KKR Portfolio Overview

Paul E. Raether
July 18, 2012

CONFIDENTIAL

KKRs Approach to Value Creation

KKR brings a multitude of resources to our companies to create value:
Deal Team

Work with company management day in and day out and have in-depth
knowledge and relationships around their respective industries

KKR Capstone

Drive operational changes at our companies, focusing on 2-3 key

operating issues at a time (both growth and cost)

Portfolio
Management
Committee

Responsible for working with our deal teams from the investment date
through exit in order to ensure that strategic and operational objectives
are established and pursued, and that the performance of the investment
is closely monitored

Capital Markets

Provide capital markets and financing advice to our portfolio companies

and deal teams and has access to a deep network of banking and investor
relationships

Senior Advisors

Group of approximately 20 senior executives around the globe, serve as

proprietary resources for KKR, and provide strategic and operating
guidance to our companies

Public Policy &

Affairs Team
Note:

Focuses on stakeholder & regulatory management at our portfolio

companies

KKR Capstone is owned and controlled by its senior management and not KKR.

KKRs Approach to Value Creation (ctd)

A Structured Approach to Operational Improvements
Portfolio Management
Committee

100-Day Plan

Disciplined and structured

approach to value
creation
Delineates operational
issues to be addressed
immediately after
acquisition

Allows KKR portfolio

companies to benefit from
accumulated experience
of committee members

KKR Capstone

Captive relationship
Experienced team of
senior operators
Focused on resultsoriented execution

High Quality Resources and Processes Focused on Value Creation

Strategy Development

Operational Excellence

Product/market strategies
Regional strategies
Partnership strategies
Acquisition strategies
Positioning for exit

Top-line improvement
(e.g., sales force, pricing)
Cost reduction
Working/operational
capital reduction
IT master plan
R&D master plan

Optimize Organization

Sustainable Industrial Value Creation

Note:

KKR Capstone is owned and controlled by its senior management and not KKR.

Secure, retain, and

incentivize top and middle
management
Optimize organizational
structure
Train and motivate broad
employee base

Approach to Value Creation

We pride ourselves on achieving investment returns through a focus on operational improvements
in the businesses we acquire. This approach is designed to seek consistent performance even in
challenging economic periods
When modelling investment returns, we generally assume lower multiples at exit than at the time
of making the acquisition as illustrated below
We do not allow multiple expansion to drive investment decisions. We believe that most of our
returns come from partnering with strong management teams, improving earnings and paying
down debt as illustrated below
Sources of Value Creation(2)

Assumed Exit Multiple(1)

80%
Greater Exit
Multiple
Than Entry
Assumed
16%

Lower Exit
Multiple
Than Entry
Assumed
77%

Note:
(1)
(2)

Same Exit
Multiple As
Entry
Assumed
7%

60%

40%

70%

20%
26%

0%

EBITDA Growth

4%
Deleveraging /
Cash Paid Out

Multiple Expansion

Figures may not add due to rounding.

Based on count of investments announced or completed from 2006 through March 31, 2012. Excludes Accelerated Oil Technologies, El Paso Midstream,
Harman International, Hilcorp Resources, RPM Energy, Texas Crude Energy, Inc., and Weld North due to nature of transactions and sourcing of
investments. Please see Important Information for additional details and risk factor disclosures. Past performance is no guarantee of future results.
As of March 31, 2012. Includes all realized and partially realized investments made by the Millennium Fund and all private equity funds raised thereafter
(i.e. 2002 through March 31, 2012). Tianrui and China Modern Dairy financials are as of latest publically available (Q4 2011). Multiple expansion data
based on differences between entry multiple and final multiple in the case of fully realized investments and current multiple in the case of partially realized
or unrealized investments. Past performance is no guarantee of future results.

