High-Quality Investment Bankers should pursue Strategy #1 and make an offer to purchase ITGroup for $1 billion. This strategy has the highest expected returns (IRR) of 22.3-26.3% and keeps ITGroup as a single entity. The capital structure would include $110.2 million in cash, $376.4 million in senior debt, $100.4 million in mezzanine debt, and $547.3 million in equity. This leveraged buyout values ITGroup at a transaction value to EBITDA multiple of 10-10.5x.

1. 2016 ACG Cup Competition
Team 6

2. • Objective
• Proposal
• Qualitative Analysis
− Company Analysis
− Industry Analysis
• Quantitative Analysis
− Purchase Price Analysis
− IRR Analysis
• Summary Conclusion
• Alternative options
• Appendix
Index
Introduction Proposal Company Industry Quantitative Summary Alternatives Appendix

3.  Conduct a qualitative and quantitative analysis to advise High-
Quality Investment Bankers on:
• Interest in purchasing ITGroup
• Purchase SSIT Segment and Combine with Integrate Co.
• Provide Mezzanine Debt in Purchase of ITGroup
• Alternative options
• Exit opportunities
Objective
Introduction Proposal Company Industry Quantitative Summary Alternatives Appendix

4.  We recommend High-Quality Investment Bankers should:
Proposal
Introduction Proposal Company Industry Quantitative Summary Alternatives Appendix

5. Cobie Okafor
Company Analysis

6. SWOT Analysis
Introduction Proposal Company Industry Quantitative Summary Alternatives Appendix
Weaknesses
ITGroup

SSIT
 Slow top line growth and little contribution.
 Performed worse than its comparable peer
universe
Threats
ITGroup
 Low industry future expected growth
 Instability in domestic and foreign markets
SSIT
 Low industry growth rate
 Incur costs to become standalone entity
Strengths
ITGroup
 Long , established company
 On track to meet (or beat) projected earnings
 High growth projections for 2016 and 2017
SSIT
 Market outreach and client exposure
 Responsible for 2% of IT Services Unit’s
annual revenue
Opportunities
ITGroup
 High industry growth rate
 Increase value through sale
 Expansion in Northern and Southern US
 Profit after exit
SSIT
 High future industry growth rate
 Synergies through acquisition
ExternalInternal
Positive Negative

7. Jose Elizundia
Industry Analysis

8. Porter’s Five Forces: IT Consulting Industry
Introduction Proposal Company Industry Quantitative Summary Alternatives Appendix
• High customer loyalty
• Low price sensitivity
• Medium switching costs
• Recurring purchases
Buyer Power
LOW
• Supplier competition
• Low cost of inputs
• Low switching costs
Supplier Power
LOW
• Buyer propensity to
substitute
• Substandard product
• Availability of close
substitute
Threats of Substitution
MED
• Economies of scale
• Capital requirements
• Customer loyalty to
established brands
• Industry profitability
Threat of New Entrants
HIGH
• Sustainable competitive
advantage through
innovation
• Firm competition ratio
Rivalry
MED

9. Porter’s Five Forces: Semiconductor Manufacturing Industry
• Price sensitivity
• RFM analysis
• Buyer switching cost
relative to firms switching
cost
Buyer Power
HIGH
• Low switching costs
• Economies of scale
• Low product differentiation
Supplier Power
LOW
• Abundance of substitute
products
• Low switching costs
• High buyer propensity to
substitute
Threats of Substitution
HIGH
• Economies of scale
• High capital requirements
• Access to distribution
Threat of New Entrants
LOW
• Competitors are big
• High exit barriers
• Low product differentiation
Rivalry
HIGH
Introduction Proposal Company Industry Quantitative Summary Alternatives Appendix

10. Farouq Masoudy
Quantitative Analysis

11. Strategy #1 – Purchase ITGroup
Introduction Proposal Company Industry Quantitative Summary Alternatives Appendix
Cash
10%
Senior debt
33%
Mezzanine
debt
9%
Equity
48%
Sources Amount
Cash $110.2
Senior debt 376.4
Mezzanine debt 100.4
Equity 547.3
Total sources $1,134.2
IRR Returns Year 4 Year 5 Year 6
9.5x
$1,225.4
22.3%
$1,510.0
22.5%
$1,849.5
22.5%
EBITDA Exit 10.0x
$1,308.2
24.3%
$1,605.3
24.0%
$1,959.4
23.7%
10.5x
$1,391.1
26.3%
$1,700.6
25.5%
$2,069.3
24.8%

12. Strategy #2 – Purchase SSIT & Combine with
Integrate Co.
Introduction Proposal Company Industry Quantitative Summary Alternatives Appendix
Cash
10%
Senior debt
36%
Equity
54%
Sources Amount
Cash $67.6
Bank debt 248.4
Equity 366.4
Total sources $682.3
IRR Returns Year 4 Year 5 Year 6
9.1x
$788.8
21.1%
$939.9
20.7%
$1,115.5
20.4%
EBITDA Exit 9.6x
$834.4
22.8%
$990.8
22.0%
$1,172.5
21.4%
10.1x
$880.1
24.5%
$1,041.7
23.2%
$1,229.5
22.4%

13. Strategy #3 – Provide Mezzanine Debt in
Purchase of ITGroup
Introduction Proposal Company Industry Quantitative Summary Alternatives Appendix
Interest rate 2018 2019 2020
10.00% 16.59% 16.15% 15.85%
11.50% 16.18% 15.62% 15.22%
13.00% 15.75% 15.08% 14.56%
% Equity 2018 2019 2020
3.00% 21.66% 21.25% 20.88%
5.00% 16.18% 15.62% 15.22%
7.00% 10.09% 9.00% 8.14%
% Debt 2018 2019 2020
10.00% 16.46% 15.92% 15.51%
12.50% 16.18% 15.62% 15.22%
15.00% 15.89% 15.33% 14.93%

14. Strategy #3 – Monte Carlo Simulation
Introduction Proposal Company Industry Quantitative Summary Alternatives Appendix
2018 Mean: 19%
2019 Mean: 18.5%
2020 Mean: 18.2%
*Assumptions:
• 10-15% debt
• 10-13% interest rate
• 3-7% equity participation
*1000 trials
95% certainty level

