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 @ 8.75% 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
$23.35
22.71
22.11
21.53
20.98
Terminal Exit Multiple
5.50x
6.75x
$26.60
$29.64
25.88
28.99
25.19
24.54
23.90
28.27
27.52
26.82
2023E
$189.4
(661.2)
($471.9)
661.2
(25.6)
0.4
$164.1
51.0%
$83.7
(4.0)
$79.7
For the Years Ending December 31,
2025E
2026E
(10.3)
($471.9) $163.5
8.00x
$32.69
31.96
31.25
30.51
29.72
2024E
$195.5
(21.7)
$173.8
21.7
(26.1)
15.7
$174.8
51.0%
$89.1
(4.0)
$85.1
9.25x
$35.73
34.92
34.13
33.36
32.62
$172.9
(39.8)
$133.1
(7.9)
$125.3
39.8
(26.7)
8.2
$146.5
51.0%
$74.7
(4.0)
$70.7
WACC
$167.7
(53.8)
$114.0
(8.4)
$105.5
7.75%
8.25%
8.75%
9.25%
9.75%
53.8
(27.3)
0.8
$132.7
51.0%
$67.7
(4.0)
$63.7
2027E
$162.1
(63.2)
$98.9
--%
$28.65
27.03
25.54
24.20
23.00
(7.3)
$91.6
63.2
(27.9)
(9.8)
$117.0
51.0%
$59.7
(4.0)
$55.7
2028E
$158.9
(67.7)
$91.2
(13.0)
$78.2
67.7
(28.6)
(1.0)
$116.3
51.0%
$59.3
(4.0)
$55.3
Exit
Multiple
$77.0¹
1.0%
$31.12
29.23
27.48
25.88
24.47
6.75x
$519.9
314.3
$643.7
$570.9
$28.27
Perpetuity Growth Rate
0.5%
$29.80
28.08
26.45
24.99
23.70
329.4
(72.7)
20.2
1.5%
$32.65
30.52
28.65
26.89
25.34
Perpetuity
Growth
$158.9
(28.6)
$130.3
(48.2)
$82.1
28.6
(28.6)
$82.1
51.0%
$41.9
(4.0)
$37.9
1.0%
$493.5
298.3
$627.7
$555.0
$27.48
2.0%
$34.44
32.01
29.93
28.03
26.32
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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