Pershing Square Activist Presentation Deck
Appendix
Set forth herein is a table which details our sum-of-the-parts valuation.
Note:
(1)
($ in millions)
Segment
McOpCo
Brand McDonald's
Total
Less: FY'05E Net Debt
Less: Minority Interest (Market Value)
Equals: Market Value of Equity
PF FY05E Diluted Shares Outstanding
Valuation Assumptions
Recent Stock Price
Adjusting for a Market
Rent and Franchise Fee
2006E EV/'06E EBITDA Enterprise
EBITDA
Multiple
Value
$1,130
4,464
5,594
7.0x
9.3x
8.9x
Recent Stock Price
$7,908
41,730
$49,638
6,332
$43,306
1,274
$34.00
56
EV/'06E EBITDA
Multiple
Low
7.0x
12.5x
IPO of 20% of McOpCo
and Transparency Drives Revaluation
High
7.0x
13.5x
Implied Share Price
Premium to Unaffected Price
(1)
Final Revised Proposal.ppt
Enterprise
Value
Low
High
$7,908
$7,908
55,799 60,263
$63,707
$68,171
8,065
1,312
$54,331
1,186
$46
45%
8,065
1,312
$58,794
1,186
$50
57%
Assumes $1.25bn of proceeds from IPO and $1.75bn of existing cash on hand used to repurchase shares. Analysis is pro forma for a McOpCo spin-off and McDonald's share
buyback, as proposed, occurring on 12/31/05.
Based on 10/31 closing price of $31.60.View entire presentation