LionTree Investment Banking Pitch Book
Luna Discounted Cash Flow Analysis¹
($mm)
Adjusted EBITDA (excl. equity gains)
Less: Stock Based Compensation
Less: Depreciation & Amortization
EBIT
Less: Taxes @ 15%
After-Tax EBIT
Plus: Depreciation and Amortization
Less: Capex
Less: Investment in Film and TV, Net of Amortization
Less: (Increase) /Decrease in Working Capital
Less: Start-up Costs and Other
Unlevered Free Cash Flows
Present Value of Cash Flows
Present Value of Terminal Value
Present Value of Enterprise
Less: Net Debt & Other
Present Value of Equity
Shares
Price Per Share
Lion Tree
413
2,779
3,193
(78)
3,114
153.0
$20.36
Source: Projections per Luna management, as reviewed by Saturn
Notes:
WACC
9.25%
9.50%
9.75%
10.00%
10.25%
2017E
192
(86)
(17)
89
(13)
75
17
(11)
(70)
78
(51)
39
Fiscal Year Ended March 31,
2018E
2019E
2020E
220
(85)
(18)
117
(18)
100
18
51
(54)
(42)
65
301
(49)
(18)
13.00x
13.50x
$19.49 $20.15
19.27
19.93
19.06
19.71
18.85
19.49
18.65
19.28
234
(35)
199
18
(7)
(34)
(49)
(9)
117
DCF Equity Value Per Share
317
14.00x
$20.82
20.59
20.36
20.14
19.92
(49)
(17)
250
(38)
213
17
LTM Terminal EBITDA Multiple
14.50x
$21.48
21.24
21.01
20.78
20.55
(7)
(17)
(49)
0
156
2021E
316
(49)
(17)
249
(37)
212
17
(7)
(49)
0
173
15.00x
$22.14
21.90
21.66
21.42
21.18
1) Assumes mid-year convention, discounted back to 3/31/16; based on balance sheet as of 3/31/16 (net debt of $788mm), equity in affiliates of $808mm and minority
interest of $98mm; excludes value of operating losses which have been incorporated in the 15.0% tax rate
16View entire presentation