1) Offer Value calculation

TEV Calculation:
TEV=
Equity Offer value plus preferred stock, minority interest, debt, less cash, equity in affiliates
2) Sources and Uses:
Sources: cash, revolver, senior, sub debt, sponsors equity
Uses: Purchase of equity, refinancing existing debt, financing fees, expenses
- Equity value and current debt taken from step 1
3) Pro forma balance sheet
Cash: original balance less source of cash, Pro forma will be minimum cash balance
Valuation adjustments to PPE, intangibles etc
Goodwill Calculation
Purchase of Equity
Less: Book Value Acquired
Plus: Existing Goodwill
Plus: Transaction Expenses
= Total Goodwill Created
Less old debt, plus new debt from sources and uses
Less old equity, plus new equity from sources and uses

4) working capital table

A/R, A/P, I/P, Accrued liabilities, accrued taxes
Calculate increase/ decrease in NWC
5) D&A Tables
amount of D&A spend (i.e capex or additions to intangibles as % of sales)
Calculate Depreciation (as % of capex)
Amortization of definite life intangibles
Ending balance

Sources and Uses

Current Share Price
Offer Premium
Offer Price
Shares Outstanding ('000)
Equity Value
Less: Option Proceeds
Offer Value

$18.47
10%
$20.32
143.78
$2,921.11

Debt
Preferred
Minority Interest
Less : Equity and affiliates
Less: cash
TEV

1,034.98
0.00
5.91
51.53
$4,013.53

Current Shares Outstanding

Options Outstanding
Diluted Shares Outstanding

100,000.00
0
100,000.00

Summary Financial Ratios

EBITDA
EBITDA / Interest
EBITDA-CapEx / Interest
Senior debt / EBITDA
Total debt / EBITDA
% of equity to book capital

Sources:
Cash
Revolver
Senior Term Loan
Subordinated debt
Sponsors Equity
Total Sources

$2,921.11

492

Uses
Refinancing existing debt
Purchase of Equity
Financing Fees
Transaction Expenses
Total Uses:

2%
1%

41.53
492
984
1476
1,050.81
4,044.34

1,034.98
2,921.11
59.04
$29.21
4,044.34

assumptions
10
1
2
3

12/30/07
Cash
Accounts receivable
Inventories
Other current assets

$51.5
437.9
26.9
55.8

Adjustments
($51.5)

10

572.1
PP&E, net
Definite life intangibles
Indefinite life intangibles
Goodwill
Equity in affiliates
Other long-term assets
Deferred financing fees

1,468.0
56.8
71.7
683.4
137.8
483.2
0.0

(683.4) $2,655.56

59.04

$3,473.1
Accounts payable
Accrued liabilities
Accrued income taxes

$202.9
335.4
81.1

619.5
Existing long-term debt
Revolver
Senior Term Loan
Subordinated debt
Pension & postretirement benefits obligations
Other long-term liabilities

1,035.0
0.0
0.0
0.0
495.0
339.5

(1,035.0)
492.0
984.0
1,476.0

2,489.0
Minority interest
Total Equity

Equity + Liabilities
Check

5.9
978.2

$3,473.1
0.000

(978.2) $1,050.81

Pro forma
$10.0
$437.9
$26.9
$55.8
$530.6
$1,468.0
$56.8
$71.7
$2,655.6
$137.8
$483.2
$59.0
$5,462.7
$202.9
$335.4
$81.1
$619.5
$0.0
$492.0
$984.0
$1,476.0
$495.0
$339.5
4,406.0
$5.9
$1,050.8
$5,462.7
0.000

Equity Offer Price

Less: Current Equity value
Plus goodwill
Plus: transaction expenses
New Goodwill

$2,921.11
(978.2)
$683.44
$29.21
$2,655.56

Income Statement
2011

2012

$3,195.1
1,341.1
1,854.0

3,227.03
1,355.35
1,871.68

3,291.57
1,382.46
1,909.11

1,362.0
492.0

1,387.62
484.05

1,415.37
493.74

127.5
19.5
345.0

142.5
12.0
329.55

156.35
10
327.39

0.0

-7.17

-7.17

336.72

334.55

2010
Sales
Cost of sales (excluding depreciation)

Gross Profit
SG&A expenses

EBITDA
Depreciation
Amortization
EBIT
Interest expense
Revolver
Senior Term Loan
Subordinated debt