Introduction to the PMC

The PMC serves as an early warning system to identify issues in individual portfolio
companies and then address them (this is the primary objective of the PMC)

The PMC brings rigorous discipline to the process of reviewing all portfolio investments

Discipline to get the information in the monthly/quarterly/annual reports to the Committee members
on time

Discipline to review the information promptly, and

Discipline to identify issues and then to ensure that they are corrected as quickly as possible

The PMC process is interactive follow-up occurs not just at formal presentations but also
as necessary or required

The PMC aims to be efficient, not bureaucratic. Issues need to be identified early and resolved
before they become difficult problems

As an example, if an acquisition opportunity presents itself between reports, the KKR deal team
engages the PMC in a dialogue about their thoughts and plans as well as presenting to the
Investment Committee if additional equity is required

The PMC also serves a crucial ongoing advisory function

For the PMC to be effective, it needs to engage the deal teams in a continuous dialogue

PMC members are matched with KKR deal teams to provide more concentrated oversight every
portfolio company is assigned to a PMC member

KKR deal teams are encouraged to come to the PMC for advice

What should we do about a CEO?

What should we do about a marketing issue?

What is the right exit strategy?

Portfolio Management Committee

Current Members of the
North American PMC:

Current Members of the

European PMC:

Henry Kravis Member, KKR

Henry Kravis Member, KKR

George Roberts Member, KKR

George Roberts Member, KKR

Paul Raether Member & Chairman of

PMC, KKR

Paul Raether Member & Chairman of

PMC, KKR

Mike Michelson Member, KKR

Current Members of the

Asian PMC:

Paul E. Raether Member &

Chairman of PMC, KKR

Joseph Y. Bae Member, KKR

David H. Liu Member, KKR

Johannes Huth Member, KKR

Sanjay Nayar Member, KKR

Alex Navab Member, KKR

Reinhard Gorenflos Member, KKR

Ming Lu Member, KKR

Dean Nelson Founder, KKR Capstone

Dominic Murphy, Member, KKR

Justin C. Reizes Member, KKR

Clint Johnstone Senior Advisor, Former

Director and CFO of Bechtel Group

John Empson, Member, KKR Capital

Markets

Shusaku Minoda Managing

Director, KKR

George Fisher Senior Advisor, Former

Chairman and CEO of Eastman Kodak
Company and Motorola Corporation

Bill Cornog Head of KKR Capstone

Europe

Scott Bookmyer Member, KKR

Capstone

D.S. Brar Senior Advisor, Chairman

of GVK Biosciences and Former CEO
of Ranbaxy

Leigh Clifford Senior Advisor,

Chairman of Qantas Airways Limited
and Former CEO of Rio Tinto

George M.C. Fisher Senior Advisor,

Former Chairman and CEO of
Eastman Kodak Company and
Motorola Corporation

Joe Forehand Senior Advisor, Former

Chairman and CEO of Accenture

George Fisher Senior Advisor, Former

Chairman and CEO of Eastman Kodak
Company and Motorola Corporation

Dave Cote Senior Advisor, Chairman

and CEO of Honeywell

Roger Carr Senior Advisor, Chairman

of Centrica plc

Ken Freeman Senior Advisor, Former

Member of KKR, Dean of School of
Management at Boston University

Ken Freeman Senior Advisor, Former

Member of KKR, Dean of School of
Management at Boston University

Jim Owens Senior Advisor, Former

Chairman and CEO of Caterpillar

Tony DeNunzio Senior Advisor,

Former President of Asda / Walmart and
Executive Chairman of Maxeda

Note:

As of March 2012.

Masakatsu Mori Industry Advisor,

Former President of Accenture Japan

Key Focus Areas of the PMC

Heavy Focus on the Initial Stages of an Investment
Immediately after the acquisition and hopefully before
Review of the 100 Day Plan
Key priorities include: i) management, ii) cash generation to pay down debt, and iii) cost
reduction in order to maintain or expand margins

Emphasis on Building Long-Term Value

Growth initiatives organic growth and growth by acquisition
Process re-engineering to lower costs and produce better quality products
Customer satisfaction
Focus on new products and services to help create the organic growth

Capital Structure Monitoring & Refinancing Solutions

Proactive monitoring of portfolio company liquidity, covenant levels, and counterparty risk
Partnership with KCM in refinancings, structurings, and all other capital structure related issues
Examples include: Sealy refinancing, Nielsen amend / extend, Rockwood amend / extend, Toys
R Us amend / extend
Assessing exits, recapitalizations, and other monetization opportunities

