This document provides financial projections for Sample Co. for the years 2007-2014 following a leveraged buyout. It summarizes the sources and uses of funds for the transaction, including $1.25B in equity and $625M in total debt at closing. Projections show revenue growing at a 8.2% CAGR and EBITDA growing at 10.4% with debt declining from 5.54x leverage initially to 1.82x by 2014. Sponsors see potential IRRs of 16.8-25.3% depending on exit multiple with over 1.5-2x cash on cash return. Management sees higher IRRs of 27.9-40.6% and

1. Sample Co. (NYSE: SML)
SCREENING MODEL
(in $ millions)
USES SOURCES DEBT ASSUMPTIONS
x 2009A x 2009A Amortization
Amount % EBITDA Amount % EBITDA Cash Details
Equity Purchase 1,248.2 92.5% 11.06x Revolver 0.0 0.0% 0.00x Revolver L+350
Net Debt Refi. / (BS Cash Used 61.8 4.6% 0.55x Term Loan A 135.0 10.0% 1.20x Term Loan A L+400 over 5.0 years
Enterprise Value 1,310.0 97.0% 11.60x Term Loan B 255.0 18.9% 2.26x Term Loan B L+450 2.0% / year
Mezzanine 235.0 17.4% 2.08x Mezzanine 12.5%
Total Debt 625.0 46.3% 5.54x Mezz PIK 0.0%
LIBOR 2.5%
Transaction Fees 40.0 3.0% 0.35x Common Equity 725.0 53.7% 6.42x
TOTAL USES 1,350.0 100.0% 11.96x TOTAL SOURCES 1,350.0 100.0% 11.96x
Share Price Analysis Notes
Current Share Price $18.19 - Current Share Price (closing 2/10/10) has already built in
1yr Avg Share Price $15.29 speculative bidding to the 1 year average of 20-30%
Shares Outstanding 68.2mm
Implied Purch Price / Share $18.32
% Premium - current 0.7%
% Premium - 1yr 19.8%
SUMMARY
Historical Projected CAGR
FYE: 12/31 2007A 2008A 2009A 2010E 2011P 2012P 2013P 2014P 2007-2009 2010-2014
Net Sales $240.3 $296.4 $303.4 $319.7 $347.2 $380.9 $410.6 $438.6 12.4% 8.2%
% growth na 23.3% 2.4% 5.4% 8.6% 9.7% 7.8% 6.8%
Adjusted EBITDA 68.5 101.6 112.9 116.1 128.4 144.8 159.0 172.6 28.4% 10.4%
% of sales 28.5% 34.3% 37.2% 36.3% 37.0% 38.0% 38.7% 39.4%
% growth na 48.2% 11.1% 2.9% 10.5% 12.8% 9.8% 8.6%
EBITDA 116.1 128.4 144.8 159.0 172.6
(+/-) Working Capital 2.2 1.3 5.7 4.2 5.5
(-) Total Capital Expenditures (6.7) (7.2) (7.8) (8.6) (9.1)
Operating Cash Flow 111.7 122.5 142.7 154.7 169.1 10.9%
% EBITDA Conversion 96.2% 95.5% 98.6% 97.3% 97.9%
@ closing
Senior Debt 390.0 351.8 305.0 241.2 167.0 79.2
Mezzanine Debt 235.0 235.0 235.0 235.0 235.0 235.0
Total Debt 625.0 586.8 540.0 476.2 402.0 314.2 (14.5%)
