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

53 $4.32 143.11 492 Uses Refinancing existing debt Purchase of Equity Financing Fees Transaction Expenses Total Uses: 2% 1% .91 51.98 0.000.00 0 100.11 Debt Preferred Minority Interest Less : Equity and affiliates Less: cash TEV 1.013.78 $2.034.53 Current Shares Outstanding Options Outstanding Diluted Shares Outstanding 100.Sources and Uses Current Share Price Offer Premium Offer Price Shares Outstanding ('000) Equity Value Less: Option Proceeds Offer Value $18.00 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 $2.00 5.47 10% $20.921.921.000.

98 2.044.21 4.050.034.34 assumptions 10 1 2 3 .044.04 $29.81 4.921.41.34 1.11 59.53 492 984 1476 1.

000 (978.0 (683.473.468.8 71.0 1.8 483.9 55.0 2.7 683.04 $3.050.1 PP&E.0) 492.2) $1.5 437.0 339.8 Adjustments ($51.035.4 137.035.5 (1.0 0.5) 10 572.1 619.9 26.0 0.655.2 $3.5 Existing long-term debt Revolver Senior Term Loan Subordinated debt Pension & postretirement benefits obligations Other long-term liabilities 1.12/30/07 Cash Accounts receivable Inventories Other current assets $51.0 Minority interest Total Equity Equity + Liabilities Check 5.0 0.56 59.4 81.489.0 984.1 0.9 978.81 .9 335.0 495. net Definite life intangibles Indefinite life intangibles Goodwill Equity in affiliates Other long-term assets Deferred financing fees 1.4) $2.476.1 Accounts payable Accrued liabilities Accrued income taxes $202.2 0.0 56.473.

0 $984.468.44 $29.6 $137.0 $5.462.655.5 $0.7 $2.8 $5.4 $81.0 $437.000 Equity Offer Price Less: Current Equity value Plus goodwill Plus: transaction expenses New Goodwill $2.0 $5.9 $55.1 $619.476.11 (978.Pro forma $10.0 $492.655.8 $483.6 $1.2) $683.7 0.921.7 $202.9 $335.5 4.0 $1.9 $1.21 $2.0 $56.462.2 $59.406.0 $339.56 .8 $71.0 $495.050.8 $530.9 $26.

0 329.17 -7.5 $229.17 336.1 1.227.2) 0.00% 43% 2% 58.Income Statement 2011 2012 $3.6% 1% 58.1) -0.382.387.3 117.0 142.909.291.5 12.57 1.0% 42.1 1.195.0 3.5) -10.854.05 1.871.37 493.00 -10.62 484.35 10 327.1 $227.55 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 0.74 127.0% .0 492.8% 15% 15% Effective tax rate 35.362.39 0.0% Revenue growth rate 35.8532 117.0 Amortization of deferred financing fees Other non-operating (income) / expense Pretax income (7.0% 35.11 1.0 352.0 0 0 -7.00 $233.355.4% 10.0 1.5 345.341.00% 43% EBITDA margin EBIT margin Net income growth 15.2 Taxes Minority interest expense / (income) (Income) / loss from joint ventures Net Income 123.415.68 3.0 0.7 Gross margin SG&A (as % of sales) 58.5 19.0942 (0.55 156.72 334.2 -0.2 (4.46 1.35 1.03 1.

443.947.532.21 370.9 2% 58.410.2648 -0.20 0 0 0 0 -7.422 129.502.30 352.1559 123.13 162.24 2 363.90 1.066.48 8 336.17 -7.00 -10.0 $250.0% .357.2 -0.61 1.11 1.67 6 345.24 3.00% 43% 2% 58.2013 2014 2015 2016 3.17 -7.19 361.37 120.00 -10.493.00% 43% 2% 58.467.424.56 513.48 1.96 3.04 169.0% 35.3 $239.496.01 523.42 2.438.08 2.986.6282 -0.2 -10.1 $245.17 -7.43 159.00 126.025.00 $233.68 1.96 1.472.00% 43% 15% 15% 15% 15% 35.0% 35.17 343.05 534.40 1.2 -0.04 1.92 4 354.02 165.562.55 1.31 1.68 503.2 -10.0% 35.29 3.00% 43% 2% 58.