15. Octavio Reyes
Summary
Recommendation

16. Review
Introduction Proposal Company Industry Quantitative Summary Alternatives Appendix
Cons
Negative expectations for
growth beyond projected
period.
• Strategy #1 Strategy #2
• Strategy #3
Pros
No revolver (No deficit)
Strong growth in future
years
ITGroups remains as a
single entity
Pros
Generates new cash flow
from 2017-2020
• Expands product
market to
aerospace &
defense markets
Cons
Combined EBIDTA of 8.5
Synergies tend not to work out
most of the time
Not valuable enough (reduction
of cost by 1%)
• Without synergy
• 19% equity return before
EBITDA
• With synergy
• 20.1% equity return
before EBITDA
• *Generally speaking - Most of
the values remain with the
shareholders of the acquiring
company
Pros Cons
Lower returns overall
Company loses leverage
to debtors (worst case
scenario: bankruptcy)

17.  Pursue Strategy #1
 Make an offer to purchase ITGroup - $1.0 billion
 Capital Structure
 Higher expected returns (IRR)
 ITGroup remains a single entity
Recommendation
Introduction Proposal Company Industry Quantitative Summary Alternatives Appendix
Low Average High
22.3% 24.8% 26.3%
Cumulative
Pro Forma
Sources Amount % of Total EBITDA
Cash $110.2 9.7% 1.1x
Bank debt 376.4 33.2% 4.8x
Subordinated debt 100.4 8.8% 5.8x
Sponsor's equity 547.3 48.3% 11.3x
Total sources $1,134.2 100.0% 11.3x
Uses Amount % of Total
Purchase of equity $1,083.0 95.5%
Refinancing of existing debt 30.8 2.7%
Transaction expenses @ 2.0% 20.4 1.8%
Total uses $1,134.2 100.0%

18. Alternative Options

19. • Return to IPO initiative
• Keep SSIT segment
• Implement cost-cutting initiatives.
Alternative Options
Introduction Proposal Company Industry Quantitative Summary Alternatives Appendix

20. Appendix

21. Strategy 1 - Leveraged Buyout of ITGroup
Introduction Proposal Company Industry Quantitative Summary Alternatives Appendix
Leveraged Buyout of ITGroup
Figures in millions, except per share Cumulative
Pro Forma Financing
Transaction Assumptions Sources Amount % of Total EBITDA assumptions
Current share price $1,111.00 Cash $110.2 9.7% 1.1x $0.0 Minimum cash level
x Offer price premium NM Bank debt 376.4 33.2% 4.8x 3.75x Bank debt / EBITDA
Offer price per share NM Subordinated debt 100.4 8.8% 5.8x 1.0x Subordinated debt / EBITDA
Target diluted shares outstanding 0.000 Sponsor's equity 547.3 48.3% 11.3x
Offer Value $1,083.0 Total sources $1,134.2 100.0% 11.3x
+ Debt 30.8
+ Preferred 0.0 Uses Amount % of Total
+ Noncontrolling interest 0.0 Purchase of equity $1,083.0 95.5%
- Cash & equivalents (110.2) Refinancing of existing debt 30.8 2.7% 1%
Transaction Value $1,003.6 Transaction expenses @ 2.0% 20.4 1.8% 2.0% Transaction fee
Total uses $1,134.2 100.0%
Transaction Multiples Pro Forma IRR Returns Year 4 Year 5 Year 6
Transaction Value / Sales 1.61x 9.5x 22.3% 22.5% 22.5%
Transaction Value / EBITDA 10.0x EBITDA Exit 10.0x 24.3% 24.0% 23.7%
Transaction Value / EBIT 10.2x 10.5x 26.3% 25.5% 24.8%
Pro Forma EBITDA $100.4
Pro Forma Projected year ending December 31,
Credit stats 2015 2016 2017 2018 2019 2020 2021 2022 2023
Senior Debt / EBITDA 3.8x 3.2x 2.6x 2.0x 1.5x 1.0x 0.6x 0.2x 0.0x
Total Debt / EBITDA 4.8x 4.1x 3.4x 2.9x 2.4x 1.9x 1.5x 1.1x 0.8x
EBITDA / Interest 40.1x 2.9x 3.3x 3.8x 4.4x 5.2x 6.2x 7.5x 9.0x
EBITDA - CapEx / Interest 37.9x 2.7x 3.1x 3.6x 4.1x 4.8x 5.7x 6.9x 8.3x

22. Introduction Proposal Company Industry Quantitative Summary Alternatives Appendix
x Cash Flow Analysis for
Figures in millions
Historical year ending December 31, Projected year ending December 31, 2015-2023
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 CAGR
Sales $520.7 $569.0 $624.7 $685.9 $756.6 $838.3 $933.0 $1,043.1 $1,171.4 $1,321.3 $1,497.1 11.5%
Cost of goods sold 423.4 462.6 506.0 555.6 610.6 674.0 747.3 832.4 931.3 1,046.5 1,181.2
Gross profit 97.3 106.4 118.7 130.3 146.0 164.3 185.7 210.7 240.1 274.8 315.9 13.0%
SG&A 18.2 18.3 18.3 18.8 19.2 19.6 19.9 20.2 20.3 20.3 20.0
EBITDA 79.1 88.1 100.4 111.6 126.8 144.7 165.7 190.5 219.8 254.5 295.9 14.5%
EBITDA Margin 15.2% 15.5% 16.1% 16.3% 16.8% 17.3% 17.8% 18.3% 18.8% 19.3% 19.8%
Less: Depreciation (1.7) (1.9) (2.0) (2.2) (3.4) (4.8) (6.7) (9.2) (12.5) (16.7) (22.0)
Less: Amortization 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
EBIT 77.6 86.4 98.5 109.5 123.6 140.1 159.2 181.5 207.5 238.1 274.0 13.6% Tax Rate
Less: Taxes @ 40.0% (31.0) (34.6) (39.4) (43.8) (49.5) (56.0) (63.7) (72.6) (83.0) (95.2) (109.6) 40.0%
Tax-effected EBIT 46.5 51.8 59.1 65.7 74.2 84.0 95.5 108.9 124.5 142.8 164.4 13.6%
Plus: Depreciation and amortization 1.9 2.0 2.2 3.4 4.8 6.7 9.2 12.5 16.7 22.0
Less: Capital expenditures (3.4) (5.5) (6.2) (7.6) (9.2) (11.2) (13.6) (16.4) (19.8) (24.0)
Less: Additions to intangibles 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
(Increase)/decrease in working capital (14.7) (18.4) (6.9) (9.1) (10.5) (12.3) (14.3) (16.8) (19.7) (23.2)
Unlevered Free Cash Flow 35.6 37.2 54.9 60.9 69.1 78.8 90.2 103.8 120.0 139.4 17.9%
Less: Interest expense (2.5) (2.5) (38.6) (38.4) (38.1) (37.6) (36.8) (35.6) (34.0) (32.8)
Plus: Tax shield on interest @ 40.0% 1.0 1.0 15.4 15.4 15.3 15.0 14.7 14.2 13.6 13.1
Levered Free Cash Flow Before Debt Paydown 34.1 35.7 31.7 37.8 46.2 56.2 68.2 82.5 99.6 119.7 16.3%
Scheduled debt payments 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Excess cash available for debt sweep 31.7 37.8 46.2 56.2 68.2 82.5 99.6 119.7
Required deficit funding 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Application of excess cash
Bank debt (23.8) (28.4) (34.7) (42.2) (51.1) (61.8) (74.7) (59.7)
Subordinated debt 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Net change in cash $7.9 $9.5 $11.6 $14.1 $17.0 $20.6 $24.9 $60.0