Total interest expense

Interest (income)
Net interest expense

0.0
0.0

Amortization of deferred financing fees

Other non-operating (income) / expense
Pretax income

(7.2)
0.0
352.2

Taxes
Minority interest expense / (income)
(Income) / loss from joint ventures
Net Income

123.3

117.8532 117.0942
(0.1)
-0.2
-0.2
(4.5)
-10.00
-10.00

$233.5

$229.1

$227.7

Gross margin
SG&A (as % of sales)

58.0%
42.6%

1%
58.00%
43%

2%
58.00%
43%

EBITDA margin
EBIT margin
Net income growth

15.4%
10.8%

15%

15%

Effective tax rate

35.0%

Revenue growth rate

35.0%

35.0%

2013

2014

2015

2016

3,357.40
1,410.11
1,947.29

3,424.55
1,438.31
1,986.24

3,493.04
1,467.08
2,025.96

3,562.90
1,496.42
2,066.48

1,443.68
503.61

1,472.56
513.68

1,502.01
523.96

1,532.05
534.43

159.48
8
336.13

162.67
6
345.02

165.92
4
354.04

169.24
2
363.20

-7.17

-7.17

-7.17

-7.17

343.30

352.19

361.21

370.37

120.1559 123.2648
-0.2
-0.2
-10.00
-10.00

126.422 129.6282
-0.2
-0.2
-10.00
-10.00

$233.3

$239.1

$245.0

$250.9

2%
58.00%
43%

2%
58.00%
43%

2%
58.00%
43%

2%
58.00%
43%

15%

15%

15%

15%

35.0%

35.0%

35.0%

35.0%

Balance Sheet

2010

2011

2012

2013

2014

10.00
437.88
26.90
55.80
530.58

442.06
25.99
56.36
524.41

441.88
26.51
57.49
525.88

441.52
27.04
58.64
527.20

440.97
27.58
59.81
528.36

1,468.01
56.75
71.71
2,655.56
137.83
483.24
59.04
4,932.15

1,475.51
55.11
71.71
2,655.56
147.83
483.24
55.11
4,944.07

1,483.74
51.69
71.71
2,655.56
157.83
483.24
51.69
4,955.47

1,492.14
48.73
71.71
2,655.56
167.83
483.24
48.73
4,967.93

1,500.70
47.86
71.71
2,655.56
177.83
483.24
47.86
4,984.77

202.92
335.42
81.11
619.46

204.23
338.84
81.32
624.39

208.32
345.61
82.95
636.88

212.48
352.53
84.61
649.62

216.73
359.58
86.30
662.61

492.00
984.00
1,476.00
495.02
339.53
3,786.55

0.00

0.00

0.00

0.00

5.91

5.71

5.51

5.31

5.11

Total Equity

1,050.81

1,279.88

1,507.54

1,740.89

1,980.01

Total Equity + Liabilities

balance

5,462.72 1,909.98 2,149.93 2,395.81 2,647.72

0.00 -3,558.50 -3,331.42 -3,099.32 -2,865.41

Cash
Accounts receivable
Inventories
Other current assets
Total current assets
PP&E, net
Definite life intangibles
Indefinite life intangibles
Goodwill
Equity in affiliates
Other long-term assets
Deferred financing fees
Total non current assets
Accounts payable
Accrued liabilities
Accrued income taxes
Total Current Liabilities
Revolver
Senior Term Loan
Subordinated debt
Pension & postretirement benefits obligations
Other long-term liabilities
Total Long term liabilities
Minority interest

Cash Flow Statement

Net Income
Depreciation
Amortization
Amortization of financing fees
Minority interest expense / (income)
(Income) / loss from joint ventures
(Increase)/decrease in Net working capital

