LS STEP 0 Lecturer’s Script

WELCOME

Wstaję, z pamięci:

Good afternoon, everyone. Welcome to our next economic analysis workshop.

I would also like     to warmly welcome       Professor Małgorzata Porada-Rochoń,      who is joining us today       as part of a class observation. Why? Because  under our university's regulations,    every lecturer is required to undergo a teaching evaluation once per academic year. 

So This time, it’s my turn!    But Please       don't be stressed by the Professor's presence.    And that goes for me too— I'll do my best      not to be too much stressed.

STEP 0: Recap of Module 3 

(15-20 minutes: Welcome + Review 5 min, Presentations 10 - 15 min)

We’re going to start     with a short recap of the Module 3   from our last week.

Last time, you formed groups to analyze the financial reports of five companies. I chose for you five very different companies. They show us        different business models       that you may see in your future careers.

These five companies are:

the first is CD PROJEKT – a leading video game creator.

Then we have ORLEN – the largest energy company in Central and Eastern Europe. But sadly we din'nt manage to create a group. We simply did not have enough people.

Next company is Jerónimo Martins – a large retail group from Portugal that owns polish retail network Biedronka.

As next we have Amazon – everyone knows who they are.

And finally Puig – a luxury beauty group from Spain. They own famous brands       like Paco Rabanne, Carolina Herrera, and also for exemple Jean Paul Gaultier.

By chance,    most of our Spanish students chose Puig. Polish students chose CD PROJEKT, and Portuguese students chose Jerónimo Martins. What a nice coincidence! SMILE

Your first task during our last meeting  was to prepare a short presentation about your choosen company.        We also picked team leaders. And Their job was to work together with other groups        and to make sure      all presentations look similar      and use the same format.

Last time, we saw the first presentation about CD PROJEKT. We still have three more groups to go. 

I would like to suggest,       that because we do have    a lot of stuff for today,  let’s watch just only one presentation. We have up to 10 minutes for this. 

Idę do strony amazon

We already have the Amazon presentation uploaded.              If you have some presentations to uploade, please do it now.     What about Jeronimo Martins and Puig?

I think we can start t with Amazon right now and we will save the other two presentations for our next meetings. 

So please the Amazon group let's start.

AMAZON PRESENTATION otwieram dla studentów ich prezentację

(After the presentation)

Thank you very much. That was a great presentation. You included all the key facts. The slides looked great, and you almost finished on time! Once again, thank you very much!

Before we start with our Module 4, let’s quickly remember what we did in Module 3 last time. Beamer Module 4 Recap link

First of all, we looked at the left side of the Balance Sheet—the Assets. What should you remember?

Here is the main takeaway for each company:

First company CD PROJEKT: A game studio has no factories, yet 62% of its assets are long-term. Under the accounting standards, programmer salaries and other expenditures for future games         (such as The Witcher 4, Cyberpunk 2)         are saved on the Balance Sheet as Development Projects. Thats why long-term assets.

Second company is ORLEN (you did'nt have this group but I would like you to remenber for the future): This is a classic      heavy industrial       Balance Sheet,      with 70% long-term assets.    Physical refineries,     pipelines, power grids,    and fuel stations       make up 54% of everything ORLEN owns.

Biedronka or Jerónimo Martins: Biedronka rents!    most of its 6,500+ stores,    yet it still shows 67% long-term assets.      That is because accounting standards require long-term rental contracts           to be put directly on the Balance Sheet as Right-of-Use assets.

Amazon: When reading a US GAAP Balance Sheet, watch out for two things.            First,    it is printed upside-down,    starting at the top with Cash.            Second,       there is no subtotal for long-term assets—          you have to calculate it yourself       to see that 72% of Amazon's assets are long-term,  led by AI data centers     and warehouses.

Puig: Puig owns only 7 factories (less than 6% of its assets),  yet 70% of its Balance Sheet is long-term.     That is because Puig grew    by buying famous luxury brands like Paco Rabanne. The billions paid for those brands      sit on the Balance Sheet as Goodwill and Intangibles.

And now      what we have to do for today?

Today, we move from the left side of the Balance Sheet to the right side.

First, we will do a short theory review for 10 minutes. Then, we will work in groups for 15 minutes.