23. Introduction Proposal Company Industry Quantitative Summary Alternatives Appendix
Historical year ending December 31, Projected year ending December 31,
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Operating Assumptions Steps
Sales growth NA 9.3% 9.8% 9.8% 10.3% 10.8% 11.3% 11.8% 12.3% 12.8% 13.3% 0.5%
Cost of goods sold (as a % sales) 81.3% 81.3% 81.0% 81.0% 80.7% 80.4% 80.1% 79.8% 79.5% 79.2% 78.9% (0.3%)
SG&A (as a % sales) 3.5% 3.2% 2.9% 2.7% 2.5% 2.3% 2.1% 1.9% 1.7% 1.5% 1.3% (0.2%)
Capital Expenditure Assumptions
CapEx (as a % sales) NA 0.6% 0.9% 0.9% 1.0% 1.1% 1.2% 1.3% 1.4% 1.5% 1.6% 0.1%
Depreciation (as a % of CapEx) NA 55.6% 36.4% 36.4% 44.3% 52.3% 60.2% 68.2% 76.1% 84.1% 92.0% 8.0%
Additions to Intangibles ($ amount) NA $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0
Amortization ($ amount) NA 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

24. Introduction Proposal Company Industry Quantitative Summary Alternatives Appendix
x Debt Schedule for ITGroup
Figures in million
Projected year ending December 31,
2016 2017 2018 2019 2020 2021 2022 2023
Bank debt
Beginning balance $376.4 $352.5 $324.2 $289.5 $247.4 $196.2 $134.4 $59.7
Mandatory repayment 0.0% 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Application of excess cash 75.0% (23.8) (28.4) (34.7) (42.2) (51.1) (61.8) (74.7) (59.7)
Required deficit funding 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Ending balance $352.5 $324.2 $289.5 $247.4 $196.2 $134.4 $59.7 $0.0
Average balance $364.4 $338.4 $306.8 $268.4 $221.8 $165.3 $97.0 $29.8
Interest rate 7.0% 7.0% 7.0% 7.0% 7.0% 7.0% 7.0% 7.0%
Interest expense on bank debt $25.5 $23.7 $21.5 $18.8 $15.5 $11.6 $6.8 $2.1
Subordinated debt
Beginning balance $100.4 $113.4 $128.1 $144.8 $163.6 $184.9 $208.9 $236.1
Mandatory repayment 0.0% 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Application of excess cash 0.0% 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Ending balance $100.4 $113.4 $128.1 $144.8 $163.6 $184.9 $208.9 $236.1
Average balance $100.4 $113.4 $128.1 $144.8 $163.6 $184.9 $208.9 $236.1
Interest rate 13.0% 13.0% 13.0% 13.0% 13.0% 13.0% 13.0% 13.0%
Interest expense on subordinated debt $13.0 $14.7 $16.7 $18.8 $21.3 $24.0 $27.2 $30.7
Cash
Beginning balance $0.0 $7.9 $17.4 $28.9 $43.0 $60.0 $80.7 $105.6
Net change in cash 7.9 9.5 11.6 14.1 17.0 20.6 24.9 60.0
Ending balance $7.9 $17.4 $28.9 $43.0 $60.0 $80.7 $105.6 $165.6

25. Introduction Proposal Company Industry Quantitative Summary Alternatives Appendix
x Returns Analysis: EBITDA Multiple Method
Figures in million
Projected years
Initial investment: $547.3 2016 2017 2018 2019 2020 2021 2022 2023
EBITDA $111.6 $126.8 $144.7 $165.7 $190.5 $219.8 $254.5 $295.9
Implied enterprise value @ EBITDA multiple of: Step
9.5x $1,059.8 $1,204.9 $1,374.9 $1,574.5 $1,809.9 $2,088.1 $2,418.2 $2,810.9 0.5x
10.0x 1,115.6 1,268.3 1,447.2 1,657.4 1,905.1 2,198.0 2,545.5 2,958.9
10.5x 1,171.4 1,331.7 1,519.6 1,740.3 2,000.4 2,307.9 2,672.7 3,106.8
LESS: Debt ($452.9) ($437.6) ($417.7) ($392.2) ($359.9) ($319.3) ($268.6) ($236.1)
PLUS: Cash 7.9 17.4 28.9 43.0 60.0 80.7 105.6 165.6
Implied equity value @ EBITDA multiple of:
9.5x $614.9 $784.7 $986.2 $1,225.4 $1,510.0 $1,849.5 $2,255.2 $2,740.4
10.0x 670.6 848.2 1,058.5 1,308.2 1,605.3 1,959.4 2,382.4 2,888.3
10.5x 726.4 911.6 1,130.9 1,391.1 1,700.6 2,069.3 2,509.7 3,036.3
Equity return @ EBITDA multiple of:
9.5x 12.4% 19.7% 21.7% 22.3% 22.5% 22.5% 22.4% 22.3%
10.0x 22.5% 24.5% 24.6% 24.3% 24.0% 23.7% 23.4% 23.1%
10.5x 32.7% 29.1% 27.4% 26.3% 25.5% 24.8% 24.3% 23.9%
x END This model is provided "as is". Training The Street, Inc. and their affiliates have no liability arising out of the use of this model.
x Returns Analysis: EBIT DA M ultiple M ethod
Figures in million
Proje cte d ye a rs
Initia l inve stme nt: $547.3 2016 2017 2018 2019 2020 2021 2022 2023
EBITDA $111.6 $126.8 $144.7 $165.7 $190.5 $219.8 $254.5 $295.9
Implied enterpris e value @ EBITDA multiple of: Ste p
9.5x $1,059.8 $1,204.9 $1,374.9 $1,574.5 $1,809.9 $2,088.1 $2,418.2 $2,810.9 0.5x
10.0x 1,115.6 1,268.3 1,447.2 1,657.4 1,905.1 2,198.0 2,545.5 2,958.9
10.5x 1,171.4 1,331.7 1,519.6 1,740.3 2,000.4 2,307.9 2,672.7 3,106.8
LESS: Debt ($452.9) ($437.6) ($417.7) ($392.2) ($359.9) ($319.3) ($268.6) ($236.1)
PLUS: Cas h 7.9 17.4 28.9 43.0 60.0 80.7 105.6 165.6
Implied equity value @ EBITDA multiple of:
9.5x $614.9 $784.7 $986.2 $1,225.4 $1,510.0 $1,849.5 $2,255.2 $2,740.4
10.0x 670.6 848.2 1,058.5 1,308.2 1,605.3 1,959.4 2,382.4 2,888.3
10.5x 726.4 911.6 1,130.9 1,391.1 1,700.6 2,069.3 2,509.7 3,036.3
Equity return @ EBITDA multiple of:
9.5x 12.4% 19.7% 21.7% 22.3% 22.5% 22.5% 22.4% 22.3%
10.0x 22.5% 24.5% 24.6% 24.3% 24.0% 23.7% 23.4% 23.1%
10.5x 32.7% 29.1% 27.4% 26.3% 25.5% 24.8% 24.3% 23.9%
x EN D Thi s model i s provi ded "as i s ". Trai ni ng The Street, Inc . and thei r affi l i ates have no l i ab i l i ty ari s i ng out of the us e of thi s model .

