to your service is directly related to that sale. So that's why depreciation is usually above the line or at least some depreciation above the line for manufacturing companies. So you have your sales, your cost of sales, times depreciation, and then you have your gross profit. Now below gross profit is usually the same as Temida has said for every company. You have your SG&A selling general and admin expenses below gross profit. Then you have your operating profit. Then you have your interest income and interest expense. Then you have your profit before tax. Then you have your tax and then you have your profit after tax. So that's typically what you restructure your P&L you look for all those line items and restructure P&L. For your balance sheet restructuring, really what you're looking for is every line item should be exactly what it says. So for example, you see trade receivables or trade payables. Trade payables should be payables for trade. Anything else that is inside that trade payable line should be removed because it's not making your line clean. I mean, you can't compare trade payables for a Nestle, for example, to a trade payables for a PZ. There has to be exactly trade payables. So sometimes when you look at the line items in the financials, you go and read the notes, you'll see, oh, there was one derivative transaction here or there, or there was one something about something else that was added to a line. And IFRS is the book for accountants. IFRS is International Financial Reporting Standards. That's what accountants use. So IFRS could allow accountants to add one or two things into a line, but as a modeler, as a financial analyst, you need to go remove those things from the line so that you can compare like with like, because company A could put some things in, while company B may not put some things in. So how can you compare apples and apples? You mean one company is putting one item inside a line item, another company is not. You can't compare. So that is why you restructure your balance sheet. So you can come up with line items that are similar for every company. So you restructure your balance sheet. The next step after restructuring your balance sheet is to generate assumptions based on historical trends. So you need to generate assumptions based on historical trends. So that's very key. How do you generate assumptions based on historical trends? Well, even before we move on, I think it's a good time to actually tell you about the Financial Modeling Institute. For those that know, there's this institute called Financial Modeling Institute trying to build up financial modeling skills with our analysts and our accountants and our chartered accountants and stuff. Financial modeling is a really, really top skill. So if you check out FMinstitutes.com, you'll be able to know a little bit more about the institute. But let me play a video from the very, very first Advanced Financial Modeler in Nigeria. So this lady is one of the people that came to participate in our course. And she is the very first Advanced Financial Modeling Modeler from Nigeria. So let me just play a short video for you to see, just watch something about her. So you know a little bit about the institute. Great, guys. I would like to welcome a special guest today. My name is Adi Tutu Oludare and she is the very first Advanced Financial Modeler issued and certified by the Financial Modeling Institute. So we did the exams in April 2018 and she is the first qualified Advanced Financial Modeler. So Adi Tutu, you're welcome. Thank you. Yes, and just like to share your experiences as in how, why Advanced Financial Modeling? What's the fascination with modeling? Okay. Why Advanced Financial Modeling? Early this year when I was to go and train in and then I was to write a training plan. I just decided I wanted something different from the usual. I work in internal control. So I didn't just want to do anything related to control. We knew all that is not already. So I just wanted something different, something that would help my career as an accountant. So I looked through all the training calendar that I was sent and then I discovered Deep Brown and then I saw a few of the trainings they had and then National Modeling resonated with me because I used to do a few modeling for people, not the professional way. So I just felt it was a good time to learn how to do it professionally and then, you know, just be best at it. And then I decided to involve. Yeah, but there are many Financial Modeling courses. You don't need to do an exam and do that rigor of an exam. Why do you go all the way? Okay. So when I chose the course, I didn't know you had an exam. So I just chose it to learn. And then voila, when I got there, so there was an exam and I really don't like to give up a thing. So I told myself I was going to do the exam. So I went for it. And where do you work? What's your small background to your career? Okay, I work with Stan Bikai B2C. I work in internal control department. I'm an accountant. I'm a chartered accountant. I have a CCA. So I started working with Stan Bik 3 years ago. And it's been a very interesting journey working for Stan Bikai B2C. It's a great institution. They paid for this exam. Yeah. So you're officially known in the institution as an advanced Spanish Modeler. Okay. So when I got the results, I sent it to my Helen D. That's learning and development, head of learning and development. I sent it to them to say, okay, thank you for paying for those costs. And I've done you proud by passing. Great. So that was a day to two with the first advanced financial model, advanced financial model issued by the Financial Modelling Institute. So Oluchei says assumptions could be based on