Profit and Loss Statement ($mm)

Dec/15A Dec/16E Dec/17E Dec/18E

Revenue 3,651 3,475 3,641 3,854
EBITDA 918 957 1,023 1,106
EBIT 658 686 745 822
Net Interest Expense (127) (100) (94) (93)
PBT 614 586 651 729
Income Tax (29) (28) (31) (35)
Net Income 585 558 620 695
FDSO 113 113 113 113
EPS ($) $4.92 $5.46 $6.12

Capex 233 232 284

Balance Sheet ($mm)

Dec/15A
Property, Plant & Equipment, Net 2,485
Goodwill 2,894
Other Intangibles 1,733
Other Long-term Assets 672
Cash & Equivalents 214
Receivables 633
Inventories 509
Other current assets 476

Total Assets 9,615

Accounts Payable 307

Other current Liabilities 633
Total Debt 3,852
Other non-current Liabilities 1,422
Total Equity 3,401

Total Liabilities 9,615

check -
Dec/19E Dec/20E
4,111 4,282
1,201 1,308
909 979
(87) (67)
822 912
(39) (43)
783 869
113 113
$6.90 $7.66

294 211
Profit and Loss Statement ($mm)
Dec/15A Dec/16E Dec/17E Dec/18E
Revenue 3,361 3,130 3,142 3,295
EBITDA 311 385 403
EBIT 95 157 176
Net Interest Expense
PBT
Income Tax
Net Income

Capex 216 208 233

Balance Sheet ($mm)

Dec/15A
Property, Plant & Equipment, Net 1,618
Goodwill 852
Other Intangibles 1,014
Other Long-term Assets 66
Cash & Equivalents 258
Receivables 366
Inventories 298
Other current assets 60

Total Assets 4,531

Accounts Payable 248

Other current Liabilities 158
Total Debt 1,367
Other non-current Liabilities 1,106
Total Equity 1,653

Total Liabilities 4,531

check -
Dec/19E Dec/20E
3,455 3,624
423 443
185 194

244 256
 Case Selected Case Options
Case 1 Case 1 Case 2 Case 3
Premium Paid 30% 30% 30% 40%
Consideration Details
Debt Financing 100% 100% 50% 100%
Equity Financing 0% 0% 50% 0%
Additional Debt Raised
Interest Rate for Additional Raised 5% 5% 5% 4%
Bond Bullet Repayment (no. of years) 7 7 7 7
Synergies
Synergies (% of Target Revenue) 4% 4% 4% 5%
- Year 1 25% 25% 25% 25%
- Year 2 50% 50% 50% 50%
- Year 3 100% 100% 100% 100%
Fees and Expenses
M&A Advisory Fees 2% 2% 2% 2%
Debt Raising Fees 3% 3% 3% 3%
Equity Raising Fees 3% 3% 3% 3%
Options
Case 4
40%

50%
50%

4%
7

5%
25%
50%
100%

2%
3%
3%

2016E EPS Accretion / (Dilution) Sensitivity

Premium Paid
-8% 20% 25% 30% 35% 40%
0%
Debt Issued

25%
50%
75%
100%

2017E EPS Accretion / (Dilution) Sensitivity

Premium Paid
7% 20% 25% 30% 35% 40%
0%
Debt Issued

25%
50%
75%
100%

2018E EPS Accretion / (Dilution) Sensitivity

Premium Paid
 18% 20% 25% 30% 35% 40%
0%

Debt Issued
25%
50%
75%
100%

2019E EPS Accretion / (Dilution) Sensitivity

Premium Paid
18% 20% 25% 30% 35% 40%
0%
Debt Issued

25%
50%
75%
100%

2020E EPS Accretion / (Dilution) Sensitivity

Premium Paid
18% 20% 25% 30% 35% 40%
0%
Debt Issued

25%
50%
75%
100%
Axiall Market Statistics
Share Price ($) 23.3
Premium 30%
Acquistion Price 30.3
FDSO 71.2
Equity Purchase Price ($mm) 2,155
Total Debt 1,367
Cash & Equivalents 258
Total Enterprise Value ($mm) 3,264

Calcuation of FDSO

Current Shares Outstanding (mm) 70.6

Options Avg. Ex. No. of equ.

Outstanding (mm) Price equity shares
Option 1 0.04 21.25 0.01
Option 2 0.17 33.87 -
Option 3 0.02 172.47 -
Option 4 0.03 591.52 -
Restricted Stock Units 0.57 0 0.57

FDSO 71.17
Albemarle Market Statistics
Share Price ($) 80.1
Premium 0%
Share Price ($) 80.1
FDSO 113.48
Total Equity Value ($mm) 9,089
Total Debt 3,852
Cash & Equivalents 214
Total Enterprise Value ($mm) 12,727

Calcuation of FDSO

Current Shares Outstanding (mm) 112.3

Options Avg. Ex. No. of equ.