26. Introduction Proposal Company Industry Quantitative Summary Alternatives Appendix
Working Capital Schedule for ITGroup
Figures in millions
Historical year ending December 31, Projected year ending December 31,
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Sales $520.7 $569.0 $624.7 $685.9 $756.6 $838.3 $933.0 $1,043.1 $1,171.4 $1,321.3 $1,497.1
Cost of sales 423.4 462.6 506.0 555.6 610.6 674.0 747.3 832.4 931.3 1,046.5 1,181.2
Accounts receivable, net $92.5 $113.4 $138.9 $152.2 $170.0 $190.6 $214.7 $242.9 $276.0 $314.9 $360.9
Inventories 17.2 17.9 18.4 19.8 20.9 22.2 23.5 25.1 26.8 28.7 30.7
Other current assets 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Total non-cash current assets: $109.7 $131.3 $157.3 $172.0 $190.9 $212.8 $238.3 $268.0 $302.8 $343.6 $391.7
Accounts payable $15.9 $17.7 $19.7 $21.6 $24.6 $28.1 $32.2 $37.0 $42.6 $49.3 $57.3
Accrued liabilities 46.0 49.5 53.2 58.4 63.7 69.7 76.7 84.7 93.9 104.6 117.0
Other current liabilities 3.5 5.1 7.0 7.7 9.2 11.1 13.3 15.9 19.0 22.7 27.3
Total non-debt current liabilities $65.4 $72.3 $79.9 $87.7 $97.5 $108.9 $122.1 $137.5 $155.5 $176.7 $201.6
Net working capital / (deficit) $44.3 $59.0 $77.4 $84.3 $93.4 $103.9 $116.2 $130.5 $147.3 $166.9 $190.1
x (Increase)/decrease in working capital ($14.7) ($18.4) ($6.9) ($9.1) ($10.5) ($12.3) ($14.3) ($16.8) ($19.7) ($23.2)
Working Capital Assumptions Step function
x Accounts receivable (days collection period) 64.8 72.7 81.2 81.0 82.0 83.0 84.0 85.0 86.0 87.0 88.0 1.0
Inventories (days outstanding) 14.8 14.1 13.3 13.0 12.5 12.0 11.5 11.0 10.5 10.0 9.5 (0.5)
Accounts payable (days outstanding) 13.7 14.0 14.2 14.2 14.7 15.2 15.7 16.2 16.7 17.2 17.7 0.5
Other current assets (as % of sales) 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0 0.0%
Accrued liabilities (as % of sales) 8.8% 8.7% 8.5% 8.5% 8.4% 8.3% 8.2% 8.1% 8.0% 7.9% 7.8% -0.001 (0.1%)
Other current liabilities (as % of sales) 0.7% 0.9% 1.1% 1.1% 1.2% 1.3% 1.4% 1.5% 1.6% 1.7% 1.8% 0.001 0.1%

27. Strategy 2 - Leveraged Buyout of SSIT Segment
Introduction Proposal Company Industry Quantitative Summary Alternatives Appendix
Leveraged Buyout of SSIT Segment
Figures in millions, except per share Cumulative
Pro Forma Financing
Transaction Assumptions Sources Amount % of Total EBITDA assumptions
Current share price $601.86 Cash $67.6 9.9% 1.1x $0.0 Minimum cash level
x Offer price premium NM Bank debt 248.4 36.4% 5.1x 4.0x Bank debt / EBITDA
Offer price per share NM Subordinated debt 0.0 0.0% 5.1x 0.0x Subordinated debt / EBITDA
Target diluted shares outstanding 0.000 Sponsor's equity 366.4 53.7% 11.0x
Offer Value $638.5 Total sources $682.3 100.0% 11.0x
+ Debt 31.1
+ Preferred 0.0 Uses Amount % of Total
+ Noncontrolling interest 0.0 Purchase of equity $638.5 93.6%
- Cash & equivalents (67.6) Refinancing of existing debt 31.1 4.6%
Transaction Value $602.0 Transaction expenses @ 2.0% 12.8 1.9% 2.0% Transaction fee
Total uses $682.3 100.0%
Transaction Multiples Pro Forma IRR Returns Year 4 Year 5 Year 6
Transaction Value / Sales 2.24x 9.1x 21.1% 20.7% 20.4%
Transaction Value / EBITDA 9.6x EBITDA Exit 9.6x 22.8% 22.0% 21.4%
Transaction Value / EBIT 10.0x 10.1x 24.5% 23.2% 22.4%
Pro Forma EBITDA $62.1
Pro Forma Projected year ending December 31,
Credit stats 2015 2016 2017 2018 2019 2020 2021 2022 2023
Senior Debt / EBITDA 3.9x 2.7x 2.1x 1.5x 1.0x 0.5x 0.0x 0.0x 0.0x
Total Debt / EBITDA 3.9x 2.7x 2.1x 1.5x 1.0x 0.5x 0.0x 0.0x 0.0x
EBITDA / Interest 30.0x 4.6x 6.2x 8.3x 12.1x 21.1x 67.9x #DIV/0! #DIV/0!
EBITDA - CapEx / Interest 27.6x 4.2x 5.7x 7.6x 11.0x 19.1x 61.2x #DIV/0! #DIV/0!

