Evercore Investment Banking Pitch Book
Confidential - Preliminary and Subject to Change
Financial Projections and Preliminary Valuation Detail - Sensitivity Case #3
($ in millions, except per unit amounts,
Perpetuity
Exit
Multiple
Growth
3 Discounted Cash Flow Analysis - Sensitivity Case #3
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 @ 8.75% Discount Rate
Plus: Present Value of Unlevered Free Cash Flow @ 8.75% 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
7.75%
8.25%
8.75%
9.25%
9.75%
4.25x
$20.71
20.14
19.59
19.07
18.57
Terminal Exit Multiple
5.50x
6.75x
$23.61
$26.41
23.04
25.82
22.41
25.24
21.82
24.56
21.25
23.92
2023E
$177.8
(599.2)
($421.4) $160.3
$182.0
(21.7)
599.2
(25.6)
0.4
(9.5)
($421.4) $150.8
$152.6
51.0%
$77.8
(4.0)
$73.8
For the Years Ending December 31,
2025E
2026E
8.00x
$29.20
28.54
2024E
27.89
27.27
26.58
21.7
(26.1)
15.7
$162.1
51.0%
$82.7
(4.0)
$78.7
9.25x
$32.00
31.26
30.54
29.84
29.16
$151.5
(39.8)
$111.8
(6.6)
$105.2
39.8
(26.7)
8.2
$126.4
51.0%
$64.5
(4.0)
$60.5
WACC
$146.6
(53.8)
$92.8
(6.9)
7.75%
8.25%
8.75%
9.25%
9.75%
$86.0
53.8
(27.3)
0.8
$113.2
51.0%
$57.7
(4.0)
$53.7
2027E
$149.6
(63.2)
$86.4
(6.4)
$80.0
63.2
(27.9)
(9.8)
$105.4
51.0%
--%
$25.14
23.77
22.43
21.24
20.17
$53.8
(4.0)
$49.8
2028E
$146.4
(67.7)
$78.7
(6.8)
$71.9
67.7
(28.6)
(1.0)
$110.0
51.0%
$56.1
(4.0)
$52.1
1.0%
$27.34
25.66
24.17
22.74
21.48
$70.6¹
6.75x
$476.8
288.3
$584.4
$509.7
Perpetuity Growth Rate
0.5%
$26.17
24.65
23.25
21.95
20.79
$25.24
296.2
(74.7)
20.2
1.5%
$28.71
26.81
25.16
23.64
22.25
$146.4
(28.6)
$117.8
(43.6)
$74.2
28.6
(28.6)
$74.2
51.0%
$37.8
(4.0)
$33.8
1.0%
$441.1
266.6
$562.8
$488.1
$24.17
2.0%
$30.32
28.15
26.29
24.66
23.13
Source: SIRE Financial Projections, SIRE management
1. 51% of Sisecam Wyoming EBITDA less $4.0 million SIRE G&A
2. 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%)
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
EVERCORE
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