This document provides an overview of the ParentCo proposal, which includes options to buy or sell subsidiaries FashionCo, ApparelCo, and MediaCo, as well as restructuring ParentCo. Valuations are presented for each subsidiary using DCF and comparable company analyses. The proposal suggests carving out ApparelCo as its own public entity while retaining ownership in MediaCo to use its shares for acquisitions. This would increase transparency, attract new investors, and improve performance accountability across subsidiaries.

1. Fordham Capital
ParentCo Proposal
Eric Martina
Ngoc(Tim) Do
Edward Schwarzkopf
Matthieu Frechin
Samatha Howell

2. Agenda
• Options
• Proposal
• Valuations
– FashionCo
– ApparelCo
– MediaCo
• ParentCo Equity Carve-Out
• Appendix
Appendix

3. Options
• Buy FashionCo
• Sell ApparelCo
• Sell MediaCo
• Restructure ParentCo
Appendix

4. Fashion Industry Outlook
- Low to mid single digit growth rate
- Cyclical
- Trendier brands trade at a higher multiple but fall in and out of favor
- Not dramatically affected by economic outlook
Appendix
52.7%
47.3%
7.2%
1.5
53.2%
46.8%
6.4%
1.6
20.4%
79.6%
7.1%
2.2
0.0%
50.0%
100.0%
150.0%
200.0%
250.0%
Debt/Total
Capitalization
Equity/Total
Capitalization
ROA Current Ratio 0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
Profit EBITDA Income
ApparelCo
FashionCo
Mean

5. FashionCo Valuation
Perpetuity Growth Method DCF
In Mil $ Downside Base Upside
EV $34.40 $76.60 $115.40
Appendix
EBITDA Multiple Method DCF
In Mil $ Downside Base Upside
EV $66.50 $119.60 $166.20
P/E Approach
In Mil $ 14.0x 15.0x 16.0x
EV $100.80 $108.00 $115.20
Comparable Multiple EV/EBITDA
In Mil $ 8.0x 9.0x 10.0x
EV $123.02 $138.60 $154.00
Assumptions
• WACC: 13.5%
• Sale Growth
• Base: 7.2%
• Upside: 8%
• Downside: 5%
• Net Income 2014: $7.2 Mil
• EBITDA 2014: $15.4 Mil
Reasons
• High Asking Price - $250 Million
• High End vs. Low End
• Synergy Analysis
• Disagreement from Investor
• Core Business – Media Co

6. ApparelCo Valuation
Perpetuity Growth Method DCF
In Mil $ Downside Base Upside
EV $48.40 $87.40 $164.70
EBITDA Multiple Method DCF
In Mil $ Downside Base Upside
EV $81.70 $123.60 $194.70
P/E Approach
In Mil $ 16.0x 17.0x 18.0x
EV $161.60 $171.70 $181.80
Comparable Multiple EV/EBITDA
In Mil $ 8.0x 9.0x 10.0x
EV $164.20 $184.80 $205.30
Assumptions
• WACC: 12.0%
• Sale Growth
• Base: 7.5%
• Upside: 8.5%
• Downside: 5%
• Net Income 2014: $10.1 Mil
• EBITDA 2014: $20.5 Mil
Appendix

7. Media Industry Outlook
- Performance in line with general market until the last recession,
lagging since
- Lots of consolidation taking place
- Little to no expected revenue growth
Appendix
109.5%
-9.5%
6.3%
1.0
52.4%
47.6%
5.3%
1.5
-20.0%
0.0%
20.0%
40.0%
60.0%
80.0%
100.0%
120.0%
140.0%
160.0%
180.0%
Debt/Total
Capitalization
E/cap ROA Current Ratio 0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
Profit EBITDA Income
MediaCo
Mean

8. MediaCo Valuation
Perpetuity Growth Method DCF
In Mil $ Downside Base Upside
EV $47.90 $247.60 $440.6
EBITDA Multiple Method DCF
In Mil $ Downside Base Upside
EV $79.60 $259.30 $498.30
P/E Approach
In Mil $ 14.0x 15.0x 16.0x
EV $358.40 $384.00 $409.60
Comparable Multiple EV/EBITDA
In Mil $ 6.0x 7.0x 8.0x
EV $384.80 $448.90 $513.10
Assumptions
• WACC: 11.0%
• Sale Growth
• Base: -1.0%
• Upside: 2.5%
• Downside: -4%
• Net Income 2014: $25.6 Mil
• EBITDA 2014: $64.1 Mil
Appendix

