LionTree Investment Banking Pitch Book
Side-by-Side Trading Analysis
(Suwn, unless indicated)
Class A Price ($)¹
Fully Diluted Class A Shares
Class B Price ($)¹
Fully Diluted Class B Shares
Blended Price ($)
Fully Diluted Shares
Equity Value
Plus: Net Debt & Other¹
Enterprise Value
Less: Value of Tax Attributes²
Adj. Enterprise Value
EV/
CY 2016EEBITDA- Management Case
CY 2017E EBITDA - Management Case
CY 2016E EBITDA- Research Case³
CY 2017E EBITDA- Research Case
Leverage
Net Debt/2016E EBITDA*
'16E-'18E CAGRs
Revenue
EBITDA
Analyst Price Targets
High
Average
Premium to Curent Price
Low
Saturn
Metric
($mm)
490
543
466
521
Draft Working Materials - Subject to Change
$26.01
93.5
$25.94
9.9
$26.00
103.4
2,687
1,096
3,783
3,783
Mult
7.7x
7.0x
8.1x
7.3x
2.3x
4.8%
11.8%
$35.38
$30.85
15.7%
$22.57
Metric
($mm)
174
213
Luna
Gross
Mult
20.1x
16.4x
$21.25
153.0
3,250
245
3,495
(769)
2,726
Adjusted
Mult
15.7x
12.8x
3.3x
12.4%
27.2%
$40.00
$28.75
26.1%
$22.00
Source: Saturn management projections as of June 2016, public company filings, Wall Street research
Note: prices as of June 13, 2016
1) For Luna, equity in affiliates assumes Epix valued at 10.0x multiple based on assumed 2016E EBITDA of $104mm, implying a $322mm value for Luna's 31% stake; assumes TVGN
valued at cost of $125mm; Defy Media / Celestial Tiger stakes valued at $65mm; Saturn stake based on market prices
2) Includes net present value of difference between Luna actual tax rate given Canadian incorporation vs. peer normalized tax rate, incorporating value of existing NOLS
3) JCM has 0.1mm shares of Class A Saturn stock and 6.2mm shares of Class B Saturn stock for a total voting stake of 33.1%, economic stake of 6.1% and a value of $164mm; JCM has
4.4mm shares of Luna common stock for a total voting stake of 2.9%, economic stake of 2.9% and a value of $94mm
32
LionTree 4) Luna has 2.1mm shares of Class A Saturn stock and 2.6mm shares of Class B Saturn stock for a total voting stake of 15.0%, economic stake of 4.6% and a value of $122mm
5) EBITDA shown pre stock based compensation
6) For Luna leverage purposes, EBITDA includes equity income from affiliatesView entire presentation