Portfolio-wide Monitoring and Risk Management

PortfolioCentral, the firms proprietary internal database & analytics platform, provides the PMC
with real-time insights into company and portfolio-level performance, leverage, liquidity and
operational risk
Enables PMC to engage in more rigorous monitoring and risk management across the portfolio
to enhance value
Also enables the PMC to leverage portfolio data (aggregated across nearly 70 companies with
over $200 billion in revenue) to glean valuable economic and sector-specific trends
7

PMC Process

Monthly/quarterly reports are typically due the first week of each month

Financials are submitted electronically by the deal teams (and by the portfolio companies
themselves) via PortfolioCentral

Monthly reports are limited to financials and a brief overview email; quarterly reports include
a more thorough write-up (4-8 pages) to give the committee periodic insights into the
business

The PMC meets telephonically each month to review the portfolio company reports received from
the deal teams

The Committee also meets monthly in person to review one of our 9 industry groups including all of
the investments in that vertical

Each Company being reviewed that month submits a short presentation for discussion with
the PMC (no more than 10 pages)

In these meetings, the PMC also reviews the 100 Day Plans for each new investment

Companies on the Watch List are reviewed quarterly

Current Portfolio Overview

Current Global Private Equity Portfolio

(1)

Strong portfolio of high quality franchises across all active private equity funds

77 currently held portfolio companies in our private equity funds with more than $200 billion of annual revenues and nearly 900,000
employees

Well diversified by industry: no industry greater than 20% of remaining portfolio value

Well diversified by geography

North America represents 53% of remaining portfolio value, Europe 36%, and Asia 11%

Outside of the U.S., no country has more than 11% of the remaining portfolio value

North America

Hilcorp
Resources

*
Samson
Resources

KKR Debt
Investors
Texas Crude
Energy

Europe

Asia
China
Outfitters
Novo Holdco
Limited
Note:
(1)
*

10

The specific companies identified are not representative of all of the companies in KKRs current or historical North American private equity portfolio, and it should not be assumed that an
investment in the companies identified was or will be profitable. At the time of investment and currently from a KKR monitoring standpoint, Aricent and Avago are classified as North American
investments based on specific criteria; given the companies however have significant operations in Asia we also include the companies in our Asian private equity portfolio.
As of March 31, 2012. Excludes transactions closed after that date.
KKR announced its exit from El Paso Midstream in April 2012.

Differentiated Investment Sourcing

We expect many firms will find sourcing transactions away from the club deal and auction
models to be challenging
We believe that successful managers will need to source deals through proprietary methods
industry themes, macro trends, etc.
As seen below, this has been KKRs predominant approach and has been successful in finding
new opportunities
Limited Process(1) 34%
Proprietary 50%
Alliance Boots
BMG
Capmark
China Cord Blood
China Outfitters
Coffee Day Resorts
Dalmia Cement
DSD
East Resources
Eastman Kodak
EFH (f.k.a. TXU)
Far East Horizon
First Data
FL Selenia
Harman International
HCA
Jazz Pharmaceuticals
KKR Debt Investors
KSL
Laureate Education
Legg Mason
Masan

Note:
(1)
(2)

11

Masonite
Modern Farming
Nielsen Company
Northgate
Novo
Rockwood
Rundong
SBS Broadcasting
Santander Consumer
Seven Media
Sino Ocean
SunGard
TCEI
Tianrui
TVS Logistics Services
United Envirotech
VATS
Versatel
Visant
Visma(2)
Weld North
Wild Flavors
Yageo

Academy
Accellent
AOT
Ambea
Aricent
ATU
Avago
Bharti(2)
Biomet
Capital Safety
CICC
Dollar General
El Paso Midstream
Go Daddy
Hilcorp Resources

Intelligence
ITC
Magma
Maxeda
MMI
MTU
Pets at Home
ProSiebenSat.1
Samson Resources
Sealy
Tarkett
TDC
Texas Genco
Toys R Us
U.N. RoRo
Unisteel

Auction 16%
AVR
BIS Cleanaway
Capsugel
Dynamit Nobel
Inaer
Ipreo
KION

Legrand
NXP
Oriental Brewery
PagesJaunes
PanAmSat
TASC
U.S. Foods

Data in the chart above represents all private equity transactions publicly announced or completed from inception of Millennium Fund (2002) through
April 30, 2012; percentages are based on number of transactions.
Limited Process is defined as three or fewer parties, including KKR.
Proprietary transaction that became a Limited Process transaction.

