Goldman Sachs Investment Banking Pitch Book
Goldman
Sachs
e Illustrative Spin-Off Analysis
Overview of Preliminary Assumptions
(US$ in millions)
Summary Overview of Assumptions and Methodology
For the purposes of performing a preliminary and illustrative analysis to examine a separation of Opal into a "Client" business and an
"Enterprise" business, as described on the prior page, we prepared illustrative financial projections for each entity based on the 9/21 Case
financial projections and management guidance regarding high-level separation assumptions
PRELIMINARY CONFIDENTIAL DRAFT-SUBJECT TO CHANGE AFTER FURTHER DILIGENCE AND REVIEW
INVESTMENT BANKING
DIVISION
Further diligence would be required to refine the analyses
The illustrative financial projections below also incorporate operating dissynergies related to sourcing and corporate and public company costs.
Additional transaction-related dissynergies are incorporated into the analyses in the subsequent pages, including tax on repatriation of offshore
cash and other one-time separation transaction-related costs
Revenue
EUC
% Growth
S&P
% Growth
Services
% Growth
Revenue
% Growth
EBIT
EUC
Illustrative Client Financial Summary
% Margin
S&P
% Margin
Services
% Margin
EBIT (Non-GAAP)
% Margin
EBITDA (Pre-GAAP Adj.)
% Margin
FY2013 FY2014 FY2015 FY2016 FY2017 FY2018
$ 28,655 $28,915 $30,096 $ 31,299 $31,612 $31,929
(13.81%
0.9%
40%
1.0%
1.0%
6,906
7,044
7,473
7,510
7,548
(9.99%
20%
3.0 %
05%
05%
724
823
739
66.8%
66 8%
$36.301 $36,683
(122)% 1.1 %
785
5.7%
$39.557
38 %
803
24% 2.4%
$39.926 $ 40,299
0.9 % 09%
$924
32%
602
8.7%
441
59.6 %
$1,632
45%
$2,011
55%
$725
2.5%
90%
419
57.9 %
$1,441
39%
$ 1,809
4.1%
7,255
30%
742
0.4%
$38,093
38 %
$ 743
25%
625
86%
429
57.8%
$ 1,466
3.8%
$1,828
4.8%
$705
2.3%
$638
20%
560
600
8.0%
7.5%
450
457
57.3 %
56.9%
$1,427 $1,330
36% 3.3%
$1,784 $1,682
4.5% 42%
$ 638
20%
500
66%
464
56.4%
$1,280
32%
$1,628
4.0%
Illustrative Enterprise Financial Summary
Revenue
Enterprise Solutions
% Grow
Services
% Growth
S&P
% Growth
Software
Growth
Revenue
% Growth
EBIT
Enterprise Solutions
% Margin
Services
% Margin
S&P
% Margin
Software
%Margin
EBIT (Non-GAAP
% Margin
EBITOA (Pre-GAAP Ad
%Margin
FY2013 FY2014 FY2015 FY2016 FY2017 FY2018
$10,559 $11,392 $12,298 $13,278 $13,832 $14,425
28% 79% 80% 80% 42% 43%
7,771
8,139
8,613
9.203
9,500
9,947
(1.4/% 4.7% 5.8% 7.5% 3.6 % 3.7%
2,302 2,348 2,418 2,491 2,503 2,516
20%
NM
30%
30% 05%
0.5%
557 1,371 1,809 1,979 2,162 2,375
NM 146.3% 31.9% 24% 92% 9.9%
$21.189 $23,250 $25,139 $27,010 $28.093 $29.263
23% 97%
42%
81% 74% 40%
$ 850
64%
2,551
27.5%
150
$326
$550
31% 48%
151
$685
56%
1,977 2,110 2,306
254 % 25.9% 26.8 %
158
156
67% 65%
(23) 290
350
NM
160%
177% 105%
$ 1,996 $ 2,605 $3,095 $3,295
75%
85% 10.4%
11.3% 11.7%
$1,800 $2,199 $2,844 $ 3,308 $3,542
8.5%
11.3% 122%
2643
27.5%
140
58%
400
85%
(50)
NM
$ 1,567
$950
69%
$ 990
6.9%
2.735
27.5%
125
50%
430
181%
$3,439
11.8%
$3,691
12.5%
Source: Management and company reports
Includes allocated Long-Term Incentive expenses and other cost adjustments and excludes non-GAAP adjustments.
2 Includes an additional estimated $100 million of annual pre-tax operating expenses related to assumed duplication of certain corporate and public company costs, based on
management guidance.
³ Includes $580 million of annual pre-tax sourcing dissynergies associated with an illustrative separation, per management estimates.
13View entire presentation