9. ParentCo – Equity Carve-out
• Carve-out stock of ApparellCo
• Establish own equity – 100% owned by MediaCo to start
– If the parent keeps a majority interest, the subsidiary will be consolidated into
the parent’s financial statements
– If the subsidiary issues new shares alone, and the parent doesn’t sell any
shares of the subsidiary, the parent won’t recognize any immediate tax costs
related to the transaction
– Retain low borrow rates of ParentCo
– Option to completely divest if performance deteriorates.
• Carve-outs are much more common than tracking stocks, so the market
understands carve-outs better.
• Carve-outs on average have the strongest TRS performance of any restructuring
option, while their effect on P/E multiples is roughly comparable to the effect of
the other possibilities.
Appendix

10. Equity Carve-Out Benefits
• Increase in analyst coverage
– Floating equity in business units not previously exposed to the market makes their
operating performance more transparent and raises shareholder returns by revealing
hidden value
• Attract new investors
– Little overlap between those who would invest in a parent company and those who
would invest in it’s subsidiaries after restructuring
• Improved operating performance
– Restructuring of ownership will permit the company to push management/cost
accountability deeper into the organization. New accountability becomes tangible for
management through lower or higher compensation based on stock performance
• New shares can be used as acquisition currency
Appendix

11. Where to go from here?
• MediaCo
– Use retained low cost of capital to borrow at L+250bp and new MediaCo shares as
currency in acquisition of media content management believes will grow at over
5%/year
– Explore growth opportunities online and through mobile apps with the goal of
capturing younger customers
– Explore opportunities re-introducing MediaCo branded apparel lines
– Explore Reduction of CapEx on PP&E via outsourcing of periodical printing
• ApparelCo
– Provide new stock based incentives to management to bring performance in-line
with industry leaders
– Explore acquisition options to develop synergies utilizing L+250bp borrowing rate
and new ApparellCO shares as acquisition currency
• FashionCo
– Management expects to be paid far more than business is worth
– Better synergies to be found for acquisitions by ApparellCO with other high-end
apparel producers with good distribution network opportunities
Appendix

12. APPENDIX
- DCF
- WACC
- Comparable
- Fashion Industry
- Media Industry
- Valuation Fashion
- Valuation Apparel
- Valuation Media
- Restructuring
Appendix

13. Discounted Cash Flow Analysis for FashionCo
Figures in millions, except per share
Historical Projected
2012 2013 2014 2015 2016 2017 2018 2019
Sales $169.2 $181.9 $194.5 $208.5 $224.0 $240.1 $257.1 $274.6
Cost of goods sold (excluding depr.) 137.8 147.5 158.7 169.5 181.2 195.4 208.8 222.5
Gross Profit 31.4 34.4 35.8 39.0 42.8 44.7 48.3 52.2
SG & A (excluding amortizations) 16.0 19.6 20.4 20.9 21.9 23.7 25.5 27.5
Other operating expense 0.3 0.0 0.0 0.0 0.0 0.0 0.0 0.0
EBITDA 15.1 14.8 15.4 18.1 20.9 21.0 22.9 24.7
EBITDA Margin 8.9% 8.1% 7.9% 8.7% 9.3% 8.7% 8.9% 9.0%
Less: Depreciation (2.1) (2.7) (1.7) (2.9) (2.3) (3.3) (2.7) (4.0)
Less: Amortization 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
EBIT 13.1 12.2 13.8 15.2 18.5 17.7 20.2 20.8
Less: Taxes @ 40.0% (5.2) (4.9) (5.5) (6.1) (7.4) (7.1) (8.1) (8.3)
Tax-effected EBIT 7.9 7.3 8.3 9.1 11.1 10.6 12.1 12.5
Plus: Depreciation & Amortization 2.7 1.7 2.9 2.3 3.3 2.7 4.0
Less: Capital Expenditures (2.61) (2.93) (2.05) (2.86) (4.30) (4.11) (4.39)
Less: Additions to Intangibles 0.0 0.0 0.0 0.0 0.0 0.0 0.0
(Increase)/decrease in working capital 0.3 1.3 (3.7) (1.9) (2.2) (2.1) (2.2)
Unlevered Free Cash Flow $7.7 $8.3 $6.3 $8.7 $7.4 $8.6 $9.9
Perpetuity Growth Method EBITDA Multiple Method
Weighted average cost of capital: 13.5% Weighted average cost of capital: 13.5%
Net present value of free cash flow (a) $27.8 Net present value of free cash flow (a) $27.8
Terminal growth rate 2.5% Terminal multiple 7.0x
Terminal value $91.9 Terminal value $173.0
Present value of the terminal value (b) 48.8 Present value of the terminal value (c) 91.9
Enterprise Value $76.6 Enterprise Value $119.6
Less: Net debt (0.3) Less: Net debt (0.3)
Add: Equity investment 0.0 Add: Equity investment 0.0
Equity Value $76.3 Equity Value $119.3
Appendix