Refinancing Strategy

12

Refinancing Overview

Following the 2008 credit crisis, markets have improved opening the door to new deals and portfolio exits. During 2010-2012
YTD, the capital markets have generally remained open for refinancing activities

Issuance volumes continued recent strength, driven by record high yield issuance volume
o

Q1 2012 leveraged loan issuance of $102 billion vs. Q1 2011 volume of $85 billion(1)

Q1 2012 high yield issuance of $99 billion vs. Q1 2011 volume of $78 billion(1)

Fund flows remain strong with record inflows in high yield during Q1 2012
o

13

S&P/LSTA Leveraged Loan index: Return of 3.76%(3)

JPMorgan Global High-Yield Index: Return of 5.87%(4)

KKR formed an internal team, led by KKR Capital Markets, to spearhead our refinancing efforts

Over the past several years we have made significant progress in proactively addressing our portfolio maturities

Note:
(1)
(2)
(3)
(4)

Trading performance rallied during Q1 2012 driven by modest volatility and positive investor sentiment:

Portfolio liquidity and refinancing strategy remain top priorities across KKR

Leveraged loan funds experienced net inflows of $520 million during Q1 2012; high-yield funds saw net inflows of
~$15 billion(2)

Aggressively took advantage of re-opening credit markets to refinance over $14 billion of debt at our North American
portfolio companies in 2009

In 2010, refinanced over $28 billion of North American portfolio company debt

In 2011, refinanced over $45 billion of North American portfolio company debt

During Q1 2012, refinanced over $9 billion of North American portfolio company debt

Success resulted from strong performance of our portfolio companies and the proactive, integrated, and systematic
approach of our deal teams and KKR Capital Markets

All data as of March 31, 2012.

Source: Leveraged Commentary & Data (LCD). Loan volume excludes repricing.
Source: Lipper FMI.
Source: S&P/Loan Syndications and Trading Association (S&P/LSTA).
Source: J.P.Morgan North American High Yield Research.

Refinancing NA Portfolio Company Update

Accellent

Aricent

Dollar General

Completed Refinancing of Existing TL B and Revolver; Offerings include $315 million Senior
Subordinated Notes

Refinanced existing TL B maturing at the end of 2012 with $400 million senior secured notes due 2017

Refinanced existing revolver due at the end of 2011 with asset-based revolver due in 2015

Completed $315 million senior subordinated notes offering due 2017 to repay existing subordinated notes
due 2013

Following these transactions, Accellent will face no debt maturities until the revolver comes due in 2015
(currently undrawn), and the remaining debt matures in 2017

Completed Refinancing of Credit Facility, PIK Note Repayment and PIK Note Extension

Refinanced existing Credit Facility maturing in 2013 with $460 million Credit Facility due 2016

Put in place new $75 million revolver due 2016, increasing borrowing capacity and extending maturities

Repaid $110 million of PIK note and extending the maturity from 2015 to 2016 of the remaining $532
million

Following these transactions, Aricent will face no debt maturities until 2015

Completed Amendment & Extension of Credit Facility (March 2012)

Completed Amendment to existing Credit Facility (via a 50.1% vote) included:

Note:

14

As of March 31, 2012.

Allow for the repayment of Senior Subordinated Notes with Senior Unsecured Notes

Increase restricted payment capacity for loans and advances to parent entities, dividends, etc.

Allow the Company to direct voluntary prepayments to any class of term loans

Completed extension of existing tranche B term loans due 2014

Extended $880 million 2014 term loans to 2017 (3-years)

Remaining 2014 maturity reduced by over 40% to ~$1.1 billion from ~$2.0 billion

Refinancing NA Portfolio Company Update (contd)

Energy Future
Holdings

2010: Completed Exchange Offers; Offerings include $500 million Senior Secured Notes and $350
million 2nd Lien Notes

Completed $500 million senior secured notes offering due 2020 to repay existing debt

Completed exchange of EFH 2017 LBO notes for up to $2.18 billion of 2020 notes secured by the stock in
Oncor and an aggregate amount of $500 million of cash:

$2,705 million of existing 11.25%/12% senior toggle notes

$1,787 million of existing 10.875% senior notes

Completed exchange of $478 million of TCEH unsecured bonds into $336 million of senior secured 2 nd lien
notes due 2021

