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 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
$13.62
13.24
12.88
12.53
12.20
Terminal Exit Multiple
5.50x
6.75x
$15.61
$17.52
15.17
17.10
14.76
16.64
14.37
16.20
13.99
15.77
2023E
$158.0
(413.6)
($255.5)
($255.5)
413.6
(25.6)
0.4
$132.8
51.0%
$67.7
(4.0)
$63.7
8.00x
$19.37
18.93
18.49
18.02
17.54
2024E
For the Years Ending December 31,
2026E
2025E
$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
$21.22
20.73
20.25
19.78
19.31
$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)
$44.1
Confidential - Preliminary and Subject to Change
7.75%
8.25%
8.75%
9.25%
9.75%
($ in millions, except per unit amounts,
$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
2027E
--%
$15.20
14.33
13.56
12.87
12.24
$113.4
(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
(8.8)
$23.2
67.7
(28.6)
(1.0)
$61.3
51.0%
$31.3
(4.0)
$27.3
Exit
Multiple
$46.9
1.0%
$16.44
15.45
14.53
13.71
12.97
6.75x
$316.3
191.2
$409.3
$336.1
$16.64
Perpetuity Growth Rate
0.5%
$15.78
14.86
14.02
13.26
12.59
218.1
(73.2)
20.2
1.5%
$17.20
16.12
15.11
Perpetuity
Growth
14.21
13.41
$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%
$245.8
148.6
$366.7
$293.5
$14.53
2.0%
$18.09
16.86
15.78
14.78
13.90
Source: SIRE Financial Projections
2.
1. 51% of Sisecam Wyoming EBITDA less $4.0 million SIRE G&A
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%); cash taxes assum
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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