Unlevered Free Cash Flow Calculation

2007A
EBIT
Plus: Non-deductible Goodwill Amort.
EBITA
Less: Provision for Taxes
Unlevered Net Income
Plus: D&A (excl. non-deductible GW amort.)
Less: Capital Expenditures
Less: Increase in Net Working Capital
Unlevered Free Cash Flow

Calendar Year Ending December 31,

2008P
2009P
2010E
2011E

$120.0
$120.0
(42.0)
$78.0

$126.2
$126.2
(44.2)
$82.0

$133.2
$133.2
(46.6)
$86.6

$137.7
$137.7
(48.2)
$89.5

$142.4
$142.4
(49.9)
$92.6

15.3
(18.0)
(9.5)
$65.8

15.9
(16.0)
8.3
$90.2

16.7
(14.1)
3.1
$92.3

16.0
(14.6)
3.2
$94.2

15.6
(15.1)
3.3
$96.4

DCF Analysis (2008-2012): EBITDA Multiple Method

Discount
Rate
(WACC)

Discount
Rate
(WACC)

10.0%
11.0%
12.0%

Total Enterprise Value

Terminal EBITDA Multiple
7.5x
8.0x
8.5x
$1,042.4
$1,088.1
$1,133.9
1,003.0
1,046.7
1,090.4
965.5
1,007.3
1,049.1

10.0%
11.0%
12.0%

Implied Perpetuity Growth Rate

Terminal EBITDA Multiple
7.5x
8.0x
8.5x
1.0%
1.5%
1.9%
1.9%
2.4%
2.9%
2.8%
3.3%
3.8%

Discount
Rate
(WACC)

Discount
Rate
(WACC)

10.0%
11.0%
12.0%

Total Equity Value

Terminal EBITDA M
7.5x
$959.0
919.6
882.1

10.0%
11.0%
12.0%

Total Price Per Share

Terminal EBITDA M
7.5x
$27.38
26.26
25.19

DCF Analysis (2008-2012): Perpetuity Growth Method

Discount
Rate
(WACC)

Discount
Rate
(WACC)

10.0%
11.0%
12.0%

Total Enterprise Value

Terminal Perpetuity Growth Rate
3.0%
3.5%
4.0%
$1,260.8
$1,335.1
$1,421.7
1,103.6
1,158.0
1,220.1
981.4
1,022.5
1,068.8

10.0%
11.0%
12.0%

Implied Terminal EBITDA Multiple

Terminal Perpetuity Growth Rate
3.0%
3.5%
4.0%
9.9x
10.7x
11.6x
8.7x
9.3x
10.0x
7.7x
8.2x
8.7x

(1) Assumes net debt of $83.4mm as of 5/16/08.

(2) Assumes outstanding diluted shares of 35.021 million.

Discount
Rate
(WACC)

Discount
Rate
(WACC)

10.0%
11.0%
12.0%

Total Equity Value

Terminal Perpetuity Gro
3.0%
$1,177.4
1,020.2
898.0

10.0%
11.0%
12.0%

Total Price Per Share

Terminal Perpetuity Gro
3.0%
$33.62
29.13
25.64

er 31,
2012E
$147.3
$147.3
(51.6)
$95.8
15.4
(15.6)
3.4
$99.0

CAGR
2008-2012
3.9%
3.9%
3.9%

2.3%
Tax Rate
Net Debt
Shares

Total Equity Value

Terminal EBITDA Multiple
8.0x
8.5x
$1,004.7
$1,050.5
963.3
1,007.0
923.9
965.7
Total Price Per Share
Terminal EBITDA Multiple
8.0x
8.5x
$28.69
$30.00
27.51
28.75
26.38
27.58

Total Equity Value

Terminal Perpetuity Growth Rate
3.5%
4.0%
$1,251.7
$1,338.3
1,074.6
1,136.7
939.1
985.4
Total Price Per Share
Terminal Perpetuity Growth Rate
3.5%
4.0%
$35.74
$38.22
30.68
32.46
26.82
28.14

35.0%
$83.4
35.021