Outstanding (mm) Price equity shares
Option 1 1.68 50.76 0.61
Performance units 0.50 0 0.50
Non-Performance units 0.12 0 0.12

FDSO 113.48
Sources and Uses of Funds ($mm)
Uses of Funds Sources of Funds
Equity Purchase Price 2,155 Target Debt Refinanced 1,367
Target Debt Refinanced 1,367 Equity Issue -
M&A Advisory Fees 43 Additional Debt Raised 2,266
Debt Raising Fees 68
Equity Financing Fees -

Total Uses of Funds 3,633 Total Sources of Funds 3,633

Calculation of New Goodwill ($mm)
Equity Purchase Price Paid 2,155
Axiall Shareholder' Equity (1,653)
Axiall Existing Goodwill 852

New Goodwill Created 1,353

2015 ProForma Balance Sheet ($mm)
Albemarle Axiall Adjustments ProForma
Property, Plant & Equipment, Net 2,485 1,618 - 4,102
Goodwill 2,894 852 501 4,247
Other Intangibles 1,733 1,014 - 2,747
Other Long-term Assets 672 66 - 738
Cash & Equivalents 214 258 - 472
Receivables 633 366 - 999
Inventories 509 298 - 807
Other current assets 476 60 - 536

Total Assets 9,615 4,531 501 14,648

Accounts Payable 307 248 - 554

Other current Liabilities 633 158 - 790
Total Debt 3,852 1,367 2,266 7,485
Other non-current Liabilities 1,422 1,106 - 2,528
Total Equity 3,401 1,653 (1,764) 3,290

Total Liabilities 9,615 4,531 501 14,648

check - - - -
ProForma Profit and Loss Statement ($mm)
Dec/16E Dec/17E Dec/18E Dec/19E Dec/20E
ALB Revenue 3,475 3,641 3,854 4,111 4,282
AXLL Revenue 3,130 3,142 3,295 3,455 3,624
ProForma Revenue 6,605 6,783 7,149 7,566 7,906

ALB EBITDA 957 1,023 1,106 1,201 1,308

AXLL EBITDA 311 385 403 423 443
Synergies 31 63 132 138 145
ProForma EBITDA 1,299 1,471 1,641 1,762 1,896

ProForma D&A 487 506 511 530 579

ALB EBIT 686 745 822 909 979

AXLL EBIT 95 157 176 185 194
Synergies 31 63 132 138 145
ProForma EBIT 812 965 1,130 1,232 1,318

ALB Interest Expense 100 94 93 87 67

AXLL Interest Expense 63 63 63 62 62
Additional Debt Interest Expense 113 113 113 113 113
ProForma Interest Expense 276 270 269 263 243

ProForma Profit Before Tax 536 695 861 969 1,075

Income Tax 25 33 41 46 51
ALB effective tax rate 5% 5% 5% 5% 5%

ProForma Net Income 511 662 820 923 1,024

PF FDSO 113.5 113.5 113.5 113.5 113.5

ProForma EPS ($) $4.50 $5.83 $7.23 $8.13 $9.02
Albemarle Standalone EPS ($) $4.92 $5.46 $6.12 $6.90 $7.66

Accretion / (Dilution) (8.5%) 6.7% 18.1% 17.9% 17.9%

ProForma Balance Sheet ($mm)
PFDec/15A Dec/16E Dec/17E Dec/18E Dec/19E
Property, Plant & Equipment, Net 4,102 4,064 3,998 4,004 4,013
Goodwill 4,247 4,247 4,247 4,247 4,247
Other Intangibles 2,747 2,747 2,747 2,747 2,747
Other Long-term Assets 738 738 738 738 738
Cash & Equivalents 472 414 1,048 1,708 2,210
Receivables 999 941 966 1,018 1,078
Inventories 807 760 781 823 871
Other current assets 536 536 536 536 536

Total Assets 14,648 14,447 15,061 15,821 16,439

Accounts Payable 554 522 536 565 598

Other current Liabilities 790 790 790 790 790
Total Debt 7,485 6,805 6,744 6,655 6,317
Other non-current Liabilities 2,528 2,528 2,528 2,528 2,528
Total Equity 3,290 3,801 4,463 5,283 6,206