14. Discounted Cash Flow Analysis for ApparelCO
Figures in millions, except per share
Historical Projected
2012 2013 2014 2015 2016 2017 2018 2019
Sales $222.4 $238.7 $258.1 $278.2 $301.9 $325.4 $348.2 $370.8
Cost of goods sold (excluding depr.) 181.8 194.8 209.3 227.2 247.1 266.0 284.6 303.1
Gross Profit 40.6 43.9 48.8 51.0 54.8 59.4 63.6 67.7
SG & A (excluding amortizations) 19.9 23.1 28.3 29.0 31.0 32.2 34.8 37.1
Other operating expense 1.3 0.0 0.0 0.0 0.0 0.0 0.0 0.0
EBITDA 19.4 20.8 20.5 22.0 23.8 27.2 28.7 30.6
EBITDA Margin 8.7% 8.7% 7.9% 7.9% 7.9% 8.4% 8.3% 8.3%
Less: Depreciation (3.1) (3.0) (2.5) (3.3) (4.3) (3.3) (4.0) (4.1)
Less: Amortization 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
EBIT 16.4 17.9 18.1 18.8 19.6 24.0 24.8 26.6
Less: Taxes @ 40.0% (6.6) (7.2) (7.2) (7.5) (7.8) (9.6) (9.9) (10.6)
Tax-effected EBIT 9.8 10.7 10.8 11.3 11.7 14.4 14.9 15.9
Plus: Depreciation & Amortization 3.0 2.5 3.3 4.3 3.3 4.0 4.1
Less: Capital Expenditures (2.3) (3.1) (4.9) (6.3) (5.9) (6.7) (6.7)
Less: Additions to Intangibles 0.0 0.0 0.0 0.0 0.0 0.0 0.0
(Increase)/decrease in working capital 0.5 (6.4) (4.0) (4.6) (4.4) (4.3) (4.3)
Unlevered Free Cash Flow $11.9 $3.8 $5.6 $5.2 $7.4 $7.9 $9.1
Perpetuity Growth Method EBITDA Multiple Method
Weighted average cost of capital: 12.0% Weighted average cost of capital: 12.0%
Net present value of free cash flow (a) $24.6 Net present value of free cash flow (a) $24.6
Terminal growth rate 3.5% Terminal multiple 5.7x
Terminal value $110.7 Terminal value $174.5
Present value of the terminal value (b) 62.8 Present value of the terminal value (c) 99.0
30%
Enterprise Value $87.4 111.73856 Enterprise Value $123.6
Less: Net debt (1.4) Less: Net debt (1.4)
Add: Equity investment 0.0 Add: Equity investment 0.0
Equity Value $86.0 Equity Value $122.2
Appendix

15. Discounted Cash Flow Analysis for MediaCo
Figures in millions, except per share
Historical Projected
2012 2013 2014 2015 2016 2017 2018 2019
Sales $540.5 $551.8 $535.1 $527.6 $522.3 $522.3 $522.3 $522.8
Cost of goods sold (excluding depr.) 313.1 328.5 316.0 313.2 311.2 305.7 308.1 308.5
Gross Profit 227.4 223.3 219.1 214.4 211.1 216.5 214.1 214.3
SG & A (excluding amortizations) 162.5 154.8 155.0 155.8 155.1 154.6 154.6 154.7
Other operating expense 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
EBITDA 64.9 68.5 64.1 58.7 56.0 61.9 59.5 59.6
EBITDA Margin 12.0% 12.4% 12.0% 11.1% 10.7% 11.9% 11.4% 11.4%
Less: Depreciation (15.4) (14.9) (16.6) (16.0) (16.0) (14.2) (14.7) (15.3)
Less: Amortization 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
EBIT 49.6 53.7 47.6 42.8 40.1 47.9 44.9 44.5
Less: Taxes @ 40.0% (19.8) (21.5) (19.0) (17.1) (16.0) (19.2) (18.0) (17.8)
Tax-effected EBIT 29.8 32.2 28.6 25.7 24.1 28.7 27.0 26.7
Plus: Depreciation & Amortization 14.9 16.6 16.0 16.0 14.2 14.7 15.3
Less: Capital Expenditures (14.9) (16.8) (16.3) (15.8) (16.3) (16.8) (17.4)
Less: Additions to Intangibles 0.0 0.0 0.0 0.0 0.0 0.0 0.0
(Increase)/decrease in working capital 20.4 5.3 (7.4) (0.5) (0.2) 0.1 0.0
Unlevered Free Cash Flow $52.6 $33.7 $18.0 $23.8 $26.4 $24.9 $24.6
Perpetuity Growth Method EBITDA Multiple Method
Weighted average cost of capital: 11.0% Weighted average cost of capital: 11.0%
Net present value of free cash flow (a) $85.9 Net present value of free cash flow (a) $85.9
Terminal growth rate 1.8% Terminal multiple 4.9x
Terminal value $272.5 Terminal value $292.2
Present value of the terminal value (b) 161.7 Present value of the terminal value (c) 173.4
Enterprise Value $247.6 Enterprise Value $259.3
Less: Net debt (14.2) Less: Net debt (14.2)
Add: Equity investment 0.0 Add: Equity investment 0.0
Equity Value $233.4 Equity Value $245.1
Appendix

