Baird Investment Banking Pitch Book

AM WEIGHTED AVERAGE COST OF CAPITAL ANALYSIS ($ in millions) Cost of Equity Debt Outstanding (1) (2) (3) (4) (5) (6) Risk-free Interest Rate (2) Levered Beta Market Premium (4) Size Premium Cost of Equity (5) (3) (1) Revolving Credit Facility 5.375% Senior Notes Due 2024 Cost of Debt Source: AM filings and Bloomberg. Represents estimated 20-year treasury rate as of March 29, 2018. Two-year daily levered equity beta as of March 29, 2018 Amount Outstanding $555 650 $1,205 2.9% 0.8 6.9% 1.0% 9.0% Interest (6) Rate 2.8% 5.0% 4.0% Confidentia! Weighted Average Cost of Capital AM Market Equity / Implied Firm Value AM Net Debt / Implied Firm Value Weighted Contribution from Market Equity Weighted Contribution from Debt Weighted Average Cost of Capital Capitalization % of Debt 25.0% 20.0% 15.0% Large company stock total returns minus long-term government bond income returns as computed by Duff & Phelps LLC. Source: Duff & Phelps LLC size premium. Cost of equity is calculated using CAPM (e.g. cost of equity risk-free interest rate + levered equity beta market risk premium size premium). Interest rate for publicly-traded senior notes represents the yield-to-worst as of March 29, 2018, Cost of Equity 9.0% 8.0% 8.5% 7.0% 7.4% 7.2% 7.6% 7.4% 7.8% 8.3% 7.8% 8.0% 9.5% 8.1% 8.4% 8.7% BAIRD 80.1% 19.9% 7.2% 0.8% 8.0% 10.0% 8.5% 8.8% 9.1% Debt capitalization as a percent of implied firm value is sensitized between 15.0 %-25% and cost of equity is sensitized 8.0% -10.0% Baird will sensitize using WACC ranges from 7.0% to 9.1% Project Bronco | Page 12

View entire presentation