% paydown since closing 6.1% 13.6% 23.8% 35.7% 49.7%
(Cash) - - - - - -
Net Debt 625.0 586.8 540.0 476.2 402.0 314.2 (14.5%)
Leverage Ratios
Total Debt / EBITDA 5.54x 5.05x 4.21x 3.29x 2.53x 1.82x
Net Debt / EBITDA 5.54x 5.05x 4.21x 3.29x 2.53x 1.82x
Net Debt / (EBITDA - Capex) 5.36x 4.46x 3.48x 2.67x 1.92x
Covarage Ratios
EBITDA / Cash Interest 2.12x 2.47x 2.99x 3.64x 4.54x
(EBITDA - Capex) / Cash Interest 2.00x 2.33x 2.83x 3.45x 4.30x
Fixed Cover Charge Ratio 1.04x 1.16x 1.32x 2.26x 2.79x
1

2. Sample Co. (NYSE: SML)
SCREENING MODEL
(in $ millions)
RETURNS SUMMARY
Sponsor Returns - Exit Year 3 Management Returns - Exit Year 3
Exit Multiple 11.5x 12.0x 12.5x 13.0x 13.5x Exit Multiple 11.5x 12.0x 12.5x 13.0x 13.5x
IRR 16.8% 19.1% 21.2% 23.3% 25.3% IRR 27.9% 31.3% 34.5% 37.6% 40.6%
CoC Return 1.59x 1.69x 1.78x 1.87x 1.97x CoC Return 2.09x 2.26x 2.44x 2.61x 2.78x
Sponsor Returns - Exit Year 5 Management Returns - Exit Year 5
Exit Multiple 11.5x 12.0x 12.5x 13.0x 13.5x Exit Multiple 11.5x 12.0x 12.5x 13.0x 13.5x
IRR 17.2% 18.4% 19.5% 20.5% 21.6% IRR 26.4% 28.0% 29.5% 30.9% 32.3%
CoC Return 2.21x 2.32x 2.44x 2.55x 2.66x CoC Return 3.23x 3.44x 3.64x 3.84x 4.05x
Note: Management has a 9.0% equity contribution at close and a 7.0% opiton pool
2

3. Sample Co. (NYSE: SML)
SCREENING MODEL
(in $ millions)
INCOME STATEMENT
Historical Projected CAGR
FYE: 12/31 2007A 2008A 2009A 2010E 2011P 2012P 2013P 2014P 2007-2009 2010-2014
Net Sales $240.3 $296.4 $303.4 $319.7 $347.2 $380.9 $410.6 $438.6 12.4% 8.2%
% growth na 23.3% 2.4% 5.4% 8.6% 9.7% 7.8% 6.8%
Total COGS (79.3) (89.8) (88.5) (92.7) (100.2) (108.6) (115.4) (121.5) 5.6% 7.0%
% of sales 33.0% 30.3% 29.2% 29.0% 28.9% 28.5% 28.1% 27.7%
Gross Profit 161.0 206.6 214.9 227.0 247.1 272.4 295.2 317.1 15.5% 8.7%
% of sales 67.0% 69.7% 70.8% 71.0% 71.2% 71.5% 71.9% 72.3%
Selling & Marketing (34.7) (31.5) (28.1) (29.4) (31.6) (34.1) (36.5) (39.0) (10.0%) 7.4%
General & Admin (27.6) (35.3) (35.1) (38.4) (40.8) (44.4) (47.6) (50.0) 12.8% 6.8%
R&D (30.2) (38.7) (41.0) (43.2) (46.3) (49.1) (52.1) (55.4) 16.5% 6.4%
Total Opex (92.5) (105.5) (104.2) (110.9) (118.7) (127.6) (136.3) (144.4) 6.2% 6.8%
% of sales 38.5% 35.6% 34.3% 34.7% 34.2% 33.5% 33.2% 32.9%
EBITDA 68.5 101.1 110.7 116.1 128.4 144.8 159.0 172.6 27.1% 10.4%
% of sales 28.5% 34.1% 36.5% 36.3% 37.0% 38.0% 38.7% 39.4%
% growth na 47.6% 9.5% 4.9% 10.5% 12.8% 9.8% 8.6%
