Evercore Investment Banking Pitch Book slide image

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 EVERCORE 21 ŞİŞECAM
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