2 day duration An accurate and flexible financial model is a critical component of a...
Delivering driver-based forecasting for an integrated business
Origin Energy is an integrated energy company with strong history in energy exploration, production, power generation and retailing. Origin’s business unit reporting segments include Integrated Gas and Energy Markets and is listed on the Australian Stock Exchange.
Origin was previously working with using a strategic planning model that was developed prior to a number of significant changes to the business in 2009/10. Over the last few years, Origin’s business had changed in a number of ways, requiring the development of a new corporate model to avoid interim solutions and allow for transparency.
How Mazars supported the client
Origin Energy engaged Mazars to develop a driver based, strategic planning model that calculates the business unit forecasts from first principles / drivers. The model was built to reflect business drivers for the existing operations and possible future transactions. Detailed tax calculations were reflected in the model to aid in the cash flow and franking balance forecast.
The model is used for decision making relating to funding and transactions with a focus on liquidity, metrics, value and earnings accretion. The outputs include management report financial statements, cash flows for valuation, liquidity and metrics summary.