Adjustments - 0.5 2.2 - - - - -
Adjusted EBITDA 68.5 101.6 112.9 116.1 128.4 144.8 159.0 172.6 28.4% 10.4%
% of sales 28.5% 34.3% 37.2% 36.3% 37.0% 38.0% 38.7% 39.4%
% growth na 48.2% 11.1% 2.9% 10.5% 12.8% 9.8% 8.6%
Depreciation (7.4) (8.8) (8.3) (2.1) (2.8) (3.6) (4.4) (5.3) 6.1% 26.7%
Amortization of Intangibles (5.7) (5.7) (5.7) (5.7) (5.7) na 0.0%
Total D&A (7.8) (8.5) (9.3) (10.1) (11.0) na 9.1%
% of sales 2.4% 2.4% 2.4% 2.5% 2.5%
EBIT 108.4 119.9 135.5 148.9 161.6 na 10.5%
% of sales 33.9% 34.5% 35.6% 36.3% 36.8%
Revolver - - - - -
Term Loan A (7.7) (5.3) (2.0) (0.0) -
Term Loan B (17.7) (17.3) (17.0) (14.2) (8.6)
Mezzanine (29.4) (29.4) (29.4) (29.4) (29.4)
Total Interest (54.7) (52.0) (48.3) (43.7) (38.0) (8.7%)
Taxable Income 53.6 67.9 87.1 105.2 123.6
% of sales 16.8% 19.6% 22.9% 25.6% 28.2%
Taxes 35.0% (18.8) (23.8) (30.5) (36.8) (43.3)
Net Income 34.8 44.1 56.6 68.4 80.3 23.2%
% of sales 10.9% 12.7% 14.9% 16.7% 18.3%
3

4. Sample Co. (NYSE: SML)
SCREENING MODEL
(in $ millions)
PRO FORMA BALANCE SHEET
Pre- Close Post-Close
2009A + - 2009A GOODWILL
ASSETS Equity Purchase Price 1,248.2
Cash 226.6 (226.6) - Net Asset Value 261.7
Accounts Receivable 36.5 36.5 Existing Goodwill & Fees (340.3)
Inventory - - Goodwill Created 1,326.9
Other Current Assets 4.1 4.1
Total Current Assets 267.2 40.6
Goodwill 326.2 1,326.9 (326.2) 1,326.9
Capitalized Fees 14.0 40.0 (14.0) 40.0
PP&E 14.0
Depreciation -
Net PP&E 14.0 14.0
Other Long Term Assets 138.0 138.0
TOTAL ASSETS 759.5 1,559.5
LIABILITIES
Accounts Payable 3.3 3.3
Accrued Expenses 43.2 43.2
Other Current Expenses 115.0 115.0
Total Current Liabilities 161.5 161.5
Revolver - - -
Term Loan A 135.0 - 135.0
Term Loan B 255.0 - 255.0
Mezzanine 235.0 - 235.0
Total Debt 288.4 (288.4) 625.0
Other Long Term Liabilities 48.0 48.0
Common Equity 451.2 725.0 (451.2) 725.0
Retained Earnings (189.5) 189.5 -
Shareholder's Equity 261.7 725.0
TOTAL LIABILITIES & SHAREHOLDER'S EQUITY 759.5 1,559.5
check: 0.000 0.000
4

5. Sample Co. (NYSE: SML)
SCREENING MODEL
(in $ millions)
BALANCE SHEET
Historical Projected
FYE: 12/31 2007A 2008A PF2009 2010E 2011P 2012P 2013P 2014P
ASSETS
Cash - - - - - -
Accounts Receivable 36.5 39.3 43.8 49.6 54.0 58.0
Inventory - - - - - -
Other Current Assets 4.1 4.8 5.4 6.1 6.8 7.2
Total Current Assets 40.6 44.1 49.1 55.7 60.8 65.3
Goodwill 1,326.9 1,326.9 1,326.9 1,326.9 1,326.9 1,326.9
