We're now in the main model, and this will be our operating model for Axo for the next number of years.

It's much more aggregated than the segmental tab, and that's because we're going to use a total numbers from the segmental tab and port them into here.

In this video, we'll just do a little tour of the model, talk through the forecasts, talk about some of the things that we predict are going on with Axo, and talk about what this model would be aiming towards through ratios.

So first off, we've got some non-recurring in the past, but we would probably forecast nothing in the future.

Um, there is an argument that restructuring should go in there, but we are capturing it elsewhere. In the segmental reporting.

We've got a number of other forecasts that would be coming from our data provider.

You can see of interest is that the dividends are going to say very static for a while, and that perhaps reflects the rough time that Axo might be experiencing over the next couple of years.

And then some pent up growth when things return to modest growth.

We've got an interesting line here for the wso.

It initially goes and grabs from the historical wassa, and then you can see that this is a kind of moving in line.

So it says if there were to be any issuance, then the WSO would move in line with that issuance.

Now that doesn't matter for this model because we're not predicting anything to happen, but in other models it might be nice to know how that works.

You can see this line down here is a bit of a simplification.

We've got all sorts of things in that line.

Uh, just to simplify the p and LA little bit, make it more manageable.

You can see it's pretty swingy and we've got negative income, which might be a little bit puzzling.

What we might have in there is things that can make a loss, potentially like hedging.

We are not gonna predict those for the same reason that we may not predict things like Forex.

It's too difficult to predict what's gonna happen to Forex over the next five years or so.

And so going forwards, we might base this assessment just on one of the constituents of that line.

Something like equity, affiliate income.

In the balance sheet, you can see that we've got a mixture of absolute forecasts.

So here's an absolute change and days based forecasts for things like working capital, you can see that some of the days based forecasts are broken historically, and that's because certain constituents aren't working yet down in the model.

In this case, the operating expenses.

And you can see that some of the forecasts are based off the data provider and some are just kept steady, presumably through a lack of information.

We're going to depreciate all assets in the business at the same rate, and then we're going to tick debt depreciation and apportion it back into the segments as we discussed earlier.

So this is a starting point for that.

We then have CapEx, which will build up the future of the business, so is a very important line for a capital intensive business such as Axo, and we've got that from our data provider.

And then probably the next most important forecast is the debt repayment and issuance. If we're reasonably Confident that there is going to be an issuance next year, we'd put that in and that would become an important cashflow to lean on.

And then if there is a repayment schedule, we would go and find that, or we'd let our day provider find it for us.

In terms of the structure of the model, you can see that we've got the income statement.

We've then got the balance sheet calculations, which will include a number of bases such as PP and E, starting and ending.

We've got the balance sheet itself, which should always balance.

And then down here we've got the cashflow statement followed by a number of metrics that will help us understand where the business is going and where it's been.

That puts us in a good position to start the overall model, which will do in the next video.