You are working as the CFO for 3D-Wind Corp (aka 3DW), a well-known wind turbine manufacturer. New FAA regulations and new technology breakthroughs require you to carefully prepare the budget for the next 3 years. Below you will find some historical data and some assumption for the future coming from the various business departments at 3DW:

Sales: After lousy post-pandemic years the market is expected to recover heavily and the expected sales in EU, EMEA and USA are 20GW in the USA, 18GW in EU and 12GW in MEAAPAC for the next year (2024), and the sales growth is expected to be 15% for US and EU and 25% for Africa, Middle East, and Asia Pacific the following 2 years. 3DW market share is currently at 2.5%, but the assumption is to grow the market share by 10% every year. The average O&M deal (operation and maintenance) lasts for 15 years, and its Service Level Agreement promises 96% production availability. All materials and labor costs are included except for regulatory changes and customer required customizations or enhancements (R&C revenue stream). Sales are currently 450 million . New WT (wind turbines) O&M are sold for 7% of HW price / year, but only 65% of the HW sales are combined with O&M. The aim is to snag 8% (approx. 20 million yearly) of competitors HW as O&M going forward. The churn rate is 90 million yearly, 20% of the revenue. The revenue level of R&C is approximately 125 million and difficult to predict as are regulatory changes and customers wishes. The sales price per unit is 1,500 per kW in EU and 2000 $ per kW for the rest of the world the first year, and the assumption is that the price increase will be 7% every year. The gross margin for 2023 is 31%. You will have to source information on the USD/EUR FX rate and estimate it for the coming 3 years. Direct Materials, BoM or DM are 45% of Costs of Goods Sold (GoGS), and the current inflation assumption will cause the costs to increase 4% every year. Direct Labor (on payroll and external services) account for 504 million EUR in 2023 (like transportation, cranes & technicians) and MOH is 150% of that. The next years the production labor will increase, since the production of the plant will also be increasing, but the aim is to gain 5% productivity and other efficiencies every year. Investment: the required CapEx for 2024 is 145.000.000, all of it depreciated over 10 years. The following years it can be assumed that 5% of the revenue will be turned is a CapEx and approved by the board. General and administration costs are expected to be 572.000.000 for the first year, 642.000.000 for the second year, and for the following years the cost should increase in line with the sales volume, having a cost increase of 0.5% of sales of the additional sales. The days to collect accounts receivable are 60, the days to pay suppliers are 90. The company will need an inventory of 105 days (about 3 and a half months). There are no FG inventories as the WTs are assembled on site, but spare parts are required to minimize WT downtime. The goal is to reduce the number of days of inventory to 90. The CapEx amount clearly exceeds available cash, and the investments need to be paid upfront and the rest of money needed will have to be raised either from external investors or come from an HQ loan. You should make your own estimate of the amount needed based on monthly collections averaging 270 million and regular cash disbursements are approximately 228 million monthly. Remember that depreciation currently is 96 million of which 58 are in MOH and the rest in SG&A. The tax rate is 25% and the interest rate is 5.8%. You must budget the Profit & loss account for the next 3 years and a balance sheet for the same period. For 2024 a detailed cash budget is required monthly. Interest is paid monthly, income tax in May and the investments will be 28 million in February, 95 million in June and 22 in October.

Assets December 2023 Liabilities December 2023 Assets December 2023 Liabilities December 2023