information from the notes to their accounts. Excellent. So generate assumptions. Yes, that's true. So assumptions could be based on the notes to their accounts. Let me open a file. Let me just open a small demo so you can have a look at how you generate assumptions. So after restructuring your P&L and balance sheet, you need to now generate those assumptions. You complete your input generation. So let me open a file, at least a demo to see how that works. Give me a few seconds. I'm going to open a demo and let me see. There's a nice password to it. So let's get the part right. So I have the file opened. I'll just share my screen with you guys in a few seconds. So this is my screen. So obviously, Timita has already shown you this. This is you did all your first stage, second stage, third stage, you did your restructuring of your P&L. If you look at my P&L, this is my restructured P&L, right? So P&L is showing us revenue, cost of sales, depreciation, SG&A, and the likes of it. So we've restructured our P&L. And then we've also have our balance sheet. So our balance sheet is also restructured. So if you look at the balance sheet of Nestle, for example, for, I think this year was 2014, you would have seen that it's not similar, it's not looking like this. This is more restructured so that it makes more sense when we're building the model and we can compare this to other companies. So the next step is assumptions. How do you build assumptions? How do you build assumptions? The secret is this. You come and build P&L assumptions by highlighting these figures, just highlighting all these lines, copy all these lines. You need to build an assumption for each line. Once you copy the line, you go to your input sheet and you paste the line there. You paste it there. So you paste the lines there. So you see your P&L assumptions, you've pasted all the line items of your P&L. Then you now ask yourself, okay, for each line item, what kind of assumption should I use? So for revenue, since this is a mature company, we could decide a very simple assumption which is percentage growth, percentage growth rate. Then you calculate what it was historically. So for example here, I calculated, okay, in 2013, what was the growth year on year growth? So in 2013, I go to my P&L and I say, okay, 2013's revenue, which is this, divided by 2012's revenue minus 1. That is a short form for calculating a growth current item divided by previous item minus 1. That gives you a growth rate. So look at it. I have a growth rate of 14. I drag this to the right and I have a growth rate of 7.7. So if I grew by 14% revenue wise from 2012 to 2013, and then from 2013 to 2014, I grew by 7.7%, what do I think I'm going to grow by going forward? So again, you make a guess. You just guess. Now it's very important. At this stage of building your model, all you need to do is get what is the assumption driver, what's the driver? The driver for our revenue is year on year growth. The figure you put in here really doesn't matter at this stage. You can put 10%, 20%, 15%, it doesn't matter. What matters is you have an assumption. Later, we're going to go and look at the assumptions and say, okay, which one makes sense. The key thing right now is what are the drivers for each line item? See cost of sales, for example, the driver is percentage of sales, which makes sense. Historically cost of sales was 53.8 and 53.2. So we decide to put 53. These figures can change, but this is how you generate assumptions. So let's take another one from maybe liabilities. So your deferred tax liability, you don't have too much information about deferred tax. So you just make an assumption that you're assuming that the ending balance will be flat. What are you saying here? But you're saying the ending balance will remain flat, which means there are no change in deferred tax. Is that a good assumption? Well, for the information you currently have, yes, you could say you don't want deferred tax to affect any of your financials, so you're just going to leave it flat. But that is an assumption. Your assumption is ending balance. Take trade payables. Trade payables is a percentage of cost of goods sold, which means that you came here and you did an equals to sign here and said, okay, what was the percentage of trade payables as far as cost of goods sold is concerned in 2013? So you said equals. So we'll go and look for trade payables in our balance sheet. Where is trade payables? So look for trade payables, trade payables. Here we are. Then you divide that trade payables by cost of goods sold, which is in our PNL, PNL, cost of goods sold, which is this one. You enter and you get a percentage. I get 40 points. This is other. No, which one did I do? I did the wrong one. Okay, no, trade payables. Yeah, I got that. That's 40 points, something. So J28. Let's see. I think this is trade payables. So let's go back equals to trade payables as a percentage of cost of goods sold. Where's trade payables? This is trade payables. I took the wrong line. Trade payables here. And then we divide that trade payables by cost of goods sold in our PNL, where it's cost of goods sold. And we get a percentage 40.6. And then if you take that right, you get 34.9. So that's percentage of cost of goods sold. Where's our balance sheet? Percentage of cost of goods sold. Where's trade payables? Trade and other payables. So is this as a percentage of cost of goods sold? Right. So that's how you generate assumptions. Okay. Step by step, by step, by step, you check what drives these revenues, and then you generate assumptions that way. What is the next step? So what's our next step? What's our next step? After generating assumptions based on historical trend, the next step for us in building