Mergers and Acquisitions: Royal Dutch Shell and BG-group

A couple of weeks without a post to this blog: I think I have to explain something. Apart for a storm hitting Almere and causing some damage, I also had to spend my time on something else.

Some of you may know that my previous company, including its product VRBI, was transferred to one of my sons. VRBI basically offers a generator able to create 3D scatter-plots (showing balls in their x-, y- and z-position in a cube). My son graduated on the subject recently, working on his own company with VRBI very seriously. However, his problem was that VRBI was “invented” to solve problems I noticed and as a result I am the one able to come up with all kinds of applications. He was trying to convert numbers from a report into graphs, but it turned out the authors had provided two-dimensional information only, because they had to present 2-D graphs (they should have used VRBI in the first place of course). As a result hardly any usable information was left.

So he asked me to provide some real 3-D examples and of course this meant I had to look for data-sets with x, y and z-values. I found some interesting examples and created graphs (one even as 4D, with the size of the balls, being determined by the fourth value. Working on those graphs, I encountered a problem existing for years: some data need to be shifted and ask for a threshold-value like in Excel. I couldn’t stand it any more and added the functionality, but it took some time. If you are interested in VRBI, please have a look at scientassist.com or vrbi.eu (same site). For once I present a VRBI-graph instead of an AnRep3D example.

3D-graph of stock-funds

 

 

 

 

 

 

 

 

 

 

 

 

 

Beware! This is not an AnRep3D graph, although the principle is the same.  Double click the screenshot to open the real 3D-graph first and manipulate its position:

Clicking the right mouse-button, moving the mouse up and down will zoom the graph in and out. Clicking left and moving the mouse will tilt the graph in different directions (or move the observer’s viewpoint around a fixed graph – it’s relative of course). Double clicking in the graph translates it and moves the centre at the same time. As a result the way the graph tilts will change. Just try it. If you don’t know how to get the normal position back, just refresh the graph.

The previous text wasn’t AnRep3D at all of course, so now it’s time to go on with examples of the power of the AnRep3D generator.

Last time, I discussed the possibility to visualise mergers and acquisitions. More illustrations are necessary and that’s why I colleded a couple of examples. Wikipedia provides some, but then not all mergers or acquisitions are completed yet (Bayer Monsanto is still going on, as is AT&T Time Warner at this moment). Even if they were completed, this doesn’t mean a consolidated Annual Report is available yet. E.g. Anheuser-Busch InBev acquired SAB Miller, but this was completed at the end of 2016, which means the 2017 annual report will show the consolidated results. This annual report will be available shortly, probably next month, but not right now!

That’s why I had to look at more historical events. Useful examples are Heinz taking over Kraft, Dell acquiring EMC corporation and Royal Dutch Shell acquiring BG-Group. The latter completed at the start of February 2016 and therefore the 2016 Annual Report shows the consolidated numbers of the combination (although the BG-part was left out for January, but the statement says it’s not substantial). Let’s start with this one, which I watched closely as I worked with Shell at the time. This means only I’m very interested – my numbers will be taken from the Annual Reports only. Be aware: don’t draw conclusions using this blog as I am merely illustrating the power of AnRep3D, without giving any guidance on numbers. So please have a look at the annual reports yourself if you want to know more. The links used are:

2016 RD Shell http://reports.shell.com/annual-report/2016/servicepages/disclaimer.php Provides access to P&L and Balance sheet
2015 RD Shell http://reports.shell.com/annual-report/2015/servicepages/disclaimer.php Provides access to P&L and Balance sheet
BG group 2015 https://www.shell.com/investors/financial-reporting/pre-combination-bg-group-publications/_jcr_content/par/textimage.stream/1465198077682/f7a5adacb4a76d474248cbe47d20afebdf0f1ce1c82fd5c7ff7d0620350b88cf/bg-group-2015-annual-report.pdf Shows the complete pdf
BG group 2014 https://www.shell.com/investors/financial-reporting/pre-combination-bg-group-publications/_jcr_content/par/textimage.stream/1455269757014/cfa2bef64c5007c2b28848b8cb39e736b1daa45875781366f9378dc29b74ec6d/bg-group-2014-annual-report.pdf Shows the complete pdf

The table I distilled from those sources is shown below.

Table with Annual Report values Shell BG

The 2016-line provides consolidated data for the combination, but it is interesting to just sum the values for previous years. Of course the acquisition had to be paid for and money went out to the shareholders. As a result 2016 is not a simple addition. Then this was also the period in which the oil-price collapsed, so a very complex situation. Looking at the graph without any knowledge won’t help, but understanding the market the graph will be interesting.

It will be the next blog where the derived 3D-graph can be obtained. For now it’s only the raw set of input-values. Until then: please try and use the free demo-generator to generate a “building” for one company in one year (or a series of graphs, as the demo only accepts on company/year combination, but the number of graphs to be created is unlimited. The demo-generator is free and apart from the volume restriction, it’s fully functional! For more information visit our website: https://anrep3d.com or read some of the other posts at this blog-site.

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About AnRep3D

AnRep3D is the new company, founded after the handover of Scientassist (together with VRBI) to one of my sons. From now I will focus on three-dimensional graphs for the financial markets, showing the main figures from annual reports in comparison.
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