Evercore Investment Banking Pitch Book
Preliminary Valuation Detail - SIRE Financial Projections
Discounted Cash Flow Analysis
Sisecam Wyoming EBITDA
Less: Tax Depreciation and Amortization²
EBIT
Less: Cash Taxes
EBIAT
Plus: Tax Depreciation and Amortization
Less: Capital Expenditures
Less: Changes in NWC
Sisecam Wyoming Unlevered Free Cash Flow
SIRE Interest in Sisecam Wyoming
SIRE Share of Sisecam Wyoming Unlevered Free Cash Flow
Less: SIRE G&A
SIRE Unlevered Free Cash Flow
EBITDA Multiple / Perpetuity Growth Rate
Implied Terminal Value
Present Value of Terminal Value @ 8.5% Discount Rate
Plus: Present Value of Unlevered Free Cash Flow @ 8.5% Discount Rate
Implied Enterprise Value
Less: Net Debt as of December 31, 2022 (SIRE'S 51% Share)
Implied Equity Value
SIRE LP Units Outstanding*
Implied SIRE LP Unit Value
Unit Price
Sensitivity
Analysis
WACC
7.5%
8.0%
8.5%
9.0%
9.5%
4.25x
$14.31
13.93
13.58
13.24
12.92
Terminal Exit Multiple
5.50x
6.75x
$16.31
$18.31
15.89
17.83
15.48
17.37
16.93
16.50
15.09
14.71
2023 E
$158.0
(413.9)
($255.8)
($255.8)
413.9
(25.6)
0.4
$132.8
51.0%
$67.7
(4.0)
$63.7
8.00x
$20.26
19.77
19.26
18.76
18.29
For the Years Ending December 31,
2025E
2026E
2024E
$147.5
(52.9)
$94.5
(5.6)
$89.0
52.9
(26.1)
15.7
$131.4
51.0%
$67.0
(4.0)
$63.0
9.25x
$22.14
21.64
21.14
20.60
20.07
$117.4
(45.0)
$72.4
(4.3)
$68.1
45.0
(26.7)
8.2
$94.6
51.0%
$48.2
WACC
(4.0)
$44.2
($ in millions, except per unit amounts,
Perpetuity
Growth
7.5%
8.0%
8.5%
9.0%
9.5%
$109.4
(41.2)
$68.2
(5.0)
$63.1
41.2
(27.3)
0.8
$77.8
51.0%
$39.7
(4.0)
$35.7
2027E
--%
$16.15
15.24
14.44
13.72
13.07
$113.4
(39.5)
$73.8
(5.5)
$68.4
39.5
(27.9)
(9.8)
$70.1
51.0%
$35.8
(4.0)
$31.8
2028E
$99.7
(39.9)
$59.8
(18.9)
$40.9
39.9
(28.6)
(1.0)
$51.2
51.0%
$26.1
(4.0)
$22.1
Perpetuity Growth Rate
0.5%
$16.81
15.81
14.93
14.15
13.44
1.0%
$17.57
16.45
Exit
Multiple
$46.9¹
15.48
14.62
13.86
6.8x
$316.3
193.9
$409.8
$350.8
$17.37
216.0
(59.0)
20.2
1.5%
$18.46
17.19
16.11
15.16
14.32
$99.7
(28.6)
$71.1
(26.3)
$44.8
28.6
(28.6)
$44.8
51.0%
$22.9
(4.0)
$18.9
1.0%
$254.0
155.7
$371.6
$312.6
$15.48
2.0%
$19.46
18.06
16.83
15.77
14.85
Source: SIRE Financial Projections
1. 51% of Sisecam Wyoming EBITDA less $4.0 million SIRE G&A
2. 2023E tax DD&A assumes 100.0% bonus depreciation calculated as the midpoint of the enterprise value range plus 80.0% bonus depreciation on 2023E capital expenditures; bonus depreciation phase-down on capital
expenditures in 2024E (60.0%), 2025E (40.0%) and 2026E (20.0%)
3. Assumes unitholder tax rate of 29.6% from 2023E to 2025E and 37.0% thereafter
4.
Includes 2.0% general partner interest, economically equivalent to 399,000 LP Units at current quarterly distribution
EVERCORE
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