Completed $350 million TCEH 2nd lien notes offering to repay TCEH unsecured bonds at a discount

Completed exchange of ~$1.275 billion of existing TCEH LBO notes into ~$885 million of TCEH 2 nd lien
secured notes
2011: Completed Amend & Extend Transaction; Included $1.75 billion Senior Secured First Lien
Notes Offering

Completed Amendment to existing TCEH Credit Facility included:

Relaxing the secured-leverage covenant to 8x through 2014, from 6.75x

Excluding $1.5 billion of senior secured first-lien notes from secured leverage covenant

Modifying TCEH / EFH intercompany note structure to benefit TCEH and its lenders

Obtaining acknowledgement from lenders that intercompany loans are arms length and 2008
2010 ECF calculations are correct
Completed Extension to existing TCEH Credit Facility included:

Extending $15.4 billion of term loans and $1.0 billion of deposit LCs from 2014 to 2017 and $1.4
billion of revolver from 2013 to 2016

More than 80% of the 2013/14 maturity tower extended to 2016/17

Completed $1.75 billion TCEH senior secured first lien notes offering due 2020 to fund the pro rata paydown
to make the Amend & Extend effective

Proceeds used to pay down additional term loan, deposit LCs and revolver borrowings
Completed exchange of $428 million of EFH unsecured bonds due 2017 into $406 million of EFIH 2nd lien
notes due 2021

Completed extension of $2.0 billion Oncor revolver from 2013 to 2016

2012: $800 million Senior Secured Second Lien Notes Offering & $200 million Add-On

Completed $800 million 11.75% Second Lien Notes due 2022, upsized from $400 million to $800 million
based on demand during marketing

Note:

15

As of March 31, 2012.

Proceeds will be used to repay intercompany debt and increase liquidity at TCEH
Completed $350 million add-on to 11.75% Second Lien Notes due 2022, upsized from $200 million at launch

Refinancing NA Portfolio Company Update (contd)

First Data Corporation

2010: Completed Amendment and Exchange Offer; Offerings include $500 million 1 st Lien Notes

Completed Amendment to existing Credit Facility included:

The ability to issue additional 1st lien debt with 100% of the net proceeds used to pay existing
term loans

The ability to exchange term loans for new 1st lien bonds with longer maturities

The addition of amend and extend mechanics in the Companys credit agreement, which will allow
First Data to extend term loans opportunistically without paying additional amendment fees

The ability to issue up to $3.5 billion of new 2nd lien debt to refinance existing senior and
subordinated bonds via repayment or exchange

Completed $500 million 1st lien notes offering due 2020 to repay a portion of term debt due 2014

Completed exchange of $6 billion of senior unsecured bonds into $2 billion of 2 nd lien notes due 2021, $1
billion of 2nd lien PIK toggle notes due 2022, and $3 billion of unsecured notes due 2021

2011: Completed Amend & Extend Transaction; Included $750 million Senior Secured Notes

Completed Amendment to existing Credit Facility included:

The amendment permits reductions of Extended Revolver commitments of 20% on a non pro-rata
basis (via a 50.1% vote)

The Extended Revolver includes a springing maturity clause springing 90 days before maturity of
2015 Senior Notes and 2016 Senior Subordinated Notes
Completed Extension to existing Credit Facility included:

Extending $5.4 billion of term loans from 2014 to 2018

Extending $1.2 billion of revolver (prior to 20% commitment reduction) from 2013 to 2016

Completed $750 million senior secured notes offering due 2019 to pay down extended and non-extended
term loans (included in $5.4 billion extension figure above) to make the Amend & Extend effective

2012: Completed Amend & Extend Transaction; Included $845 million Senior Secured Notes

Completed Amendment to existing Credit Facility included:

The amendment permits the Company to direct voluntary prepayments to repay lender who elect
to extend their term loan holdings (via a 50.1% vote)
Completed Extension to existing Credit Facility included:

Note:

16

As of March 31, 2012.