Capitalized Fees 40.0 34.3 28.6 22.9 17.1 11.4
PP&E 14.0 20.7 27.8 35.6 44.1 53.2
Depreciation - (2.1) (4.9) (8.4) (12.8) (18.2)
Net PP&E 14.0 18.6 23.0 27.2 31.3 35.1
Other Long Term Assets 138.0 138.0 138.0 138.0 138.0 138.0
TOTAL ASSETS 1,559.5 1,561.9 1,565.5 1,570.5 1,574.0 1,576.6
LIABILITIES
Accounts Payable 3.3 3.3 3.4 3.8 4.1 4.3
Accrued Expenses 43.2 43.9 45.5 48.6 51.0 53.5
Other Current Expenses 115.0 120.0 124.7 133.3 140.0 147.4
Total Current Liabilities 161.5 167.2 173.6 185.8 195.1 205.1
Revolver - - - - - -
Term Loan A 135.0 101.9 60.2 1.5 - -
Term Loan B 255.0 249.9 244.8 239.7 167.0 79.2
Mezzanine 235.0 235.0 235.0 235.0 235.0 235.0
Total Debt 625.0 586.8 540.0 476.2 402.0 314.2
Other Long Term Liabilities 48.0 48.0 48.0 48.0 48.0 48.0
Common Equity 725.0 725.0 725.0 725.0 725.0 725.0
Retained Earnings - 34.8 79.0 135.6 204.0 284.3
Shareholder's Equity 725.0 759.8 804.0 860.6 929.0 1,009.3
TOTAL LIABILITIES & SHAREHOLDER'S EQUITY 1,559.5 1,561.9 1,565.5 1,570.5 1,574.0 1,576.6
check: 0.000 0.000 0.000 0.000 0.000 0.000
OPERATING ASSUMPTIONS
Variable Cost - % of sales 33.0% 30.3% 29.2% 29.0% 28.9% 28.5% 28.1% 27.7%
Selling & Marketing - % of sales 14.4% 10.6% 9.3% 9.2% 9.1% 9.0% 8.9% 8.9%
General & Admin - % of sales 11.5% 11.9% 11.6% 12.0% 11.8% 11.7% 11.6% 11.4%
R&D - % growth na 28.1% 6.0% 5.2% 7.3% 6.1% 6.0% 6.4%
Days Sales Outstanding - of Sales 56.2 52.1 43.9 44.9 46.0 47.5 48.0 48.3
Inventory Days Outstanding - of Sales 0.0 0.0 0.0 0.0 0.0 0.0
Other Assets - of Sales 2.5% 1.9% 1.4% 1.5% 1.6% 1.6% 1.7% 1.7%
Days Payable Outstanding - of COGS 28.7 8.1 13.8 13.0 12.5 12.8 12.9 13.0
Accrued Expenses - of COGS 43.1% 44.8% 48.9% 47.4% 45.4% 44.8% 44.2% 44.0%
Other Current Expenses - of Sales 42.2% 37.4% 37.9% 37.5% 35.9% 35.0% 34.1% 33.6%
5

6. Sample Co. (NYSE: SML)
SCREENING MODEL
(in $ millions)
CASH FLOW
Projected
FYE: 12/31 2010E 2011P 2012P 2013P 2014P
Net Income 34.8 44.1 56.6 68.4 80.3
Depreciation 2.1 2.8 3.6 4.4 5.3
Amortization 5.7 5.7 5.7 5.7 5.7
PIK Interest - - - - -
+/- Working Capital
Accounts Receivable (2.8) (4.4) (5.8) (4.4) (4.0)
Inventory - - - - -
Other Current Assets (0.7) (0.6) (0.7) (0.7) (0.5)
Accounts Payable (0.0) 0.1 0.4 0.3 0.2
Accrued Expenses 0.7 1.6 3.2 2.4 2.4
Other Current Expenses 5.1 4.6 8.7 6.7 7.3
Operating Cash Flow 44.8 53.9 71.6 82.7 96.9
Capex (6.7) (7.2) (7.8) (8.6) (9.1)
