Goldman Sachs Investment Banking Pitch Book
Goldman
Sachs
Illustrative Return of Capital Analysis
Based on 9/21 Base Case Financial Projections
(US$ in millions, except per share amounts)
As a result of the difference between Opal's current P/E multiple and the cost of newly issued debt or the cost of holding cash on the balance
sheet (even factoring for a potential 35 % repatriation tax), Opal could potentially deliver value accretion to shareholders through a debt or cash-
funded one-time share repurchase or cash dividend
One-Time Share Repurchase
Illustrative $2 Billion Leveraged Share Repurchase
Net Debt Proceeds for Repurchase
Repurchase Price (@10% Premium)
% of Current Basic Shares Repurchased
Pro Rata Value per Share
FY2014 Status Quo EPS
FY2014 Pro Forma EPS
% EPS Accretion / Dilution
PRELIMINARY CONFIDENTIAL DRAFT-SUBJECT TO CHANGE AFTER FURTHER DILIGENCE AND REVIEW
INVESTMENT BANKING
DIVISION
Pro Forma Share Price
PF Value of Retained Shares
Pro Rata Value
Cash Post-Repatriation Tax for Repurchase
Repurchase Price ( @ 10 % Premium)
% of Current Basic Shares Repurchased
Pro Rata Value per Share
FY2014 Status Quo EPS
FY2014 Pro Forma EPS
% EPS Accretion / Dilution
Illustrative $2 Billion Cash Financed Share Repurchase
Pro Forma Share Price
PF Value of Retained Shares
Pro Rata Value
Illustrative FY2014 P/E Multiple
5.0 x
6.0 x
$ 10.19
$ 12.23
10.89
$12.03
9.08
$ 10.22
$1,980
$10.41
11.0%
$ 1.14
$1.84
2.04
11.0%
$1,980
$ 10.41
11.0%
$1.14
$1.84
2.06
12.1 %
Illustrative FY2014 P/E Multiple
5.0 x
6.0 x
$ 10.30
9.17
$ 10.31
$ 12.36
11.00
$12.14
One-Time Cash Dividend to Shareholders
Illustrative $2 Billion Dividend Recapitalization
Net Debt Proceeds for Dividend
Basic Shares Outstanding
Dividend per Share
FY2014 Status Quo EPS
FY2014 Pro Forma EPS
% EPS Accretion / Dilution
Pro Forma Share Price
Per Share Dividend
Pro Rata Value
Cash Post-Repatriati
Basic Shares Outstanding
Dividend per Share
Illustrative $2 Billion Cash Financed Dividend
Tax for Dividend
FY2014 Status Quo EPS
FY2014 Pro Forma EPS
% EPS Accretion / Dilution
Pro Forma Share Price
Per Share Dividend
Pro Rata Value
$9.05
1.14
$ 10.19
$1,980
1,735
$ 1.14
Illustrative FY2014 P/E Multiple
5.0 x
6.0 x
$1.84
1.81
(1.5)%
$ 10,86
1.14
$ 12.00
$1,980
1,735
$ 1.14
$1.84
1.83
(0.4)%
Illustrative FY2014 P/E Multiple
6.0 x
5.0 x
$9.15
1.14
$ 10.29
$10.98
1.14
$ 12.12
Source: Management and company reports
Note: Illustrative analysis assumes a 21.0% non-GAAP tax rate, a pre-tax interest rate on cash balances of 0.5%, a 35.0% tax rate on repatriated offshore cash balances
1 Assumes $2.0 billion of new debt issuance via $500 million of T+125 new senior notes due February 2015, $750 million of T+200 new senior notes due February 2017 and $750
million of T+237.5 new senior notes due February 2022. Assumes fees of 1.0% on new issuances and a pro forma credit rating of Baa1/BBB.
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