Evercore Investment Banking Pitch Book slide image

Evercore Investment Banking Pitch Book

Sensitivity Case #2 - Illustrative Unit 8 Expansion Economics 2 Illustrative Unit 8 Expansion Economics Evercore analyzed the illustrative returns of the Unit 8 Expansion Assumptions are consistent with the Sensitivity Case #2 Unit 8 growth capital expenditures ranging from $504.2 million to $835.0 million, spent evenly throughout 2023E and 2024E 1.0 million metric tons of new soda ash production capacity coming online January 1, 2025 Terminal Value assumes a 6.75x EBITDA multiple Initial Investment SIRE's Share of Initial Investment (51%) Incremental EBITDA SIRE's Share of Incremental EBITDA (51%) Incremental Unlevered Free Cash Flow SIRE's Share of Incremental Unlevered Free Cash Flow (51%) EBITDA Multiple Implied Terminal Value Total Unlevered Free Cash Flow to SIRE from Unit 8 Expansion IRR Discount Rate 10.0% 11.0% 12.0% 13.0% 14.0% 15.0% EVERCORE Unit 8 Expansion Internal Rate of Return Implied Unit 8 NPV Unit 8 Growth Capital Expenditures $600.0 ($12.9) (22.1) (30.7) (38.8) (46.3) (53.3) $504.2 $31.6 22.0 13.0 4.5 (3.4) (10.8) $700.0 ($59.3) (68.1) (76.3) (84.0) (91.1) (97.8) 13.5% $835.0 ($121.9) (130.2) (137.9) (145.0) (151.7) (157.8) 2023E 2024E ($252.1) ($252.1) (128.6) (128.6) ($252.1) (128.6) ($128.6) 36 Discount Rate Confidential - Preliminary and Subject to Change For the Years Ending December 31, 2025E 2026E ($242.0) (123.4) ($123.4) ($ in millions, except per unit amounts, 10.0% 11.0% 12.0% 13.0% 14.0% 15.0% $80.6 41.1 $87.2 44.5 $44.5 $-- $504.2 $1.56 1.09 0.64 0.22 (0.17) (0.53) $78.6 40.1 $85.5 43.6 $43.6 2027E $-- -- $74.9 38.2 $82.0 41.8 $41.8 2028E $-- $73.8 37.6 $80.3 41.0 $41.0 Impact to Implied SIRE Common Unit Value Unit 8 Growth Capital Expenditures $600.0 ($0.64) (1.09) (1.52) (1.92) (2.29) (2.64) Exit Multiple $700.0 ($2.94) (3.37) (3.78) (4.16) (4.51) (4.84) $37.6 6.75x $254.0 $254.0 $835.0 ($6.04) (6.45) (6.83) (7.18) (7.51) (7.81) ŞİŞECAM
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