Credit Suisse Investment Banking Pitch Book
Illustrative building blocks of value
■ Management's projected 02'17E TBVPS of $14.83 compares to $11.52 per share of net proceeds from loan sales, tangible
assets at the manager, and unrestricted cash (¹)
■ Over the past year, the public market has implied a negligible value for the asset manager / franchise value: any value received
for asset management platform, control, or potential upside (e.g., value of tax assets) is incremental to current price
$14.83
$10.83.
Current market value
Value on balance sheet
Sale proceeds
Illustrative potential asset
manager valuation
$11.37
Memo:
($ in millions)
Total assets $4,129.8
52-week high Tangible book value as Unrestricted cash
of Q2'17E
Implied asset
valuation
NBV
100.0%
$4.53
$634.8
$4.53
$193.8
100.0%
$193.8
$9.23
$4.70
Net proceeds from
sale of loans to fund
$1,596.8
95.6%
$201.3
$11.52
$2.29
Net proceeds from
investment assets at
manager
$163.9
84.9%
$98.1
Source: Company projections, SNL Financial.
Note: All per share values calculated using 42.8mm basic shares & restricted stock units outstanding per Company projections.
(1) Projected TBVPS calculated using 02 17E equity, excluding goodwill & intangible assets as of 12/31/2016, divided by 42.8mm basic shares outstanding per Company projections.
Franchise value of AM
/ premium for control
/potential upside
Confidential / Draft
7
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