2. Vlerick Business SchoolUSUALLY PEOPLE DO NOT LIKE FINANCE So
I need to start with telling them aboutappealing and hotly debated
topics like2
3. Vlerick Business SchoolLargest company ever according to
market cap!3 |Jump of $ 50 bio!!
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5. Vlerick Business SchoolDo you see the link?5 |
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#experiencevlerick8http://business.time.com
9. Vlerick Business SchoolIMPORTANCE OF SOUND FINANCIAL
MANAGEMENT What is the goal of a company? Liquidity Profitability
Solvency Let me prove this General Motors, Eastman Kodak,
LehmanBrothers, Enron, Worldcom, Chrysler, Nokia, Sony,
TomTom,9
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11. Vlerick Business SchoolMGM FILES FOR BANKRUPTCY, BUT
JAMESBOND MAY RETURN IN 2012"New James Bond films may be released
every second year starting in November 2012,MGM said. It aims to
own 50 percent of Bond 23, due out that year, with an equal
partnerpaying all of the production costs, it said. Later Bond
movies would be wholly owned andfunded by MGM..."11
12. Vlerick Business SchoolTHE HOBBIT12"MGM estimated its total
obligations to "The Hobbit" are $265 million to $275 million.
Thecompany said it is looking for "a third party" to fund those
obligations. Its investment stakewould be $40 million while the
rest would be funded by a lender..."
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18. Vlerick Business SchoolLARGEST BANKRUPTCIES18
19. Vlerick Business SchoolSTOCK MARKET EVOLUTION (S&P
500)#experiencevlerick19
20. Vlerick Business SchoolSTOCK MARKET EVOLUTION (EUROSTOXX
50)#experiencevlerick20
21. Vlerick Business SchoolTENTATIVE SIGNS OF RECOVERY: REAL
GDPGROWTH (EUROSTAT)21
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23. Vlerick Business SchoolHEADS OF EUROPE BACK BROAD PLAN
TORESCUE GREECE (NEW YORK TIMES - JULY 21, 2011)23The pact,
negotiated in Brussels, is part of a rescue package of 109 billion
euros, or $157billion, for Greece, the most troubled economy in the
euro zone. It will force many investors inGreek debt to accept some
losses on their bonds.Under the plan, Greece would receive
assistance in several ways. Holders of short-termobligations would
be able to swap their notes for debt with longer maturities and
backed byhigh-rated bonds. An organization that includes most major
European banks said its memberswould accept the offer and expected
90 percent of all Greek bonds to be exchanged.Separately, officials
said that the terms of the aidpackage from Europe to Greece would
beeased, with maturities lengthened to 15 years from7.5 years, at
an interest rate of a quite low 3.5percent.The euro zone leaders
would give wide-ranging newpowers to the regions rescue fund, the
EuropeanFinancial Stability Facility, by allowing it to
buygovernment bonds on the secondary market and tohelp recapitalize
banks which might be neededwhen they write down the value of their
Greekbonds.
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26. Vlerick Business SchoolSOVEREIGN DEBT CRISIS NOVEMBER, 28
201126
27. Vlerick Business School15.000.000.000.000
USD!!!http://usdebt.kleptocracy.us27
28. Vlerick Business SchoolS&P DOWNGRADES U.S. TO AA+ -
WERE TIEDWITH BELGIUM!Officials at ratings firmStandard & Poors
said U.S.Treasury debt no longerdeserved to be consideredamong the
safest investmentsin the world. S&P removed forthe first time
the triple-A ratingthe U.S. has held for 70 years,saying the budget
deal recentlybrokered in Washington didntdo enough to address
thegloomy long-term picture forAmericas finances. Itdowngraded U.S.