86 71.02 339.83 483.47 1.88 441.04 58.00 -3.24 59.04 4.00 0.24 47.655.83 483.50 12.31 5.48 8.66 156.00 984.50 -3.00 -0.93 2.00 1.050.83 483.36 524.42 -0.395.39 208.71 2.51 57.91 5.462.83 483.73 359.80 530.70 47.88 212.88 26.84 81.83 .15 1.71 2.24 55.2 -10. 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 229.88 1.00 495.55 0.955.865.2 -10.48 352.647.Balance Sheet 2010 2011 2012 2013 2014 10.75 71.331.98 2.01 56.51 5.655.20 440.00 11.42 81.53 84.476.95 636.93 1.71 2.81 528.655.58 442.61 492.06 25.00 0.71 2.10 -0.099.00 227.71 2.42 -3.52 27.00 437.00 233.81 1.35 10.967.56 147.2 -10.02 -0.41 Cash Accounts receivable Inventories Other current assets Total current assets PP&E.56 177.62 216.32 -2.72 1.83 483.00 11.56 157.149.00 11.24 48.46 204.54 1.73 4.475.492.786.51 55.00 1.77 202.11 4.2 -10.483.12 162.49 525.56 167.740.32 624.88 26.279.11 Total Equity 1.32 345.468.73 71.36 1.980.01 Total Equity + Liabilities balance 5.71 5.99 56.558.07 142.53 3.00 5.14 48.86 4.909.97 27.69 4.11 71.61 649.24 51.35 159.74 51.81 2.00 239.90 55.23 338.655.67 6.944.41 441.932.984.500.00 0.655.61 82.11 619.507.30 662.58 59.07 1.89 1.69 71.64 527.58 86.92 335.56 137.72 0.

66 .07 150 216.23 233.00 0.00 0.00 5.00 0.67 0.00 0.40 -216.00 0.34 -32.00 0.00 216.00 8.59 16.00 0.04 167.14 171.00 36.40 0.34 0.00 0.00 0.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 0.67 0.00 0.58 223.00 0.80 0.00 0.00 6.40 0.00 0.00 0.67 -223.66 10.00 223.00 10.00 0.00 32.66 16.00 0.80 0.25 -19.00 0.58 164.00 0.00 -196.00 0.14 0.87 229.00 -196.00 16.00 5.05 0.

98 1.74 .94 169.905.655.24 2.70 62.24 49.00 4.10 5.71 1.56 197.005.71 2.45 71.34 52.92 4.58 221.2 -10.00 2.2 -10.24 52.00 -0.45 5.00 250.86 225.655.98 165.02 -2.38 0.509.91 4.411.031.00 538.27 244.43 49.475.56 187.00 0.83 483.10 89.639.78 28.79 689.224.93 2.71 2.22 549.83 483.15 -2.2015 2016 449.170.10 71.07 366.99 2.518.71 2.76 3.79 28.68 -0.14 61.49 374.77 88.02 675.93 458.00 2.

65 227.00 30.70 0.24 174.00 30.70 30.00 0.00 34.80 0.43 0.14 231.00 -196.70 5.0.70 0.43 0.50 0.43 .80 0.00 -196.43 34.00 30.23 0.00 34.00 0.34 178.00 5.00 34.00 0.

99 56.06 25.87 5% 3.35 3.40 5.0% 6.355.48 352.15% 3.51 57.00 25% 6% 3.08 380.25) (1.88 26.46 3.0% 10.84 81.55 5.08 1.98) (111.500.58 5% 3.7% 142.7% 162.5 95.357.483.90 55.357.0% 10.5% 159.7% 49 7.46 33.50 1.0% 9.73 359.341.00 25% 6% 55.42 81.07 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 3.08 16.92 335.88) (99.23 25.31 Working capital balances Accounts receivable Inventories Other current assets 437.32 208.483.25% 3.7% 55.475.23 -162.02 7.0% 55 25% 6% 55.11 3.7% 48 7.492.291.49 441.7% 50.55 1.55 171.00 7.36 441.51 164.02) (11.00 1.195.30 12% 3.438.8% 1.357.23 338.492.83) 50.57 1.57 6.03 1.40 167.30 Net Working capital (98.58 59.87 -159.468.424.00) (122.424.42) (134.01 1.81 Accounts payable Accrued liabilities Accrued income taxes 202.14 1.40 1.23 5% 127.475.7% 156.11 204.5% .2 0.227.00 1.227.48 1.227.61 82.01 150 -142.74 1.10) (11.03 150 3.382.52 27.51 1.58 -156.195.97 27.00 1.14 171.88 26.468.424.53 84.20% 3.74 167.7% 47 7.80 442.03 8.00 25% 6% 55.42) (11.04 58.410.58 0.10 3.291.32 345.2010 2011 2012 2013 2014 3.00 1.14 0.57 164.61 216.0% 10.35 1.32 1.64 440.5% 8.95 212.67 95.04 0.58 86.67 1.195.48 95.35 95.70 3.291.