28. Introduction Proposal Company Industry Quantitative Summary Alternatives Appendix
x Cash Flow Analysis for
Figures in millions
Historical year ending December 31, Projected year ending December 31, 2015-2023
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 CAGR
Sales $220.3 $244.9 $269.0 $292.8 $315.3 $350.0 $390.2 $437.0 $491.7 $555.6 $630.6 11.2%
Cost of goods sold 147.8 164.9 178.1 193.8 208.7 231.7 258.3 289.3 325.5 367.8 417.4
Gross profit 72.5 80.0 90.9 99.0 106.6 118.3 131.9 147.7 166.2 187.8 213.1 11.2%
SG&A 22.6 25.4 27.9 29.6 32.2 36.1 40.6 45.9 52.2 59.5 68.1
EBITDA 49.9 54.6 63.0 69.3 74.3 82.2 91.3 101.8 114.0 128.3 145.0 11.0%
EBITDA Margin 22.7% 22.3% 23.4% 23.7% 23.6% 23.5% 23.4% 23.3% 23.2% 23.1% 23.0%
Less: Depreciation (2.5) (2.8) (3.2) (3.5) (4.1) (4.9) (5.9) (7.2) (8.6) (10.5) (12.7)
Less: Amortization 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
EBIT 47.7 52.0 60.1 66.1 70.5 77.5 85.5 94.8 105.6 118.1 132.5 10.4% Tax Rate
Less: Taxes @ 40.0% (19.1) (20.8) (24.0) (26.4) (28.2) (31.0) (34.2) (37.9) (42.2) (47.2) (53.0) 40.0%
Tax-effected EBIT 28.6 31.2 36.0 39.6 42.3 46.5 51.3 56.9 63.4 70.8 79.5 10.4%
Plus: Depreciation and amortization 2.8 3.2 3.5 4.1 4.9 5.9 7.2 8.6 10.5 12.7
Less: Capital expenditures (4.5) (5.0) (5.3) (6.0) (7.0) (8.2) (9.6) (11.3) (13.3) (15.8)
Less: Additions to intangibles 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
(Increase)/decrease in working capital 3.3 (5.4) 57.4 2.1 3.1 3.7 4.3 5.1 6.0 7.2
Unlevered Free Cash Flow 32.8 28.9 95.3 42.5 47.5 52.7 58.8 65.8 74.0 83.6 14.2%
Less: Interest expense (2.5) (2.1) (15.1) (11.9) (9.9) (7.6) (4.8) (1.7) 0.0 0.0
Plus: Tax shield on interest @ 40.0% 1.0 0.8 6.0 4.8 4.0 3.0 1.9 0.7 0.0 0.0
Levered Free Cash Flow Before Debt Paydown 31.3 27.6 86.2 35.4 41.6 48.2 55.9 64.8 74.0 83.6 14.9%
Scheduled debt payments 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Excess cash available for debt sweep 86.2 35.4 41.6 48.2 55.9 64.8 74.0 83.6
Required deficit funding 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Application of excess cash
Bank debt (64.7) (26.5) (31.2) (36.1) (41.9) (48.0) 0.0 0.0
Subordinated debt 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Net change in cash $21.6 $8.8 $10.4 $12.0 $14.0 $16.8 $74.0 $83.6

29. Introduction Proposal Company Industry Quantitative Summary Alternatives Appendix
Historical year ending December 31, Projected year ending December 31,
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Operating Assumptions Steps
Sales growth NA 11.2% 9.8% 10.0% 10.5% 11.0% 11.5% 12.0% 12.5% 13.0% 13.5% 0.5%
Cost of goods sold (as a % sales) 67.1% 67.3% 66.2% 66.9% 66.9% 66.9% 66.9% 66.9% 66.9% 66.9% 66.9% 0.0%
SG&A (as a % sales) 10.3% 10.4% 10.4% 10.3% 10.4% 10.5% 10.6% 10.7% 10.8% 10.9% 11.0% 0.1%
Capital Expenditure Assumptions
CapEx (as a % sales) NA 1.8% 1.9% 1.8% 1.9% 2.0% 2.1% 2.2% 2.3% 2.4% 2.5% 0.1%
Depreciation (as a % of CapEx) NA 62.6% 64.5% 66.5% 68.5% 70.5% 72.5% 74.5% 76.5% 78.5% 80.5% 2.0%
Additions to Intangibles ($ amount) NA $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0
Amortization ($ amount) NA 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

30. Introduction Proposal Company Industry Quantitative Summary Alternatives Appendix
x Debt Schedule for SSIT Segment
Figures in million
Projected year ending December 31,
2016 2017 2018 2019 2020 2021 2022 2023
Bank debt
Beginning balance $248.4 $183.7 $157.2 $126.0 $89.9 $48.0 $0.0 $0.0
Mandatory repayment 0.0% 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Application of excess cash 75.0% (64.7) (26.5) (31.2) (36.1) (41.9) (48.0) 0.0 0.0
Required deficit funding 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Ending balance $183.7 $157.2 $126.0 $89.9 $48.0 $0.0 $0.0 $0.0
Average balance $216.1 $170.5 $141.6 $107.9 $68.9 $24.0 $0.0 $0.0
Interest rate 7.0% 7.0% 7.0% 7.0% 7.0% 7.0% 7.0% 7.0%
Interest expense on bank debt $15.1 $11.9 $9.9 $7.6 $4.8 $1.7 $0.0 $0.0
Cash
Beginning balance $0.0 $21.6 $30.4 $40.8 $52.8 $66.8 $83.6 $157.6
Net change in cash 21.6 8.8 10.4 12.0 14.0 16.8 74.0 83.6
Ending balance $21.6 $30.4 $40.8 $52.8 $66.8 $83.6 $157.6 $241.3