our model is to build the calculation sheet PNL and balance sheet. So you've just basically built a template. And now you want to now build, do your calculations, build all those your calculations and everything. So you need to create a calculation sheet and have all your calculations in that calculation sheet. How do we do that? So we would need to let me open the model we currently have. And let's see how we build a calculation sheet and input sheet from all the inputs and stuff. How do we build a template for a calculation sheet? An important bit there is you need to build a structure of a calculation sheet. How do you build a calculation sheet structure? I'll just show you briefly one way. And then I'll show you the answer. So to say, since we're not really building a model here, we're just showing you how it's done. So if you look at my screen, I have a screen. This is the same screen we had before we had our inputs. These are our inputs that we've generated. Now we need to build a calculation sheet. Your calculation sheet should contain your schedules, your schedules for every single line item of your balance sheet. So how you do it is if you go to your balance sheet, you need a schedule for every line item of your balance sheet. Property, plants and equipment needs a schedule. Long-term receivables needs a schedule. Inventory needs a schedule. Everything needs a schedule. And there are three main kinds of schedules in your model. You have your base schedule, your BCE schedule, and your operating working capital schedule. So your base schedule is something like this. I'll just type one for your beginning, balance. Then you have your additions. Then you have your subtractions. And then you have your ending balance. So this is a schedule. And what is this schedule? Let's say this is, I don't know, base schedule one or something like that, right? So this base schedule one could be you can assign this schedule to property, plant, and equipment. Long-term receivables also have their own schedule. Inventory have their own schedule and stuff like that. So that is, that's what we mean by schedule. So what is our beginning balance? Obviously, if I stop here, this is our projected here. This is where our projections are going to be from 2015 to 2019. So if this is our first beginning balance, the rule is simply that beginning balance is always equal to last year's ending balance, right? So this is last year's ending balance. Yeah. And then ending balance is equal to beginning balance plus addition, minus subtraction. So this is just a general rule. So this rule, we could kind of shade this and make it kind of nice and double on the line or something like that, like this. And then this one, usually, as Timothy and I said, there's a style guide. So you probably need a link style or something. Where's our link style? I know we have a link style somewhere here. So they could use this as our link style. And here, we could drag this, all of this, just drag it to the right. So you've built a schedule. We haven't populated it yet, but this is technically a schedule. And there's a nice trick in modeling, right? When you build a schedule like this, and you know, you probably need 10 more of this, all you do is highlight the schedule like this, see the bottom, leave the bottom blank, come to the edge and drag down. It just replicates automatically. Look at that. It's just replicating our schedules. So it's like a magic trick, right? But anyway, that's how you build a schedule. By the end of the day, once you finish building, this is how to look like this. So you built your schedule. So look at your schedules. You have your base, OWC schedules, you have property plans and equipment, you have your retained earnings, you have your operating, working capital schedules, another kind of schedule, you have your share capital schedule, you have your debt summary schedules and all your debts, different debts, debt, debt, debt, debt, plenty debt. And all these schedules are what builds up to building your model. So you need to fill out all of these line items to all your calculations. And that's how you build your model. So those are the schedules, very important section, your calculation sheet, finish off your calculations sheet. Okay, once it gets back, we'll join us again to Temudaro join us. So here we have step six, building the calculation sheet, PNL and balance sheet. So I showed you the demo, the calculation sheet, based on all the calculations in the calculation sheet, you build your PNL and you build your balance sheet from the calculations, right? The next step after that, step seven is calculate cash in cash flow statement, calculate cash in cash flow statement. Now this is a very important step because you need to be able to use cash to do like a reconciliation of whether or not your calculations are right. So you built your PNL, you built your balance sheet. And as far as your PNL and your balance sheet is concerned, you have cash that is just hanging there. If you do your cash flow statement, the cash at the end of your cash flow statement should be linked to your balance sheet. And if you've done everything right, guess what? Your balance sheet will balance. But if you haven't done everything right, you're going to have some errors or some items that you don't know where to get. I mean, your balance sheet doesn't balance basically. And you now need to find out why it doesn't balance. Step eight is link your cash to balance sheet and check whether it balances. That's what I asked. So you link the cash to your balance sheet, does it really balance and hopefully fingers crossed it will balance, right? So if it does balance, that means you've almost completed your model, almost not