Credit Suisse Investment Banking Pitch Book
Illustrative asset manager implied multiples
($ in millions, except per share amounts)
Illustrative analysis at various prices
Premium/(discount) to
Current (4/11/17)
52-week high (8/31/16)
3-month average
Fully diluted shares (¹)
Implied NEWS equity value
Price / TBV
TBV (12/31/16) - Basic
TBV (12/31/16) -Diluted
TBV (6/30/17E)-Basic
TBV (6/30/17E) - Diluted
Price / EPS
CY2017E
CY2018E
Price / Earnings (4)5X(6)
CY2018E
ICY2019E
Source
Note
9
Data
$10.83
11.37
9.85
Illustrative asset manager implied multiples at various prices
Implied NEWS equity value
(-)Unrestricted net cash (6/30/17E)
(-) Net asset value of portfolio loans sold (6/30/17E)
(-) Net asset value of asset manager assets sold (6/30/17E) (3)
Implied asset manager adjusted equity value (4)
Implied asset manager equity value per share (¹)
Data
$629
629
$635
635
$0.78
0.93
$11
18
Current
$10.83
(4.7%)
9.9%
42.902
$465
0.74x
0.74
0.73x
0.73
13.9x
11.6
$465
(194)
(201)
(98)
($28)
($0.66)
NM
NM
Company management, Factset research systems, Company public flings and I/B/E/S consensus estimates (3)
Market data as of 4/11/17. Balance sheet data as of 6/30/17E per NEWS management estimates.
Based on basic shares outstanding of 42.8mm (including restricted stock) plus dilution from in-the-money
options and warrants outstanding assuming treasury stock method.
Based on sale of loan portfolio of $1.597mm as of 6/30/17E at blended sale price of -96% less funding and (5)
non-funding debit per NEWS management estimates, for illustrative purposes.
(6)
$12.00
10.8%
5.5%
21.8%
42.935
$515
0.82x
0.82
0.81x
0.81
15.4x
12.9
$515
(194)
(201)
(98)
$22
$0.52
2.0x
1.2x
Illustrative NewStar price per share
$12.75 $13.50
$14.25
17.7%
12.1%
29.4%
43.076
$549
0.87x
0.87
0.86x
0.87
16.3x
13.7
$549
(194)
(201)
(98)
$56
$1.30
5.0x
3.1x
24.7%
18.7%
37.0%
43.752
$591
0.92x
0.94
0.91x
0.93
17.3x
14.5
$591
(194)
(201)
(98)
$98
$2.23
8.7x
5.4x
31.6%
25.3%
44.6%
44.356
$632
0.97x
1.00
0.96x
1.00
18.3x
15.3
$632
(194)
(201)
(98)
$139
$3.13
12.4x
7.8x
Based on sale of assets of $164mm at blended sale price of -85% less Repo debt and accrued
bonuses of $32mm and $9mm, respectively as of 6/30/17E.
Adjusted to exclude the net asset value of balance sheet loans of the asset manager and the
associated net interest margin as appropriate.
Assumes asset manager is unlevered per NEWS management guidance
Assumes asset manager is not a tax-payer per NEWS management guidance.
$15.00
38.5%
31.9%
52.2%
44.901
$674
1.02x
1.07
1.01x
1.06
19.2x
16.1
$674
(194)
(201)
(98)
$180
$4.02
16.2x
10.1x
Confidential / Draft
12
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