16. FashionCo WACC
Cost of Debt
4.30%
x After tax cost of debt
1 - Tax rate 2.58%
1 - 40.00% x
% of debt
8.80% Weighted average cost of capital
Risk free rate 14.00%
2.24% % of equity
+ 86.40%
Beta x
1.2 Cost of equity
x 9.78%
Market risk premium
6.00%
+
Size premium
5.82%
Appendix

17. ApparelCo WACC
Cost of Debt
4.30%
x After tax cost of debt
1 - Tax rate 2.58%
1 - 40.00% x Weighted cost of debt
% of debt 0.34%
13.30% Weighted average cost of capital
Risk free rate + 13.74%
2.24% % of equity
+ 86.70% Weighted cost of equity
Beta x 13.22%
1.24 Cost of equity
x 15.25%
Market risk premium
6.00%
+
Size premium
5.82%
Appendix

18. MediaCo WACC
Cost of Debt
4.50%
x After tax cost of debt
1 - Tax rate 2.70%
1 - 40.00% x Weighted cost of debt
% of debt 0.42%
15.50% Weighted average cost of capital
Risk free rate + 10.65%
2.24% % of equity
+ 86.40% Weighted cost of equity
Beta x 73.01%
1.2 Cost of equity
x 84.50%
Market risk premium
6.00%
+
Size premium
2.70%
Appendix

19. Comparable Company Multiples
(figures in millions except per share amount)
Shares LTM LTM LTM LTM PE
Company Ticker Stock Price Outstanding Debt Cash Sales EBITDA EBIT Earnings
Gannett Co., Inc. GCI $31.50 225.6 $4,112.6 $1,374.5 $5,675.2 $1,254.7 $1,023.9 $476.9 14.9
Lee Enterprises, Incorporated LEE 3.73 53.7 815.0 17.8 657.1 160.2 112.9 (85.1) -2.4
The McClatchy Company MNI 3.56 86.7 1,560.3 225.1 1,215.2 248.9 144.6 83.9 3.7
The New York Times Company NYT 12.84 150.3 669.4 414.6 1,587.7 232.1 152.8 64.1 30.1
Time Inc. TIME 22.59 109.0 1,376.0 325.0 3,352.0 510.0 352.0 8.0 307.7
Shares LTM LTM LTM LTM PE
Company Ticker Stock Price Outstanding Debt Cash Sales EBITDA EBIT Earnings
Ever-Glory International Group, Inc. EVK $6.19 14.8 $55.4 $25.0 $422.3 $27.0 $20.8 $12.8 7.1
G-III Apparel Group, Ltd. GIII 79.35 22.4 71.2 21.5 1,931.7 152.4 135.9 80.2 22.2
Oxford Industries Inc. OXM 61.25 16.5 108.5 6.4 951.8 121.9 85.3 45.9 22.0
Perry Ellis International Inc. PERY 20.45 15.7 172.5 49.2 899.0 34.7 21.3 (25.1) -12.8
PVH Corp. PVH 114.35 82.4 3,907.4 461.1 8,250.7 1,202.2 948.9 321.0 29.3
V.F. Corporation VFC 67.68 431.1 2,083.5 496.5 11,993.4 2,047.8 1,775.2 1,293.1 22.6
LTMOperating Indications LTMMargins
Gross Net Gross Net
Company Revenue Profit EBITDA EBIT Income Profit EBITDA EBIT Income
Gannett Co., Inc. $5,675.2 $2,652.3 $1,254.7 $1,023.9 $476.9 46.7% 22.1% 18.0% 8.4%
Lee Enterprises, Incorporated 657.1 374.0 160.2 112.9 (85.1) 56.9% 24.4% 17.2% -12.9%
The McClatchy Company 1,215.2 675.6 248.9 144.6 83.9 55.6% 20.5% 11.9% 6.9%
The New York Times Company 1,587.7 945.1 232.1 152.8 64.1 59.5% 14.6% 9.6% 4.0%
Time Inc. 3,352.0 2,000.0 510.0 352.0 8.0 59.7% 15.2% 10.5% 0.2%
LTMOperating Indications LTMMargins
Gross Net Gross Net
Company Revenue Profit EBITDA EBIT Income Profit EBITDA EBIT Income
Ever-Glory International Group, Inc. $422.3 $110.0 $27.0 $20.8 $12.8 26.0% 6.4% 4.9% 3.0%
G-III Apparel Group, Ltd. 1,931.7 672.1 152.4 135.9 80.2 34.8% 7.9% 7.0% 4.2%
Oxford Industries Inc. 951.8 530.8 121.9 85.3 45.9 55.8% 12.8% 9.0% 4.8%
Perry Ellis International Inc. 899.0 303.7 34.7 21.3 (25.1) 33.8% 3.9% 2.4% -2.8%
PVH Corp. 8,250.7 4,330.2 1,202.2 948.9 321.0 52.5% 14.6% 11.5% 3.9%
V.F. Corporation 11,993.4 5,824.1 2,047.8 1,775.2 1,293.1 48.6% 17.1% 14.8% 10.8%
Appendix