31. Introduction Proposal Company Industry Quantitative Summary Alternatives Appendix
x Returns Analysis: EBITDA Multiple Method
Figures in million
Projected years
Initial investment: $366.4 2016 2017 2018 2019 2020 2021 2022 2023
EBITDA $69.3 $74.3 $82.2 $91.3 $101.8 $114.0 $128.3 $145.0
Implied enterprise value @ EBITDA multiple of: Step
9.1x $627.4 $672.8 $743.8 $825.8 $921.0 $1,031.8 $1,161.0 $1,312.2 0.5x
9.6x 662.1 710.0 784.8 871.5 971.9 1,088.8 1,225.2 1,384.7
10.1x 696.8 747.2 825.9 917.1 1,022.8 1,145.8 1,289.3 1,457.2
LESS: Debt ($183.7) ($157.2) ($126.0) ($89.9) ($48.0) $0.0 $0.0 $0.0
PLUS: Cash 21.6 30.4 40.8 52.8 66.8 83.6 157.6 241.3
Implied equity value @ EBITDA multiple of:
9.1x $465.2 $546.0 $658.5 $788.8 $939.9 $1,115.5 $1,318.7 $1,553.5
9.6x 499.9 583.2 699.6 834.4 990.8 1,172.5 1,382.8 1,626.0
10.1x 534.6 620.4 740.7 880.1 1,041.7 1,229.5 1,447.0 1,698.4
Equity return @ EBITDA multiple of:
9.1x 27.0% 22.1% 21.6% 21.1% 20.7% 20.4% 20.1% 19.8%
9.6x 36.5% 26.2% 24.1% 22.8% 22.0% 21.4% 20.9% 20.5%
10.1x 45.9% 30.1% 26.4% 24.5% 23.2% 22.4% 21.7% 21.1%
x END This model is provided "as is". Training The Street, Inc. and their affiliates have no liability arising out of the use of this model.
x Returns Analysis: EBIT DA M ultiple M ethod
Figures in million
Proje cte d ye a rs
Initia l inve stme nt: $366.4 2016 2017 2018 2019 2020 2021 2022 2023
EBITDA $69.3 $74.3 $82.2 $91.3 $101.8 $114.0 $128.3 $145.0
Implied enterpris e value @ EBITDA multiple of: Ste p
9.1x $627.4 $672.8 $743.8 $825.8 $921.0 $1,031.8 $1,161.0 $1,312.2 0.5x
9.6x 662.1 710.0 784.8 871.5 971.9 1,088.8 1,225.2 1,384.7
10.1x 696.8 747.2 825.9 917.1 1,022.8 1,145.8 1,289.3 1,457.2
LESS: Debt ($183.7) ($157.2) ($126.0) ($89.9) ($48.0) $0.0 $0.0 $0.0
PLUS: Cas h 21.6 30.4 40.8 52.8 66.8 83.6 157.6 241.3
Implied equity value @ EBITDA multiple of:
9.1x $465.2 $546.0 $658.5 $788.8 $939.9 $1,115.5 $1,318.7 $1,553.5
9.6x 499.9 583.2 699.6 834.4 990.8 1,172.5 1,382.8 1,626.0
10.1x 534.6 620.4 740.7 880.1 1,041.7 1,229.5 1,447.0 1,698.4
Equity return @ EBITDA multiple of:
9.1x 27.0% 22.1% 21.6% 21.1% 20.7% 20.4% 20.1% 19.8%
9.6x 36.5% 26.2% 24.1% 22.8% 22.0% 21.4% 20.9% 20.5%
10.1x 45.9% 30.1% 26.4% 24.5% 23.2% 22.4% 21.7% 21.1%
x EN D Thi s model i s provi ded "as i s ". Trai ni ng The Street, Inc . and thei r affi l i ates have no l i ab i l i ty ari s i ng out of the us e of thi s model .

32. Introduction Proposal Company Industry Quantitative Summary Alternatives Appendix
Working Capital Schedule for SSIT Segment
Figures in millions
Historical year ending December 31, Projected year ending December 31,
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Sales $220.3 $244.9 $269.0 $292.8 $315.3 $350.0 $390.2 $437.0 $491.7 $555.6 $630.6
Cost of sales 147.8 164.9 178.1 193.8 208.7 231.7 258.3 289.3 325.5 367.8 417.4
Accounts receivable, net $60.9 $69.3 $78.6 $24.9 $26.8 $29.7 $33.1 $37.1 $41.8 $47.2 $53.6
Inventories 36.8 39.8 43.5 47.3 50.6 55.9 62.0 69.0 77.2 86.7 97.9
Other current assets 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Total non-cash current assets: $97.7 $109.1 $122.1 $72.2 $77.4 $85.6 $95.1 $106.1 $119.0 $133.9 $151.4
Accounts payable $23.3 $24.2 $28.0 $30.4 $33.1 $37.0 $41.6 $47.0 $53.3 $60.8 $69.6
Accrued liabilities 36.9 49.8 52.0 56.6 61.0 67.7 75.5 84.5 95.1 107.4 121.9
Other current liabilities 2.6 3.5 5.1 5.5 6.0 6.6 7.4 8.3 9.3 10.5 11.9
Total non-debt current liabilities $62.8 $77.5 $85.1 $92.6 $100.0 $111.3 $124.5 $139.8 $157.7 $178.7 $203.4
Net working capital / (deficit) $34.9 $31.6 $37.0 ($20.4) ($22.6) ($25.7) ($29.3) ($33.6) ($38.7) ($44.8) ($52.0)
x (Increase)/decrease in working capital $3.3 ($5.4) $57.4 $2.1 $3.1 $3.7 $4.3 $5.1 $6.0 $7.2
Working Capital Assumptions Step function
x Accounts receivable (days collection period) 114.7 117.1 33.7 31.0 31.0 31.0 31.0 31.0 31.0 31.0 31.0 0.0
Inventories (days outstanding) 90.9 88.2 89.1 89.1 88.6 88.1 87.6 87.1 86.6 86.1 85.6 (0.5)
Accounts payable (days outstanding) 57.7 53.5 57.3 57.3 57.8 58.3 58.8 59.3 59.8 60.3 60.8 0.5
Other current assets (as % of sales) 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
Accrued liabilities (as % of sales) 16.7% 20.3% 19.3% 19.3% 19.3% 19.3% 19.3% 19.3% 19.3% 19.3% 19.3% 0.0%
Other current liabilities (as % of sales) 1.2% 1.4% 1.9% 1.9% 1.9% 1.9% 1.9% 1.9% 1.9% 1.9% 1.9% 0.0%

