LionTree Investment Banking Pitch Book
Luna Snapshot
Summary Trading Valuation (as of 6/22/2016)
(Smm, unless indicated)
Share Price @Market ($)
Fully Diluted Shares¹
Equity Value
Plus: Net Debt @ 3/31/16²
Plus: Minority Interests @3/31/16
Less: Equity Investments @3/31/16³
Gross Enterprise Value
Less: Value of Tax Attributes*
Adj. Enterprise Value
EV/
FY 2016A EBITDA (Pre-SBC)
FY 2017E EBITDA (Pre-SBC)
FY 2016A EBITDA (Post-SBC)
FY 2017E EBITDA (Post-SBC)
Leverage
Net Debt / FY 2017E EBITDA
Credit Ratings
LionTree
Metric
(Smm)
111
192
33
106
Gross
Multiple
29.0x
16.8x
99.1x
30.4x
$20.55
153.0
3,143
788
98
(808)
3,222 160
(576)
2,646
200
81.4x
25.0x
Adjusted 140
Multiple
23.8x
13.8x 120
3.1x
BB-/Ba3
180
100
80
60
Period
% of 52-Week High
1-Month
3-Month
6-Month
1-Year
2-year
Stock Price Performance
6/22/2014
12/22/2014
-Saturn Series A
Source: Projections per Luna management, as reviewed by Saturn; public company filings
Notes:
Saturn
Selected
Series A
Luna Companies
59.8%
50.0%
6.0%
4.9%
3.7%
(6.1%)
(17.1%)
(37.3%)
(36.0%) (45.7%)
(5.8%) (24.9%)
82.5%
0.7%
1.0%
(0.3%)
(15.3%)
0.9%
Luna
6/22/2015 12/22/2015
Selected Companies
S&P 500
98.0%
1.8%
1.7%
2.3%
(1.8%)
6.2%
www
6.2%
0.9%
(5.8%)
(24.9%)
6/22/2016
- S&P 500
1) Based on fully diluted shares outstanding using treasury stock method; convertible debt treated on an as-if converted basis with appropriate dilutive impact to shares
outstanding for in the money converts; based on 147.2mm basic shares outstanding, 16.1mm in-the-money options outstanding (at WAEP of $23.83) and 1.6mm RSUS
2) Net debt excludes production loans
3) Equity in affiliates assumes Epix valued at 9.0x FY 2016A operating income of $168mm, implying a $471 mm value for Luna's 31% stake; assumes TVGN, ATOM Tickets, and
Tribeca Short List valued @book value; Defy Media/Celestial Tiger stakes valued at $65mm; Saturn stake based on market prices
4) Includes net present value of difference between Luna cash tax rate given Canadian incorporation vs. peer normalized tax rate, incorporating value of existing NOLS 14
5) Includes equity income for leverage purposes
6) Includes Discovery Communications, Time Warner Inc., Scripps Networks Interactive, 21" Century Fox, CBS, The Walt Disney Company, AMC Networks, and ViacomView entire presentation