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 Taxes³
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
$13.81
13.42
13.05
12.71
12.37
Terminal Exit Multiple
5.50x
6.75x
$15.83
$17.72
15.39
17.32
14.97
16.87
14.56
16.42
14.18
15.98
2023E
$158.0
(420.4)
($262.4)
420.4
(25.6)
0.4
$132.8
51.0%
$67.7
(4.0)
$63.7
(7.4)
($262.4) $118.4
8.00x
$19.59
19.15
18.71
18.26
17.78
2024E
For the Years Ending December 31,
2026E
2025E
$147.5
(21.7)
$125.8
21.7
(26.1)
15.7
$129.6
51.0%
$66.1
(4.0)
$62.1
9.25x
$21.47
20.97
20.49
20.01
19.55
$117.4
(39.8)
$77.7
(4.6)
$73.1
39.8
(26.7)
8.2
$94.3
51.0%
$48.1
WACC
(4.0)
$44.1
Confidential - Preliminary and Subject to Change
7.5%
8.0%
8.5%
9.0%
9.5%
($ in millions, except per unit amounts,
$109.4
(53.8)
$55.6
(4.1)
$51.5
53.8
(27.3)
0.8
$78.7
51.0%
$40.1
(4.0)
$36.1
2027E
--%
$15.64
14.75
13.94
13.20
12.54
$113.4
(63.2)
$50.2
(3.7)
$46.5
63.2
(27.9)
(9.8)
$71.9
51.0%
$36.7
(4.0)
$32.7
2028E
$99.7
(67.7)
$32.0
(6.3)
$25.7
67.7
(28.6)
(1.0)
$63.8
51.0%
$32.6
(4.0)
$28.6
Exit
Multiple
$46.9
1.0%
$16.97
15.94
14.98
14.11
13.33
6.75x
$316.3
193.9
$414.0
$340.7
$16.87
Perpetuity Growth Rate
0.5%
$16.26
15.32
14.42
13.63
12.92
220.1
(73.2)
20.2
Perpetuity
Growth
1.5%
$17.80
16.64
15.61
14.65
13.80
$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
$375.8
$302.5
$14.98
2.0%
$18.79
17.45
16.31
15.26
14.33
Source: SIRE Financial Projections
2.
1. 51% of Sisecam Wyoming EBITDA less $4.0 million SIRE G&A
2022E tax DD&A assumes 100.0% bonus depreciation calculated as the midpoint of the enterprise value range plus 2022E capital expenditures; 2023E and 2024E tax DD&A assumes 100.0% bonus depreciation on capital
expenditures; bonus depreciation phase-down on growth capital expenditures in 2025E (80.0%) and 2026E (60.0%); cash taxes assum
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
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