Total Liabilities 14,648 14,447 15,061 15,821 16,439

check - - - 0 0
Dec/20E
3,901
4,247
2,747
738
2,125
1,126
910
536

16,330

625
790
5,157
2,528
7,230

16,330

0
ProForma Cash Flow Statement ($mm)
Dec/16E Dec/17E Dec/18E Dec/19E Dec/20E
Net Income 511 662 820 923 1,024
Depreciation and Amortization 487 506 511 530 579
Changes in Working Capital
Receivables 58 (25) (52) (59) (48)
Inventories 47 (20) (42) (48) (39)
Accounts Payable (32) 14 29 33 27

Cash Flows from Operating Activities 1,071 1,136 1,266 1,378 1,542

Capital Expenditure (449) (440) (517) (538) (467)

Cash Flows from Investing Activities (449) (440) (517) (538) (467)

Repayment of Loans (679) (62) (89) (338) (1,160)

Cash Flows from Financing Activities (679) (62) (89) (338) (1,160)

Net Cash Generated during the year (58) 634 660 502 (85)
Opening Cash Balance 472 414 1,048 1,708 2,210
Closing Cash Balance 414 1,048 1,708 2,210 2,125
Calculation of Working Capital Dec/15A Dec/16E Dec/17E Dec/18E Dec/19E
Revenue 7,012 6,605 6,783 7,149 7,566
Receivables 999 941 966 1,018 1,078
Inventories 807 760 781 823 871
Accounts Payable 554 522 536 565 598

Receivables No. of days 52 52 52 52 52

Inventories No. of days 42 42 42 42 42
Accounts Payable No. of days 29 29 29 29 29

AXLL Debt Repayment Schedule

Dec/15A Dec/16A Dec/17A Dec/18A Dec/19A
4.625% Notes due 2021
Opening Balance 679 679 679 679
Repayment - - - -
Closing Balance 679 679 679 679 679

Interest Cost 4.6250% 31 31 31 31

4.875% Notes due 2023

Opening Balance 444 444 444 444
Repayment - - - -
Closing Balance 444 444 444 444 444

Interest Cost 4.875% 22 22 22 22

New Term Loan Facility 2022

Opening Balance 244 242 239 237
Mandatory Repayment (3) (3) (3) (3)
Bullet Repayment upon Maturity - - - -
Closing Balance 244 242 239 237 234

Interest Cost 4.000% 10 10 10 9

Total AXLL Debt 1,367 1,365 1,362 1,360 1,357

Total AXLL Interest Cost 63 63 63 62

ALB Debt Repayment Schedule

Dec/15A Dec/16A Dec/17A Dec/18A Dec/19A
1.875% Senior Notes 2021
Opening Balance 764 764 764 764
Repayment - - - -
Closing Balance 764 764 764 764 764
Interest Cost 1.875% 14 14 14 14

3.00% Senior Notes 2019

Opening Balance 250 250 250 250
Repayment - - - (250)
Closing Balance 250 250 250 250 -

Interest Cost 3.00% 7.5 7.5 7.5 3.7

4.15% Senior Notes 2024

Opening Balance 424 424 424 424
Repayment - - - -
Closing Balance 424 424 424 424 424

Interest Cost 4.15% 18 18 18 18

4.50% Senior Notes 2020

Opening Balance 348 348 348 348
Repayment - - - -
Closing Balance 348 348 348 348 348

Interest Cost 4.50% 16 16 16 16

5.45% Senior Notes 2044

Opening Balance 349 349 349 349
Repayment - - - -
Closing Balance 349 349 349 349 349

Interest Cost 5.45% 19 19 19 19

Commercial Paper Notes 2016

Opening Balance 351 - - -
Repayment (351) - - -
Closing Balance 351 - - - -

Interest Cost 1.07% 2 - - -

Term Loan and Other Debt

Opening Balance 1,366 1,040 981 894
Repayment (326) (59) (86) (85)
Closing Balance 1,366 1,040 981 894 809

Interest Cost 2.000% 24 20 19 17

Total ALB Debt 3,852 3,175 3,116 3,029 2,694
Total ALB Interest Cost 100 94 93 87

New Debt Raised for Acquisition

Dec/15A Dec/16A Dec/17A Dec/18A Dec/19A
Acquisition Debt 2023
Opening Balance 2,266 2,266 2,266 2,266
Repayment - - - -
Closing Balance 2,266 2,266 2,266 2,266 2,266

Interest Cost 5.00% 113 113 113 113

Dec/20E
7,906
1,126
910
625

52
42
29

Dec/20A

679
-
679

31

444
-
444

22

234
(3)
-
232

1,355
62

Dec/20A

764
-
764
 14

-
-
-

424
-
424

18

348
(348)
-

349
-
349

19

-
-
-

809
(809)
-0

8
 1,537
67

Dec/20A

2,266
-
2,266

113