Evercore Investment Banking Pitch Book
Confidential - Preliminary and Subject to Change
Financial Projections and Preliminary Valuation Detail - Sensitivity Case #1
($ in millions, except per unit amounts,
1 Discounted Cash Flow Analysis - Sensitivity Case #1
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
$22.78
22.14
21.54
20.97
20.43
Terminal Exit Multiple
5.50x
6.75x
$25.83
$28.86
25.28
28.23
24.60
27.61
23.95
26.92
23.33
26.22
2023E
$195.4
(652.0)
($456.6)
652.0
(25.6)
0.4
$170.2
51.0%
$86.8
(4.0)
$82.8
For the Years Ending December 31,
2025E
2026E
(10.1)
($456.6) $160.5
8.00x
$31.89
31.17
30.48
29.80
29.11
2024E
$192.3
(21.7)
$170.6
21.7
(26.1)
15.7
$171.8
51.0%
$87.6
(4.0)
$83.6
9.25x
$34.92
34.12
33.34
32.59
31.85
$152.2
(39.8)
$112.5
(6.7)
$105.8
39.8
(26.7)
8.2
$127.0
51.0%
$64.8
(4.0)
$60.8
WACC
$147.5
7.5%
8.0%
8.5%
9.0%
9.5%
(53.8)
$93.8
(6.9)
$86.9
53.8
(27.3)
0.8
$114.0
51.0%
$58.2
(4.0)
$54.2
2027E
$159.1
--%
$28.30
26.72
25.24
(63.2)
$96.0
23.87
22.65
(7.1)
$88.9
$114.3
51.0%
$58.3
63.2
(27.9)
(9.8)
(4.0)
$54.3
2028E
$155.9
(67.7)
$88.3
(6.5)
$81.7
67.7
(28.6)
(1.0)
$119.8
51.0%
$61.1
(4.0)
$57.1
Exit
Multiple
$75.5¹
1.0%
$30.91
28.94
27.23
25.63
24.18
6.75x
$509.8
312.5
$630.3
$557.7
$27.61
Perpetuity Growth Rate
0.5%
$29.51
27.76
26.20
24.70
23.37
317.8
(72.6)
20.2
1.5%
$32.54
30.31
28.39
26.69
25.09
Perpetuity
Growth
$155.9
(28.6)
$127.4
(47.1)
$80.2
28.6
(28.6)
$80.2
51.0%
$40.9
(4.0)
$36.9
1.0%
$497.3
304.8
$622.6
$550.0
$27.23
2.0%
$34.47
31.90
29.72
27.84
26.12
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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