00 59.04 59.86 .00 48.58 -10.73 48.73 5.11 55.00 55.00 6.07 -12.04 -8.00 51.50 12.00 47.00 10.Amortization Expense Expense as % of intangibles Beginning balance Additions Amortization Ending Balance 19.04 8.69 5.14 -6.69 51.00 8.11 6.

22 221.90 178.500.65 -165.00 25% 6% 3.518.15% 3.14 5% 165.15% .93) (139.24 1.77 88.2015 2016 3.00 1.14 61.562.90 5.68) (2.00 458.74) 47 7.70 62.78 28.509.509.79 28.49 374.7% 47 7.7% 55.04 174.562.14 -169.24 95.65 5% 3.00 1.493.00 25% 6% 55.90 1.562.24 0.43 1.92 1.42 449.1% 1.0% 169.43 178.79 (136.07 366.496.67) (2.92 95.34 3.04 1.08 3.70 174.0% 11.493.04 5.02 225.34 0.493.0% 11.467.10 89.

24 -4.10 49.00 52.00 49.45 .4.00 47.00 2.34 -2.10 5.86 5.

00 30.14 0.476.34 19.80 0.00 Interest Expense Revolver Average Balance % interest Interest Expense 383.74 2% 2.476.00 0 1.08 1.00 984.476.33 223.00 0.476.476.40 2% 4.10 2% 2.59 0.00 0.00 -223.00 0.04 885.00 0 1.00 5% 0.00 8% 118.00 216.00 0.67 51.67 2013 229. 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 .69 129.476.00 6% 29.67 0.00 1.Debt Schedule 2011 216.93 0.00 6% 59.76 5% 8.00 8% 118.08 1.50 0.19 35.08 216.00 -19.00 1.00 -32.476.00 0.00 0 1.00 1.61 134.00 0.80 6% 41.60 1.65 2% 2.00 -196.00 0 1.59 0.80 5% 19.19 163.00 984.476.00 1.80 5% 0.328 492.79 9.59 19.40 2012 223.476.80 0.40 590.00 -216.04 984.00 984.93 51.8 393.40 -196.136 688.60 0.00 -196.34 2014 233.70 492.476.00 0 1.00 0 984.476.60 6% 53.49 0.00 -196.40 0.00 8% 118.05 0.00 8% 118.00 8% 118.00 -196.00 36.47 130.00 0.80 0.00 32.00 223.476.476.25 2015 227.20 -196.476.60 275.8 590.00 Senior Loan Average Balance % interest Interest Expense 984.08 1.00 0.476.20 787.52 1.58 Term Fees Amortz.76 5% 1.40 275.00 6% 59.67 2% 4.08 1.00 0 984.8 787.00 0.

2) $30.4 $30.9 ($7.2 .4 ($7.4 $2.8 $3.2 Beginning balance $59.2) $51.7 $29.5 Amortization Ending Balance $37.2) $44.8 $19.5 ($7.0 $1.0 Totals $9.0 10.7 ($7.7 $44.0 $7.5 $59.0 7.9 $51.0 ($7.2) $23.Revolving credit facility Bank term loan Subordinated debt 7.2) $37.

80 1.476.00 0.00 295.43 0.08 132.00 393.712 1.476.00 0.20 6% 17.83 2% 2.00 0 1.00 0.00 8% 118.66 .00 5% 0.8 196.476.2016 231.00 34.80 0.23 0.60 -196.00 -196.00 0.

2) $16.$23.0 .2 ($7.

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