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 Taxes
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 @ 9.0% Discount Rate
Plus: Present Value of Unlevered Free Cash Flow @ 9.0% 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
8.0%
8.5%
9.0%
9.5%
10.0%
4.25x
$13.42
13.05
12.71
12.37
12.04
Terminal Exit Multiple
5.50x
6.75x
$15.39
$17.32
14.97
16.87
14.56
16.42
14.18
15.98
13.81
15.56
2023 E
$158.0
(407.1)
($249.0)
($249.0)
407.1
(25.6)
0.4
$132.8
51.0%
$67.7
(4.0)
$63.7
8.00x
$19.15
18.71
18.26
17.78
17.31
2024E
For the Years Ending December 31,
2025E
2026E
$147.5
(21.7)
$125.8
(7.4)
$118.4
21.7
(26.1)
15.7
$129.6
51.0%
$66.1
(4.0)
$62.1
9.25x
$20.97
20.49
20.01
19.55
19.05
$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)
$44.1
Confidential - Preliminary and Subject to Change
8.0%
8.5%
9.0%
9.5%
10.0%
($ in millions, except per unit amounts,
Perpetuity
Growth
$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
2027 E
$113.4
--%
$14.75
13.94
13.20
12.54
11.95
(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
(11.2)
$20.8
67.7
(28.6)
(1.0)
$58.9
51.0%
$30.0
(4.0)
$26.0
Exit
Multiple
$46.9¹
Perpetuity Growth Rate
0.5%
$15.32
14.42
13.63
12.92
12.27
1.0%
$15.94
14.98
14.11
13.33
12.64
6.75x
$316.3
188.6
$404.8
$331.6
$16.42
216.3
(73.2)
20.2
1.5%
$16.64
15.61
14.65
13.80
13.04
$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%
$238.1
142.0
$358.2
$285.0
$14.11
2.0%
$17.45
16.31
15.26
14.33
13.50
Source: SIRE Financial Projections
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
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