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 @ 8.5% 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
$21.87
21.25
20.67
20.12
19.60
Terminal Exit Multiple
5.50x
6.75x
$24.83
$27.75
24.30
27.14
23.63
26.54
23.00
25.87
22.40
25.19
2023E
$182.8
(630.3)
($447.5)
630.3
(25.6)
0.4
$157.5
51.0%
$80.3
(4.0)
$76.3
For the Years Ending December 31,
2025E
2026E
(9.8)
($447.5) $155.2
8.00x
$30.68
29.98
29.31
28.65
27.97
2024E
$186.7
(21.7)
$165.0
21.7
(26.1)
15.7
$166.5
51.0%
$84.9
(4.0)
$80.9
9.25x
$33.60
32.82
32.07
31.34
30.63
$155.7
(39.8)
$115.9
(6.9)
$109.0
39.8
(26.7)
8.2
$130.3
51.0%
$66.4
(4.0)
$62.4
WACC
$150.7
(53.8)
$97.0
7.5%
8.0%
8.5%
9.0%
9.5%
(7.2)
$89.8
53.8
(27.3)
0.8
$117.0
51.0%
$59.7
(4.0)
$55.7
2027E
$154.0
(63.2)
$90.8
(6.7)
$84.1
--%
$27.05
25.54
24.12
22.80
21.63
63.2
(27.9)
(9.8)
$109.5
51.0%
$55.9
(4.0)
$51.9
2028E
$150.8
(67.7)
$83.1
(6.1)
$76.9
67.7
(28.6)
(1.0)
$115.0
51.0%
$58.7
(4.0)
$54.7
1.0%
$29.55
27.66
26.02
24.48
23.09
$72.9¹
6.75x
$492.0
301.6
$610.0
$536.1
Perpetuity Growth Rate
0.5%
$28.21
26.53
25.03
23.59
22.32
$26.54
308.4
(73.9)
20.2
1.5%
$31.10
28.97
27.13
25.49
23.96
$150.8
(28.6)
$122.2
(45.2)
$77.0
28.6
(28.6)
$77.0
51.0%
$39.3
(4.0)
$35.3
1.0%
$474.8
291.0
$599.5
$525.6
$26.02
2.0%
$32.95
30.49
28.40
26.60
24.94
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
42
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