debt to AA+,a score that ranks belowLiechtenstein.28Reaction of
commentator: On the positive side, we are nowequal with Belgium, so
we should be getting an overdueupgrade to our beer and
chocolate.http://seekingalpha.comAugust 6, 2011
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31. Vlerick Business SchoolSOVEREIGN WEALTH FUNDS Abu Dhabi
Investment Authority + 500 bio $ China Investment Corporation 300
bio $ Kuwait Investment Authority 250 bio $ Hong Kong Monetary
Authority 173 bio $ Qatar Investment Authority (Volkswagen)
Singapore Investment Corporation Many of the new economies state
funds invested heavily inAmerican and European firms during
crisis31
32. Vlerick Business SchoolASIA, MIDDLE EAST AND THE BRICS
Chinese Shandong Heavy Industry buys Ferretti (Riva, 374mio euro)
from Candover (PE fund) Brasil > UK Rosneft > ExxonMobil
Record results: Ferrari, Porsche,De Beers, LVMH, Rolls
Royce,32
33. Vlerick Business SchoolINTEREST RATES33
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42. Vlerick Business SchoolFACEBOOK
IPO#experiencevlerick42
43. Vlerick Business SchoolFACEBOOK IPO Amount to be raised: $
5 bio Total Valuation: $75-100 bio Dual-class shares Zuckerberg has
18% ownership but 57% of votingrightsAt market value of $100 bio:
845 mio user $118/user Revenues: $ 3.71 bio P/S= 27 Profit: $ 1 bio
P/E= 10043
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47. Vlerick Business SchoolB-POST FIRST IPO IN BRUSSELS IN
MORETHAN THREE YEARS#experiencevlerick47 Exit of CVC (25%-30%
shares) CVC will keep 15% Belgian government: 50% + 1 share Value
estimted around 3 bio Syndicate of banks responsible for IPO:JP
Morgan, Nomura, BNP Paribas Fortis, MorganStanley, UBS, KBC, ING,
Belfius and Royal Bank ofCanada High dividend yield (6-8%) 26000
FTE 10.5 letters a day
48. Vlerick Business SchoolTOP IPOS IN BRUSSELS AND
THEIRPERFORMANCE#experiencevlerick48Source: De Tijd
49. Vlerick Business SchoolHOLLYWOOD DISCOVERS
CROWDFUNDING#experiencevlerick49CANNES, France--The Cannes
FilmFestival can sometimes make room forsomeone a little different.
Someone,say, like Jeremy Saulnier, a little-known director who, at
36, has used alittle pluck and plenty of Kickstarter todefy the
stereotypes of the worldsmost prestigious (and
expensive)festival.Thanks to the democratizing advantages of
crowdfunding, Saulnier is showing an alternativepath to the
normally elite precincts of the Cannes Film Festival. Saulniers
film "Blue Ruin"isnt like most here, which are financed lavishly by
foreign distributors, Hollywood studios orgovernment film
funds.Saulnier and his wife liquidated their retirement accounts,
refinanced their home and ran upwell over a $100,000 in credit-card
debt to make the movie. But the real key came when,needing tens of
thousands of dollars to trigger cast and crew deals, Saulnier put
his projecton Kickstarter. He raised the necessary $35,000 in a
matter of weeks.
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52. Vlerick Business SchoolRAISING DEBT: SOME RECENT BOND
ISSUES ArcelorMittal (BBB-): $3 bio: 3.75% (5 year), 5.50%
(10years), 6.75% (30 years) Jaguar Land Rover (B+): $1.6 bio
(8.125%)7 years AB Inbev (A-): 750 mio (4%!!!) 10 years Hyatt
hotels (BBB): $250.0 (3.875% -5 years) and $250.0(5.375% - 10
years)52
53. Vlerick Business SchoolFINANCING AT LOW COST Oct 2010:
Wal-Mart: 750 mio $, 3-year, 0.866% (30 bp overtreasuries)
Microsoft: 1 bio $, 3-year, 0.931% (25 bp overtreasuries) Long
terms (end of 2010) JP Morgan Chase: 5.5%, 30 years Goldman Sachs:
6.125%, 50 years Rabobank: 5.8%, 100 years53
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57. Vlerick Business School!#experiencevlerick57
58. Vlerick Business SchoolCASH GIANTS S&P500
STOXX600#experiencevlerick58Source: De Tijd