Revolver - - - - -
Term Loan A (33.1) (41.7) (58.7) (1.5) -
Term Loan B (5.1) (5.1) (5.1) (72.7) (87.8)
Cash flow from Financing (38.2) (46.8) (63.8) (74.2) (87.8)
Change in Cash - - - - -
Begining Cash Balance - - - - -
Ending Cash Balance - - - - -
DEPRECIATION & AMORTIZATION
Historical Projected
FYE: 12/31 2007A 2008A PF2009 2010E 2011P 2012P 2013P 2014P
Maintenance Capex - - - - - - - -
Growth Capex 11.1 8.8 7.1 6.7 7.2 7.8 8.6 9.1
Total Capex 11.1 8.8 7.1 6.7 7.2 7.8 8.6 9.1
Maintenance Capex - % of sales 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
Growth Capex - % of sales 4.6% 3.0% 2.3% 2.1% 2.1% 2.0% 2.1% 2.1%
Total Capex - % of sales 4.6% 3.0% 2.3% 2.1% 2.1% 2.0% 2.1% 2.1%
Existing PP&E Depreciation 14.0 10.0 years 1.4 1.4 1.4 1.4 1.4
Capex Depreciation Year Capex
2010 6.7 0.7 0.7 0.7 0.7 0.7
2011 7.2 0.7 0.7 0.7 0.7
2012 7.8 0.8 0.8 0.8
2013 8.6 0.9 0.9
2014 9.1 0.9
Total Depreciation 2.1 2.8 3.6 4.4 5.3
Fee Amortization 40.0 7.0 years 5.7 5.7 5.7 5.7 5.7
6

7. Sample Co. (NYSE: SML)
SCREENING MODEL
(in $ millions)
DEBT SCHEDULE
Projected
FYE: 12/31 2010E 2011P 2012P 2013P 2014P
Operating Cash Flow 44.8 53.9 71.6 82.7 96.9
(-) Capex (6.7) (7.2) (7.8) (8.6) (9.1)
(-) Minimum Cash Balance - - - - -
(+) Cash Balance - - - - -
(-) Dept Repayments (32.1) (32.1) (32.1) (6.6) (5.1)
Free Cash Flow For Debt Sweeps 6.1 14.7 31.7 67.6 82.7
Revolver
Opening Balance - - - - -
Drawdown / Repayment - - - - -
Ending Balance - - - - -
Average Balance - - - - -
Interest 6.0% - - - - -
Term Loan A
Opening Balance 135.0 101.9 60.2 1.5 -
Repayment Amortization over 5.0 years (27.0) (27.0) (27.0) (1.5) -
Voluntary Repayment Yes (6.1) (14.7) (31.7) - -
Ending Balance 101.9 60.2 1.5 - -
Average Balance 118.5 81.1 30.8 0.7 -
Interest 6.5% 7.7 5.3 2.0 0.0 -
Term Loan B
Opening Balance 255.0 249.9 244.8 239.7 167.0
Repayment Amortization 2.0% / year (5.1) (5.1) (5.1) (5.1) (5.1)
Voluntary Repayment Yes - - - (67.6) (82.7)
Ending Balance 249.9 244.8 239.7 167.0 79.2
Average Balance 252.5 247.4 242.3 203.3 123.1
Interest 7.0% 17.7 17.3 17.0 14.2 8.6
Mezzanine
Opening Balance 235.0 235.0 235.0 235.0 235.0
Accrued Interest 0.0% - - - - -
Ending Balance 235.0 235.0 235.0 235.0 235.0
Average Balance 235.0 235.0 235.0 235.0 235.0
Cash Interest 12.5% 29.4 29.4 29.4 29.4 29.4
7

8. Sample Co. (NYSE: SML)
Discounted Cash Flow Valuation
(in $ millions)
