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The Projection of Financial Statements Made Easy

Prodegee is a MS Excel spreadsheet designed for the projection of financial statements

Sample of Cash Flow and Profit & Loss projection

It projects monthly Cash Flows, Profit & Loss and Financial Position (Balance Sheet) for a 16-year cycle

Financial projections result from a set of input data (baseline + assumptions), which can be environmental, social, technical, commercial, economic and financial in nature

It is multi-language and it can manage GST (VAT), income taxes and levies, one local currency and one foreign one, five different inflation rates for each currency, short and long-term loans, different types of progressions for sales, among many other features

Sample Exchange Rates

It can be used to evaluate the financial viability of either a start-up or an already established organisation and it has been designed having the for-profit and non-profit sectors in mind

For already established organisations, it uses the data from the last three financial years as the baseline. By comparing the projected statements of the three baseline years with the real ones, it allows to refine baseline data until both sets of financial statements match. By doing so, it is able to carry out very accurate sensitivity analyses for the remaining 13 years.

For the non-profit sector it allows to properly differentiate and account between donated and purchased assets.

Sample Donated and purchased assets

It can generate consolidated, grouped or individual financial statements from up to 9 different types of organisations. This feature is very useful for optimising intermediate prices

Prodegee organises input data in three sets of tabs:

  • GENERIC: they are common to any industry. They are used for entering GENERAL economic data and assumptions, the list of involved STAKEHOLDERS, sources of FUNDING, existing and projected INVESTMENTS, the estimated INDIRECT EXPENSES (those that cannot be directly associated with a product, service, or customer) and PRODUCT & SERVICE SALES. Sample Donated and purchased assets
  • SPECIFIC: they are specific to a given industry or type of service and they are required to estimate the REVENUES from a particular service, and the DIRECT EXPENSES (those directly associated with a product, service or customer). Sample Donated and purchased assets
  • TAILORED: they can be adapted to any given stakeholder to allow them project statements by entering strategic data and selecting scenarios directly in a tailored DASHBOARD adapted to the stakeholder needs.

Any organisation can project financial statements by using the generic tabs, but if they require to estimate costs and revenues directly connected with a given service or industry, they will need the addition of specific tabs.

Any stakeholder within a given industry can project financial statements by using the generic and specific tabs, but if they wish to enter all the input data relevant to them from just one tab and visualise the output on the same tab, they will require a tailored dashboard.

Prodegee for the Power Sector

So far, the only specific version of Prodegee is for the power sector. It can project financial statements for the following types of entities: * Power utilities, * Renewable energy service companies (RESCOs), * Independent Power Producers (IPPs), and * Related government bodies and organisations such as regulators, energy planning units and so forth.

The specific tabs of this version of Prodegee allow to enter these types of data: * Technical data such as priorities of dispatch, capacity factors, utilisation factors, daily-load profiles, power efficiency…
* Contractual data such as electricity tariffs, feed-in-tariffs, Power Purchase Agreements (PPAs)…

Sample Donated and purchased assets

It can simulate the supply and demand of: * A large power grid (tier 5 as described by the World Bank in its report “Beyond Connections”), * Up to 7 different types of hybrid & conventional mini-grids (tier 4) and renewable energy micro-grids (tier 3), * Any number of stand-alone systems (tier 2) and pico-solar solutions (tier 1). 

This module of Prodegee is ideal for risk evaluation of different investment alternatives in the power sector (debt, grants and equity), technologies (renewable versus conventional) and for setting intermediate prices (feed-in-tariffs and PPAs).

Existing implementations

  • The country regulator in Sierra Leone has used it to evaluate Power Purchase Agreements with Independent Power Producers and define intermediate prices between the government entity in charge of power generation and transmission and the one in charge of distribution and retail (tiers 4 & 5).

  • An NGO in Indonesia used it to define an optimal tariff for supplying pico-solar and small stand-alone solutions to the villages (tiers 1 & 2).

  • In Colombia it was used to analyse the financial viability of an electrification strategy that involved a university in the provision of electricity to over 100 schools and their communities (tiers 1 & 2).

  • In Suriname is was used to decide on whether to install a hybrid mini-grid or one entirely run by solar and calculate the optimal tariff (tier 3).