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69. Vlerick Business SchoolWHO MASTERS THE FIELD OF
FINANCE?FORBES: Worlds Billionaires69Rank Name CitizenshipNet
Worth($bil)1 Carlos Slim Helu Mexico 53.52 William Gates III United
States 53.03 Warren Buffett United States 47.04 Mukesh Ambani India
29.05 Lakshmi Mittal India 28.76 Lawrence Ellison United States
28.07 Bernard Arnault France 27.58 Eike Batista Brazil 27.09
Amancio Ortega Spain 25.010 Karl Albrecht Germany 23.5
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72. Vlerick Business SchoolINVESTMENTS Best NASDAQ performers
since December 2000,annual return: Monster Beverage: 60% Apple: 44%
Priceline.com: 36% Amazon.com: 17% eBay: 11%72
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76. Vlerick Business SchoolFIRMS IN TROUBLE / BANKRUPTCIES /
CH11 Philips considers selling TV business Saab Eastman Kodak
American Airlines Baseball club LA Dodgers Chapter 11 Borders
(second largest brick-and-mortar bookseller) Chapter 11 Closing 200
shops Focus on Borders.com76
77. Vlerick Business SchoolJOB CUTS ANNOUNCED IN LAST MONTHS
HSBC: 30,000; Lloyds: 15,000; UBS: 3,500 Bank of America: 40,000
Goldman Sachs & JP Morgan: 1,000 Unicredit: 5,200 jobs
RIM/Blackberry: 2,000; Yahoo: 2,000 Philips: 4,500; Nokia Siemens
Networks: 17,000 Astra-Zeneca: 7,300 / Novartis: 2,000 jobs /
Roche:4,500 jobs Pfizer Patents expire, eg Lipitor (peak sales:
12.9 bio/year;cumulative 117 bio $) Procter&Gamble: 5,700
American Airlines: 17,00077
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80. MISCELLANEOUS
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82. Vlerick Business SchoolTOP COMPANIES: HIGHEST PROFITS
201082Rank CompanyProfits 2010 ($millions)1 Nestl 32,843.02 Gazprom
31,894.53 Exxon Mobil 30,460.04 Industrial & Commercial Bank of
China 24,398.25 Royal Dutch Shell 20,127.06 China Construction Bank
19,920.37 AT&T 19,864.08 Petrobras 19,184.09 Chevron 19,024.010
Microsoft 18,760.0
83. Vlerick Business SchoolTOP COMPANIES: MONEY LOSERSSource:
CNNMoney.com83Rank CompanyLoss 2009 ($millions)1American
InternationalGroup99,2892 Fannie Mae 58,7073 Freddie Mac 50,1194
General Motors 30,8605 Citigroup 27,6846 Merrill Lynch 27,6127
ConocoPhillips 16,9988 Ford Motor 14,6729 Time Warner 13,40210 CBS
11,673
84. Vlerick Business SchoolCORPORATE GOVERNANCE Corporate
governance, VW: Ursula Pich (55)joins VW Board Fernand Pich is 74
Porsche-Pich family has 5/20 seats New York Times: cumulative
profit last 4 years:3 mio euro, CEO Janet Robinson got sacked
andgot golden parachute of 23.7 mio dollar Tim Cooks made 378 mio $
in 2011 (Jobs 2006:647 mio $) Bettencourt (89) leaves lOral
Board84
85. Vlerick Business SchoolACCOUNTING FRAUD Olympus Japanese
company, prefer to hide fraud than tolose face/reputation Decades
of manipulated figures CEO Michael Woodford was critical, got
sacked -29% (maximum Tokyo allows) on announcement Issues regarding
consultancy fees, especiallyregarding M&A, payments to Cayman
islands, Due diligence, corporate governance:underdeveloped, lack
of transparency (keiretsu cross-participations), often no
independentdirectors85
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87. Vlerick Business SchoolJRME KERVIELSource: Financial
Times87Kerviel found guiltyin SocGen scandalJrme Kerviel, the
roguetrader, was sentenced to threeyears in prison and ordered
topay 4.9bn ($6.75bn) indamages to Socit Gnral fortaking risks that
could have ledto the collapse of his formeremployer, Frances
secondbiggest bank.
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90. Vlerick Business SchoolFEEL LIKE SOME MORE? Executive
Master Class Corporate Finance (Fall2013) Executive Master Class
Controllership (spring2014) Financial Management for
Non-FinancialManagers (September 2013)#experiencevlerick90