33. Introduction Proposal Company Industry Quantitative Summary Alternatives Appendix
SSIT Income Statement
Fiscal Year Ended December 31,
2011 2012 2013 2014 2015 2016P 2017P 2018P 2019P 2020P
Sales $65.5 $72.4 $78.6 $83.6 $86.9 $91.2 $95.8
% Growth 10.6% 8.5% 6.4% 3.9% 5.0% 5.0%
Cost of Goods Sold 55.2 60.7 65.4 70.7 73.7 77.2 80.3
Gross Profit $10.3 $11.7 $13.2 $12.9 $13.1 $14.0 $15.5
Gross Profit Margin 15.7% 16.2% 16.7% 15.5% 15.1% 15.4% 16.2%
Selling General & Admin Exp. $6.2 $7.4 $7.3 $7.7 $7.2 $7.8 $8.5
Depreciation & Amortization 0.5 0.6 0.8 0.9 0.9 1.0 1.1
Other Operating Expenses/(Income) - - - - - - -
Total Operating Expenses $6.8 $8.0 $8.0 $8.5 $8.1 $8.8 $9.6
Operating Income $3.5 $3.7 $5.1 $4.4 $5.0 $5.3 $5.9
Operating Margin 5.4% 5.1% 6.5% 5.2% 5.8% 5.8% 6.1%
Interest Expense, Net 1.2 1.5 1.6 1.5 1.1 1.2 1.1
Other (Income) / Expenses 0 (0.1) 0 0 0 0 0
EBT $2.3 $2.3 $3.5 $2.9 $3.9 $4.0 $4.8
Income Taxes (1) 0.9 0.9 1.4 1.2 1.6 1.6 1.9
Net Income Available to Common $1.4 $1.4 $2.1 $1.7 $2.3 $2.4 $2.9
Plus: Taxes $0.9 $0.9 $1.4 $1.2 $1.6 $1.6 $1.9
Plus: Interest Expense 1.2 1.5 1.6 1.5 1.1 1.2 1.1
Plus: Depreciation & Amortization 0.5 0.6 0.8 0.9 0.9 1.0 1.1
Adjusted EBITDA $4.1 $4.5 $5.9 $5.2 $5.9 $6.3 $7.0
Adjusted EBITDA Margin 6.2% 6.1% 7.5% 6.3% 6.8% 6.9% 7.3%
Capital Expenditures $1.5 $1.9 $2.9 $2.5 $2.6 $3.0 $3.7
(1) Assuming 40% tax rate.
Sales % Growth 10.6% 8.5% 6.4% 3.9% 5.0% 5.0%
Gross Profit % of Revenue 15.7% 16.2% 16.7% 15.5% 15.1% 15.4% 16.2%
Selling General & Admin Exp. % of Revenue 9.5% 10.2% 9.3% 9.2% 8.3% 8.5% 8.9%
Depreciation & Amortization % of Revenue 0.8% 0.9% 1.0% 1.0% 1.1% 1.1% 1.2%
CapEx as % of Revenue 2.3% 2.6% 3.6% 3.0% 2.9% 3.3% 3.8%

34. Introduction Proposal Company Industry Quantitative Summary Alternatives Appendix
SSIT Balance Sheet
Fiscal Year Ended December 31,
2011 2012 2013 2014
Current Assets
Cash and Equivalents $5.3 $5.8 $6.4 $6.3
Accounts Receivable 6.0 6.6 7.2 7.7
Inventory 13.1 15.2 14.9 15.1
Total Current Assets $24.5 $27.6 $28.5 $29.0
Property and Equipment $8.9 $9.5 $13.3 $16.7
Land 3.3 3.4 3.4 3.5
Other Long-Term Assets 4.2 6.7 6.1 4.8
Total Assets $40.9 $47.3 $51.3 $54.0
Liabilities
Accounts Payable $6.0 $6.4 $6.7 $7.4
Accrued Exp. 9.2 10.9 11.0 11.7
Other Current Liabilities 0.4 0.0 0.2 0.6
Total Current Liabilities $15.6 $17.3 $17.9 $19.6
Long-Term Debt 15.2 18.4 19.7 18.8
Total Liabilities $30.8 $35.7 $37.6 $38.4
Net Stockholder's Equity $10.1 $11.5 $13.7 $15.6
Total Liabilities And Stockholders' Equity $40.9 $47.3 $51.3 $54.0
Net Working Capital $3.5 $4.5 $4.2 $3.1
% of Sales 5.37% 6.17% 5.32% 3.74%
Change in NWC NA $0.9 -$0.3 -$1.1

35. Introduction Proposal Company Industry Quantitative Summary Alternatives Appendix
Integrate Co. Income Statement
Fiscal Year Ended December 31,
2011 2012 2013 2014 2015 2016P 2017P 2018P 2019P 2020P % of Revenue
Sales $114.2 $128.1 $141.7 $161.3 $182.1 $201.6 $219.5
% Growth 12.2% 10.6% 13.8% 12.9% 10.7% 8.9%
Cost of Goods Sold $68.52 $74.1 $82.3 $94.2 $104.3 $114.9 $125.3
Gross Profit $45.7 $54.1 $59.4 $67.1 $77.7 $86.7 $94.2
Gross Profit Margin 40.0% 42.2% 41.9% 41.6% 42.7% 43.0% 42.9%
90% Selling General & Admin Exp. $11.2 $13.8 $15.3 $17.7 $20.6 $21.0 $22.3
10% Depreciation & Amortization $1.2 $1.5 $1.7 $2.0 $2.3 $2.3 $2.5
Other Operating Expenses/(Income) $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0
Total Operating Expenses $12.4 $15.4 $17.0 $19.7 $22.9 $23.4 $24.8
Operating Income $33.23 $38.7 $42.4 $47.4 $54.8 $63.3 $69.4
Operating Margin 29.1% 30.2% 29.9% 29.4% 30.1% 31.4% 31.6%
Interest Expense, Net $1.1 $1.1 $1.0 $1.0 $1.0 $1.0 $1.0
Other (Income) / Expenses $1.3 $1.3 $1.3 $1.3 $1.3 $1.3 $1.3
EBT $30.8 $36.3 $40.0 $45.1 $52.5 $61.0 $67.1
40.0% Income Taxes (1) $12.3 $14.5 $16.0 $18.1 $21.0 $24.4 $26.8
Net Income Available to Common $18.5 $21.8 $24.0 $27.1 $31.5 $36.6 $40.2
Plus: Taxes $12.3 $14.5 $16.0 $18.1 $21.0 $24.4 $26.8
Plus: Interest Expense 1.1 1.1 1.0 1.0 1.0 1.0 1.0
Plus: Depreciation & Amortization 1.2 1.5 1.7 2.0 2.3 2.3 2.5
Adjusted EBITDA $33.2 $38.9 $42.8 $48.1 $55.8 $64.3 $70.5
Adjusted EBITDA Margin 29.1% 30.4% 30.2% 29.8% 30.6% 31.9% 32.1%
Capital Expenditures $1.5 $1.7 $1.7 $2.0 $2.4 $2.5 $2.7
(1) Assuming 40% tax rate.
Project X
2016P Investment $22.5 2016P 2017P
2017P Cash Flow $10.0 -$22.5 $10.0
Incremental Cash Flow Growth Y to Y 10.0%
Sales % Growth 12.2% 10.6% 13.8% 12.9% 10.7% 8.9%
Gross Profit % of Revenue 40.0% 42.2% 41.9% 41.6% 42.7% 43.0% 42.9%
Selling General & Admin Exp. % of Revenue 9.8% 10.8% 10.8% 11.0% 11.3% 10.4% 10.2%
Interest Rate on Debt (8%) 8.0% 8.0% 8.0% 8.0% 8.0% 8.0% 8.0%
Depreciation & Amortization % of Revenue 1.1% 1.2% 1.2% 1.2% 1.3% 1.2% 1.1%
CapEx as % of Revenue 1.30% 1.35% 1.20% 1.25% 1.34% 1.24% 1.25%