20. MediaCo
EV/EBITDA Metric
2014 64.13577 6.5 8 416.88$ 513.09$
FY1 58.744 6.35 7.75 373.02$ 455.27$
FY2 56 6.2 7.5 347.20$ 420.00$
Transaction 64.13577 8 11.3 513.09$ 724.73$
ApparelCo
EV/EBITDA Metric
2014 20.53433 9.1 12.8 186.86$ 262.84$
FY1 22.05 8.7 11.3 191.84$ 249.17$
FY2 23.713 8.3 9.8 196.82$ 232.39$
Transaction 20.5343 11 13 225.88$ 266.95$
FashionCo
EV/EBITDA Metric
2014 15.37747 9.1 12.8 139.93$ 196.83$
FY1 18.051 8.7 11.3 157.04$ 203.98$
FY2 20.912 8.3 9.8 173.57$ 204.94$
Transaction 15.37747 11 13 169.15$ 199.91$
Multiple Range Implied Enterprise Value
Multiple Range Implied Enterprise Value
Multiple Range Implied Enterprise Value
Appendix

21. Earnings Impact of Parent Co Acquisition of FashionCo at $0.00 per share
50.0% Cash, 50.0% Stock
2015E 2016E 2017E
Parent Co diluted EPS $1.12 $1.18 $1.34
Shares (MM) 30.000 30.000 30.000
Parent Co Net Income $33.5 $35.4 $40.1
FashionCo diluted EPS $0.00 $0.00 $0.00
Shares (MM) 0.000 0.000 0.000
FashionCo Net Income $8.5 $10.6 $10.0
Combined Net Income (before adjustments) $42.0 $46.0 $50.1
Pre-tax Adjustments
Less: Additional interest expense(1)
($5.5) ($5.5) ($5.5)
+ / ( - ): Synergies(2)
1.7 1.7 1.7
+ / ( - ): Depreciation from write-up(3)
(2.6) (2.6) (2.6)
+ / ( - ): Amortization from write-up(3)
(0.6) (0.6) (0.6)
Total Pre-tax Adjustments ($7.0) ($7.0) ($7.0)
Less: taxes @ 40.0% 2.8 2.8 2.8
Total After-tax Adjustments ($4.2) ($4.2) ($4.2)
Pro Forma Combined Net Income $37.8 $41.8 $45.9
Pro Forma Shares(4)
36.827 36.827 36.827
Pro Forma GAAP EPS $1.03 $1.13 $1.25
Parent Co stand-alone GAAP EPS $1.12 $1.18 $1.34
Accretion / (Dilution)(5)
GAAP EPS Accretion / (Dilution) - $ ($0.09) ($0.05) ($0.09)
GAAP EPS Accretion / (Dilution) - % (8.0%) (3.9%) (6.8%)
Additional Pre-tax (Cushion) / Synergies to Breakeven $5.5 $2.8 $5.6

22. Synergy
as a %
of S&A
Estimated
Synergies
EPS
Accretion/Dilution
2.0% $0.97 -9.1%
2.5% $1.22 -8.7%
3.0% $1.46 -8.4%
3.5% $1.70 -8.0%
4.0% $1.95 -7.7%
4.5% $2.19 -7.3%
5.0% $2.44 -6.9%
9.7% $4.72 0.0%