Extending $3.2 billion of term loans from 2014 to 2017 (2.5 years)

Completed $845 million add-on senior secured notes offering due 2019 to pay down extending term loans
lenders who elected to receive proceeds from the bond offering and make the Amend & Extend effective

Refinancing NA Portfolio Company Update (contd)

HCA

Total Dividend Distribution of $4.25 billion; Completed Amendment to Credit Facility to Provide
Greater Flexibility; Offerings include $310 million 2nd Lien Notes, $1.5 billion 1st Lien Notes, $1.25
billion 1st Lien Notes, $1.4 billion 1st Lien Notes, and $2.0 billion Senior Unsecured Notes; $2.0 billion
TL Extension; Forward Commitment to Extend Revolver Maturity; $3.0 billion Term Loan Extension;
$5.0 billion 2nd Lien Notes; $2.0 billion ABL Revolver Refinancing

Laureate

17

As of March 31, 2012.

Issuance of new TLs and 1st lien notes to repay existing TLs

Refinancing of existing revolver and extension of TL maturities

Completed $310 million 2nd lien notes offering due 2017 to repay a portion of term debt due 2012-2013 and
gain approval for amendment to issue 1st Lien debt

Completed $1.5 billion 1st lien notes offering due 2019 to repay a portion of term debt due 2012-2013

Completed $1.25 billion 1st lien notes offering due 2020 to repay a portion of term debt due 2012-2013

Completed $1.4 billion 1st lien notes offering due 2020 to repay a portion of term debt due 2012-2013

Completed $1.75 billion dividend distribution to existing shareholders

Extended $2.0 billion of ~$5.5 billion of existing TLs from November 2013 to March 2017

Completed $500 million dividend distribution to existing shareholders

Completed $1.5 billion Senior Unsecured Notes offering due 2021

Completed $2.0 billion dividend distribution to existing shareholders

Secured a forward commitment to extend $2.0 billion revolver due November 2012 to November 2015

Extended $3.0 billion of $7.1 billion of existing TLs from 2012-2013 to 2016-2017

Completed $5.0 billion 2nd lien notes offering due 2020 & 2022 to redeem bonds due 2016

Completed $2.5 billion ABL Revolver due 2016 to refinance $2.0 billion ABL Revolver due 2012

Extended $725 million of TLA & TLB from 2012 & 2013 to February 2016

Completed Amend & Extend Transaction

Note:

Amended existing credit facility to allow for:

Completed Amendment to existing Credit Facility included:

Extending revolver maturity from 2013 to 2016; extending term loan maturity from 2014 to 2018

Permiting maturity extensions on existing credit facility

Mandatory prepayments from future debt proceeds to be applied first to non-extended term loans
Completed Extension to existing Credit Facility included:

Extending $871 million of term loans from 2014 to 2018

Extending $300 million of revolver from 2013 to 2016

Converting $100 million of revolver into term loan due 2018

Refinancing NA Portfolio Company Update (contd)

Nielsen

Completed Amendment and Extension; Offerings include $830 million Senior Unsecured Notes;
$500 million Secured Loan, and $750 million and $330 million Senior Unsecured Notes

Completed two notes offerings totaling $830 million due 2014-2016 to fully repay May 2010 debt maturities,
opportunistically repurchase debt trading at discounts to par value and partially paydown revolver

Extended $1.25 billion of existing TLs from August 2013 to May 2016; concurrently completed $500 million
offering of fixed-rate, bond-equivalent secured loans due 2017 to repay bank TLs due 2013

Extended $1.5 billion of existing TLs from August 2013 to May 2016

Rockwood

18

As of March 31, 2012.

Raised new $1.03 billion senior secured credit facility comprised of:

5-year $180 million revolving credit facility (existing revolver due July 2012)

7-year $850 million TL B (existing term loan due May 2014)

Completed Recapitalization

Note:

Completed $750 million and $330 million senior unsecured notes offerings due October 2018 to repay
existing notes due August 2014

Completed Refinancing of Existing Credit Facility

Sealy

These three transactions together bring the total amount of term debt due in 2013 down from $5.1
billion to $1.8 billion

Refinanced entire existing credit facility consisting of a $125 million revolver due April 2010, $266 million TL
A due August 2011 and $107 million TL E due August 2012 with:

$100 million 4-year ABL

$350 million 1st lien bonds due 2016

$177 million convertible PIK notes due 2016 issued through a rights offering backstopped by KKR
funds

The new capital structure provides Sealy with an attractive long-term financing solution:

