Evercore Investment Banking Pitch Book
Financial Projections and Preliminary Valuation Detail - Sensitivity Case
Discounted Cash Flow Analysis - Sensitivity Case
Sisecam Wyoming EBITDA
Less: Tax Depreciation and Amortization²
EBIT
Less: Cash Taxes³
EBIAT
Plus: Tax Depreciation and Amortization
Less: Capital Expenditures
Less: Changes in NWC
Sisecam Wyoming Unlevered Free Cash Flow
SIRE Interest in Sisecam Wyoming
SIRE Share of Sisecam Wyoming Unlevered Free Cash Flow
Less: SIRE G&A
SIRE Unlevered Free Cash Flow
EBITDA Multiple / Perpetuity Growth Rate
Implied Terminal Value
Present Value of Terminal Value @ 8.5% Discount Rate
Plus: Present Value of Unlevered Free Cash Flow @ 8.5% Discount Rate
Implied Enterprise Value
Less: Net Debt as of December 31, 2022 (SIRE's 51% Share)
Implied Equity Value
SIRE LP Units Outstanding
Implied SIRE LP Unit Value
Unit Price
Sensitivity
Analysis
WACC
7.5%
8.0%
8.5%
9.0%
9.5%
4.25x
$22.55
21.96
21.40
20.87
20.36
Terminal Exit Multiple
5.50x
6.75x
$25.57
$28.44
24.89
27.82
24.25
27.10
23.64
26.41
23.06
25.75
2023 E
$179.8
(608.4)
($428.6)
($428.6)
608.4
(25.6)
0.4
$154.6
51.0%
$78.8
(4.0)
$74.8
8.00x
$31.27
30.59
29.92
29.17
28.44
For the Years Ending December 31,
2025E
2026E
2024E
$186.2
(58.0)
$128.2
(7.6)
$120.6
58.0
(26.1)
15.7
$168.2
51.0%
$85.8
(4.0)
$81.8
9.25x
$34.11
33.34
32.60
31.88
31.12
$169.4
(51.4)
$117.9
(7.0)
$111.0
WACC
51.4
(26.7)
8.2
$143.9
51.0%
$73.4
(4.0)
$69.4
($ in millions, except per unit amounts
ts)
7.5%
8.0%
8.5%
9.0%
9.5%
$171.4
(48.9)
$122.5
(9.1)
$113.4
48.9
(27.3)
0.8
$135.8
51.0%
$69.2
(4.0)
$65.2
--%
$27.61
26.01
24.60
23.34
22.21
2027 E
$149.6
(47.1)
$102.5
(7.6)
$94.9
47.1
(27.9)
(9.8)
$104.3
51.0%
$53.2
(4.0)
$49.2
2028E
$146.4
(50.5)
$95.9
(16.3)
$79.6
50.5
(28.6)
(1.0)
$100.5
51.0%
$51.2
(4.0)
$47.2
Perpetuity Growth Rate
0.5%
$28.73
27.02
25.47
24.10
22.87
1.0%
$30.01
28.18
26.46
24.95
23.61
Exit
Multiple
$70.6¹
6.8x
$476.8
292.3
$606.3
$547.3
$27.10
314.0
(59.0)
20.2
Perpetuity
Growth
1.5%
$31.51
29.45
27.58
25.91
24.44
$146.4
(28.6)
$117.8
(43.6)
$74.2
28.6
(28.6)
$74.2
51.0%
$37.8
(4.0)
$33.8
1.0%
$455.8
279.4
$593.4
$534.4
$26.46
2.0%
$33.28
30.91
28.88
27.01
25.38
Source: SIRE Financial Projections
1. 51% of Sisecam Wyoming EBITDA less $4.0 million SIRE G&A
2. 2023E tax DD&A assumes 100.0% bonus depreciation calculated as the midpoint of the enterprise value range plus 80.0% bonus depreciation on 2023E capital expenditures; bonus depreciation phase-down on capital
expenditures in 2024E (60.0%), 2025E (40.0%) and 2026E (20.0%)
3. Assumes unitholder tax rate of 29.6% from 2023E to 2025E and 37.0% thereafter
4.
Includes 2.0% general partner interest, economically equivalent to 399,000 LP Units at current quarterly distribution
EVERCORE
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