yet, but just almost completed your model. And so next really step you need to do is kind of check your assumptions. But let's see an almost completed model and let's see how it looks. Your almost completed model has your inputs. So your inputs are all there nice and neat. You have all the inputs. As I said, the assumptions for now may not really matter. You can change this to 8%, 4%, 5%. It doesn't really matter as long as you have a driver set. Your calculation sheet is also complete. You can see your calculation sheet, all the calculations done. This is the hard part, guys. You need to do all these calculations, all these calculations, but the calculations are based on your drivers. So your net profit here is based equals to your net profit in your PNL and your PNL calculations are also done here. So every line item of your calculations is based on a driver. How do you calculate revenue? For example, revenue is simply equal to the previous revenue multiplied by open your bracket one plus your growth rates, because it's growth rates that we're using to calculate revenues going forward. We're not using a price times quantity thing, which is typical of any model. We're saying, okay, this is a mature company. It's going to grow by 5%, 8%. So how do you do it? Last year times open bracket one plus then you go to your input sheet and select the growth rate for that year, which is the growth rate for year one of your projections. You close your bracket and you enter. And that is it. This is your growth rate. I can delete this because left to right consistency means that when you calculate a formula, you can drag it to the right. Your formulas must be left to right consistent. Here's our balance sheet. We've done all the calculations in our balance sheet. And the calculations are simply a link to your calculation sheet, because in your calculation sheet, you have your schedules, which contain what? Ending balances. So these are all the ending balances. And all you do is link them to your balance sheet. The only thing you will not link is your cash and your overdraft. So your cash and your overdraft comes from the cash flow statement. And that was the other step we saw. You need to do your cash flow statement. You do all your cash flow and your cash flow. Cash in is positive, cash out is negative. Cash in positive, cash out negative. That's how your cash flow works. And then you now have your analysis sheet, which is empty for now because you finish your cash flow. You've now linked the ending balance of your cash flow to your balance sheet. And guess what? Your model balances. Let me delete something here. You see that it doesn't balance. So your model balances. You're happy. Everything is cool. What is the next step after happily balancing your model? What should you do next? You haven't really finished. What's the next step after balancing your model? Everything looks rosy and nice. What do you think the next step should be? How many of you want to do the exam, Advanced Financial Modular Exams? Let me introduce you to this designation, the Advanced Financial Modular Designation. Practice, practice, practice. Understand what are your weaknesses and work on them very well. Okay, so that's excellent. So that's good advice for everyone that wants to become an Advanced Financial Modular. And of course, I did to show be on the online platform. There's an online platform for us to be brand consulting. So anyone doing this course or exam, we'll be there. So if you go and ask her for more questions, I'm sure she'll be able to still answer. Happy. Yes, happy answer. Yes. And I think it's a wonderful thing. And one key thing you just mentioned is you can make money from this certification. Yes, you can. Because so many people need this model and skills and they don't have it. So yeah, nice. Nice. Well, there's no conflict of interest. No, no. No. Okay. All right. So that's good. So any of your colleagues now wanting to do this exam? Quite a number, quite a number. The new certification is growing. So the Samba really wants to do it. Yes. So Dibral is my reference point anytime. I'm about to send the training breakdown like the outline to a number of people recently. So I'm sure Dibral will get quite a number of people even from Stambick to Stambick. I'll just say thank you very much to Adith Tutu. I mean, she is an inspiration and it's one key thing that comes to mind is hard work. You really need to work very hard. Whatever training you do can only go so far. You need to do the work yourself. You need to sit down, practice, practice, practice, practice, practice. And it's always good to have support, which we give. We give support, help, we even mark your script for you and say, okay, these are the places you need to work on, but nothing beats practice. Yes. One important thing is I'm also a chartered accountant and you think, oh, well, I know this stuff. I would do it in my head. No, you need to actually do it hands-on, hands-on practice. Not, I don't know, it's very trial practice. No, it has to be hands-on. Yeah. So thank you, Adith Tutu. Thank you. Congratulations. Thank you. And your nomenclatures now are ACCP. A-C-C-A-A-F-N. Yes. Thank you. All right. Great. So modeling. One key thing I would like to mention in the video that she just mentioned is you can make money. You can make money. If you build your model, regardless of what job you do, there are people that want to start businesses. There are people that want to restructure their businesses. There are plenty of people in need of financial models. Yes, we at D Brown Consulting do models, but I don't think so. Many people can afford our models, but there are many startups that could afford you. I mean, they could pay you $250,000, $500,000, why not, to build a model. That's not bad money. So yeah, you could make money by having modeling skills. And there's some websites you could go to and you could look for jobs there. And in the weekend, just build a model for someone and make some good money. It's not bad to make money, right, guys? I don't think so. So, step nine and 10. You've linked your cash to balance sheet. Does your balance sheet balance? Yes, our balance sheet balance is what next? Next step is add interest calculation iterations. One key thing you shouldn't do when you build your model is do your interest calculations and link your interest calculations into your P&L and stuff. Don't do that. That's the last thing you should do. Because interest calculations usually cause an iteration. There's something called an iterative thing about interest. Because when let's assume you have a cash balance of 100 Naira, if you have a cash balance of 100 Naira in your balance sheet at the end of the year, guess what? That 100 Naira will be invested. And that 100 Naira, let's assume is invested at 10%. You're supposed to give you an interest income of what? 10 Naira, right? So if you have 100 Naira as your balance, it's supposed to give you an interest income of 10 Naira. But doesn't that mean you don't have 100 Naira as your ending balance? That means you now have 100 plus 10, which is 110. But if it is 110, then that means interest is not really 10 Naira anymore. Interest should be 10% of 110, which is what? 11 Naira. So what is happening? What an iteration means is you've written something once as 10 Naira, interest expense, then you clean it and write it again as 11 Naira, then you clean it and write it again. So this is an iterative thing. It's an iterative process. And that causes something called a circularity. It causes a circularity in your model. So how many of us here have heard about circular reference errors? Circularity. So circularity is a problem and you solve there are various ways to solve it. You have your formula ways, you have your algebraic way, and you also have your putting on the iteration switch. That's a circularity or iterative switch that you switch on in Excel. Some models don't like it, some do. But anyway, this stage is at the end of your model, your model balances, you link your interest calculations into your PNL and that will cause that circularity to happen. And then you solve the circularity the way you like. The last, last step after doing all of this is you insert your analysis, your sensitivities, your scenarios, your valuation, all those extra modules that gives context to your financial model. So all those sensitivity analysis, you do scenario analysis, the best case, worst case, likely case scenario, you do all that scenario, you do your ratios, all the DuPont ratio, profitability ratio, asset efficiency ratios, your leverage ratios, do all those calculations, and those calculations will tell you whether your model makes sense or not. So it gives you a reasonableness check to your model. In this stage as well, you could do lots of nice interesting charts. You could also add evaluation module to do evaluation of your company, many things. So your financial model, your three statement financial model enables you to do so, so, so much. But if you build your model very well, then you'll be able to automate everything about your model and everything about the analysis of your business. So let me show you a final, the final, final model. And this one last thing we usually add in our models, because models can become very big and unwieldy. So I always advise people to add what we call outlines. So let me show you a model with outlines. And you see the final model, with some very nice outlines. So let me just put it up for you. Okay, so let's go back to our demo. Let's go to our demo machine and demo the last demo. So here we have our final, final model. So here we have our final model. Let me just minimize HIK, you could see. So we have Nicely, Nigera PLC. These are our links, hyperlinks, and everything. And then this is our style guide, our input sheets. These are all our inputs. But guess what? We've now added something. We've done outlines. If you look at the top left, you see one, two, and three. Three just expands everything. So this is really a neat way to work. It's like a book. You can see we're going from row six all the way to row 69, all in one page. If you click on the plus sign for equity, you see equity. So how are these outlines done? Let me just remove one to show you how it's easy to do outlines. So how easy it is to do outlines. So outlines you highlight. You want to put an outline between equity and liability. You highlight in between where you want an outline. Then I'll give you the old school way. You, I think, you see, I don't even know the old school way. I think it's data. You go to data, and then to the far right, you go to group and say group. I say group. So you highlight what you want to group. And then you say data, group, group. And then you say, say, do you want to group rows or group columns? We're grouping rows. So we say, okay. And that's how you create the outline. And now you have an outline here. You can see the outline. So that's exactly how all the outlines are created. We have an outer outline and an inner outline. So this is like the outer one. Yeah. And then let's let me say like this one, for example, is the outer outline all the way to maybe cash flow statements or something all the way down to here, right? This is the outer outline. And then these are inner outlines here, inner one here, another inner one here, another inner one here. And that's how you create outlines. And your model will read like a book. So