Credit Suisse Investment Banking Pitch Book
CREDIT SUISSE DOES NOT PROVIDE ANY TAX ADVICE | MATERIALS ARE PRELIMINARY AND SUBJECT TO FURTHER CHANGE AND DEVELOPMENTS (WHICH MAY BE MATERIAL)
Hypothetical Osprey standalone financial summary sensitivity
FY'17E-FY'20E per Osprey management as of November 2017
Fiscal year ending 12/31
2017E
2018E
2019E
($ in millions)
Adjusted net income
GAAP earnings before tax
Adjusted effective tax rate
I(-) Adjusted tax provision
(-) Hypothetical net deferred tax asset write-off
Adjusted net income
Current Osprey management net income
Implied variance in Osprey net income
Adjusted book value roll forward
Adjusted book value (Beginning balance)
(+) Osprey management change in book value
(+/-) Variance in Osprey net income excl. net DTA write-off
(-) Hypothetical net deferred tax asset write-off
(-) Implied incremental dividends (50% payout ratio)
Adjusted book value (Ending balance)
Current Osprey management book value
Implied variance in Osprey book value
Return on average equity ("ROAE")
Adjusted average equity (year-end average)
Adjusted after-tax ROAE
Current Osprey management after-tax ROAE
Implied variance in Osprey after-tax ROAE
$28
41.3%
(11)
Source: Osprey management.
Note: Credit Suisse does not provide any tax advice.
(1)
$16
16
$651
$49
51.9%)
(15)
(11)
$24
29
($5)
$651
(21)
5
(11)
$625
630
($5)
$638
3.7%
4.5%
(82)bps
"GAAP denotes Generally Accepted Accounting Principles and "DTA" denotes Deferred Tax Assets.
Estimated advisor fees do not include advisor fees contingent upon consummation of GSO/First Eagle transaction.
Includes hypothetical net deferred tax asset write-off as a permanent difference between GAAP book income and taxable income.
$53
30.0%
(16)
$37
31
$6
$625
31
6
$659
661
($2)
$642
5.7%
4.8%
93bps
2020E
$69
30.0%
(21)
Calculated based on adjusted GAAP earnings before tax multiplied by Osprey hypothetical marginal corporate tax rate of -30%
$48
41
$8
$659
41
8
$703
702
$1
$681
7.1%
6.0%
112bps
Confidential
12
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