1.0 2.0 3.0 4.0 5.0
Projected Normalized
FYE: 12/31 2010E 2011P 2012P 2013P 2014P FCF
EBITDA 116.1 128.4 144.8 159.0 172.6 158.8
(-) Depreciation (2.1) (2.8) (3.6) (4.4) (5.3) (4.4)
(-) Amortization (5.7) (5.7) (5.7) (5.7) (5.7) (5.7)
Net Operating Profit 108.4 119.9 135.5 148.9 161.6 148.6
(-) Taxes @ 35.0% (37.9) (41.9) (47.4) (52.1) (56.6) (52.0)
NOPAT 70.4 77.9 88.1 96.8 105.0 96.6
(+) Depreciation 2.1 2.8 3.6 4.4 5.3 4.4
(+) Amortization 5.7 5.7 5.7 5.7 5.7 5.7
Unlevered Earnings After Taxes 78.2 86.4 97.3 106.9 116.1 106.8
(+/-) Variation in Working Capital 2.2 1.3 5.7 4.2 5.5 5.1
(-) Capital Expenditures (6.7) (7.2) (7.8) (8.6) (9.1) (8.5)
Unlevered Free Cash Flow 73.8 80.6 95.3 102.6 112.5 103.4
% of sales 23.1% 23.2% 25.0% 25.0% 25.7%
% of EBITDA 63.5% 62.8% 65.8% 64.5% 65.2%
% growth na 9.2% 18.2% 7.7% 9.7%
DCF Output
Reference EBITDA 112.9
WACC Total Discounted Free Cash Flow
8.00% WACC 365.0 68.3 69.1 75.6 75.4 76.6
8.25% Sensitivity 362.4 68.2 68.8 75.1 74.7 75.7
8.50% 0.25% 359.8 68.0 68.4 74.6 74.0 74.8
8.75% 357.3 67.8 68.1 74.1 73.3 74.0
9.00% 354.8 67.7 67.8 73.6 72.7 73.1
Terminal Value - Perpetual Growth
Discount Term. Value @ Growth Rate Enterprise Value TV as a % of EV EV / EBITDA
Rate 1.00% 1.50% 2.00% 1.00% 1.50% 2.00% 1.00% 1.50% 2.00% 1.00% 1.50% 2.00%
8.00% 1,015.8 1,099.4 1,196.9 1,380.8 1,464.3 1,561.8 73.6% 75.1% 76.6% 12.2x 13.0x 13.8x
8.25% 969.5 1,046.5 1,135.8 1,331.9 1,408.9 1,498.2 72.8% 74.3% 75.8% 11.8x 12.5x 13.3x
8.50% 926.5 997.5 1,079.6 1,286.3 1,357.4 1,439.4 72.0% 73.5% 75.0% 11.4x 12.0x 12.7x
8.75% 886.3 952.1 1,027.7 1,243.6 1,309.5 1,385.0 71.3% 72.7% 74.2% 11.0x 11.6x 12.3x
9.00% 848.8 909.9 979.7 1,203.7 1,264.7 1,334.5 70.5% 71.9% 73.4% 10.7x 11.2x 11.8x
Terminal Value - EBITDA Multiple
Discount Term. Value @ EBITDA Multiple Enterprise Value TV as a % of EV EV / EBITDA
Rate 9.00x 9.50x 10.00x 9.00x 9.50x 10.00x 9.00x 9.50x 10.00x 9.00x 9.50x 10.00x
8.00% 1,057.4 1,116.2 1,174.9 1,422.4 1,481.2 1,539.9 74.3% 75.4% 76.3% 12.6x 13.1x 13.6x
8.25% 1,045.3 1,103.4 1,161.4 1,407.7 1,465.8 1,523.8 74.3% 75.3% 76.2% 12.5x 13.0x 13.5x
8.50% 1,033.3 1,090.7 1,148.1 1,393.1 1,450.6 1,508.0 74.2% 75.2% 76.1% 12.3x 12.8x 13.4x
8.75% 1,021.5 1,078.2 1,135.0 1,378.8 1,435.6 1,492.3 74.1% 75.1% 76.1% 12.2x 12.7x 13.2x
9.00% 1,009.8 1,065.9 1,122.0 1,364.7 1,420.8 1,476.9 74.0% 75.0% 76.0% 12.1x 12.6x 13.1x
8