say calculation sheet, it has its own outline as well. Very nice and neat. I can go to debt three, or debt two, see debt two. Then you go to a PNL. PNL is so small, you don't really need an outline. It's fine. Balance sheet also is now it's kind of small, but you could do an outline here. I could highlight this, for example, and do control. So the shortcut is basically alks, shift alt, right arrow key. I create outlines. I've just created one. Yeah, go shift alt, right arrow key, shift alt, right arrow key. And one thing about outlines, which I don't like is the default is that the outline is at the bottom. It should be at the top. So you have to go back to data. You have to or not data, is it? Where's our data? Then to the outline edge, you click on the edge of the outline options and to the right. And then you change this and say, show summary below details, you remove that. Show summary to right, you just remove this to say okay. And then it comes back up. They have this, this is your outline, much better. So your assets, and your equity, and your liability. Yeah, I could decide I want to do another outline here. I just want to just show total assets, but we're good. We're good. Outline one and outline two. Nice. What about cash flow? Do we have outlines there? No, we can easily do the outlines. So you highlight. So you highlight in between like this, right? And you do outline. And another outline. And another outline. Very neat and tidy. So you just kind of get a way of making your work neater. And when you have a very neat and tidy model, they'll pay you more, right? So this makes is kind of pays to to be neat and tidy when you're building your models. Analysis sheets, you have some analysis and valuation, those are empty. So that is it, guys. That is how you build your model. Those are the 10 steps for building your model from scratch. 10 steps for building a model from scratch. Sorry, Timida seems to have been off. I don't know if it's back now. So we can conclude our webinar. So those are your 10 steps for building a model. It's just a recap. Okay, I don't think Timida is there. We must have had problems with his audio and mic. Sorry about that. Okay, so the 10 steps where I create your model template structure, step one, upper sheet structure style guide on all your sheets should be the same structure. So your PNL, your balance sheet, if it's year one, you start in column P, then year one, you start in column P for every, every sheet, that kind of stuff. Step two was download historical financial statements from whatever historical financials. Step three was restructure or normalize your PNL. Then step four was restructure or normalize your balance sheet. Then step five was generate assumptions based on those historical trends. You generate assumptions and input based on historical trends. Then step six was build the calculation sheet, your PNL and your balance sheet. So that is the actual building of your model, those calculations, building the calculations in your calculation sheet, PNL, and balance sheet. Then you have step seven, calculate cash in cash flow statement. Then you have step eight, which is link cash to balance sheet and ask yourself, does it balance? And hopefully it does. When it does balance, then you add interest calculation iterations. That's step nine. Step 10 is you insert your analysis, your sensitivities, your scenarios, your evaluation, all the charts. You insert all those other analysis after your model has been built. So these are the 10 steps for building a model from scratch. So this webinar has been sponsored by D Brown Consulting. We do training, consulting and payroll. We train analysts. Everything about analysts is what we train. You could check us our online platform on officetraininghub.com. I've just put an offer for you, which is the step by step guide, which is the actual definitive guide for you building, learning how to pass the AFM level one exam. That's the financial modeling Institute level one exams called Advanced Financial Modular. So if you're already a modular, all you need to do is go do that online course and you have a 25% discount on it and you'll be ready to pass the exams. Of course, you need to practice as hard as possible, but that will really set you up well to pass in the exams. So those are D Brown Consulting and we have affiliations with Financial Modeling Institute, we have Canadian based Microsoft and Association for Talent Development. And we also, and your host was Timmy Dyer and Ajakai, who is an experienced analyst at D Brown Consulting and myself, David Brown, who was also the founder of D Brown Consulting. And I'm also an international consultant to the World Bank on oil revenue modeling, one of those complex modeling, oil revenue, fiscal modeling. Yes. And so this has been D Brown Consulting. And once if you want to contact us, it's 0700 training and training at dbrownconsulting.net. But please visit our online platform and get some free courses on our online platform on officetraininghub.com. So thank you everybody for joining us and we will see you next month, the third Thursday of every month. We do these webinars from 11, from 11 o'clock to 12 noon every third Thursday of the month. It's already 12 noon today. So I have to close the webinar now and we hope to see you next month. So next month is our last webinar of the year. We hope to see you next month. So bye bye everybody. You can have type anything in the chat. I'll be online briefly if you want to have a chat. But officially the webinar is over. I hope you enjoyed it. Thank you very much. And thanks to Timmy Dyer too, sorry for his internet issues and his connection issues. And you'll hear from us next month. Thank you guys. Bye bye.