Extends maturities until 2013 and beyond

Eliminates quarterly maintenance-based covenants

Eliminates scheduled amortization payments

Increases Sealys liquidity and flexibility with an undrawn revolver and additional cash on the
balance sheet

Refinancing NA Portfolio Company Update (contd)

SunGard

2011: Completed Amendment and Extension; Completed Refinancing of $1.6 billion Senior Unsecured Notes

Reduced existing $1 billion revolver commitment to $750 million and extended $570 million from August 2011 to May
2013

Extended $2.5 billion of $4.2 billion original TL B from February 2014 to February 2016

Amended the credit agreement to i) allow for the issuance of new debt to repay existing term loan and ii) smoothened
maintenance covenant step-downs to provide increased operating and strategic flexibility

Completed $1.6 billion Senior Unsecured Notes offering comprised of two tranches ($900 million due 2018 and $700
million due 2020) to repay existing notes due August 2013\

2012: Completed Amendment & Extension of Term Loans due 2014; Renewed its Revolving Credit Facility

TASC

Extended $908 million of 2014 term loans by 3-years to 2017

Completed amendment of existing credit facility to allow for potential spin-off of SunGards Availability Services segment

Renewal of the existing $880 million Revolving Credit Facility due May 2013 by 3.5-years to November 2016

2011: Completed Amendment & Refinancing of Existing Credit Facility

Refinanced $675 million senior secured credit facility:

$180 million of new $575 million TL B was used to refinance TL A, with significant scheduled amortization prior
to ultimate maturity of 2015

New TL B has minimal amortization (1%)

Amendment resulted in enhanced flexibility to refinance mezzanine notes as well as removing step-downs in leverage
ratio maintenance covenant

2012: Completed Partial Senior Subordinated Notes Refinancing

Refinanced a portion of the 12.375% Senior Subordinated Notes with $75 million incremental Term Loan B

Note:

19

As of March 31, 2012.

The transaction reduced the Companys interest expense, further enhancing its overall credit profile

Pro Forma for the refinancing, the Company will have less than $200 million of Mezzanine financing outstanding

Refinancing NA Portfolio Company Update (contd)

Toys R Us

2009 & 2010: Completed ABL Revolver Extension; Offerings include $950 million Senior Unsecured Notes; $725
million Senior Secured Notes; $700 million Senior Secured TL; $350 million Senior Secured Notes

Used proceeds from a $950 million senior unsecured notes offering due 2017, along with cash on hand, to repay its
existing $1.3 billion unsecured PropCo facility maturing in December 2010

Used proceeds from a $725 million senior secured notes offering due 2017, along with cash on hand, to repay its
existing $800 million CMBS maturing in August 2010

Extended $1.63 billion U.S. ABL revolver from May 2012 to August 2015; upsized the facility from $1.63 billion to $1.85
billion

Refinanced an existing $800 million senior secured TL due July 2012 and $181 million senior unsecured TL due January
2013 by issuing a combination of a $700 million senior secured TL due 2016 and $350 million senior secured notes due
2016

2011: Completed Refinancing of Existing HoldCo Senior Notes; $400 million Secured TL B

Used proceeds from $400 million TL B due 2018, along with cash on hand, to repay its existing $500 million holdco
senior notes maturing in 2011

2012: Completed Term Loan Add-On

US Foodservice

Visant

Note:

20

As of March 31, 2012.

Issued $225 million add-on to the B-3 term loan tranche

Completed Refinancing of Existing Senior Notes; Offerings include $400 million Senior Unsecured Notes; $425
million Senior Secured TL; Amended Senior ABL Facility

Refinanced $1.0 billion of senior notes due 2015

$400 million senior unsecured notes due 2019

$425 million TL due 2017

$75 million drawn on $1.1 billion ABL, extended from 2013 to 2016 as part of transaction

Cash from balance sheet

Completed Amendment and Extension; $2.175 billion Dividend Recapitalization

Extended $100 million of existing $250 million revolver from October 2009 to September 2011

Completed $2.175 billion dividend recapitalization to repay $1.45 billion of outstanding debt and pay dividend to existing
shareholders

$175 million revolving credit facility

$1.25 billion TL due 2016

$750 million notes due 2017

$517 million dividend

Q&A

21