Goldman Sachs Investment Banking Pitch Book
Goldman
Sachs
CY 1 P/E/G
Opal
HP
WholeCo
EUC
Enterprise
Services
Software
S&P
→ Illustrative Status Quo Financial Analysis
Based on 9/21 Case Financial Projections
(US$ in millions, except per share amounts)
PRELIMINARY CONFIDENTIAL DRAFT-SUBJECT TO CHANGE AFTER FURTHER DILIGENCE AND REVIEW
INVESTMENT BANKING
DIVISION
Diluted EPS (Non-GAAP)
Opal FY 1 P/E
Current (IBES FY 2013) 5.4 x % Annual Growth
1Yr. Avg
7.1
% CAGR from FY2013 EPS
2Yr. Avg
8.1
■ Peer PEG multiples based on IBES estimates would suggest that the EPS growth profile suggested by the 9/21 Case
financial projections would result in Opal forward P/E multiples significantly higher than current
3.7 x
1.2
Illustrative Present Value of Future Share Price Analysis
Assuming Opal continues to trade at a forward P/E multiple consistent with today's multiple, an illustrative present value
of future share price analysis would imply share price values in the high single-digits to low-teens
1.4
0.7
1.4
1.5
1.3
0.9
FY2013
$ 1.70
Illustrative PV of Future Share Price
@ a 5.0x Forward P/E Multiple and Illustrative 10.0% Discount Rate
@ a 5.0x Forward P/E Multiple and Illustrative 13.0% Discount Rate
@ a 7.0x Forward P/E Multiple and Illustrative 10.0% Discount Rate
@ a 7.0x Forward P/E Multiple and Illustrative 13.0% Discount Rate
@ a 9.0x Forward P/E Multiple and Illustrative 10.0% Discount Rate
@ a 9.0x Forward P/E Multiple and Illustrative 13.0% Discount Rate
'Opal EPS CAGR based on January fiscal year end IBES estimates
2 HP EPS CAGR based on October fiscal year end IBES estimates.
FY2014
$ 1.84
8.2%
8.2 %
$ 9.19
$ 9.19
$ 12.86
12.86
$16.53
16.53
FY2015
$ 2.20
19.6 %
13.7%
$9.99
$9.73
$ 13.99
13.62
$ 17.98
17.51
FY2016
$ 2.45
11.4%
12.9 %
$ 10.11
$ 9.58
$ 14.15
13.41
$ 18.19
17.24
FY2017
$ 2.56
4.5%
10.8%
$ 9.61
$ 8.86
$ 13.45
12.40
$ 17.29
15.95
FY2018
$ 2.64
3.1%
9.2 %
$ 9.03
$ 8.11
$ 12.64
11.35
$ 16.26
14.60
Source: Management, company reports, Bloomberg and IBES
Note: The illustrative future share price analysis discounts future share prices to 2013 fiscal year end. CY1 P/E/G multiples calculated based on CY2012-CY2014 IBES EPS CAGRS,
unless otherwise noted.View entire presentation