Bank of America Investment Banking Pitch Book
Appendix
Preliminary Discounted Cash Flow Analysis
Pioneer Sensitivity Case - Perpetuity Growth Rate Method
Revenue
32
% Growth
EBITDA
% Margin
Less: Depreciation & Amortization
EBIT
% Margin
Less: Income Taxes
Tax-effected EBIT
Plus: Depreciation & Amortization
Less: Capex, Net
Less: Change in Working Capital
Unlevered FCF
% Growth
Discount
Rate
7.5%
8.5%
9.5%
Discount
Rate
7.5%
8.5%
9.5%
Discounted
Cash Flows
'15E-'18E
$100
98
96
Net
Debt
($196)
(196)
(196)
F
2015E
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2.50%
$804
650
540
$887
18.8%
$83
9.3%
(41)
$21.05
16
13.39
$41
4.6%
(16)
$25
41
(30)
Fiscal Year Ending June 30,
2016E
2017E
$1,166
6.0%
$122
10.5%
$28
$1,101
24.2%
$113
10.3%
$848
679
561
(42)
(53)
(23)
$9
(69.5%)
PV of Terminal Value (2) at a
Perpetual Growth Rate of
2.75%
3.00%
$72
6.5%
(29)
$43
42
$897
711
584
Equity Value per Share at a
Perpetual Growth Rate of
2.50% 2.75% 3.00%
$22.30 $23.68
17.
18.37
14.01
14.68
(40)
$82
7.0%
(33)
$49
40
ā
(41)
(9)
$39
348.6%
2018E
$1,202
3.0%
$126
10.5%
2.50%
(40)
$904
748
636
586
7.2%
(34)
9.2x
7.7
6.6
552
40
(45)
10.7%
$43
Normalized
Year
$1,081
$948
777
658
$116
10.8%
Enterprise Value at a
Perpetual Growth Rate of
2.75%
3.00%
(27)
Foo
$90
8.3%
(36)
54
27
(27)
(4)
$50
Implied EBITDA Multiple at a
3.00%
Perpetual Growth Rate of
2.50% 2.75%
9.7x
8.0
6.9
Source: Pioneer Sensitivity Case as of April 9, 2014. 2014E figures updated to reflect revised management forecast as of August 1, 2014.
Note: Dollars in millions. Assumes valuation as of June 30, 2014, mid-year discounting methodology, 40% tax rate and net debt as of June 30, 2014 par ravised management estimates as of July 29, 2014.
Normalized Year copax is comprised of $25 million for fast maintenance and $1.5 million for IT/financial systems and other items. Depreciation is assumed to equal copex in the Normalized for Excludes
Opportunity 7 project revenue and EBITDA
Includes present value of 2019 tox-affected defarred compensation payment of $2.7 million, assuming a 40% tax rate and the release of $13 million of working capital of Opportunity 7.
$997
810
680
10.2x
8.4
7.1
Bank of America
Merrill LynchView entire presentation