229.07
142.50
12.00

227.66
156.35
10.00

233.35
159.48
8.00

239.12
162.67
6.00

-0.2
-10.00
1.10

-0.2
-10.00
11.02

-0.2
-10.00
11.42

-0.2
-10.00
11.83

Change in indefinite life intangibles

Change in goodwill
Cash Flow from Operations
Less: Additions to intangibles
Less: Capital Expenditure
Free Cash flow available for debt repayment
Revolving credit facility (repayment)
Bank term loan (repayment)
Subordinated debt (repayment)
Excess Cash Available for Revolver
Issuance / (prepayment) of revolving credit facility
Increase in Cash Balances

Beginning Cash Balance

Increase in Cash Balances
Ending Cash Balance

0.00
0.00

0.00
0.00

0.00
0.00

0.00
0.00

8.07
150
216.40
0.00
0.00
0.00
216.40
-216.40
0.00

6.58
164.58
223.67
0.00
0.00
0.00
223.67
-223.67
0.00

5.04
167.87
229.14
0.00
-196.80
0.00
32.34
-32.34
0.00

5.14
171.23
233.05
0.00
-196.80
0.00
36.25
-19.59
16.66

10.00
0.00
10.00

0.00
0.00
0.00

0.00
0.00
0.00

0.00
16.66
16.66

2015

2016

449.79
28.14
61.00
538.93

458.78
28.70
62.22
549.71

1,509.43
49.10
71.71
2,655.56
187.83
483.24
49.10
5,005.98

1,518.34
52.45
71.71
2,655.56
197.83
483.24
52.45
5,031.58

221.07
366.77
88.02
675.86

225.49
374.10
89.79
689.38

0.00

0.00

4.91

4.71

2,224.99

2,475.93

2,905.76 3,170.02
-2,639.15 -2,411.27

244.98
165.92
4.00

250.94
169.24
2.00

-0.2
-10.00
2.68

-0.2
-10.00
2.74

0.00
0.00

0.00
0.00

5.24
174.65
227.50
0.00
-196.80
0.00
30.70
0.00
30.70

5.34
178.14
231.23
0.00
-196.80
0.00
34.43
0.00
34.43

0.00
30.70
30.70

0.00
34.43
34.43

2010

2011

2012

2013

2014

3,195.08
1,341.10

3,227.03
1,355.35

3,291.57
1,382.46

3,357.40
1,410.11

3,424.55
1,438.31

Working capital balances

Accounts receivable
Inventories
Other current assets

437.88
26.90
55.80

442.06
25.99
56.36

441.88
26.51
57.49

441.52
27.04
58.64

440.97
27.58
59.81

Accounts payable
Accrued liabilities
Accrued income taxes

202.92
335.42
81.11

204.23
338.84
81.32

208.32
345.61
82.95

212.48
352.53
84.61

216.73
359.58
86.30

Net Working capital

(98.88)

(99.98)

(111.00)

(122.42)

(134.25)

(1.10)

(11.02)

(11.42)

(11.83)

50.02
7.32
1.7%

50.00
7.00
1.7%

49
7.00
1.7%

48
7.00
1.7%

47
7.00
1.7%

55.23
25.0%
6.0%

55
25%
6%

55.00
25%
6%

55.00
25%
6%

55.00
25%
6%

3,195.08
380.30
12%

3,227.03
150

3,291.57
164.58
5%

3,357.40
167.87
5%

3,424.55
171.23
5%

127.46
33.5%
8.7%

142.5
95.0%
9.7%

156.35
95.0%
10.5%

159.48
95.0%
10.7%

162.67
95.0%
10.8%

1,468.01

1,468.01
150
-142.50
1,475.51

1,475.51
164.58
-156.35
1,483.74

1,483.74
167.87
-159.48
1,492.14

1,492.14
171.23
-162.67
1,500.70

3,227.03
8.07
0.25%

3,291.57
6.58
0.20%

3,357.40
5.04
0.15%

3,424.55
5.14
0.15%

Sales
Cost of sales (excluding depreciation)

Increase/(decrease) in Net working capital

Assumptions:
Number of days in period
Days A/R
Days Inventory
Other Assets (as % of sales)
Days Payable
Accrued Liabilities (as % of COGS)
Accrued Income taxes (as % of COGS)

D&A Schedule
Sales
Capex
Capital expenditures as % of sales

Depreciation
Depreciation expenditures as % of Capex
Depreciation expenditures as % of PP&E

Beginning PP&E
Capex
Less: Depreciation
Ending PP&E
Sales
Additions to intangibles
Additions as % of sales