36. Introduction Proposal Company Industry Quantitative Summary Alternatives Appendix
Integrate Co. Balance Sheet
Fiscal Year Ended December 31,
2011 2012 2013 2014
Current Assets
Cash and Equivalents $20.5 $30.4 $45.6 $61.3
Accounts Receivable 41.3 54.3 62.1 70.9
Inventory 20.6 21.6 24.9 28.4
Total Current Assets $82.4 $106.3 $132.6 $160.6
Property and Equipment $15.6 $19.3 $25.4 $30.9
Land 4.3 4.8 7.2 9.8
Other Long-Term Assets 1.5 2.1 2.6 3.8
Total Assets $103.8 $132.5 $167.8 $205.1
Liabilities
Accounts Payable $15.6 $16.9 $17.5 $20.6
Accrued Exp. 20.0 26.0 38.8 40.3
Other Current Liabilities 4.0 2.6 3.3 4.5
Total Current Liabilities $39.6 $45.5 $59.6 $65.4
Long-Term Debt 13.6 13.8 12.9 12.3
Total Liabilities $53.2 $59.3 $72.5 $77.7
Net Stockholder's Equity 50.6 73.2 95.3 127.4
Total Liabilities And Stockholders' Equity $103.8 $132.5 $167.8 $205.1
Check $0.0 $0.0 $0.0 $0.0
Net Working Capital $22.3 $30.4 $27.4 $33.9
% of Sales 19.54% 23.75% 19.35% 21.00%
Change in NWC NA $8.1 -$3.0 $6.5

37. Strategy 3 - Provide Mezzanine Debt in Purchase of ITGroup
Introduction Proposal Company Industry Quantitative Summary Alternatives Appendix
Crystal Ball Report - Full
Simulation started on 3/5/2016 at 9:47 PM
Simulation stopped on 3/5/2016 at 9:47 PM
Run preferences:
Number of trials run 1,000
Extreme speed
Monte Carlo
Random seed
Precision control on
Confidence level 95.00%
Run statistics:
Total running time (sec) 3.98
Trials/second (average) 251
Random numbers per sec 754
Crystal Ball data:
Assumptions 3
Correlations 0
Correlation matrices 0
Decision variables 0
Forecasts 3
Forecasts
Worksheet: [LBO round2 s3.xlsx]LBO
Forecast: 2018 IRR Cell: M154
Summary:
Certainty level is 95.0%
Certainty range is from 16.2% to 21.6%
Entire range is from 15.6% to 21.9%
Base case is 16.2%
After 1,000 trials, the std. error of the mean is 0.1%

38. Introduction Proposal Company Industry Quantitative Summary Alternatives Appendix
Statistics: Forecast values
Trials 1,000
Base Case 16.2%
Mean 19.0%
Median 19.0%
Mode ---
Standard Deviation 1.6%
Variance 0.0%
Skewness -0.1035
Kurtosis 1.86
Coeff. of Variation 0.0855
Minimum 15.6%
Maximum 21.9%
Range Width 6.4%
Mean Std. Error 0.1%

39. Introduction Proposal Company Industry Quantitative Summary Alternatives Appendix
Forecast: 2018 IRR (cont'd) Cell: M154
Percentiles: Forecast values
0% 15.6%
10% 16.7%
20% 17.3%
30% 17.9%
40% 18.5%
50% 19.0%
60% 19.6%
70% 20.1%
80% 20.6%
90% 21.1%
100% 21.9%
Forecast: 2019 IRR Cell: N154
Summary:
Certainty level is 95.0%
Certainty range is from 15.6% to 21.2%
Entire range is from 14.9% to 21.6%
Base case is 15.6%
After 1,000 trials, the std. error of the mean is 0.1%

40. Introduction Proposal Company Industry Quantitative Summary Alternatives Appendix
Statistics: Forecast values
Trials 1,000
Base Case 15.6%
Mean 18.5%
Median 18.6%
Mode ---
Standard Deviation 1.7%
Variance 0.0%
Skewness -0.1312
Kurtosis 1.89
Coeff. of Variation 0.0901
Minimum 14.9%
Maximum 21.6%
Range Width 6.6%
Mean Std. Error 0.1%
Forecast: 2019 IRR (cont'd) Cell: N154
Percentiles: Forecast values
0% 14.9%
10% 16.2%
20% 16.8%
30% 17.4%
40% 18.0%
50% 18.6%
60% 19.2%
70% 19.7%
80% 20.2%
90% 20.8%
100% 21.6%
Forecast: 2020 IRR Cell: O154
Summary:
Certainty level is 95.0%
Certainty range is from 15.2% to 20.8%
Entire range is from 14.4% to 21.2%
Base case is 15.2%
After 1,000 trials, the std. error of the mean is 0.1%

41. Introduction Proposal Company Industry Quantitative Summary Alternatives Appendix

42. Introduction Proposal Company Industry Quantitative Summary Alternatives Appendix
Statistics: Forecast values
Trials 1,000
Base Case 15.2%
Mean 18.2%
Median 18.2%
Mode ---
Standard Deviation 1.7%
Variance 0.0%
Skewness -0.1605
Kurtosis 1.92
Coeff. of Variation 0.0928
Minimum 14.4%
Maximum 21.2%
Range Width 6.8%
Mean Std. Error 0.1%
Forecast: 2020 IRR (cont'd) Cell: O154
Percentiles: Forecast values
0% 14.4%
10% 15.8%
20% 16.5%
30% 17.1%
40% 17.7%
50% 18.2%
60% 18.9%
70% 19.4%
80% 19.8%
90% 20.4%
100% 21.2%
End of Forecasts

43. Introduction Proposal Company Industry Quantitative Summary Alternatives Appendix
Assumption: % of Debt
Uniform distribution with parameters:
Minimum 10.00%
Maximum 15.00%
Assumption: % of equity
Uniform distribution with parameters:
Minimum 3%
Maximum 5%
Assumption: Interest rate
Uniform distribution with parameters:
Minimum 10.0%
Maximum 13.0%