PJT Partners Investment Banking Pitch Book
Potential Operating and Financial Cost Savings Summary
We have relied upon the views of Lunar and Solar Management regarding the financial and operating
cost savings. The cost to achieve these savings is expected to be $25mm over two years ($5mm in
FY2017 and $20mm in FY2018, respectively).
(US$ mm)
Type
Operating Savings
G&A Savings
Production Efficiencies / Savings
Packaged Media Savings/ Marketing
Efficiencies
Savings on Benefits Related to Scale
Shared Services/ Public Company Cost
Savings
Other
Total Potential Operating Savings
Financial Savings
Incremental Financial Savings
Utilization of Existing NOLS
(1)
NPV of Operating Savings of $510mm
NPV of Financial Savings of $1,103mm(¹)
Run-Rate
Savings
[*]
[*]
[*]
[*]
[*]
$52.3
$60.5
Varies
Commentary
Confidential
> Includes reductions in staffing/professional fees/rent/T&E
> Savings equal to [*]% of wholly owned original programming budgets
> Migration to LGF vendor deals on existing distribution company product flow
> Enhanced media buying/creative services rates due to combined company volume
Elimination of public company costs
Includes savings associated with infrastructure & administration, OTT platforms, scale
driven vendor discounts, etc.
Note: Savings estimates provided by Lunar Management and based on Lunar Management's diligence to date.
(1) Refer to page 39 for further details.
PJT Partners
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