365

3,195.08
16.2

0.5%

Amortization Expense
Expense as % of intangibles
Beginning balance
Additions
Amortization
Ending Balance

19.50

12.00

10.00

8.00

6.00

59.04

59.04
8.07
-12.00
55.11

55.11
6.58
-10.00
51.69

51.69
5.04
-8.00
48.73

48.73
5.14
-6.00
47.86

2015

2016

3,493.04
1,467.08

3,562.90
1,496.42

449.79
28.14
61.00

458.78
28.70
62.22

221.07
366.77
88.02

225.49
374.10
89.79

(136.93)

(139.67)

(2.68)

(2.74)

47
7.00
1.7%

47
7.00
1.7%

55.00
25%
6%

55.00
25%
6%

3,493.04
174.65
5%

3,562.90
178.14
5%

165.92
95.0%
11.0%

169.24
95.0%
11.1%

1,500.70
174.65
-165.92
1,509.43

1,509.43
178.14
-169.24
1,518.34

3,493.04
5.24
0.15%

3,562.90
5.34
0.15%

4.00

2.00

47.86
5.24
-4.00
49.10

49.10
5.34
-2.00
52.45

Debt Schedule
2011
216.40
0.00
0.00
0.00
216.40

2012
223.67
0.00
0.00
0.00
223.67

2013
229.14
0.00
-196.80
0.00
32.34

2014
233.05
0.00
-196.80
0.00
36.25

2015
227.50
0.00
-196.80
0.00
30.70

492.00
0.00
-216.40
275.60

275.60
0.00
-223.67
51.93

51.93
0.00
-32.34
19.59

19.59
0.00
-19.59
0.00

0.00
0.00
0.00
0.00

984.00
0
984.00

984.00
0
984.00

984.00
-196.8
787.20

787.20
-196.8
590.40

590.40
-196.8
393.60

1,476.00
0
1,476.00

1,476.00
0
1,476.00

1,476.00
0
1,476.00

1,476.00
0
1,476.00

1,476.00
0
1,476.00

Interest Expense
Revolver
Average Balance
% interest
Interest Expense

383.80
5%
19.19

163.76
5%
8.19

35.76
5%
1.79

9.80
5%
0.49

0.00
5%
0.00

Senior Loan
Average Balance
% interest
Interest Expense

984.00
6%
59.04

984.00
6%
59.04

885.60
6%
53.136

688.80
6%
41.328

492.00
6%
29.52

1,476.00
8%
118.08

1,476.00
8%
118.08

1,476.00
8%
118.08

1,476.00
8%
118.08

1,476.00
8%
118.08

216.40
2%
4.33

223.67
2%
4.47

130.74
2%
2.61

134.65
2%
2.69

129.10
2%
2.58

Term

Fees

Amortz.

Free Cash available for debt repayment

Revolving credit facility (repayment)
Bank term loan (repayment)
Subordinated debt (repayment)
Excess Cash Available for Revolver

Revolver
Beginning balance
Mandatory Repayment
Issuance / (prepayment) of revolving credit facility

Ending Balance
Senior Term Loan
Beginning balance
Mandatory Repayment

Ending Balance
Subordinated debt
Beginning balance
Mandatory Repayment

Ending Balance

Subordinated Debt
Average Balance
% interest
Interest Expense
Cash
Average Balance
% Interest
Interest Income
Deferred financing fees

Revolving credit facility

Bank term loan
Subordinated debt

7.0
7.0
10.0
Totals

$9.8
$19.7
$29.5
$59.0

$1.4
$2.8
$3.0
$7.2

Beginning balance

$59.0
($7.2)
$51.9

$51.9
($7.2)
$44.7

$44.7
($7.2)
$37.5

Amortization

Ending Balance

$37.5
($7.2)
$30.4

$30.4
($7.2)
$23.2

2016
231.23
0.00
-196.80
0.00
34.43

0.00
0.00
0.00
0.00

393.60
-196.8
196.80

1,476.00
0
1,476.00

0.00
5%
0.00

295.20
6%
17.712

1,476.00
8%
118.08

132.83
2%
2.66

$23.2
($7.2)
$16.0